Standard&Poor's affirmed its ratings on St Paul Cos. Inc. and its insurance subsidiaries on April 25, 2002. The outlook is negative. These affirmations follow St. Paul's announcement of first-quarter 2002 pretax operating earnings of $233.8 million and net income of $139.3 million. The company also announced plans to transfer its reinsurance operations to a newly formed Bermuda-based reinsurer--Platinum Underwriting Holdings Ltd.--in exchange for a 24.9% stake in the new company. The repositioning of the St. Paul's reinsurance operation is in line with earlier announcements by the company. The initial public offering is expected to result in capital of about $1 billion. St. Paul expects to realize a capital gain, the amount of which will depend on the results
