Susan Cogswell, commissioner for the Connecticut Insurance Department, said, "One of the criteria we have when we look at the change of control is public interest, and public interest would include things like staffing levels and continued charitable giving in Hartford."

She told National Underwriter that the two companies assured her that their general-commercial lines, surety and personal lines will remain in Hartford and that the area's staffing level, currently at around 5,900, will remain stable after the anticipated two-year transition period.

"We all realize that these are two very financially strong companies, and we know the management very well from both companies," Commissioner Cogswell said. But she added that she was looking particularly at the public commitment from Travelers and The St. Paul, "because Travelers is a very significant entity and employer in the state of Connecticut, particularly in Hartford."

She said the two companies gave her assurances regarding the stable employment level in the Hartford region after the merger.

"They had sent me a commitment letter addressing those topics, and they confirmed them during the hearing process last month. Travelers Chairman and Chief Executive Robert Lipp had even commented that this would be an opportunity for growth in Hartford," Commissioner Cogswell said.

The two companies also assured her that the number of independent agents they contract in the region will not be altered after the merger.

Travelers' spokesperson Marlene Ibsen also told National Underwriter that the two companies have an expectation that, ultimately, the staffing level will stay the same after the 24-month integration period. "Now, that doesn't necessarily translate into a commitment for no layoffs. It means there could be some layoffs, offset by new hiring and new positions being created in Hartford."

The two companies also assured that after the merger, the annual aggregate charitable giving to the Hartford region by the combined entity will be $3.5 million in 2004, compared to $2.7 million Travelers gave in 2003. The two companies said they will maintain the increased charity level through at least 2005 and 2006. Furthermore, the Hartford municipal government is also expected to continue to receive about $32 million in tax revenues after the merger.

Commissioner Cogswell's decision this week was announced two weeks after the Minnesota insurance regulators granted their own approval to The St. Paul, which is headquartered in St. Paul, Minn. (The only part of the merger where the Minnesota regulators have jurisdiction is the change-in-control in four small Travelers units domiciled in Minnesota. These units will now be merged into The St. Paul.)

The merger deal must still be approved by several other states where the two companies' businesses are domiciled. Federal regulators gave their approval for the deal last December.