Standard & Poor's Ratings Services upgraded St. Paul Travelers Companies' ratings, as the company announced plans to market the Travelers brand in an upcoming advertising campaign.
The New York-based rating firm raised the St. Paul, Minn.-based operating company members' financial strength and counterparty credit ratings from "A-plus" to "double-A-minus." It also raised St. Paul Travelers' counterparty credit rating from "triple-B-plus" to "A-minus."
S&P in making the move noted the insurer's stability and strong marketing position, and said the outlook on all the companies is stable.
John Iten, an S&P credit analyst, said the action was based "on the group's very strong market position, substantially improved operating performance, very strong operating company capitalization, and conservative financial leverage and coverage ratios."
S&P added that reserving and integration issues arising from the merger of St. Paul's and Travelers have been successfully addressed. However, there remains the possibility of adverse development related to the pre-merger liabilities of the St. Paul Fire & Marine Group and the company's large exposure to asbestos claims.
With the carrier now turning its attention to growth, S&P said it feels St. Paul Travelers is on track to produce income in excess of $3 billion and a combined ratio of less than 95 percent.
Earlier this week, St. Paul Travelers said it is planning to begin marketing commercial, specialty and personal products in the United States and Canada under the brand name Travelers.
The company said the parent company's name will still remain St. Paul Travelers Companies Inc. The branding campaign will not affect existing policies or coverage written by any of the company's operations.
The carrier added that the move has no effect on any other brands it uses for unique services or market segments such as Northland, Discover Re, Mendota, Premier or Constitution State Services.
The company said it has launched a new advertising campaign for both television and print aimed at getting consumers to consider their risk exposures.
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