86312--2/27/2006--ST_PAUL_TRAVELERS_COMPANIES

related topics

{financial, litigation, operation}

{loss, insurance, financial}

{capital, credit, financial}

{product, liability, claim}

{cost, regulation, environmental}

{customer, product, revenue}

{regulation, government, change}

{debt, indebtedness, cash}

{product, market, service}

{loan, real, estate}

{cost, operation, labor}

{system, service, information}

Catastrophe losses could materially reduce our profitability and adversely impact our ratings, our ability to raise capital and the availability and cost of reinsurance. Our business could be harmed because of our potential exposure to asbestos and environmental claims and related litigation . Reinsurance may not protect us against losses We are exposed to, and may face adverse developments involving, mass tort claims such as those relating to exposure to potentially harmful products or substances. If actual claims exceed our loss reserves, or if changes in the estimated level of loss reserves are necessary, our financial results could be significantly and adversely affected. The effects of emerging claim and coverage issues on our business are uncertain. The insurance industry is the subject of a number of investigations by state and federal authorities in the United States. We cannot predict the outcome of these investigations or the impact on our business or financial results. Our businesses are heavily regulated and changes in regulation may reduce our profitability and limit our growth. Assessments and other surcharges for guaranty funds, second-injury funds, catastrophe funds and other mandatory pooling arrangements may reduce our profitability. A downgrade in our claims-paying and financial strength ratings could significantly reduce our business volumes, adversely impact our ability to access the capital markets and increase our borrowing costs. Our investment portfolio may suffer reduced returns or losses which could reduce our profitability. The intense competition that we face could harm our ability to maintain or increase our profitability and premium volume. The inability of our insurance subsidiaries to pay dividends to us in sufficient amounts would harm our ability to meet our obligations and to pay future dividends. Loss or significant restriction of the use of credit scoring in the pricing and underwriting of personal lines products could reduce our future profitability Disruptions to our relationships with our distributors, independent agents and brokers could adversely affect us If we experience difficulties with outsourcing relationships, our ability to conduct our business might be negatively impacted.

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86312--2/27/2006--ST_PAUL_TRAVELERS_COMPANIES_INC