Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ST. PAUL, MN-The St. Paul Cos. says it will not invoke the “war exclusion” clause of its property insurance policies as part of its revelations about the extent of losses it would suffer from the attack. “Our task now, as a part of the insurance industry, is to help our clients recover from this horrific event,” says chairman Douglas W. Leatherdale.

“The St. Paul stands ready — as we have for nearly 150 years,” Leatherdale says. “We are not going to hide behind the war exclusion for these acts of terrorism.”

The major commercial property-casualty insurer based in St. Paul also says the terrorist attacks of Sept. 11 would likely result in estimated net pretax losses of about $700 million to the company from its US primary insurance, reinsurance and Lloyd’s ofLondon operations. The company’s estimate is based on a total insured loss of between $30 billion and $35 billion for the industry. However, insurance officials say, it will take more time before the total industry loss is clear.

The St. Paul’s net loss comprises all losses from all lines of insurance, and takes into account the company’s various reinsurance arrangements, its catastrophe reinsurance program, the corporate reinsurance program and a provision for potentially unrecoverable reinsurance.

Leatherdale called his firm’s balance sheet “one of the strongest in the industry,” and says it has “sufficient liquidity to meet our obligations.”

The St. Paul has a catastrophe claim team in New York City working with policyholders. Two mobile claim offices will be in place in Manhattan as soon as civil authorities permit them to assist in claims handling.

“We are already paying claims,” Leatherdale says.

The St. Paul, which provides commercial property-liability insurance and non-life reinsurance worldwide, reported 2000 revenue from continuing operations of $8 billion, total assets of $35.5 billion, and is ranked No. 222 on the Fortune 500 list.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.