The St. Paul Companies revealed that its aggregate limits of insurance exposure, net of reinsurance, outstanding on an after-tax basis related to the Enron Corporation is approximately $85 million. The company expects losses related to its exposure will be significantly less than its aggregate limits.
The St. Paul, headquartered in St. Paul, Minn., also reported that it holds approximately $23 million par value of Enron Corporate Senior Unsecured Debt.
The company’s estimates result from an across-the-board review of potential exposures from Enron’s bankruptcy to The St. Paul’s operations, including U.S. primary insurance, reinsurance and Lloyd’s of London operations.
The St. Paul said its principal insurance exposures, net after tax, are:
–$64 million in face value from surety bonds, including gas supply bonds, financial guarantees and standard construction bonds. This amount reflects potential maximum losses related to Enron Corporation and subsidiaries, including Enron entities not currently in bankruptcy. In addition, the company’s review of these surety bonds has led it to believe that actual losses will be substantially less than the face value. To date, The St. Paul, the largest underwriter of surety bonds in the United States, has received no claims against any Enron surety bond.
–$19 million in treaty reinsurance and directors’ and officers’ liability insurance.
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