What’s new: In brief (January 31, 2005)

St. Paul Travelers has added US$868 million to its prior year loss reserves. The newly combined companies completed an internal review which resulted in a reserve charge of US$922 million for adverse development on prior year asbestos losses, and US$84 million for environmental. However, this was offset by US$140 million in favorable prior year development on personal lines. The announcement prompted rating agency A.M. Best to place the ratings of Travelers P/C Pool and The St. Paul Travelers Cos. Inc. on review with developing implications. It did affirm the “A” rating of St. Paul Cos.

An industry benefit to raise funds for victims of the Indian Ocean tsunami has raised $6,000 says organizer Bill Blakeney of Blakeney, Henneberry Murphy. Friday night’s “Toronto Cares” event featured Andrew Houghton, Showroom and insurance industry band “The Accidental Benefits”, with all proceeds going to humanitarian agency World Vision. Special thanks to the management and staff of the Ontario Bar Association Conference Center for their sponsorship.

The U.S. Coalition Against Insurance Fraud has inducted some dishonorable characters into its “2004 Hall of Shame”. This year’s line-up includes a Memphis minister who burned down his own Baptist church to collect almost US$800,000 in insurance money. Also making the list is a 73-year-old grandmother who scammed insurers for more than US$500,000 for fake slip-and-fall accidents over a 15-year period. And another case involves a millionaire who tried to claim damages to her Manhattan apartment after the 9/11 terrorist attacks, but who really just wanted someone to pay for her planned renovations.