Travelers incurs US$793.4 million loss for final 2002 quarter

U.S., Connecticut-based Travelers Property Casualty Corp. has disclosed a net loss of US$793.4 million for the fourth quarter of 2002 compared with net profit of US$303.3 million for the same period the year previous. Travelers’ loss for the full 2002 financial year amounted to US$27 million.The loss for the latest quarterly reporting period is largely the result of the company’s recently announced US$1.3 billion after tax special reserve allocation for asbestos-related exposures. Travelers has increased its asbestos reserves by US$2.45 billion to a total of US$3.4 billion. The significant adjustment made by Travelers to its asbestos reserves follows from the release of a study conducted by the company. The reserve adjustment covers what the company estimates to be its ultimate cost relating to asbestos liabilities.