8-KRegulation FD

TRAVELERS COMPANIES, INC. 8-K Report, Regulation FD Disclosure (Dec 22, 2006)

Filed December 22, 2006For Securities:TRV

Summary

The St. Paul Travelers Companies, Inc. filed an 8-K on December 21, 2006, to report on a development in the Pittsburgh Corning Corporation bankruptcy proceeding. Specifically, the United States Bankruptcy Court for the Western District of Pennsylvania declined to confirm the proposed Plan of Reorganization. This plan was a crucial component of a broader May 2002 settlement agreement among St. Paul Travelers, other insurers, and PPG Industries, Inc. to resolve asbestos-related coverage litigation stemming from policies issued to PPG. The bankruptcy court's decision means that Pittsburgh Corning, PPG, and Corning will not immediately receive the protections under Section 524(g) of the Bankruptcy Code for certain asbestos-related bodily injury claims as envisioned by the plan. St. Paul Travelers stated that PPG is evaluating its options, which may include modifying the plan or pursuing appeals. Importantly, the company indicated that this development is not expected to impact its asbestos reserves or its fourth-quarter 2006 financial results.

Key Highlights

  • 1The US Bankruptcy Court for the Western District of Pennsylvania refused to confirm Pittsburgh Corning Corporation's Plan of Reorganization.
  • 2Confirmation of the plan was a condition for a May 2002 settlement agreement concerning asbestos-related coverage litigation for PPG Industries, Inc.
  • 3The settlement involved St. Paul Travelers and approximately three dozen other insurers.
  • 4The plan aimed to provide protections under Section 524(g) of the Bankruptcy Code to Pittsburgh Corning, PPG, and Corning for certain asbestos claims.
  • 5PPG Industries is reviewing the court's decision and considering its next steps, which could include plan modifications or appeals.
  • 6St. Paul Travelers does not anticipate any impact on its asbestos reserves as a result of this decision.
  • 7The company expects no effect on its financial results for the fourth quarter of 2006.

Frequently Asked Questions

The main event is the United States Bankruptcy Court's decision not to confirm the Plan of Reorganization for Pittsburgh Corning Corporation. This plan was a key part of a settlement agreement related to asbestos litigation involving PPG Industries.

No, St. Paul Travelers stated that it does not expect this decision to have any impact on the amount of its asbestos reserves or its results of operations for the fourth quarter of 2006.

The May 2002 agreement was designed to settle asbestos-related coverage litigation under insurance policies issued by St. Paul Travelers and other insurers to PPG Industries, Inc. The proposed Plan of Reorganization was a condition to this settlement.

PPG Industries is currently studying the bankruptcy court's decision to determine its next steps. These could include modifying the plan, seeking reconsideration from the bankruptcy court, or filing appeals.