The St. Paul Companies to exit medical malpractice business

     The St. Paul Companies, Inc. recently announced a series of actions to improve their profitability, including exiting its medical malpractice business. The St. Paul will complete the process of exiting the medical malpractice business on a global basis through non-renewal upon policy expiration.  The traditional property-casualty segment of the unit - property, workers compensation, and commercial auto insurance for healthcare professionals and facilities - will continue to be underwritten by the company's standard commercial underwriting operation.

     The company is forecasting that medical malpractice will generate a 2001 underwriting loss of nearly $940 million, which includes a $600 million reserve.  2001 forecast net written premiums for medical malpractice are approximately $530 million.  The St. Paul expects to take a restructuring charge of approximately $20 million in the fourth quarter of 2001 associated with its actions in Global Healthcare.