UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): February 3, 2003
TRAVELERS PROPERTY CASUALTY CORP.
(Exact Name of Registrant as Specified in its Charter)
Connecticut 001-31266 No. 06-1008174
(State or Other Jurisdiction (Commission File (IRS Employer Identification
of Incorporation) Number) No.)
One Tower Square, Hartford, Connecticut 06183
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (860) 277-0111
Not Applicable
(Former name or former address, if changed since last report.)
ITEM 9. REGULATION FD DISCLOSURE
In connection with the refinancing of a portion of the
indebtedness Travelers incurred in December 2002, Travelers disclosed the
following update to the Legal Proceedings disclosure in its Quarterly Report on
Form 10-Q for the quarter ended September 30, 2002. This information will also
be reflected in Travelers' Annual Report on Form 10-K for the year ended
December 31, 2002, which will be filed in March 2003.
In one of the series of purported class actions and one
multi-party action in various courts against some of the Company's subsidiaries,
dozens of other insurers and the National Council on Compensation Insurance, or
the NCCI, the trial court in Texas granted class certification. In January 2003
the Fifth Circuit Court of Appeals reversed the trial court and decided in favor
of the defendants, including Travelers, by ruling that class certification
should not have been granted.
Travelers entered into a settlement with JPMorgan Chase which fully
resolved the litigation and all liabilities in connection with JPMorgan Chase
Bank v. Liberty Mutual Insurance Company, et al., USDC S.D.N.Y. Under the
settlement, Travelers paid $139 million, before reinsurance, and conveyed
related bankruptcy rights to JPMorgan Chase.
There have been two recent developments related to the direct action
cases against Travelers. In January 2003, in the direct action cases related to
the Wise, Meninger and Cashman cases the Johns Manville bankruptcy court
extended the existing injunction to apply to an additional set of cases filed in
various state courts in Texas as well as to the attorneys who are prosecuting
these cases. The order also enjoins these attorneys and their respective law
firms from commencing any further lawsuits against Travelers based upon these
allegations without the prior approval of the court. Also in January 2003
Travelers was notified that additional direct actions were filed in a fifth
state, Hawaii, alleging that Travelers participated in an effort to
inappropriately induce plaintiffs to accept low settlement amounts in connection
with asbestos-related claims asserted against one of its policyholders. The
theory is similar to that in the Wise case. The plaintiffs seek damages
including punitive damages. The complaints in these actions have not formally
been served on Travelers. Travelers has not yet had an opportunity to fully
evaluate the legal and factual bases for the claims or the defenses that might
be available to Travelers or whether the temporary restraining order applicable
to the other direct actions would apply; however, if the complaints are served,
Travelers intends to defend vigorously and based on its preliminary review
believes that it has meritorious defenses.
In January 2003, in the proceedings relating to ACandS, Inc., ACandS
filed a proposed Plan of Reorganization in its Bankruptcy proceeding. Pursuant
to that Plan, ACandS seeks to establish a trust for the handling and disposition
of asbestos claims. That trust, according to the proposed plan, will be assigned
ACandS' rights to its insurance policies issued by Travelers.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Not applicable.
(b) Not applicable.
(c) Exhibits: None
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Travelers Property Casualty Corp.
Date: February 3, 2003 By: /s/ Paul H. Eddy
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Name: Paul H. Eddy
Title: Deputy General Counsel and
Assistant Secretary
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