Stop loss gives St Paul catastrophe protection

NEW YORK - Minnesota-based The St Paul Cos said the purchase earlier this year of an aggregate stop loss reinsurance policy helped soften the impact of increased catastrophe losses on its third quarter 1999 results. Pre-tax catastrophe losses from continuing operations amounted to $126m for the quarter, against $113m in the same period of 1998. Losses from Hurricane Floyd were $62m, while the earthquakes in Turkey and Taiwan cost the company $40m. St Paul's net income for the third quarter of 1999 amounted to $326.8m, compared with net income of $67.7m in the same period of 1998. Third quarter 1999 net income included a $185.7m after-tax gain on the sale of the company's personal insurance operation to MetLife Auto & Home. Operating earnings from continuing operations were $155.8m, against $82.5m last year.