Travelers says IPO may top $4 billion

Travelers Property/Casualty Corp. could raise up to $4.39 billion in an initial public offering planned for later this month. Hartford, Conn.-based Travelers, which is being spun off by Citigroup Inc., said in a Securities and Exchange Commission filing Monday that it plans to sell up to 231 million shares, including a possible overallotment of 21 million shares, for $16 to $19 per share. Net proceeds will be used to pay debts to Citigroup.

Washington delays enforcement of ergo rule

Washington Gov. Gary Locke last week ordered that enforcement of the state's ergonomics rule be delayed until July 2004, to allow businesses more time to understand the regulation. Washington's Department of Labor and Industries in May 2000 promulgated the ergonomics rule, in an attempt to reduce the state's 50,000 annual musculoskeletal claims. But Gov. Locke subsequently asked that the department establish a panel to assess the state's readiness for the rule's implementation.

SAFECO buying Swiss Re medical stop-loss book

SAFECO Corp. will nearly double its excess-of-loss medical coverage business for self-insured employers with the acquisition of a Swiss Reinsurance Co. book of business. Seattle-based SAFECO announced last week that it is acquiring $240 million in medical stop-loss premiums and $10 million in annual group life premiums from Swiss Re for an undisclosed amount. In 2001, SAFECO wrote $280 million in excess-of-loss coverage for employers with self-funded plans.

Near North hires interim CFO

Near North National Group has hired Cynthia Todd Jamison as interim chief financial officer. Ms. Jamison, a partner at Tatum CFO Partners L.L.P., an Atlanta-based temporary CFO services firm, replaces Tom McNichols, who left the Chicago-based brokerage in late January. In a statement, Near North Chairman Fred Foreman said that the company anticipates "that the collaborative efforts of Cynthia, KPMG, our new external auditor, and our internal accounting staff will yield stronger, more effective accounting procedures equipped to manage the growth of our company."

Oklahoma seeking control of comp insurer

Oklahoma Insurance Commissioner Carroll Fisher recently asked a state court judge to place Petrosurance Casualty Co. into receivership. The Oklahoma-domiciled workers compensation insurer, which is based in Arlington, Texas, "is impaired or insolvent" based on reviews conducted by Oklahoma insurance regulators, Mr. Fisher said in a statement. The company has "substantially less" than the minimum $5 million in capital and surplus required by state law, a department hearing officer reported.

Andersen settles E&O suit over audit

Arthur Andersen L.L.P. has settled a malpractice suit related to its audit of Baptist Foundation of Arizona for $217 million. Andersen did not admit liability in the case, which was due to go to trial last week in state court in Phoenix. The case centered on Baptist Foundation of Arizona, which marketed investments and retirement accounts. The foundation filed for bankruptcy in 1999, with liabilities of $650 million and assets of $290 million. Andersen and its captive, Professional Services Insurance Co. Ltd. in Bermuda, will fund the settlement.

Steel retiree benefits bailout bid spurned

President Bush last week rejected steel industry calls for some type of government relief on so-called legacy costs, which are the billions of dollars in unfunded health care and pension benefits that unionized steel companies have promised to their current and future retirees. The lack of immediate government relief not only continues a huge financial drain on the companies but also eventually could mean the end of health care benefits for the retirees of companies that fail in the future.

Briefly noted

Susan Rivera has been named president of ACE INA Holdings Inc. She replaces Dennis Reding, who left this year to join a unit of Aon Corp. Ms. Rivera previously was president of American Home Assurance Co., a unit of American International Group Inc. ACE INA is the holding company for the former CIGNA Corp. property/casualty units that ACE Ltd. acquired in 1999....Mahmoud Abdallah has resigned as president of American Re Corp.'s international operations, in the second high-level departure at the reinsurer in 2002. Earlier this year, American Re said that Edward J. Noonan, its president and chief executive officer, had resigned, effective March 31. Mr. Noonan will be replaced by John P. Phelan, president of Munich Reinsurance Co. of Canada, which, like American Re, is part of the Munich Re Group....Idaho Gov. Dirk Kempthorne on Monday signed H.B. 492, which brings Idaho law in line with a 2001 federal law that lets employees 50 and older make tax-free catch-up contributions to 401(k) plans....California's Democratic voters decided in a primary election Tuesday that John Garamendi will represent them in the November election for insurance commissioner. Mr. Garamendi was insurance commissioner from 1991 to 1995. Gary Mendoza, a businessman, will represent the Republican Party in the fall election....Two months after expanding its outsourcing capabilities by acquiring the Unifi Network, Mellon Financial Corp. has renamed Mellon Employee Benefit Solutions as Mellon HR Solutions. Mellon HR Solutions said the change reflects its new emphasis on total outsourcing of human resources functions....New Mexico Gov. Gary E. Johnson on Monday signed an insurance regulatory modernization law that gives the state insurance superintendent the authority to exempt commercial lines forms from the approval process. The American Insurance Assn. has said the law would let insurers introduce innovative products more quickly.