Travelers to Sell Unionamerica to Enstar Sub

The Travelers Companies Inc. announced that its wholly-owned subsidiary St. Paul Fire and Marine Insurance Company has entered into a definitive agreement for the sale of Unionamerica Holdings Limited to Royston Run-Off Limited, a subsidiary of Enstar Group Limited.

Unionamerica Holdings includes Travelers’ UK-based London Company Market run-off direct insurance and reinsurance businesses, including North American casualty, asbestos and environmental reserves, UK and EU motor reserves and other casualty reserves. These businesses have gross liabilities as of June 30, 2008, of approximately $1 billion. Travelers expects to record an immaterial gain in connection with the transaction in the fourth quarter of 2008.

Completion of the transaction is subject to various closing conditions, including approval by the UK’s Financial Services Authority. The transaction is expected to close in the fourth quarter of 2008.