STA ST Paul Travelers

A new policy designed to give added protection to investment advisers, mutual funds and hedge funds for risks associated with providing asset management products and services to investors was introduced today by St. Paul Guarantee Insurance Company ("Travelers") at "Changing Channel: The Future of Mutual Fund Dealers" symposium in Collingwood, Ontario. Travelers SelectOne(SM) for Investment Advisers and Funds helps investment advisers, mutual funds and hedge funds deal with exposures they might incur through business interactions with investors, employees, shareholders, governmental agencies and pension plan participants. Specifically, the policy provides coverage for the following incidents: -- Failure to adhere to investment guidelines and restrictions; -- Misrepresentations and failure to adequately disclose risks; -- Mismanagement of investments by an adviser on behalf of a pension fund; -- Breach of fiduciary duties to clients or pension plan participants; and -- Unintentional errors committed in the course of performing regular investment adviser duties. "Investment advisers, mutual funds and hedge funds have come under increased regulatory scrutiny over the last few years and as a result, these groups are recognizing that they require coverage to address the wide variety of risks they face," said Phil Baker, vice president, Financial & Professional Services. "Our policy is flexible so customers can choose the coverages they need and combine them all under one policy with separate liability limits for each coverage." Travelers SelectOne(SM) for Investment Advisers and Funds includes an option to select products such as Investment Advisers Professional Liability, Mutual Fund Liability, Employment Practices Liability, and Fiduciary Liability. Separate coverage can be purchased for fidelity and crime exposures under a financial institution bond or a fiduciary dishonesty bond. Coverage is also available for kidnap and ransom risks. Travelers has been underwriting mutual fund investment advisers and funds in the United States since 1988. For more information regarding this product and other products offered by Travelers in Canada, visit www.travelerscanada.com. About Travelers Travelers is a business of The St. Paul Travelers Companies, Inc. (NYSE:STA), a leading property casualty insurer selling primarily through independent agents and brokers. The company's diverse business lines offer its global customers a wide range of coverage in both the personal and commercial settings, including automobile, homeowners, construction, small business, oil and gas, ocean marine, financial and professional services, global technology and public sector services. St. Paul Travelers is ranked 85 in the Fortune 500, with 2005 revenues of $24.4 billion and total assets of $113.2 billion. The company has approximately 32,000 employees.