Best Assigns FSR to Travelers Auto of New Jersey

September 22, 2005

A.M. Best Co. has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating (ICR) of “a” to Travelers Auto Insurance Co. of New Jersey (TAIC-NJ), which is a wholly owned reinsured subsidiary of First Trenton Indemnity Company (First Trenton Indemnity).

TAIC-NJ and First Trenton Indemnity are members of First Trenton Group, and both First Trenton Indemnity and First Trenton Group have a FSR of A (Excellent) and ICRs of “a”. All companies listed above are domiciled in Marlton, NJ. All ratings have a stable rating outlook.

Prior to this rating action, TAIC-NJ (formerly Red Oak Insurance Company) was inactive and assigned an A.M. Best rating of NR-3 (Rating Procedure Inapplicable). Commensurate with this rating, TAIC-NJ was to have entered into a 100% quota share reinsurance agreement with First Trenton Indemnity, effective Sept. 18, 2005, whereby TAIC-NJ cedes 100% of its business to First Trenton Indemnity. This agreement supplements an existing reinsurance and administration agreement between the two companies, which has been effective since March 31, 2001.

Because it is a reinsured subsidiary of First Trenton Indemnity, TAIC-NJ’s rating also reflects First Trenton Indemnity’s excellent historical underwriting and operating results, solid overall capitalization and TAIC-NJ’s role within the First Trenton Group, which replaces First Trenton Indemnity as the insurer of all new private passenger auto business written in New Jersey.

First Trenton Indemnity will no longer write any new auto business but will continue to renew its existing portfolio of New Jersey auto business, as well as write all new and renewal property business.

Both companies are part of The St. Paul Travelers Companies.

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