The St Paul has announced that it is to overhaul its business for 2002, by making redundancies, exiting medical malpractice and reducing its reinsurance products.
The group's reinsurance division, St Paul Re, will no longer underwrite aviation reinsurance, bond and credit reinsurance or offer financial risk and capital markets reinsurance products. It will also substantially reduce the US business it writes in London.
The St Paul at Lloyd's will exit most of its casualty insurance and reinsurance business, US surplus lines and certain non-marine reinsurance lines.
Including the $600m (£415m) reserve increase, the company is forecasting that medical malpractice will generate a 2001 underwriting loss of $940m (£651m).
The reinsurance segment is expected to make an underwriting loss of $230m (£159m), excluding losses relating to the 11 September attacks.
