US insurer The St Paul Companies has announced that its second-quarter earnings will be hit by its exposure to bonds issued by a bankrupt policyholder.
The commercial insurer revealed its second-quarter figures would be reduced by $56m (£34m) as a result of the bond's failure, which was issued on behalf of an unnamed health benefits firm.
Chairman and chief executive Jay Fishman said: "Our business remains solidly on track, and we have not changed our profitability objective for 2003."
The St Paul's first-quarter 2003 net income was $181m (£111m), up 36.1% from first-quarter 2002 net income of $133m (£82m).
