The deal to merge the St. Paul Cos. and Travelers Property Casualty Corp. is on track to create the second-largest insurer in the country, with top market shares in 22 states, according to Jay Benet, chief financial officer of Hartford, Conn.-based Travelers.Benet, who is the designated CFO for the projected St. Paul Travelers Cos., discussed some terms of the deal in December at the Bank One Capital Markets Insurance Company Investors Conference. The deal, announced on Nov. 17, will be a tax-free transaction, with an exchange of 0.4334 St. Paul share for each Travelers share.

The post-merger company's board will have 12 Travelers directors and 11 St. Paul directors, including all the outside directors of both companies, plus Jay Fishman as president and chief executive officer and Robert Lipp as chairman. Fishman, who is St. Paul's CEO, is to succeed Lipp, Travelers' CEO, as the combined company's chairman on Jan. 1, 2006.

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