Business News: State Auto, Aon, Travelers

The State Auto Insurance Group (State Auto) announced it is undertaking a review of strategic alternatives for its Excess and Surplus (E&S) Lines business, including a possible sale transaction. State Auto has retained Keefe, Bruyette & Woods to advise in connection with the evaluation.

The review includes affiliate Rockhill Insurance Company, which State Auto acquired in 2009 to enter the Excess & Surplus Lines insurance market.

No assurance can be given as to whether, when or on what terms any possible transaction might occur. The company does not intend to make any further statements regarding this process unless and until a definitive agreement has been reached, or until the process of exploring strategic alternatives has ended.

Following the massive flooding in parts of Texas and the Gulf Region, Aon launchedAon Flood Secure, an insurance product that will provide replacement coverage to U.S. organizations that have impaired or exhausted aggregated flood limits on their property policies.

To meet the urgent need of organizations directly affected by extensive flooding from Hurricane Harvey and help mitigate the risk of organizations being uninsured for future floods, Aon Risk Solutions, the global risk management business of Aon plc, is creating a flood limit reinstatement product for its clients.

Aon Flood Secure will provide pro-rata pricing for reinstated limits and terms of less than 12 months for subsequent or future events. It is designed to replace eroded or exhausted flood aggregate coverage and will match existing carrier agreements to provide reinstatement of impaired flood coverage.

Flood Secure is not intended as a replacement for National Flood Insurance Program coverage.

The Travelers Companies, Inc. announced a new coverage offering additional support to directors and officers who are asked to appear at meetings or produce documents as part of an internal corporate investigation. The new Enhanced Interview Request Coverage from Travelers can reimburse costs incurred when companies conduct their own investigations, before any government involvement.

The Enhanced Interview Request Coverage addresses evolving exposures created by regulations that require corporations to help investigate and identify individuals responsible for misconduct. The coverage, which can be triggered when a company self-reports potential corporate wrongdoing, brings a layer of protection to public businesses and individuals at an earlier time in the investigation process.