Financial Review
Strengthened asbestos reserves to $3.4 billion
- Full utilization of Citigroup Indemnification Agreement
- Expect annual operating income of approximately $118 million in 2002 after charge
- Currently projecting annual operating income of $1.7 to $1.8 billion in 2003
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No need for equity financing
- Paid $1 billion obligation to Citigroup
- Contributed $900 million to operating subsidiaries
- Borrowed $750 million
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Capital returns to pre-charge levels within 1 year
- GAAP equity and statutory surplus restored mid 2003
- Pay down of $750 million of new debt
- $250 million in March 2003 from proceeds of Citigroup Indemnification Agreement
- Remainder substantially repaid by year end 2003
(1) Current projections based on various assumptions, including normal catastrophe losses, no net realized investment gains or losses and no asbestos incurral