SAINT PAUL, Minn., August 1 – The St. Paul Travelers Companies, Inc. will pay $77 million as a result of their settlement with the attorneys general of three states in order to resolve issues related to charges of bid rigging, contract steering, and non-traditional insurance products, according to the company.

St. Paul Travelers did not admit to any violation of federal or state law as part of the settlement, though they will pay $37 million into a fund for certain excess casualty policyholders and pay $40 million in fines to New York State, Connecticut, and Illinois. Of the fines, $24 million will go to New York, according to the New York State Office of the Attorney General.

Among other reforms, the company will enhance its disclosures regarding producer compensation practices, strengthen the ongoing training and education of employees, and stop paying contingent commissions on excess casualty coverage in the United States through 2008.

The cost of the settlement has already been funded by the companys $42 million legal provision that was recorded in the second quarter of 2006, along with additional amounts that had previously been recorded, the company said.

Commenting on the settlement, New York Attorney General Eliot Spitzer said, St. Paul Travelers has joined the growing number of insurers, brokers and agents who have pledged to make the market for insurance coverage more transparent and competitive. This development will benefit all consumers, from individuals buying car insurance to small businesses to large corporations.

Connecticut Attorney General Richard Blumenthal pointed to a pattern of industry deception, stating, This victory is another blow to a business culture of concealed kickbacks, bid rigging, and business steering. These companies charged higher premiums to subsidize their pay-to-play schemes. Now that money will go back to policyholders and taxpayers, directly and promptly.

Blumenthal did offer praise to St. Paul Travelers for its cooperation. He said, I commend St. Paul Travelers for taking the high road by cooperating in my investigation. St. Paul Travelers is a vital and responsible corporate citizen in Hartford, and it no doubt will continue to be so.