"The St. Paul stands ready -- as we have for nearly 150 years," Leatherdale says. "We are not going to hide behind the war exclusion for these acts of terrorism."

The major commercial property-casualty insurer based in St. Paul also says the terrorist attacks of Sept. 11 would likely result in estimated net pretax losses of about $700 million to the company from its US primary insurance, reinsurance and Lloyd's ofLondon operations. The company's estimate is based on a total insured loss of between $30 billion and $35 billion for the industry. However, insurance officials say, it will take more time before the total industry loss is clear.

The St. Paul's net loss comprises all losses from all lines of insurance, and takes into account the company's various reinsurance arrangements, its catastrophe reinsurance program, the corporate reinsurance program and a provision for potentially unrecoverable reinsurance.