company, Texaco/CIGNA Services Co. Inc.

The company will handle Texaco's third-party liability and property claims in the United States and be based in Louisiana.

Mr. Robert C. Golden, general manager of Texaco's risk management department and president and CEO of Bermuda-based Heddington Insurance Ltd., Texaco's captive, and Mr. Dennis Kane, president of CIGNA's special risk facilities in a joint statement said: "It is in our mutual interest to engineer the most effective claims handling process. This company centralises the claims management process and assigns dedicated claims management personnel to the Texaco account.'' The new company will serve to control Texaco's nationwide claims, contain costs related to claims and consolidate administrative functions, according to a release from Heddington.

"This affiliation ensures mutual benefits for both Texaco and CIGNA.

This new company affords Texaco even greater flexibility in the area of claims management,'' added Mr. Golden.

The new company encompasses the functions performed by Texaco's Claims Management Centre, based in Metairie, Louisiana, which was formed in 1933 to manage Texaco's third-party liability and property claims in the US.

The Texaco/CIGNA relationship started in 1979 and since 1987, Texaco has utilised CIGNA's ESIS Inc. services to administer its third-party liability claims in the US. CIGNA provides Texaco with risk information, claims investigation, claims management, catastrophe response and payment services.