A recent example of Reg FD's impact on St. Paul was the company's issuance of a press release acknowledging its losses as a result of the sinking of the Petrobras oil rig P-36 off the Brazilian coast. In this incident, we were linked publicly and it would have been reasonable for analysts to believe we would have a significant loss exposure. While insurers say Reg FD is having minimal impact, many analysts are finding that they are receiving less information from companies than before the regulation took effect nearly a year ago. Analysts say Reg FD also has affected their daily communications with companies. Barrett says he is unaware of any company that is just plowing ahead the way they used to a year ago.
Some insurers agree that communication has become less open.
Getting the Word Out Press releases continue to top the list of ways companies are spreading material information. However, the Internet and Web casts are quickly becoming common methods to disseminate Reg FD information. The use of Internet broadcasts to announce earnings information has grown significantly. The Internet has helped create an explosion in the availability of information. Although foreign issuers are not subject to Reg FD, certain issuers with a significant U.S. presence, such as Axa, are influenced by its practices.