WASHINGTON (Dow Jones) - Breaking with its own corporate policy, St. Paul Travelers Cos . on Sunday denied reports that it's been in discussions on the possibility of a merger with Zurich Financial Services Group.

The St. Paul, Minn .-based property-casualty insurer (STA) doesn't ordinarily comment on or respond to rumors or speculation, but in this case St. Paul Travelers said it issued the denial because of the "factual and definitive manner" in which the purported Zurich Financial (ZFSVY) talks were reported to be taking place.

The Wall Street Journal, cited unnamed sources, reported in its online edition Friday that talks were in a preliminary stage. (END) Dow Jones Newswires 03-20-06 0519ET Copyright (c) 2006 Dow Jones & Company, Inc.