THE TRAVELERS COMPANIES, INC. is an American insurance company. It is
the second largest writer of U.S. commercial property casualty
insurance and the third largest writer of U.S. personal insurance
through independent agents. Travelers is incorporated in Minnesota,
with headquarters in
New York City
New York City and its largest office in Hartford,
Connecticut . Travelers also maintains a large office in St. Paul,
Minnesota . It has been a component of the Dow Jones Industrial
Average since June 8, 2009.
The company has field offices in every U.S. state, plus operations in
the United Kingdom, Ireland,
Singapore , China, Canada, and Brazil. In
2014, the company reported revenues of US $ 27 billion and total
assets of US $103 billion.
Travelers, through its subsidiaries and approximately 14,000
independent agents and brokers, provides commercial and personal
property and casualty insurance products and services to businesses,
government units, associations, and individuals. The company offers
insurance through three segments:
* Personal Insurance, which includes home, auto and other insurance
products for individuals
* Business Insurance, which includes a broad array of property and
casualty insurance and insurance-related services in the United States
* Bond and Specialty Insurance, which includes surety, crime, and
financial liability businesses which primarily use credit-based
underwriting processes, as well as property and casualty products that
are predominantly marketed on an international basis.
* 1 History
* 2 Alleged anticompetitive practices
National Football League lawsuit
* 4 Advertising
* 5 Notable former employees
* 6 Notes
* 7 External links
Top: The familiar umbrella logo of the Travelers, used until its
spinoff from Citigroup. Bottom: The logo that The St. Paul used prior
to the merger with Travelers.
The main predecessor companies of The Travelers Companies, Inc. are
The St. Paul Companies, Inc. and Travelers Property Casualty
SAINT PAUL FIRE AND MARINE INSURANCE CO. was founded March 5, 1853,
in St. Paul, Minnesota, serving local customers who were having a
difficult time getting claim payments in a timely manner from
insurance companies on the east coast of the United States. It barely
Panic of 1857
Panic of 1857 by dramatically paring down its operations
and later reorganizing itself into a stock company (as opposed to a
mutual company ). It soon spread its operations across the country. In
1998 it acquired
USF&G , known formerly as
United States Fidelity and
Guaranty Company, an insurance company based in
Baltimore, Maryland ,
for $3.9 billion in stock and assumed debt. By buying USF"> The
Travelers logo, ca. 1993
In the 1990s, it went through a series of mergers and acquisitions.
It was bought by
Primerica in 1993, but the resulting company
retained the Travelers name. In 1995 it became THE TRAVELERS GROUP.
Aetna 's property and casualty business in 1996.
In 1998, the Travelers Group merged with Citicorp to form
However, the synergies between the banking and insurance arms of the
company did not work as well as planned, so
Citigroup spun off
Travelers Property and Casualty into a subsidiary company in 2002,
although it kept the red umbrella logo . Three years later, Citigroup
sold Travelers Life & Annuity to
MetLife . In 2003, Travelers bought
renewal rights for Royal & SunAlliance Personal
In 2004, the St. Paul and Travelers Companies merged and renamed
itself ST. PAUL TRAVELERS, with the headquarters set in St. Paul,
Minnesota. In August of that year, it was charged of misleading
statements associated with the merger. Despite many assurances from
CEO Jay Fishman that the newly formed company would retain the St.
Paul name, the corporate name only lasted until 2007, when the company
repurchased the rights to the famous red umbrella logo from Citigroup
and readopted it as its main corporate symbol, while also changing the
corporate name to THE TRAVELERS COMPANIES.
Many of Travelers' ancestor companies, such as St. Paul and
are technically still around today, and still write policies and
accept claims in their own names (under the overarching Travelers
brand name). As is typical of most insurers in the
United States ,
Travelers never dissolved the various companies it acquired, but
simply made them wholly owned subsidiaries and trained its employees
to act on behalf of those subsidiaries. This is a common risk
management strategy used by U.S. insurance groups. If any one company
in the group gets hit with too many claims, the situation can be
easily contained to that one company (which is placed in runoff and
allowed to run its policies to completion), while the remainder of the
group continues to operate normally.
In November 2010, Travelers entered into a joint venture agreement
under which the company would invest in J. Malucelli Participações
em Seguros e Resseguros S.A., the market leader in the surety
insurance business in Brazil. The transaction closed in June 2011 with
Travelers acquiring a 43.4 percent interest. Travelers' investment in
newly issued shares significantly increased J. Malucelli's capital
level, positioning it for substantial growth in Brazil. At the time,
Travelers had the option to increase its investment to retain a 49.5
percent interest, which the company later did in 2012.
In June 2013, Travelers announced the acquisition of Dominion of
Insurance Company from E-L Financial Corporation
Limited (TSX: ELF). The transaction later closed in November 2013.
The combined organization, referred to as Travelers Canada, remains
The company’s joint venture with J. Malucelli in Brazil completed
the acquisition of a majority interest in Cardinal Compañía de
Seguros, a Colombian start-up surety provider in September 2015. The
business, which is based in
Bogotá , operates under the co-branded
name J. Malucelli Travelers.
In October 2015, Travelers acquired a majority interest in the
property casualty business of its J. Malucelli joint venture in
Brazil. J. Malucelli commenced writing property casualty business in
2012. The property casualty business operates under the Travelers
brand and focuses on property, general liability, construction and
financial insurance products. The business is based in São Paulo.
As a result of the transaction, Travelers now owns 95 percent of the
property casualty business with Paraná Banco, the parent company of
J. Malucelli, retaining a five percent interest. Travelers’ interest
in the surety business of the J. Malucelli joint venture remains at
In March 2017, Travelers agreed to acquire UK-based Simply Business
from Aquiline Capital Partners for approximately $490 million. Simply
Business is a leading U.K. distributor of small business insurance
policies, offering products online on behalf of a broad panel of
carriers. It has more than 425,000 microbusiness customers covering
more than 1,000 classes of business, and was named “Best Company to
Work For” by The Sunday Times in 2015 and 2016. The transaction adds
to Travelers' digital capabilities.
Travelers is currently 116 on the
Fortune 500 list of largest U.S.
companies. On June 8, 2009, Travelers replaced its former parent
Citigroup on the Dow Jones Industrial Average.
On August 4, 2015, the company announced that Alan Schnitzer would
succeed Jay Fishman as Chief Executive Officer effective December 1,
On August 4, 2017, Travelers completed its previously announced
Simply Business , a leading provider of small business
insurance policies in the United Kingdom, offering products online on
behalf of a broad panel of carriers. The company has more than 430,000
microbusiness customers, covering more than 1,000 classes of business.
ALLEGED ANTICOMPETITIVE PRACTICES
In January 2007, Travelers agreed to pay US$77 million to six states
to settle a class action suit and end investigations into its
insurance practices. The charges involved paying the insurance
Marsh & McLennan Companies contingent commissions to win
business without the knowledge of clients, thus creating a conflict of
interest. Additionally, the investigation examined whether Travelers
had created the illusion of competition by submitting fake bids ,
thus misleading clients into believing they were receiving competitive
NATIONAL FOOTBALL LEAGUE LAWSUIT
In August 2012, Travelers sued the
National Football League for
forcing the company and its subsidiaries to pay to defend the league
for failing to protect players from brain injury , in a case filed in
New York State Supreme Court
New York State Supreme Court called Discover Property "> St.
Paul Travelers logo used until February 2007
The original logo of the red umbrella started in 1870 when it
appeared in a newspaper ad for the young insurance company. It was
revived in the early 1960s, when it was given its signature red color
by Harry W. Knettell, then the account executive for The Travelers and
Vice President at the Charles Brunelle advertising agency. During the
late 1960s Charles Brunelle was the largest advertising agency in
Hartford, a city known as "the insurance capital of the world" due to
the many insurance companies in that town. The Travelers was one of
their many insurance company clients.
In 2006, a Travelers commercial titled Snowball was nominated for an
Emmy. Snowball featured a man, walking down a steep San Francisco
sidewalk, who trips and knocks over a table of items at a garage sale.
The man and the items roll down the street, forming a ball which
gathers garbage cans, pedestrians, construction materials,
motorcycles, light poles, and other items, in a manner very
reminiscent of the familiar cartoon "snowball" effect or the cult
Katamari Damacy . The creators of the ad say it is simply
based on the snowball effect , they have never heard of the game, and
that the resulting similarity was a surprise to them.
In 2007, the company secured naming rights for an annual event to be
called the Travelers Championship golf tournament, formerly the
Greater Hartford Open , on the
PGA Tour .
In April 2008, The Travelers purchased back the rights to the famous
red umbrella, which is featured in several commercials starring Paul
Freeman as well as other advertisements. In July 2008, the spot
"Delivery," also starring Freeman, was nominated for an Emmy.
NOTABLE FORMER EMPLOYEES
* Edward Budd, former Travelers Chairman & CEO
Robert I. Lipp , former Travelers CEO
Joe Plumeri , former Travelers Vice Chairman, former Chairman &
Willis Group Holdings , and owner of the
Sandy Weill , former Travelers Chairman & CEO
Jay S. Fishman , former Travelers Chairman -webkit-column-width:
30em; column-width: 30em; list-style-type: decimal;">
* ^ A B Travelers\' NYC address = HQ move?
* ^ A B C D E F "Travelers 2016 Annual Report" (PDF).
* ^ The Associated Press (2009-06-01). "Travelers and Cisco Replace
G.M. and Citi in Dow". The New York Times. ISSN 0362-4331 . Retrieved
* ^ Browning, E.S. (2009-06-01). "Travelers, Cisco Replace Citi, GM
in Dow". The Wall Street Journal. Retrieved 2017-04-19.
* ^ Journal, Leslie Scism Staff Reporter of The Wall Street
(1998-01-20). "St. Paul to Acquire
USF&G In $2.8 Billion Stock Swap".
Wall Street Journal. ISSN 0099-9660 . Retrieved 2016-12-28.
* ^ "The St. Paul Travelers Companies, Inc. - Company Profile,
Information, Business Description, History, Background Information on
The St. Paul Travelers Companies, Inc.". www.referenceforbusiness.com.
* ^ Moylan, Martin. "Travelers drops the "St. Paul." Will it drop
the other shoe?". Retrieved 2016-12-28.
* ^ A B
Citigroup history - Travelers
* ^ A B
Primerica Financial Services history, Citigroup. Retrieved
March 2, 2007.
Aetna Completes Previously Announced Sale Of Property/Casualty
Operations To Travellers,
Aetna press release, April 2, 1996
Citigroup Announces Completion of its Spin-off of Travelers
Citigroup press release, August 20, 2002
MetLife Completes Acquisition Of Travelers Life & Annuity,
MetLife press release, July 1, 2005.
* ^ Travelers Property Casualty Corp. Buys Renewal Rights To
Commercial and Personal Lines Businesses of Royal & SunAlliance,
Travelers Property Casualty Press Release, September 4, 2003.
* ^ "Travelers Buys Some Royal & SunAlliance Lines".
www.propertycasualty360.com. Retrieved 2016-12-28.
* ^ Treaster, Joseph B. (2003-11-18). "$16 Billion Deal Joins St.
Paul and Travelers". The New York Times. ISSN 0362-4331 . Retrieved
* ^ "The St. Paul Travelers Companies, Inc. : Travelers Property
Casualty Corp.\'s Class A and Class B common stock Securities
Litigation". Stanford Law School. Retrieved April 19, 2017.
* ^ "Securities Class Action Clearinghouse: Case Page".
securities.stanford.edu. Retrieved 2016-12-28.
* ^ Riley, Clint (2007-02-14). "
Citigroup Sells Red
to St. Paul". Wall Street Journal. ISSN 0099-9660 . Retrieved
* ^ Merced, Michael J. De La (2007-02-13). "
Citigroup folds its
umbrella logo - Business - International Herald Tribune". The New York
Times. ISSN 0362-4331 . Retrieved 2016-12-28.
* ^ St. Paul Travelers to return to former Red
Umbrella logo, St.
Paul Travelers press release, February 13, 2007
* ^ Mullman, Jeremy (February 13, 2007). "Travelers Reunites With
Red Umbrella". Advertising Age. Retrieved April 19, 2017.
* ^ "Travelers Taps Into Brazil With Joint Venture". Forbes.
November 4, 2010. Retrieved 2016-08-15.
* ^ "Travelers Eyes Canada Growth with $1.1B Acquisition of The
Insurance Journal. June 10, 2013. Retrieved 2016-08-15.
* ^ "Travelers completes acquisition of The Dominion". Canadian
Underwriter. November 1, 2013. Retrieved 2016-08-15.
* ^ "Travelers Companies\' Joint Venture with J. Malucelli
Completes Acquisition of Majority Interest in Colombian Surety
Start-Up". Reuters. September 30, 2015. Retrieved 2016-08-18.
* ^ "Travelers Buys Majority Stake in J. Malucelli to Grow in
Brazil". Zacks.com. October 2, 2015. Retrieved 2016-08-18.
* ^ "Travelers makes major commitment in Brazil". Hartford Business
Journal. October 5, 2015. Retrieved 2016-07-17.
* ^ "Travelers buys
Simply Business for £400m in digital push".
Financial Times. March 13, 2017. Retrieved March 13, 2017.
* ^ "Travelers to Buy UK-Based
Simply Business for $490M".
Insurance Journal. Retrieved March 13, 2017.
* ^ "Travelers shores up online distribution with U.K. purchase".
Digital Insurance. Retrieved March 14, 2017.
* ^ 2012
Fortune 500 ranking
* ^ "Read the Travelers Statement on Alan Schnitzer and Jay
Fishman". The Wall Street Journal. August 4, 2015.
* ^ "Travelers Completes Acquisition of UK-Based Simply Business".
* ^ Garrison-Sprenger, Nicole (January 6, 2008). "Travelers to pay
$77 million to settle merger-related suit". Pioneer Press. Retrieved
April 19, 2017.
* ^ "Insurer Agrees To Halt Contingent Commissions - Law360".
www.law360.com. Retrieved 2016-12-28.
* ^ "Travelers to Pay $6 Million, Ending Inquiry on Brokers\'
Fees". The New York Times. January 1, 2008.
* ^ "UPDATE 1-Travelers to settle compensation case with states".
Reuters. December 31, 2007.
* ^ "Travelers Settles With States Over Brokers\' Contingent
Insurance Journal. 2008-01-13. Retrieved 2017-04-19.
* ^ Ax, Joseph (2012-08-22). "Travelers sues NFL over brain injury
lawsuits - Yahoo! News". News.yahoo.com. Retrieved 2012-09-15.
* ^ "UPDATE 1-Travelers sues NFL over brain injury lawsuits".
Reuters. August 22, 2012. Retrieved 2012-09-15.
* ^ "Travelers Sues NFL Over Ex-Players\' Brain Injury Lawsuits -
Law360". www.law360.com. Retrieved 2016-12-28.
* ^ Knettell family history further documented by other Hartford
insurance client colleagues including former V.P. of Connecticut
* ^ Real-life Katamari in Travelers
Insurance ad, Zach Stern,
September 25, 2006
* ^ Travelers ad imitating Katamari: just coincidence, Zach Stern,
September 28, 2006
* ^ JILL ANDRESKY FRASER; Jill Andresky Fraser, the financial
strategies editor at Inc., has been following the insurance industry
for 10 years. (1990-12-02). "COVER STORY - COVER STORY - The Travelers
Rides Into The Storm". NYTimes.com. Retrieved 2010-07-30. CS1 maint:
Multiple names: authors list (link )
* ^ Mathews, Jay (September 24, 1993). "The Making of a Financial
Services Empire; Primerica\'s $4.2 Billion Purchase of Travelers May
Signal a Revival of Mega-Mergers". Google.com. Retrieved 2010-07-30.
* ^ Levick, Diane (1994-03-27). "Proquest - Courant.com".
Pqasb.pqarchiver.com. Retrieved 2010-07-30.
* ^ Scism, Erik Holm and Leslie. "New Travelers CEO Has Family
Ties". WSJ. Retrieved 2016-12-28.
* ^ "
Robert I. Lipp J.D.: Executive Profile & Biography -
Bloomberg". www.bloomberg.com. Retrieved 2016-12-28.
* ^ Edelstein, Jeff (May 17, 2010). "Look Who\'s Talking: Samuel J.
Plumeri Jr.". The Trentonian News. The Trentonian News. Retrieved July
* ^ Bianco, Anthony (March 30, 1998). "Joe Plumeri: The Apostle of
Life Insurance". Bloomberg.
Business Week . Retrieved July 15, 2010.
* ^ "Joseph J. Plumeri Profile - Forbes.com". 2010-09-30. Archived
from the original on 2010-09-30. Retrieved 2016-12-28.
* ^ "Newspaper Archive". Nl.newsbank.com. 1994-10-23. Retrieved
* ^ Lubanko, Matthew (1998-03-12). "Proquest - Courant.com".
Google.com. Retrieved 2010-07-30.
* ^ "
Jay S. Fishman Executive Profile and Biography".