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
The company has field offices in every U.S. state, plus operations in
the United Kingdom, Ireland,
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 * 3 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 Corporation.
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
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.
In 1998, the Travelers Group merged with Citicorp to form
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
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
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 49.5 percent.
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.
On August 4, 2015, the company announced that Alan Schnitzer would succeed Jay Fishman as Chief Executive Officer effective December 1, 2015.
On August 4, 2017, Travelers completed its previously announced acquisition of 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 broker 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 commercial premiums.
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
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
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 & CEO of Willis Group Holdings , and owner of the Trenton Thunder * 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