Citigroup buys Travelers property/casualty stock
Hartford-based Travelers Insurance Co. has accepted a cash tender offer from New York-based Citigroup for all the publicly held stock in Travelers' property/casualty line. The stock buy is expected to cost Citigroup $2.3 billion.
|"As far as consumers are concerned, there will be no difference."|
The sale means that Travelers will be wholly owned by Citigroup. In addition to the auto and homeowners insurance policies, which will fall under Citigroup's control, Citigroup also owns Travelers' life and annuity business lines.
Despite the buyout, however, Travelers spokesperson Keith Anderson says there will be no change in business of the company, no change in the location of the company, and no change for policyholders.
"It's not going to change anything," Anderson says. "We'll still be headquartered here. This is not a transaction that has anything to do with day-to-day operations of the company."
Instead, Anderson explains, the stock buy simply means that Citigroup will own all of Travelers, including all of the company's property/ casualty line, instead of the 85 percent it previously held.
"It is simply a matter of Citigroup buying the 15 percent of remaining shares," Anderson says. "As far as consumers are concerned, there will be no difference."