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Member, Beacon International Group, Ltd.
HARTFORD, Conn.--Citigroup Inc. has completed its spinoff of Travelers Property Casualty Corp.
Citigroup Tuesday distributed more than 219 million shares of Travelers Class A common stock and more than 450 million shares of Travelers Class B common stock to Citigroup stockholders.
The stock distribution follows a March initial public offering of Travelers P/C shares, in which Citigroup sold approximately 23% of the insurer's stock for more than $4 billion. Following Tuesday's share distribution, Citigroup retains just under 10% of Hartford, Conn.-based Travelers P/C's common stock.
Citigroup acquired the Travelers P/C operation as part of its $70 billion merger with Travelers Group in 1998.
As an independent company, Travelers P/C will be able to set its own management and capital-allocation priorities, said Robert I. Lipp, the company's chairman and chief executive officer. Meanwhile, the insurer's financial performance will enjoy greater visibility in the marketplace, he said.
Travelers P/C customers should not see any immediate impact from the change, Mr. Lipp said. "I think it's business as usual. I'm happy to say we've got such great people and a great agency system that we had even before Citigroup came along," he said. "We like what our people do. We like the way we underwrite."