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Citigroup files Travelers IPO
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February 8, 2002: 6:58 p.m. ET
$5 billion could be raised; Salomon Smith Barney is lead underwriter.
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NEW YORK (CNN/Money) - Travelers Property Casualty Corp., the insurance unit of Citigroup Inc., filed with the Securities and Exchange Commission Friday for an initial public offering that some believe could raise $5 billion.
Travelers didn't announce how many shares it would sell or their price range; such information will come in future filings. The unit will trade as TAP.A on the New York Stock Exchange with Salomon Smith Barney serving as lead underwriter.
The IPO, which was announced in December, could bring in as much as $5 billion, analysts have said. The move is the first time in years that New York-based Citigroup, with banking, brokerage and insurance operations in more than 100 countries, will sell a major business.
Citigroup is looking to spin off the unit because it is slow growing and only expected to only increase earnings by 7 percent-to-8 percent over time.
Hartford, Conn.-based Travelers is a leading property and casualty insurer in the United States and the third largest underwriter of commercial lines. The company sells its commercial products -- which include workers compensation, general liability and property -- through 6,300 independent agencies and brokers in the United States.
Travelers is also the second-largest writer of personal lines insurance, which include personal automobile and homeowners, in the United States.
Commercial lines produced $5.7 billion in written premiums while personal lines generated about $4.1 billion for the year ended Dec. 31, 2001.
Citigroup is selling 20 percent of Travelers and will own all of Traveler's Class B stock after the IPO. However, the financial giant plans to distribute all of its ownership interest to shareholder by the end of 2002, the company said in an SEC filing.
Travelers reported $1.1 billion in income on $12.2 billion revenue for the year ended Dec. 31, compared with $1.3 billion in income on $11.1 billion in revenue for the same time period in 2000. 
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