Travelers Combines Forces With The St. Paul
By Robert Warne - November 17, 2003 A proposed merger between Travelers Property Casualty Corp. and The St. Paul Companies Inc. announced Nov. 17 would usher the newly formed entity into the nation's number two slot in size behind American International Group for providing commercial liability, commercial property and workers' compensation policies.
The new company will be known as The St. Paul Travelers Companies and is expected to have total assets of $107 billion.
The board of directors of each company unanimously agreed to the tax-free, stock-for-stock merger, valued at $16 billion.
The company will rank number 2 in domestic commercial lines, number 2 in agent distributed personal lines, number 5 overall among domestic property and casualty companies, and will be one of the top three commercial insurers in 42 states and the District of Columbia, according to direct written premium data compiled by AM Best.
"We are absolutely convinced we are far better together than we ever would be alone," said Jay S. Fishman, the chairman and chief executive of The St. Paul, told the Associated Press.
The AP also reported that Keith Anderson, a Travelers spokesman said no layoffs are planned.
The transaction is subject to customary closing conditions, including the approval by the shareholders of both companies as well as certain regulatory approvals. The transaction is expected to close in the second quarter of 2004.
To read the press release in its entirety, go to: http://travelers.com/investor/.
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