Travelers Property Casualty IPO tops $4 billion. (Briefing).The debut of Travelers Property Casualty Corp. on Wall Street appears to be a success, bringing in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $4.1 billion. The initial public offering puts Travelers at the top of the all-time list of IPOs for insurers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. .com market analyst Kyle Huske. Travelers said the IPO's underwriters exercised their full over-allotment option to purchase an additional 21 million shares of class A common stock, bringing the total shares sold to 231 million. Underwriters for a concurrent offering of 4.5% convertible junior subordinated notes due in 2032 also exercised their over-allotment option to buy an additional $42.5 million aggregate principal amount of notes, for a total offering of $892.5 million, Travelers said. More than 82 million shares of Travelers stock were traded on its opening day. The shares that went up for sale to the public represent 42% of the 500 million shares outstanding. Citigroup said in December it would spin off Travelers Property Casualty, selling 20% of the company's stock in an IPO and spinning off the remaining majority interest in a tax-free transaction to Citigroup shareholders. Peter Migliorato, a partner with Deloitte Consulting, said Travelers should enjoy strong short-term growth because of favorable pricing trends and will likely be motivated to cut costs. "The future for Travelers is bright," he said. "The prospects are very positive relative to peer property/casualty companies. Travelers has a heritage of strong underwriting discipline and quality distribution." The IPO recognizes a favorable pricing environment and gives Travelers enhanced flexibility to pursue business opportunities in the wake of severe market dislocation dislocation, displacement of a body part, usually a bone. When a bone is dislocated, the ends of opposing bones are usually forced out of connection with one another. In the process, bruising of tissues and tearing of ligaments may occur. after the events of Sept. 11, according to A.M. Best Co.'s Company Reports. "In addition, its direct access to the capital markets as an independent publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. should provide Travelers P&C with a strong platform through which it can continue to take advantage of industry consolidation," said A.M. Best. Travelers Property Casualty is one of the top 10 insurers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , A.M. Best said. About 55% of its business is commercial lines, and 45% is personal lines. Citigroup gets all of the money the Travelers IPO will raise, as well as the funds from the concurrent note offering. Citigroup will maintain 95% of the voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. in Travelers, as it will hold 790 million class A and B shares. The 210 million IPO shares represent only 5% of the voting rights. Citigroup eventually will turn over those shares to its own shareholders. RELATED ARTICLE: Travelers Property Casualty Corp. Primary Business: Commercial and personal lines products 2001 Financial Data Premiums: $9.4 billion (*) Total Assets: $57.8 billion (*) Policyholders Surplus: $7.7 billion Chief Executive: Robert I Robert I, duke of Normandy Robert I (Robert the Magnificent), d. 1035, duke of Normandy (1027–35); father of William the Conqueror. He is often identified with the legendary Robert the Devil. . Lipp Headquarters: Hartford, Conn. (*.) Prepared using U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting |
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