Travelers Companies Inc. (TRV) is divided into three different segments: Commercial Insurance, Financial, Professional and International Insurance, and Personal Insurance. TRV is one of the United States’ largest commercial/business insurers. Travelers offers property, auto, marine, workers’ compensation, financial and general liability coverage to companies in the U.S., and also to businesses in the United Kingdom, Ireland, and Canada. In addition, Travelers offers personal auto and homeowners insurance, but 70 percent of its revenue is earned through commercial and professional sales. Over 14,000 independent agents and insurance brokers sell the majority of Travelers’ insurance policies.
In 2009, Travelers employed over 30,000 employees and earned $25 billion in revenues. The revenues for the 3rd quarter of 2010 were $6.482 billion, which was an increase of 2 percent from the same quarter of 2009. The stock price for TRV as of mid-January 2011 is $54.67. This is an increase of $7 per share from January 2010.
The history of Travelers Companies began in Hartford, Connecticut, when James G. Batterson began selling accident insurance policies in 1864. In 1865, Travelers started offering life insurance policies. Batterson’s company, Travelers, grew and in 1897 became the first insurance company to offer automobile insurance. By 1901, Travelers was also offering health and liability insurance. Always progressive, Travelers, was also the first insurance company to provide a commercial airline insurance policy and a space travel policy.
Because of the competitive marketplace in the 1990’s, Travelers merged with several different companies. In 1993, Primerica bought Travelers, and in 1995, Travelers acquired Aetna’s property and casualty business. In 1998, Citicorp merged with Travelers, but later Citigroup sold Travelers off. In 2004 Travelers merged with St. Paul Fire and Marine Insurance Company, which had been founded in 1853 as an insurance answer to Midwest businesses and people who didn’t want to deal with East coast firms. As a result of the merger, its stock price rose.
On June 8, 2009, Travelers Companies (TRV stock price) took its place on the Dow Jones Industrial Average; it replaced Citigroup who at one time had owned Travelers. Currently, Travelers is ranked 98 on the Fortune 500.
