Reporters Notebook
Wednesday, May 1st, 2002 TechnologyCitigroup, which is spinning off its Travelers Property Casualty subsidiary, is offering Travelers protection on asbestos-related claims as part of the transaction. In December, the company announced its plan to form a separate Travelers unit, selling off 20 percent of the company’s stock in an initial public offering and spinning off the remaining majority interest in a tax-free transaction to Citigroup shareholders. Citigroup will retain Travelers Life & Annuity. Should Travelers post more than $150 million in additional asbestos-related claims in a year, Citigroup will pay the additional claims to a maximum of $800 million, according to a U.S. Securities and Exchange Commission filing. Travelers estimates that 81 percent, approximately $665 million, of its asbestos-related reserves are incurred-but-not-reported losses, leaving 19 percent, or about $155 million, available for future claims.
