Citigroup Sells Travelers Unit To MetLife For $11.5 Billion - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Citigroup Sells Travelers Unit To MetLife For $11.5 Billion

Move may signal the end of the "financial supermarket" that provides banking, insurance, and investment services.

Citigroup Inc. disclosed the sale Monday of the life and annuity division of its Travelers insurance business, along with most of its international insurance business, to MetLife Inc. for $11.5 billion.

The deal completes the jettisoning of the Travelers business, which Citigroup acquired almost seven years ago. In 2002, Citigroup spun off the property and casualty division of Travelers; that division later merged with St. Paul Cos.

It also represents the symbolic end of the era of the financial supermarket, through which financial-services products, including banking, insurance, and investments, could be peddled by a single large institution and delivered through multiple channels such as branches, over the phone, and on the Web.

The acquisition of Travelers Group in 1998 epitomized the financial-supermarket concept. Indeed, by the end of that year, the Travelers division had sold some 3,000 auto and homeowners' insurance policies through the call centers that service Citibank's credit-card business.

Many observers questioned whether Citigroup could execute on one of the prerequisites of a financial supermarket: providing a single view of customer information out of systems spanning multiple product lines, geographic regions, and distribution channels. Many banks have had difficulty providing that view for products as similar as checking, savings, and mortgages--let alone insurance and investments.

In a report issued last week, Isabella Fonseca, an analyst at Celent Communications, wrote that banks are seeking solutions to address "the lack of integration among channels and data within the bank's internal system infrastructure," which is making it difficult to achieve a single-customer view.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
Register for InformationWeek Newsletters
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll