Travelers reopens red umbrella

The St. Paul Travelers Companies Inc. is reacquiring its trademark red umbrella from Citigroup, and changing its name to The Travelers Companies Inc.

After the closing of the transaction, which is expected in mid-March following regulatory approvals, the company will begin trading on the New York Stock Exchange under the new stock symbol “TRV.”

Purchase terms were not disclosed however, purchasing the rights to use the red umbrella from Citigroup cost the insurer “millions,” said Jay Fishman, chairman and chief executive officer.

“The red umbrella is one of the great American business icons. It’s a familiar representation of protection and insurance that is in-synch with our customers’ ever-changing needs,” Fishman said. “Bringing back the umbrella and changing the company name will further advance the highly-regarded Travelers brand.”

Fishman said that the company’s branding research indicated that recognition of the red umbrella by its customers was “quite remarkable.”

He said reacquiring the red umbrella gives Travelers the opportunity to launch its brand program. “So many people identify with the umbrella,” he said.

Fishman noted that the opportunity to reacquire the logo arose after Citigroup decided to pursue a unified global brand identity without using the trademark red umbrella it inherited when it bought Travelers years ago.

According to a Citigroup announcement, net proceeds from the sale of the umbrella will offset the future costs of implementing the Citigroup unified brand.

“What we’ve paid for it … I’m hopeful will be more than made up in the increased value,” the umbrella will provide to the company, Fishman said.

The umbrella is believed to have first appeared as an illustration of insurance protection in a Travelers ad in 1870, and, as the red umbrella, became the official Travelers trademark in 1959.