Travelers’ Property Casualty Corp. announced the $5 billion earnings as a result of its record-breaking IPO and bond sales offered last week, the largest of any U.S. insurer, according to Reuters Securities.
The Citigroup Inc. spin-off said IPO underwriters exercised their options to buy an additional 21 million Class A shares, totaling a combined 231 million shares. This increased the total net proceeds to $4.1 billion.
In separate transactions, underwriters exercised their option to purchase $42.5 million of 4.5 percent 30-year junior subordinated bonds, which are convertible into Traveler’s stock at $23.13 per share.
Both the bond offering and IPO were arranged by Citigroup’s investment banking unit, Smith Salomon Barney.
Travelers’ shares have risen 8.1 percent from their initial offering price of $18.50.
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