Business News

MetLife to gobble up Travelers

Hartford Post: September 25, 2005 front business page

By business correspondent Artemus G. Scribe

[Photo of employees leaving travelers building]

Connecticut politicians are in frenzy over the prospect of 800 plus jobs being cut from the travelers work force. Since the announced purchase of Travelers by the New York based MetLife on January 31st this year rumors have spread of substantial cut backs at Travelers.

MetLife plans to buy Travelers from Citigroup for 11.5 billion. This will make MetLife the largest individual insurer in North America.

Originally the number of jobs on the chopping block totaled over a thousand. In addition to the job lost there are questions of whether some of the surviving jobs will be lesser paying clerical and maintenance jobs.

The proposal must be approved by the Department of Insurance. In the past such approvals have been almost routine. This time it may be different given that Governor Rell and Attorney General Blumenthal have become involved.

Attorney General Richard Blumenthal stated, “This acquisition is against the public interest because it will destroy jobs, damage our economy and disadvantage families”.

Governor M. Jodi Rell has spoken to representatives of MetLife. She pressured the Company to minimize the lost of jobs among the 2,000 employees in Connecticut.

Insurance Commissioner Susan Cogswell, who must approve the transaction, has not yet scheduled a public hearing on the sale.

Be prepared for a slugfest among these financial and political heavy hitters.