Exhibit 99.2
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SPIN-OFF OF TRAVELERS PROPERTY CASUALTY
December 19, 2001
TRANSACTION OVERVIEW
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- - Citigroup intends to spin-off Travelers Property Casualty Corp.
- Up to 20% of TAP to be sold in an Initial Public Offering in first
quarter of 2002
- Remaining equity of TAP will be spun off by year end on a tax-free
basis to shareholders of Citigroup
- - Robert Lipp appointed Chairman and CEO of TAP
- - Continued relationship between Citigroup and TAP
- Distribution: Citigroup will continue to market TAP's homeowners' and
auto policies through PFS, Citifinancial, and Citibank
- Investment advisory: Citigroup intends to provide ongoing investment
advisory services to TAP
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STRATEGIC IMPACT ON CITIGROUP
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- - Citigroup to focus on higher growth and return businesses
- Continue objective to deliver double-digit earnings growth and 20%+
ROE to shareholders
- - Streamlines Citigroup's operations and management structure
- - Travelers Life and Annuity to be retained by Citigroup as part of wealth
management strategy
- - Citigroup ratings affirmed by S&P, Moody's and Fitch
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CITIGROUP'S GROWTH RATE AND RETURNS
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INCOME GROWTH AVERAGE ROE
CITI 15% CITI 22%
CITI EX-TAP 16% CITI EX-TAP 23%
TAP 8% TAP 15%
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1999-2001* CAGR 1999-2001* AVERAGE
N.B. Numbers exclude TAP losses related to the World Trade Center attacks of
$490 million after-tax and include after-tax realized gains and losses for TAP
($70 million in 1999, $31 million in 2000, and $222 million in 2001).
*9 month 2001 results annualized
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TRAVELERS PROPERTY CASUALTY
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- - Creates leading independent property and casualty insurance company
- Experienced management team - CEO Robert Lipp
- - Facilitates TAP's ability to participate in industry consolidation
- Opportunity to participate independently in industry consolidation
- Strategic direction independent of Citigroup's
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CITIGROUP FINANCIAL IMPACT
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($ in millions)
FULL YEAR 2000 1-3Q 2001
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Citigroup Core Income $14,140 $10,707
TAP
Commercial Lines 1,093 428
Personal Lines 307 155
Realized Gains/Losses(1) 31 222
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Total TAP Income 1,431 805(2)
% of Citigroup 10% 8%
1. Reported in Citigroup's "Investment Activities"
2. Includes $490mm of after-tax reserves associated with September 11th events
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The statements contained in this presentation that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. Citigroup's actual results may differ materially from
those included in the forward-looking statements. You are also directed to other
risks and uncertainties discussed in documents filed by Citigroup and Travelers
Property Casualty Corp. with the Securities and Exchange Commission.
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