Journal of Banking & Finance Vol. 25 No. 8 2001
Citicorp–Travelers Group merger: Challenging barriers between banking and insurance
Abstract
The Citicorp–Travelers Group merger increased the prospects for new legislation to remove the barriers between banking and insurance, resulting in a positive wealth effect for institutions most likely to gain from deregulation. Analysis of abnormal returns surrounding the merger show that life insurance companies and large banks (excluding Citicorp and Travelers Group) have significant stock price increases, while the returns of small banks, health insurers, and property/casualty insurers are insignificantly different from 0. This analysis provides evidence that investors expect large banks and insurance companies to receive significant benefits from recent congressional legislation removing barriers to bancassurance.
- DOI
- 10.1016/s0378-4266(00)00134-5
- Volume
- 25
- Issue
- 8
- Pages
- 1553-1571
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib