New Hands on the Umbrella

Over the new skyline of Hartford, Conn., hangs a big, bright red umbrella --symbolically, at least. The umbrella is the emblem of the Travelers Insurance Companies, which played a major part in making the skyline possible with a $40 million investment in office buildings, a hotel, a shopping center and garages. In its 100 years, the U.S.'s largest stock insurance company (it is fourth among all insurance firms) has also reshaped the skyline of the $178 billion insurance industry, introducing such firsts as double indemnity and automobile insurance. Last week Travelers did some internal reshaping. Into its vacant chairman's seat moved erudite President J. (for John) Doyle DeWitt, 62, to be replaced as president by Executive Vice President Sterling T. Tooker, 51, the likely successor as chief executive when DeWitt retires three years from now.

What Goes On. In an industry traditionally dominated by financial men, DeWitt and Tooker are exceptions. DeWitt joined Travelers in 1925, as a claims adjuster, moved through that field to become president in 1952; at his instigation, Travelers has become famous for fast claim paying. Tooker, a Hartford native, was first an actuary, moved over to personnel work after World War II naval service, and has since supervised the 50,000 Travelers agents and brokers who sell policies in 50 states and Canada. Under this untraditional hold, the largest multiple-line insurance company operates with a relaxed kind of multiple management. "DeWitt," explains one Travelers executive, "is not one who comes dashing into a department crying 'What the hell goes on here?' "

What goes on is a flow of innovations that have raised premium income to a record $1.5 billion. Travelers established its own weather station and research center in 1955, geared casualty insurance thereafter to better information on storms and industrial-accident causes. It was first to introduce monthly budget plans, and it writes 25% of all package-plan insurance sold in the U.S. Travelers' fastest-growing division now is group insurance, which the company got into in 1866 when it wrote a policy covering every member of the Baltimore fire department with $1,000 in life insurance. This year group will pull even in total premiums collected ($700 million) with casualty and fire insurance. The Travelers policy on 1.3 million U.S. railroad workers and their dependents is the largest group policy ever written on non-government employees but the company has also pushed successfully to reduce "groups," first to 25 people and then to four.

Logical Customers. The new executive line-up is meant to maintain the initiative. Tooker will administer the company and oversee investments, which lean more strongly than in most companies on Government bonds but also stress mortgages on one-family homes ($500 million worth) occupied by the kind of people who are logical customers for multiple insurance. Meanwhile, DeWitt will concentrate on Travelers' newest venture. The company is moving overseas. Beginning with insurance on the growing number of U.S. corporations and families at work abroad, it intends to go on from there to spread its umbrellas around the world.

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