Travelers 2001 Annual Report Download - page 23

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The St. Paul Companies 2001 Annual Report 21
% of 2001
Year ended Written
December 31 Premiums 2001 2000 1999
(Dollars in millions)
primary insurance
operations:
Specialty Commercial
Written premiums 27% $2,109 $ 1,563 $ 1,322
Underwriting result $ (181) $ (10) $ (191)
Combined ratio 108.6 97.9 113.6
Adjusted combined ratio* 103.4 105.7 115.7
Commercial Lines Group
Written premiums 20% $1,604 $ 1,436 $ 1,303
Underwriting result $4$ 74 $ (189)
Combined ratio 98.2 94.7 113.3
Adjusted combined ratio* 94.2 92.9 115.9
Surety and Construction
Written premiums 13% $991 $ 859 $ 826
Underwriting result $ (33) $ 68 $ (27)
Combined ratio 102.7 88.8 100.1
Adjusted combined ratio* 104.0 95.1 102.8
Health Care
Written premiums 10% $770 $ 599 $ 545
Underwriting result $ (985) $ (241) $ (70)
Combined ratio 222.9 139.5 114.8
Adjusted combined ratio* 221.2 142.2 –
Lloyd’s and Other
Written premiums 8% $608 $ 351 $ 201
Underwriting result $(374) $ (86) $ (23)
Combined ratio 164.2 123.1 112.2
Adjusted combined ratio* 129.9 132.7 –
total primary insurance
Written premiums 78% $6,082 $ 4,808 $ 4,197
Underwriting result $ (1,569) $ (195) $ (500)
Combined ratio 126.5 103.1 111.2
Adjusted combined ratio* 119.7 107.7 113.2
Reinsurance
Written premiums 22% $1,681 $ 1,076 $ 915
Underwriting result $ (725) $ (114) $ 75
Combined ratio 145.6 112.0 92.2
Adjusted combined ratio* 117.5 120.7 109.1
total property-liability
insurance
Written premiums 100% $7,763 $ 5,884 $ 5,112
Underwriting result $(2,294) $ (309) $ (425)
Statutory combined ratio:
Loss and loss expense ratio 102.5 70.0 72.9
Underwriting expense ratio 28.1 34.8 35.0
Combined ratio 130.6 104.8 107.9
Adjusted combined ratio* 119.3 110.4 112.4
* For purposes of meaningful comparison, adjusted combined ratios in all
three years exclude the impact of the reinsurance treaties described on
pages 18 and 19 of this report, and in 2001, the impact of the Sept. 11, 2001
terrorist attack.
property-liability insurance
Primary Insurance Operations
Our primary insurance underwriting operations consist of five busi-
ness segments that underwrite property-liability insurance and
provide insurance-related products and services to commercial and
professional customers. We utilize a network of more than 5,000
independent insurance agents and brokers to distribute the major-
ity of our insurance products.
To provide a more meaningful analysis of the underlying perform-
ance of our property-liability business segments, the following
discussion of segment results excludes the impact of the terrorist
attack in 2001 and the reinsurance treaties in all three years. The
impact of the terrorist attack on individual segment results was dis-
cussed on page 13 of this report, and the impact of the reinsurance
treaties was discussed on pages 18 and 19 of this report.
primary insurance operations
Specialty Commercial
The business centers comprising this segment are
designated specialty commercial operations because
each provides dedicated underwriting, claim and risk
control services that require specialized expertise, and
each focuses exclusively on the respective customer
group each serves.Those business centers are as follows.
Technology offers a comprehensive portfolio of specialty
products and services to companies involved in tele-
communications, information technology, medical
technology, biotechnology and electronics manufactur-
ing. Financial and Professional Services (“FPS”)
provides coverages for financial institutions, including
property, liability, professional liability and manage-
ment liability coverages; financial products coverages
for corporations and nonprofit organizations; and errors’
and omissions’ coverages for a variety of professionals
such as lawyers, insurance agents and real estate
agents. Public Sector Services markets insurance prod-
ucts and services to cities, counties, townships and
special governmental districts. Discover Re serves retail
brokers and insureds who are committed to the alter-
native risk transfer market, which is typically utilized by
sophisticated insureds that are financially able to
assume a substantial portion of their own losses.