Travelers 2003 Annual Report Download - page 25

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23
(for the year ended December 31,
% of Total
in millions) 2003 2002 2001 2003
Net written premiums by product line:
Commercial multi-peril $ 2,397.0 $ 2,113.9 $ 1,757.9 29.5%
Workers’ compensation 1,351.5 1,135.0 1,030.6 16.6
Commercial automobile 1,419.1 1,454.7 914.3 17.5
Property
1,175.2 1,088.8 833.1 14.5
Fidelity and surety 610.7 541.9 506.6 7.5
General liability 1,165.9 1,035.2 695.1 14.4
Total $ 8,119.4 $ 7,369.5 $ 5,737.6 100.0%
Net written premiums by market:
N
ational Accounts $ 902.8 $ 734.6 $ 418.9 11.1%
Commercial Accounts 3,725.7 3,556.1 2,407.1 45.9
Select Accounts 2,047.6 1,869.5 1,713.2 25.2
Total Core 6,676.1 6,160.2 4,539.2 82.2
Bond
780.5 629.9 590.2 9.6
Gulf
662.8 579.4 608.2 8.2
Total Specialty 1,443.3 1,209.3 1,198.4 17.8
Total
$ 8,119.4 $ 7,369.5 $ 5,737.6 100.0%
Product Lines
Travelers writes a broad range of commercial property and casualty insurance for risks of all sizes. The core products
in Commercial Lines are as follows:
Commercial Multi-Peril provides a combination of property and liability coverage typically for small businesses.
Property insurance covers damages such as those caused by fire, wind, hail, water, theft and vandalism, and protects
businesses from financial loss due to business interruption resulting from a covered loss. Liability coverage insures
businesses against third-party liability from accidents occurring on their premises or arising out of their operations,
such as injuries sustained from products sold.
Workers’ Compensation provides coverage for employers for specified benefits payable under state or federal law for
workplace injuries to employees. There are typically four types of benefits payable under workers’ compensation
policies: medical benefits, disability benefits, death benefits and vocational rehabilitation benefits. Travelers
emphasizes managed care cost containment strategies, which involve employers, employees and care providers in a
cooperative effort that focuses on the injured employee’s early return to work, cost-effective quality care, and customer
service in this market. Travelers offers the following three types of workers’ compensation products:
• guaranteed cost insurance products, in which policy premium charges are fixed for the period of coverage and
do not vary as a result of the insured’s loss experience;
• loss-sensitive insurance products, including large deductible and retrospectively rated policies, in which fees or
premiums are adjusted based on actual loss experience of the insured during the policy period; and