Travelers 2003 Annual Report Download - page 49

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47
Personal Lines net written premiums by product line were as follows:
(for the year ended December 31, in millions) 2003 2002 2001
Automobile $ 3,053.3 $ 2,842.9 $ 2,590.7
Homeowners and othe
r
2,028.1 1,732.1 1,517.2
Total net written premiums $ 5,081.4 $ 4,575.0 $ 4,107.9
Personal Lines net written premiums increased $506.4 million or 11% in 2003 due to renewal price increases and
higher business volumes in both the Automobile and Homeowners and Other lines of business. Net written premiums
in 2002 increased $467.1 million or 11% due to renewal price increases in both the Automobile and Homeowners and
Other lines of business and the full-year inclusion of Northland. Net written premiums for Northland were $111.0
million in 2002, an increase of $85.7 million over 2001 which only included the fourth quarter.
Automobile net written premiums increased $210.4 million or 7% in 2003 due to higher business volumes and renewal
price increases. Renewal price change increases for standard voluntary business averaged 6% in 2003, two percentage
points below 2002. Renewal price change for Personal Lines products represents the estimated average change in
premium on policies that renew, including rate and exposure changes, versus the average premium on those same
policies for their prior term. Policies in force increased 4% in 2003. Policy retention levels for standard voluntary
business remained favorable and averaged 81%, up one percentage point from 2002. Retention for Personal Lines
products represents the estimated percentage of policies from the prior year period renewed in the current period.
Automobile net written premiums in 2002 increased $252.2 million or 10%. Excluding the impact of Northland,
which contributed $97.5 million and $23.7 million to 2002 and 2001, respectively, Automobile net written premiums
increased 7% to $2.745 billion. Renewal price changes for standard voluntary business averaged 8% for 2002, up one
percentage point from 2001. Policies in force increased 2% in 2002. Policy retention levels for standard voluntary
business in 2002 remained favorable and averaged 80%, up one percentage point from 2001.
Homeowners and Other net written premiums increased $296.0 million or 17% in 2003 due to higher business volumes
and renewal price increases. Renewal price change increases averaged 11% in 2003 compared to 15% for 2002. The
higher level of renewal price change increases in 2002 was mostly attributable to rate increases in Texas. Policies in
force increased 6% in 2003. Retention levels also remained favorable and averaged 81%, up one percentage point
from 2002. Homeowners and Other net written premiums increased $214.9 million or 14% in 2002. Excluding the
impact of Northland, which contributed $13.5 million and $1.6 million to 2002 and 2001, respectively, Homeowners
and Other net written premiums increased 13% to $1.719 billion. Renewal price changes averaged 15% for 2002, up 5
percentage points from 2001. Policies in force were flat in 2002. Retention levels also remained favorable and
averaged 80% in both 2002 and 2001.
Production through Travelers independent agents in Personal Lines, which represented over 81% of Personal Lines
total net written premiums in 2003, was up $423.6 million or 11% to $4.159 billion. Production through other
channels, which include affinity and joint marketing arrangements, was up $82.8 million or 10% to $922.2 million.
Production through Travelers independent agents in 2002 was up $427.7 million or 13% to $3.736 billion for 2002,
including the impact of Northland. Net written premiums through channels other than independent agents was up
$39.4 million or 5% to $839.4 million for 2002 as the favorable impact of renewal price changes was offset in part by a
reduction in policies in force due to underwriting actions taken to eliminate marginally profitable businesses.