Travelers 2004 Annual Report Download - page 15

Selected Market and Product Information
The following table sets forth Commercial net written premiums by market and product line for the periods
indicated. For a description of the product lines and markets referred to in the table, see “—Principal Markets and
Methods of Distribution” and “—Product Lines,” respectively.
(for the year ended December 31, in millions) 2004 2003 2002
%of
Total
2004
By market:
Commercial Accounts ........................................ $4,211 $3,251 $3,151 51.3%
Select Accounts ............................................. 2,555 2,047 1,869 31.1
National Accounts ........................................... 940 831 641 11.4
Total Commercial Core ................................... 7,706 6,129 5,661 93.8
Commercial Other ........................................... 507 733 669 6.2
Total Commercial by market ............................. $8,213 $6,862 $6,330 100.0%
By product line:
Commercial multi-peril ....................................... $2,517 $2,246 $1,979 30.6%
Workers’ compensation ....................................... 1,499 1,234 1,020 18.3
Commercial automobile ...................................... 1,576 1,313 1,364 19.2
Property ................................................... 1,455 1,166 1,076 17.7
General liability ............................................. 1,113 833 817 13.6
Other ..................................................... 53 70 74 0.6
Total Commercial by product line ......................... $8,213 $6,862 $6,330 100.0%
Many National Accounts customers require insurance-related services in addition to or in lieu of pure risk
coverage, primarily for workers’ compensation and, to a lesser extent, general liability and commercial
automobile exposures. These types of services include risk management services, such as claims administration,
loss control and risk management information services, and are generally offered in connection with large
deductible or self-insured programs. These services generate fee income rather than net written premiums.
Principal Markets and Methods of Distribution
The Commercial segment distributes its products through approximately 6,200 independent agencies and
brokers located throughout the United States that are serviced by approximately 100 field offices and three
customer service centers. In recent years, the Commercial segment, particularly in its Select Accounts operation,
has made significant investments in enhanced technology utilizing internet-based applications to provide real-
time interface capabilities with its independent agencies and brokers. Commercial builds relationships with well-
established, independent insurance agencies and brokers. In selecting new independent agencies and brokers to
distribute its products, Commercial considers each agency’s or broker’s profitability, financial stability, staff
experience and strategic fit with its operating and marketing plans. Once an agency or broker is appointed,
Commercial carefully monitors its performance.
Commercial Accounts sells a broad range of property and casualty insurance products through a large
network of independent agents and brokers. Commercial Accounts’ casualty products primarily target mid-sized
businesses with 75 to 1,000 employees, while its property products target large, mid-sized and small businesses.
The Company offers a full line of products to its Commercial Accounts customers with an emphasis on
guaranteed cost programs.
A key objective of Commercial Accounts is continued focus on first party product lines of business, which
cover risks of loss to property of the insured. Beyond the traditional middle market network, dedicated
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