Travelers 2004 Annual Report Download - page 20

Specialty also includes several other underwriting groups that provide unique combinations of insurance
coverage, risk management, claims handling and other services for a targeted client’s needs. Included in “Other
Domestic Specialties” are the following business units:
•Technology offers a well-balanced comprehensive portfolio of specialty products and services to
companies involved in telecommunications, information technology, medical technology and electronics
manufacturing. These products include property, commercial auto, general liability, workers’
compensation, umbrella, internet liability, technology errors and omissions coverages and global
companion products.
•Public Sector Services markets insurance products and services to public entities including
municipalities, counties, Indian Nation gaming and selected special government districts such as water
and sewer utilities. The policies written by this business group typically cover property, commercial
auto, general liability and errors and omissions exposures.
•Ocean Marine underwrites a diverse portfolio of coverages for all forms of marine transportation and
the companies that serve them, as well as other businesses involved in international trade. The
Company’s product offerings fall under six main coverage categories: marine liability, cargo, hull and
machinery, protection and indemnity, pleasure craft, and marine property and liability.
•Oil and Gas provides specialized property and liability products and services for customers involved in
the exploration and production of oil and natural gas including operators and drilling contractors as well
as various service and supply companies and manufacturers that support upstream operations. The
policies written by this business group insure drilling rigs, natural gas facilities, and production and
gathering platforms, and cover risks including physical damage, liability and business interruption.
•Underwriting Facilities underwrites liability and property facilities produced by wholesalers and
managing general agents (MGAs). MGAs are licensed insurance agents that manage customers with
unique requirements, primarily those with moderate- to high-hazard exposures requiring expertise in the
surplus lines marketplace and the ability to use policy forms not subject to regulatory requirements.
Coverages include property, commercial auto and general liability.
•Umbrella/Excess and Surplus Group, which consists of two distinct business units:
(a) Specialty Excess and Umbrella (SEU) focuses on umbrella and excess liability business for retail
agents and brokers, where other insurance companies are providing the primary coverage. This
group also provides coverages in the case where other Company business groups prefer to
outsource the underwriting of umbrella and excess business based on the expertise and/or limit
capacity of SEU. The coverages underwritten are typically commercial auto, general liability and
product liability. Umbrella coverage may also be underwritten over a company that retains risk or
has a self-insured retention, instead of a scheduled underlying policy.
(b) Excess & Surplus Lines (E&S Lines) offers mono-line umbrella and excess coverage where the
Company does not write the primary casualty coverage, or where other business groups within the
Company prefer to outsource the underwriting of umbrella and excess business based on the
expertise and/or limit capacity of E&S Lines. Business is written on a non-admitted basis through
established wholesalers. The coverages typically underwritten include commercial auto, general
liability and product liability.
•Discover Re principally provides commercial auto liability, general liability, workers’ compensation and
property coverages. It serves retail brokers and insureds that utilize the alternative risk transfer market.
Alternative risk transfer techniques are typically utilized by sophisticated insureds that are financially
able to assume a substantial portion of their own losses.
•Personal Catastrophe Risk underwrites personal property coverages in certain states exposed to
earthquakes and hurricanes, including principally California, Texas and Florida. As with the Company’s
commercial catastrophe risk coverages underwritten in the Commercial segment, a single loss event
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