Travelers 2004 Annual Report Download - page 21

may produce heavy losses under a number of policies. The Company attempts to manage the risk to
which it is exposed through natural catastrophe reinsurance coverage.
International Specialty includes coverages marketed and underwritten to several specialty customer groups
within the United Kingdom, Canada and the Republic of Ireland, the Company’s participation in Lloyd’s, and the
Global Underwriting business group.
Specialty’s International Operations are located in the United Kingdom, Canada and the Republic of
Ireland, where it offers specialized insurance and risk management services to several specialty customer groups,
including those in the technology, public services, and financial and professional services industry sectors. The
Company’s international operations primarily underwrite employers’ liability (similar to workers’ compensation
coverage in the United States), public and product liability (the equivalent of general liability), professional
indemnity (similar to directors and officers or errors and omissions coverage), motor (similar to automobile
coverage in the United States) and property.
The Global Underwriting business group underwrites “home-foreign” business, representing coverage for a
U.S. organization’s property-liability exposures in a foreign country, and “reverse-flow” business, which
involves coverage of a foreign organization’s property or liability exposures located in the United States, as part
of a global program.
At Lloyd’s, Specialty underwrites four principal lines of business—aviation, marine, global property and
personal lines—through Syndicate 5000, for which the Company provides 100% of the capital. During the
second half of 2004, the Company made a decision to exit certain portions of the personal lines business. In early
2005, the Company sold the right to renew this business as well as the operating companies that supported it.
Select Market and Product Information
The following table sets forth Specialty 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:
Bond ................................................... $1,136 $ 781 $ 630 23.7%
Construction ............................................ 846 474 408 17.6
Financial and Professional Services .......................... 631 ——13.2
Other .................................................. 1,287 ——26.9
Total Domestic Specialty .............................. 3,900 1,255 1,038 81.4
International Specialty ..................................... 894 3218.6
Total Specialty by market ............................. $4,794 $1,258 $1,040 100.0%
By product line:
General liability .......................................... $1,554 $ 332 $ 218 32.4%
Fidelity and surety ........................................ 905 531 468 18.9
Workers’ compensation .................................... 418 117 114 8.7
Commercial automobile ................................... 422 105 91 8.8
Property ................................................ 317 17 12 6.6
Commercial multi-peril .................................... 284 153 135 5.9
International ............................................. 894 3218.7
Total Specialty by product line ........................ $4,794 $1,258 $1,040 100.0%
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