Travelers 2005 Annual Report Download - page 14

2
tax-free to Citigroup, its stockholders and TPC. As part of the ruling process, Citigroup agreed to vote the
shares it continued toholdof TPC following the Citigroup Distribution pro rata with the shares held by the
public and to divest the remaining shares it holds within five years following the Citigroup Distribution.
After the merger, this undertaking also applies to shares of Company common stock.
At December 31, 2005 and 2004, Citigroup held for its own account 1.80% and 6.50% of the
Company’s outstanding common stock, respectively. At December 31, 2003, Citigroup held for its own
account 9.87% of TPC’s outstanding common stock.
The following discussionof the Company’s business is organized as follows: (i) a description of each of
the Company’s three business segments (Commercial, Specialty and Personal) andrelated services; (ii) a
description of Interest Expense and Other; and (iii) certain other information. For a summary of the
Company’s revenues, operating income (loss) and total assets by reportable business segments, see note 5
of notes to the Company’s consolidated financial statements.
PROPERTY-CASUALTY INSURANCE OPERATIONS
COMMERCIAL
The Commercial segment offers a broad array of property and casualty insurance and insurance-
related services to its clients. Commercial is organized into the following three marketing and underwriting
groups, each of which focuses on a particular client base and which collectively comprise Commercial’s
core operations:
•Commercial Accounts serves primarily mid-sized businesses for casualty products and large and mid-
sized businesses for property products. In addition to the traditional middle market, Commercial
Accounts includes seven units dedicated to unique business needs.
•Select Accounts serves small businesses and offers commercial multi-peril, property, general liability,
commercial auto and workers’ compensation insurance.
•National Accounts comprises three distinct business units. The largest provides casualty products
and services to large companies, with particular emphasis on workers’ compensation, general
liability and automobile liability. National Accounts also includes the commercial residual market
business, which primarily offers workers’ compensation products and services to the involuntary
market. In addition, National Accounts includes Discover Re, which provides unbundled property
and casualty insurance products to insureds who utilize programs such as self-insurance,
collateralized deductibles and captive reinsurers.
Commercial also includes the Special Liability Group (which manages the Company’s asbestos and
environmental liabilities); the assumed reinsurance, health care, and certain international and other runoff
operations; and policies written by the Company’s Gulf operation (Gulf), which was placed into runoff
during the second quarter of 2004. These operations are collectively referred to as Commercial Other.