Travelers 2005 Annual Report Download - page 156

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
144
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont inued)
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.
Net written premiums by market were as follows:
(for the year ended December 31, in millions) 2005 2004 2003
Commercial Accounts ............................... $4,386 $4,210 $ 3 ,251
Select Accounts..................................... 2,722 2,555 2,047
National Accounts .................................. 1,230 1,040 831
Total Commercial Core............................ 8,338 7,805 6,129
Commercial Other.................................. 91 506 733
Total Commercial................................ $8,429 $8,311 $ 6 ,862
Specialty
The Specialty segment was created upon the merger of TPC and SPC. It combined SPC’s specialty
operations, including SPC’s Bond and Constructionoperations, withTPC’s Bond and Construction
operations, which were included in TPC’s Commercial segment prior to the merger. The Specialty segment
provides a full range of standard and specialized insurance coverages and services through dedicated
underwriting, claims handling and risk managementgroups. The segment comprises two primary groups:
Domestic Specialty and International Specialty.
•Domestic Specialty includes several marketing and underwriting groups, each of which possesses
customer expertise and offers products and services to address its respective customers’ specific
needs. These groups include Financial and Professional Services, Bond, Construction, Technology,
Ocean Marine, Oil and Gas, Public Sector, Underwriting Facilities and Umbrella/Excess & Surplus
Group.
•International Specialty includes coverages marketed and underwritten to several specialty customer
groups within the United Kingdom, Canada and the Republic of Ireland and the Company’s
participation in Lloyd’s.
In November 2005, the Company sold its Personal Catastrophe Risk business, which had been
included in the Specialty segment. In accordance with terms of the agreement, the Company retained
responsibility for the pre-sale loss and loss adjustment expense reserves related to this business and
remains responsible for any changes in estimates in those reserves through a quota-share reinsurance
agreement. The impact of this transaction is not material to the Company’s ongoing operations.