Travelers 2005 Annual Report Download - page 8

62005 Annual Report 62005 Annual Report
St. Paul Travelers at a Glance
Commercial Net Written Premium: $8.4 billion
St. Paul Travelers offers a wide range of property and casualty insurance products and services to
businesses, organizations and individuals, primarily in the United States and in selected international
markets. St. Paul Travelers is organized into the following business segments: Commercial, Specialty
and Personal.
Commercial and Specialty products are distributed primarily through a network of approximately
6,300 independent agents and brokers, and Personal products are distributed primarily through
approximately 7,800 independent agents.
For more information about St. Paul Travelers and its products and services, visit the company’s
Web site, www.stpaultravelers.com.
Commercial offers a broad array of property and
casualty insurance and insurance-related services to
its clients, which range from small “main street” busi-
nesses to Fortune 100™corporations. Commercial is
organized into marketing and underwriting groups with
a specialized focus on a particular market or product.
These groups include Select Accounts, which markets
packaged property and casualty coverages to small
businesses; Commercial Accounts, which markets
tailored insurance products and services to mid-sized
businesses; and National Accounts, which markets
insurance and risk management services to large com-
panies and also provides claims administration for state-
mandated workers’ compensation pools. In addition,
specialized units are dedicated to underwriting large
property schedules and coverages marketed to national
associations, and to serving the needs of the inland
marine, agriculture, commercial trucking, and boiler
and machinery markets.
2005 Highlights
• Select Accounts introduced its new exposure-based
definition for underwriting accounts and substantially
expanded its product platform. The new underwriting
definition greatly facilitates agents’ processing of
new business. The newly expanded product platform
includes the addition of 400 new classes of business,
expanded coverage options and the introduction of
new professional endorsements.
• Commercial Accounts partnered with several business
units to develop new business and expand underwriting
and service capabilities; introduced a new program for
commercial wineries in conjunction with Agribusiness;
developed new products for manufacturers and distrib-
utors who import products from overseas; implemented
a small deductible program for retail and real estate
companies; and expanded claim and risk control services
for larger middle market customers.
Boiler & Machinery began offering Equipment
Breakdown coverage on all property policies under-
written through Commercial and Specialty. The
coverage protects against mechanical and electrical
losses at policyholder businesses and eliminates
certain gaps in coverage.
Northland Insurance, a subsidiary of St. Paul
Travelers that is focused on the transportation
industry, announced the national launch of two non-
fleet coverage enhancements to its transportation
insurance offerings: Deluxe Coverage Endorsement,
providing coverage extensions that can minimize
deductibles and extra expenses resulting from a loss,
and Family Emergency Travel Coverage, a travel cost
reimbursement program for family members of an
injured or deceased trucker.
• National Accounts continued to emphasize the deliv-
ery of value-added services to its customers. The unit’s
value proposition is an integrated set of claim, risk
control and management information best practices and
tools that can drive significant reductions in customers’
loss costs. This payout-driven model is important to
the large-risk market, as most customers retain pre-
dictable loss activity, only transferring risk to St. Paul
Travelers in excess of their targeted retention levels.
Given that loss costs frequently represent 75 percent
of customers’ total cost of risk, National Accounts
will continue to invest in services to manage loss costs.