Travelers 2006 Annual Report Download - page 30

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team of employees responsible for working with the agent on business plan development, marketing, and
overall growth and profitability. The Company uses agency level management information to analyze and
understand results and to identify problems and opportunities.
The Personal Insurance products sold through additional marketing channels utilize the same quote
and issuance systems discussed previously and exceptions are underwritten by the Company’s employees.
Underwriters work with Company management on business plan development, marketing, and overall
growth and profitability. Channel-specific productionand claim information is used to analyze results and
identify problems and opportunities.
Product Lines
The primary coverages in Personal Insurance are personal automobile and homeowners insurance
sold to individuals. Personal Insurance had approximately 7.1 million policies in force at December 31,
2006.
Personal Automobile provides coverage for liability to others for both bodily injury and property
damage and for physical damage to an insured’s own vehicle from collision and various other perils. In
addition, many states require policies to provide first-party personal injury protection, frequently referred
to as no-fault coverage.
Homeowners andOther provides protection against losses to dwellings and contents from a wide
variety of perils, as well as coverage for liability arising from ownership or occupancy. The Company writes
homeowners insurance for dwellings, condominiums and rental property contents. The Company also
writes coverage for personal watercraft, personal articles such as jewelry, andumbrella liability protection.
Net Retention Policy
The following discussion reflects the Company’s retention policy as of January 1, 2007. Personal
Insurance retains the first $5 million of umbrella policies and purchases facultative reinsurance for limits
over $5 million. For personal property insurance, there is a $6 million maximum retention per risk. The
Company also utilizes facultative reinsurance to provide additional limits capacity or to reduce retentions
on an individual risk basis. The Company may also retain amounts greater than thosedescribed herein
based upon the individual characteristics of the risk