Travelers 2007 Annual Report Download - page 180

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
•National Programs offers tailored property and casualty programs on an admitted basis for
customers with common risk characteristics or coverage requirements. Programs available
include those for entertainment, architects and engineers, equipment rental and golf
services.
Business Insurance 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; policies written by the Company’s Gulf operation (Gulf), which is in
runoff; and the Company’s Personal Catastrophe Risk operation, which was sold in November 2005.
These are collectively referred to as Business Insurance Other. The Personal Catastrophe Risk
operation accounted for the majority of net written premiums in Business Insurance Other in 2005.
Financial, Professional & International Insurance
The Financial, Professional & International Insurance segment includes surety and financial
liability coverages, which require a primarily credit-based underwriting process, as well as property and
casualty products that are primarily marketed on an international basis. The segment includes the
following groups:
•Bond & Financial Products provides a wide range of customers with bond and insurance products
and risk management services. The range of coverages includes surety and fidelity bonds for
construction and general commercial enterprises; professional liability and management liability
for public corporations, private companies and not-for-profit organizations for losses caused by
the negligence or misconduct of named directors and officers; professional liability for a variety
of professionals, such as lawyers, design professionals and real estate agents for liability from
errors and omissions committed in the course of professional conduct or practice; and a full
range of property, auto, liability, fidelity and professional/management liability insurance for
financial institutions, with a special focus on community banks.
In March 2007, the Company completed the sale of its Mexican surety subsidiary, Afianzadora
Insurgentes, S.A. de C.V., which accounted for $25 million, $78 million and $78 million of net
written premiums in the years ended December 31, 2007, 2006 and 2005, respectively. The
impact of this transaction was not material to the Company’s results of operations or financial
position.
•International includes business written through domestic operations in the United Kingdom,
Canada and the Republic of Ireland and business written as a corporate member at Lloyd’s.
International, through its operations in the United Kingdom, Canada and Ireland, offers
specialized insurance and risk management services to several customer groups, including those
in the technology, public services, and financial and professional services industry sectors. These
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 professional liability coverage), motor (similar to automobile
coverage in the United States) and property exposures. International, through its Lloyd’s
syndicate (Syndicate 5000), for which the Company provides 100% of the capital, underwrites
five principal lines of business—aviation, marine, global property, accident and special risks, and
power and utilities.
168