Travelers 2007 Annual Report Download - page 26

Geographic Distribution
The following table shows the geographic distribution of Financial, Professional & International’s
direct written premiums for the states, or for locations outside of the United States, that accounted for
the majority of premium volume for the year ended December 31, 2007:
% of
State Total
New York ................................................. 5.9%
California .................................................. 5.7
Texas ..................................................... 4.3
Florida ................................................... 3.7
All other domestic(1) ......................................... 44.5
Total domestic ............................................. 64.1
Total international .......................................... 35.9
Total ................................................... 100.0%
(1) No other single state within the United States accounted for 3.0% or more of the total
direct written premiums written in 2007 by the Financial, Professional & International
Insurance segment.
Competition
The competitive landscape in which the Financial, Professional & International Insurance segment
operates is affected by many of the same factors described previously for the Business Insurance
segment. Competitors in this market are primarily national property and casualty insurance companies
willing to write most classes of business using traditional products and pricing and, to a lesser extent,
regional insurance companies and companies that have developed niche programs for specific industry
segments.
Bond & Financial Products underwrites and markets its products to national, mid-sized and small
businesses and organizations, as well as individuals, and distributes them through both national and
wholesale brokers, regional brokers and retail agents. Its reputation for timely and consistent decision
making, a nationwide network of local underwriting, claims and industry experts and strong producer
and customer relationships, as well as its ability to offer its customers a full range of products, provides
Bond & Financial Products an advantage over many of its competitors and enables it to compete
effectively in a complex, dynamic marketplace. The ability of Bond & Financial Products to cross-sell
its products to customers of the Business Insurance and Personal Insurance segments provides
additional competitive advantages for the Company.
International competes with numerous international and domestic insurers in the United Kingdom,
Canada and the Republic of Ireland. Companies compete on the basis of price, product offerings and
the level of claim and risk management services provided. The Company has developed expertise in
various markets in these countries similar to those served in the United States and provides both
property and casualty coverage for these markets. Products are generally distributed through a
relatively small broker base whose customer groups align with the Company’s targeted markets.
At Lloyd’s, International competes with other syndicates operating in the Lloyd’s market as well as
international and domestic insurers in the various markets where the Lloyd’s operation writes business
worldwide. Lloyd’s syndicates are increasingly capitalized by corporate capital, much of which is
provided by large international insurance enterprises. Competition is again based on price and product
offerings. The Company focuses on lines it believes it can underwrite effectively and profitably with an
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