Travelers 2007 Annual Report Download - page 8

2007 Annual Report
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Travelers at a glance
Travelers offers a wide variety of property
and casualty insurance and surety products
and services to businesses, organizations
and individuals in the United States and in
selected international markets. In addition,
the company can meet insurance needs in
more than 90 countries worldwide through
our network of insurers. Products are dis-
tributed primarily through independent
insurance agents and brokers.
Travelers is organized into the following
business segments: Business Insurance;
Financial, Professional & International
Insurance; and Personal Insurance. For
more information about Travelers and its
products and services, visit the company’s
Web site, www.travelers.com.
Business Insurance
2007 net written premium: $11.3 billion
Business Insurance offers a broad array of property and casualty
insurance products and services to its clients, which range from
small “main street” businesses to Fortune® 100 corporations.
Business Insurance is organized into marketing and underwriting
groups focused on particular markets, industries or product lines.
Select Accounts markets packaged property and casualty cover-
ages to small businesses; Commercial Accounts markets tailored
insurance products and services to mid-sized businesses; and
National Accounts markets insurance and risk management ser-
vices to large companies. In addition, business units in the Target
Risk Underwriting, Industry-Focused Underwriting and Specialized
Distribution groups provide insurance products and services to
address large property, inland marine, ocean marine, equipment
breakdown and excess casualty risks and tailor coverage to complex
industries, including the oil & gas, technology, agriculture, trucking,
construction and public entity sectors, among others.
2007 highlights
Select Accounts expanded the availability of TravelersExpressSM, its
innovative quote-to-issue process, to 37 states and the District of
Columbia. The speed and ease of TravelersExpress, combined with
Select Accounts’ broad market offering, allows agents efficiently to
quote and insure a wide range of small business types. Also, Travelers’
appeal as a top U.S. business insurer was validated with the appoint-
ment of more than 800 new agencies.
Financial, Professional & International Insurance
2007 net written premium: $3.5 billion
Financial, Professional & International Insurance includes the Bond
& Financial Products business as well as International and Lloyd’s
businesses. Bond & Financial Products provides surety, management
liability, professional liability and crime coverages, primarily to U.S.-
based businesses. Property and casualty products are marketed on
an international basis through operations in the United Kingdom,
Republic of Ireland and Canada and at Lloyd’s of London.
2007 highlights
Bond & Financial Products enhanced its position as an industry leader
through innovative new product and service offerings. These included:
• Introduction of Advantage 500M for Public CompaniesSM
. In conjunc-
tion with the Travelers Executive Choice® for Public Companies policy,
the Directors & Officers (D&O) Liability coverage enhancements
afforded by Advantage 500M for Public Companies are specifically
designed for public companies with a market capitalization of
$500 million or less.
• Initiation of an electronic risk management newsletter for
lawyers that provides important information to more than 3,900
professional liability agents and policyholders.
• Launch of a risk management Web site developed specifically for
Travelers’ construction surety customers. The key component
includes a Contract Review Matrix, which assists contractors in
reviewing a construction contract by highlighting standard contract
provisions and linking them to explanations, examples and relevant
case law to identify potential risks.
• Rollout of the newly enhanced Cyber+ for Financial InstitutionsSM
product giving community banks protection for an array of
exposures that can occur when providing online services to their
customers, including the failure to protect their customers’ private
information and the inadvertent transmission of computer viruses.
• Award of a $4.2 million policyholder dividend to 1,076 members
of the Independent Community Bankers of America (ICBA). The 15
percent dividend is the result of efforts by participating member
banks in managing various exposures in the workplace and reducing
insurance claims.
In 2007, new initiatives and opportunities developed across
International:
• In the United Kingdom, opened regional underwriting offices in
Leeds and Manchester, and launched new property-casualty products
for Media & Entertainment, Offices and Marine Industries.
• In Ireland, broadened sales capabilities with the appointment of
two regional development executives and launched new products
for Entertainment, Offices and Contractors All Risks.
• In China, received approval for a Travelers Representative Office in
Shanghai. Authorization for the representative office is the first step
in a two- to three-year process towards obtaining a branch license
to sell insurance products and services to consumers in the People’s
Republic of China.
• In Canada, launched a number of new products including SelectOne
for Mutual Fund Independent Review Committees and a Mineral
Exploration package policy.
• At Lloyd’s, launched a new General Aviation business for risks
in the United States; purchased Galatea Underwriting Agencies
Limited, which specializes in marine liability insurance policies for
companies and individuals who service the shipping and transport
industries; and recruited a new Power & Utilities underwriting team.
In Shanghai, Travelers Syndicate 5000 joined Lloyd’s operation there
as one of the founding underwriting divisions. In addition, through
Lloyd’s Asia, Travelers opened a new service company in Singapore
to focus on Ports and Terminals, Marine and Energy business.