Travelers 2008 Annual Report Download - page 17

Selected Market and Product Information
The following table sets forth Business Insurance net written premiums by market and product line
for the periods indicated. For a description of the markets and product lines referred to in the table,
see ‘‘—Principal Markets and Methods of Distribution’’ and ‘‘—Product Lines,’’ respectively.
% of Total
(for the year ended December 31, in millions) 2008 2007 2006 2008
By market:
Select Accounts ................................ $ 2,756 $ 2,711 $ 2,663 24.6%
Commercial Accounts ............................ 2,524 2,518 2,376 22.4
National Accounts .............................. 996 1,056 1,135 8.9
Industry-Focused Underwriting ..................... 2,396 2,301 2,196 21.4
Target Risk Underwriting ......................... 1,593 1,665 1,629 14.2
Specialized Distribution ........................... 939 1,015 1,022 8.4
Total Business Insurance Core .................... 11,204 11,266 11,021 99.9
Business Insurance Other ......................... 16 52 25 0.1
Total Business Insurance by market ................ $11,220 $11,318 $11,046 100.0%
By product line:
Commercial multi-peril ........................... $ 2,938 $ 3,066 $ 3,083 26.2%
Workers’ compensation ........................... 2,452 2,267 2,135 21.9
Commercial automobile .......................... 1,952 2,011 2,013 17.4
Property ...................................... 1,860 1,990 1,939 16.6
General liability ................................ 2,011 1,943 1,857 17.9
Other ........................................ 741 19 —
Total Business Insurance by product line ............ $11,220 $11,318 $11,046 100.0%
Principal Markets and Methods of Distribution
Business Insurance distributes its products through approximately 8,500 independent agencies and
brokers located throughout the United States that are serviced by approximately 100 field offices and
three customer service centers. Business Insurance continues to make significant investments in
enhanced technology utilizing internet-based applications to provide real-time interface capabilities with
independent agencies and brokers. Business Insurance builds relationships with well-established,
independent insurance agencies and brokers. In selecting new independent agencies and brokers to
distribute its products, Business Insurance considers, among other attributes, each agency’s or broker’s
financial strength, staff experience and strategic fit with its operating and marketing plans. Once an
agency or broker is appointed, Business Insurance carefully monitors its performance.
Select Accounts is a leading provider of property and casualty insurance products to small
businesses. It serves firms with generally fewer than 50 employees. Products offered by Select Accounts
are guaranteed cost policies, including packaged products covering property and liability exposures.
Products are sold through independent agents and brokers, who are often the same agents and brokers
that sell the Company’s Commercial Accounts and Personal Insurance products.
Select Accounts offers its independent agents a system for small businesses that helps them
connect all aspects of sales and service through a comprehensive service platform. Components of the
platform include agency automation capabilities and service centers that function as an extension of an
agency’s customer service operations, both of which are highly utilized by agencies. Agencies accounting
for approximately 43% of this group’s net written premium have chosen to take advantage of Select
Accounts’ service centers, which offer agencies a wide range of services, including coverage and billing
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