Travelers 2008 Annual Report Download - page 190

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
completed the sale of Unionamerica Holdings Limited (Unionamerica), which comprised its United
Kingdom-based runoff insurance and reinsurance businesses. The sale was not material to the
Company’s results of operations or financial position.
Financial, Professional & International Insurance
The Financial, Professional & International Insurance segment includes surety and financial
liability coverages, which primarily use credit-based underwriting processes, as well as property and
casualty products that are primarily marketed on a domestic basis in the United Kingdom, the Republic
of Ireland and Canada, and on an international basis through Lloyd’s. 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 and $78 million of net written
premiums in the years ended December 31, 2007 and 2006, 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 the Republic of
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. International, through its Lloyd’s syndicate (Syndicate 5000), for which the Company
provides 100% of the capital, underwrites through five principal business units—aviation, marine,
global property, accident & special risks, and power & utilities.
Personal Insurance
The Personal Insurance segment writes virtually all types of property and casualty insurance
covering personal risks. The primary coverages in Personal Insurance are automobile and homeowners
insurance sold to individuals. These products are distributed through independent agents, sponsoring
organizations such as employee and affinity groups, joint marketing arrangements with other insurers
and direct marketing.
Automobile policies provide 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.
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