Travelers 2008 Annual Report Download - page 26

caps which may result in larger net per risk retentions if the aggregate limits or caps are reached. The
Company utilizes facultative reinsurance to provide additional limits capacity or to reduce retentions on
an individual risk basis. The Company may also retain amounts greater than those described herein
based upon the individual characteristics of the risk.
Geographic Distribution
The following table shows the geographic distribution of Financial, Professional & International’s
direct written premiums for the states that accounted for the majority of premium volume for the year
ended December 31, 2008:
% of
State Total
California .................................................. 5.9%
New York ................................................. 5.6
Texas ..................................................... 4.5
Florida ................................................... 3.5
All other domestic(1) ......................................... 43.2
Total domestic ............................................. 62.7
Total international .......................................... 37.3
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 2008 by the Financial, Professional & International
Insurance segment.
Competition
The competitive landscape in which Bond & Financial Products 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.
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