Travelers 2008 Annual Report Download - page 86

Further information regarding the nature of impairment charges in each year is included in the
‘‘Investment Portfolio’’ section later in this discussion.
Other Revenues
Other revenues in all periods presented primarily consist of premium installment charges. In 2007,
other revenues also reflected a $39 million loss related to the Company’s redemption of its 4.50%
convertible junior subordinated notes in April 2007, consisting of the redemption premium paid and the
write-off of remaining debt issuance costs. Other revenues in 2006 included a $42 million gain on the
redemption of the Company’s $593 million, 7.60% subordinated debentures.
Written Premiums
Consolidated gross and net written premiums were as follows:
Gross Written Premiums
(for the year ended December 31, in millions) 2008 2007 2006
Business Insurance ........................................ $12,580 $13,017 $13,047
Financial, Professional & International Insurance .................. 3,966 4,037 3,981
Personal Insurance ........................................ 7,291 7,144 7,011
Total ................................................ $23,837 $24,198 $24,039
Net Written Premiums
(for the year ended December 31, in millions) 2008 2007 2006
Business Insurance ........................................ $11,220 $11,318 $11,046
Financial, Professional & International Insurance .................. 3,468 3,465 3,393
Personal Insurance ........................................ 6,995 6,835 6,711
Total ................................................ $21,683 $21,618 $21,150
Afianzadora Insurgentes and Mendota generated combined gross and net written premiums of
$79 million and $74 million, respectively, in 2007, prior to their sale. Adjusting for the sale of these
operations in 2007, gross written premiums in 2008 declined 1% and net written premiums in 2008
increased by less than 1% compared with 2007. In the Business Insurance segment, net written
premiums decreased by 1% from 2007, despite strong business retention rates. Premium growth in
Industry-Focused Underwriting, Select Accounts and Commercial Accounts in 2008, which was
generally driven by strong business retention rates and new business volume, was largely offset by
premium declines in National Accounts, Target Risk Underwriting and Specialized Distribution which
primarily resulted from declines in renewal price changes. Net written premiums in the Financial,
Professional & International Insurance segment adjusted for the sale of Afianzadora Insurgentes
increased by 1% over 2007, largely driven by changes in the terms of certain reinsurance treaties that
resulted in a higher level of business retained in the Bond & Financial Products group. In the Personal
Insurance segment, net written premiums in 2008 adjusted for the sale of Mendota increased 3% over
2007, reflecting continued strong retention rates, renewal price increases and growth in new business
levels.
Afianzadora Insurgentes and Mendota generated combined gross and net written premiums of
$279 million and $265 million, respectively, in 2006. Adjusting for the impact of premium volume from
those operations in both years, the Company’s consolidated gross and net written premiums in 2007
increased 2% and 3%, respectively, over 2006. In Business Insurance, net written premium growth of
2% was concentrated in the Commercial Accounts, Select Accounts and Industry-Focused Underwriting
markets, primarily driven by strong business retention rates coupled with higher new business volume.
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