Travelers 2009 Annual Report Download - page 103

Written Premiums
Financial, Professional & International Insurance gross and net written premiums by market were
as follows:
Gross Written Premiums
(for the year ended December 31, in millions) 2009 2008 2007
Bond & Financial Products . . . . . . . . . . . . . . . . . . . . . . . . $2,262 $2,378 $2,480
International .................................. 1,451 1,588 1,557
Total Financial, Professional & International Insurance .$3,713 $3,966 $4,037
Net Written Premiums
(for the year ended December 31, in millions) 2009 2008 2007
Bond & Financial Products . . . . . . . . . . . . . . . . . . . . . . . . $2,040 $2,126 $2,123
International .................................. 1,245 1,342 1,342
Total Financial, Professional & International Insurance .$3,285 $3,468 $3,465
The Financial, Professional & International Insurance segment’s gross written premiums of
$3.71 billion in 2009 decreased 6% from 2008, and net written premiums of $3.29 billion in 2009
decreased 5% from 2008. The decline in gross and net written premiums was primarily attributable to
the unfavorable impact of foreign currency exchange rates in the International group. The remainder of
the decline was driven by the impact of the economic downturn on construction surety business volume
and underwriting actions taken in the professional liability component of Bond & Financial Products’
management liability business, partially offset by growth in Ireland.
In the Bond & Financial Products group (excluding the surety line of business, for which the
following are not relevant measures), business retention rates remained strong but decreased from
2008, primarily in professional liability. Renewal premium changes in 2009 increased slightly over 2008,
as the impact of slight positive renewal rate changes on written premiums was largely offset by reduced
insured exposures due to underwriting actions and lower levels of economic activity. New business
levels in 2009 were lower than in 2008.
In the International group (excluding the surety line of business, for which the following are not
relevant measures), business retention rates in 2009 declined from 2008, primarily due to underwriting
actions taken in the United Kingdom, Ireland and at the Company’s operations at Lloyd’s. Renewal
premium changes improved over 2008 and new business levels declined when compared with 2008.
Afianzadora Insurgentes generated gross and net written premiums of $30 million and $25 million,
respectively, in 2007. Adjusting for the sale of that operation in 2007, gross written premiums in 2008
declined 1% from 2007, whereas net written premiums increased 1% over 2007. The difference in 2008
gross and net written premium growth rates primarily reflected changes in the terms of certain of the
Company’s reinsurance treaties that resulted in a higher level of business retained in the Bond &
Financial Products group.
In the Bond & Financial Products group, net written premiums in 2008 increased 1% over 2007
(adjusted for the sale of Afianzadora Insurgentes), as the impact of the higher level of business
retained in 2008 was largely offset by a decline in premium volume due to competitive market
conditions and the economic downturn. In the Bond & Financial Products group (excluding the surety
line of business, for which the following are not relevant measures), business retention rates in 2008
remained strong and increased slightly over 2007. Renewal price changes in 2008 were slightly negative,
compared to an increase in the prior year, and new business levels were consistent with 2007.
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