Travelers 2009 Annual Report Download - page 107

Agency Written Premiums
Personal Insurance’s gross and net written premiums by product line were as follows for its Agency
business, which comprises business written through agents, brokers and other intermediaries, and
represents almost all of the Personal Insurance segment’s gross and net written premiums:
Gross Written Premiums
(for the year ended December 31, in millions) 2009 2008 2007
Agency Automobile ............................ $3,610 $3,680 $3,673
Agency Homeowners and Other . . . . . . . . . . . . . . . . . . . 3,809 3,599 3,471
Total Agency Personal Insurance ................. $7,419 $7,279 $7,144
Net Written Premiums
(for the year ended December 31, in millions) 2009 2008 2007
Agency Automobile ............................ $3,586 $3,651 $3,628
Agency Homeowners and Other . . . . . . . . . . . . . . . . . . . 3,508 3,333 3,207
Total Agency Personal Insurance ................. $7,094 $6,984 $6,835
Gross and net Agency written premiums in 2009 both increased by 2% over the comparable 2008
totals. In 2008, gross and net Agency written premiums also both increased 2% over the comparable
2007 totals. Mendota accounted for $49 million of both gross and net written premiums in 2007.
Adjusting for the sale of Mendota in 2007, gross and net written premiums in 2008 both increased 3%
over the 2007 totals.
In 2009, net written premiums in the Agency Automobile line of business decreased 2% from 2008.
The impact of increasing renewal premium changes was more than offset by declines in new business
volume and business retention rates compared with 2008. In the Agency Homeowners and Other line
of business, net written premiums in 2009 grew 5% over 2008, driven by increases in renewal premium
changes. New business volume was consistent with 2008 and business retention rates remained strong
and consistent with 2008.
In the Agency Automobile line of business, net written premiums in 2008 increased 2% over 2007,
adjusting for the sale of Mendota. Business retention rates in 2008 remained strong and were consistent
with 2007. Renewal price changes in 2008 remained positive and consistent with 2007. New business
levels in 2008 increased over 2007. In the Agency Homeowners and Other line of business, net written
premiums in 2008 grew 4% over 2007. Business retention rates in 2008 remained strong and were
consistent with 2007. Renewal price changes in 2008 remained positive but declined from 2007. New
business levels also remained strong and increased slightly over 2007.
For its Agency business, the Personal Insurance segment had approximately 7.4 million and
7.3 million active policies at December 31, 2009 and 2008, respectively. In the Agency Automobile line
of business, active policies at December 31, 2009 decreased 3% from the same date in 2008. Active
policies in the Agency Homeowners and Other line of business at December 31, 2009 grew by 3% over
the same date in 2008.
Interest Expense and Other
(for the year ended December 31, in millions) 2009 2008 2007
Operating loss .................................. $(233) $(257) $(209)
95