Travelers 2009 Annual Report Download - page 192

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
commercial surety and fidelity bonds for construction and general commercial enterprises;
management liability for losses caused by the negligence or misconduct of directors and officers,
employee dishonesty, employment practices liability and fiduciary coverages for public
corporations, private companies and not-for-profit organizations; professional liability from
errors and omissions committed in the course of professional conduct or practice for a variety of
professionals including lawyers, design professionals and real estate agents; and professional and
management liability, property, auto and general liability and fidelity 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 of net written premiums in the year
ended December 31, 2007. 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. In addition, in the Republic of Ireland, the Company writes personal automobile
coverage and has recently started writing personal household coverages. International, through
its Lloyd’s syndicate (Syndicate 5000), for which the Company provides 100% of the capital,
underwrites through five principal business units—marine, global property, accident & special
risks, power & utilities and aviation.
In the second quarter of 2009, results from the Company’s surety bond operation in Canada were
reclassified from the Bond & Financial Products group to the International group to reflect the manner
in which this operation is now managed. All prior period amounts were restated to reflect this
reclassification between groups within the segment. The reclassification had no impact on previously
reported results for the Financial, Professional & International Insurance segment in total.
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.
Homeowners policies are available for dwellings, condominiums, mobile homes and rental property
contents. Protection against losses to dwellings and contents from a wide variety of perils (excluding
flooding) is included in these policies, as well as coverage for liability arising from ownership or
occupancy.
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