Travelers 2009 Annual Report Download - page 23

management liability, property, auto and general liability and fidelity insurance for financial
institutions, with a special focus on community banks.
•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.
Selected Market and Product Information
The following table sets forth Financial, Professional & International Insurance net written
premiums by market and product line for the periods indicated. For a description of the markets and
product lines referred to in the table, see ‘‘—Principal Markets and Methods of Distribution’’ and
‘‘—Product Lines,’’ respectively.
% of Total
(for the year ended December 31, in millions) 2009 2008 2007 2009
By market:
Bond & Financial Products . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,040 $2,126 $2,123 62.1%
International ..................................... 1,245 1,342 1,342 37.9
Total Financial, Professional & International Insurance by
market ...................................... $3,285 $3,468 $3,465 100.0%
By product line:
Fidelity and surety................................. $1,000 $1,070 $1,046 30.4%
General liability................................... 906 921 942 27.6
International ..................................... 1,245 1,342 1,342 37.9
Other .......................................... 134 135 135 4.1
Total Financial, Professional & International Insurance by
product line .................................. $3,285 $3,468 $3,465 100.0%
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 for the year ended
December 31, 2007. The impact of this transaction was not material to the Company’s results of
operations or financial position.
Principal Markets and Methods of Distribution
Within the Financial, Professional & International Insurance segment, Bond & Financial Products
distributes the vast majority of its products in the United States through approximately 5,700 of the
same independent agencies and brokers that distribute the Business Insurance segment’s products.
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