Travelers 2009 Annual Report Download - page 90

Written Premiums
Consolidated gross and net written premiums were as follows:
Gross Written Premiums
(for the year ended December 31, in millions) 2009 2008 2007
Business Insurance........................................ $12,098 $12,580 $13,017
Financial, Professional & International Insurance . . . . . . . . . . . . . . . . . . 3,713 3,966 4,037
Personal Insurance........................................ 7,474 7,291 7,144
Total ................................................ $23,285 $23,837 $24,198
Net Written Premiums
(for the year ended December 31, in millions) 2009 2008 2007
Business Insurance........................................ $10,902 $11,220 $11,318
Financial, Professional & International Insurance . . . . . . . . . . . . . . . . . . 3,285 3,468 3,465
Personal Insurance........................................ 7,149 6,995 6,835
Total ................................................ $21,336 $21,683 $21,618
Gross and net written premiums in 2009 both decreased 2% from 2008. Overall, business retention
remained at high levels in 2009. Renewal premium changes remained stable as improving rate trends
offset the impact of lower coverage demands from existing policyholders due to general economic
conditions. New business volume declined slightly from 2008, as modest growth in the Business
Insurance segment was offset by lower new business volume in the Financial, Professional &
International Insurance and Personal Insurance segments. In Business Insurance, net written premiums
in 2009 declined 3% from 2008, driven by lower levels of economic activity in recent quarters that
impacted exposure changes at renewal, audit premium adjustments, policy endorsements and mid-term
cancellations. In Financial, Professional & International Insurance, net written premiums in 2009
decreased 5% from 2008, reflecting the unfavorable impact of foreign currency exchange rates and the
impact of the economic downturn on construction surety business volume. In the Personal Insurance
segment, net written premiums in 2009 increased 2% over 2008, reflecting continued strong retention
rates and renewal premium increases, particularly in the Homeowners and Other line of business.
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 and new business. 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.
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