Travelers 2010 Annual Report Download - page 102

Agency Written Premiums
Gross and net written premiums by product line were as follows for the Personal Insurance
segment’s Agency business, which comprises business written through agents, brokers and other
intermediaries and represents almost all of the segment’s gross and net written premiums:
Gross Written Premiums
(for the year ended December 31, in millions) 2010 2009 2008
Agency Automobile ............................ $3,720 $3,610 $3,680
Agency Homeowners and Other ................... 4,060 3,809 3,599
Total Agency Personal Insurance ................. $7,780 $7,419 $7,279
Net Written Premiums
(for the year ended December 31, in millions) 2010 2009 2008
Agency Automobile ............................ $3,698 $3,586 $3,651
Agency Homeowners and Other ................... 3,772 3,508 3,333
Total Agency Personal Insurance ................. $7,470 $7,094 $6,984
Gross and net Agency written premiums in 2010 both increased 5% over the respective totals in
2009. In 2009, gross and net Agency written premiums both increased by 2% over the respective 2008
totals.
In 2010, net written premiums in the Agency Automobile line of business increased 3% over 2009,
primarily reflecting the impact of the introduction of twelve-month policy terms in certain markets in
2010. Excluding the impact of the change in policy terms in 2010, Agency Automobile net written
premiums were virtually level with 2009. Business retention rates remained strong and new business
levels increased over 2009. Renewal premium changes were positive in 2010 but declined slightly from
2009.
In 2010, net written premiums in the Agency Homeowners and Other line of business increased
8% over 2009, primarily driven by increases in renewal premium changes, business retention rates and
new business levels.
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 2009, net written premiums in the Agency Homeowners and Other line of business 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.
For its Agency business, the Personal Insurance segment had approximately 7.6 million and
7.4 million active policies at December 31, 2010 and 2009, respectively. In the Agency Automobile line
of business, active policies at December 31, 2010 increased 2% over the same date in 2009. Active
policies in the Agency Homeowners and Other line of business at December 31, 2010 grew by 3% over
the same date in 2009.
Interest Expense and Other
(for the year ended December 31, in millions) 2010 2009 2008
Operating loss .................................. $(318) $(233) $(257)
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