Travelers 2010 Annual Report Download - page 17

Selected Market and Product Information
The following table sets forth Business 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) 2010 2009 2008 2010
By market:
Select Accounts ................................ $ 2,718 $ 2,756 $ 2,756 25.1%
Commercial Accounts ............................ 2,576 2,493 2,524 23.7
National Accounts .............................. 806 902 996 7.4
Industry-Focused Underwriting ..................... 2,299 2,279 2,396 21.2
Target Risk Underwriting ......................... 1,573 1,568 1,593 14.5
Specialized Distribution ........................... 872 889 939 8.0
Total Business Insurance Core .................... 10,844 10,887 11,204 99.9
Business Insurance Other ......................... 13 15 16 0.1
Total Business Insurance by market ................ $10,857 $10,902 $11,220 100.0%
By product line:
Workers’ compensation ........................... $ 2,586 $ 2,486 $ 2,452 23.8%
Commercial automobile .......................... 1,910 1,927 1,952 17.6
Property ...................................... 1,641 1,727 1,860 15.1
General liability ................................ 1,726 1,829 2,011 15.9
Commercial multi-peril ........................... 2,995 2,933 2,938 27.6
Other ........................................ (1) —7—
Total Business Insurance by product line ............ $10,857 $10,902 $11,220 100.0%
Principal Markets and Methods of Distribution
Business Insurance distributes its products through approximately 10,500 independent agencies and
brokers located throughout the United States that are serviced by approximately 120 field offices and
three customer service centers. Business Insurance continues to make significant investments in
enhanced technology utilizing internet-based applications to provide real-time interface capabilities with
independent agencies and brokers. Business Insurance builds relationships with well-established,
independent insurance agencies and brokers. In selecting new independent agencies and brokers to
distribute its products, Business Insurance considers, among other attributes, each agency’s or broker’s
profitability, financial strength, staff experience and strategic fit with the Company’s operating and
marketing plans. Once an agency or broker is appointed, Business Insurance carefully monitors its
performance. The majority of products offered by the Select Accounts, Commercial Accounts, Industry-
Focused Underwriting and Target-Risk Underwriting groups are distributed through a common base of
independent agents and brokers, many of whom also sell the Company’s Personal Insurance products.
Additionally, the Industry-Focused Underwriting and Target Risk Underwriting groups may underwrite
business with agents that specialize in servicing the needs of certain of the industries served by these
groups.
Select Accounts is a leading provider of property and casualty insurance products to small
businesses, generally with fewer than 50 employees. Products offered by Select Accounts are
guaranteed-cost policies, including packaged products covering property and liability exposures. Each
small business risk is independently evaluated via an automated underwriting platform which in turn
enables agents to quote, bind and issue a substantial amount of small business risks at their desktop.
Risks with more complex characteristics are underwritten with the assistance of Company personnel.
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