Travelers 2011 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) 2011 2010 2009 2011
By market:
Select Accounts ................................ $ 2,784 $ 2,718 $ 2,756 24.5%
Commercial Accounts ............................ 2,890 2,576 2,493 25.5
National Accounts .............................. 782 806 902 6.9
Industry-Focused Underwriting ..................... 2,407 2,299 2,279 21.2
Target Risk Underwriting ......................... 1,587 1,573 1,568 14.0
Specialized Distribution ........................... 880 872 889 7.8
Total Business Insurance Core .................... 11,330 10,844 10,887 99.9
Business Insurance Other ......................... 10 13 15 0.1
Total Business Insurance by market ................ $11,340 $10,857 $10,902 100.0%
By product line:
Workers’ compensation ........................... $ 2,959 $ 2,586 $ 2,486 26.1%
Commercial automobile .......................... 1,955 1,910 1,927 17.2
Property ...................................... 1,595 1,641 1,727 14.1
General liability ................................ 1,705 1,726 1,829 15.0
Commercial multi-peril ........................... 3,096 2,995 2,933 27.3
Other ........................................ 30 (1) — 0.3
Total Business Insurance by product line ............ $11,340 $10,857 $10,902 100.0%
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 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 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.
The automated underwriting platform has significantly streamlined the agent desktop underwriting
process and, as a result, has allowed the Company to expand the number of distributors affiliated with
Select Accounts.
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