Travelers 2011 Annual Report Download - page 188

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
•Global Underwriting provides insurance to foreign organizations with property and liability
exposures located in the United States (reverse-flow), as part of a global program.
•Specialized Distribution. The following units market and underwrite their products to customers
predominantly through licensed wholesale, general and program agents that manage customers’
unique insurance requirements.
•Northland provides insurance coverage for the commercial transportation industry, as well as
commercial liability and package policies for small, difficult to place specialty classes of
commercial business on an admitted or excess and surplus lines basis.
•National Programs offers tailored property and casualty programs on an admitted basis for
customers with common risk characteristics or coverage requirements. Programs available
include those for entertainment, architects and engineers, equipment rental, golf services
and owners of franchised businesses.
Business Insurance also includes the Special Liability Group (which manages the Company’s
asbestos and environmental liabilities) and the assumed reinsurance and certain international and other
runoff operations, which collectively are referred to as Business Insurance Other.
Financial, Professional & International Insurance
The Financial, Professional & International Insurance segment includes surety and financial
liability coverages, which primarily use credit-based underwriting processes, as well as property and
casualty products that are primarily marketed on a domestic basis in the United Kingdom, Canada and
the Republic of Ireland, and on an international basis through Lloyd’s. The segment includes the
following groups:
•Bond & Financial Products provides a wide range of customers with bond and insurance products
and risk management services. The range of coverages includes performance, payment and
commercial surety and fidelity bonds for construction and general commercial enterprises;
management liability coverages for losses caused by the actual or alleged negligence or
misconduct of directors and officers or employee dishonesty; employment practices liability
coverages and fiduciary coverages for public corporations, private companies and not-for-profit
organizations; professional liability coverage for actual or alleged errors and omissions
committed in the course of professional conduct or practice for a variety of professionals
including, among others, lawyers, design professionals and real estate agents; and professional
and management liability, property, auto and general liability and fidelity insurance for financial
institutions.
•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, among others, those in the technology, public services, and financial and professional
services industry sectors. 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.
On June 17, 2011, the Company acquired 43% of the common stock of J. Malucelli Participa¸c˜ oes
em Seguros e Resseguros S.A (‘‘JMalucelli’’). JMalucelli is currently the market leader in surety in
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