Travelers 2011 Annual Report Download - page 22

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 as a corporate member of 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
Brazil based on market share. The Company’s investment in JMalucelli is accounted for using the
equity method and is included in ‘‘other investments’’ on the consolidated balance sheet. The Company
has an option to increase its interest up to 49.9% of the common stock of J. Malucelli within
18 months of the closing date.
Selected Market and Product Information
The following table sets forth Financial, Professional & International 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:
Bond & Financial Products ........................... $1,953 $1,981 $2,040 63.0%
International ..................................... 1,149 1,230 1,245 37.0
Total Financial, Professional & International Insurance by
market ...................................... $3,102 $3,211 $3,285 100.0%
By product line:
Fidelity and surety ................................. $ 957 $ 993 $ 996 30.9%
General liability ................................... 836 834 886 27.0
International ..................................... 1,149 1,230 1,245 37.0
Other .......................................... 160 154 158 5.1
Total Financial, Professional & International Insurance by
product line .................................. $3,102 $3,211 $3,285 100.0%
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