Travelers 2011 Annual Report Download - page 25

Competition
The competitive landscape in which Bond & Financial Products operates is affected by many of
the same factors described previously for the Business Insurance segment. Competitors in this market
are primarily national property and casualty insurance companies that write most classes of business
using traditional products and pricing and, to a lesser extent, regional insurance companies and
companies that have developed niche programs for specific industry segments.
Bond & Financial Products underwrites and markets its products to national, mid-sized and small
businesses and organizations, as well as individuals. The Company believes that its reputation for timely
and consistent decision making, a nationwide network of local underwriting, claims and industry experts
and strong producer and customer relationships, as well as its ability to offer its customers a full range
of products, provides Bond & Financial Products an advantage over many of its competitors and
enables it to compete effectively in a complex, dynamic marketplace. The Company believes that the
ability of Bond & Financial Products to cross-sell its products to customers of the Business Insurance
and Personal Insurance segments provides additional competitive advantages for the Company.
International competes with numerous international and domestic insurers in the United Kingdom,
Canada and the Republic of Ireland. Companies compete on the basis of price, product offerings and
the level of claim and risk management services provided. The Company has developed expertise in
various markets in these countries similar to those served in the United States and provides both
property and casualty coverage for these markets.
At Lloyd’s, International competes with other syndicates operating in the Lloyd’s market as well as
international and domestic insurers in the various markets where the Lloyd’s operation writes business
worldwide. Competition is again based on price, product and service. The Company focuses on lines it
believes it can underwrite effectively and profitably with an emphasis on short-tail insurance lines.
PERSONAL INSURANCE
The Company’s Personal Insurance segment writes a broad range of property and casualty
insurance covering individuals’ personal risks. The primary products of automobile and homeowners
insurance are complemented by a broad suite of related coverages.
Selected Product and Distribution Channel Information
The following table sets forth net written premiums for the Personal Insurance segment’s business
by product line for the periods indicated. For a description of the product lines referred to in the
following table, see ‘‘—Product Lines.’’ In addition, see ‘‘—Principal Markets and Methods of
Distribution’’ for a discussion of distribution channels for Personal Insurance’s product lines.
% of Total
(for the year ended December 31, in millions) 2011 2010 2009 2011
By product line:
Automobile ...................................... $3,788 $3,772 $3,629 48.9%
Homeowners and Other ............................. 3,957 3,795 3,520 51.1
Total Personal Insurance ........................... $7,745 $7,567 $7,149 100.0%
Principal Markets and Methods of Distribution
Personal Insurance products are distributed primarily through approximately 12,500 independent
agents located throughout the United States, supported by personnel in 16 marketing regions and seven
service centers. While the principal markets for Personal Insurance products continue to be in states
along the East Coast, California and Texas, the business continues to expand its geographic presence
across the United States.
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