Travelers 2012 Annual Report Download - page 22

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 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, workers’ compensation, 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.
In addition, the Company owns 49.5% of the common stock of J. Malucelli Participa¸c˜ oes em
Seguros e Resseguros S.A. (JMalucelli), its joint venture in Brazil. JMalucelli is currently the market
leader in surety in Brazil based on market share, and commenced writing other property and casualty
insurance business in 2012. The Company’s investment in JMalucelli is accounted for using the equity
method and is included in ‘‘other investments’’ on the consolidated balance sheet.
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.
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