Travelers 2012 Annual Report Download - page 91

The consolidated loss and loss adjustment expense ratio of 64.9% in 2012 was 8.0 points lower
than the consolidated loss and loss adjustment expense ratio of 72.9% in 2011. Catastrophe losses
accounted for 8.3 points and 11.6 points of the 2012 and 2011 loss and loss adjustment expense ratios,
respectively. The 2012 and 2011 loss and loss adjustment expense ratios included 4.2 points and 3.2
points of benefit from net favorable prior year reserve development, respectively. The consolidated
2012 loss and loss adjustment expense ratio excluding catastrophe losses and prior year reserve
development (‘‘underlying loss and loss adjustment expense ratio’’) was 3.7 points lower than the 2011
ratio on the same basis, primarily reflecting the factors discussed above.
The consolidated underwriting expense ratio of 32.2% in 2012 was level with the consolidated
underwriting expense ratio of 32.2% in 2011.
The consolidated GAAP combined ratio of 105.1% in 2011 was 11.9 points higher than the
consolidated GAAP combined ratio of 93.2% in 2010.
The consolidated loss and loss adjustment expense ratio of 72.9% in 2011 was 11.9 points higher
than the loss and loss adjustment expense ratio of 61.0% in 2010. Catastrophe losses accounted for 11.6
points and 5.2 points of the 2011 and 2010 loss and loss adjustment expense ratios, respectively. The
2011 and 2010 loss and loss adjustment expense ratios included 3.2 points and 5.8 points of benefit
from net favorable prior year reserve development, respectively. The consolidated 2011 underlying loss
and loss adjustment expense ratio was 2.9 points higher than the 2010 ratio on the same basis,
reflecting the factors discussed above.
The consolidated underwriting expense ratio of 32.2% in 2011 was level with the underwriting
expense ratio in 2010.
Written Premiums
Consolidated gross and net written premiums were as follows:
Gross Written Premiums
(for the year ended December 31, in millions) 2012 2011 2010
Business Insurance ........................................ $13,111 $12,418 $11,891
Financial, Professional & International Insurance .................. 3,275 3,408 3,534
Personal Insurance ........................................ 7,923 8,061 7,877
Total ................................................ $24,309 $23,887 $23,302
Net Written Premiums
(for the year ended December 31, in millions) 2012 2011 2010
Business Insurance ........................................ $11,872 $11,340 $10,857
Financial, Professional & International Insurance .................. 2,981 3,102 3,211
Personal Insurance ........................................ 7,594 7,745 7,567
Total ................................................ $22,447 $22,187 $21,635
Gross and net written premiums in 2012 increased by 2% and 1%, respectively, over 2011. Gross
and net written premiums in 2011 both increased by 3% over 2010. Factors contributing to the changes
in gross and net written premiums in each segment in 2012 and 2011 as compared with the respective
prior year are discussed in more detail in the segment discussions that follow.
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