Travelers 2012 Annual Report Download - page 96

increased by 2% over 2010. Business retention rates remained strong and were consistent with 2010.
Renewal premium changes in 2011 improved over 2010 due to growth in both renewal rate changes and
insured exposures. New business volume in 2011 declined from 2010.
Commercial Accounts. Net written premiums of $3.10 billion in 2012 increased by 7% over 2011.
Business retention rates remained strong but were lower than in 2011. Renewal premium changes
remained positive in 2012 and increased over 2011, primarily due to renewal rate increases. New
business volumes in 2012 declined compared with 2011. Net written premiums in 2012 were favorably
impacted by positive audit premium adjustments (which were higher than in 2011). Net written
premiums of $2.89 billion in 2011 increased by 12% over 2010. The increase was partially due to the
benefit of positive audit premium adjustments, compared with negative adjustments in 2010. Business
retention rates remained strong, decreasing slightly in 2011 compared with 2010. Renewal premium
changes were positive in 2011 and increased over 2010, primarily driven by positive renewal rate
changes. New business volume in 2011 declined slightly from 2010.
National Accounts. Net written premiums of $907 million in 2012 increased by 16% over 2011.
Business retention rates remained high in 2012 and were level with 2011. Renewal premium changes
were positive and increased over 2011, driven by payroll exposure growth. New business volumes in
2012 also increased over 2011. In addition, growth in workers’ compensation residual market pools
contributed to premium growth in 2012. Net written premiums of $782 million in 2011 decreased by
3% from 2010, primarily reflecting negative retrospective premium adjustments related to prior year
policies. Business retention rates remained high in 2011 and increased slightly over 2010, while renewal
premium changes in 2011 also increased over 2010. New business volume in 2011 declined slightly from
2010.
Industry-Focused Underwriting. Net written premiums of $2.55 billion in 2012 increased by 6%
over 2011. Premium increases in 2012 were driven by growth in the Construction, Oil & Gas and
Technology business units. Business retention rates in 2012 remained strong and were virtually level
with 2011. Renewal premium changes remained positive in 2012 and increased over 2011, primarily due
to renewal rate increases. New business volume in 2012 declined from 2011. Net written premiums of
$2.41 billion in 2011 increased by 5% over 2010, primarily driven by growth in Construction, Oil & Gas
and Technology.
Target Risk Underwriting. Net written premiums of $1.67 billion in 2012 increased by 5% over
2011. Premium increases in 2012 were concentrated in the National Property and Inland Marine
business units. Business retention rates in 2012 remained strong but declined from 2011. Renewal
premium changes remained positive in 2012 and increased over 2011, primarily due to renewal rate
increases. New business volume in 2012 declined from 2011. Net written premiums of $1.59 billion in
2011 increased slightly over 2010, as premium growth in Inland Marine and Excess Casualty was largely
offset by a decline in National Property.
Specialized Distribution. Net written premiums of $870 million in 2012 decreased by 1% from
2011. Premium decreases in the Northland business unit were largely offset by premium growth in the
National Programs business unit. Business retention rates in 2012 remained strong but declined from
2011. Renewal premium changes remained positive in 2012 and increased over 2011, primarily due to
renewal rate increases. New business volume in 2012 declined from 2011. Net written premiums of
$880 million in 2011 increased slightly over 2010, driven by growth in the National Programs business
unit.
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