Travelers 2013 Annual Report Download - page 28

The Personal Insurance segment writes the following types of coverages:
•Personal Automobile provides coverage for liability to others for both bodily injury and property
damage, uninsured motorist protection, and for physical damage to an insured’s own vehicle
from collision, fire, flood, hail and theft. In addition, many states require policies to provide
first-party personal injury protection, frequently referred to as no-fault coverage.
•Homeowners and Other provides protection against losses to dwellings and contents from a
variety of perils (excluding flooding) as well as coverage for personal liability. The Company
writes homeowners insurance for dwellings, condominiums and tenants, and rental properties.
The Company also writes coverage for boats and yachts and valuable personal items such as
jewelry, and also writes coverages for umbrella liability, identity fraud, and weddings and special
events.
Net Retention Policy
The following discussion reflects the Company’s retention policy with respect to the Personal
Insurance segment as of January 1, 2014. The Company generally retains its primary personal auto
exposures in their entirety. For personal property insurance, there is an $8.0 million maximum retention
per risk. Personal Insurance retains the first $10.0 million of umbrella policies and purchases facultative
reinsurance to provide additional limits capacity or to reduce retentions on an individual risk basis. The
Company may also retain amounts greater than those described herein based upon the individual
characteristics of the risk.
Geographic Distribution
The following table shows the geographic distribution of Personal Insurance’s direct written
premiums for the states that accounted for the majority of premium volume for the year ended
December 31, 2013:
% of
State Total
New York ................................................. 15.6%
Texas(1) ................................................... 7.6
Pennsylvania ................................................ 7.6
California .................................................. 6.2
New Jersey ................................................ 5.2
Florida ................................................... 5.0
Georgia ................................................... 4.5
Virginia ................................................... 4.2
Connecticut ................................................ 4.2
Massachusetts .............................................. 3.5
Maryland .................................................. 3.5
All others(2) ............................................... 32.9
Total ................................................... 100.0%
(1) The percentage for Texas includes business written by the Company through a fronting
agreement with another insurer.
(2) No other single state accounted for 3.0% or more of the total direct written premiums
written in 2013 by the Personal Insurance segment.
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