Travelers 2014 Annual Report Download - page 12

Table of Contents
terrorism. Aviation provides coverage for worldwide aviation risks including physical damage and liabilities for airline, aerospace,
general aviation, aviation war and space risks. Personal accident provides financial protection in the event of death or disablement
due to accidental bodily injury, while kidnap & ransom provides financial protection against kidnap, hijack, illegal detention and
extortion. While the covered hazards may be similar to those in the U.S. market, the different legal environments can make the
product risks and coverage terms potentially very different from those the Company faces in the United States.
Net Retention Policy Per Risk
The following discussion reflects the Company's retention policy with respect to the Business and International Insurance segment as of
January 1, 2015. For third
- party liability, Business and International Insurance generally limits its net retention, through the use of reinsurance, to a
maximum of $18.8 million per insured, per occurrence. For property exposures, Business and International Insurance generally limits its net retained
amount per risk to $20.0 million per occurrence, after reinsurance. Business and International Insurance generally retains its workers' compensation
exposures. Reinsurance treaties often have aggregate limits or caps which may result in larger net per
- risk retentions if the aggregate limits or caps
are reached. Business and International Insurance utilizes facultative reinsurance to provide additional limits capacity or to reduce retentions on an
individual risk basis. Business and International Insurance 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 Business and International Insurance's direct written premiums for the year ended
December 31, 2014:
11
Location
% of
Total
Domestic:
California
11.1
%
New York
7.4
Texas
6.7
Illinois
4.5
Pennsylvania
3.4
Florida
3.4
New Jersey
3.4
Massachusetts
3.0
All other domestic(1)
44.0
Total domestic
86.9
International:
Canada
9.0
All other international(1)
4.1
Total international
13.1
Total Business and International Insurance
100.0
%
(1) No other single state or country accounted for 3.0% or more of the Business and International Insurance segment's
direct written premiums in 2014.