Travelers 2014 Annual Report Download - page 14

Table of Contents
At Lloyd's, International competes with other syndicates operating in the Lloyd's market as well as international and domestic insurers in the
various markets where the Lloyd's operation writes business worldwide. Competition is again based on price, product and service. The Company
focuses on lines it believes it can underwrite effectively and profitably with an emphasis on short
- tail insurance lines.
BOND & SPECIALTY INSURANCE
The Bond & Specialty Insurance segment provides surety, crime, management and professional liability coverages and related risk
management services to a wide range of primarily domestic customers, utilizing various degrees of financially
- based underwriting approaches. 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 and design professionals; and professional and management liability, property,
workers' compensation, auto and general liability and fidelity insurance for financial institutions.
Selected Market and Product Information
The following table sets forth Bond & Specialty Insurance net written premiums by product line for the periods indicated. For a description of
the product lines referred to in the table, see "Principal Markets and Methods of Distribution" and "Product Lines," respectively.
Principal Markets and Methods of Distribution
Bond & Specialty Insurance distributes the vast majority of its products in the United States through approximately 6,000 of the same
independent agencies and brokers that distribute the Business and International Insurance segment's products in the U.S. The Bond & Specialty
Insurance segment, in conjunction with the Business and International Insurance segment, continues to make investments in enhanced technology
utilizing internet
- based applications to provide real - time interface capabilities with its independent agencies and brokers. Bond & Specialty
Insurance builds relationships with well
- established, independent insurance agencies and brokers. In selecting new independent agencies and
brokers to distribute its products, Bond & Specialty Insurance considers, among other attributes, each agency's or broker's profitability, financial
stability, staff experience and strategic fit with its operating and marketing plans. Once an agency or broker is appointed, its ongoing performance
is closely monitored.
Pricing and Underwriting
Bond & Specialty Insurance utilizes underwriting, claims, engineering, actuarial and product development disciplines for specific accounts and
industries, in conjunction with extensive amounts of proprietary data gathered and analyzed over many years, to facilitate its risk selection process
and develop pricing parameters. The Company utilizes both standard industry forms and proprietary forms for the insurance policies it issues.
13
(for the year ended December 31, in millions)
2014
2013
2012
% of Total
2014
Fidelity and surety
$
963
$
918
$
895
45.8
%
General liability
961
934
859
45.7
Other
179
178
170
8.5
Total Bond & Specialty Insurance
$
2,103
$
2,030
$
1,924
100.0
%