Travelers 2014 Annual Report Download - page 6

Table of Contents
underwriting risks of business in natural catastrophe
- prone areas and target risk areas for conventional terrorist attacks (defined as attacks other
than nuclear, biological, chemical or radiological events). The Company relies, in part, upon these analyses to make underwriting decisions
designed to manage its exposure on catastrophe
- exposed business. For example, as a result of these analyses, the Company has limited the writing
of new property and homeowners business in some markets and has selectively taken underwriting actions on new and existing business. These
underwriting actions on new and existing business include tightened underwriting standards, selective price increases and changes to deductibles
specific to hurricane
- , tornado - , wind - and hail - prone areas. See "Item 7—Management's Discussion and Analysis of Financial Condition and
Results of Operations—Catastrophe Modeling" and "—Changing Climate Conditions." The Company also utilizes reinsurance to manage its
aggregate exposures to catastrophes. See "—Reinsurance."
Segment Realignment
On June 10, 2014, the Company announced a realignment of its management team, effective July 1, 2014, that gave rise to a realignment of two
of its three reportable business segments, as follows:
•
The Company's International Insurance group, which had previously been included in the Financial, Professional & International
Insurance segment, was combined with the Company's previous Business Insurance segment to create a new Business and
International Insurance segment.
•
The Bond & Financial Products group, which comprised the remaining businesses in the Financial, Professional & International
Insurance segment, now comprises the new Bond & Specialty Insurance segment.
•
The Personal Insurance segment was not impacted by these changes.
The realignment of segments described above was made to reflect the realignment of the Company's senior management responsibilities and
the manner in which the Company's businesses have been managed starting July 1, 2014, and the aggregation of products and services based on
the type of customer, how the business is marketed and the manner in which risks are underwritten.
The following discussion of the Company's reportable business segments reflects the realigned segment reporting structure. Financial data for
all prior periods presented was reclassified to be consistent with the 2014 presentation.
BUSINESS AND INTERNATIONAL INSURANCE
The Business and International Insurance segment offers a broad array of property and casualty insurance and insurance related services to
its clients, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world
as a corporate member of Lloyd's. Business and International Insurance is organized as follows:
Domestic
•
Select Accounts provides small businesses with property and casualty products, including commercial multi - peril, commercial
property, general liability, commercial auto and workers' compensation insurance.
•
Middle Market provides mid - sized businesses with property and casualty products, including commercial multi - peril, commercial
property, general liability, commercial auto and workers' compensation insurance, as well as risk management, claims handling and
other services. Middle Market generally provides these products to mid
- sized businesses through Commercial Accounts, as well as
to targeted industries through Construction, Technology, Public Sector Services and Oil & Gas. Middle Market also provides
mono
- line umbrella and excess coverage insurance
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