Travelers 2015 Annual Report Download - page 15

Competition
The competitive landscape in which the Bond & Specialty Insurance segment operates is affected
by many of the same factors described previously for the Business and International Insurance segment.
Competitors in this market are primarily national property and casualty insurance companies that write
most classes of business and, to a lesser extent, regional insurance companies and companies that have
developed niche programs for specific industry segments.
Bond & Specialty Insurance underwrites and markets its products to all sizes of businesses and
other organizations, as well as individuals. The Company believes that its reputation for timely and
consistent decision making, a nationwide network of local underwriting, claims and industry experts and
strong producer and customer relationships, as well as its ability to offer its customers a full range of
products, provides Bond & Specialty Insurance an advantage over many of its competitors and enables
it to compete effectively in a complex, dynamic marketplace. The Company believes that the ability of
the Bond & Specialty Insurance segment to cross-sell its products to customers of the Business and
International Insurance and Personal Insurance segments provides additional competitive advantages
for the Company.
PERSONAL INSURANCE
The Company’s Personal Insurance segment writes a broad range of property and casualty
insurance covering individuals’ personal risks. The primary products of automobile and homeowners
insurance are complemented by a broad suite of related coverages.
Selected Product and Distribution Channel Information
The following table sets forth net written premiums for the Personal Insurance segment’s business
by product line for the periods indicated. For a description of the product lines referred to in the
following table, see ‘‘—Product Lines.’’ In addition, see ‘‘—Principal Markets and Methods of
Distribution’’ for a discussion of distribution channels for Personal Insurance’s product lines.
% of Total
(for the year ended December 31, in millions) 2015 2014 2013 2015
By product line:
Automobile ...................................... $3,700 $3,390 $3,370 49.6%
Homeowners and Other ............................. 3,757 3,775 3,855 50.4
Total Personal Insurance ........................... $7,457 $7,165 $7,225 100.0%
Principal Markets and Methods of Distribution
Personal Insurance products are distributed primarily through approximately 11,100 active
independent agencies located throughout the United States, supported by personnel in nine sales
regions. In addition, sales and service are provided to customers through five contact centers. While the
principal markets for Personal Insurance products continue to be in states along the East Coast,
California and Texas, the business continues to expand its geographic presence across the United
States. See ‘‘Competition’’ below for a discussion of the Company’s newest private passenger
automobile product, Quantum Auto 2.0.
In selecting new independent agencies to distribute its products, Personal Insurance considers,
among other attributes, each agency’s profitability, financial stability, staff experience and strategic fit
with the segment’s operating and marketing plans. Once an agency is appointed, Personal Insurance
carefully monitors its performance.
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