Travelers 2015 Annual Report Download - page 182

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
commercial insurance business in Canada through Dominion, which the Company acquired on
November 1, 2013. International, through its Lloyd’s syndicate (Syndicate 5000), for which the
Company provides 100% of the capital, underwrites five principal businesses—marine, global
property, accident & special risks, power & utilities and aviation.
International also includes results from J. Malucelli Participa¸c˜ oes em Seguros e Resseguros S.A.
(JMalucelli) and J. Malucelli Latam S.A. in Brazil. The Company owns 49.5% of both
JMalucelli, a market leader in surety coverages in Brazil, and J. Malucelli Latam S.A., which in
September 2015 acquired a majority interest in JMalucelli Travelers Seguros S.A., a Colombian
start-up surety provider. These joint venture investments are accounted for using the equity
method and are included in ‘‘other investments’’ on the consolidated balance sheet. Also, as a
result of a transaction that was completed in October 2015 with Paran´ a Banco S.A., the
Company’s joint venture partner in Brazil, the Company acquired 100% of the common stock of
Travelers Participa¸c˜ oes em Seguros Brasil S.A., which comprises JMalucelli’s former property
and casualty insurance business other than surety. The Company consolidates this investment in
its financial statements and includes Paran´ a Banco S.A.’s preferred stock interest in ‘‘other
liabilities.’’
Business and International Insurance also includes the Special Liability Group (which manages the
Company’s asbestos and environmental liabilities) and the assumed reinsurance and certain other
runoff operations, which are collectively referred to as Business and International Insurance Other.
Bond & Specialty Insurance
The Bond & Specialty Insurance segment provides surety, fidelity, management liability,
professional liability, and other property and casualty 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 including directors and officers liability, employee dishonesty, employment practices liability,
fiduciary liability and cyber risk for public corporations, private companies and not-for-profit
organizations; professional liability coverage for a variety of professionals including, among others,
lawyers and design professionals; and management liability, professional liability, property, workers’
compensation, auto and general liability for financial institutions.
Personal Insurance
The 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.
Automobile policies provide 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 policies provide 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
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