Profile: The Travelers Companies, Inc. (TRV)

The Travelers Companies, Inc. (TRV) is a holding company. Through its subsidiaries, the Company is principally engaged in providing a range of commercial, and personal property and casualty insurance products and services to businesses, government units, associations and individuals. The Company is organized into three business segments: Business Insurance; Financial, Professional & International Insurance, and Personal Insurance. The Business Insurance segment offers an array of property and casualty insurance, and insurance-related services to its clients primarily in the United States. The Financial, Professional & International Insurance segment includes surety and financial liability coverages, which primarily use credit-based underwriting processes, as well as property and casualty products that are primarily marketed on a domestic basis in the United Kingdom, Canada and the Republic of Ireland, and on an international basis, through Lloyd’s. The Personal Insurance segment writes a range of property and casualty insurance covering personal risks.

Business Insurance

Business Insurance is organized into six groups, which collectively comprise Business Insurance Core operations: Select Accounts, Commercial Accounts, National Accounts, Industry-Focused Underwriting, Target Risk Underwriting and Specialized Distribution. Select Accounts serves small businesses for property and casualty products, including commercial multi-peril, property, general liability, commercial auto and workers’ compensation insurance. It serves firms with generally fewer than 50 employees. Products offered by Select Accounts are guaranteed cost policies, including packaged products covering property and liability exposures.

Commercial Accounts sells a range of property and casualty insurance products through a network of independent agents and brokers. The Company offers a line of products to its Commercial Accounts customers with an emphasis on guaranteed cost programs. Commercial Accounts serves mid-sized businesses with 50 to 1,000 employees for property and casualty products, including property, general liability, commercial multi-peril, commercial auto and workers’ compensation insurance. National Accounts comprises three business units. The largest provides casualty products and services to large companies, with particular emphasis on workers’ compensation, general liability and automobile liability, generally utilizing loss-sensitive products, such as collateralized deductibles or self-insured programs. National Accounts also includes Discover Re, which provides property and casualty insurance products on an unbundled basis using third-party administrators for insureds who utilize programs, such as collateralized deductibles, captive reinsurers and self-insurance. In addition, National Accounts includes the commercial residual market business, which primarily offers workers’ compensation products and services to the involuntary market.

The Industry-Focused Underwriting unit serves targeted industries with differentiated combinations of insurance coverage, risk management, claims handling and other services. Construction serves a range of construction businesses, offering guaranteed cost products for small to mid-sized policyholders and loss sensitive programs for larger accounts. Technology serves small to large companies involved in telecommunications, information technology, medical technology and electronics manufacturing, offering a portfolio of products and services. Public Sector Services markets insurance products and services to public entities, including municipalities, counties, Indian Nation gaming organizations, and selected special government districts, such as water and sewer utilities. Oil & Gas provides specialized property and liability products and services for customers involved in the exploration and production of oil and natural gas, including operators and drilling contractors. Agribusiness serves small to medium-sized agricultural businesses, including farms, ranches, wineries and related operations, offering property and liability coverages other than workers’ compensation.

The Target Risk Underwriting unit serves commercial businesses requiring specialized product underwriting, claims handling and risk management services. National Property provides traditional and customized property insurance programs to large and mid-sized customers. These insurance programs cover losses on buildings, business personal property and business interruption exposures. Inland Marine provides insurance for goods in transit and movable objects for customers, such as jewelers, museums, contractors and the transportation industry. Ocean Marine serves the marine transportation industry and related services, as well as other businesses involved in international trade. Excess Casualty serves small to mid-sized commercial businesses, offering mono-line umbrella and excess coverage where the Company typically does not write the primary casualty coverage, or where other business units within the Company prefer to access the underwriting capability and/or limit capacity of the Excess Casualty business unit. The Boiler & Machinery unit serves small to large companies, offering breakdown coverages for equipment, including property and business interruption coverages. Through the BoilerRe unit, Boiler & Machinery also serves other property and casualty carriers that do not have in-house capabilities with reinsurance, underwriting, engineering, claim handling and risk management services for this type of coverage. Global Accounts provides insurance to United States companies with foreign property and liability exposures (home-foreign) and foreign organizations with property and liability exposures located in the United States (reverse-flow), as part of a global program.

The Specialized Distribution unit, through its business units, markets and underwrites products to customers predominantly through licensed wholesale, general and program agents that manage customers’ insurance requirements. Northland provides insurance coverage for the commercial transportation industry, as well as commercial liability and package policies for small, specialty classes of commercial business on an admitted or excess and surplus lines basis. National Programs offers property and casualty programs on an admitted basis for customers with common risk characteristics or coverage requirements. Programs available include those for entertainment, architects and engineers, equipment rental, golf services and owners of franchised businesses. Business Insurance also includes the Special Liability Group (which manages the Company’s asbestos and environmental liabilities) and the assumed reinsurance and certain international and other runoff operations, which are collectively referred to as Business Insurance Other.

The Company’s products include Commercial Multi-Peril, which provides a combination of property and liability coverage; Workers’ Compensation, which provides coverage for employers for specified benefits payable under state or federal law for workplace injuries to employees; Commercial Automobile, which provides coverage for businesses against losses incurred from personal bodily injury, bodily injury to third parties, property damage to an insured’s vehicle, and property damage to other vehicles and other property resulting from the ownership, maintenance or use of automobiles and trucks in a business, and Property, which provides coverage for loss of or damage to buildings, inventory and equipment from natural disasters, including hurricanes and windstorms. General Liability provides coverage for liability exposures, including bodily injury and property damage arising from products sold and general business operations.

Financial, Professional & International Insurance

The Financial, Professional & International Insurance segment includes two business groups: Bond & Financial Products, and International. Bond & Financial Products provides a range of customers with bond and insurance products, and risk management services. The range of coverages includes performance, payment and commercial surety and fidelity bonds for construction and general commercial enterprises; management liability for losses caused by the negligence or misconduct of directors and officers, employee dishonesty, employment practices liability and fiduciary coverages for public corporations, private companies and not-for-profit organizations; professional liability from errors and omissions committed in the course of professional conduct or practice for a variety of professionals, including lawyers, design professionals and real estate agents, and professional and management liability, property, auto and general liability and fidelity insurance for financial institutions, with a special focus on community banks.

International includes business written through domestic operations in the United Kingdom, Canada and the Republic of Ireland, and business written as a corporate member at Lloyd’s. International, through its operations in the United Kingdom, Canada and the Republic of Ireland, offers specialized insurance and risk management services to several customer groups, including those in the technology, public services, and financial and professional services industry sectors. In addition, in the Republic of Ireland, the Company writes personal automobile coverage and has started writing personal household coverages. International, through its Lloyd’s syndicate (Syndicate 5000), for which the Company provides 100% of the capital, underwrites through five principal business units: marine, global property, accident & special risks, power & utilities, and aviation. During the year ended December 31, 2009, results from the Company's surety bond operation in Canada were reclassified from the Bond & Financial Products group to the International group. The Financial, Professional & International Insurance segment’s products also include Property, Workers' Compensation, Commercial Automobile and Commercial Multi-Peril product lines.

Personal Insurance

Personal Insurance writes a range of property and casualty insurance covering personal risks. The primary coverages in Personal Insurance are automobile and homeowners insurance sold to individuals. These products are distributed through independent agents, sponsoring organizations (such as employee and affinity groups), joint marketing arrangements with other insurers and direct marketing. Personal Insurance products are distributed primarily through approximately 11,500 independent agents located throughout the United States, supported by personnel in 16 marketing regions and six service centers.

Personal Automobile provides coverage for liability to others for both bodily injury and property damage, and for physical damage to an insured’s own vehicle from collision and various other perils. Homeowners and Other product line provides 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 insurance for dwellings, condominiums and rental property contents. The Company also writes coverage for personal watercraft, personal articles, such as jewelry, and umbrella liability protection.