Travelers Companies (TRV) Company Description

TRAVELERS TRAVELERS TRAVELERSJ Sector: Financials Industry: Insurance Fiscal Year Ends: December 31 Sub-Industry: Property and Casualty Ticker: TRV Company Overview The Travelers Companies, Inc., founded in 1853 as the Saint Paul Fire and Marine Insurance Company, is currently the second-largest commercial property and casualty insurer in the US. Apart from property and casu- alty insurance, it also provides personal and financial insurance products and services to various customers which include businesses, government units and individuals. The company sells most of its products through independent agents and brokers, and generates nearly 87% of its revenues from insurance premiums. Travelers sets aside part of the revenues it earns from writing insurance premiums to create a pool of assets known as the 'claims loss provision', which it uses to cover various types of financial losses, including insurance claims. The remaining portion of revenues is diverted to fixed income investments claims. Geographical Distribution of Travelers Total Premium Revenues, 2012 4% 96% US Segmentation Travelers' divides its business into three main segments: Business Insurance Financial, Professional and International Insurance Personal Insurance Share of Segments in Total Revenues Earned from Premiums, 2012 53% 34% 13% Business Insurance Select Accounts - Sells packaged property and casualty coverage to small businesses. Commercial Accounts - Markets tailored insurance services to mid-size businesses. National Accounts - Provides insurance and risk management services for large companies. Target Risk Underwriting - Sells insurance products and services to address large property, inland marine, ocean marine, equipment breakdown and excess casualty risks. Industry-Focused Underwriting and Specialized Distribution - Tailors coverage services for complex industries – including oil and gas, technology, agriculture, trucking and construction - and the public sector. Shares of Business Insurance Core Operations 23% 26% 14% 7% 8% 22% Select Accounts Commercial Accounts National Accounts Industry Focused Underwriting Target Risk Underwriting Specialized Distribution Shares of Various Product Lines in Business Insurance Segment Revenues 29% 14% Commercial 15% 16% 26% Commercial Workers' General Commercial Multi-Peril Compensation Property Liability Automobil Financial, Professional and International Insurance Bond & Financial Products - Provides bonds, insurance products and risk management services. - Performance, payment and commercial surety and fidelity bonds for construction and general commercial enterprises. - Management liability, professional liability and crime coverage. - Traditional property and casualty coverage for financial institutions. International Business - Sells property and casualty insurance products and surety bonds. Main markets include the United Kingdom, Canada and the Republic of Ireland, while other countries are served through its operations from Lloyd's of London. Shares of Business Lines in Financial, Professional and International Segment Revenues Shares of Different Product Lines in Financial, Professional and International Segment Revenues 6% 35% 35% 29% International International 65% General Liability Bond & Financial Products 30% Fedelity & Surety Personal Insurance 3 Personal Automobile Insurance: Provides coverage for liability others' property in an accident, even if the driver of the vehicle is uninsured, and for damage to the vehicle. case of bodily injury and damage to Homeowners Insurance: Provides coverage for losses to homes and included property from a number of disasters, as well as for personal liability. Additional Offerings: Coverage for condominiums, tenants, home saver (dwelling fire), floods, identity theft, valuable items, boat and yacht, and wedding/special events. Shares of Business Lines in Personal Insurance Segment Revenues 58% 48% Homeowners and Automobile others Others E Non-US