Focused Strategy
Focus: first and foremost. Without it, we couldn't even begin to dream of success. Our strategy is to concentrate on the products and services that will provide a consistent, acceptable return. We know we can't be all things to all people: we focus on the business we know best, the strategy we execute
best -- diversified property-liability insurance with specialty focuses, backed by balance sheet strength, conservative financial management and strong leadership.
We believe there is less risk and more profit in serving sophisticated specialty buyers of insurance. We are selective in markets we choose to insure, and we've developed finely tuned underwriting expertise in areas such as medical and professional liability, financial services, surety, technology, ocean marine and transportation.
But focus, however intense, cannot stop the winds from blowing and the seas from churning. We will, from time to time, experience heavy catastrophe years, as we did in 1998. Focus also does not give us immunity from difficult conditions in our industry. However, it does give The St. Paul an edge. Technical expertise in selected markets allows us to move and grow with our customers. We are ready to deliver the specialty products required to meet the changing conditions in the industries we serve.
Business centers that target specific commercial niches produced more than one-third of our premium volume in 1998. Within our Commercial Lines and Personal Insurance operations, we also carefully target market segments. Examples are schools and colleges, museums, golf facilities, franchise operations, nonstandard automobile coverage and tailored personal package policies.
And, in our expanding International operation, we are also taking a specialty approach. We've seen growing interest in our medical liability products in Ireland, Spain, Argentina and France. We've underwritten very visible accounts in each of those countries, even though we are a relatively new market entrant. Interest in our technology products also appears to be growing globally, in Ireland, Canada, and even in Germany -- in the first year of our operation there.
The majority of our Lloyd's operations are also specialty-focused, including aviation, kidnap and ransom, and personal injury.
St. Paul Re, our Reinsurance operation, underwrites a broad spectrum of business from virtually all non-life classes. But St. Paul Re is also adept at working with businesses underserved by the traditional market and it, too, underwrites a number of specialty coverages, continually building its reputation as a specialty reinsurer.
Our merger with USF&G added a new dimension to our business -- Fidelity and Guaranty Life. F&G Life is a successful developer and marketer of specialty life and annuity products, such as tax-sheltered annuities, indexed annuities and structured settlements.
We have a clear, globally consistent focus, which will position us to be one of the companies capable of thriving in the worldwide insurance market of the future.
