Segments Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segments Information

4) Segments Information

The principal business of the Corporation is the sale of property and casualty insurance. The profitability of the property and casualty insurance business depends on the results of both underwriting operations and investments, which are viewed as two distinct operations. The underwriting operations are managed and evaluated separately from the investment function.

The property and casualty insurance subsidiaries underwrite most lines of property and casualty insurance. Underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. The personal segment targets the personal insurance market. The personal classes include automobile, homeowners and other personal coverages. The commercial segment includes those classes of business that are generally available in broad markets and are of a more commodity nature. Commercial classes include multiple peril, casualty, workers’ compensation and property and marine. The specialty segment includes those classes of business that are available in more limited markets since they require specialized underwriting and claim settlement. Specialty classes include professional liability coverages and surety. The reinsurance assumed business has been in runoff since the transfer of the ongoing reinsurance assumed business to a reinsurance company in 2005.

Corporate and other includes investment income earned on corporate invested assets, corporate expenses and the results of the Corporation’s non-insurance subsidiaries.

Revenues and income before income tax of each operating segment were as follows:

	Periods Ended June 30
	Second Quarter						Six Months
	2014			2013			2014			2013
	(in millions)
Revenues
Property and casualty insurance
Premiums earned
Personal insurance	$	1,102		$	1,050		$	2,178		$	2,081
Commercial insurance		1,305			1,299			2,605			2,607
Specialty insurance		656			645			1,309			1,311
Total insurance		3,063			2,994			6,092			5,999
Reinsurance assumed		1			1			1			—
		3,064			2,995			6,093			5,999
Investment income		345			361			696			724
Total property and casualty insurance		3,409			3,356			6,789			6,723
Corporate and other		8			16			18			28
Realized investment gains, net		125			179			241			317
Total revenues	$	3,542		$	3,551		$	7,048		$	7,068
Income (loss) before income tax
Property and casualty insurance
Underwriting
Personal insurance	$	45		$	75		$	47		$	225
Commercial insurance		71			124			182			319
Specialty insurance		140			96			222			191
Total insurance		256			295			451			735
Reinsurance assumed		1			6			1			10
		257			301			452			745
Increase in deferred policy acquisition costs		21			16			34			57
Underwriting income		278			317			486			802
Investment income		336			349			677			700
Other income (charges)		(2	)		9			(4	)		14
Total property and casualty insurance		612			675			1,159			1,516
Corporate and other		(59	)		(58	)		(119	)		(121	)
Realized investment gains, net		125			179			241			317
Total income before income tax	$	678		$	796		$	1,281		$	1,712