Segments Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segments Information

5) 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:

	Three Months Ended March 31
	2015			2014
	(in millions)
Revenues
Property and casualty insurance
Premiums earned
Personal insurance	$	1,113		$	1,076
Commercial insurance		1,342			1,300
Specialty insurance		650			653
Total insurance		3,105			3,029
Investment income		332			351
Total property and casualty insurance		3,437			3,380
Corporate and other		9			10
Realized investment gains, net		11			116
Total revenues	$	3,457		$	3,506
Income (loss) before income tax
Property and casualty insurance
Underwriting
Personal insurance	$	(30	)	$	2
Commercial insurance		91			111
Specialty insurance		127			82
Total insurance		188			195
Increase in deferred policy acquisition costs		17			13
Underwriting income		205			208
Investment income		321			341
Other income (charges)		7			(2	)
Total property and casualty insurance		533			547
Corporate and other		(62	)		(60	)
Realized investment gains, net		11			116
Total income before income tax	$	482		$	603