Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information

NOTE 2 – SEGMENT INFORMATION

We operate primarily in two industries, property casualty insurance and life insurance. We regularly review our reporting segments to make decisions about allocating resources and assessing performance:

· Commercial lines property casualty insurance

· Personal lines property casualty insurance

· Excess and surplus lines property casualty insurance

· Life insurance

· Investments

We report as Other the noninvestment operations of the parent company and its noninsurer subsidiary, CFC Investment Company. See our 2011 Annual Report on Form 10-K, Item 8, Note 18, Segment Information, Page 136, for a description of revenue, income or loss before income taxes and identifiable assets for each of the five segments.

Segment information is summarized in the following table:

	Three months ended September 30,						Nine months ended September 30,
(In millions)	2012			2011			2012			2011
Revenues:
Commercial lines insurance
Commercial casualty	$	197		$	180		$	569		$	532
Commercial property		138			128			403			369
Commercial auto		108			100			315			292
Workers' compensation		89			78			255			235
Specialty packages		37			36			112			100
Surety and executive risk		28			26			82			76
Machinery and equipment		10			9			29			26
Commercial lines insurance premiums		607			557			1,765			1,630
Fee revenue		-			1			2			2
Total commercial lines insurance		607			558			1,767			1,632
Personal lines insurance
Personal auto		101			94			299			273
Homeowner		90			74			261			216
Other personal lines		28			25			82			74
Personal lines insurance premiums		219			193			642			563
Fee revenue		1			-			2			1
Total personal lines insurance		220			193			644			564
Excess and surplus lines insurance		25			19			68			51
Life insurance		39			44			131			125
Investment operations		142			128			424			470
Other		2			2			7			6
Total revenues	$	1,035		$	944		$	3,041		$	2,848
Income (loss) before income taxes:
Insurance underwriting results:
Commercial lines insurance	$	60		$	(44	)	$	74		$	(195	)
Personal lines insurance		(12	)		(38	)		(89	)		(183	)
Excess and surplus lines insurance		(3	)		2			(8	)		1
Life insurance		-			(3	)		(2	)		(1	)
Investment operations		121			107			362			409
Other		(14	)		(13	)		(44	)		(44	)
Total	$	152		$	11		$	293		$	(13	)

Identifiable assets:	September 30,		December 31,
	2012		2011
Property casualty insurance	$	2,294	$	2,272
Life insurance		1,200		1,237
Investment operations		12,582		11,883
Other		403		243
Total	$	16,479	$	15,635