SEGMENT INFORMATION

The following tables summarize the components of the Company’s revenues, income (loss) and total assets by reportable business segments:



(For the three months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance			Total Reportable Segments

2018
Premiums	$	3,641	$	601	$	2,453		$	6,695
Net investment income	440		57		98			595
Fee income	107		—		5			112
Other revenues	20		5		14			39
Total segment revenues ⁽¹⁾	$	4,208	$	663	$	2,570		$	7,441

Segment income (loss) ⁽¹⁾	$	385	$	204	$	(17	)	$	572

2017
Premiums	$	3,504	$	575	$	2,272		$	6,351
Net investment income	447		56		95			598
Fee income	112		—		4			116
Other revenues	15		6		15			36
Total segment revenues ⁽¹⁾	$	4,078	$	637	$	2,386		$	7,101

Segment income ⁽¹⁾	$	429	$	163	$	12		$	604


(1)	Segment revenues for reportable business segments exclude net realized investment gains (losses). Segment income (loss) for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses).



(For the six months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2018
Premiums	$	7,209	$	1,183	$	4,840	$	13,232
Net investment income	886		115		197		1,198
Fee income	206		—		9		215
Other revenues	51		11		31		93
Total segment revenues (1)	$	8,352	$	1,309	$	5,077	$	14,738

Segment income (1)	$	837	$	377	$	112	$	1,326

2017
Premiums	$	6,933	$	1,130	$	4,471	$	12,534
Net investment income	900		117		191		1,208
Fee income	221		—		8		229
Other revenues	24		11		31		66
Total segment revenues (1)	$	8,078	$	1,258	$	4,701	$	14,037

Segment income (1)	$	871	$	308	$	101	$	1,280


(1)	Segment revenues for reportable business segments exclude net realized investment gains (losses). Segment income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses).

Business Segment Reconciliations



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2018			2017			2018			2017
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	973		$	999		$	1,944		$	1,975
Commercial automobile	587			521			1,149			1,027
Commercial property	453			443			891			878
General liability	535			498			1,056			989
Commercial multi-peril	822			797			1,627			1,571
Other	6			7			13			14
Total Domestic	3,376			3,265			6,680			6,454
International	265			239			529			479
Total Business Insurance	3,641			3,504			7,209			6,933
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	253			245			499			479
General liability	248			239			490			474
Other	49			46			96			91
Total Domestic	550			530			1,085			1,044
International	51			45			98			86
Total Bond & Specialty Insurance	601			575			1,183			1,130
Personal Insurance:
Domestic:
Automobile	1,261			1,145			2,486			2,239
Homeowners and Other	1,022			977			2,017			1,932
Total Domestic	2,283			2,122			4,503			4,171
International	170			150			337			300
Total Personal Insurance	2,453			2,272			4,840			4,471
Total earned premiums	6,695			6,351			13,232			12,534
Net investment income	595			598			1,198			1,208
Fee income	112			116			215			229
Other revenues	39			36			93			66
Total segment revenues	7,441			7,101			14,738			14,037
Other revenues	—			3			—			4
Net realized investment gains	36			80			25			85
Total revenues	$	7,477		$	7,184		$	14,763		$	14,126
Income reconciliation, net of tax
Total segment income	$	572		$	604		$	1,326		$	1,280
Interest Expense and Other ⁽¹⁾	(78		)	(61		)	(154		)	(123		)
Core income	494			543			1,172			1,157
Net realized investment gains	30			52			21			55
Net income	$	524		$	595		$	1,193		$	1,212

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(1) The primary component of Interest Expense and Other was after-tax interest expense of $71 million and $60 million in the three months ended June 30, 2018 and 2017, respectively, and $141 million and $118 million in the six months ended June 30, 2018 and 2017, respectively.



(in millions)	June 30, 2018		December 31, 2017
Asset reconciliation
Business Insurance	$	78,500	$	78,082
Bond & Specialty Insurance	8,757		8,776
Personal Insurance	15,697		15,949
Total segment assets	102,954		102,807
Other assets ⁽¹⁾	569		676
Total consolidated assets	$	103,523	$	103,483

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(1)	The primary components of other assets at June 30, 2018 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets, and the primary components at December 31, 2017 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan, other intangible assets and deferred taxes.