Consolidating Financial Statements (Unaudited) (Tables)

6 Months Ended

Jun. 30, 2018

Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure

Consolidating Statement of Income (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended June 30, 2018

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	4,577	$	2,118	$	—		$	—		$	6,695
Net investment income	412		175		8			—			595
Fee income	112		—		—			—			112
Net realized investment gains (1)	18		16		2			—			36
Other revenues	13		27		—			(1		)	39
Total revenues	5,132		2,336		10			(1		)	7,477
Claims and expenses
Claims and claim adjustment expenses	3,064		1,498		—			—			4,562
Amortization of deferred acquisition costs	727		354		—			—			1,081
General and administrative expenses	766		343		5			(1		)	1,113
Interest expense	13		—		77			—			90
Total claims and expenses	4,570		2,195		82			(1		)	6,846
Income (loss) before income taxes	562		141		(72		)	—			631
Income tax expense (benefit)	104		21		(18		)	—			107
Net income of subsidiaries	—		—		578			(578		)	—
Net income	$	458	$	120	$	524		$	(578	)	$	524

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(1) Total other-than-temporary impairments (OTTI) for the three months ended June 30, 2018, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (loss) (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries		TRV		Eliminations		Consolidated
Total OTTI losses	$	(1	)	$	—	$	—	$	—	$	(1	)
OTTI losses recognized in net realized investment gains	$	(1	)	$	—	$	—	$	—	$	(1	)
OTTI losses recognized in OCI	$	—		$	—	$	—	$	—	$	—

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended June 30, 2017

(in millions)	TPC			Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	4,345		$	2,006	$	—		$	—		$	6,351
Net investment income	401			191		6			—			598
Fee income	116			—		—			—			116
Net realized investment gains (losses) (1)	(4		)	25		59			—			80
Other revenues	30			12		—			(3		)	39
Total revenues	4,888			2,234		65			(3		)	7,184
Claims and expenses
Claims and claim adjustment expenses	2,851			1,374		—			—			4,225
Amortization of deferred acquisition costs	693			339		—			—			1,032
General and administrative expenses	737			305		6			(3		)	1,045
Interest expense	12			—		80			—			92
Total claims and expenses	4,293			2,018		86			(3		)	6,394
Income (loss) before income taxes	595			216		(21		)	—			790
Income tax expense (benefit)	157			54		(16		)	—			195
Net income of subsidiaries	—			—		600			(600		)	—
Net income	$	438		$	162	$	595		$	(600	)	$	595

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(1) Total other-than-temporary impairments (OTTI) for the three months ended June 30, 2017, and the amounts comprising total OTTI that were recognized in net realized investment gains (losses) and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries			TRV		Eliminations		Consolidated
Total OTTI losses	$	(2	)	$	(3	)	$	—	$	—	$	(5	)
OTTI losses recognized in net realized investment gains (losses)	$	(2	)	$	(3	)	$	—	$	—	$	(5	)
OTTI gains recognized in OCI	$	—		$	—		$	—	$	—	$	—

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the six months ended June 30, 2018

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	9,045	$	4,187	$	—		$	—		$	13,232
Net investment income	824		360		14			—			1,198
Fee income	215		—		—			—			215
Net realized investment gains (1)	20		4		1			—			25
Other revenues	40		55		—			(2		)	93
Total revenues	10,144		4,606		15			(2		)	14,763
Claims and expenses
Claims and claim adjustment expenses	5,974		2,884		—			—			8,858
Amortization of deferred acquisition costs	1,432		710		—			—			2,142
General and administrative expenses	1,495		671		11			(2		)	2,175
Interest expense	24		—		155			—			179
Total claims and expenses	8,925		4,265		166			(2		)	13,354
Income (loss) before income taxes	1,219		341		(151		)	—			1,409
Income tax expense (benefit)	210		53		(47		)	—			216
Net income of subsidiaries	—		—		1,297			(1,297		)	—
Net income	$	1,009	$	288	$	1,193		$	(1,297	)	$	1,193

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(1) Total other-than-temporary impairments (OTTI) for the six months ended June 30, 2018, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (loss) (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries		TRV		Eliminations		Consolidated
Total OTTI losses	$	(1	)	$	—	$	—	$	—	$	(1	)
OTTI losses recognized in net realized investment gains	$	(1	)	$	—	$	—	$	—	$	(1	)
OTTI losses recognized in OCI	$	—		$	—	$	—	$	—	$	—

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the six months ended June 30, 2017

(in millions)	TPC			Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	8,573		$	3,961	$	—		$	—		$	12,534
Net investment income	813			385		10			—			1,208
Fee income	229			—		—			—			229
Net realized investment gains (losses) (1)	(8		)	34		59			—			85
Other revenues	54			21		—			(5		)	70
Total revenues	9,661			4,401		69			(5		)	14,126
Claims and expenses
Claims and claim adjustment expenses	5,603			2,716		—			—			8,319
Amortization of deferred acquisition costs	1,361			674		—			—			2,035
General and administrative expenses	1,440			597		9			(5		)	2,041
Interest expense	24			—		157			—			181
Total claims and expenses	8,428			3,987		166			(5		)	12,576
Income (loss) before income taxes	1,233			414		(97		)	—			1,550
Income tax expense (benefit)	287			108		(57		)	—			338
Net income of subsidiaries	—			—		1,252			(1,252		)	—
Net income	$	946		$	306	$	1,212		$	(1,252	)	$	1,212

_________________________________________________________

(1) Total other-than-temporary impairments (OTTI) for the six months ended June 30, 2017, and the amounts comprising total OTTI that were recognized in net realized investment gains (losses) and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries			TRV		Eliminations		Consolidated
Total OTTI losses	$	(2	)	$	(4	)	$	—	$	—	$	(6	)
OTTI losses recognized in net realized investment gains (losses)	$	(3	)	$	(4	)	$	—	$	—	$	(7	)
OTTI gains recognized in OCI	$	1		$	—		$	—	$	—	$	1

Consolidating Statement of Comprehensive Income (Loss) (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

For the three months ended June 30, 2018

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	458		$	120		$	524		$	(578	)	$	524
Other comprehensive income (loss):
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	(209		)	(89		)	—			—			(298		)
Having credit losses recognized in the consolidated statement of income	(10		)	(2		)	—			—			(12		)
Net changes in benefit plan assets and obligations	—			—			21			—			21
Net changes in unrealized foreign currency translation	(77		)	(81		)	—			—			(158		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(296		)	(172		)	21			—			(447		)
Income tax benefit	(58		)	(21		)	(2		)	—			(81		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(238		)	(151		)	23			—			(366		)
Other comprehensive loss of subsidiaries	—			—			(389		)	389			—
Other comprehensive loss	(238		)	(151		)	(366		)	389			(366		)
Comprehensive income (loss)	$	220		$	(31	)	$	158		$	(189	)	$	158

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended June 30, 2017

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	438	$	162		$	595		$	(600	)	$	595
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	296		85			(54		)	—			327
Having credit losses recognized in the consolidated statement of income	1		1			—			—			2
Net changes in benefit plan assets and obligations	—		(1		)	18			—			17
Net changes in unrealized foreign currency translation	14		34			—			—			48
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries	311		119			(36		)	—			394
Income tax expense (benefit)	102		33			(12		)	—			123
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries	209		86			(24		)	—			271
Other comprehensive income of subsidiaries	—		—			295			(295		)	—
Other comprehensive income	209		86			271			(295		)	271
Comprehensive income	$	647	$	248		$	866		$	(895	)	$	866

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

For the six months ended June 30, 2018

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	1,009		$	288		$	1,193		$	(1,297	)	$	1,193
Other comprehensive income (loss):
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	(1,047		)	(453		)	(1		)	—			(1,501		)
Having credit losses recognized in the consolidated statement of income	(11		)	(3		)	—			—			(14		)
Net changes in benefit plan assets and obligations	—			—			43			—			43
Net changes in unrealized foreign currency translation	(102		)	(50		)	—			—			(152		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(1,160		)	(506		)	42			—			(1,624		)
Income tax expense (benefit)	(233		)	(98		)	6			—			(325		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(927		)	(408		)	36			—			(1,299		)
Other comprehensive loss of subsidiaries	—			—			(1,335		)	1,335			—
Other comprehensive loss	(927		)	(408		)	(1,299		)	1,335			(1,299		)
Comprehensive income (loss)	$	82		$	(120	)	$	(106	)	$	38		$	(106	)

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the six months ended June 30, 2017

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	946	$	306		$	1,212		$	(1,252	)	$	1,212
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	389		129			(47		)	—			471
Having credit losses recognized in the consolidated statement of income	2		—			—			—			2
Net changes in benefit plan assets and obligations	—		(1		)	35			—			34
Net changes in unrealized foreign currency translation	39		50			—			—			89
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries	430		178			(12		)	—			596
Income tax expense (benefit)	139		49			(3		)	—			185
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries	291		129			(9		)	—			411
Other comprehensive income of subsidiaries	—		—			420			(420		)	—
Other comprehensive income	291		129			411			(420		)	411
Comprehensive income	$	1,237	$	435		$	1,623		$	(1,672	)	$	1,623

Consolidating Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)

At June 30, 2018

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $62,674)	$	43,192		$	19,260		$	84		$	—		$	62,536
Equity securities, at fair value (cost $409)	131			110			183			—			424
Real estate investments	54			900			—			—			954
Short-term securities	1,765			530			1,397			—			3,692
Other investments	2,730			824			1			—			3,555
Total investments	47,872			21,624			1,665			—			71,161
Cash	231			184			—			—			415
Investment income accrued	424			182			4			—			610
Premiums receivable	5,251			2,535			—			—			7,786
Reinsurance recoverables	5,797			2,461			—			—			8,258
Ceded unearned premiums	610			88			—			—			698
Deferred acquisition costs	1,955			206			—			—			2,161
Deferred taxes	180			295			(12		)	—			463
Contractholder receivables	3,909			921			—			—			4,830
Goodwill	2,584			1,356			—			(9		)	3,931
Other intangible assets	225			131			—			—			356
Investment in subsidiaries	—			—			26,630			(26,630		)	—
Other assets	2,077			166			632			(21		)	2,854
Total assets	$	71,115		$	30,149		$	28,919		$	(26,660	)	$	103,523
Liabilities
Claims and claim adjustment expense reserves	$	33,579		$	16,382		$	—		$	—		$	49,961
Unearned premium reserves	9,542			4,213			—			—			13,755
Contractholder payables	3,909			921			—			—			4,830
Payables for reinsurance premiums	230			166			—			—			396
Debt	693			21			5,771			(21		)	6,464
Other liabilities	4,188			778			528			—			5,494
Total liabilities	52,141			22,481			6,299			(21		)	80,900
Shareholders’ equity
Common stock (1,750.0 shares authorized; 267.8 shares issued and 267.7 shares outstanding)	—			390			23,040			(390		)	23,040
Additional paid-in capital	11,634			6,972			—			(18,606		)	—
Retained earnings	7,869			685			34,293			(8,551		)	34,296
Accumulated other comprehensive loss	(529		)	(379		)	(1,688		)	908			(1,688		)
Treasury stock, at cost (506.4 shares)	—			—			(33,025		)	—			(33,025		)
Total shareholders’ equity	18,974			7,668			22,620			(26,639		)	22,623
Total liabilities and shareholders’ equity	$	71,115		$	30,149		$	28,919		$	(26,660	)	$	103,523

CONSOLIDATING BALANCE SHEET (Unaudited)

At December 31, 2017

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $61,316)	$	43,240		$	19,372		$	82		$	—		$	62,694
Equity securities, available for sale, at fair value (cost $440)	161			111			181			—			453
Real estate investments	54			878			—			—			932
Short-term securities	2,751			914			1,230			—			4,895
Other investments	2,673			854			1			—			3,528
Total investments	48,879			22,129			1,494			—			72,502
Cash	157			187			—			—			344
Investment income accrued	418			183			5			—			606
Premiums receivable	4,852			2,292			—			—			7,144
Reinsurance recoverables	5,842			2,467			—			—			8,309
Ceded unearned premiums	493			58			—			—			551
Deferred acquisition costs	1,835			190			—			—			2,025
Deferred taxes	(89		)	173			(14		)	—			70
Contractholder receivables	3,854			921			—			—			4,775
Goodwill	2,592			1,368			—			(9		)	3,951
Other intangible assets	202			140			—			—			342
Investment in subsidiaries	—			—			27,946			(27,946		)	—
Other assets	2,181			(3		)	700			(14		)	2,864
Total assets	$	71,216		$	30,105		$	30,131		$	(27,969	)	$	103,483
Liabilities
Claims and claim adjustment expense reserves	$	33,386		$	16,264		$	—		$	—		$	49,650
Unearned premium reserves	8,957			3,958			—			—			12,915
Contractholder payables	3,854			921			—			—			4,775
Payables for reinsurance premiums	165			109			—			—			274
Debt	693			14			5,878			(14		)	6,571
Other liabilities	4,161			882			524			—			5,567
Total liabilities	51,216			22,148			6,402			(14		)	79,752
Shareholders’ equity
Common stock (1,750.0 shares authorized; 271.5 shares issued and 271.4 shares outstanding)	—			390			22,886			(390		)	22,886
Additional paid-in capital	11,634			6,972			—			(18,606		)	—
Retained earnings	8,036			594			33,460			(8,628		)	33,462
Accumulated other comprehensive income (loss)	330			1			(343		)	(331		)	(343		)
Treasury stock, at cost (500.9 shares)	—			—			(32,274		)	—			(32,274		)
Total shareholders’ equity	20,000			7,957			23,729			(27,955		)	23,731
Total liabilities and shareholders’ equity	$	71,216		$	30,105		$	30,131		$	(27,969	)	$	103,483

Consolidating Statement of Cash Flows (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the six months ended June 30, 2018

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,009		$	288		$	1,193		$	(1,297	)	$	1,193
Net adjustments to reconcile net income to net cash provided by operating activities	323			11			146			25			505
Net cash provided by operating activities	1,332			299			1,339			(1,272		)	1,698
Cash flows from investing activities
Proceeds from maturities of fixed maturities	2,730			914			13			—			3,657
Proceeds from sales of investments:
Fixed maturities	1,847			759			1			—			2,607
Equity securities	33			59			—			—			92
Real estate investments	—			—			—			—			—
Other investments	133			56			—			—			189
Purchases of investments:
Fixed maturities	(5,762		)	(2,173		)	(17		)	—			(7,952		)
Equity securities	(2		)	(56		)	(2		)	—			(60		)
Real estate investments	—			(44		)	—			—			(44		)
Other investments	(232		)	(43		)	—			—			(275		)
Net sales (purchases) of short-term securities	986			383			(167		)	—			1,202
Securities transactions in course of settlement	268			12			(1		)	—			279
Other	(148		)	(4		)	—			—			(152		)
Net cash used in investing activities	(147		)	(137		)	(173		)	—			(457		)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(700		)	—			(700		)
Treasury stock acquired — net employee share-based compensation	—			—			(51		)	—			(51		)
Dividends paid to shareholders	—			—			(404		)	—			(404		)
Payment of debt	—			—			(600		)	—			(600		)
Issuance of debt	—			7			491			(7		)	491
Issuance of common stock — employee share options	—			—			98			—			98
Dividends paid to parent company	(1,109		)	(170		)	—			1,279			—
Net cash used in financing activities	(1,109		)	(163		)	(1,166		)	1,272			(1,166		)
Effect of exchange rate changes on cash	(2		)	(2		)	—			—			(4		)
Net increase (decrease) in cash	74			(3		)	—			—			71
Cash at beginning of year	157			187			—			—			344
Cash at end of period	$	231		$	184		$	—		$	—		$	415
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	193		$	171		$	(126	)	$	—		$	238
Interest paid	$	24		$	—		$	151		$	—		$	175

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the six months ended June 30, 2017

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	946		$	306		$	1,212		$	(1,252	)	$	1,212
Net adjustments to reconcile net income to net cash provided by operating activities	341			83			223			(105		)	542
Net cash provided by operating activities	1,287			389			1,435			(1,357		)	1,754
Cash flows from investing activities
Proceeds from maturities of fixed maturities	3,211			1,087			2			—			4,300
Proceeds from sales of investments:
Fixed maturities	285			278			—			—			563
Equity securities	4			75			121			—			200
Real estate investments	—			20			—			—			20
Other investments	176			57			—			—			233
Purchases of investments:
Fixed maturities	(4,160		)	(1,511		)	(2		)	—			(5,673		)
Equity securities	(3		)	(41		)	(122		)	—			(166		)
Real estate investments	—			(26		)	—			—			(26		)
Other investments	(202		)	(57		)	—			—			(259		)
Net sales (purchases) of short-term securities	383			78			(885		)	—			(424		)
Securities transactions in course of settlement	105			64			1			—			170
Other	(134		)	6			—			—			(128		)
Net cash provided by (used in) investing activities	(335		)	30			(885		)	—			(1,190		)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(700		)	—			(700		)
Treasury stock acquired — net employee share-based compensation	—			—			(61		)	—			(61		)
Dividends paid to shareholders	—			—			(389		)	—			(389		)
Payment of debt	—			—			(207		)	—			(207		)
Issuance of debt	—			—			689			—			689
Issuance of common stock — employee share options	—			—			118			—			118
Dividends paid to parent company	(961		)	(396		)	—			1,357			—
Net cash used in financing activities	(961		)	(396		)	(550		)	1,357			(550		)
Effect of exchange rate changes on cash	2			5			—			—			7
Net increase (decrease) in cash	(7		)	28			—			—			21
Cash at beginning of year	141			164			2			—			307
Cash at end of period	$	134		$	192		$	2		$	—		$	328
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	336		$	119		$	(132	)	$	—		$	323
Interest paid	$	24		$	—		$	154		$	—		$	178