Segment Information

6 Months Ended

Jun. 30, 2019

SEGMENT INFORMATION

The following tables summarize the components of the Company’s revenues, income 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

2019
Premiums	$	3,783	$	632	$	2,573		$	6,988
Net investment income	481		58		109			648
Fee income	111		—		5			116
Other revenues	30		6		21			57
Total segment revenues ⁽¹⁾	$	4,405	$	696	$	2,708		$	7,809
Segment income ⁽¹⁾	$	351	$	174	$	88		$	613

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

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(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).



(For the six months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2019
Premiums	$	7,525	$	1,238	$	5,080	$	13,843
Net investment income	908		114		208		1,230
Fee income	215		—		10		225
Other revenues	73		12		43		128
Total segment revenues ⁽¹⁾	$	8,721	$	1,364	$	5,341	$	15,426
Segment income ⁽¹⁾	$	765	$	312	$	366	$	1,443

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


(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)	2019			2018			2019			2018
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	950		$	973		$	1,922		$	1,944
Commercial automobile	647			587			1,275			1,149
Commercial property	473			453			933			891
General liability	585			535			1,152			1,056
Commercial multi-peril	856			822			1,696			1,627
Other	9			6			17			13
Total Domestic	3,520			3,376			6,995			6,680
International	263			265			530			529
Total Business Insurance	3,783			3,641			7,525			7,209
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	258			253			504			499
General liability	266			248			523			490
Other	53			49			105			96
Total Domestic	577			550			1,132			1,085
International	55			51			106			98
Total Bond & Specialty Insurance	632			601			1,238			1,183
Personal Insurance:
Domestic:
Automobile	1,321			1,261			2,618			2,486
Homeowners and Other	1,078			1,022			2,117			2,017
Total Domestic	2,399			2,283			4,735			4,503
International	174			170			345			337
Total Personal Insurance	2,573			2,453			5,080			4,840
Total earned premiums	6,988			6,695			13,843			13,232
Net investment income	648			595			1,230			1,198
Fee income	116			112			225			215
Other revenues	57			39			128			93
Total segment revenues	7,809			7,441			15,426			14,738
Other revenues	—			—			1			—
Net realized investment gains	25			36			78			25
Total revenues	$	7,834		$	7,477		$	15,505		$	14,763
Income reconciliation, net of tax
Total segment income	$	613		$	572		$	1,443		$	1,326
Interest Expense and Other ⁽¹⁾	(76		)	(78		)	(151		)	(154		)
Core income	537			494			1,292			1,172
Net realized investment gains	20			30			61			21
Net income	$	557		$	524		$	1,353		$	1,193

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(1) The primary component of Interest Expense and Other was after-tax interest expense of $70 million and $71 million for the three months ended June 30, 2019 and 2018, respectively, and $140 million and $141 million for the six months ended June 30, 2019 and 2018, respectively.



(in millions)	June 30, 2019		December 31, 2018
Asset reconciliation
Business Insurance	$	82,762	$	78,965
Bond & Specialty Insurance	8,445		8,693
Personal Insurance	16,602		15,943
Total assets by reportable segment	107,809		103,601
Other assets ⁽¹⁾	763		632
Total consolidated assets	$	108,572	$	104,233

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(1)

The primary components of other assets at both June 30, 2019 and December 31, 2018 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets.