Segment Information

9 Months Ended

Sep. 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 September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments

2019
Premiums	$	3,882	$	653	$	2,644	$	7,179
Net investment income	457		59		106		622
Fee income	114		—		7		121
Other revenues	39		7		22		68
Total segment revenues ⁽¹⁾	$	4,492	$	719	$	2,779	$	7,990
Segment income ⁽¹⁾	$	179	$	139	$	131	$	449

2018
Premiums	$	3,743	$	617	$	2,522	$	6,882
Net investment income	482		57		107		646
Fee income	103		—		6		109
Other revenues	33		5		17		55
Total segment revenues ⁽¹⁾	$	4,361	$	679	$	2,652	$	7,692
Segment income ⁽¹⁾	$	410	$	196	$	153	$	759

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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 nine months ended September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2019
Premiums	$	11,407	$	1,891	$	7,724	$	21,022
Net investment income	1,365		173		314		1,852
Fee income	329		—		17		346
Other revenues	112		19		65		196
Total segment revenues ⁽¹⁾	$	13,213	$	2,083	$	8,120	$	23,416
Segment income ⁽¹⁾	$	944	$	451	$	497	$	1,892

2018
Premiums	$	10,952	$	1,800	$	7,362	$	20,114
Net investment income	1,368		172		304		1,844
Fee income	309		—		15		324
Other revenues	84		16		48		148
Total segment revenues ⁽¹⁾	$	12,713	$	1,988	$	7,729	$	22,430
Segment income ⁽¹⁾	$	1,247	$	573	$	265	$	2,085


(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 September 30,						Nine Months Ended September 30,
(in millions)	2019			2018			2019			2018
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	969		$	988		$	2,891		$	2,932
Commercial automobile	672			611			1,947			1,760
Commercial property	496			466			1,429			1,357
General liability	594			558			1,746			1,614
Commercial multi-peril	872			850			2,568			2,477
Other	12			7			29			20
Total Domestic	3,615			3,480			10,610			10,160
International	267			263			797			792
Total Business Insurance	3,882			3,743			11,407			10,952
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	265			261			769			760
General liability	276			255			799			745
Other	54			50			159			146
Total Domestic	595			566			1,727			1,651
International	58			51			164			149
Total Bond & Specialty Insurance	653			617			1,891			1,800
Personal Insurance:
Domestic:
Automobile	1,344			1,297			3,962			3,783
Homeowners and Other	1,119			1,051			3,236			3,068
Total Domestic	2,463			2,348			7,198			6,851
International	181			174			526			511
Total Personal Insurance	2,644			2,522			7,724			7,362
Total earned premiums	7,179			6,882			21,022			20,114
Net investment income	622			646			1,852			1,844
Fee income	121			109			346			324
Other revenues	68			55			196			148
Total segment revenues	7,990			7,692			23,416			22,430
Other revenues	—			2			1			2
Net realized investment gains	23			29			101			54
Total revenues	$	8,013		$	7,723		$	23,518		$	22,486
Income reconciliation, net of tax
Total segment income	$	449		$	759		$	1,892		$	2,085
Interest Expense and Other ⁽¹⁾	(71		)	(72		)	(222		)	(226		)
Core income	378			687			1,670			1,859
Net realized investment gains	18			22			79			43
Net income	$	396		$	709		$	1,749		$	1,902

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(1) The primary component of Interest Expense and Other was after-tax interest expense of $66 million and $68 million for the three months ended September 30, 2019 and 2018, respectively, and $206 million and $209 million for the nine months ended September 30, 2019 and 2018, respectively.



(in millions)	September 30, 2019		December 31, 2018
Asset reconciliation
Business Insurance	$	83,876	$	78,965
Bond & Specialty Insurance	8,708		8,693
Personal Insurance	16,945		15,943
Total assets by reportable segment	109,529		103,601
Other assets ⁽¹⁾	712		632
Total consolidated assets	$	110,241	$	104,233

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(1)

The primary components of other assets at both September 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.