Segment Information

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Nature of Operations

The Company’s results are reported in the following three business segments — Business Insurance, Bond & Specialty Insurance and Personal Insurance. These segments reflect the manner in which the Company’s businesses are currently managed and represent an aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. For more information regarding the Company’s nature of operations, see the “Nature of Operations” section of note 1 of notes to the consolidated financial statements in the Company’s 2019 Annual Report.

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

(For the three months ended March 31, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2020
Premiums	$	3,864	$	667	$	2,698	$	7,229
Net investment income	453		55		103		611
Fee income	102		—		6		108
Other revenues	31		5		22		58
Total segment revenues (1)	$	4,450	$	727	$	2,829	$	8,006
Segment income (1)	$	289	$	122	$	336	$	747
2019
Premiums	$	3,742	$	606	$	2,507	$	6,855
Net investment income	427		56		99		582
Fee income	104		—		5		109
Other revenues	43		6		22		71
Total segment revenues (1)	$	4,316	$	668	$	2,633	$	7,617
Segment income (1)	$	414	$	138	$	278	$	830

_________________________________________________________

(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 March 31,
(in millions)	2020			2019
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	899		$	972
Commercial automobile	684			628
Commercial property	508			460
General liability	601			567
Commercial multi-peril	886			840
Other	12			8
Total Domestic	3,590			3,475
International	274			267
Total Business Insurance	3,864			3,742
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	257			246
General liability	287			257
Other	58			52
Total Domestic	602			555
International	65			51
Total Bond & Specialty Insurance	667			606
Personal Insurance:
Domestic:
Automobile	1,351			1,297
Homeowners and Other	1,176			1,039
Total Domestic	2,527			2,336
International	171			171
Total Personal Insurance	2,698			2,507
Total earned premiums	7,229			6,855
Net investment income	611			582
Fee income	108			109
Other revenues	58			71
Total segment revenues	8,006			7,617
Other revenues	—			1
Net realized investment gains (losses)	(98		)	53
Total revenues	$	7,908		$	7,671
Income reconciliation, net of tax
Total segment income	$	747		$	830
Interest Expense and Other (1)	(71		)	(75		)
Core income	676			755
Net realized investment gains (losses)	(76		)	41
Net income	$	600		$	796

_________________________________________________________

(1) The primary component of Interest Expense and Other was after-tax interest expense of $66 million and $70 million for the three months ended March 31, 2020 and 2019, respectively.

(in millions)	March 31, 2020		December 31, 2019
Asset reconciliation
Business Insurance	$	83,525	$	83,896
Bond & Specialty Insurance	8,690		8,599
Personal Insurance	16,666		17,015
Total assets by reportable segment	108,881		109,510
Other assets (1)	555		612
Total consolidated assets	$	109,436	$	110,122

 _________________________________________________________

(1)

The primary components of other assets at both March 31, 2020 and December 31, 2019 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets.