Schedule II

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule II

THE TRAVELERS COMPANIES, INC.

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)

CONDENSED STATEMENT OF INCOME


For the year ended December 31,	2020		2019		2018
Revenues
Net investment income	$	19	$	41	$	32
Net realized investment gains (losses)	27		33		(13)
Total revenues	46		74		19
Expenses
Interest	292		297		304
Other	18		21		20
Total expenses	310		318		324
Loss before income taxes and net income of subsidiaries	(264)		(244)		(305)
Income tax benefit	(61)		(77)		(114)
Loss before net income of subsidiaries	(203)		(167)		(191)
Net income of subsidiaries	2,900		2,789		2,714
Net income	$	2,697	$	2,622	$	2,523

The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto.

See the Report of Independent Registered Public Accounting Firm.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)

CONDENSED STATEMENT OF COMPREHENSIVE INCOME


For the year ended December 31,	2020		2019		2018
Net income	$	2,697	$	2,622	$	2,523
Other comprehensive income (loss)—parent company:
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income	3		4		—
Net changes in benefit plan assets and obligations	25		35		(53)
Other comprehensive income (loss) before income taxes and other comprehensive income (loss) of subsidiaries	28		39		(53)
Income tax expense (benefit)	9		12		(17)
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries	19		27		(36)
Other comprehensive income (loss) of subsidiaries	1,843		2,472		(1,434)
Other comprehensive income (loss)	1,862		2,499		(1,470)
Comprehensive income	$	4,559	$	5,121	$	1,053

See the Report of Independent Registered Public Accounting Firm.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)

CONDENSED BALANCE SHEET


At December 31,	2020		2019
Assets
Fixed maturities	$	94	$	91
Equity securities	241		209
Short-term securities	1,646		1,390
Investment in subsidiaries	33,015		30,028
Other assets	330		336
Total assets	$	35,326	$	32,054
Liabilities
Debt	$	5,856	$	5,865
Other liabilities	262		239
Total liabilities	6,118		6,104
Shareholders’ equity
Common stock (1,750.0 shares authorized; 252.4 and 255.5 shares issued and outstanding)	23,743		23,469
Retained earnings	38,778		36,984
Accumulated other comprehensive income	2,502		640
Treasury stock, at cost (527.3 and 522.1 shares)	(35,815)		(35,143)
Total shareholders’ equity	29,208		25,950
Total liabilities and shareholders’ equity	$	35,326	$	32,054

See the Report of Independent Registered Public Accounting Firm.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(in millions)

CONDENSED STATEMENT OF CASH FLOWS


For the year ended December 31,	2020		2019		2018
Cash flows from operating activities
Net income	$	2,697	$	2,622	$	2,523
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(2,900)		(2,789)		(2,714)
Dividends received from consolidated subsidiaries	1,964		2,459		2,258
Deferred federal income tax expense (benefit)	3		(2)		28
Change in income taxes payable	(6)		3		100
Other	(79)		(79)		(35)
Net cash provided by operating activities	1,679		2,214		2,160
Cash flows from investing activities
Net purchases of short-term securities	(256)		(19)		(141)
Other investments, net	(7)		(8)		(7)
Net cash used in investing activities	(263)		(27)		(148)
Cash flows from financing activities
Treasury stock acquired—share repurchase authorization	(625)		(1,500)		(1,270)
Treasury stock acquired—net employee share-based compensation	(47)		(48)		(51)
Dividends paid to shareholders	(861)		(844)		(814)
Payment of debt	(500)		(500)		(600)
Issuance of debt	490		492		591
Issuance of common stock—employee share options	127		213		132

Net cash used in financing activities	(1,416)		(2,187)		(2,012)
Net increase in cash	—		—		—
Cash at beginning of year	—		—		—
Cash at end of year	$	—	$	—	$	—

Supplemental disclosure of cash flow information
Cash received during the year for taxes	$	81	$	78	$	283
Cash paid during the year for interest	$	291	$	291	$	300

See the Report of Independent Registered Public Accounting Firm.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.

(Parent Company Only)

NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT

1. GUARANTEES

The Travelers Companies, Inc. (TRV) fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033.

TRV also has contingent obligations for guarantees in connection with the selling of businesses to third parties, certain insurance obligations of a subsidiary and various indemnifications including indemnifications to service providers in the normal course of business. The guarantees and indemnification clauses are often standard contractual terms and include indemnifications for breaches of representations and warranties and in some cases obligations arising from certain liabilities. The terms of these provisions vary in duration and nature.

Certain of the guarantees and indemnifications described above have no stated or notional amounts or limitation to the maximum potential future payments. Accordingly, TRV is unable to provide an estimate of the maximum potential payments for such arrangements, and the likelihood for any payment under these guarantees is remote.