Schedule II

12 Months Ended

Dec. 31, 2021

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,	2021		2020		2019
Revenues
Net investment income	$	13	$	19	$	41
Net realized investment gains	28		27		33
Total revenues	41		46		74
Expenses
Interest	292		292		297
Other	13		18		21
Total expenses	305		310		318
Loss before income taxes and net income of subsidiaries	(264)		(264)		(244)
Income tax benefit	(59)		(61)		(77)
Loss before net income of subsidiaries	(205)		(203)		(167)
Net income of subsidiaries	3,867		2,900		2,789
Net income	$	3,662	$	2,697	$	2,622

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,	2021		2020		2019
Net income	$	3,662	$	2,697	$	2,622
Other comprehensive income (loss)—parent company:
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income	(4)		3		4
Net changes in benefit plan assets and obligations	444		25		35
Other comprehensive income before income taxes and other comprehensive income (loss) of subsidiaries	440		28		39
Income tax expense	87		9		12
Other comprehensive income, net of taxes, before other comprehensive income (loss) of subsidiaries	353		19		27
Other comprehensive income (loss) of subsidiaries	(1,662)		1,843		2,472
Other comprehensive income (loss)	(1,309)		1,862		2,499
Comprehensive income	$	2,353	$	4,559	$	5,121

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,	2021		2020
Assets
Fixed maturities	$	95	$	94
Equity securities	279		241
Short-term securities	1,479		1,646
Investment in subsidiaries	33,298		33,015
Other assets	704		330
Total assets	$	35,855	$	35,326
Liabilities
Debt	$	6,596	$	5,856
Other liabilities	366		262
Total liabilities	6,962		6,118
Shareholders’ equity
Common stock (1,750.0 shares authorized; 241.2 and 252.4 shares issued and outstanding)	24,154		23,743
Retained earnings	41,561		38,778
Accumulated other comprehensive income	1,193		2,502
Treasury stock, at cost (541.5 and 527.3 shares)	(38,015)		(35,815)
Total shareholders’ equity	28,893		29,208
Total liabilities and shareholders’ equity	$	35,855	$	35,326

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,	2021		2020		2019
Cash flows from operating activities
Net income	$	3,662	$	2,697	$	2,622
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(3,867)		(2,900)		(2,789)
Dividends received from consolidated subsidiaries	2,149		1,964		2,459
Deferred federal income tax expense (benefit)	7		3		(2)
Change in income taxes payable	—		(6)		3
Other	(69)		(79)		(79)
Net cash provided by operating activities	1,882		1,679		2,214
Cash flows from investing activities
Net sales (purchases) of short-term securities	167		(256)		(19)
Other investments, net	(11)		(7)		(8)
Net cash provided by (used in) investing activities	156		(263)		(27)
Cash flows from financing activities
Treasury stock acquired—share repurchase authorization	(2,156)		(625)		(1,500)
Treasury stock acquired—net employee share-based compensation	(44)		(47)		(48)
Dividends paid to shareholders	(869)		(861)		(844)
Payment of debt	—		(500)		(500)
Issuance of debt	739		490		492
Issuance of common stock—employee share options	293		127		213

Net cash used in financing activities	(2,037)		(1,416)		(2,187)
Net increase in cash	1		—		—
Cash at beginning of year	—		—		—
Cash at end of year	$	1	$	—	$	—

Supplemental disclosure of cash flow information
Cash received during the year for taxes	$	66	$	81	$	78
Cash paid during the year for interest	$	289	$	291	$	291

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 that it utilizes with 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.