Schedule II

12 Months Ended

Dec. 31, 2022

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,	2022		2021		2020
Revenues
Net investment income	$	30	$	13	$	19
Net realized investment gains (losses)	(51)		28		27
Total revenues	(21)		41		46
Expenses
Interest	303		292		292
Other	13		13		18
Total expenses	316		305		310
Loss before income taxes and net income of subsidiaries	(337)		(264)		(264)
Income tax benefit	(99)		(59)		(61)
Loss before net income of subsidiaries	(238)		(205)		(203)
Net income of subsidiaries	3,080		3,867		2,900
Net income	$	2,842	$	3,662	$	2,697

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 (LOSS)


For the year ended December 31,	2022		2021		2020
Net income	$	2,842	$	3,662	$	2,697
Other comprehensive income (loss)—parent company:
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the condensed statement of income	(12)		(4)		3
Net changes in benefit plan assets and obligations	(105)		444		25
Other comprehensive income (loss) before income taxes and other comprehensive income (loss) of subsidiaries	(117)		440		28
Income tax expense (benefit)	(38)		87		9
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries	(79)		353		19
Other comprehensive income (loss) of subsidiaries	(7,559)		(1,662)		1,843
Other comprehensive income (loss)	(7,638)		(1,309)		1,862
Comprehensive income (loss)	$	(4,796)	$	2,353	$	4,559

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,	2022		2021
Assets
Fixed maturities	$	112	$	95
Equity securities	234		279
Short-term securities	1,406		1,479
Investment in subsidiaries	26,098		33,298
Other assets	748		704
Total assets	$	28,598	$	35,855
Liabilities
Debt	$	6,597	$	6,596
Other liabilities	433		366
Total liabilities	7,030		6,962
Shareholders’ equity
Common stock (1,750.0 shares authorized; 232.1 and 241.2 shares issued and outstanding)	24,565		24,154
Retained earnings	43,524		41,561
Accumulated other comprehensive income (loss)	(6,445)		1,193
Treasury stock, at cost (553.5 and 541.5 shares)	(40,076)		(38,015)
Total shareholders’ equity	21,568		28,893
Total liabilities and shareholders’ equity	$	28,598	$	35,855

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,	2022		2021		2020
Cash flows from operating activities
Net income	$	2,842	$	3,662	$	2,697
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(3,080)		(3,867)		(2,900)
Dividends received from consolidated subsidiaries	2,860		2,149		1,964
Deferred federal income tax expense	14		7		3
Change in income taxes payable	(13)		—		(6)
Other	7		(69)		(79)
Net cash provided by operating activities	2,630		1,882		1,679
Cash flows from investing activities
Net sales (purchases) of short-term securities	73		167		(256)
Other investments, net	(35)		(11)		(7)
Net cash provided by (used in) investing activities	38		156		(263)
Cash flows from financing activities
Treasury stock acquired—share repurchase authorization	(2,000)		(2,156)		(625)
Treasury stock acquired—net employee share-based compensation	(61)		(44)		(47)
Dividends paid to shareholders	(875)		(869)		(861)
Payment of debt	—		—		(500)
Issuance of debt	—		739		490
Issuance of common stock—employee share options	267		293		127

Net cash used in financing activities	(2,669)		(2,037)		(1,416)
Net increase (decrease) in cash	(1)		1		—
Cash at beginning of year	1		—		—
Cash at end of year	$	—	$	1	$	—

Supplemental disclosure of cash flow information
Cash received during the year for taxes	$	100	$	66	$	81
Cash paid during the year for interest	$	301	$	289	$	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 and reinsurance obligations of certain subsidiaries 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.