Schedule II

12 Months Ended

Dec. 31, 2023

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,	2023		2022		2021
Revenues
Net investment income	$	92	$	30	$	13
Net realized investment gains (losses)	37		(51)		28
Total revenues	129		(21)		41
Expenses
Interest	328		303		292
Other	(18)		13		13
Total expenses	310		316		305
Loss before income taxes and net income of subsidiaries	(181)		(337)		(264)
Income tax benefit	(58)		(99)		(59)
Loss before net income of subsidiaries	(123)		(238)		(205)
Net income of subsidiaries	3,114		3,080		3,867
Net income	$	2,991	$	2,842	$	3,662

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,	2023		2022		2021
Net income	$	2,991	$	2,842	$	3,662
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	3		(12)		(4)
Net changes in benefit plan assets and obligations	111		(105)		444
Other comprehensive income (loss) before income taxes and other comprehensive income (loss) of subsidiaries	114		(117)		440
Income tax expense (benefit)	30		(38)		87
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries	84		(79)		353
Other comprehensive income (loss) of subsidiaries	1,890		(7,559)		(1,662)
Other comprehensive income (loss)	1,974		(7,638)		(1,309)
Comprehensive income (loss)	$	4,965	$	(4,796)	$	2,353

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,	2023		2022
Assets
Fixed maturities	$	182	$	112
Equity securities	241		234
Short-term securities	1,494		1,406
Investment in subsidiaries	29,946		26,098
Other assets	549		748
Total assets	$	32,412	$	28,598
Liabilities
Debt	$	7,336	$	6,597
Other liabilities	146		433
Total liabilities	7,482		7,030
Shareholders’ equity
Common stock (1,750.0 shares authorized; 228.2 and 232.1 shares issued and outstanding)	24,906		24,565
Retained earnings	45,600		43,524
Accumulated other comprehensive loss	(4,471)		(6,445)
Treasury stock, at cost (559.2 and 553.5 shares)	(41,105)		(40,076)
Total shareholders’ equity	24,930		21,568
Total liabilities and shareholders’ equity	$	32,412	$	28,598

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,	2023		2022		2021
Cash flows from operating activities
Net income	$	2,991	$	2,842	$	3,662
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(3,114)		(3,080)		(3,867)
Dividends received from consolidated subsidiaries	1,125		2,860		2,149
Capital received from subsidiaries	18		—		—
Deferred federal income tax expense	17		14		7
Change in income taxes payable	(2)		(13)		—
Other	142		7		(69)
Net cash provided by operating activities	1,177		2,630		1,882
Cash flows from investing activities
Net sales (purchases) of short-term securities	(88)		73		167
Other investments, net	(37)		(35)		(11)
Net cash provided by (used in) investing activities	(125)		38		156
Cash flows from financing activities
Treasury stock acquired—share repurchase authorizations	(958)		(2,000)		(2,156)
Treasury stock acquired—net employee share-based compensation	(64)		(61)		(44)
Dividends paid to shareholders	(908)		(875)		(869)

Issuance of debt	738		—		739
Issuance of common stock—employee share options	141		267		293

Net cash used in financing activities	(1,051)		(2,669)		(2,037)
Net increase (decrease) in cash	1		(1)		1
Cash at beginning of year	—		1		—
Cash at end of year	$	1	$	—	$	1

Supplemental disclosure of cash flow information
Cash received during the year for taxes	$	73	$	100	$	66
Cash paid during the year for interest	$	322	$	301	$	289

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, reinsurance and banking facility 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; the likelihood for any payment under these guarantees is remote.