Schedule II

12 Months Ended

Dec. 31, 2011

Schedule II

Schedule II [Text Block]

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,	2011			2010			2009
Revenues
Net investment income	$	8		$	11		$	24
Net realized investment gains (losses)		(5	)		7			128
Other revenues		—			(60	)		—
Total revenues		3			(42	)		152
Expenses
Interest		313			315			311
Other		27			14			(3	)
Total expenses		340			329			308
Loss before income taxes and equity in net income of subsidiaries		(337	)		(371	)		(156	)
Income tax benefit		(199	)		(90	)		(95	)
Loss before equity in net income of subsidiaries		(138	)		(281	)		(61	)
Equity in net income of subsidiaries		1,564			3,497			3,683
Net income	$	1,426		$	3,216		$	3,622
For the year ended December 31,	2011			2010			2009
Net Realized Investment Gains (Losses)
Other-than-temporary impairment losses:
Total losses	$	—		$	—		$	(1	)
Non-credit component of impairments recognized in accumulated other changes in equity from nonowner sources		—			—			—
Other-than-temporary impairment losses		—			—			(1	)
Other net realized investment gains (losses)		(5	)		7			129
Net realized investment gains (losses)	$	(5	)	$	7		$	128

        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.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)

CONDENSED BALANCE SHEET

At December 31,	2011			2010
Assets
Fixed maturities	$	33		$	20
Equity securities		94			66
Short-term securities		2,339			3,584
Investment in subsidiaries		27,565			27,422
Other assets		506			139
Total assets	$	30,537		$	31,231
Liabilities
Debt	$	5,415		$	5,460
Other liabilities		655			298
Total liabilities		6,070			5,758
Shareholders' equity
Preferred Stock Savings Plan—convertible preferred stock (0.0 and 0.2 shares issued and outstanding)		—			68
Common stock (1,750.0 and 1,748.6 shares authorized, 392.8 and 434.6 shares issued and outstanding)		20,732			20,162
Retained earnings		19,569			18,845
Accumulated other changes in equity from nonowner sources		2,005			1,255
Treasury stock, at cost (349.0 and 296.6 shares)		(17,839	)		(14,857	)
Total shareholders' equity		24,467			25,473
Total liabilities and shareholders' equity	$	30,537		$	31,231

        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.

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,	2011			2010			2009
Cash flows from operating activities
Net income	$	1,426		$	3,216		$	3,622
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries		(1,564	)		(3,497	)		(3,683	)
Dividends received from consolidated subsidiaries		2,300			6,676			3,497
Capital (contributed to) repaid from subsidiaries		(10	)		19			20
Deferred federal income tax (benefit) expense		43			(46	)		100
Change in income taxes payable		(162	)		63			22
Other		28			411			(301	)
Net cash provided by operating activities		2,061			6,842			3,277
Cash flows from investing activities
Net sales (purchases) of short-term securities		1,276			(1,723	)		(21	)
Other investments, net		(41	)		99			183
Net cash provided by (used in) investing activities		1,235			(1,624	)		162
Cash flows from financing activities
Issuance of debt		—			1,234			494
Payment of debt		—			(1,156	)		(141	)
Dividends paid to shareholders		(665	)		(673	)		(693	)
Treasury stock acquired—share repurchase authorization		(2,919	)		(4,998	)		(3,259	)
Treasury stock acquired—net employee share-based compensation		(46	)		(40	)		(29	)
Issuance of common stock—employee share options		314			408			180
Other		18			10			10
Net cash used in financing activities		(3,298	)		(5,215	)		(3,438	)
Net increase (decrease) in cash		(2	)		3			1
Cash at beginning of year		4			1			—
Cash at end of year	$	2		$	4		$	1
Supplemental disclosure of cash flow information
Cash received during the year for taxes	$	97		$	116		$	225
Cash paid during the year for interest	$	309		$	324		$	312

        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.

THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT

1.     OTHER REVENUES

        In 2010, other revenues included $60 million of expenses related to the Company's purchase and retirement of $885 million of its $1.0 billion 6.25% fixed-to-floating rate junior subordinated debentures.

2.     GUARANTEES

        The Travelers Companies, Inc. (TRV) has contingent obligations for guarantees related to its subsidiary's debt obligations and various other indemnifications, including those related to the sale of business entities. TRV also provides standard indemnifications to service providers in the normal course of business. The indemnification clauses are often standard contractual terms. Certain of these guarantees and indemnifications have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, TRV is unable to develop an estimate of the maximum potential payments for such arrangements.

        In the ordinary course of selling business entities to third parties, TRV has agreed to indemnify purchasers for losses arising out of breaches of representations and warranties with respect to the business entities being sold, covenants and obligations of TRV and/or its subsidiaries following the closing, and in certain cases obligations arising from undisclosed liabilities, adverse reserve development, imposition of additional taxes due to either a change in the tax law or an adverse interpretation of the tax law, or certain named litigation. Such indemnification provisions generally survive for periods ranging from eight years following the applicable closing date to the expiration of the relevant statutes of limitations, although, in some cases, there may be other agreed upon term limitations or no term limitations. Certain of these contingent obligations are subject to deductibles which have to be incurred by the obligee before TRV is obligated to make payments. The maximum amount of TRV's contingent obligation for indemnifications related to the sale of business entities that are quantifiable was $93 million at December 31, 2011, of which $9 million was recognized on the balance sheet at that date.

        TRV has fully and unconditionally guaranteed certain debt obligations of TPC, its wholly-owned subsidiary, which totaled $1.20 billion at December 31, 2011. Prior to the merger of TPC and SPC in 2004, TPC fully and unconditionally guaranteed the payment of all principal, premiums, if any, and interest on certain debt obligations of its wholly-owned subsidiary TIGHI. TRV has fully and unconditionally guaranteed such guarantee obligations of TPC. See note 17 of notes to the Company's consolidated financial statements.