Goodwill and Other Intangible Assets (tables)

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Assets disclosure

Goodwill by segment [Table Text Block]

(in millions)	2012		2011
Business Insurance	$	2,168	$	2,168
Financial, Professional & International Insurance		557		557
Personal Insurance		613		613
Other		27		27
Total	$	3,365	$	3,365

Other intangible assets by major asset class [Table Text Block]

(at December 31, 2012, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Intangibles subject to amortization
Customer-related(1)	$	455	$	383	$	72
Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables(2)		191		98		93
Total intangible assets subject to amortization		646		481		165
Intangible assets not subject to amortization		216		—		216
Total other intangible assets	$	862	$	481	$	381

(at December 31, 2011, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Intangibles subject to amortization
Customer-related	$	935	$	830	$	105
Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables(2)		191		79		112
Total intangible assets subject to amortization		1,126		909		217
Intangible assets not subject to amortization		216		—		216
Total other intangible assets	$	1,342	$	909	$	433

(1)

Certain intangible assets related to renewal rights became fully amortized during the first quarter of 2012.

(2)

The fair value adjustment of $191 million was recorded in connection with the merger of The St. Paul Companies, Inc. and Travelers Property Casualty Corp. in 2004 and was based on management's estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustment is reported as an other intangible asset on the consolidated balance sheet, and the amounts measured in accordance with the acquirer's accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible asset is being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible asset run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods.

Amortization expense for other intangible assets by major asset class [Table Text Block]

(for the year ended December 31, in millions)	2012		2011		2010
Customer-related	$	33	$	47	$	61
Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables		19		22		25
Total amortization expense	$	52	$	69	$	86