Consolidating Financial Statements (Unaudited) (tables)

12 Months Ended

Dec. 31, 2012

Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure

Consolidating Statement of Income (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF INCOME (Unaudited)
For the year ended December 31, 2012

(in millions)	TPC		Other Subsidiaries		Travelers(2)			Eliminations			Consolidated
Revenues
Premiums	$	15,158	$	7,199	$	—		$	—		$	22,357
Net investment income		1,912		968		9			—			2,889
Fee income		321		2		—			—			323
Net realized investment gains(1)		29		22		—			—			51
Other revenues		87		34		(1	)		—			120
Total revenues		17,507		8,225		8			—			25,740
Claims and expenses
Claims and claim adjustment expenses		9,908		4,768		—			—			14,676
Amortization of deferred acquisition costs		2,636		1,274		—			—			3,910
General and administrative expenses		2,445		1,161		4			—			3,610
Interest expense		73		—		305			—			378
Total claims and expenses		15,062		7,203		309			—			22,574
Income (loss) before income taxes		2,445		1,022		(301	)		—			3,166
Income tax expense (benefit)		588		224		(119	)		—			693
Net income of subsidiaries		—		—		2,655			(2,655	)		—
Net income	$	1,857	$	798	$	2,473		$	(2,655	)	$	2,473

(1)

Total other-than-temporary impairment (OTTI) for the year ended December 31, 2012, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries			Travelers(2)		Eliminations		Consolidated
Total OTTI gains	$	18		$	9		$	—	$	—	$	27
OTTI losses recognized in net realized investment gains	$	(9	)	$	(6	)	$	—	$	—	$	(15	)
OTTI gains recognized in OCI	$	27		$	15		$	—	$	—	$	42

(2)

The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF INCOME (Unaudited)
For the year ended December 31, 2011

(in millions)	TPC		Other Subsidiaries		Travelers(2)			Eliminations			Consolidated
Revenues
Premiums	$	14,903	$	7,187	$	—		$	—		$	22,090
Net investment income		1,933		938		8			—			2,879
Fee income		294		2		—			—			296
Net realized investment gains (losses)(1)		10		50		(5	)		—			55
Other revenues		103		23		—			—			126
Total revenues		17,243		8,200		3			—			25,446
Claims and expenses
Claims and claim adjustment expenses		10,906		5,370		—			—			16,276
Amortization of deferred acquisition costs		2,594		1,282		—			—			3,876
General and administrative expenses		2,377		1,152		27			—			3,556
Interest expense		73		—		313			—			386
Total claims and expenses		15,950		7,804		340			—			24,094
Income (loss) before income taxes		1,293		396		(337	)		—			1,352
Income tax expense (benefit)		111		14		(199	)		—			(74	)
Net income of subsidiaries		—		—		1,564			(1,564	)		—
Net income	$	1,182	$	382	$	1,426		$	(1,564	)	$	1,426

(1)

Total other-than-temporary impairment (OTTI) for the year ended December 31, 2011, and the amounts comprising total OTTI that were recognized in net realized investment gains (losses) and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries			Travelers(2)		Eliminations		Consolidated
Total OTTI gains	$	15		$	15		$	—	$	—	$	30
OTTI losses recognized in net realized investment gains (losses)	$	(15	)	$	(10	)	$	—	$	—	$	(25	)
OTTI gains recognized in OCI	$	30		$	25		$	—	$	—	$	55

(2)

The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF INCOME (Unaudited)
For the year ended December 31, 2010

(in millions)	TPC		Other Subsidiaries		Travelers(2)			Eliminations			Consolidated
Revenues
Premiums	$	14,445	$	6,987	$	—		$	—		$	21,432
Net investment income		2,078		970		11			—			3,059
Fee income		285		2		—			—			287
Net realized investment gains(1)		57		200		7			—			264
Other revenues		111		20		(60	)		(1	)		70
Total revenues		16,976		8,179		(42	)		(1	)		25,112
Claims and expenses
Claims and claim adjustment expenses		8,786		4,424		—			—			13,210
Amortization of deferred acquisition costs		2,548		1,254		—			—			3,802
General and administrative expenses		2,306		1,086		14			—			3,406
Interest expense		74		—		315			(1	)		388
Total claims and expenses		13,714		6,764		329			(1	)		20,806
Income (loss) before income taxes		3,262		1,415		(371	)		—			4,306
Income tax expense (benefit)		798		382		(90	)		—			1,090
Net income of subsidiaries		—		—		3,497			(3,497	)		—
Net income	$	2,464	$	1,033	$	3,216		$	(3,497	)	$	3,216

(1)

Total other-than-temporary impairment (OTTI) for the year ended December 31, 2010, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries			Travelers(2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	10		$	(3	)	$	—	$	—	$	7
OTTI losses recognized in net realized investment gains	$	(12	)	$	(14	)	$	—	$	—	$	(26	)
OTTI gains recognized in OCI	$	22		$	11		$	—	$	—	$	33

(2)

The Travelers Companies, Inc., excluding its subsidiaries.

Consolidating Statement of Comprehensive Income (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
For the year ended December 31, 2012

(in millions)	TPC			Other Subsidiaries			Travelers(1)			Eliminations			Consolidated
Net income	$	1,857		$	798		$	2,473		$	(2,655	)	$	2,473
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income		248			23			10			—			281
Having credit losses recognized in the consolidated statement of income		57			24			—			—			81
Net changes in benefit plan assets and obligations		(6	)		(5	)		(58	)		—			(69	)
Net changes in unrealized foreign currency translation and other changes		(19	)		62			—			—			43
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries		280			104			(48	)		—			336
Income tax expense (benefit)		101			21			(17	)		—			105
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries		179			83			(31	)		—			231
Other comprehensive income of subsidiaries		—			—			262			(262	)		—
Other comprehensive income		179			83			231			(262	)		231
Comprehensive income	$	2,036		$	881		$	2,704		$	(2,917	)	$	2,704

(1)

The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
For the year ended December 31, 2011

(in millions)	TPC			Other Subsidiaries			Travelers(1)			Eliminations			Consolidated
Net income	$	1,182		$	382		$	1,426		$	(1,564	)	$	1,426
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income		1,100			472			(2	)		—			1,570
Having credit losses recognized in the consolidated statement of income		(10	)		14			—			—			4
Net changes in benefit plan assets and obligations		(5	)		1			(303	)		—			(307	)
Net changes in unrealized foreign currency translation and other changes		(76	)		(14	)		—			—			(90	)
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries		1,009			473			(305	)		—			1,177
Income tax expense (benefit)		356			177			(106	)		—			427
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries		653			296			(199	)		—			750
Other comprehensive income of subsidiaries		—			—			949			(949	)		—
Other comprehensive income		653			296			750			(949	)		750
Comprehensive income	$	1,835		$	678		$	2,176		$	(2,513	)	$	2,176

(1)

The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
For the year ended December 31, 2010

(in millions)	TPC			Other Subsidiaries			Travelers(1)		Eliminations			Consolidated
Net income	$	2,464		$	1,033		$	3,216	$	(3,497	)	$	3,216
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income		(77	)		(42	)		1		—			(118	)
Having credit losses recognized in the consolidated statement of income		85			38			—		—			123
Net changes in benefit plan assets and obligations		3			3			33		—			39
Net changes in unrealized foreign currency translation and other changes		4			8			—		—			12
Other comprehensive income before income taxes and other comprehensive income of subsidiaries		15			7			34		—			56
Income tax expense		—			9			11		—			20
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries		15			(2	)		23		—			36
Other comprehensive income of subsidiaries		—			—			13		(13	)		—
Other comprehensive income (loss)		15			(2	)		36		(13	)		36
Comprehensive income	$	2,479		$	1,031		$	3,252	$	(3,510	)	$	3,252

(1)

The Travelers Companies, Inc., excluding its subsidiaries.

Consolidating Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)
At December 31, 2012

(in millions)	TPC		Other Subsidiaries		Travelers(1)			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $60,829)	$	44,336	$	21,019	$	38		$	—		$	65,393
Equity securities, available for sale, at fair value (cost $462)		153		386		106			—			645
Real estate investments		33		850		—			—			883
Short-term securities		1,187		338		1,958			—			3,483
Other investments		2,443		990		1			—			3,434
Total investments		48,152		23,583		2,103			—			73,838
Cash		177		151		2			—			330
Investment income accrued		507		240		5			—			752
Premiums receivable		3,944		1,928		—			—			5,872
Reinsurance recoverables		7,112		3,600		—			—			10,712
Ceded unearned premiums		698		158		—			—			856
Deferred acquisition costs		1,560		232		—			—			1,792
Contractholder receivables		3,540		1,266		—			—			4,806
Goodwill		2,411		954		—			—			3,365
Other intangible assets		268		113		—			—			381
Investment in subsidiaries		—		—		28,562			(28,562	)		—
Other assets		1,930		286		18			—			2,234
Total assets	$	70,299	$	32,511	$	30,690		$	(28,562	)	$	104,938
Liabilities
Claims and claim adjustment expense reserves	$	33,598	$	17,324	$	—		$	—		$	50,922
Unearned premium reserves		7,751		3,490		—			—			11,241
Contractholder payables		3,540		1,266		—			—			4,806
Payables for reinsurance premiums		151		195		—			—			346
Deferred taxes		316		123		(101	)		—			338
Debt		1,191		—		5,159			—			6,350
Other liabilities		4,107		1,186		237			—			5,530
Total liabilities		50,654		23,584		5,295			—			79,533
Shareholders' equity
Common stock (1,750.0 shares authorized; 377.4 shares issued and outstanding)		—		390		21,161			(390	)		21,161
Additional paid-in capital		11,135		6,501		—			(17,636	)		—
Retained earnings		6,404		1,113		21,342			(7,507	)		21,352
Accumulated other comprehensive income		2,106		923		2,236			(3,029	)		2,236
Treasury stock, at cost (372.3 shares)		—		—		(19,344	)		—			(19,344	)
Total shareholders' equity		19,645		8,927		25,395			(28,562	)		25,405
Total liabilities and shareholders' equity	$	70,299	$	32,511	$	30,690		$	(28,562	)	$	104,938

(1)

The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING BALANCE SHEET (Unaudited)
At December 31, 2011

(in millions)	TPC			Other Subsidiaries			Travelers(1)			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $59,994)	$	43,438		$	20,761		$	33		$	—		$	64,232
Equity securities, available for sale, at fair value (cost $414)		146			319			94			—			559
Real estate investments		33			832			—			—			865
Short-term securities		879			376			2,339			—			3,594
Other investments		2,446			1,004			1			—			3,451
Total investments		46,942			23,292			2,467			—			72,701
Cash		114			98			2			—			214
Investment income accrued		517			251			—			—			768
Premiums receivable		3,865			1,865			—			—			5,730
Reinsurance recoverables		7,372			3,783			—			—			11,155
Ceded unearned premiums		656			172			—			—			828
Deferred acquisition costs		1,536			250			—			—			1,786
Deferred taxes		(82	)		(47	)		136			—			7
Contractholder receivables		3,891			1,295			—			—			5,186
Goodwill		2,411			954			—			—			3,365
Other intangible assets		297			136			—			—			433
Investment in subsidiaries		—			—			27,565			(27,565	)		—
Other assets		1,983			52			367			—			2,402
Total assets	$	69,502		$	32,101		$	30,537		$	(27,565	)	$	104,575
Liabilities
Claims and claim adjustment expense reserves	$	33,727		$	17,665		$	—		$	—		$	51,392
Unearned premium reserves		7,644			3,458			—			—			11,102
Contractholder payables		3,891			1,295			—			—			5,186
Payables for reinsurance premiums		178			211			—			—			389
Debt		1,190			—			5,415			—			6,605
Other liabilities		3,910			859			655			—			5,424
Total liabilities		50,540			23,488			6,070			—			80,098
Shareholders' equity
Common stock (1,750.0 shares authorized; 392.8 shares issued and outstanding)		—			390			20,732			(390	)		20,732
Additional paid-in capital		11,135			6,501			—			(17,636	)		—
Retained earnings		5,900			882			19,569			(6,772	)		19,579
Accumulated other comprehensive income		1,927			840			2,005			(2,767	)		2,005
Treasury stock, at cost (349.0 shares)		—			—			(17,839	)		—			(17,839	)
Total shareholders' equity		18,962			8,613			24,467			(27,565	)		24,477
Total liabilities and shareholders' equity	$	69,502		$	32,101		$	30,537		$	(27,565	)	$	104,575

(1)

The Travelers Companies, Inc., excluding its subsidiaries.

Consolidating Statement of Cash Flows (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the twelve months ended December 31, 2012

(in millions)	TPC			Other Subsidiaries			Travelers(1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,857		$	798		$	2,473		$	(2,655	)	$	2,473
Net adjustments to reconcile net income to net cash provided by operating activities		715			7			(700	)		735			757
Net cash provided by operating activities		2,572			805			1,773			(1,920	)		3,230
Cash flows from investing activities
Proceeds from maturities of fixed maturities		5,905			2,462			2			—			8,369
Proceeds from sales of investments:
Fixed maturities		730			355			2			—			1,087
Equity securities		21			16			—			—			37
Real estate investments		—			53			—			—			53
Other investments		555			280			—			—			835
Purchases of investments:
Fixed maturities		(7,361	)		(3,077	)		(9	)		—			(10,447	)
Equity securities		(18	)		(28	)		(2	)		—			(48	)
Real estate investments		—			(95	)		—			—			(95	)
Other investments		(371	)		(163	)		—			—			(534	)
Net sales (purchases) of short-term securities		(308	)		44			381			—			117
Securities transactions in course of settlement		14			(36	)		(1	)		—			(23	)
Other		(323	)		—			—			—			(323	)
Net cash provided by (used in) investing activities		(1,156	)		(189	)		373			—			(972	)
Cash flows from financing activities
Payment of debt		—			—			(258	)		—			(258	)
Dividends paid to shareholders		—			—			(694	)		—			(694	)
Issuance of common stock—employee share options		—			—			295			—			295
Treasury stock acquired—share repurchase authorization		—			—			(1,474	)		—			(1,474	)
Treasury stock acquired—net employee share-based compensation		—			—			(53	)		—			(53	)
Excess tax benefits from share-based payment arrangements		—			—			38			—			38
Dividends paid to parent company		(1,353	)		(567	)		—			1,920			—
Net cash used in financing activities		(1,353	)		(567	)		(2,146	)		1,920			(2,146	)
Effect of exchange rate changes on cash		—			4			—			—			4
Net increase in cash		63			53			—			—			116
Cash at beginning of year		114			98			2			—			214
Cash at end of year	$	177		$	151		$	2		$	—		$	330
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	287		$	108		$	(207	)	$	—		$	188
Interest paid	$	73		$	—		$	302		$	—		$	375

(1)

The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the twelve months ended December 31, 2011

(in millions)	TPC			Other Subsidiaries			Travelers(1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,182		$	382		$	1,426		$	(1,564	)	$	1,426
Net adjustments to reconcile net income to net cash provided by operating activities		736			98			635			(726	)		743
Net cash provided by operating activities		1,918			480			2,061			(2,290	)		2,169
Cash flows from investing activities
Proceeds from maturities of fixed maturities		4,902			2,502			—			—			7,404
Proceeds from sales of investments:
Fixed maturities		720			440			1			—			1,161
Equity securities		82			53			—			—			135
Real estate investments		1			—			—			—			1
Other investments		343			251			—			—			594
Purchases of investments:
Fixed maturities		(5,714	)		(2,978	)		(12	)		—			(8,704	)
Equity securities		(30	)		(71	)		(30	)		—			(131	)
Real estate investments		(24	)		(42	)		—			—			(66	)
Other investments		(711	)		(178	)		—			—			(889	)
Net sales (purchases) of short-term securities		717			25			1,276			—			2,018
Securities transactions in course of settlement		(46	)		46			—			—			—
Other		(351	)		(20	)		—			—			(371	)
Net cash provided by (used in) investing activities		(111	)		28			1,235			—			1,152
Cash flows from financing activities
Payment of debt		—			(8	)		—			—			(8	)
Dividends paid to shareholders		—			—			(665	)		—			(665	)
Issuance of common stock—employee share options		—			—			314			—			314
Treasury stock acquired—share repurchase authorization		—			—			(2,919	)		—			(2,919	)
Treasury stock acquired—net employee share-based compensation		—			—			(46	)		—			(46	)
Excess tax benefits from share-based payment arrangements		—			—			18			—			18
Dividends paid to parent company		(1,779	)		(521	)		—			2,300			—
Capital contributions, loans and other transactions between subsidiaries		—			10			—			(10	)		—
Net cash used in financing activities		(1,779	)		(519	)		(3,298	)		2,290			(3,306	)
Effect of exchange rate changes on cash		—			(1	)		—			—			(1	)
Net increase (decrease) in cash		28			(12	)		(2	)		—			14
Cash at beginning of year		86			110			4			—			200
Cash at end of year	$	114		$	98		$	2		$	—		$	214
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	206		$	109		$	(97	)	$	—		$	218
Interest paid	$	73		$	—		$	309		$	—		$	382

(1)

The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the twelve months ended December 31, 2010

(in millions)	TPC			Other Subsidiaries			Travelers(1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	2,464		$	1,033		$	3,216		$	(3,497	)	$	3,216
Net adjustments to reconcile net income to net cash provided by operating activities		(77	)		(514	)		3,626			(3,197	)		(162	)
Net cash provided by operating activities		2,387			519			6,842			(6,694	)		3,054
Cash flows from investing activities
Proceeds from maturities of fixed maturities		3,920			1,966			10			—			5,896
Proceeds from sales of investments:
Fixed maturities		2,289			1,424			—			—			3,713
Equity securities		29			148			24			—			201
Real estate investments		—			10			—			—			10
Other investments		338			280			99			—			717
Purchases of investments:
Fixed maturities		(4,201	)		(2,576	)		(8	)		—			(6,785	)
Equity securities		(2	)		(33	)		(26	)		—			(61	)
Real estate investments		—			(21	)		—			—			(21	)
Other investments		(305	)		(209	)		—			—			(514	)
Net sales (purchases) of short-term securities		632			392			(1,723	)		—			(699	)
Securities transactions in course of settlement		(4	)		(26	)		—			—			(30	)
Other		(313	)		(5	)		—			—			(318	)
Net cash provided by (used in) investing activities		2,383			1,350			(1,624	)		—			2,109
Cash flows from financing activities
Payment of debt		(4	)		—			(1,156	)		—			(1,160	)
Issuance of debt		—			—			1,234			—			1,234
Dividends paid to shareholders		—			—			(673	)		—			(673	)
Issuance of common stock—employee share options		—			—			408			—			408
Treasury stock acquired—share repurchase authorization		—			—			(4,998	)		—			(4,998	)
Treasury stock acquired—net employee share-based compensation		—			—			(40	)		—			(40	)
Excess tax benefits from share-based payment arrangements		—			—			8			—			8
Dividends paid to parent company		(4,827	)		(1,849	)		—			6,676			—
Capital contributions, loans and other transactions between subsidiaries		15			(35	)		2			18			—
Net cash used in financing activities		(4,816	)		(1,884	)		(5,215	)		6,694			(5,221	)
Effect of exchange rate changes on cash		—			3			—			—			3
Net increase (decrease) in cash		(46	)		(12	)		3			—			(55	)
Cash at beginning of year		132			122			1			—			255
Cash at end of year	$	86		$	110		$	4		$	—		$	200
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	579		$	321		$	(116	)	$	—		$	784
Interest paid	$	73		$	—		$	324		$	—		$	397

(1)

The Travelers Companies, Inc., excluding its subsidiaries.