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Schedule II
 12 Months Ended
Dec. 31, 2015
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,
  2015   2014   2013  

Revenues

                    

Net investment income

   $ 7   $ 6   $ 7  

Net realized investment gains(1)

     1     3     2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total revenues

     8     9     9  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Expenses

                    

Interest

     325     321     308  

Other

     16     15     13  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total expenses

     341     336     321  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss before income taxes and net income of subsidiaries

     (333 )   (327 )   (312 )

Income tax benefit

     (108 )   (115 )   (170 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss before net income of subsidiaries

     (225 )   (212 )   (142 )

Net income of subsidiaries

     3,664     3,904     3,815  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income

   $ 3,439   $ 3,692   $ 3,673  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(1)
The parent company had no other-than-temporary impairment gains or losses recognized in net realized investment gains or in other comprehensive income during the years ended December 31, 2015, 2014 and 2013.

        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 accompanying 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

For the year ended December 31,
  2015   2014   2013  

Consolidated net income

   $ 3,439   $ 3,692   $ 3,673  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other comprehensive income (loss)—parent company:

                    

Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income

     (3 )   6     19  

Net changes in benefit plan assets and obligations

     64     (471 )   616  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other comprehensive income (loss) before income taxes and other comprehensive income (loss) of subsidiaries

     61     (465 )   635  

Income tax expense (benefit)

     21     (163 )   222  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries

     40     (302 )   413  

Other comprehensive income (loss) of subsidiaries

     (1,077 )   372     (1,839 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Consolidated other comprehensive income (loss)

     (1,037 )   70     (1,426 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Consolidated comprehensive income

   $ 2,402   $ 3,762   $ 2,247  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

        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 accompanying 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,
  2015   2014  

Assets

              

Fixed maturities

   $ 46   $ 30  

Equity securities

     141     141  

Short-term securities

     1,546     1,530  

Investment in subsidiaries

     27,573     28,821  

Other assets

     58     72  
​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 29,364   $ 30,594  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

Liabilities

              

Debt

   $ 5,651   $ 5,657  

Other liabilities

     127     114  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities

     5,778     5,771  
​ ​ ​ ​ ​ ​ ​ ​

Shareholders' equity

              

Common stock (1,750.0 shares authorized, 295.9 and 322.2 shares issued and outstanding)

     22,172     21,843  

Retained earnings

     29,933     27,238  

Accumulated other comprehensive income (loss)

     (157 )   880  

Treasury stock, at cost (467.6 and 437.3 shares)

     (28,362 )   (25,138 )
​ ​ ​ ​ ​ ​ ​ ​

Total shareholders' equity

     23,586     24,823  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities and shareholders' equity

   $ 29,364   $ 30,594  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

        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 accompanying 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,
  2015   2014   2013  

Cash flows from operating activities

                    

Net income

   $ 3,439   $ 3,692   $ 3,673  

Adjustments to reconcile net income to net cash provided by operating activities:

                    

Equity in net income of subsidiaries

     (3,664 )   (3,904 )   (3,815 )

Dividends received from consolidated subsidiaries

     3,833     4,071     2,423  

Capital received from (contributed to) subsidiaries

     3     —     (500 )

Deferred federal income tax expense (benefit)

     (6 )   51     (59 )

Change in income taxes payable

     51     (87 )   48  

Other

     113     (13 )   238  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by operating activities

     3,769     3,810     2,008  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash flows from investing activities

                    

Net sales (purchases) of short-term securities

     (16 )   (7 )   435  

Other investments, net

     (20 )   5     (3 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by (used in) investing activities

     (36 )   (2 )   432  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash flows from financing activities

                    

Treasury stock acquired—share repurchase authorization

     (3,150 )   (3,275 )   (2,400 )

Treasury stock acquired—net employee share-based compensation

     (74 )   (57 )   (61 )

Dividends paid to shareholders

     (739 )   (729 )   (729 )

Payment of debt

     (400 )   —     —  

Issuance of debt

     392     —     494  

Issuance of common stock—employee share options

     183     195     206  

Other

     55     57     51  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash used in financing activities

     (3,733 )   (3,809 )   (2,439 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net increase (decrease) in cash

     —     (1 )   1  

Cash at beginning of year

     2     3     2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash at end of year

   $ 2   $ 2   $ 3  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Supplemental disclosure of cash flow information

                    

Cash received during the year for taxes

   $ 209   $ 136   $ 210  

Cash paid during the year for interest

   $ 318   $ 318   $ 295  

        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 accompanying Report of Independent Registered Public Accounting Firm.

 


THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT

1.     GUARANTEES

        In the ordinary course of selling businesses to third parties, The Travelers Companies, Inc. (TRV) has agreed to indemnify purchasers for losses arising out of breaches of representations and warranties with respect to the businesses being sold, covenants and obligations of TRV and/or its subsidiaries, and in certain cases, obligations arising from certain liabilities. Such indemnification provisions generally are applicable from the closing date to the expiration of the relevant statutes of limitations, although, in some cases, there may be 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 businesses that are quantifiable was $44 million at December 31, 2015, of which $2 million was recognized on the balance sheet at that date.

        TRV also has contingent obligations for guarantees related to its subsidiary's debt obligations and various other indemnifications. TRV also provides standard indemnifications to service providers in the normal course of business. The indemnification clauses are often standard contractual terms.

        Certain of the guarantees and indemnifications described above 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.

        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.