Goodwill and Other Intangible Assets (tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Other Intangible Assets disclosure

Goodwill by segment [Table Text Block]

(at December 31, in millions)	2015		2014
Business and International Insurance(1)	$	2,439	$	2,477
Bond & Specialty Insurance		496		496
Personal Insurance		612		612
Other		26		26
Total	$	3,573	$	3,611

(1)

Includes goodwill associated with the Company's international business which is subject to the impact of changes in foreign currency exchange rates.

Other intangible assets [Table Text Block]

(at December 31, 2015, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization(1)	$	210	$	148	$	62
Not subject to amortization		217		—		217
Total	$	427	$	148	$	279

(at December 31, 2014, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization(1)	$	669	$	582	$	87
Not subject to amortization		217		—		217
Total	$	886	$	582	$	304

(1)

Intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract and customer-related intangibles. At December 31, 2014, the Company had certain customer-related intangibles with a gross carrying amount of $460 million and accumulated amortization of $446 million which became fully amortized during the second quarter of 2015. Fair value adjustments of $5 million and $191 million were recorded in connection with the acquisition of Dominion in 2013 and in connection with the merger of The St. Paul Companies, Inc. and Travelers Property Casualty Corp. in 2004, respectively, and were 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 adjustments are reported as other intangible assets 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 assets are 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 assets 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. Additionally, $5 million of contract-related intangibles were recorded related to operating leases in connection with the acquisition of Dominion in 2013.