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Segment Information
 12 Months Ended
Dec. 31, 2016
Segment Information disclosure  
Segment Information disclosure [Text Block]

2. SEGMENT INFORMATION

        The accounting policies used to prepare the segment reporting data for the Company's three reportable business segments are the same as those described in the Summary of Significant Accounting Policies in note 1.

        Except as described below for certain legal entities, the Company allocates its invested assets and the related net investment income to its reportable business segments. Pre-tax net investment income is allocated based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment. For investable funds, a benchmark investment yield is developed that reflects the estimated duration of the loss reserves' future cash flows, the interest rate environment at the time the losses were incurred and A+ rated corporate debt instrument yields. For capital, a benchmark investment yield is developed that reflects the average yield on the total investment portfolio. The benchmark investment yields are applied to each segment's investable funds and capital, respectively, to produce a total notional investment income by segment. The Company's actual net investment income is allocated to each segment in proportion to the respective segment's notional investment income to total notional investment income. There are certain legal entities within the Company that are dedicated to specific reportable business segments. The invested assets and related net investment income from these legal entities are reported in the applicable business segment and are not allocated among the other business segments.

        The cost of the Company's catastrophe treaty program is included in the Company's ceded premiums and is allocated among reportable business segments based on an estimate of actual market reinsurance pricing using expected losses calculated by the Company's catastrophe model, adjusted for any experience adjustments.

        The following tables summarize the components of the Company's operating revenues, operating income, net written premiums and total assets by reportable business segments.

(for the year ended December 31, in millions)
  Business and
International
Insurance		   Bond &
Specialty
Insurance		   Personal
Insurance		   Total
Reportable
Segments		  

2016

                          

Premiums

   $ 14,620   $ 2,088   $ 7,826   $ 24,534  

Net investment income

     1,763     210     329     2,302  

Fee income

     442     —     16     458  

Other revenues

     176     20     56     252  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total operating revenues(1)

   $ 17,001   $ 2,318   $ 8,227   $ 27,546  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Amortization and depreciation

   $ 2,956   $ 457   $ 1,391   $ 4,804  

Income tax expense

     659     307     191     1,157  

Operating income(1)

     2,048     653     510     3,211  

2015

    
 		    
 		    
 		    
 		  

Premiums

   $ 14,521   $ 2,085   $ 7,268   $ 23,874  

Net investment income

     1,824     223     332     2,379  

Fee income

     445     —     15     460  

Other revenues

     23     22     48     93  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total operating revenues(1)

   $ 16,813   $ 2,330   $ 7,663   $ 26,806  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Amortization and depreciation

   $ 2,907   $ 467   $ 1,322   $ 4,696  

Income tax expense

     769     272     402     1,443  

Operating income(1)

     2,170     633     889     3,692  

2014

    
 		    
 		    
 		    
 		  

Premiums

   $ 14,512   $ 2,076   $ 7,125   $ 23,713  

Net investment income

     2,156     252     379     2,787  

Fee income

     438     —     12     450  

Other revenues

     46     19     80     145  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total operating revenues(1)

   $ 17,152   $ 2,347   $ 7,596   $ 27,095  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Amortization and depreciation

   $ 2,909   $ 482   $ 1,347   $ 4,738  

Income tax expense

     798     348     366     1,512  

Operating income(1)

     2,347     727     824     3,898  
(1)
Operating revenues for reportable business segments exclude net realized investment gains. Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains.

        Net written premiums by market were as follows:

(for the year ended December 31, in millions)
  2016   2015   2014  

Business and International Insurance:

                    

Domestic:

                    

Select Accounts

   $ 2,729   $ 2,716   $ 2,707  

Middle Market

     6,463     6,302     6,077  

National Accounts

     1,058     1,048     1,047  

First Party

     1,601     1,564     1,579  

Specialized Distribution

     1,094     1,111     1,074  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Domestic

     12,945     12,741     12,484  

International

     1,730     1,842     2,152  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Business and International Insurance

     14,675     14,583     14,636  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Bond & Specialty Insurance

     2,099     2,081     2,103  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Personal Insurance:

                    

Automobile

     4,327     3,700     3,390  

Homeowners and Other

     3,857     3,757     3,775  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Personal Insurance

     8,184     7,457     7,165  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consolidated net written premiums

   $ 24,958   $ 24,121   $ 23,904  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Business Segment Reconciliations

(for the year ended December 31, in millions)
  2016   2015   2014  

Revenue reconciliation

                    

Earned premiums

                    

Business and International Insurance:

                    

Domestic:

                    

Workers' compensation

   $ 3,969   $ 3,867   $ 3,711  

Commercial automobile

     2,010     1,922     1,900  

Commercial property

     1,769     1,766     1,747  

General liability

     1,977     1,898     1,834  

Commercial multi-peril

     3,148     3,133     3,071  

Other

     31     39     42  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Domestic

     12,904     12,625     12,305  

International

     1,716     1,896     2,207  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Business and International Insurance

     14,620     14,521     14,512  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Bond & Specialty Insurance:

                    

Fidelity and surety

     962     954     936  

General liability

     946     955     963  

Other

     180     176     177  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Bond & Specialty Insurance

     2,088     2,085     2,076  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Personal Insurance:

                    

Automobile

     4,013     3,512     3,316  

Homeowners and Other

     3,813     3,756     3,809  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Personal Insurance

     7,826     7,268     7,125  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total earned premiums

     24,534     23,874     23,713  

Net investment income

     2,302     2,379     2,787  

Fee income

     458     460     450  

Other revenues

     252     93     145  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total operating revenues for reportable segments

     27,546     26,806     27,095  

Other revenues

     11     6     —  

Net realized investment gains

     68     3     79  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consolidated revenues

   $ 27,625   $ 26,815   $ 27,174  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income reconciliation, net of tax

                    

Total operating income for reportable segments

   $ 3,211   $ 3,692   $ 3,898  

Interest Expense and Other(1)

     (244 )   (255 )   (257 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total operating income

     2,967     3,437     3,641  

Net realized investment gains

     47     2     51  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consolidated net income

   $ 3,014   $ 3,439   $ 3,692  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(1)
The primary component of Interest Expense and Other was after-tax interest expense of $236 million, $242 million and $240 million in 2016, 2015 and 2014, respectively.


(at December 31, in millions)
  2016   2015  

Asset reconciliation:

              

Business and International Insurance

   $ 79,468   $ 79,692  

Bond & Specialty Insurance

     7,296     7,360  

Personal Insurance

     13,118     12,748  
​ ​ ​ ​ ​ ​ ​ ​

Total assets for reportable segments

     99,882     99,800  

Other assets(1)

     363     384  
​ ​ ​ ​ ​ ​ ​ ​

Total consolidated assets

   $ 100,245   $ 100,184  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
(1)
The primary components of other assets at December 31, 2016 and 2015 were other intangible assets and deferred taxes.

Enterprise-Wide Disclosures

        The Company does not have revenue from transactions with a single customer amounting to 10 percent or more of its revenues.

        The following table presents revenues of the Company's operations based on location:

(for the year ended December 31, in millions)
  2016   2015   2014  

U.S. 

   $ 25,904   $ 25,127   $ 25,103  

Non-U.S.:

                    

Canada

     1,154     1,202     1,474  

Other Non-U.S. 

     567     486     597  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Non-U.S. 

     1,721     1,688     2,071  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total revenues

   $ 27,625   $ 26,815   $ 27,174  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​