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Schedule II
 12 Months Ended
Dec. 31, 2017
Schedule II  
Schedule II [Text Block]

SCHEDULE II

THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)

CONDENSED STATEMENTS OF INCOME

For the year ended December 31,
  2017   2016   2015  

Revenues

                    

Net investment income

   $ 24   $ 13   $ 7  

Net realized investment gains (losses)(1)

     66     (1 )   1  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total revenues

     90     12     8  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Expenses

                    

Interest

     321     315     325  

Other

     25     5     16  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total expenses

     346     320     341  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss before income taxes and net income of subsidiaries

     (256 )   (308 )   (333 )

Income tax benefit

     (130 )   (168 )   (108 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss before net income of subsidiaries

     (126 )   (140 )   (225 )

Net income of subsidiaries

     2,190     3,154     3,664  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income

   $ 2,064   $ 3,014   $ 3,439  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(1)
The parent company had $0, $(1) million and $0 of other-than-temporary impairment losses recognized in net realized investment gains (losses) during the years ended December 31, 2017, 2016 and 2015, respectively. The parent company had no other-than-temporary impairment gains or losses recognized in other comprehensive income (loss) during the years ended December 31, 2017, 2016 and 2015.

        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.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

For the year ended December 31,
  2017   2016   2015  

Net income

   $ 2,064   $ 3,014   $ 3,439  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

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

     (44 )   11     (3 )

Net changes in benefit plan assets and obligations

     22     (20 )   64  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

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

     (22 )   (9 )   61  

Income tax expense (benefit)

     2     (1 )   21  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

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

     (24 )   (8 )   40  

Other comprehensive income (loss) of subsidiaries

     436     (590 )   (1,077 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other comprehensive income (loss)

     412     (598 )   (1,037 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Comprehensive income

   $ 2,476   $ 2,416   $ 2,402  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

        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.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)

CONDENSED BALANCE SHEETS

At December 31,
  2017   2016  

Assets

              

Fixed maturities

   $ 82   $ 49  

Equity securities

     181     155  

Short-term securities

     1,230     1,627  

Investment in subsidiaries

     27,946     27,137  

Other assets

     692     68  
​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 30,131   $ 29,036  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

Liabilities

              

Debt

   $ 5,878   $ 5,744  

Other liabilities

     524     82  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities

     6,402     5,826  
​ ​ ​ ​ ​ ​ ​ ​

Shareholders' equity

              

Common stock (1,750.0 shares authorized; 271.5 and 279.6 shares issued, 271.4 and 279.6 shares outstanding)

     22,886     22,614  

Retained earnings

     33,460     32,185  

Accumulated other comprehensive loss

     (343 )   (755 )

Treasury stock, at cost (500.9 and 489.5 shares)

     (32,274 )   (30,834 )
​ ​ ​ ​ ​ ​ ​ ​

Total shareholders' equity

     23,729     23,210  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities and shareholders' equity

   $ 30,131   $ 29,036  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

        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.

SCHEDULE II

THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)

CONDENSED STATEMENTS OF CASH FLOWS

For the year ended December 31,
  2017   2016   2015  

Cash flows from operating activities

                    

Net income

   $ 2,064   $ 3,014   $ 3,439  

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

                    

Equity in net income of subsidiaries

     (2,190 )   (3,154 )   (3,664 )

Dividends received from consolidated subsidiaries

     2,289     2,998     3,833  

Capital received from subsidiaries

     —     —     3  

Deferred federal income tax expense (benefit)

     40     12     (6 )

Change in income taxes payable

     3     (48 )   51  

Other

     (174 )   73     113  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by operating activities

     2,032     2,895     3,769  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash flows from investing activities

                    

Net sales (purchases) of short-term securities

     397     (81 )   (16 )

Other investments, net

     (34 )   (8 )   (20 )

Acquisition, net of cash acquired

     (477 )   —     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash used in investing activities

     (114 )   (89 )   (36 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash flows from financing activities

                    

Treasury stock acquired—share repurchase authorization

     (1,378 )   (2,400 )   (3,150 )

Treasury stock acquired—net employee share-based compensation

     (62 )   (72 )   (74 )

Dividends paid to shareholders

     (785 )   (757 )   (739 )

Payment of debt

     (657 )   (400 )   (400 )

Issuance of debt

     789     491     392  

Issuance of common stock—employee share options

     173     332     183  

Other

     —     —     55  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash used in financing activities

     (1,920 )   (2,806 )   (3,733 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net decrease in cash

     (2 )   —     —  

Cash at beginning of year

     2     2     2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash at end of year

   $ —   $ 2   $ 2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Supplemental disclosure of cash flow information

                    

Cash received during the year for taxes

   $ 173   $ 132   $ 209  

Cash paid during the year for interest

   $ 320   $ 311   $ 318  

        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.

SCHEDULE II


THE TRAVELERS COMPANIES, INC.
(Parent Company Only)

NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT

1.     GUARANTEES

        The Travelers Companies, Inc. (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.

        TRV also has contingent obligations for guarantees in connection with the selling of businesses to third parties and various indemnifications including indemnifications to service providers in the normal course of business. The guarantees and indemnification clauses are often standard contractual terms and include indemnifications for breaches of representations and warranties and in some cases obligations arising from certain liabilities. The terms of these provisions vary in duration and nature. 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 provide an estimate of the maximum potential payments for such arrangements.