Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information disclosure

Segment Information disclosure [Text Block]

2. SEGMENT INFORMATION

The following tables summarize the components of the Company’s revenues, operating income and total assets by reportable business segments:

(for the three monthsended June 30,in millions)	Business and  InternationalInsurance		Bond & Specialty Insurance		PersonalInsurance		TotalReportableSegments
2014
Premiums	$	3,631	$	524	$	1,773	$	5,928
Net investment income	539		62		94		695
Fee income	112		—		—		112
Other revenues	10		6		17		33
Total operating revenues (1)	$	4,292	$	592	$	1,884	$	6,768
Operating income (1)	$	471	$	192	$	75	$	738
2013
Premiums	$	3,277	$	492	$	1,834	$	5,603
Net investment income	527		66		94		687
Fee income	82		—		—		82
Other revenues	114		5		15		134
Total operating revenues (1)	$	4,000	$	563	$	1,943	$	6,506
Operating income (1)	$	571	$	162	$	142	$	875

(1) Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses).

(for the six monthsended June 30,in millions)	Business and InternationalInsurance		Bond & Specialty Insurance		PersonalInsurance		TotalReportableSegments
2014
Premiums	$	7,189	$	1,027	$	3,535	$	11,751
Net investment income	1,109		128		194		1,431
Fee income	219		—		—		219
Other revenues	22		10		43		75
Total operating revenues (1)	$	8,539	$	1,165	$	3,772	$	13,476
Operating income (1)	$	1,165	$	346	$	343	$	1,854
2013
Premiums	$	6,476	$	970	$	3,674	$	11,120
Net investment income	1,040		132		185		1,357
Fee income	179		—		—		179
Other revenues	127		10		33		170
Total operating revenues (1)	$	7,822	$	1,112	$	3,892	$	12,826
Operating income (1)	$	1,207	$	279	$	339	$	1,825

(1)      Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses).

Business Segment Reconciliations

	Three Months Ended June  30,						Six Months Ended June 30,
(in millions)	2014			2013			2014			2013
Revenue reconciliation
Earned premiums
Business and International Insurance:
Domestic:
Workers’ compensation	$	923		$	897		$	1,831		$	1,744
Commercial automobile	473			474			941			949
Commercial property	440			418			868			827
General liability	457			444			904			881
Commercial multi-peril	763			776			1,518			1,541
Other	11			9			21			18
Total Domestic	3,067			3,018			6,083			5,960
International	564			259			1,106			516
Total Business and International Insurance	3,631			3,277			7,189			6,476
Bond & Specialty Insurance:
Fidelity and surety	238			228			460			448
General liability	241			221			478			434
Other	45			43			89			88
Total Bond & Specialty Insurance	524			492			1,027			970
Personal Insurance:
Automobile	821			864			1,636			1,736
Homeowners and other	952			970			1,899			1,938
Total Personal Insurance	1,773			1,834			3,535			3,674
Total earned premiums	5,928			5,603			11,751			11,120
Net investment income	695			687			1,431			1,357
Fee income	112			82			219			179
Other revenues	33			134			75			170
Total operating revenues for reportable segments	6,768			6,506			13,476			12,826
Other revenues	1			1			—			(1		)
Net realized investment gains	16			167			17			177
Total consolidated revenues	$	6,785		$	6,674		$	13,493		$	13,002
Income reconciliation, net of tax
Total operating income for reportable segments	$	738		$	875		$	1,854		$	1,825
Interest Expense and Other (1)	(65		)	(59		)	(129		)	(122		)
Total operating income	673			816			1,725			1,703
Net realized investment gains	10			109			10			118
Total consolidated net income	$	683		$	925		$	1,735		$	1,821

(1) The primary component of Interest Expense and Other is after-tax interest expense of $60 million and $56 million in the three months ended June 30, 2014 and 2013, respectively, and $120 million and $116 million in the six months ended June 30, 2014 and 2013, respectively.

(in millions)	June 30,2014		December 31,2013
Asset reconciliation:
Business and International Insurance	$	83,494	$	82,789
Bond & Specialty Insurance	7,832		7,648
Personal Insurance	12,948		12,870
Total assets for reportable segments	104,274		103,307
Other assets (1)	537		505
Total consolidated assets	$	104,811	$	103,812

(1) The primary components of other assets at both dates were other intangible assets and accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan.