Segment Information

9 Months Ended

Sep. 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 months ended September 30,in millions)	Business and InternationalInsurance		Bond & Specialty Insurance		PersonalInsurance		TotalReportableSegments
2014
Premiums	$	3,660	$	527	$	1,796	$	5,983
Net investment income	557		64		98		719
Fee income	110		—		—		110
Other revenues	10		5		19		34
Total operating revenues (1)	$	4,337	$	596	$	1,913	$	6,846
Operating income (1)	$	552	$	165	$	239	$	956
2013
Premiums	$	3,325	$	506	$	1,835	$	5,666
Net investment income	504		63		90		657
Fee income	107		—		—		107
Other revenues	8		5		34		47
Total operating revenues (1)	$	3,944	$	574	$	1,959	$	6,477
Operating income (1)	$	566	$	120	$	262	$	948

(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 nine months ended September 30,in millions)	Business and InternationalInsurance		Bond & Specialty Insurance		PersonalInsurance		TotalReportableSegments
2014
Premiums	$	10,849	$	1,554	$	5,331	$	17,734
Net investment income	1,666		192		292		2,150
Fee income	329		—		—		329
Other revenues	32		15		62		109
Total operating revenues (1)	$	12,876	$	1,761	$	5,685	$	20,322
Operating income (1)	$	1,717	$	511	$	582	$	2,810
2013
Premiums	$	9,801	$	1,476	$	5,509	$	16,786
Net investment income	1,544		195		275		2,014
Fee income	286		—		—		286
Other revenues	135		15		67		217
Total operating revenues (1)	$	11,766	$	1,686	$	5,851	$	19,303
Operating income (1)	$	1,773	$	399	$	601	$	2,773

(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 September 30,						Nine Months Ended September 30,
(in millions)	2014			2013			2014			2013
Revenue reconciliation
Earned premiums
Business and International Insurance:
Domestic:
Workers’ compensation	$	928		$	896		$	2,759		$	2,640
Commercial automobile	481			476			1,422			1,425
Commercial property	442			432			1,310			1,259
General liability	472			452			1,376			1,333
Commercial multi-peril	774			779			2,292			2,320
Other	10			11			31			29
Total Domestic	3,107			3,046			9,190			9,006
International	553			279			1,659			795
Total Business and International Insurance	3,660			3,325			10,849			9,801
Bond & Specialty Insurance:
Fidelity and surety	240			235			700			683
General liability	243			227			721			661
Other	44			44			133			132
Total Bond & Specialty Insurance	527			506			1,554			1,476
Personal Insurance:
Automobile	835			855			2,471			2,591
Homeowners and other	961			980			2,860			2,918
Total Personal Insurance	1,796			1,835			5,331			5,509
Total earned premiums	5,983			5,666			17,734			16,786
Net investment income	719			657			2,150			2,014
Fee income	110			107			329			286
Other revenues	34			47			109			217
Total operating revenues for reportable segments	6,846			6,477			20,322			19,303
Other revenues	—			(3		)	—			(4		)
Net realized investment gains (losses)	40			(22		)	57			155
Total consolidated revenues	$	6,886		$	6,452		$	20,379		$	19,454
Income reconciliation, net of tax
Total operating income for reportable segments	$	956		$	948		$	2,810		$	2,773
Interest Expense and Other (1)	(63		)	(65		)	(192		)	(187		)
Total operating income	893			883			2,618			2,586
Net realized investment gains (losses)	26			(19		)	36			99
Total consolidated net income	$	919		$	864		$	2,654		$	2,685

(1) The primary component of Interest Expense and Other is after-tax interest expense of $60 million and $59 million for the three months ended September 30, 2014 and 2013, respectively, and $180 million and $175 million for the nine months ended September 30, 2014 and 2013, respectively.

(in millions)	September 30, 2014		December 31,2013
Asset reconciliation:
Business and International Insurance	$	83,218	$	82,789
Bond & Specialty Insurance	7,871		7,648
Personal Insurance	12,975		12,870
Total assets for reportable segments	104,064		103,307
Other assets (1)	458		505
Total consolidated assets	$	104,522	$	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.