Consolidating Financial Statements (Unaudited) (tables)

9 Months Ended

Sep. 30, 2014

Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure

Consolidating Statement of Income (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended September 30, 2014

(in millions)	TPC			OtherSubsidiaries		Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	4,064		$	1,919	$	—		$	—		$	5,983
Net investment income	479			239		1			—			719
Fee income	110			—		—			—			110
Net realized investment gains (losses)(1)	(2		)	41		1			—			40
Other revenues	28			6		—			—			34
Total revenues	4,679			2,205		2			—			6,886
Claims and expenses
Claims and claim adjustment expenses	2,359			1,161		—			—			3,520
Amortization of deferred acquisition costs	642			342		—			—			984
General and administrative expenses	716			311		4			—			1,031
Interest expense	12			—		81			—			93
Total claims and expenses	3,729			1,814		85			—			5,628
Income (loss) before income taxes	950			391		(83		)	—			1,258
Income tax expense (benefit)	263			106		(30		)	—			339
Net income of subsidiaries	—			—		972			(972		)	—
Net income	$	687		$	285	$	919		$	(972	)	$	919

(1) Total other-than-temporary impairments (OTTI) for the three months ended September 30, 2014, and the amounts comprising total OTTI that were recognized in net realized investment gains (losses) and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			OtherSubsidiaries			Travelers (2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	(8	)	$	—		$	—	$	—	$	(8	)
OTTI losses recognized in net realized investment gains (losses)	$	(9	)	$	(1	)	$	—	$	—	$	(10	)
OTTI gains recognized in OCI	$	1		$	1		$	—	$	—	$	2

(2) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended September 30, 2013

(in millions)	TPC		OtherSubsidiaries			Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	3,839	$	1,827		$	—		$	—		$	5,666
Net investment income	438		217			2			—			657
Fee income	106		1			—			—			107
Net realized investment gains (losses) (1)	3		(25		)	—			—			(22		)
Other revenues	38		6			—			—			44
Total revenues	4,424		2,026			2			—			6,452
Claims and expenses
Claims and claim adjustment expenses	2,214		1,083			—			—			3,297
Amortization of deferred acquisition costs	640		313			—			—			953
General and administrative expenses	646		286			2			—			934
Interest expense	12		—			79			—			91
Total claims and expenses	3,512		1,682			81			—			5,275
Income (loss) before income taxes	912		344			(79		)	—			1,177
Income tax expense (benefit)	248		93			(28		)	—			313
Net income of subsidiaries	—		—			915			(915		)	—
Net income	$	664	$	251		$	864		$	(915	)	$	864

(1) Total other-than-temporary impairments (OTTI) for the three months ended September 30, 2013, and the amounts comprising total OTTI that were recognized in net realized investment gains (losses) and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			OtherSubsidiaries			Travelers (2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	1		$	(1	)	$	—	$	—	$	—
OTTI losses recognized in net realized investment gains (losses)	$	(2	)	$	(1	)	$	—	$	—	$	(3	)
OTTI gains recognized in OCI	$	3		$	—		$	—	$	—	$	3

(2) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the nine months ended September 30, 2014

(in millions)	TPC		OtherSubsidiaries		Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	12,028	$	5,706	$	—		$	—		$	17,734
Net investment income	1,451		695		4			—			2,150
Fee income	328		1		—			—			329
Net realized investment gains (1)	4		50		3			—			57
Other revenues	93		16		—			—			109
Total revenues	13,904		6,468		7			—			20,379
Claims and expenses
Claims and claim adjustment expenses	7,149		3,512		—			—			10,661
Amortization of deferred acquisition costs	1,927		972		—			—			2,899
General and administrative expenses	2,026		876		11			—			2,913
Interest expense	36		—		241			—			277
Total claims and expenses	11,138		5,360		252			—			16,750
Income (loss) before income taxes	2,766		1,108		(245		)	—			3,629
Income tax expense (benefit)	770		291		(86		)	—			975
Net income of subsidiaries	—		—		2,813			(2,813		)	—
Net income	$	1,996	$	817	$	2,654		$	(2,813	)	$	2,654

(1) Total other-than-temporary impairments (OTTI) for the nine months ended September 30, 2014, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			OtherSubsidiaries			Travelers (2)		Eliminations		Consolidated
Total OTTI losses	$	(11	)	$	(5	)	$	—	$	—	$	(16	)
OTTI losses recognized in net realized investment gains	$	(14	)	$	(6	)	$	—	$	—	$	(20	)
OTTI gains recognized in OCI	$	3		$	1		$	—	$	—	$	4

(2) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the nine months ended September 30, 2013

(in millions)	TPC		OtherSubsidiaries		Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	11,384	$	5,402	$	—		$	—		$	16,786
Net investment income	1,350		659		5			—			2,014
Fee income	284		2		—			—			286
Net realized investment gains (1)	120		34		1			—			155
Other revenues	170		43		—			—			213
Total revenues	13,308		6,140		6			—			19,454
Claims and expenses
Claims and claim adjustment expenses	6,684		3,296		—			—			9,980
Amortization of deferred acquisition costs	1,912		939		—			—			2,851
General and administrative expenses	1,915		861		4			—			2,780
Interest expense	41		—		228			—			269
Total claims and expenses	10,552		5,096		232			—			15,880
Income (loss) before income taxes	2,756		1,044		(226		)	—			3,574
Income tax expense (benefit)	700		269		(80		)	—			889
Net income of subsidiaries	—		—		2,831			(2,831		)	—
Net income	$	2,056	$	775	$	2,685		$	(2,831	)	$	2,685

(1) Total other-than-temporary impairments (OTTI) for the nine months ended September 30, 2013, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			OtherSubsidiaries			Travelers (2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	(3	)	$	2		$	—	$	—	$	(1	)
OTTI losses recognized in net realized investment gains	$	(7	)	$	(3	)	$	—	$	—	$	(10	)
OTTI gains recognized in OCI	$	4		$	5		$	—	$	—	$	9

(2) The Travelers Companies, Inc., excluding its subsidiaries.

Consolidating Statement of Comprehensive Income (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended September 30, 2014

(in millions)	TPC			OtherSubsidiaries			Travelers (1)			Eliminations			Consolidated
Net income	$	687		$	285		$	919		$	(972	)	$	919
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	(118		)	(35		)	(1		)	—			(154		)
Having credit losses recognized in the consolidated statement of income	2			(1		)	—			—			1
Net changes in benefit plan assets and obligations	—			1			14			—			15
Net changes in unrealized foreign currency translation	(120		)	(83		)	—			—			(203		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(236		)	(118		)	13			—			(341		)
Income tax expense (benefit)	(62		)	(22		)	5			—			(79		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(174		)	(96		)	8			—			(262		)
Other comprehensive loss of subsidiaries	—			—			(270		)	270			—
Other comprehensive loss	(174		)	(96		)	(262		)	270			(262		)
Comprehensive income	$	513		$	189		$	657		$	(702	)	$	657

(1) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended September 30, 2013

(in millions)	TPC			OtherSubsidiaries			Travelers (1)			Eliminations			Consolidated
Net income	$	664		$	251		$	864		$	(915	)	$	864
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	(138		)	(71		)	5			—			(204		)
Having credit losses recognized in the consolidated statement of income	(1		)	(1		)	—			—			(2		)
Net changes in benefit plan assets and obligations	—			(1		)	25			—			24
Net changes in unrealized foreign currency translation	26			86			—			—			112
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(113		)	13			30			—			(70		)
Income tax expense (benefit)	(46		)	(20		)	11			—			(55		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(67		)	33			19			—			(15		)
Other comprehensive loss of subsidiaries	—			—			(34		)	34			—
Other comprehensive income (loss)	(67		)	33			(15		)	34			(15		)
Comprehensive income	$	597		$	284		$	849		$	(881	)	$	849

(1) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the nine months ended September 30, 2014

(in millions)	TPC			OtherSubsidiaries			Travelers (1)		Eliminations			Consolidated
Net income	$	1,996		$	817		$	2,654	$	(2,813	)	$	2,654
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	632			266			3		—			901
Having credit losses recognized in the consolidated statement of income	11			(7		)	—		—			4
Net changes in benefit plan assets and obligations	—			1			44		—			45
Net changes in unrealized foreign currency translation	(94		)	(55		)	—		—			(149		)
Other comprehensive income before income taxes and other comprehensive income of subsidiaries	549			205			47		—			801
Income tax expense	210			84			17		—			311
Other comprehensive income, net of taxes, before other comprehensive income of subsidiaries	339			121			30		—			490
Other comprehensive income of subsidiaries	—			—			460		(460		)	—
Other comprehensive income	339			121			490		(460		)	490
Comprehensive income	$	2,335		$	938		$	3,144	$	(3,273	)	$	3,144

(1) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the nine months ended September 30, 2013

(in millions)	TPC			OtherSubsidiaries			Travelers (1)			Eliminations			Consolidated
Net income	$	2,056		$	775		$	2,685		$	(2,831	)	$	2,685
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	(1,735		)	(647		)	12			—			(2,370		)
Having credit losses recognized in the consolidated statement of income	4			(2		)	—			—			2
Net changes in benefit plan assets and obligations	1			2			75			—			78
Net changes in unrealized foreign currency translation	(35		)	(22		)	—			—			(57		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(1,765		)	(669		)	87			—			(2,347		)
Income tax expense (benefit)	(616		)	(231		)	31			—			(816		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(1,149		)	(438		)	56			—			(1,531		)
Other comprehensive loss of subsidiaries	—			—			(1,587		)	1,587			—
Other comprehensive loss	(1,149		)	(438		)	(1,531		)	1,587			(1,531		)
Comprehensive income	$	907		$	337		$	1,154		$	(1,244	)	$	1,154

(1) The Travelers Companies, Inc., excluding its subsidiaries.

Consolidating Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)

At September 30, 2014

(in millions)	TPC		Other Subsidiaries		Travelers (1)			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $61,043)	$	43,493	$	20,090	$	39		$	—		$	63,622
Equity securities, available for sale, at fair value (cost $609)	271		542		136			—			949
Real estate investments	56		893		—			—			949
Short-term securities	2,413		812		1,808			—			5,033
Other investments	2,658		978		1			—			3,637
Total investments	48,891		23,315		1,984			—			74,190
Cash	216		149		2			—			367
Investment income accrued	451		206		6			—			663
Premiums receivable	4,353		2,086		—			—			6,439
Reinsurance recoverables	6,214		3,065		—			—			9,279
Ceded unearned premiums	738		110		—			—			848
Deferred acquisition costs	1,666		224		—			—			1,890
Contractholder receivables	3,274		1,093		—			—			4,367
Goodwill	2,609		1,012		—			—			3,621
Other intangible assets	225		91		—			—			316
Investment in subsidiaries	—		—		28,950			(28,950		)	—
Other assets	2,011		363		168			—			2,542
Total assets	$	70,648	$	31,714	$	31,110		$	(28,950	)	$	104,522
Liabilities
Claims and claim adjustment expense reserves	$	33,414	$	16,988	$	—		$	—		$	50,402
Unearned premium reserves	8,463		3,718		—			—			12,181
Contractholder payables	3,274		1,093		—			—			4,367
Payables for reinsurance premiums	286		205		—			—			491
Deferred taxes	24		44		54			—			122
Debt	692		—		5,656			—			6,348
Other liabilities	4,039		1,160		91			—			5,290
Total liabilities	50,192		23,208		5,801			—			79,201
Shareholders’ equity
Common stock (1,750.0 shares authorized; 331.4 shares issued and outstanding)	—		390		21,764			(390		)	21,764
Additional paid-in capital	11,634		6,502		—			(18,136		)	—
Retained earnings	7,716		1,070		26,382			(8,774		)	26,394
Accumulated other comprehensive income	1,106		544		1,300			(1,650		)	1,300
Treasury stock, at cost (427.6 shares)	—		—		(24,137		)	—			(24,137		)
Total shareholders’ equity	20,456		8,506		25,309			(28,950		)	25,321
Total liabilities and shareholders’ equity	$	70,648	$	31,714	$	31,110		$	(28,950	)	$	104,522

(1) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING BALANCE SHEET (Unaudited)

At December 31, 2013

(in millions)	TPC		Other Subsidiaries		Travelers (1)			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $62,196)	$	43,720	$	20,199	$	37		$	—		$	63,956
Equity securities, available for sale, at fair value (cost $686)	329		484		130			—			943
Real estate investments	33		905		—			—			938
Short-term securities	1,867		492		1,523			—			3,882
Other investments	2,450		990		1			—			3,441
Total investments	48,399		23,070		1,691			—			73,160
Cash	137		154		3			—			294
Investment income accrued	499		231		4			—			734
Premiums receivable	4,124		2,001		—			—			6,125
Reinsurance recoverables	6,292		3,421		—			—			9,713
Ceded unearned premiums	712		89		—			—			801
Deferred acquisition costs	1,570		234		—			—			1,804
Deferred taxes	279		86		(62		)	—			303
Contractholder receivables	3,179		1,149		—			—			4,328
Goodwill	2,619		1,015		—			—			3,634
Other intangible assets	250		101		—			—			351
Investment in subsidiaries	—		—		28,616			(28,616		)	—
Other assets	2,010		357		198			—			2,565
Total assets	$	70,070	$	31,908	$	30,450		$	(28,616	)	$	103,812
Liabilities
Claims and claim adjustment expense reserves	$	33,506	$	17,389	$	—		$	—		$	50,895
Unearned premium reserves	8,188		3,662		—			—			11,850
Contractholder payables	3,179		1,149		—			—			4,328
Payables for reinsurance premiums	127		171		—			—			298
Debt	692		—		5,654			—			6,346
Other liabilities	4,109		1,180		10			—			5,299
Total liabilities	49,801		23,551		5,664			—			79,016
Shareholders’ equity
Common stock (1,750.0 shares authorized; 353.5 shares issued and outstanding)	—		390		21,500			(390		)	21,500
Additional paid-in capital	11,634		6,502		—			(18,136		)	—
Retained earnings	7,868		1,042		24,281			(8,900		)	24,291
Accumulated other comprehensive income	767		423		810			(1,190		)	810
Treasury stock, at cost (401.5 shares)	—		—		(21,805		)	—			(21,805		)
Total shareholders’ equity	20,269		8,357		24,786			(28,616		)	24,796
Total liabilities and shareholders’ equity	$	70,070	$	31,908	$	30,450		$	(28,616	)	$	103,812

(1) The Travelers Companies, Inc., excluding its subsidiaries.

Consolidating Statement of Cash Flows (Unaudited) [Table Text Block]

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the nine months ended September 30, 2014

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,996		$	817		$	2,654		$	(2,813	)	$	2,654
Net adjustments to reconcile net income to net cash provided by operating activities	391			(73		)	322			(126		)	514
Net cash provided by operating activities	2,387			744			2,976			(2,939		)	3,168
Cash flows from investing activities
Proceeds from maturities of fixed maturities	4,886			3,088			1			—			7,975
Proceeds from sales of investments:
Fixed maturities	511			415			1			—			927
Equity securities	83			41			4			—			128
Real estate investments	1			4			—			—			5
Other investments	317			295			—			—			612
Purchases of investments:
Fixed maturities	(4,888		)	(3,345		)	(4		)	—			(8,237		)
Equity securities	(3		)	(38		)	(6		)	—			(47		)
Real estate investments	(22		)	(19		)	—			—			(41		)
Other investments	(292		)	(114		)	—			—			(406		)
Net purchases of short-term securities	(552		)	(326		)	(285		)	—			(1,163		)
Securities transactions in course of settlement	66			53			—			—			119
Acquisitions, net of cash acquired	(9		)	(3		)	—			—			(12		)
Other	(256		)	(6		)	—			—			(262		)
Net cash provided by (used in) investing activities	(158		)	45			(289		)	—			(402		)
Cash flows from financing activities
Dividends paid to shareholders	—			—			(549		)	—			(549		)
Issuance of common stock — employee share options	—			—			154			—			154
Treasury stock acquired — share repurchase authorization	—			—			(2,275		)	—			(2,275		)
Treasury stock acquired — net employee share-based compensation	—			—			(56		)	—			(56		)
Excess tax benefits from share-based payment arrangements	—			—			38			—			38
Dividends paid to parent company	(2,150		)	(789		)	—			2,939			—
Net cash used in financing activities	(2,150		)	(789		)	(2,688		)	2,939			(2,688		)
Effect of exchange rate changes on cash	—			(5		)	—			—			(5		)
Net increase (decrease) in cash	79			(5		)	(1		)	—			73
Cash at beginning of year	137			154			3			—			294
Cash at end of period	$	216		$	149		$	2		$	—		$	367
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	684		$	215		$	(114	)	$	—		$	785
Interest paid	$	40		$	—		$	177		$	—		$	217

(1) The Travelers Companies, Inc., excluding its subsidiaries.

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the nine months ended September 30, 2013

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	2,056		$	775		$	2,685		$	(2,831	)	$	2,685
Net adjustments to reconcile net income to net cash provided by operating activities	(348		)	224			(1,531		)	1,859			204
Net cash provided by operating activities	1,708			999			1,154			(972		)	2,889
Cash flows from investing activities
Proceeds from maturities of fixed maturities	4,096			1,820			1			—			5,917
Proceeds from sales of investments:
Fixed maturities	590			565			5			—			1,160
Equity securities	21			36			—			—			57
Other investments	337			208			—			—			545
Purchases of investments:
Fixed maturities	(4,339		)	(2,146		)	(7		)	—			(6,492		)
Equity securities	(20		)	(29		)	(1		)	—			(50		)
Real estate investments	—			(65		)	—			—			(65		)
Other investments	(222		)	(90		)	—			—			(312		)
Net sales (purchases) of short-term securities	(1,563		)	(492		)	162			—			(1,893		)
Securities transactions in course of settlement	182			98			—			—			280
Other	(250		)	(4		)	—			—			(254		)
Net cash provided by (used in) investing activities	(1,168		)	(99		)	160			—			(1,107		)
Cash flows from financing activities
Payment of debt	(500		)	—			—			—			(500		)
Issuance of debt	—			—			494			—			494
Dividends paid to shareholders	—			—			(549		)	—			(549		)
Issuance of common stock — employee share options	—			—			158			—			158
Treasury stock acquired — share repurchase authorization	—			—			(1,400		)	—			(1,400		)
Treasury stock acquired — net employee share-based compensation	—			—			(60		)	—			(60		)
Excess tax benefits from share-based payment arrangements	—			—			43			—			43
Capital contributions	500			—			—			(500		)	—
Dividends paid to parent company	(587		)	(885		)	—			1,472			—
Net cash used in financing activities	(587		)	(885		)	(1,314		)	972			(1,814		)
Effect of exchange rate changes on cash	—			(3		)	—			—			(3		)
Net increase (decrease) in cash	(47		)	12			—			—			(35		)
Cash at beginning of year	177			151			2			—			330
Cash at end of period	$	130		$	163		$	2		$	—		$	295
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	691		$	236		$	(203	)	$	—		$	724
Interest paid	$	52		$	—		$	154		$	—		$	206

(1) The Travelers Companies, Inc., excluding its subsidiaries.