Consolidating Financial Statements (Unaudited) (tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015

(in millions)	TPC		OtherSubsidiaries		Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	3,996	$	1,892	$	—		$	—		$	5,888
Net investment income	411		180		1			—			592
Fee income	111		—		—			—			111
Net realized investment gains (1)	2		7		1			—			10
Other revenues	21		4		—			—			25
Total revenues	4,541		2,083		2			—			6,626
Claims and expenses
Claims and claim adjustment expenses	2,309		1,122		—			—			3,431
Amortization of deferred acquisition costs	642		321		—			—			963
General and administrative expenses	695		292		5			—			992
Interest expense	12		—		80			—			92
Total claims and expenses	3,658		1,735		85			—			5,478
Income (loss) before income taxes	883		348		(83		)	—			1,148
Income tax expense (benefit)	251		93		(29		)	—			315
Net income of subsidiaries	—		—		887			(887		)	—
Net income	$	632	$	255	$	833		$	(887	)	$	833

(1) Total other-than-temporary impairment (OTTI) for the three months ended March 31, 2015, 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 losses	$	(1	)	$	(3	)	$	—	$	—	$	(4	)
OTTI losses recognized in net realized investment gains	$	(1	)	$	(2	)	$	—	$	—	$	(3	)
OTTI losses recognized in OCI	$	—		$	(1	)	$	—	$	—	$	(1	)

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

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended March 31, 2014

(in millions)	TPC		OtherSubsidiaries			Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	3,944	$	1,879		$	—		$	—		$	5,823
Net investment income	500		235			1			—			736
Fee income	107		—			—			—			107
Net realized investment gains (losses) (1)	1		(2		)	2			—			1
Other revenues	33		8			—			—			41
Total revenues	4,585		2,120			3			—			6,708
Claims and expenses
Claims and claim adjustment expenses	2,221		1,094			—			—			3,315
Amortization of deferred acquisition costs	635		315			—			—			950
General and administrative expenses	613		265			3			—			881
Interest expense	12		—			80			—			92
Total claims and expenses	3,481		1,674			83			—			5,238
Income (loss) before income taxes	1,104		446			(80		)	—			1,470
Income tax expense (benefit)	321		125			(28		)	—			418
Net income of subsidiaries	—		—			1,104			(1,104		)	—
Net income	$	783	$	321		$	1,052		$	(1,104	)	$	1,052

(1) Total other-than-temporary impairment (OTTI) for the three months ended March 31, 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 losses	$	(2	)	$	(5	)	$	—	$	—	$	(7	)
OTTI losses recognized in net realized investment gains (losses)	$	(4	)	$	(5	)	$	—	$	—	$	(9	)
OTTI gains recognized in OCI	$	2		$	—		$	—	$	—	$	2

(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 March 31, 2015

(in millions)	TPC			OtherSubsidiaries			Travelers (1)			Eliminations			Consolidated
Net income	$	632		$	255		$	833		$	(887	)	$	833
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	134			33			2			—			169
Having credit losses recognized in the consolidated statement of income	(4		)	(1		)	—			—			(5		)
Net changes in benefit plan assets and obligations	—			1			23			—			24
Net changes in unrealized foreign currency translation	(179		)	(95		)	—			—			(274		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(49		)	(62		)	25			—			(86		)
Income tax expense	14			3			8			—			25
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(63		)	(65		)	17			—			(111		)
Other comprehensive loss of subsidiaries	—			—			(128		)	128			—
Other comprehensive loss	(63		)	(65		)	(111		)	128			(111		)
Comprehensive income	$	569		$	190		$	722		$	(759	)	$	722

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

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended March 31, 2014

(in millions)	TPC			OtherSubsidiaries			Travelers (1)		Eliminations			Consolidated
Net income	$	783		$	321		$	1,052	$	(1,104	)	$	1,052
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	391			146			—		—			537
Having credit losses recognized in the consolidated statement of income	7			(5		)	—		—			2
Net changes in benefit plan assets and obligations	—			—			15		—			15
Net changes in unrealized foreign currency translation	(25		)	(18		)	—		—			(43		)
Other comprehensive income before income taxes and other comprehensive income of subsidiaries	373			123			15		—			511
Income tax expense	143			45			6		—			194
Other comprehensive income, net of taxes, before other comprehensive income of subsidiaries	230			78			9		—			317
Other comprehensive income of subsidiaries	—			—			308		(308		)	—
Other comprehensive income	230			78			317		(308		)	317
Comprehensive income	$	1,013		$	399		$	1,369	$	(1,412	)	$	1,369

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

Consolidating Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)

At March 31, 2015

(in millions)	TPC		Other Subsidiaries		Travelers (1)			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $59,916)	$	42,990	$	19,749	$	30		$	—		$	62,769
Equity securities, available for sale, at fair value (cost $563)	220		502		144			—			866
Real estate investments	56		873		—			—			929
Short-term securities	2,149		694		1,647			—			4,490
Other investments	2,627		937		1			—			3,565
Total investments	48,042		22,755		1,822			—			72,619
Cash	195		111		2			—			308
Investment income accrued	432		193		3			—			628
Premiums receivable	4,359		2,169		—			—			6,528
Reinsurance recoverables	6,093		3,049		—			—			9,142
Ceded unearned premiums	748		82		—			—			830
Deferred acquisition costs	1,636		211		—			—			1,847
Contractholder receivables	3,350		1,046		—			—			4,396
Goodwill	2,586		1,004		—			—			3,590
Other intangible assets	208		84		—			—			292
Investment in subsidiaries	—		—		28,798			(28,798		)	—
Other assets	2,082		413		16			—			2,511
Total assets	$	69,731	$	31,117	$	30,641		$	(28,798	)	$	102,691
Liabilities
Claims and claim adjustment expense reserves	$	32,482	$	16,512	$	—		$	—		$	48,994
Unearned premium reserves	8,323		3,631		—			—			11,954
Contractholder payables	3,350		1,046		—			—			4,396
Payables for reinsurance premiums	287		198		—			—			485
Deferred taxes	114		63		(51		)	—			126
Debt	692		—		5,657			—			6,349
Other liabilities	4,098		1,242		200			—			5,540
Total liabilities	49,346		22,692		5,806			—			77,844
Shareholders’ equity
Common stock (1,750.0 shares authorized; 318.7 shares issued and outstanding)	—		390		21,982			(390		)	21,982
Additional paid-in capital	11,634		6,502		—			(18,136		)	—
Retained earnings	7,752		1,098		27,894			(8,838		)	27,906
Accumulated other comprehensive income	999		435		769			(1,434		)	769
Treasury stock, at cost (443.6 shares)	—		—		(25,810		)	—			(25,810		)
Total shareholders’ equity	20,385		8,425		24,835			(28,798		)	24,847
Total liabilities and shareholders’ equity	$	69,731	$	31,117	$	30,641		$	(28,798	)	$	102,691

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

CONSOLIDATING BALANCE SHEET (Unaudited)

At December 31, 2014

(in millions)	TPC		Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $60,801)	$	43,401	$	20,043		$	30		$	—		$	63,474
Equity securities, available for sale, at fair value (cost $579)	236		522			141			—			899
Real estate investments	56		882			—			—			938
Short-term securities	2,128		706			1,530			—			4,364
Other investments	2,630		955			1			—			3,586
Total investments	48,451		23,108			1,702			—			73,261
Cash	221		151			2			—			374
Investment income accrued	468		215			2			—			685
Premiums receivable	4,241		2,057			—			—			6,298
Reinsurance recoverables	6,156		3,104			—			—			9,260
Ceded unearned premiums	608		70			—			—			678
Deferred acquisition costs	1,622		213			—			—			1,835
Deferred taxes	23		(40		)	50			—			33
Contractholder receivables	3,306		1,056			—			—			4,362
Goodwill	2,602		1,009			—			—			3,611
Other intangible assets	216		88			—			—			304
Investment in subsidiaries	—		—			28,821			(28,821		)	—
Other assets	1,931		429			17			—			2,377
Total assets	$	69,845	$	31,460		$	30,594		$	(28,821	)	$	103,078
Liabilities
Claims and claim adjustment expense reserves	$	32,999	$	16,851		$	—		$	—		$	49,850
Unearned premium reserves	8,201		3,638			—			—			11,839
Contractholder payables	3,306		1,056			—			—			4,362
Payables for reinsurance premiums	194		142			—			—			336
Debt	692		—			5,657			—			6,349
Other liabilities	4,084		1,308			114			—			5,506
Total liabilities	49,476		22,995			5,771			—			78,242
Shareholders’ equity
Common stock (1,750.0 shares authorized; 322.2 shares issued and outstanding)	—		390			21,843			(390		)	21,843
Additional paid-in capital	11,634		6,502			—			(18,136		)	—
Retained earnings	7,673		1,073			27,238			(8,733		)	27,251
Accumulated other comprehensive income	1,062		500			880			(1,562		)	880
Treasury stock, at cost (437.3 shares)	—		—			(25,138		)	—			(25,138		)
Total shareholders’ equity	20,369		8,465			24,823			(28,821		)	24,836
Total liabilities and shareholders’ equity	$	69,845	$	31,460		$	30,594		$	(28,821	)	$	103,078

(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 three months ended March 31, 2015

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	632		$	255		$	833		$	(887	)	$	833
Net adjustments to reconcile net income to net cash provided by (used in) operating activities	(405		)	(350		)	16			105			(634		)
Net cash provided by (used in) operating activities	227			(95		)	849			(782		)	199
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,851			979			—			—			2,830
Proceeds from sales of investments:
Fixed maturities	555			351						—			906
Equity securities	6			5			—			—			11
Real estate investments	—			7			—			—			7
Other investments	98			48			—			—			146
Purchases of investments:
Fixed maturities	(2,133		)	(1,192		)	—			—			(3,325		)
Equity securities	(1		)	(6		)	(1		)	—			(8		)
Real estate investments	—			(6		)	—			—			(6		)
Other investments	(139		)	(29		)	—			—			(168		)
Net (purchases) sales of short-term securities	(23		)	6			(117		)	—			(134		)
Securities transactions in course of settlement	175			130			—			—			305
Other	(89		)	(1		)	—			—			(90		)
Net cash provided by (used in) investing activities	300			292			(118		)	—			474
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(600		)	—			(600		)
Treasury stock acquired — net employee share-based compensation	—			—			(71		)	—			(71		)
Dividends paid to shareholders	—			—			(177		)	—			(177		)
Issuance of common stock — employee share options	—			—			90			—			90
Excess tax benefits from share-based payment arrangements	—			—			27			—			27
Dividends paid to parent company	(552		)	(230		)	—			782			—
Net cash used in financing activities	(552		)	(230		)	(731		)	782			(731		)
Effect of exchange rate changes on cash	(1		)	(7		)	—			—			(8		)
Net decrease in cash	(26		)	(40		)	—			—			(66		)
Cash at beginning of year	221			151			2			—			374
Cash at end of period	$	195		$	111		$	2		$	—		$	308
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	138		$	52		$	(64	)	$	—		$	126
Interest paid	$	16		$	—		$	18		$	—		$	34

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

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the three months ended March 31, 2014

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	783		$	321		$	1,052		$	(1,104	)	$	1,052
Net adjustments to reconcile net income to net cash provided by operating activities	(90		)	(315		)	(191		)	247			(349		)
Net cash provided by operating activities	693			6			861			(857		)	703
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,334			977			1			—			2,312
Proceeds from sales of investments:
Fixed maturities	192			214			—			—			406
Equity securities	22			10			4			—			36
Real estate investments	—			1			—			—			1
Other investments	100			67			—			—			167
Purchases of investments:
Fixed maturities	(1,681		)	(1,030		)	(4		)	—			(2,715		)
Equity securities	(1		)	(13		)	(4		)	—			(18		)
Real estate investments	—			(9		)	—			—			(9		)
Other investments	(74		)	(39		)	—			—			(113		)
Net purchases of short-term securities	(73		)	(37		)	(50		)	—			(160		)
Securities transactions in course of settlement	183			56			1			—			240
Acquisition, net of cash acquired	(9		)	(3		)	—			—			(12		)
Other	(58		)	(2		)	—			—			(60		)
Net cash provided by (used in) investing activities	(65		)	192			(52		)	—			75
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(650		)	—			(650		)
Treasury stock acquired — net employee share-based compensation	—			—			(54		)	—			(54		)
Dividends paid to shareholders	—			—			(176		)	—			(176		)
Issuance of common stock — employee share options	—			—			57			—			57
Excess tax benefits from share-based payment arrangements	—			—			13			—			13
Dividends paid to parent company	(625		)	(232		)	—			857			—
Net cash used in financing activities	(625		)	(232		)	(810		)	857			(810		)
Effect of exchange rate changes on cash	(1		)	(1		)	—			—			(2		)
Net increase (decrease) in cash	2			(35		)	(1		)	—			(34		)
Cash at beginning of year	137			154			3			—			294
Cash at end of period	$	139		$	119		$	2		$	—		$	260
Supplemental disclosure of cash flow information
Income taxes paid	$	64		$	15		$	14		$	—		$	93
Interest paid	$	16		$	—		$	18		$	—		$	34

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