Segment Information

6 Months Ended

Jun. 30, 2015

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 June 30, in millions)	Business and International Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2015
Premiums	$	3,609	$	524	$	1,798	$	5,931
Net investment income	487		57		88		632
Fee income	111		—		—		111
Other revenues	5		5		12		22
Total operating revenues (1)	$	4,212	$	586	$	1,898	$	6,696
Operating income (1)	$	543	$	151	$	174	$	868
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

(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 months ended June 30, in millions)	Business and International Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2015
Premiums	$	7,229	$	1,028	$	3,562	$	11,819
Net investment income	941		113		170		1,224
Fee income	222		—		—		222
Other revenues	13		10		24		47
Total operating revenues (1)	$	8,405	$	1,151	$	3,756	$	13,312
Operating income (1)	$	1,058	$	275	$	426	$	1,759
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

(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)	2015			2014			2015			2014
Revenue reconciliation
Earned premiums
Business and International Insurance:
Domestic:
Workers’ compensation	$	957		$	923		$	1,919		$	1,831
Commercial automobile	477			473			946			941
Commercial property	442			440			883			868
General liability	473			457			945			904
Commercial multi-peril	779			763			1,554			1,518
Other	10			11			20			21
Total Domestic	3,138			3,067			6,267			6,083
International	471			564			962			1,106
Total Business and International Insurance	3,609			3,631			7,229			7,189
Bond & Specialty Insurance:
Fidelity and surety	240			238			465			460
General liability	240			241			476			478
Other	44			45			87			89
Total Bond & Specialty Insurance	524			524			1,028			1,027
Personal Insurance:
Automobile	863			821			1,699			1,636
Homeowners and other	935			952			1,863			1,899
Total Personal Insurance	1,798			1,773			3,562			3,535
Total earned premiums	5,931			5,928			11,819			11,751
Net investment income	632			695			1,224			1,431
Fee income	111			112			222			219
Other revenues	22			33			47			75
Total operating revenues for reportable segments	6,696			6,768			13,312			13,476
Other revenues	—			1			—			—
Net realized investment gains	10			16			20			17
Total consolidated revenues	$	6,706		$	6,785		$	13,332		$	13,493
Income reconciliation, net of tax
Total operating income for reportable segments	$	868		$	738		$	1,759		$	1,854
Interest Expense and Other (1)	(62		)	(65		)	(126		)	(129		)
Total operating income	806			673			1,633			1,725
Net realized investment gains	6			10			12			10
Total consolidated net income	$	812		$	683		$	1,645		$	1,735

(1) The primary component of Interest Expense and Other was after-tax interest expense of $60 million in each of the three months ended June 30, 2015 and 2014, and $120 million in each of the six months ended June 30, 2015 and 2014.

(in millions)	June 30, 2015		December 31, 2014
Asset reconciliation:
Business and International Insurance	$	80,839	$	82,309
Bond & Specialty Insurance	7,585		7,525
Personal Insurance	12,692		12,798
Total assets for reportable segments	101,116		102,632
Other assets (1)	548		446
Total consolidated assets	$	101,664	$	103,078

(1) The primary components of other assets at June 30, 2015 and December 31, 2014 were other intangible assets and deferred taxes.