Consolidating Financial Statements (Unaudited) (tables)

6 Months Ended

Jun. 30, 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 June 30, 2015

(in millions)	TPC		Other Subsidiaries			Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	4,044	$	1,887		$	—		$	—		$	5,931
Net investment income	424		206			2			—			632
Fee income	111		—			—			—			111
Net realized investment gains (losses) (1)	17		(7		)	—			—			10
Other revenues	19		3			—			—			22
Total revenues	4,615		2,089			2			—			6,706
Claims and expenses
Claims and claim adjustment expenses	2,409		1,138			—			—			3,547
Amortization of deferred acquisition costs	651		312			—			—			963
General and administrative expenses	717		308			3			—			1,028
Interest expense	12		—			80			—			92
Total claims and expenses	3,789		1,758			83			—			5,630
Income (loss) before income taxes	826		331			(81		)	—			1,076
Income tax expense (benefit)	198		86			(20		)	—			264
Net income of subsidiaries	—		—			873			(873		)	—
Net income	$	628	$	245		$	812		$	(873	)	$	812

(1) Total other-than-temporary impairment (OTTI) for the three months ended June 30, 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			Other  Subsidiaries			Travelers (2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	(7	)	$	(1	)	$	—	$	—	$	(8	)
OTTI losses recognized in net realized investment gains	$	(5	)	$	(1	)	$	—	$	—	$	(6	)
OTTI gains (losses) recognized in OCI	$	(2	)	$	—		$	—	$	—	$	(2	)

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

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended June 30, 2014

(in millions)	TPC		Other Subsidiaries		Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	4,020	$	1,908	$	—		$	—		$	5,928
Net investment income	472		221		2			—			695
Fee income	111		1		—			—			112
Net realized investment gains (1)	5		11		—			—			16
Other revenues	32		2		—			—			34
Total revenues	4,640		2,143		2			—			6,785
Claims and expenses
Claims and claim adjustment expenses	2,569		1,257		—			—			3,826
Amortization of deferred acquisition costs	650		315		—			—			965
General and administrative expenses	697		300		4			—			1,001
Interest expense	12		—		80			—			92
Total claims and expenses	3,928		1,872		84			—			5,884
Income (loss) before income taxes	712		271		(82		)	—			901
Income tax expense (benefit)	186		60		(28		)	—			218
Net income of subsidiaries	—		—		737			(737		)	—
Net income	$	526	$	211	$	683		$	(737	)	$	683

(1) Total other-than-temporary impairment (OTTI) for the three months ended June 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			Other Subsidiaries		Travelers (2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	(1	)	$	—	$	—	$	—	$	(1	)
OTTI losses recognized in net realized investment gains	$	(1	)	$	—	$	—	$	—	$	(1	)
OTTI gains (losses) recognized in OCI	$	—		$	—	$	—	$	—	$	—

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

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the six months ended June 30, 2015

(in millions)	TPC		Other Subsidiaries		Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	8,040	$	3,779	$	—		$	—		$	11,819
Net investment income	835		386		3			—			1,224
Fee income	222		—		—			—			222
Net realized investment gains (1)	19		—		1			—			20
Other revenues	40		7		—			—			47
Total revenues	9,156		4,172		4			—			13,332
Claims and expenses
Claims and claim adjustment expenses	4,718		2,260		—			—			6,978
Amortization of deferred acquisition costs	1,293		633		—			—			1,926
General and administrative expenses	1,412		600		8			—			2,020
Interest expense	24		—		160			—			184
Total claims and expenses	7,447		3,493		168			—			11,108
Income (loss) before income taxes	1,709		679		(164		)	—			2,224
Income tax expense (benefit)	449		179		(49		)	—			579
Net income of subsidiaries	—		—		1,760			(1,760		)	—
Net income	$	1,260	$	500	$	1,645		$	(1,760	)	$	1,645

(1) Total other-than-temporary impairment (OTTI) for the six months ended June 30, 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			Other Subsidiaries			Travelers (2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	(8	)	$	(4	)	$	—	$	—	$	(12	)
OTTI losses recognized in net realized investment gains	$	(6	)	$	(3	)	$	—	$	—	$	(9	)
OTTI gains (losses) recognized in OCI	$	(2	)	$	(1	)	$	—	$	—	$	(3	)

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

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the six months ended June 30, 2014

(in millions)	TPC		Other Subsidiaries		Travelers (2)			Eliminations			Consolidated
Revenues
Premiums	$	7,964	$	3,787	$	—		$	—		$	11,751
Net investment income	972		456		3			—			1,431
Fee income	218		1		—			—			219
Net realized investment gains (1)	6		9		2			—			17
Other revenues	65		10		—			—			75
Total revenues	9,225		4,263		5			—			13,493
Claims and expenses
Claims and claim adjustment expenses	4,790		2,351		—			—			7,141
Amortization of deferred acquisition costs	1,285		630		—			—			1,915
General and administrative expenses	1,310		565		7			—			1,882
Interest expense	24		—		160			—			184
Total claims and expenses	7,409		3,546		167			—			11,122
Income (loss) before income taxes	1,816		717		(162		)	—			2,371
Income tax expense (benefit)	507		185		(56		)	—			636
Net income of subsidiaries	—		—		1,841			(1,841		)	—
Net income	$	1,309	$	532	$	1,735		$	(1,841	)	$	1,735

(1) Total other-than-temporary impairment (OTTI) for the six months ended June 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			Other Subsidiaries			Travelers (2)		Eliminations		Consolidated
Total OTTI gains (losses)	$	(3	)	$	(5	)	$	—	$	—	$	(8	)
OTTI losses recognized in net realized investment gains	$	(5	)	$	(5	)	$	—	$	—	$	(10	)
OTTI gains (losses) 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 June 30, 2015

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Net income	$	628		$	245		$	812		$	(873	)	$	812
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	(719		)	(345		)	(1		)	—			(1,065		)
Having credit losses recognized in the consolidated statement of income	(5		)	—			—			—			(5		)
Net changes in benefit plan assets and obligations	1			—			22			—			23
Net changes in unrealized foreign currency translation	34			60			—			—			94
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(689		)	(285		)	21			—			(953		)
Income tax expense (benefit)	(246		)	(115		)	8			—			(353		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(443		)	(170		)	13			—			(600		)
Other comprehensive loss of subsidiaries	—			—			(613		)	613			—
Other comprehensive loss	(443		)	(170		)	(600		)	613			(600		)
Comprehensive income	$	185		$	75		$	212		$	(260	)	$	212

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

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended June 30, 2014

(in millions)	TPC		Other Subsidiaries			Travelers (1)		Eliminations			Consolidated
Net income	$	526	$	211		$	683	$	(737	)	$	683
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	359		155			4		—			518
Having credit losses recognized in the consolidated statement of income	2		(1		)	—		—			1
Net changes in benefit plan assets and obligations	—		—			15		—			15
Net changes in unrealized foreign currency translation	51		46			—		—			97
Other comprehensive income before income taxes and other comprehensive income of subsidiaries	412		200			19		—			631
Income tax expense	129		61			6		—			196
Other comprehensive income, net of taxes, before other comprehensive income of subsidiaries	283		139			13		—			435
Other comprehensive income of subsidiaries	—		—			422		(422		)	—
Other comprehensive income	283		139			435		(422		)	435
Comprehensive income	$	809	$	350		$	1,118	$	(1,159	)	$	1,118

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

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the six months ended June 30, 2015

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Net income	$	1,260		$	500		$	1,645		$	(1,760	)	$	1,645
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	(585		)	(312		)	1			—			(896		)
Having credit losses recognized in the consolidated statement of income	(9		)	(1		)	—			—			(10		)
Net changes in benefit plan assets and obligations	1			1			45			—			47
Net changes in unrealized foreign currency translation	(145		)	(35		)	—			—			(180		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(738		)	(347		)	46			—			(1,039		)
Income tax expense (benefit)	(232		)	(112		)	16			—			(328		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(506		)	(235		)	30			—			(711		)
Other comprehensive loss of subsidiaries	—			—			(741		)	741			—
Other comprehensive loss	(506		)	(235		)	(711		)	741			(711		)
Comprehensive income	$	754		$	265		$	934		$	(1,019	)	$	934

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

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the six months ended June 30, 2014

(in millions)	TPC		Other Subsidiaries			Travelers (1)		Eliminations			Consolidated
Net income	$	1,309	$	532		$	1,735	$	(1,841	)	$	1,735
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	750		301			4		—			1,055
Having credit losses recognized in the consolidated statement of income	9		(6		)	—		—			3
Net changes in benefit plan assets and obligations	—		—			30		—			30
Net changes in unrealized foreign currency translation	26		28			—		—			54
Other comprehensive income before income taxes and other comprehensive income of subsidiaries	785		323			34		—			1,142
Income tax expense	272		106			12		—			390
Other comprehensive income, net of taxes, before other comprehensive income of subsidiaries	513		217			22		—			752
Other comprehensive income of subsidiaries	—		—			730		(730		)	—
Other comprehensive income	513		217			752		(730		)	752
Comprehensive income	$	1,822	$	749		$	2,487	$	(2,571	)	$	2,487

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

Consolidating Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)

At June 30, 2015

(in millions)	TPC		Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $60,103)	$	42,549	$	19,340		$	44		$	—		$	61,933
Equity securities, available for sale, at fair value (cost $573)	224		460			144			—			828
Real estate investments	56		924			—			—			980
Short-term securities	1,798		478			1,648			—			3,924
Other investments	2,628		936			1			—			3,565
Total investments	47,255		22,138			1,837			—			71,230
Cash	184		131			2			—			317
Investment income accrued	451		201			3			—			655
Premiums receivable	4,504		2,260			—			—			6,764
Reinsurance recoverables	5,721		3,244			—			—			8,965
Ceded unearned premiums	690		92			—			—			782
Deferred acquisition costs	1,672		219			—			—			1,891
Deferred taxes	117		55			44			—			216
Contractholder receivables	3,417		1,056			—			—			4,473
Goodwill	2,589		1,005			—			—			3,594
Other intangible assets	202		82			—			—			284
Investment in subsidiaries	—		—			28,057			(28,057		)	—
Other assets	2,170		(32		)	355			—			2,493
Total assets	$	68,972	$	30,451		$	30,298		$	(28,057	)	$	101,664
Liabilities
Claims and claim adjustment expense reserves	$	32,161	$	16,672		$	—		$	—		$	48,833
Unearned premium reserves	8,414		3,739			—			—			12,153
Contractholder payables	3,417		1,056			—			—			4,473
Payables for reinsurance premiums	243		185			—			—			428
Debt	692		—			5,658			—			6,350
Other liabilities	4,145		630			531			—			5,306
Total liabilities	49,072		22,282			6,189			—			77,543
Shareholders’ equity
Common stock (1,750.0 shares authorized; 311.2 shares issued and outstanding)	—		390			22,039			(390		)	22,039
Additional paid-in capital	11,634		6,502			—			(18,136		)	—
Retained earnings	7,711		1,012			28,512			(8,711		)	28,524
Accumulated other comprehensive income	555		265			169			(820		)	169
Treasury stock, at cost (451.5 shares)	—		—			(26,611		)	—			(26,611		)
Total shareholders’ equity	19,900		8,169			24,109			(28,057		)	24,121
Total liabilities and shareholders’ equity	$	68,972	$	30,451		$	30,298		$	(28,057	)	$	101,664

(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 six months ended June 30, 2015

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,260		$	500		$	1,645		$	(1,760	)	$	1,645
Net adjustments to reconcile net income to net cash provided by (used in) operating activities	(410		)	(520		)	182			(22		)	(770		)
Net cash provided by (used in) operating activities	850			(20		)	1,827			(1,782		)	875
Cash flows from investing activities
Proceeds from maturities of fixed maturities	3,604			1,707			3			—			5,314
Proceeds from sales of investments:
Fixed maturities	710			516			—			—			1,226
Equity securities	11			17			—			—			28
Real estate investments	—			10			—			—			10
Other investments	244			110			—			—			354
Purchases of investments:
Fixed maturities	(4,352		)	(1,869		)	(18		)	—			(6,239		)
Equity securities	(2		)	(19		)	(1		)	—			(22		)
Real estate investments	—			(69		)	—			—			(69		)
Other investments	(222		)	(53		)	—			—			(275		)
Net (purchases) sales of short-term securities	327			224			(118		)	—			433
Securities transactions in course of settlement	190			(7		)	—			—			183
Other	(175		)	(3		)	—			—			(178		)
Net cash provided by (used in) investing activities	335			564			(134		)	—			765
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(1,400		)	—			(1,400		)
Treasury stock acquired — net employee share-based compensation	—			—			(72		)	—			(72		)
Dividends paid to shareholders	—			—			(369		)	—			(369		)
Issuance of common stock — employee share options	—			—			117			—			117
Excess tax benefits from share-based payment arrangements	—			—			31			—			31
Dividends paid to parent company	(1,222		)	(560		)	—			1,782			—
Net cash used in financing activities	(1,222		)	(560		)	(1,693		)	1,782			(1,693		)
Effect of exchange rate changes on cash	—			(4		)	—			—			(4		)
Net decrease in cash	(37		)	(20		)	—			—			(57		)
Cash at beginning of year	221			151			2			—			374
Cash at end of period	$	184		$	131		$	2		$	—		$	317
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	534		$	197		$	(134	)	$	—		$	597
Interest paid	$	24		$	—		$	159		$	—		$	183

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

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the six months ended June 30, 2014

(in millions)	TPC			Other Subsidiaries			Travelers (1)			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,309		$	532		$	1,735		$	(1,841	)	$	1,735
Net adjustments to reconcile net income to net cash provided by operating activities	(154		)	(317		)	305			(241		)	(407		)
Net cash provided by operating activities	1,155			215			2,040			(2,082		)	1,328
Cash flows from investing activities
Proceeds from maturities of fixed maturities	3,005			1,909			1			—			4,915
Proceeds from sales of investments:
Fixed maturities	415			369			1			—			785
Equity securities	57			34			4			—			95
Real estate investments	—			5			—			—			5
Other investments	196			142			—			—			338
Purchases of investments:
Fixed maturities	(3,399		)	(2,046		)	(4		)	—			(5,449		)
Equity securities	(3		)	(32		)	(5		)	—			(40		)
Real estate investments	(21		)	(15		)	—			—			(36		)
Other investments	(154		)	(72		)	—			—			(226		)
Net sales (purchases) of short-term securities	347			(47		)	(240		)	—			60
Securities transactions in course of settlement	113			91			—			—			204
Acquisition, net of cash acquired	(9		)	(3		)	—			—			(12		)
Other	(147		)	(5		)	—			—			(152		)
Net cash provided by (used in) investing activities	400			330			(243		)	—			487
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(1,525		)	—			(1,525		)
Treasury stock acquired — net employee share-based compensation	—			—			(55		)	—			(55		)
Dividends paid to shareholders	—			—			(365		)	—			(365		)
Issuance of common stock — employee share options	—			—			122			—			122
Excess tax benefits from share-based payment arrangements	—			—			24			—			24
Dividends paid to parent company	(1,525		)	(557		)	—			2,082			—
Net cash used in financing activities	(1,525		)	(557		)	(1,799		)	2,082			(1,799		)
Effect of exchange rate changes on cash	—			1			—			—			1
Net increase (decrease) in cash	30			(11		)	(2		)	—			17
Cash at beginning of year	137			154			3			—			294
Cash at end of period	$	167		$	143		$	1		$	—		$	311
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	570		$	205		$	(48	)	$	—		$	727
Interest paid	$	24		$	—		$	159		$	—		$	183

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