Consolidating Financial Statements (Unaudited) (tables)

6 Months Ended

Jun. 30, 2016

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, 2016

(in millions)	TPC			Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	4,161		$	1,906	$	—		$	—		$	6,067
Net investment income	377			168		4			—			549
Fee income	119			—		—			—			119
Net realized investment gains (losses) (1)	(1		)	20		—			—			19
Other revenues	33			1		—			(3		)	31
Total revenues	4,689			2,095		4			(3		)	6,785
Claims and expenses
Claims and claim adjustment expenses	2,575			1,187		—			—			3,762
Amortization of deferred acquisition costs	666			323		—			—			989
General and administrative expenses	743			313		1			(3		)	1,054
Interest expense	12			—		81			—			93
Total claims and expenses	3,996			1,823		82			(3		)	5,898
Income (loss) before income taxes	693			272		(78		)	—			887
Income tax expense (benefit)	191			69		(37		)	—			223
Net income of subsidiaries	—			—		705			(705		)	—
Net income	$	502		$	203	$	664		$	(705	)	$	664

(1) Total other-than-temporary impairment (OTTI) for the three months ended June 30, 2016, 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			TRV		Eliminations		Consolidated
Total OTTI losses	$	(3	)	$	(1	)	$	—	$	—	$	(4	)
OTTI losses recognized in net realized investment gains (losses)	$	(3	)	$	(1	)	$	—	$	—	$	(4	)
OTTI gains (losses) recognized in OCI	$	—		$	—		$	—	$	—	$	—

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended June 30, 2015

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Revenues
Premiums	$	4,044	$	1,887		$	—		$	—		$	5,931
Net investment income	424		206			2			—			632
Fee income	115		—			—			—			115
Net realized investment gains (losses) (1)	17		(7		)	—			—			10
Other revenues	19		3			—			—			22
Total revenues	4,619		2,089			2			—			6,710
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	721		308			3			—			1,032
Interest expense	12		—			80			—			92
Total claims and expenses	3,793		1,758			83			—			5,634
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			TRV		Eliminations		Consolidated
Total OTTI losses	$	(7	)	$	(1	)	$	—	$	—	$	(8	)
OTTI losses recognized in net realized investment gains (losses)	$	(5	)	$	(1	)	$	—	$	—	$	(6	)
OTTI losses recognized in OCI	$	(2	)	$	—		$	—	$	—	$	(2	)

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the six months ended June 30, 2016

(in millions)	TPC			Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	8,246		$	3,802	$	—		$	—		$	12,048
Net investment income	753			334		6			—			1,093
Fee income	236			—		—			—			236
Net realized investment gains (losses) (1)	(17		)	27		—			—			10
Other revenues	81			17		—			(14		)	84
Total revenues	9,299			4,180		6			(14		)	13,471
Claims and expenses
Claims and claim adjustment expenses	5,095			2,379		—			—			7,474
Amortization of deferred acquisition costs	1,316			644		—			—			1,960
General and administrative expenses	1,447			611		5			(14		)	2,049
Interest expense	24			—		160			—			184
Total claims and expenses	7,882			3,634		165			(14		)	11,667
Income (loss) before income taxes	1,417			546		(159		)	—			1,804
Income tax expense (benefit)	390			138		(79		)	—			449
Net income of subsidiaries	—			—		1,435			(1,435		)	—
Net income	$	1,027		$	408	$	1,355		$	(1,435	)	$	1,355

(1) Total other-than-temporary impairment (OTTI) for the six months ended June 30, 2016, 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			TRV		Eliminations		Consolidated
Total OTTI losses	$	(17	)	$	(15	)	$	—	$	—	$	(32	)
OTTI losses recognized in net realized investment gains (losses)	$	(12	)	$	(10	)	$	—	$	—	$	(22	)
OTTI losses recognized in OCI	$	(5	)	$	(5	)	$	—	$	—	$	(10	)

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the six months ended June 30, 2015

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	8,040	$	3,779	$	—		$	—		$	11,819
Net investment income	835		386		3			—			1,224
Fee income	229		—		—			—			229
Net realized investment gains (1)	19		—		1			—			20
Other revenues	40		7		—			—			47
Total revenues	9,163		4,172		4			—			13,339
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	1,419		600		8			—			2,027
Interest expense	24		—		160			—			184
Total claims and expenses	7,454		3,493		168			—			11,115
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 and in other comprehensive income (OCI) were as follows:

(in millions)	TPC			Other Subsidiaries			TRV		Eliminations		Consolidated
Total OTTI losses	$	(8	)	$	(4	)	$	—	$	—	$	(12	)
OTTI losses recognized in net realized investment gains	$	(6	)	$	(3	)	$	—	$	—	$	(9	)
OTTI losses recognized in OCI	$	(2	)	$	(1	)	$	—	$	—	$	(3	)

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

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended June 30, 2016

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	502	$	203		$	664		$	(705	)	$	664
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	570		306			3			—			879
Having credit losses recognized in the consolidated statement of income	6		6			—			—			12
Net changes in benefit plan assets and obligations	18		19			(19		)	—			18
Net changes in unrealized foreign currency translation	25		(60		)	—			—			(35		)
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries	619		271			(16		)	—			874
Income tax expense (benefit)	216		113			(6		)	—			323
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries	403		158			(10		)	—			551
Other comprehensive income of subsidiaries	—		—			561			(561		)	—
Other comprehensive income	403		158			551			(561		)	551
Comprehensive income	$	905	$	361		$	1,215		$	(1,266	)	$	1,215

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended June 30, 2015

(in millions)	TPC			Other Subsidiaries			TRV			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

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the six months ended June 30, 2016

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	1,027	$	408		$	1,355		$	(1,435	)	$	1,355
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	1,055		534			4			—			1,593
Having credit losses recognized in the consolidated statement of income	8		9			—			—			17
Net changes in benefit plan assets and obligations	18		20			(4		)	—			34
Net changes in unrealized foreign currency translation	119		(51		)	—			—			68
Other comprehensive income before income taxes and other comprehensive income of subsidiaries	1,200		512			—			—			1,712
Income tax expense	397		192			1			—			590
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries	803		320			(1		)	—			1,122
Other comprehensive income of subsidiaries	—		—			1,123			(1,123		)	—
Other comprehensive income	803		320			1,122			(1,123		)	1,122
Comprehensive income	$	1,830	$	728		$	2,477		$	(2,558	)	$	2,477

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the six months ended June 30, 2015

(in millions)	TPC			Other Subsidiaries			TRV			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

Consolidating Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)

At June 30, 2016

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $59,975)	$	43,859	$	19,403		$	49		$	—		$	63,311
Equity securities, available for sale, at fair value (cost $525)	194		412			146			—			752
Real estate investments	55		874			—			—			929
Short-term securities	1,754		537			1,697			—			3,988
Other investments	2,594		895			1			—			3,490
Total investments	48,456		22,121			1,893			—			72,470
Cash	121		141			3			—			265
Investment income accrued	441		182			4			—			627
Premiums receivable	4,722		2,292			—			—			7,014
Reinsurance recoverables	5,928		2,675			—			—			8,603
Ceded unearned premiums	649		77			—			—			726
Deferred acquisition costs	1,753		201			—			—			1,954
Contractholder receivables	3,570		971			—			—			4,541
Goodwill	2,584		1,004			—			—			3,588
Other intangible assets	203		71			—			—			274
Investment in subsidiaries	—		—			28,755			(28,755		)	—
Other assets	2,106		(52		)	330			—			2,384
Total assets	$	70,533	$	29,683		$	30,985		$	(28,755	)	$	102,446
Liabilities
Claims and claim adjustment expense reserves	$	32,096	$	15,857		$	—		$	—		$	47,953
Unearned premium reserves	8,708		3,812			—			—			12,520
Contractholder payables	3,570		971			—			—			4,541
Payables for reinsurance premiums	227		174			—			—			401
Deferred taxes	330		118			(78		)	—			370
Debt	693		—			5,743			—			6,436
Other liabilities	4,188		707			616			—			5,511
Total liabilities	49,812		21,639			6,281			—			77,732
Shareholders’ equity
Common stock (1,750.0 shares authorized; 288.3 shares issued and outstanding)	—		390			22,349			(390		)	22,349
Additional paid-in capital	11,634		6,499			—			(18,133		)	—
Retained earnings	7,890		744			30,911			(8,624		)	30,921
Accumulated other comprehensive income	1,197		411			965			(1,608		)	965
Treasury stock, at cost (478.1 shares)	—		—			(29,521		)	—			(29,521		)
Total shareholders’ equity	20,721		8,044			24,704			(28,755		)	24,714
Total liabilities and shareholders’ equity	$	70,533	$	29,683		$	30,985		$	(28,755	)	$	102,446

CONSOLIDATING BALANCE SHEET (Unaudited)

At December 31, 2015

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $58,878)	$	42,289	$	18,323	$	46		$	—		$	60,658
Equity securities, available for sale, at fair value (cost $528)	189		375		141			—			705
Real estate investments	56		933		—			—			989
Short-term securities	1,947		1,178		1,546			—			4,671
Other investments	2,516		930		1			—			3,447
Total investments	46,997		21,739		1,734			—			70,470
Cash	225		153		2			—			380
Investment income accrued	453		185		4			—			642
Premiums receivable	4,336		2,101		—			—			6,437
Reinsurance recoverables	5,849		3,061		—			—			8,910
Ceded unearned premiums	610		46		—			—			656
Deferred acquisition costs	1,660		189		—			—			1,849
Deferred taxes	178		83		35			—			296
Contractholder receivables	3,387		987		—			—			4,374
Goodwill	2,573		1,000		—			—			3,573
Other intangible assets	203		76		—			—			279
Investment in subsidiaries	—		—		27,573			(27,573		)	—
Other assets	1,958		344		16			—			2,318
Total assets	$	68,429	$	29,964	$	29,364		$	(27,573	)	$	100,184
Liabilities
Claims and claim adjustment expense reserves	$	31,965	$	16,330	$	—		$	—		$	48,295
Unearned premium reserves	8,335		3,636		—			—			11,971
Contractholder payables	3,387		987		—			—			4,374
Payables for reinsurance premiums	175		121		—			—			296
Debt	693		—		5,651			—			6,344
Other liabilities	3,958		1,221		127			—			5,306
Total liabilities	48,513		22,295		5,778			—			76,586
Shareholders’ equity
Common stock (1,750.0 shares authorized; 295.9 shares issued and outstanding)	—		390		22,172			(390		)	22,172
Additional paid-in capital	11,634		6,499		—			(18,133		)	—
Retained earnings	7,888		688		29,933			(8,564		)	29,945
Accumulated other comprehensive income (loss)	394		92		(157		)	(486		)	(157		)
Treasury stock, at cost (467.6 shares)	—		—		(28,362		)	—			(28,362		)
Total shareholders’ equity	19,916		7,669		23,586			(27,573		)	23,598
Total liabilities and shareholders’ equity	$	68,429	$	29,964	$	29,364		$	(27,573	)	$	100,184

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

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the six months ended June 30, 2016

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,027		$	408		$	1,355		$	(1,435	)	$	1,355
Net adjustments to reconcile net income to net cash provided by (used in) operating activities	(17		)	(222		)	116			61			(62		)
Net cash provided by operating activities	1,010			186			1,471			(1,374		)	1,293
Cash flows from investing activities
Proceeds from maturities of fixed maturities	2,728			1,040			5			—			3,773
Proceeds from sales of investments:
Fixed maturities	385			352			2			—			739
Equity securities	10			28			—			—			38
Real estate investments	—			69			—			—			69
Other investments	233			110			—			—			343
Purchases of investments:
Fixed maturities	(3,588		)	(2,108		)	(9		)	—			(5,705		)
Equity securities	(5		)	(19		)	(2		)	—			(26		)
Real estate investments	—			(20		)	—			—			(20		)
Other investments	(221		)	(69		)	—			—			(290		)
Net (purchases) sales of short-term securities	193			639			(151		)	—			681
Securities transactions in course of settlement	325			137			(1		)	—			461
Other	(151		)	(3		)	—			—			(154		)
Net cash provided by (used in) investing activities	(91		)	156			(156		)	—			(91		)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(1,100		)	—			(1,100		)
Treasury stock acquired — net employee share-based compensation	—			—			(59		)	—			(59		)
Dividends paid to shareholders	—			—			(375		)	—			(375		)
Payment of debt	—			—			(400		)	—			(400		)
Issuance of debt	—			—			491			—			491
Issuance of common stock — employee share options	—			—			129			—			129
Dividends paid to parent company	(1,025		)	(349		)	—			1,374			—
Net cash used in financing activities	(1,025		)	(349		)	(1,314		)	1,374			(1,314		)
Effect of exchange rate changes on cash	2			(5		)	—			—			(3		)
Net increase (decrease) in cash	(104		)	(12		)	1			—			(115		)
Cash at beginning of year	225			153			2			—			380
Cash at end of period	$	121		$	141		$	3		$	—		$	265
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	398		$	142		$	(73	)	$	—		$	467
Interest paid	$	24		$	—		$	156		$	—		$	180

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the six months ended June 30, 2015

(in millions)	TPC			Other Subsidiaries			TRV			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