Segment Information

9 Months Ended

Sep. 30, 2016

Segment Information disclosure

Segment Information disclosure [Text Block]

2. SEGMENT INFORMATION

The following tables summarize the components of the Company’s operating revenues, operating income and total assets by reportable business segments:

(for the three months ended September 30, in millions)	Business and International Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2016
Premiums	$	3,692	$	529	$	1,988	$	6,209
Net investment income	445		53		84		582
Fee income	111		—		5		116
Other revenues	10		4		14		28
Total operating revenues (1)	$	4,258	$	586	$	2,091	$	6,935
Operating income (1)	$	457	$	146	$	158	$	761
2015
Premiums	$	3,653	$	539	$	1,840	$	6,032
Net investment income	471		56		87		614
Fee income	112		—		4		116
Other revenues	5		4		9		18
Total operating revenues (1)	$	4,241	$	599	$	1,940	$	6,780
Operating income (1)	$	546	$	196	$	241	$	983

(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 nine months ended September 30, in millions)	Business and International Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2016
Premiums	$	10,922	$	1,555	$	5,780	$	18,257
Net investment income	1,280		156		239		1,675
Fee income	340		—		12		352
Other revenues	51		13		42		106
Total operating revenues (1)	$	12,593	$	1,724	$	6,073	$	20,390
Operating income (1)	$	1,326	$	492	$	413	$	2,231
2015
Premiums	$	10,882	$	1,567	$	5,402	$	17,851
Net investment income	1,412		169		257		1,838
Fee income	334		—		11		345
Other revenues	18		14		33		65
Total operating revenues (1)	$	12,646	$	1,750	$	5,703	$	20,099
Operating income (1)	$	1,604	$	471	$	667	$	2,742

(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 September 30,						Nine Months Ended September 30,
(in millions)	2016			2015			2016			2015
Revenue reconciliation
Earned premiums
Business and International Insurance:
Domestic:
Workers’ compensation	$	1,003		$	970		$	2,971		$	2,889
Commercial automobile	503			485			1,497			1,430
Commercial property	441			444			1,320			1,324
General liability	504			484			1,471			1,421
Commercial multi-peril	788			791			2,356			2,344
Other	9			10			23			30
Total Domestic	3,248			3,184			9,638			9,438
International	444			469			1,284			1,444
Total Business and International Insurance	3,692			3,653			10,922			10,882
Bond & Specialty Insurance:
Fidelity and surety	245			254			714			719
General liability	239			240			708			716
Other	45			45			133			132
Total Bond & Specialty Insurance	529			539			1,555			1,567
Personal Insurance:
Automobile	1,026			893			2,936			2,592
Homeowners and Other	962			947			2,844			2,810
Total Personal Insurance	1,988			1,840			5,780			5,402
Total earned premiums	6,209			6,032			18,257			17,851
Net investment income	582			614			1,675			1,838
Fee income	116			116			352			345
Other revenues	28			18			106			65
Total operating revenues for reportable segments	6,935			6,780			20,390			20,099
Other revenues	3			3			9			3
Net realized investment gains	23			15			33			35
Total consolidated revenues	$	6,961		$	6,798		$	20,432		$	20,137
Income reconciliation, net of tax
Total operating income for reportable segments	$	761		$	983		$	2,231		$	2,742
Interest Expense and Other (1)	(60		)	(65		)	(183		)	(191		)
Total operating income	701			918			2,048			2,551
Net realized investment gains	15			10			23			22
Total consolidated net income	$	716		$	928		$	2,071		$	2,573

(1) The primary component of Interest Expense and Other was after-tax interest expense of $57 million and $61 million in the three months ended September 30, 2016 and 2015, respectively, and $177 million and $181 million in the nine months ended September 30, 2016 and 2015, respectively.

(in millions)	September 30, 2016		December 31, 2015
Asset reconciliation:
Business and International Insurance	$	81,232	$	79,692
Bond & Specialty Insurance	7,945		7,360
Personal Insurance	13,327		12,748
Total assets for reportable segments	102,504		99,800
Other assets (1)	283		384
Total consolidated assets	$	102,787	$	100,184

(1) The primary component of other assets at September 30, 2016 was other intangible assets and the primary components at December 31, 2015 were other intangible assets and deferred taxes.