Consolidating Financial Statements (Unaudited) (tables)

9 Months Ended

Sep. 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 September 30, 2016

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	4,246	$	1,963	$	—		$	—		$	6,209
Net investment income	389		190		3			—			582
Fee income	116		—		—			—			116
Net realized investment gains (1)	10		12		—			1			23
Other revenues	24		11		—			(4		)	31
Total revenues	4,785		2,176		3			(3		)	6,961
Claims and expenses
Claims and claim adjustment expenses	2,615		1,241		—			—			3,856
Amortization of deferred acquisition costs	683		329		—			—			1,012
General and administrative expenses	744		312		4			(3		)	1,057
Interest expense	11		—		78			—			89
Total claims and expenses	4,053		1,882		82			(3		)	6,014
Income (loss) before income taxes	732		294		(79		)	—			947
Income tax expense (benefit)	194		81		(44		)	—			231
Net income of subsidiaries	—		—		751			(751		)	—
Net income	$	538	$	213	$	716		$	(751	)	$	716

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

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the three months ended September 30, 2015

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	4,110	$	1,922	$	—		$	—		$	6,032
Net investment income	400		213		1			—			614
Fee income	116		—		—			—			116
Net realized investment gains (1)	5		10		—			—			15
Other revenues	15		6		—			—			21
Total revenues	4,646		2,151		1			—			6,798
Claims and expenses
Claims and claim adjustment expenses	2,264		1,118		—			—			3,382
Amortization of deferred acquisition costs	663		324		—			—			987
General and administrative expenses	715		309		4			—			1,028
Interest expense	12		—		82			—			94
Total claims and expenses	3,654		1,751		86			—			5,491
Income (loss) before income taxes	992		400		(85		)	—			1,307
Income tax expense (benefit)	293		113		(27		)	—			379
Net income of subsidiaries	—		—		986			(986		)	—
Net income	$	699	$	287	$	928		$	(986	)	$	928

(1) Total other-than-temporary impairment (OTTI) for the three months ended September 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	$	(5	)	$	(9	)	$	—	$	—	$	(14	)
OTTI losses recognized in net realized investment gains	$	(5	)	$	(9	)	$	—	$	—	$	(14	)
OTTI gains (losses) recognized in OCI	$	—		$	—		$	—	$	—	$	—

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the nine months ended September 30, 2016

(in millions)	TPC			Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	12,492		$	5,765	$	—		$	—		$	18,257
Net investment income	1,142			524		9			—			1,675
Fee income	352			—		—			—			352
Net realized investment gains (losses) (1)	(7		)	39		—			1			33
Other revenues	105			28		—			(18		)	115
Total revenues	14,084			6,356		9			(17		)	20,432
Claims and expenses
Claims and claim adjustment expenses	7,710			3,620		—			—			11,330
Amortization of deferred acquisition costs	1,999			973		—			—			2,972
General and administrative expenses	2,191			923		9			(17		)	3,106
Interest expense	35			—		238			—			273
Total claims and expenses	11,935			5,516		247			(17		)	17,681
Income (loss) before income taxes	2,149			840		(238		)	—			2,751
Income tax expense (benefit)	584			219		(123		)	—			680
Net income of subsidiaries	—			—		2,186			(2,186		)	—
Net income	$	1,565		$	621	$	2,071		$	(2,186	)	$	2,071

(1) Total other-than-temporary impairment (OTTI) for the nine months ended September 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	$	(18	)	$	(18	)	$	—	$	—	$	(36	)
OTTI losses recognized in net realized investment gains	$	(13	)	$	(13	)	$	—	$	—	$	(26	)
OTTI losses recognized in OCI	$	(5	)	$	(5	)	$	—	$	—	$	(10	)

CONSOLIDATING STATEMENT OF INCOME (Unaudited)

For the nine months ended September 30, 2015

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	12,150	$	5,701	$	—		$	—		$	17,851
Net investment income	1,235		599		4			—			1,838
Fee income	345		—		—			—			345
Net realized investment gains (1)	24		10		1			—			35
Other revenues	55		13		—			—			68
Total revenues	13,809		6,323		5			—			20,137
Claims and expenses
Claims and claim adjustment expenses	6,982		3,378		—			—			10,360
Amortization of deferred acquisition costs	1,956		957		—			—			2,913
General and administrative expenses	2,134		909		12			—			3,055
Interest expense	36		—		242			—			278
Total claims and expenses	11,108		5,244		254			—			16,606
Income (loss) before income taxes	2,701		1,079		(249		)	—			3,531
Income tax expense (benefit)	742		292		(76		)	—			958
Net income of subsidiaries	—		—		2,746			(2,746		)	—
Net income	$	1,959	$	787	$	2,573		$	(2,746	)	$	2,573

(1) Total other-than-temporary impairment (OTTI) for the nine months ended September 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	$	(13	)	$	(13	)	$	—	$	—	$	(26	)
OTTI losses recognized in net realized investment gains	$	(11	)	$	(12	)	$	—	$	—	$	(23	)
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 September 30, 2016

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	538		$	213		$	716		$	(751	)	$	716
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	(323		)	(137		)	5			—			(455		)
Having credit losses recognized in the consolidated statement of income	4			2			—			—			6
Net changes in benefit plan assets and obligations	1			—			15			—			16
Net changes in unrealized foreign currency translation	(13		)	(18		)	—			—			(31		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(331		)	(153		)	20			—			(464		)
Income tax expense (benefit)	(120		)	(48		)	9			—			(159		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(211		)	(105		)	11			—			(305		)
Other comprehensive loss of subsidiaries	—			—			(316		)	316			—
Other comprehensive loss	(211		)	(105		)	(305		)	316			(305		)
Comprehensive income	$	327		$	108		$	411		$	(435	)	$	411

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended September 30, 2015

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	699		$	287		$	928		$	(986	)	$	928
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	93			(17		)	(9		)	—			67
Having credit losses recognized in the consolidated statement of income	(2		)	(1		)	—			—			(3		)
Net changes in benefit plan assets and obligations	1			1			22			—			24
Net changes in unrealized foreign currency translation	(148		)	(79		)	—			—			(227		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(56		)	(96		)	13			—			(139		)
Income tax expense (benefit)	8			(14		)	4			—			(2		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(64		)	(82		)	9			—			(137		)
Other comprehensive loss of subsidiaries	—			—			(146		)	146			—
Other comprehensive loss	(64		)	(82		)	(137		)	146			(137		)
Comprehensive income	$	635		$	205		$	791		$	(840	)	$	791

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the nine months ended September 30, 2016

(in millions)	TPC		Other Subsidiaries			TRV		Eliminations			Consolidated
Net income	$	1,565	$	621		$	2,071	$	(2,186	)	$	2,071
Other comprehensive income:
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	732		397			9		—			1,138
Having credit losses recognized in the consolidated statement of income	12		11			—		—			23
Net changes in benefit plan assets and obligations	19		20			11		—			50
Net changes in unrealized foreign currency translation	106		(69		)	—		—			37
Other comprehensive income before income taxes and other comprehensive income of subsidiaries	869		359			20		—			1,248
Income tax expense	277		144			10		—			431
Other comprehensive income, net of taxes, before other comprehensive income of subsidiaries	592		215			10		—			817
Other comprehensive income of subsidiaries	—		—			807		(807		)	—
Other comprehensive income	592		215			817		(807		)	817
Comprehensive income	$	2,157	$	836		$	2,888	$	(2,993	)	$	2,888

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the nine months ended September 30, 2015

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	1,959		$	787		$	2,573		$	(2,746	)	$	2,573
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	(492		)	(329		)	(8		)	—			(829		)
Having credit losses recognized in the consolidated statement of income	(11		)	(2		)	—			—			(13		)
Net changes in benefit plan assets and obligations	2			2			67			—			71
Net changes in unrealized foreign currency translation	(293		)	(114		)	—			—			(407		)
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries	(794		)	(443		)	59			—			(1,178		)
Income tax expense (benefit)	(224		)	(126		)	20			—			(330		)
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries	(570		)	(317		)	39			—			(848		)
Other comprehensive loss of subsidiaries	—			—			(887		)	887			—
Other comprehensive loss	(570		)	(317		)	(848		)	887			(848		)
Comprehensive income	$	1,389		$	470		$	1,725		$	(1,859	)	$	1,725

Consolidating Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)

At September 30, 2016

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $60,149)	$	43,726	$	19,260	$	50		$	—		$	63,036
Equity securities, available for sale, at fair value (cost $510)	174		419		151			—			744
Real estate investments	55		874		—			—			929
Short-term securities	2,286		809		1,708			—			4,803
Other investments	2,572		879		1			—			3,452
Total investments	48,813		22,241		1,910			—			72,964
Cash	131		136		2			—			269
Investment income accrued	408		174		4			—			586
Premiums receivable	4,594		2,191		—			—			6,785
Reinsurance recoverables	5,991		2,674		—			—			8,665
Ceded unearned premiums	669		72		—			—			741
Deferred acquisition costs	1,786		189		—			—			1,975
Contractholder receivables	3,613		967		—			—			4,580
Goodwill	2,583		1,002		—			—			3,585
Other intangible assets	203		68		—			—			271
Investment in subsidiaries	—		—		28,508			(28,508		)	—
Other assets	1,945		404		17			—			2,366
Total assets	$	70,736	$	30,118	$	30,441		$	(28,508	)	$	102,787
Liabilities
Claims and claim adjustment expense reserves	$	32,282	$	15,886	$	—		$	—		$	48,168
Unearned premium reserves	8,880		3,826		—			—			12,706
Contractholder payables	3,613		967		—			—			4,580
Payables for reinsurance premiums	255		176		—			—			431
Deferred taxes	175		76		(80		)	—			171
Debt	692		—		5,744			—			6,436
Other liabilities	4,317		1,191		348			—			5,856
Total liabilities	50,214		22,122		6,012			—			78,348
Shareholders’ equity
Common stock (1,750.0 shares authorized; 284.1 shares issued and outstanding)	—		390		22,419			(390		)	22,419
Additional paid-in capital	11,634		6,499		—			(18,133		)	—
Retained earnings	7,903		800		31,433			(8,693		)	31,443
Accumulated other comprehensive income	985		307		660			(1,292		)	660
Treasury stock, at cost (482.9 shares)	—		—		(30,083		)	—			(30,083		)
Total shareholders’ equity	20,522		7,996		24,429			(28,508		)	24,439
Total liabilities and shareholders’ equity	$	70,736	$	30,118	$	30,441		$	(28,508	)	$	102,787

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 nine months ended September 30, 2016

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,565		$	621		$	2,071		$	(2,186	)	$	2,071
Net adjustments to reconcile net income to net cash provided by operating activities	643			92			127			130			992
Net cash provided by operating activities	2,208			713			2,198			(2,056		)	3,063
Cash flows from investing activities
Proceeds from maturities of fixed maturities	4,854			1,788			6			—			6,648
Proceeds from sales of investments:
Fixed maturities	458			405			2			—			865
Equity securities	39			32			—			—			71
Real estate investments	—			69			—			—			69
Other investments	399			170			—			—			569
Purchases of investments:
Fixed maturities	(6,016		)	(2,978		)	(10		)	—			(9,004		)
Equity securities	(5		)	(29		)	(2		)	—			(36		)
Real estate investments	(1		)	(29		)	—			—			(30		)
Other investments	(328		)	(94		)	—			—			(422		)
Net (purchases) sales of short-term securities	(339		)	366			(162		)	—			(135		)
Securities transactions in course of settlement	422			86			3			—			511
Other	(236		)	(4		)	—			—			(240		)
Net cash used in investing activities	(753		)	(218		)	(163		)	—			(1,134		)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(1,650		)	—			(1,650		)
Treasury stock acquired — net employee share-based compensation	—			—			(71		)	—			(71		)
Dividends paid to shareholders	—			—			(569		)	—			(569		)
Payment of debt	—			—			(400		)	—			(400		)
Issuance of debt	—			—			491			—			491
Issuance of common stock — employee share options	—			—			164			—			164
Dividends paid to parent company	(1,550		)	(506		)	—			2,056			—
Net cash used in financing activities	(1,550		)	(506		)	(2,035		)	2,056			(2,035		)
Effect of exchange rate changes on cash	1			(6		)	—			—			(5		)
Net decrease in cash	(94		)	(17		)	—			—			(111		)
Cash at beginning of year	225			153			2			—			380
Cash at end of period	$	131		$	136		$	2		$	—		$	269
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	536		$	206		$	(94	)	$	—		$	648
Interest paid	$	40		$	—		$	183		$	—		$	223

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the nine months ended September 30, 2015

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,959		$	787		$	2,573		$	(2,746	)	$	2,573
Net adjustments to reconcile net income to net cash provided by operating activities	90			(247		)	76			182			101
Net cash provided by operating activities	2,049			540			2,649			(2,564		)	2,674
Cash flows from investing activities
Proceeds from maturities of fixed maturities	5,929			2,869			7			—			8,805
Proceeds from sales of investments:
Fixed maturities	935			620			—			—			1,555
Equity securities	14			24			—			—			38
Real estate investments	—			15			—			—			15
Other investments	341			164			—			—			505
Purchases of investments:
Fixed maturities	(6,845		)	(3,103		)	(24		)	—			(9,972		)
Equity securities	(3		)	(26		)	(2		)	—			(31		)
Real estate investments	—			(116		)	—			—			(116		)
Other investments	(311		)	(78		)	—			—			(389		)
Net purchases of short-term securities	(172		)	(184		)	(426		)	—			(782		)
Securities transactions in course of settlement	80			23			—			—			103
Other	(262		)	40			—			—			(222		)
Net cash provided by (used in) investing activities	(294		)	248			(445		)	—			(491		)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(2,150		)	—			(2,150		)
Treasury stock acquired — net employee share-based compensation	—			—			(73		)	—			(73		)
Dividends paid to shareholders	—			—			(557		)	—			(557		)
Issuance of debt	—			—			392			—			392
Issuance of common stock — employee share options	—			—			142			—			142
Excess tax benefits from share-based payment arrangements	—			—			42			—			42
Dividends paid to parent company	(1,774		)	(790		)	—			2,564			—
Net cash used in financing activities	(1,774		)	(790		)	(2,204		)	2,564			(2,204		)
Effect of exchange rate changes on cash	(1		)	(8		)	—			—			(9		)
Net decrease in cash	(20		)	(10		)	—			—			(30		)
Cash at beginning of year	221			151			2			—			374
Cash at end of period	$	201		$	141		$	2		$	—		$	344
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	748		$	286		$	(152	)	$	—		$	882
Interest paid	$	40		$	—		$	177		$	—		$	217