Consolidating Financial Statements (Unaudited) (tables)

9 Months Ended

Sep. 30, 2017

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, 2017

(in millions)	TPC		Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	4,466	$	2,057	$	—		$	—		$	6,523
Net investment income	405		189		7			(13		)	588
Fee income	113		—		—			—			113
Net realized investment gains (losses) (1)	6		56		(1		)	—			61
Other revenues	21		21		—			(2		)	40
Total revenues	5,011		2,323		6			(15		)	7,325
Claims and expenses
Claims and claim adjustment expenses	3,191		1,615		—			—			4,806
Amortization of deferred acquisition costs	716		343		—			—			1,059
General and administrative expenses	723		314		10			(2		)	1,045
Interest expense	12		—		83			—			95
Total claims and expenses	4,642		2,272		93			(2		)	7,005
Income (loss) before income taxes	369		51		(87		)	(13		)	320
Income tax expense (benefit)	74		17		(60		)	(4		)	27
Net income of subsidiaries	—		—		329			(329		)	—
Net income	$	295	$	34	$	302		$	(338	)	$	293

(1) Total other-than-temporary impairment (OTTI) for the three months ended September 30, 2017, 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	$	(2	)	$	(3	)	$	—	$	—	$	(5	)
OTTI losses recognized in net realized investment gains (losses)	$	(2	)	$	(3	)	$	—	$	—	$	(5	)
OTTI losses recognized in OCI	$	—		$	—		$	—	$	—	$	—

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 nine months ended September 30, 2017

(in millions)	TPC			Other Subsidiaries		TRV			Eliminations			Consolidated
Revenues
Premiums	$	13,039		$	6,018	$	—		$	—		$	19,057
Net investment income	1,218			574		17			(13		)	1,796
Fee income	342			—		—			—			342
Net realized investment gains (losses) (1)	(2		)	90		58			—			146
Other revenues	75			42		—			(7		)	110
Total revenues	14,672			6,724		75			(20		)	21,451
Claims and expenses
Claims and claim adjustment expenses	8,794			4,331		—			—			13,125
Amortization of deferred acquisition costs	2,077			1,017		—			—			3,094
General and administrative expenses	2,163			911		19			(7		)	3,086
Interest expense	36			—		240			—			276
Total claims and expenses	13,070			6,259		259			(7		)	19,581
Income (loss) before income taxes	1,602			465		(184		)	(13		)	1,870
Income tax expense (benefit)	361			125		(117		)	(4		)	365
Net income of subsidiaries	—			—		1,581			(1,581		)	—
Net income	$	1,241		$	340	$	1,514		$	(1,590	)	$	1,505

(1) Total other-than-temporary impairment (OTTI) for the nine months ended September 30, 2017, 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	$	(4	)	$	(7	)	$	—	$	—	$	(11	)
OTTI losses recognized in net realized investment gains (losses)	$	(5	)	$	(7	)	$	—	$	—	$	(12	)
OTTI gains recognized in OCI	$	1		$	—		$	—	$	—	$	1

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 (losses)	$	(13	)	$	(13	)	$	—	$	—	$	(26	)
OTTI losses recognized in OCI	$	(5	)	$	(5	)	$	—	$	—	$	(10	)

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

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months ended September 30, 2017

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	295	$	34		$	302		$	(338	)	$	293
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	—		(47		)	5			—			(42		)
Having credit losses recognized in the consolidated statement of income	1		1			—			—			2
Net changes in benefit plan assets and obligations	—		(1		)	(8		)	—			(9		)
Net changes in unrealized foreign currency translation	61		52			—			—			113
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries	62		5			(3		)	—			64
Income tax expense (benefit)	12		(11		)	4			—			5
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries	50		16			(7		)	—			59
Other comprehensive income of subsidiaries	—		—			66			(66		)	—
Other comprehensive income	50		16			59			(66		)	59
Comprehensive income	$	345	$	50		$	361		$	(404	)	$	352

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 nine months ended September 30, 2017

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Net income	$	1,241	$	340		$	1,514		$	(1,590	)	$	1,505
Other comprehensive income (loss):
Changes in net unrealized gains on investment securities:
Having no credit losses recognized in the consolidated statement of income	389		82			(42		)	—			429
Having credit losses recognized in the consolidated statement of income	3		1			—			—			4
Net changes in benefit plan assets and obligations	—		(2		)	27			—			25
Net changes in unrealized foreign currency translation	100		102			—			—			202
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries	492		183			(15		)	—			660
Income tax expense	151		38			1			—			190
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries	341		145			(16		)	—			470
Other comprehensive income of subsidiaries	—		—			486			(486		)	—
Other comprehensive income	341		145			470			(486		)	470
Comprehensive income	$	1,582	$	485		$	1,984		$	(2,076	)	$	1,975

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 Balance Sheet (Unaudited) [Table Text Block]

CONSOLIDATING BALANCE SHEET (Unaudited)

At September 30, 2017

(in millions)	TPC			Other Subsidiaries		TRV			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $60,727)	$	42,889		$	19,218	$	50		$	—		$	62,157
Equity securities, available for sale, at fair value (cost $509)	173			255		173			—			601
Real estate investments	55			868		—			—			923
Short-term securities	2,936			1,024		1,899			—			5,859
Other investments	2,666			885		1			—			3,552
Total investments	48,719			22,250		2,123			—			73,092
Cash	165			214		—			—			379
Investment income accrued	392			170		6			—			568
Premiums receivable	4,938			2,329		—			—			7,267
Reinsurance recoverables	5,791			2,554		—			—			8,345
Ceded unearned premiums	612			76		—			—			688
Deferred acquisition costs	1,880			197		—			—			2,077
Deferred taxes	(76		)	224		95			—			243
Contractholder receivables	3,813			944		—			—			4,757
Goodwill	2,593			1,362		—			(9		)	3,946
Other intangible assets	202			143		—			—			345
Investment in subsidiaries	—			—		28,036			(28,036		)	—
Other assets	2,247			91		266			—			2,604
Total assets	$	71,276		$	30,554	$	30,526		$	(28,045	)	$	104,311
Liabilities
Claims and claim adjustment expense reserves	$	33,358		$	16,392	$	—		$	—		$	49,750
Unearned premium reserves	9,225			4,022		—			—			13,247
Contractholder payables	3,813			944		—			—			4,757
Payables for reinsurance premiums	249			174		—			—			423
Debt	693			—		6,228			—			6,921
Other liabilities	3,946			967		562			—			5,475
Total liabilities	51,284			22,499		6,790			—			80,573
Shareholders’ equity
Common stock (1,750.0 shares authorized; 273.8 shares issued and 273.7 shares outstanding)	—			390		22,836			(390		)	22,836
Additional paid-in capital	11,634			6,970		—			(18,604		)	—
Retained earnings	7,989			683		33,108			(8,670		)	33,110
Accumulated other comprehensive income (loss)	369			12		(285		)	(381		)	(285		)
Treasury stock, at cost (498.3 shares)	—			—		(31,923		)	—			(31,923		)
Total shareholders’ equity	19,992			8,055		23,736			(28,045		)	23,738
Total liabilities and shareholders’ equity	$	71,276		$	30,554	$	30,526		$	(28,045	)	$	104,311

CONSOLIDATING BALANCE SHEET (Unaudited)

At December 31, 2016

(in millions)	TPC		Other Subsidiaries			TRV			Eliminations			Consolidated
Assets
Fixed maturities, available for sale, at fair value (amortized cost $59,650)	$	42,014	$	18,452		$	49		$	—		$	60,515
Equity securities, available for sale, at fair value (cost $504)	169		408			155			—			732
Real estate investments	56		872			—			—			928
Short-term securities	2,447		791			1,627			—			4,865
Other investments	2,569		878			1			—			3,448
Total investments	47,255		21,401			1,832			—			70,488
Cash	141		164			2			—			307
Investment income accrued	441		183			6			—			630
Premiums receivable	4,545		2,177			—			—			6,722
Reinsurance recoverables	5,664		2,623			—			—			8,287
Ceded unearned premiums	536		53			—			—			589
Deferred acquisition costs	1,741		182			—			—			1,923
Deferred taxes	216		224			25			—			465
Contractholder receivables	3,656		953			—			—			4,609
Goodwill	2,578		1,002			—			—			3,580
Other intangible assets	202		66			—			—			268
Investment in subsidiaries	—		—			27,137			(27,137		)	—
Other assets	1,973		370			34			—			2,377
Total assets	$	68,948	$	29,398		$	29,036		$	(27,137	)	$	100,245
Liabilities
Claims and claim adjustment expense reserves	$	32,168	$	15,781		$	—		$	—		$	47,949
Unearned premium reserves	8,575		3,754			—			—			12,329
Contractholder payables	3,656		953			—			—			4,609
Payables for reinsurance premiums	156		117			—			—			273
Debt	693		—			5,744			—			6,437
Other liabilities	4,106		1,239			82			—			5,427
Total liabilities	49,354		21,844			5,826			—			77,024
Shareholders’ equity
Common stock (1,750.0 shares authorized; 279.6 shares issued and outstanding)	—		390			22,614			(390		)	22,614
Additional paid-in capital	11,634		6,499			—			(18,133		)	—
Retained earnings	7,933		797			32,185			(8,719		)	32,196
Accumulated other comprehensive income (loss)	27		(132		)	(755		)	105			(755		)
Treasury stock, at cost (489.5 shares)	—		—			(30,834		)	—			(30,834		)
Total shareholders’ equity	19,594		7,554			23,210			(27,137		)	23,221
Total liabilities and shareholders’ equity	$	68,948	$	29,398		$	29,036		$	(27,137	)	$	100,245

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

CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)

For the nine months ended September 30, 2017

(in millions)	TPC			Other Subsidiaries			TRV			Eliminations			Consolidated
Cash flows from operating activities
Net income	$	1,241		$	340		$	1,514		$	(1,590	)	$	1,505
Net adjustments to reconcile net income to net cash provided by operating activities	975			508			285			(49		)	1,719
Net cash provided by operating activities	2,216			848			1,799			(1,639		)	3,224
Cash flows from investing activities
Proceeds from maturities of fixed maturities	4,961			1,618			2			—			6,581
Proceeds from sales of investments:
Fixed maturities	463			397			—			—			860
Equity securities	18			202			120			—			340
Real estate investments	—			23			—			—			23
Other investments	426			190			—			(13		)	603
Purchases of investments:
Fixed maturities	(5,906		)	(2,493		)	(4		)	—			(8,403		)
Equity securities	(5		)	(65		)	(123		)	—			(193		)
Real estate investments	—			(40		)	—			—			(40		)
Other investments	(305		)	(87		)	—			—			(392		)
Net purchases of short-term securities	(488		)	(230		)	(272		)	—			(990		)
Securities transactions in course of settlement	18			103			1			—			122
Acquisition, net of cash acquired	—			25			(477		)	13			(439		)
Other	(192		)	5			—			—			(187		)
Net cash used in investing activities	(1,010		)	(352		)	(753		)	—			(2,115		)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization	—			—			(1,028		)	—			(1,028		)
Treasury stock acquired — net employee share-based compensation	—			—			(61		)	—			(61		)
Dividends paid to shareholders	—			—			(589		)	—			(589		)
Payment of debt	—			—			(207		)	—			(207		)
Issuance of debt	—			—			689			—			689
Issuance of common stock — employee share options	—			—			148			—			148
Dividends paid to parent company	(1,185		)	(454		)	—			1,639			—
Net cash used in financing activities	(1,185		)	(454		)	(1,048		)	1,639			(1,048		)
Effect of exchange rate changes on cash	3			8			—			—			11
Net increase (decrease) in cash	24			50			(2		)	—			72
Cash at beginning of year	141			164			2			—			307
Cash at end of period	$	165		$	214		$	—		$	—		$	379
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	493		$	174		$	(200	)	$	—		$	467
Interest paid	$	40		$	—		$	177		$	—		$	217

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