Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 16, 2018 | |
Document and Entity Information | ||
Registrant name | Travelers Companies, Inc. | |
Central index key | 86,312 | |
Document type | 10-Q | |
Document period end date | Jun. 30, 2018 | |
Amendment flag | false | |
Current fiscal year end date | --12-31 | |
Filer category | Large Accelerated Filer | |
Common stock shares outstanding | 267,683,231 | |
Document fiscal year focus | 2,018 | |
Document fiscal period focus | Q2 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Revenues | |||||
Premiums | $ 6,695 | $ 6,351 | $ 13,232 | $ 12,534 | |
Net investment income | 595 | 598 | 1,198 | 1,208 | |
Fee income | 112 | 116 | 215 | 229 | |
Net realized investment gains | [1] | 36 | 80 | 25 | 85 |
Other revenues | 39 | 39 | 93 | 70 | |
Total revenues | 7,477 | 7,184 | 14,763 | 14,126 | |
Claims and expenses | |||||
Claims and claim adjustment expenses | 4,562 | 4,225 | 8,858 | 8,319 | |
Amortization of deferred acquisition costs | 1,081 | 1,032 | 2,142 | 2,035 | |
General and administrative expenses | 1,113 | 1,045 | 2,175 | 2,041 | |
Interest expense | 90 | 92 | 179 | 181 | |
Total claims and expenses | 6,846 | 6,394 | 13,354 | 12,576 | |
Income before income taxes | 631 | 790 | 1,409 | 1,550 | |
Income tax expense | 107 | 195 | 216 | 338 | |
Net income | $ 524 | $ 595 | $ 1,193 | $ 1,212 | |
Net income per share | |||||
Basic (in dollars per share) | $ 1.93 | $ 2.13 | $ 4.39 | $ 4.32 | |
Diluted (in dollars per share) | $ 1.92 | $ 2.11 | $ 4.35 | $ 4.28 | |
Weighted average number of common shares outstanding | |||||
Basic (in shares) | 268.7 | 277.5 | 269.8 | 278.6 | |
Diluted (in shares) | 271.1 | 280 | 272.5 | 281.2 | |
Cash dividends declared per common share (in dollars per share) | $ 0.77 | $ 0.72 | $ 1.49 | $ 1.39 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(6) million for the six months ended June 30, 2018 and 2017, respectively. Of total OTTI, credit losses of $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(7) million for the six months ended June 30, 2018 and 2017, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2018 and 2017, respectively, and $0 million and $1 million for the six months ended June 30, 2018 and 2017, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidated Statement of Inco3
Consolidated Statement of Income Parentheticals (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Total other-than-temporary impairment losses | $ (1) | $ (5) | $ (1) | $ (6) |
Other-than-temporary impairment, credit losses recognized in net realized investment gains | (5) | (7) | ||
Other-than-temporary impairment, credit losses recognized in net realized investment gains | (1) | (1) | ||
Unrealized losses from other changes in total other-than-temporary impairments recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income | $ 0 | $ 0 | ||
Unrealized gains from other changes in total other-than-temporary impairments recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income | $ 0 | $ 1 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 524 | $ 595 | $ 1,193 | $ 1,212 |
Other comprehensive income (loss): | ||||
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (298) | 327 | (1,501) | 471 |
Changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income | (12) | 2 | (14) | 2 |
Net changes in benefit plan assets and obligations | 21 | 17 | 43 | 34 |
Net changes in unrealized foreign currency translation | (158) | 48 | (152) | 89 |
Other comprehensive income (loss) before income taxes | (447) | 394 | (1,624) | 596 |
Income tax expense (benefit) | (81) | 123 | (325) | 185 |
Other comprehensive income (loss), net of taxes | (366) | 271 | (1,299) | 411 |
Comprehensive income (loss) | $ 158 | $ 866 | $ (106) | $ 1,623 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited at June 30, 2018) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||||
Fixed maturities, available for sale, at fair value (amortized cost $62,674 and $61,316) | $ 62,536 | $ 62,694 | ||
Equity securities, at fair value (cost $409) | 424 | |||
Equity securities, available for sale, at fair value (cost $440) | 453 | |||
Real estate investments | 954 | 932 | ||
Short-term securities | 3,692 | 4,895 | ||
Other investments | 3,555 | 3,528 | ||
Total investments | 71,161 | 72,502 | ||
Cash | 415 | 344 | $ 328 | $ 307 |
Investment income accrued | 610 | 606 | ||
Premiums receivable | 7,786 | 7,144 | ||
Reinsurance recoverables | 8,258 | 8,309 | ||
Ceded unearned premiums | 698 | 551 | ||
Deferred acquisition costs | 2,161 | 2,025 | ||
Deferred taxes | 463 | 70 | ||
Contractholder receivables | 4,830 | 4,775 | ||
Goodwill | 3,931 | 3,951 | ||
Other intangible assets | 356 | 342 | ||
Other assets | 2,854 | 2,864 | ||
Total assets | 103,523 | 103,483 | ||
Liabilities | ||||
Claims and claim adjustment expense reserves | 49,961 | 49,650 | ||
Unearned premium reserves | 13,755 | 12,915 | ||
Contractholder payables | 4,830 | 4,775 | ||
Payables for reinsurance premiums | 396 | 274 | ||
Debt | 6,464 | 6,571 | ||
Other liabilities | 5,494 | 5,567 | ||
Total liabilities | 80,900 | 79,752 | ||
Shareholders’ equity | ||||
Common stock (1,750.0 shares authorized; 267.8 and 271.5 shares issued, 267.7 and 271.4 shares outstanding) | 23,040 | 22,886 | ||
Retained earnings | 34,296 | 33,462 | ||
Accumulated other comprehensive loss | (1,688) | (343) | ||
Treasury stock, at cost (506.4 and 500.9 shares) | (33,025) | (32,274) | ||
Total shareholders’ equity | 22,623 | 23,731 | $ 23,858 | |
Total liabilities and shareholders’ equity | $ 103,523 | $ 103,483 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals (Unaudited at June 30, 2018) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 62,674 | $ 61,316 |
Equity securities, cost | $ 409 | |
Equity securities, available for sale, cost | $ 440 | |
Common stock, shares authorized (in shares) | 1,750,000,000 | 1,750,000,000 |
Common stock, shares issued (in shares) | 267,800,000 | 271,500,000 |
Common stock, shares outstanding (in shares) | 267,700,000 | 271,400,000 |
Treasury stock, at cost (in shares) | 506,400,000 | 500,900,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common stock [Member] | Retained earnings [Member] | Accumulated other comprehensive loss, net of tax [Member] | Treasury stock, at cost [Member] | Common shares outstanding [Member] |
Balance, beginning of year at Dec. 31, 2016 | $ 22,614 | $ 32,196 | $ (755) | $ (30,834) | ||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Employee share-based compensation | 94 | |||||
Compensation amortization under share-based plans | 73 | |||||
Net income | $ 1,212 | 1,212 | ||||
Dividends | (391) | |||||
Other | (1) | |||||
Other comprehensive income (loss) | 411 | 411 | ||||
Treasury stock acquired — share repurchase authorization | (700) | |||||
Net shares acquired related to employee share-based compensation plans | (61) | |||||
Balance, end of period at Jun. 30, 2017 | 23,858 | 22,781 | 33,016 | (344) | (31,595) | |
Balance, beginning of year (in shares) at Dec. 31, 2016 | 279.6 | |||||
Common shares outstanding | ||||||
Treasury stock acquired - share repurchase authorization (in shares) | (5.7) | |||||
Net shares issued under employee share-based compensation plans (in shares) | 2 | |||||
Balance, end of period (in shares) at Jun. 30, 2017 | 275.9 | |||||
Balance, beginning of year at Dec. 31, 2017 | $ 23,731 | 22,886 | 33,462 | (343) | (32,274) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Reclassification of certain tax effects from adoption of updated accounting guidance | (24) | |||||
Balance, beginning of year (in shares) at Dec. 31, 2017 | 271.4 | 271.4 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments | 22 | (22) | ||||
Balance, beginning of year at Dec. 31, 2017 | $ 23,731 | 22,886 | 33,462 | (343) | (32,274) | |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Employee share-based compensation | 77 | |||||
Compensation amortization under share-based plans | 77 | |||||
Reclassification of certain tax effects from adoption of updated accounting guidance | 24 | (24) | ||||
Net income | 1,193 | 1,193 | ||||
Dividends | (406) | |||||
Other | 1 | |||||
Other comprehensive income (loss) | (1,299) | (1,299) | ||||
Treasury stock acquired — share repurchase authorization | (700) | (700) | ||||
Net shares acquired related to employee share-based compensation plans | (51) | (51) | ||||
Balance, end of period at Jun. 30, 2018 | $ 22,623 | $ 23,040 | $ 34,296 | (1,688) | $ (33,025) | |
Balance, beginning of year (in shares) at Dec. 31, 2017 | 271.4 | 271.4 | ||||
Common shares outstanding | ||||||
Treasury stock acquired - share repurchase authorization (in shares) | (5.2) | (5.2) | ||||
Net shares issued under employee share-based compensation plans (in shares) | 1.5 | |||||
Balance, end of period (in shares) at Jun. 30, 2018 | 267.7 | 267.7 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments | $ (22) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Cash flows from operating activities | |||
Net income | $ 1,193 | $ 1,212 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net realized investment gains | [1] | (25) | (85) |
Depreciation and amortization | 411 | 409 | |
Deferred federal income tax expense (benefit) | (70) | 106 | |
Amortization of deferred acquisition costs | 2,142 | 2,035 | |
Equity in income from other investments | (169) | (210) | |
Premiums receivable | (660) | (609) | |
Reinsurance recoverables | 29 | 157 | |
Deferred acquisition costs | (2,284) | (2,157) | |
Claims and claim adjustment expense reserves | 435 | 498 | |
Unearned premium reserves | 879 | 689 | |
Other operating activities | (183) | (291) | |
Net cash provided by operating activities | 1,698 | 1,754 | |
Cash flows from investing activities | |||
Proceeds from maturities of fixed maturities | 3,657 | 4,300 | |
Proceeds from sales of investments: | |||
Fixed maturities | 2,607 | 563 | |
Equity securities | 92 | ||
Equity securities | 200 | ||
Real estate investments | 20 | ||
Other investments | 189 | 233 | |
Purchases of investments: | |||
Fixed maturities | (7,952) | (5,673) | |
Equity securities | (60) | ||
Equity securities | (166) | ||
Real estate investments | (44) | (26) | |
Other investments | (275) | (259) | |
Net (purchases) sales of short-term securities | 1,202 | (424) | |
Securities transactions in course of settlement | 279 | 170 | |
Other investing activities | (152) | (128) | |
Net cash used in investing activities | (457) | (1,190) | |
Cash flows from financing activities | |||
Treasury stock acquired — share repurchase authorization | (700) | (700) | |
Treasury stock acquired — net employee share-based compensation | (51) | (61) | |
Dividends paid to shareholders | (404) | (389) | |
Payment of debt | (600) | (207) | |
Issuance of debt | 491 | 689 | |
Issuance of common stock — employee share options | 98 | 118 | |
Net cash used in financing activities | (1,166) | (550) | |
Effect of exchange rate changes on cash | (4) | 7 | |
Net increase in cash | 71 | 21 | |
Cash at beginning of year | 344 | 307 | |
Cash at end of period | 415 | 328 | |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 238 | 323 | |
Interest paid | $ 175 | $ 178 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(6) million for the six months ended June 30, 2018 and 2017, respectively. Of total OTTI, credit losses of $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(7) million for the six months ended June 30, 2018 and 2017, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2018 and 2017, respectively, and $0 million and $1 million for the six months ended June 30, 2018 and 2017, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | BASIS OF PRESENTATION AND ACCOUNTING POLICIES Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the Company’s 2017 Annual Report). The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. Certain reclassifications have been made to the 2017 financial statements to conform to the 2018 presentation. Adoption of Accounting Standards Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the Financial Accounting Standards Board (FASB) issued updated guidance to address the recognition, measurement, presentation and disclosure of certain financial instruments. The updated guidance requires equity investments, except those accounted for under the equity method of accounting, that have readily determinable fair value to be measured at fair value with any changes in fair value recognized in net income. Equity securities that do not have readily determinable fair values may be measured at estimated fair value or cost less impairment, if any, adjusted for subsequent observable price changes, with changes in the carrying value recognized in net income. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The updated guidance was effective for the quarter ended March 31, 2018. The adoption of this guidance resulted in the recognition of $22 million of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased accumulated other comprehensive income (AOCI) by the same amount. The Company elected to report changes in the fair value of equity investments in net realized investment gains (losses). At December 31, 2017, equity investments were classified as available-for-sale on the Company's balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On February 14, 2018, the FASB issued updated guidance that allows a reclassification from AOCI to retained earnings of the stranded tax effects that occurred due to the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA). The updated guidance is effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which there are items impacted by the TCJA remaining in AOCI or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from AOCI to retained earnings as of January 1, 2018. This reclassification resulted in an increase in retained earnings of $24 million as of January 1, 2018 and a decrease in AOCI by the same amount. Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance to clarify the principles for recognizing revenue. The updated guidance was effective for reporting periods beginning after December 15, 2017, and requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. For the six months ended June 30, 2018, approximately $83 million , or less than 1% of the Company's total revenues, were within the scope of this updated guidance and were generated from the services described below. While insurance contracts are not within the scope of this updated guidance, the Company’s revenue related to certain services with no underlying insurance risk is subject to the updated guidance. These services include the following: (i) insurance-related services, such as risk management services, claims administration, loss control and risk management information services on behalf of non-insureds; (ii) servicing carrier fees for various residual market pools and associations; and (iii) administrative fees related to servicing third-party insurers’ obligations to participate in the Workers' Compensation Residual Market Plans in certain states. The revenues earned from these service contracts were not impacted by the adoption of the updated guidance. These revenues are earned on a pro rata basis over the contract service period and reported in fee income in the Company’s consolidated statement of income. Commissions earned from on-line insurance brokerage services are also subject to this updated guidance and were also not impacted by the adoption of the updated guidance. Commissions are earned upon collection of the gross premium in accordance with the contracts and an accrual is made to recognize policy cancellations, either at the policyholder’s direction or for non-payment. Commissions are reported in other revenues in the Company's consolidated statement of income. The Company does not capitalize the costs to obtain or fulfill the contracts for which revenues are reported in fee income and other income, and has not recognized any impairment losses on the receivables related to these contracts during the six months ended June 30, 2018. The Company adopted the updated guidance effective January 1, 2018. The adoption did not have an effect on the Company’s results of operations, financial position or liquidity. Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued updated guidance on the classification of cash flows related to certain activities in the statement of cash flows to reduce diversity in practice. The updated guidance was effective for reporting periods beginning after December 15, 2017 and was applied retrospectively to all periods presented. Under the new guidance, distributions received on equity method investments that are considered to be a return on investment are reported as cash flows from operating activities. These distributions were previously reported as cash flows from investing activities. The adoption of this guidance had no effect on the Company’s results of operations, financial position or liquidity. For information regarding accounting standards that the Company adopted during the years presented, see the “Adoption of Accounting Standards ” section of note 1 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. Accounting Standards Not Yet Adopted For information regarding accounting standards that the Company has not yet adopted, see the “Other Accounting Standards Not Yet Adopted ” section of note 1 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. Nature of Operations The Company’s results are reported in the following three business segments — Business Insurance, Bond & Specialty Insurance and Personal Insurance. These segments reflect the manner in which the Company’s businesses are currently managed and represent an aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. For more information regarding the Company’s nature of operations, see the “Nature of Operations ” section of note 1 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The following tables summarize the components of the Company’s revenues, income (loss) and total assets by reportable business segments: (For the three months ended June 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2018 Premiums $ 3,641 $ 601 $ 2,453 $ 6,695 Net investment income 440 57 98 595 Fee income 107 — 5 112 Other revenues 20 5 14 39 Total segment revenues (1) $ 4,208 $ 663 $ 2,570 $ 7,441 Segment income (loss) (1) $ 385 $ 204 $ (17 ) $ 572 2017 Premiums $ 3,504 $ 575 $ 2,272 $ 6,351 Net investment income 447 56 95 598 Fee income 112 — 4 116 Other revenues 15 6 15 36 Total segment revenues (1) $ 4,078 $ 637 $ 2,386 $ 7,101 Segment income (1) $ 429 $ 163 $ 12 $ 604 (1) Segment revenues for reportable business segments exclude net realized investment gains (losses). Segment income (loss) for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). (For the six months ended June 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2018 Premiums $ 7,209 $ 1,183 $ 4,840 $ 13,232 Net investment income 886 115 197 1,198 Fee income 206 — 9 215 Other revenues 51 11 31 93 Total segment revenues (1) $ 8,352 $ 1,309 $ 5,077 $ 14,738 Segment income (1) $ 837 $ 377 $ 112 $ 1,326 2017 Premiums $ 6,933 $ 1,130 $ 4,471 $ 12,534 Net investment income 900 117 191 1,208 Fee income 221 — 8 229 Other revenues 24 11 31 66 Total segment revenues (1) $ 8,078 $ 1,258 $ 4,701 $ 14,037 Segment income (1) $ 871 $ 308 $ 101 $ 1,280 (1) Segment revenues for reportable business segments exclude net realized investment gains (losses). Segment 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 Six Months Ended (in millions) 2018 2017 2018 2017 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 973 $ 999 $ 1,944 $ 1,975 Commercial automobile 587 521 1,149 1,027 Commercial property 453 443 891 878 General liability 535 498 1,056 989 Commercial multi-peril 822 797 1,627 1,571 Other 6 7 13 14 Total Domestic 3,376 3,265 6,680 6,454 International 265 239 529 479 Total Business Insurance 3,641 3,504 7,209 6,933 Bond & Specialty Insurance: Domestic: Fidelity and surety 253 245 499 479 General liability 248 239 490 474 Other 49 46 96 91 Total Domestic 550 530 1,085 1,044 International 51 45 98 86 Total Bond & Specialty Insurance 601 575 1,183 1,130 Personal Insurance: Domestic: Automobile 1,261 1,145 2,486 2,239 Homeowners and Other 1,022 977 2,017 1,932 Total Domestic 2,283 2,122 4,503 4,171 International 170 150 337 300 Total Personal Insurance 2,453 2,272 4,840 4,471 Total earned premiums 6,695 6,351 13,232 12,534 Net investment income 595 598 1,198 1,208 Fee income 112 116 215 229 Other revenues 39 36 93 66 Total segment revenues 7,441 7,101 14,738 14,037 Other revenues — 3 — 4 Net realized investment gains 36 80 25 85 Total revenues $ 7,477 $ 7,184 $ 14,763 $ 14,126 Income reconciliation, net of tax Total segment income $ 572 $ 604 $ 1,326 $ 1,280 Interest Expense and Other (1) (78 ) (61 ) (154 ) (123 ) Core income 494 543 1,172 1,157 Net realized investment gains 30 52 21 55 Net income $ 524 $ 595 $ 1,193 $ 1,212 _________________________________________________________ (1) The primary component of Interest Expense and Other was after-tax interest expense of $71 million and $60 million in the three months ended June 30, 2018 and 2017 , respectively, and $141 million and $118 million in the six months ended June 30, 2018 and 2017 , respectively. (in millions) June 30, December 31, Asset reconciliation Business Insurance $ 78,500 $ 78,082 Bond & Specialty Insurance 8,757 8,776 Personal Insurance 15,697 15,949 Total segment assets 102,954 102,807 Other assets (1) 569 676 Total consolidated assets $ 103,523 $ 103,483 _________________________________________________________ (1) The primary components of other assets at June 30, 2018 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets, and the primary components at December 31, 2017 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan, other intangible assets and deferred taxes. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows: Amortized Gross Unrealized Fair (at June 30, 2018, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,041 $ 1 $ 23 $ 2,019 Obligations of states, municipalities and political subdivisions: Local general obligation 13,992 201 136 14,057 Revenue 9,857 171 88 9,940 State general obligation 1,384 19 12 1,391 Pre-refunded 3,432 111 1 3,542 Total obligations of states, municipalities and political subdivisions 28,665 502 237 28,930 Debt securities issued by foreign governments 1,281 8 8 1,281 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,499 66 49 2,516 All other corporate bonds 28,102 161 563 27,700 Redeemable preferred stock 86 4 — 90 Total $ 62,674 $ 742 $ 880 $ 62,536 Amortized Gross Unrealized Fair (at December 31, 2017, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,080 $ 4 $ 8 $ 2,076 Obligations of states, municipalities and political subdivisions: Local general obligation 13,488 444 26 13,906 Revenue 11,307 338 19 11,626 State general obligation 1,443 44 3 1,484 Pre-refunded 3,758 142 1 3,899 Total obligations of states, municipalities and political subdivisions 29,996 968 49 30,915 Debt securities issued by foreign governments 1,505 14 10 1,509 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,334 87 11 2,410 All other corporate bonds 25,311 478 100 25,689 Redeemable preferred stock 90 5 — 95 Total $ 61,316 $ 1,556 $ 178 $ 62,694 Pre-refunded bonds of $3.54 billion and $3.90 billion at June 30, 2018 and December 31, 2017 , respectively, were bonds for which states or municipalities have established irrevocable trusts, almost exclusively comprised of U.S. Treasury securities and obligations of U.S. government and government agencies and authorities. These trusts were created to fund the payment of principal and interest due under the bonds. Proceeds from sales of fixed maturities classified as available for sale were $2.61 billion and $563 million during the six months ended June 30, 2018 and 2017 , respectively. Gross gains of $24 million and $17 million and gross losses of $11 million and $4 million were realized on those sales during the six months ended June 30, 2018 and 2017 , respectively. Equity Securities The cost and fair value of investments in equity securities were as follows: Fair (at June 30, 2018, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 335 $ 12 $ 5 $ 342 Non-redeemable preferred stock 74 11 3 82 Total $ 409 $ 23 $ 8 $ 424 Fair (at December 31, 2017, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 332 $ 8 $ 1 $ 339 Non-redeemable preferred stock 108 12 6 114 Total $ 440 $ 20 $ 7 $ 453 For the six months ended June 30, 2018, the Company recognized $3 million of net gains on equity securities still held as of June 30, 2018 . Proceeds from sales of equity securities previously classified as available for sale were $200 million during the six months ended June 30, 2017 . Gross gains of $88 million and gross losses of $1 million were realized on those sales during the six months ended June 30, 2017 . Unrealized Investment Losses The following tables summarize, for all investments in an unrealized loss position at June 30, 2018 and December 31, 2017 , the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of notes to the consolidated financial statements in the Company’s 2017 Annual Report in determining whether such investments are other-than-temporarily impaired. Less than 12 months 12 months or longer Total (at June 30, 2018, in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,410 $ 20 $ 458 $ 3 $ 1,868 $ 23 Obligations of states, municipalities and political subdivisions 6,321 101 2,856 136 9,177 237 Debt securities issued by foreign governments 206 2 241 6 447 8 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,557 41 256 8 1,813 49 All other corporate bonds 17,584 441 2,313 122 19,897 563 Total fixed maturities $ 27,078 $ 605 $ 6,124 $ 275 $ 33,202 $ 880 Less than 12 months 12 months or Total (at December 31, 2017, in millions) Fair Gross Fair Gross Fair Gross Unrealized Losses Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,150 $ 5 $ 470 $ 3 $ 1,620 $ 8 Obligations of states, municipalities and political subdivisions 505 2 2,959 47 3,464 49 Debt securities issued by foreign governments 394 6 111 4 505 10 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,021 7 250 4 1,271 11 All other corporate bonds 6,062 48 1,990 52 8,052 100 Total fixed maturities 9,132 68 5,780 110 14,912 178 Equity securities Public common stock 18 — 34 1 52 1 Non-redeemable preferred stock 3 — 56 6 59 6 Total equity securities 21 — 90 7 111 7 Total $ 9,153 $ 68 $ 5,870 $ 117 $ 15,023 $ 185 At June 30, 2018 , the amount of gross unrealized losses for all fixed maturity investments reported at fair value for which fair value was less than 80% of amortized cost was not significant. Impairment Charges Impairment charges included in net realized investment gains in the consolidated statement of income were $1 million and $5 million for the three months ended June 30, 2018 and 2017 , respectively, and $1 million and $7 million for the six months ended June 30, 2018 and 2017 , respectively. The cumulative amount of credit losses on fixed maturities held at June 30, 2018 and 2017 that were recognized in the consolidated statement of income from other-than-temporary impairments (OTTI) and for which a portion of the OTTI was recognized in other comprehensive income (loss) in the consolidated balance sheet was $67 million and $83 million , respectively. These credit losses represent less than 1% of the fixed maturity portfolio on a pre-tax basis and less than 1% of shareholders’ equity on an after-tax basis at both dates. There were no significant changes in the credit component of OTTI during the six months ended June 30, 2018 and 2017 from that disclosed in note 3 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. Derivative Financial Instruments From time to time, the Company enters into U.S. Treasury note futures contracts to modify the effective duration of specific assets within the investment portfolio. U.S. Treasury futures contracts require a daily mark-to-market and settlement with the broker. At June 30, 2018 and December 31, 2017 , the Company had $ 100 million and $400 million notional value of open U.S. Treasury futures contracts, respectively. Net realized investment gains and losses related to U.S. Treasury futures contracts for the three months and six months ended June 30, 2018 and 2017 were not significant. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows: • Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. • Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use. Valuation of Investments Reported at Fair Value in Financial Statements The Company utilized a pricing service to estimate fair value measurements for approximately 98% of its fixed maturities at both June 30, 2018 and December 31, 2017 . While the vast majority of the Company’s fixed maturities are included in Level 2, the Company holds a number of municipal bonds and corporate bonds which are not valued by the pricing service and estimates the fair value of these bonds using an internal pricing matrix with some unobservable inputs that are significant to the valuation. Due to the limited amount of observable market information, the Company includes the fair value estimates for these particular bonds in Level 3. The fair value of the fixed maturities for which the Company used an internal pricing matrix was $62 million and $127 million at June 30, 2018 and December 31, 2017 , respectively. Additionally, the Company holds a small amount of other fixed maturity investments that have characteristics that make them unsuitable for matrix pricing. For these fixed maturities, the Company obtains a quote from a broker (primarily the market maker). The fair value of the fixed maturities for which the Company received a broker quote was $139 million and $77 million at June 30, 2018 and December 31, 2017 , respectively. Due to the disclaimers on the quotes that indicate that the price is indicative only, the Company includes these fair value estimates in Level 3. For more information regarding the valuation of the Company’s fixed maturities, equity securities and other investments, see note 4 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. Fair Value Hierarchy The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis. An investment transferred between levels during a period is transferred at its fair value as of the beginning of that period. (at June 30, 2018, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,019 $ 2,019 $ — $ — Obligations of states, municipalities and political subdivisions 28,930 — 28,918 12 Debt securities issued by foreign governments 1,281 — 1,281 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,516 — 2,492 24 All other corporate bonds 27,700 — 27,535 165 Redeemable preferred stock 90 3 87 — Total fixed maturities 62,536 2,022 60,313 201 Equity securities Public common stock 342 342 — — Non-redeemable preferred stock 82 35 47 — Total equity securities 424 377 47 — Other investments 61 17 — 44 Total $ 63,021 $ 2,416 $ 60,360 $ 245 (at December 31, 2017, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,076 $ 2,076 $ — $ — Obligations of states, municipalities and political subdivisions 30,915 — 30,910 5 Debt securities issued by foreign governments 1,509 — 1,509 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,410 — 2,371 39 All other corporate bonds 25,689 11 25,518 160 Redeemable preferred stock 95 3 92 — Total fixed maturities 62,694 2,090 60,400 204 Equity securities Public common stock 339 339 — — Non-redeemable preferred stock 114 45 69 — Total equity securities 453 384 69 — Other investments 57 19 — 38 Total $ 63,204 $ 2,493 $ 60,469 $ 242 During the six months ended June 30, 2018 and the year ended December 31, 2017 , the Company’s transfers between Level 1 and Level 2 were not significant. There was no significant activity in Level 3 of the hierarchy during the six months ended June 30, 2018 or the year ended December 31, 2017 . Financial Instruments Disclosed, But Not Carried, At Fair Value The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized. (at June 30, 2018, in millions) Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 3,692 $ 3,692 $ 574 $ 3,083 $ 35 Financial liabilities: Debt $ 6,464 $ 7,130 $ — $ 7,130 $ — (at December 31, 2017, in millions) Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 4,895 $ 4,895 $ 1,238 $ 3,622 $ 35 Financial liabilities: Debt $ 6,471 $ 7,702 $ — $ 7,702 $ — Commercial paper $ 100 $ 100 $ — $ 100 $ — The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the six months ended June 30, 2018 or year ended December 31, 2017 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Company’s goodwill by segment. Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates. (in millions) June 30, December 31, Business Insurance $ 2,573 $ 2,585 Bond & Specialty Insurance 550 550 Personal Insurance 782 790 Other 26 26 Total $ 3,931 $ 3,951 Other Intangible Assets The following tables present a summary of the Company’s other intangible assets by major asset class. (at June 30, 2018, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 100 $ 7 $ 93 Contract-based (1) 208 171 37 Total subject to amortization 308 178 130 Not subject to amortization 226 — 226 Total $ 534 $ 178 $ 356 (at December 31, 2017, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 77 $ 4 $ 73 Contract-based (1) 209 167 42 Total subject to amortization 286 171 115 Not subject to amortization 227 — 227 Total $ 513 $ 171 $ 342 _________________________________________________________ (1) Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. Amortization expense of intangible assets was $4 million and $2 million for the three months ended June 30, 2018 and 2017 , respectively and $8 million and $5 million for the six months ended June 30, 2018 and 2017 , respectively. Intangible asset amortization expense is estimated to be $8 million for the remainder of 2018 , $16 million in 2019 , $15 million in 2020 , $14 million in 2021 and $13 million in 2022 . |
Insurance Claim Reserves
Insurance Claim Reserves | 6 Months Ended |
Jun. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Insurance Claim Reserves | INSURANCE CLAIM RESERVES Claims and claim adjustment expense reserves were as follows: (in millions) June 30, December 31, Property-casualty $ 49,945 $ 49,633 Accident and health 16 17 Total $ 49,961 $ 49,650 The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses for the six months ended June 30, 2018 and 2017 : (for the six months ended June 30, in millions) 2018 2017 Claims and claim adjustment expense reserves at beginning of year $ 49,633 $ 47,929 Less reinsurance recoverables on unpaid losses 8,123 7,981 Net reserves at beginning of year 41,510 39,948 Estimated claims and claim adjustment expenses for claims arising in the current year 9,084 8,493 Estimated decrease in claims and claim adjustment expenses for claims arising in prior years (268 ) (214 ) Total increases 8,816 8,279 Claims and claim adjustment expense payments for claims arising in: Current year 2,851 2,699 Prior years 5,454 4,966 Total payments 8,305 7,665 Unrealized foreign exchange (gain) loss (102 ) 117 Net reserves at end of period 41,919 40,679 Plus reinsurance recoverables on unpaid losses 8,026 7,877 Claims and claim adjustment expense reserves at end of period $ 49,945 $ 48,556 Gross claims and claim adjustment expense reserves at June 30, 2018 increased by $312 million from December 31, 2017 , primarily reflecting the impacts of (i) higher volumes of insured exposures and loss cost trends for the current accident year and (ii) catastrophe losses in the first six months of 2018, partially offset by the impacts of (iii) payments related to catastrophe losses incurred in 2017, (iv) net favorable prior year reserve development and (v) payments related to operations in runoff. Reinsurance recoverables on unpaid losses at June 30, 2018 decreased by $97 million from December 31, 2017 , primarily reflecting the impacts of cash collections in the first six months of 2018. Prior Year Reserve Development The following disclosures regarding reserve development are on a “net of reinsurance” basis. For the six months ended June 30, 2018 and 2017 , estimated claims and claim adjustment expenses incurred included $268 million and $214 million , respectively, of net favorable development for claims arising in prior years, including $336 million and $284 million , respectively, of net favorable prior year reserve development and $25 million of accretion of discount in each period that impacted the Company's results of operations. Business Insurance. Net favorable prior year reserve development in the second quarter of 2018 totaled $84 million , primarily driven by better than expected loss experience in the segment’s domestic operations in (i) the workers’ compensation product line for multiple accident years, partially offset by (ii) higher than expected loss experience in the general liability product line, including a $55 million increase to environmental reserves, for accident years 2008 and prior. Net favorable prior year reserve development in the second quarter of 2017 totaled $125 million , primarily driven by better than expected loss experience in the segment's domestic operations in (i) the workers’ compensation product line for recent accident years, (ii) the commercial multi-peril product line for liability coverages for multiple accident years and (iii) the general liability product line (excluding the increase to environmental reserves) for both primary and excess coverages for multiple accident years, partially offset by (iv) a $65 million increase to environmental reserves. Net favorable prior year reserve development in the first six months of 2018 totaled $150 million , primarily driven by better than expected loss experience in the segment’s domestic operations in (i) the workers’ compensation product line for multiple accident years and (ii) the commercial property product line for recent accident years, partially offset by (iii) higher than expected loss experience in the general liability product line, including a $55 million increase to environmental reserves, for accident years 2008 and prior and (iv) higher than expected loss experience in the commercial automobile product line for recent accident years. Net favorable prior year reserve development in the first six months of 2017 totaled $186 million , primarily driven by better than expected loss experience in the segment's domestic operations in (i) the workers' compensation product line for recent accident years, (ii) the general liability product line (excluding the increase to environmental reserves) for both primary and excess coverages for multiple accident years and (iii) the commercial multi-peril product line for liability coverages for multiple accident years, partially offset by (iv) a $65 million increase to environmental reserves. The net favorable prior year reserve development in the segment's domestic operations for the first six months of 2017 was partially offset by net unfavorable prior year reserve development in the segment's international operations in Europe due to the U.K. Ministry of Justice’s “Ogden” discount rate adjustment applied to lump sum bodily injury payouts. Bond & Specialty Insurance. Net favorable prior year reserve development in the second quarter and first six months of 2018 totaled $89 million and $124 million , respectively, and net favorable prior year reserve development in the second quarter and first six months of 2017 totaled $78 million and $92 million , respectively, primarily driven by better than expected loss experience in the segment’s domestic operations in the general liability product line for multiple accident years. Personal Insurance. Net favorable prior year reserve development in the second quarter and first six months of 2018 totaled $13 million and $62 million , respectively, primarily driven by better than expected loss experience in the segment's domestic operations in the Automobile product line for recent accident years. Net favorable prior year reserve development in the second quarter and first six months of 2017 totaled $0 and $6 million , respectively. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure | |
Other Comprehensive Income and Accumulated Other Comprehensive Income | OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the six months ended June 30, 2018 . Changes in Net Unrealized Gains (Losses) on Investment Securities (in millions) Having No Credit Losses Recognized in the Consolidated Statement of Income Having Credit Losses Recognized in the Consolidated Statement of Income Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity Net Unrealized Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2017 $ 747 $ 207 $ (686 ) $ (611 ) $ (343 ) Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018 (34 ) — — — (34 ) Income tax benefit (12 ) — — — (12 ) Net of income taxes (22 ) — — — (22 ) Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018 145 7 (141 ) (35 ) (24 ) Total effect of adoption of new guidance at January 1, 2018, net of tax 123 7 (141 ) (35 ) (46 ) Other comprehensive income (loss) (OCI) before reclassifications, net of tax (1,176 ) (11 ) — (137 ) (1,324 ) Amounts reclassified from AOCI, net of tax (9 ) — 34 — 25 Net OCI, current period (1,185 ) (11 ) 34 (137 ) (1,299 ) Balance, June 30, 2018 $ (315 ) $ 203 $ (793 ) $ (783 ) $ (1,688 ) The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit). Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income $ (298 ) $ 327 $ (1,501 ) $ 471 Income tax expense (benefit) (63 ) 116 (316 ) 167 Net of taxes (235 ) 211 (1,185 ) 304 Having credit losses recognized in the consolidated statement of income (12 ) 2 (14 ) 2 Income tax expense (benefit) (2 ) 1 (3 ) 1 Net of taxes (10 ) 1 (11 ) 1 Net changes in benefit plan assets and obligations 21 17 43 34 Income tax expense 4 6 9 11 Net of taxes 17 11 34 23 Net changes in unrealized foreign currency translation (158 ) 48 (152 ) 89 Income tax expense (benefit) (20 ) — (15 ) 6 Net of taxes (138 ) 48 (137 ) 83 Total other comprehensive income (loss) (447 ) 394 (1,624 ) 596 Total income tax expense (benefit) (81 ) 123 (325 ) 185 Total other comprehensive income (loss), net of taxes $ (366 ) $ 271 $ (1,299 ) $ 411 The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income. Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 Reclassification adjustments related to unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (12 ) $ (84 ) $ (12 ) $ (94 ) Income tax expense (2) (3 ) (30 ) (3 ) (33 ) Net of taxes (9 ) (54 ) (9 ) (61 ) Having credit losses recognized in the consolidated statement of income (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Reclassification adjustment related to benefit plan assets and obligations: Claims and claim adjustment expenses (3) 8 7 17 14 General and administrative expenses (3) 13 11 26 21 Total 21 18 43 35 Income tax benefit (2) 4 7 9 12 Net of taxes 17 11 34 23 Reclassification adjustment related to foreign currency translation (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Total reclassifications 9 (66 ) 31 (59 ) Total income tax (expense) benefit 1 (23 ) 6 (21 ) Total reclassifications, net of taxes $ 8 $ (43 ) $ 25 $ (38 ) _________________________________________________________ (1) (Increases) decreases net realized investment gains on the consolidated statement of income. (2) (Increases) decreases income tax expense on the consolidated statement of income. (3) Increases (decreases) expenses on the consolidated statement of income. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt Issuance . On March 7, 2018, the Company issued $500 million aggregate principal amount of 4.05% senior notes that will mature on March 7, 2048. The net proceeds of the issuance, after the deduction of the underwriting discount and expenses payable by the Company, totaled approximately $491 million . Interest on the senior notes is payable semi-annually in arrears on March 7 and September 7, commencing on September 7, 2018. Prior to September 7, 2047, the senior notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest to but excluding September 7, 2047 on any senior notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury rate (as defined in the senior notes), plus 15 basis points. On or after September 7, 2047, the senior notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any senior notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Debt Repayment . On May 15, 2018, the Company's $500 million , 5.80% senior notes matured and were fully paid. Credit Agreement . On June 4, 2018, the Company entered into a five -year, $1.0 billion revolving credit agreement with a syndicate of financial institutions, replacing its five -year $1.0 billion credit agreement that was due to expire on June 7, 2018. Pursuant to the credit agreement covenants, the Company must maintain a minimum consolidated net worth, defined as shareholders’ equity determined in accordance with GAAP (excluding accumulated other comprehensive income (loss)) plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital), less goodwill and other intangible assets. That threshold is adjusted downward by an amount equal to 70% of the aggregate amount of common stock repurchased by the Company after March 31, 2018, up to a maximum deduction of $1.75 billion . The threshold was $13.999 billion at June 30, 2018 and could decline to a minimum of $12.494 billion during the term of the credit agreement, subject to the Company repurchasing an additional $2.15 billion of its common stock. In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change in control, which would occur upon the acquisition of 35% or more of the Company’s voting stock or certain changes in the composition of the Company’s board of directors. At June 30, 2018 , the Company was in compliance with these covenants. Generally, the cost of borrowing under this agreement will range from LIBOR plus 75 basis points to LIBOR plus 137.5 basis points, depending on the Company’s credit ratings. At June 30, 2018 , that cost would have been LIBOR plus 100 basis points, had there been any amounts outstanding under the credit agreement. Commercial Paper. The Company had $0 and $100 million of commercial paper outstanding at June 30, 2018 and December 31, 2017 , respectively. |
Common Share Repurchases
Common Share Repurchases | 6 Months Ended |
Jun. 30, 2018 | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | |
Common Share Repurchases | COMMON SHARE REPURCHASES During the three months and six months ended June 30, 2018 , the Company repurchased 2.7 million and 5.2 million shares, respectively, under its share repurchase authorization, for a total cost of $350 million and $700 million , respectively. The average cost per share repurchased was $129.66 and $135.47 , respectively. In addition, the Company acquired 1,374 shares and 0.3 million shares for a total cost of $0.2 million and $51 million during the three months and six months ended June 30, 2018 , respectively, that were not part of the publicly announced share repurchase authorization. These shares consisted of shares retained to cover payroll withholding taxes in connection with the vesting of restricted stock unit awards and performance share awards, and shares used by employees to cover the price of certain stock options that were exercised. At June 30, 2018 , the Company had $3.86 billion of capacity remaining under its share repurchase authorization. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings per Share | EARNINGS PER SHARE The following is a reconciliation of the net income and share data used in the basic and diluted earnings per share computations for the periods presented: Three Months Ended Six Months Ended (in millions, except per share amounts) 2018 2017 2018 2017 Basic and Diluted Net income, as reported $ 524 $ 595 $ 1,193 $ 1,212 Participating share-based awards — allocated income (4 ) (5 ) (9 ) (9 ) Net income available to common shareholders — basic and diluted $ 520 $ 590 $ 1,184 $ 1,203 Common Shares Basic Weighted average shares outstanding 268.7 277.5 269.8 278.6 Diluted Weighted average shares outstanding 268.7 277.5 269.8 278.6 Weighted average effects of dilutive securities — stock options and performance shares 2.4 2.5 2.7 2.6 Total 271.1 280.0 272.5 281.2 Net Income per Common Share Basic $ 1.93 $ 2.13 $ 4.39 $ 4.32 Diluted $ 1.92 $ 2.11 $ 4.35 $ 4.28 |
Share-Based Incentive Compensat
Share-Based Incentive Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Incentive Compensation | SHARE-BASED INCENTIVE COMPENSATION The following information relates to fully vested stock option awards at June 30, 2018 : Stock Options Number Weighted Average Exercise Price Weighted Average Contractual Life Remaining Aggregate Intrinsic Value ($ in millions) Vested at end of period (1) 6,135,747 $ 98.60 6.0 years $ 158 Exercisable at end of period 3,850,199 $ 85.96 4.6 years $ 140 _________________________________________________________ (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. The total compensation cost for all share-based incentive compensation awards recognized in earnings was $33 million and $31 million for the three months ended June 30, 2018 and 2017 , respectively, and $77 million and $73 million for the six months ended June 30, 2018 and 2017 , respectively. The related tax benefits recognized in the consolidated statement of income were $6 million and $10 million for the three months ended June 30, 2018 and 2017 , respectively, and $14 million and $24 million for the six months ended June 30, 2018 and 2017 , respectively. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at June 30, 2018 was $201 million , which is expected to be recognized over a weighted-average period of 2.0 years . |
Pension Plans, Retirement Benef
Pension Plans, Retirement Benefits and Savings Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans, Retirement Benefits and Savings Plans | PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2018 2017 2018 2017 Net Periodic Benefit Cost: Service cost $ 33 $ 30 $ — $ — Non-service cost: Interest cost on benefit obligation 32 30 2 1 Expected return on plan assets (66 ) (60 ) — — Amortization of unrecognized: Prior service benefit (1 ) — (1 ) (1 ) Net actuarial loss 23 19 — — Total non-service cost (benefit) (12 ) (11 ) 1 — Net periodic benefit cost $ 21 $ 19 $ 1 $ — The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the three months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2018 2017 2018 2017 Service Cost: Claims and claim adjustment expenses $ 14 $ 12 $ — $ — General and administrative expenses 19 18 — — Total service cost 33 30 — — Non-Service Cost: Claims and claim adjustment expenses (5 ) (5 ) 1 — General and administrative expenses (7 ) (6 ) — — Total non-service cost (benefit) (12 ) (11 ) 1 — Net periodic benefit cost $ 21 $ 19 $ 1 $ — The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the six months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2018 2017 2018 2017 Net Periodic Benefit Cost: Service cost $ 66 $ 60 $ — $ — Non-service cost: Interest cost on benefit obligation 63 61 4 3 Expected return on plan assets (132 ) (120 ) — — Amortization of unrecognized: Prior service benefit (1 ) — (2 ) (2 ) Net actuarial loss 46 37 — — Total non-service cost (benefit) (24 ) (22 ) 2 1 Net periodic benefit cost $ 42 $ 38 $ 2 $ 1 The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the six months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2018 2017 2018 2017 Service Cost: Claims and claim adjustment expenses $ 27 $ 24 $ — $ — General and administrative expenses 39 36 — — Total service cost 66 60 — — Non-Service Cost: Claims and claim adjustment expenses (10 ) (9 ) 1 — General and administrative expenses (14 ) (13 ) 1 1 Total non-service cost (benefit) (24 ) (22 ) 2 1 Net periodic benefit cost $ 42 $ 38 $ 2 $ 1 |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Contingencies, Commitments and Guarantees disclosure | |
Contingencies, Commitments and Guarantees | CONTINGENCIES, COMMITMENTS AND GUARANTEES Contingencies The major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or to which any of the Company’s properties is subject are described below. Asbestos and Environmental Claims and Litigation In the ordinary course of its insurance business, the Company has received and continues to receive claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos- and environmental-related exposures that are the subject of related coverage litigation. The Company is defending asbestos- and environmental-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and comprehensive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. Currently, it is not possible to predict legal outcomes and their impact on the future development of claims and litigation relating to asbestos and environmental claims. Any such development will be affected by future court decisions and interpretations, as well as changes in applicable legislation. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company’s current insurance reserves. In addition, the Company’s estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or changes in estimates, or a range of either, cannot now be reasonably estimated and could result in income statement charges that could be material to the Company’s results of operations in future periods. Other Proceedings Not Arising Under Insurance Contracts or Reinsurance Agreements The Company is involved in other lawsuits, including lawsuits alleging extra-contractual damages relating to insurance contracts or reinsurance agreements, that do not arise under insurance contracts or reinsurance agreements. The legal costs associated with such lawsuits are expensed in the period in which the costs are incurred. Based upon currently available information, the Company does not believe it is reasonably possible that any such lawsuit or related lawsuits would be material to the Company’s results of operations or would have a material adverse effect on the Company’s financial position or liquidity. Other Commitments and Guarantees Commitments Investment Commitments — The Company has unfunded commitments to private equity limited partnerships and real estate partnerships in which it invests. These commitments totaled $1.60 billion and $1.56 billion at June 30, 2018 and December 31, 2017 , respectively. Guarantees The maximum amount of the Company’s contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $358 million at June 30, 2018 , of which $2 million was recognized on the balance sheet at that date. The maximum amount of the Company’s obligation for guarantees of certain investments and third-party loans related to certain investments that are quantifiable was $45 million at June 30, 2018 , approximately $23 million of which is indemnified by a third party. The maximum amount of the Company’s obligation related to the guarantee of certain insurance policy obligations of a former insurance subsidiary was $480 million at June 30, 2018 , all of which is indemnified by a third party. For more information regarding Company guarantees, see note 16 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. |
Consolidating Financial Stateme
Consolidating Financial Statements (Unaudited) | 6 Months Ended |
Jun. 30, 2018 | |
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure | |
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) | CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES The following consolidating financial statements of the Company have been prepared pursuant to Rule 3-10 of Regulation S-X. These consolidating financial statements have been prepared from the Company’s financial information on the same basis of accounting as the consolidated financial statements. The Travelers Companies, Inc. (excluding its subsidiaries, TRV) has fully and unconditionally guaranteed certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI), which totaled $700 million at June 30, 2018 . Prior to the merger of TPC and The St. Paul Companies, Inc. in 2004, TPC fully and unconditionally guaranteed the payment of all principal, premiums, if any, and interest on certain debt obligations of its wholly-owned subsidiary, TIGHI. Concurrent with the merger, TRV fully and unconditionally assumed such guarantee obligations of TPC. TPC is deemed to have no assets or operations independent of TIGHI. Consolidating financial information for TIGHI has not been presented herein because such financial information would be substantially the same as the financial information provided for TPC. CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 4,577 $ 2,118 $ — $ — $ 6,695 Net investment income 412 175 8 — 595 Fee income 112 — — — 112 Net realized investment gains (1) 18 16 2 — 36 Other revenues 13 27 — (1 ) 39 Total revenues 5,132 2,336 10 (1 ) 7,477 Claims and expenses Claims and claim adjustment expenses 3,064 1,498 — — 4,562 Amortization of deferred acquisition costs 727 354 — — 1,081 General and administrative expenses 766 343 5 (1 ) 1,113 Interest expense 13 — 77 — 90 Total claims and expenses 4,570 2,195 82 (1 ) 6,846 Income (loss) before income taxes 562 141 (72 ) — 631 Income tax expense (benefit) 104 21 (18 ) — 107 Net income of subsidiaries — — 578 (578 ) — Net income $ 458 $ 120 $ 524 $ (578 ) $ 524 ____________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the three months ended June 30, 2018 , and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (loss) (OCI) were as follows: (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Total OTTI losses $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in net realized investment gains $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 4,345 $ 2,006 $ — $ — $ 6,351 Net investment income 401 191 6 — 598 Fee income 116 — — — 116 Net realized investment gains (losses) (1) (4 ) 25 59 — 80 Other revenues 30 12 — (3 ) 39 Total revenues 4,888 2,234 65 (3 ) 7,184 Claims and expenses Claims and claim adjustment expenses 2,851 1,374 — — 4,225 Amortization of deferred acquisition costs 693 339 — — 1,032 General and administrative expenses 737 305 6 (3 ) 1,045 Interest expense 12 — 80 — 92 Total claims and expenses 4,293 2,018 86 (3 ) 6,394 Income (loss) before income taxes 595 216 (21 ) — 790 Income tax expense (benefit) 157 54 (16 ) — 195 Net income of subsidiaries — — 600 (600 ) — Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 _________________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the three months ended June 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 gains recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 9,045 $ 4,187 $ — $ — $ 13,232 Net investment income 824 360 14 — 1,198 Fee income 215 — — — 215 Net realized investment gains (1) 20 4 1 — 25 Other revenues 40 55 — (2 ) 93 Total revenues 10,144 4,606 15 (2 ) 14,763 Claims and expenses Claims and claim adjustment expenses 5,974 2,884 — — 8,858 Amortization of deferred acquisition costs 1,432 710 — — 2,142 General and administrative expenses 1,495 671 11 (2 ) 2,175 Interest expense 24 — 155 — 179 Total claims and expenses 8,925 4,265 166 (2 ) 13,354 Income (loss) before income taxes 1,219 341 (151 ) — 1,409 Income tax expense (benefit) 210 53 (47 ) — 216 Net income of subsidiaries — — 1,297 (1,297 ) — Net income $ 1,009 $ 288 $ 1,193 $ (1,297 ) $ 1,193 _________________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the six months ended June 30, 2018 , and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (loss) (OCI) were as follows: (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Total OTTI losses $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in net realized investment gains $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 8,573 $ 3,961 $ — $ — $ 12,534 Net investment income 813 385 10 — 1,208 Fee income 229 — — — 229 Net realized investment gains (losses) (1) (8 ) 34 59 — 85 Other revenues 54 21 — (5 ) 70 Total revenues 9,661 4,401 69 (5 ) 14,126 Claims and expenses Claims and claim adjustment expenses 5,603 2,716 — — 8,319 Amortization of deferred acquisition costs 1,361 674 — — 2,035 General and administrative expenses 1,440 597 9 (5 ) 2,041 Interest expense 24 — 157 — 181 Total claims and expenses 8,428 3,987 166 (5 ) 12,576 Income (loss) before income taxes 1,233 414 (97 ) — 1,550 Income tax expense (benefit) 287 108 (57 ) — 338 Net income of subsidiaries — — 1,252 (1,252 ) — Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 _________________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the six months ended June 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 ) $ (4 ) $ — $ — $ (6 ) OTTI losses recognized in net realized investment gains (losses) $ (3 ) $ (4 ) $ — $ — $ (7 ) OTTI gains recognized in OCI $ 1 $ — $ — $ — $ 1 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) For the three months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 458 $ 120 $ 524 $ (578 ) $ 524 Other comprehensive income (loss): Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (209 ) (89 ) — — (298 ) Having credit losses recognized in the consolidated statement of income (10 ) (2 ) — — (12 ) Net changes in benefit plan assets and obligations — — 21 — 21 Net changes in unrealized foreign currency translation (77 ) (81 ) — — (158 ) Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries (296 ) (172 ) 21 — (447 ) Income tax benefit (58 ) (21 ) (2 ) — (81 ) Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries (238 ) (151 ) 23 — (366 ) Other comprehensive loss of subsidiaries — — (389 ) 389 — Other comprehensive loss (238 ) (151 ) (366 ) 389 (366 ) Comprehensive income (loss) $ 220 $ (31 ) $ 158 $ (189 ) $ 158 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the three months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 296 85 (54 ) — 327 Having credit losses recognized in the consolidated statement of income 1 1 — — 2 Net changes in benefit plan assets and obligations — (1 ) 18 — 17 Net changes in unrealized foreign currency translation 14 34 — — 48 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 311 119 (36 ) — 394 Income tax expense (benefit) 102 33 (12 ) — 123 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 209 86 (24 ) — 271 Other comprehensive income of subsidiaries — — 295 (295 ) — Other comprehensive income 209 86 271 (295 ) 271 Comprehensive income $ 647 $ 248 $ 866 $ (895 ) $ 866 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) For the six months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 1,009 $ 288 $ 1,193 $ (1,297 ) $ 1,193 Other comprehensive income (loss): Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (1,047 ) (453 ) (1 ) — (1,501 ) Having credit losses recognized in the consolidated statement of income (11 ) (3 ) — — (14 ) Net changes in benefit plan assets and obligations — — 43 — 43 Net changes in unrealized foreign currency translation (102 ) (50 ) — — (152 ) Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries (1,160 ) (506 ) 42 — (1,624 ) Income tax expense (benefit) (233 ) (98 ) 6 — (325 ) Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries (927 ) (408 ) 36 — (1,299 ) Other comprehensive loss of subsidiaries — — (1,335 ) 1,335 — Other comprehensive loss (927 ) (408 ) (1,299 ) 1,335 (1,299 ) Comprehensive income (loss) $ 82 $ (120 ) $ (106 ) $ 38 $ (106 ) CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 389 129 (47 ) — 471 Having credit losses recognized in the consolidated statement of income 2 — — — 2 Net changes in benefit plan assets and obligations — (1 ) 35 — 34 Net changes in unrealized foreign currency translation 39 50 — — 89 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 430 178 (12 ) — 596 Income tax expense (benefit) 139 49 (3 ) — 185 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 291 129 (9 ) — 411 Other comprehensive income of subsidiaries — — 420 (420 ) — Other comprehensive income 291 129 411 (420 ) 411 Comprehensive income $ 1,237 $ 435 $ 1,623 $ (1,672 ) $ 1,623 CONSOLIDATING BALANCE SHEET (Unaudited) At June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $62,674) $ 43,192 $ 19,260 $ 84 $ — $ 62,536 Equity securities, at fair value (cost $409) 131 110 183 — 424 Real estate investments 54 900 — — 954 Short-term securities 1,765 530 1,397 — 3,692 Other investments 2,730 824 1 — 3,555 Total investments 47,872 21,624 1,665 — 71,161 Cash 231 184 — — 415 Investment income accrued 424 182 4 — 610 Premiums receivable 5,251 2,535 — — 7,786 Reinsurance recoverables 5,797 2,461 — — 8,258 Ceded unearned premiums 610 88 — — 698 Deferred acquisition costs 1,955 206 — — 2,161 Deferred taxes 180 295 (12 ) — 463 Contractholder receivables 3,909 921 — — 4,830 Goodwill 2,584 1,356 — (9 ) 3,931 Other intangible assets 225 131 — — 356 Investment in subsidiaries — — 26,630 (26,630 ) — Other assets 2,077 166 632 (21 ) 2,854 Total assets $ 71,115 $ 30,149 $ 28,919 $ (26,660 ) $ 103,523 Liabilities Claims and claim adjustment expense reserves $ 33,579 $ 16,382 $ — $ — $ 49,961 Unearned premium reserves 9,542 4,213 — — 13,755 Contractholder payables 3,909 921 — — 4,830 Payables for reinsurance premiums 230 166 — — 396 Debt 693 21 5,771 (21 ) 6,464 Other liabilities 4,188 778 528 — 5,494 Total liabilities 52,141 22,481 6,299 (21 ) 80,900 Shareholders’ equity Common stock (1,750.0 shares authorized; 267.8 shares issued and 267.7 shares outstanding) — 390 23,040 (390 ) 23,040 Additional paid-in capital 11,634 6,972 — (18,606 ) — Retained earnings 7,869 685 34,293 (8,551 ) 34,296 Accumulated other comprehensive loss (529 ) (379 ) (1,688 ) 908 (1,688 ) Treasury stock, at cost (506.4 shares) — — (33,025 ) — (33,025 ) Total shareholders’ equity 18,974 7,668 22,620 (26,639 ) 22,623 Total liabilities and shareholders’ equity $ 71,115 $ 30,149 $ 28,919 $ (26,660 ) $ 103,523 CONSOLIDATING BALANCE SHEET (Unaudited) At December 31, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $61,316) $ 43,240 $ 19,372 $ 82 $ — $ 62,694 Equity securities, available for sale, at fair value (cost $440) 161 111 181 — 453 Real estate investments 54 878 — — 932 Short-term securities 2,751 914 1,230 — 4,895 Other investments 2,673 854 1 — 3,528 Total investments 48,879 22,129 1,494 — 72,502 Cash 157 187 — — 344 Investment income accrued 418 183 5 — 606 Premiums receivable 4,852 2,292 — — 7,144 Reinsurance recoverables 5,842 2,467 — — 8,309 Ceded unearned premiums 493 58 — — 551 Deferred acquisition costs 1,835 190 — — 2,025 Deferred taxes (89 ) 173 (14 ) — 70 Contractholder receivables 3,854 921 — — 4,775 Goodwill 2,592 1,368 — (9 ) 3,951 Other intangible assets 202 140 — — 342 Investment in subsidiaries — — 27,946 (27,946 ) — Other assets 2,181 (3 ) 700 (14 ) 2,864 Total assets $ 71,216 $ 30,105 $ 30,131 $ (27,969 ) $ 103,483 Liabilities Claims and claim adjustment expense reserves $ 33,386 $ 16,264 $ — $ — $ 49,650 Unearned premium reserves 8,957 3,958 — — 12,915 Contractholder payables 3,854 921 — — 4,775 Payables for reinsurance premiums 165 109 — — 274 Debt 693 14 5,878 (14 ) 6,571 Other liabilities 4,161 882 524 — 5,567 Total liabilities 51,216 22,148 6,402 (14 ) 79,752 Shareholders’ equity Common stock (1,750.0 shares authorized; 271.5 shares issued and 271.4 shares outstanding) — 390 22,886 (390 ) 22,886 Additional paid-in capital 11,634 6,972 — (18,606 ) — Retained earnings 8,036 594 33,460 (8,628 ) 33,462 Accumulated other comprehensive income (loss) 330 1 (343 ) (331 ) (343 ) Treasury stock, at cost (500.9 shares) — — (32,274 ) — (32,274 ) Total shareholders’ equity 20,000 7,957 23,729 (27,955 ) 23,731 Total liabilities and shareholders’ equity $ 71,216 $ 30,105 $ 30,131 $ (27,969 ) $ 103,483 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Cash flows from operating activities Net income $ 1,009 $ 288 $ 1,193 $ (1,297 ) $ 1,193 Net adjustments to reconcile net income to net cash provided by operating activities 323 11 146 25 505 Net cash provided by operating activities 1,332 299 1,339 (1,272 ) 1,698 Cash flows from investing activities Proceeds from maturities of fixed maturities 2,730 914 13 — 3,657 Proceeds from sales of investments: Fixed maturities 1,847 759 1 — 2,607 Equity securities 33 59 — — 92 Real estate investments — — — — — Other investments 133 56 — — 189 Purchases of investments: Fixed maturities (5,762 ) (2,173 ) (17 ) — (7,952 ) Equity securities (2 ) (56 ) (2 ) — (60 ) Real estate investments — (44 ) — — (44 ) Other investments (232 ) (43 ) — — (275 ) Net sales (purchases) of short-term securities 986 383 (167 ) — 1,202 Securities transactions in course of settlement 268 12 (1 ) — 279 Other (148 ) (4 ) — — (152 ) Net cash used in investing activities (147 ) (137 ) (173 ) — (457 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (700 ) — (700 ) Treasury stock acquired — net employee share-based compensation — — (51 ) — (51 ) Dividends paid to shareholders — — (404 ) — (404 ) Payment of debt — — (600 ) — (600 ) Issuance of debt — 7 491 (7 ) 491 Issuance of common stock — employee share options — — 98 — 98 Dividends paid to parent company (1,109 ) (170 ) — 1,279 — Net cash used in financing activities (1,109 ) (163 ) (1,166 ) 1,272 (1,166 ) Effect of exchange rate changes on cash (2 ) (2 ) — — (4 ) Net increase (decrease) in cash 74 (3 ) — — 71 Cash at beginning of year 157 187 — — 344 Cash at end of period $ 231 $ 184 $ — $ — $ 415 Supplemental disclosure of cash flow information Income taxes paid (received) $ 193 $ 171 $ (126 ) $ — $ 238 Interest paid $ 24 $ — $ 151 $ — $ 175 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Cash flows from operating activities Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Net adjustments to reconcile net income to net cash provided by operating activities 341 83 223 (105 ) 542 Net cash provided by operating activities 1,287 389 1,435 (1,357 ) 1,754 Cash flows from investing activities Proceeds from maturities of fixed maturities 3,211 1,087 2 — 4,300 Proceeds from sales of investments: Fixed maturities 285 278 — — 563 Equity securities 4 75 121 — 200 Real estate investments — 20 — — 20 Other investments 176 57 — — 233 Purchases of investments: Fixed maturities (4,160 ) (1,511 ) (2 ) — (5,673 ) Equity securities (3 ) (41 ) (122 ) — (166 ) Real estate investments — (26 ) — — (26 ) Other investments (202 ) (57 ) — — (259 ) Net sales (purchases) of short-term securities 383 78 (885 ) — (424 ) Securities transactions in course of settlement 105 64 1 — 170 Other (134 ) 6 — — (128 ) Net cash provided by (used in) investing activities (335 ) 30 (885 ) — (1,190 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (700 ) — (700 ) Treasury stock acquired — net employee share-based compensation — — (61 ) — (61 ) Dividends paid to shareholders — — (389 ) — (389 ) Payment of debt — — (207 ) — (207 ) Issuance of debt — — 689 — 689 Issuance of common stock — employee share options — — 118 — 118 Dividends paid to parent company (961 ) (396 ) — 1,357 — Net cash used in financing activities (961 ) (396 ) (550 ) 1,357 (550 ) Effect of exchange rate changes on cash 2 5 — — 7 Net increase (decrease) in cash (7 ) 28 — — 21 Cash at beginning of year 141 164 2 — 307 Cash at end of period $ 134 $ 192 $ 2 $ — $ 328 Supplemental disclosure of cash flow information Income taxes paid (received) $ 336 $ 119 $ (132 ) $ — $ 323 Interest paid $ 24 $ — $ 154 $ — $ 178 |
Basis of Presentation and Acc23
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Policies, Basis of Presentation [Policy Text Block] | Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the Company’s 2017 Annual Report). The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. Certain reclassifications have been made to the 2017 financial statements to conform to the 2018 presentation. |
Accounting Policies, Adoption of Accounting Standards [Policy Text Block] | Adoption of Accounting Standards Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the Financial Accounting Standards Board (FASB) issued updated guidance to address the recognition, measurement, presentation and disclosure of certain financial instruments. The updated guidance requires equity investments, except those accounted for under the equity method of accounting, that have readily determinable fair value to be measured at fair value with any changes in fair value recognized in net income. Equity securities that do not have readily determinable fair values may be measured at estimated fair value or cost less impairment, if any, adjusted for subsequent observable price changes, with changes in the carrying value recognized in net income. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The updated guidance was effective for the quarter ended March 31, 2018. The adoption of this guidance resulted in the recognition of $22 million of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased accumulated other comprehensive income (AOCI) by the same amount. The Company elected to report changes in the fair value of equity investments in net realized investment gains (losses). At December 31, 2017, equity investments were classified as available-for-sale on the Company's balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On February 14, 2018, the FASB issued updated guidance that allows a reclassification from AOCI to retained earnings of the stranded tax effects that occurred due to the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA). The updated guidance is effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which there are items impacted by the TCJA remaining in AOCI or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from AOCI to retained earnings as of January 1, 2018. This reclassification resulted in an increase in retained earnings of $24 million as of January 1, 2018 and a decrease in AOCI by the same amount. Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance to clarify the principles for recognizing revenue. The updated guidance was effective for reporting periods beginning after December 15, 2017, and requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. For the six months ended June 30, 2018, approximately $83 million , or less than 1% of the Company's total revenues, were within the scope of this updated guidance and were generated from the services described below. While insurance contracts are not within the scope of this updated guidance, the Company’s revenue related to certain services with no underlying insurance risk is subject to the updated guidance. These services include the following: (i) insurance-related services, such as risk management services, claims administration, loss control and risk management information services on behalf of non-insureds; (ii) servicing carrier fees for various residual market pools and associations; and (iii) administrative fees related to servicing third-party insurers’ obligations to participate in the Workers' Compensation Residual Market Plans in certain states. The revenues earned from these service contracts were not impacted by the adoption of the updated guidance. These revenues are earned on a pro rata basis over the contract service period and reported in fee income in the Company’s consolidated statement of income. Commissions earned from on-line insurance brokerage services are also subject to this updated guidance and were also not impacted by the adoption of the updated guidance. Commissions are earned upon collection of the gross premium in accordance with the contracts and an accrual is made to recognize policy cancellations, either at the policyholder’s direction or for non-payment. Commissions are reported in other revenues in the Company's consolidated statement of income. The Company does not capitalize the costs to obtain or fulfill the contracts for which revenues are reported in fee income and other income, and has not recognized any impairment losses on the receivables related to these contracts during the six months ended June 30, 2018. The Company adopted the updated guidance effective January 1, 2018. The adoption did not have an effect on the Company’s results of operations, financial position or liquidity. Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued updated guidance on the classification of cash flows related to certain activities in the statement of cash flows to reduce diversity in practice. The updated guidance was effective for reporting periods beginning after December 15, 2017 and was applied retrospectively to all periods presented. Under the new guidance, distributions received on equity method investments that are considered to be a return on investment are reported as cash flows from operating activities. These distributions were previously reported as cash flows from investing activities. The adoption of this guidance had no effect on the Company’s results of operations, financial position or liquidity. For information regarding accounting standards that the Company adopted during the years presented, see the “Adoption of Accounting Standards ” section of note 1 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Company's revenues and income by segment [Table Text Block] | The following tables summarize the components of the Company’s revenues, income (loss) and total assets by reportable business segments: (For the three months ended June 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2018 Premiums $ 3,641 $ 601 $ 2,453 $ 6,695 Net investment income 440 57 98 595 Fee income 107 — 5 112 Other revenues 20 5 14 39 Total segment revenues (1) $ 4,208 $ 663 $ 2,570 $ 7,441 Segment income (loss) (1) $ 385 $ 204 $ (17 ) $ 572 2017 Premiums $ 3,504 $ 575 $ 2,272 $ 6,351 Net investment income 447 56 95 598 Fee income 112 — 4 116 Other revenues 15 6 15 36 Total segment revenues (1) $ 4,078 $ 637 $ 2,386 $ 7,101 Segment income (1) $ 429 $ 163 $ 12 $ 604 (1) Segment revenues for reportable business segments exclude net realized investment gains (losses). Segment income (loss) for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). (For the six months ended June 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2018 Premiums $ 7,209 $ 1,183 $ 4,840 $ 13,232 Net investment income 886 115 197 1,198 Fee income 206 — 9 215 Other revenues 51 11 31 93 Total segment revenues (1) $ 8,352 $ 1,309 $ 5,077 $ 14,738 Segment income (1) $ 837 $ 377 $ 112 $ 1,326 2017 Premiums $ 6,933 $ 1,130 $ 4,471 $ 12,534 Net investment income 900 117 191 1,208 Fee income 221 — 8 229 Other revenues 24 11 31 66 Total segment revenues (1) $ 8,078 $ 1,258 $ 4,701 $ 14,037 Segment income (1) $ 871 $ 308 $ 101 $ 1,280 (1) Segment revenues for reportable business segments exclude net realized investment gains (losses). Segment income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). |
Business segment reconciliations of revenue and income, net of tax [Table Text Block] | Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 973 $ 999 $ 1,944 $ 1,975 Commercial automobile 587 521 1,149 1,027 Commercial property 453 443 891 878 General liability 535 498 1,056 989 Commercial multi-peril 822 797 1,627 1,571 Other 6 7 13 14 Total Domestic 3,376 3,265 6,680 6,454 International 265 239 529 479 Total Business Insurance 3,641 3,504 7,209 6,933 Bond & Specialty Insurance: Domestic: Fidelity and surety 253 245 499 479 General liability 248 239 490 474 Other 49 46 96 91 Total Domestic 550 530 1,085 1,044 International 51 45 98 86 Total Bond & Specialty Insurance 601 575 1,183 1,130 Personal Insurance: Domestic: Automobile 1,261 1,145 2,486 2,239 Homeowners and Other 1,022 977 2,017 1,932 Total Domestic 2,283 2,122 4,503 4,171 International 170 150 337 300 Total Personal Insurance 2,453 2,272 4,840 4,471 Total earned premiums 6,695 6,351 13,232 12,534 Net investment income 595 598 1,198 1,208 Fee income 112 116 215 229 Other revenues 39 36 93 66 Total segment revenues 7,441 7,101 14,738 14,037 Other revenues — 3 — 4 Net realized investment gains 36 80 25 85 Total revenues $ 7,477 $ 7,184 $ 14,763 $ 14,126 Income reconciliation, net of tax Total segment income $ 572 $ 604 $ 1,326 $ 1,280 Interest Expense and Other (1) (78 ) (61 ) (154 ) (123 ) Core income 494 543 1,172 1,157 Net realized investment gains 30 52 21 55 Net income $ 524 $ 595 $ 1,193 $ 1,212 _________________________________________________________ (1) The primary component of Interest Expense and Other was after-tax interest expense of $71 million and $60 million in the three months ended June 30, 2018 and 2017 , respectively, and $141 million and $118 million in the six months ended June 30, 2018 and 2017 , respectively. |
Asset reconciliation [Table Text Block] | (in millions) June 30, December 31, Asset reconciliation Business Insurance $ 78,500 $ 78,082 Bond & Specialty Insurance 8,757 8,776 Personal Insurance 15,697 15,949 Total segment assets 102,954 102,807 Other assets (1) 569 676 Total consolidated assets $ 103,523 $ 103,483 _________________________________________________________ (1) The primary components of other assets at June 30, 2018 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets, and the primary components at December 31, 2017 were accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan, other intangible assets and deferred taxes. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Amortized cost and fair value of investments in fixed maturities [Table Text Block] | The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows: Amortized Gross Unrealized Fair (at June 30, 2018, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,041 $ 1 $ 23 $ 2,019 Obligations of states, municipalities and political subdivisions: Local general obligation 13,992 201 136 14,057 Revenue 9,857 171 88 9,940 State general obligation 1,384 19 12 1,391 Pre-refunded 3,432 111 1 3,542 Total obligations of states, municipalities and political subdivisions 28,665 502 237 28,930 Debt securities issued by foreign governments 1,281 8 8 1,281 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,499 66 49 2,516 All other corporate bonds 28,102 161 563 27,700 Redeemable preferred stock 86 4 — 90 Total $ 62,674 $ 742 $ 880 $ 62,536 Amortized Gross Unrealized Fair (at December 31, 2017, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,080 $ 4 $ 8 $ 2,076 Obligations of states, municipalities and political subdivisions: Local general obligation 13,488 444 26 13,906 Revenue 11,307 338 19 11,626 State general obligation 1,443 44 3 1,484 Pre-refunded 3,758 142 1 3,899 Total obligations of states, municipalities and political subdivisions 29,996 968 49 30,915 Debt securities issued by foreign governments 1,505 14 10 1,509 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,334 87 11 2,410 All other corporate bonds 25,311 478 100 25,689 Redeemable preferred stock 90 5 — 95 Total $ 61,316 $ 1,556 $ 178 $ 62,694 |
Cost and fair value of investments in equity securities [Table Text Block] | Fair (at June 30, 2018, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 335 $ 12 $ 5 $ 342 Non-redeemable preferred stock 74 11 3 82 Total $ 409 $ 23 $ 8 $ 424 |
Cost and fair value of investments in equity securities classified as available for sale [Table Text Block] | Fair (at December 31, 2017, in millions) Cost Gross Gains Gross Losses Value Public common stock $ 332 $ 8 $ 1 $ 339 Non-redeemable preferred stock 108 12 6 114 Total $ 440 $ 20 $ 7 $ 453 |
Unrealized investment losses [Table Text Block] | The following tables summarize, for all investments in an unrealized loss position at June 30, 2018 and December 31, 2017 , the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of notes to the consolidated financial statements in the Company’s 2017 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of notes to the consolidated financial statements in the Company’s 2017 Annual Report in determining whether such investments are other-than-temporarily impaired. Less than 12 months 12 months or longer Total (at June 30, 2018, in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,410 $ 20 $ 458 $ 3 $ 1,868 $ 23 Obligations of states, municipalities and political subdivisions 6,321 101 2,856 136 9,177 237 Debt securities issued by foreign governments 206 2 241 6 447 8 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,557 41 256 8 1,813 49 All other corporate bonds 17,584 441 2,313 122 19,897 563 Total fixed maturities $ 27,078 $ 605 $ 6,124 $ 275 $ 33,202 $ 880 Less than 12 months 12 months or Total (at December 31, 2017, in millions) Fair Gross Fair Gross Fair Gross Unrealized Losses Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,150 $ 5 $ 470 $ 3 $ 1,620 $ 8 Obligations of states, municipalities and political subdivisions 505 2 2,959 47 3,464 49 Debt securities issued by foreign governments 394 6 111 4 505 10 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,021 7 250 4 1,271 11 All other corporate bonds 6,062 48 1,990 52 8,052 100 Total fixed maturities 9,132 68 5,780 110 14,912 178 Equity securities Public common stock 18 — 34 1 52 1 Non-redeemable preferred stock 3 — 56 6 59 6 Total equity securities 21 — 90 7 111 7 Total $ 9,153 $ 68 $ 5,870 $ 117 $ 15,023 $ 185 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities reported at fair value are measured on a recurring basis [Table Text Block] | The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis. An investment transferred between levels during a period is transferred at its fair value as of the beginning of that period. (at June 30, 2018, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,019 $ 2,019 $ — $ — Obligations of states, municipalities and political subdivisions 28,930 — 28,918 12 Debt securities issued by foreign governments 1,281 — 1,281 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,516 — 2,492 24 All other corporate bonds 27,700 — 27,535 165 Redeemable preferred stock 90 3 87 — Total fixed maturities 62,536 2,022 60,313 201 Equity securities Public common stock 342 342 — — Non-redeemable preferred stock 82 35 47 — Total equity securities 424 377 47 — Other investments 61 17 — 44 Total $ 63,021 $ 2,416 $ 60,360 $ 245 (at December 31, 2017, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,076 $ 2,076 $ — $ — Obligations of states, municipalities and political subdivisions 30,915 — 30,910 5 Debt securities issued by foreign governments 1,509 — 1,509 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 2,410 — 2,371 39 All other corporate bonds 25,689 11 25,518 160 Redeemable preferred stock 95 3 92 — Total fixed maturities 62,694 2,090 60,400 204 Equity securities Public common stock 339 339 — — Non-redeemable preferred stock 114 45 69 — Total equity securities 453 384 69 — Other investments 57 19 — 38 Total $ 63,204 $ 2,493 $ 60,469 $ 242 |
Carrying value and fair value of financial instruments disclosed, but not carried, at fair value and the level within the fair value hierarchy at which such financial instruments are categorized [Table Text Block] | The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized. (at June 30, 2018, in millions) Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 3,692 $ 3,692 $ 574 $ 3,083 $ 35 Financial liabilities: Debt $ 6,464 $ 7,130 $ — $ 7,130 $ — (at December 31, 2017, in millions) Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 4,895 $ 4,895 $ 1,238 $ 3,622 $ 35 Financial liabilities: Debt $ 6,471 $ 7,702 $ — $ 7,702 $ — Commercial paper $ 100 $ 100 $ — $ 100 $ — |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by segment [Table Text Block] | The following table presents the carrying amount of the Company’s goodwill by segment. Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates. (in millions) June 30, December 31, Business Insurance $ 2,573 $ 2,585 Bond & Specialty Insurance 550 550 Personal Insurance 782 790 Other 26 26 Total $ 3,931 $ 3,951 |
Other intangible assets subject to amortization [Table Text Block] | The following tables present a summary of the Company’s other intangible assets by major asset class. (at June 30, 2018, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 100 $ 7 $ 93 Contract-based (1) 208 171 37 Total subject to amortization 308 178 130 Not subject to amortization 226 — 226 Total $ 534 $ 178 $ 356 (at December 31, 2017, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 77 $ 4 $ 73 Contract-based (1) 209 167 42 Total subject to amortization 286 171 115 Not subject to amortization 227 — 227 Total $ 513 $ 171 $ 342 _________________________________________________________ (1) Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. |
Other intangible assets not subject to amortization [Table Text Block] | The following tables present a summary of the Company’s other intangible assets by major asset class. (at June 30, 2018, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 100 $ 7 $ 93 Contract-based (1) 208 171 37 Total subject to amortization 308 178 130 Not subject to amortization 226 — 226 Total $ 534 $ 178 $ 356 (at December 31, 2017, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 77 $ 4 $ 73 Contract-based (1) 209 167 42 Total subject to amortization 286 171 115 Not subject to amortization 227 — 227 Total $ 513 $ 171 $ 342 _________________________________________________________ (1) Contract-based intangible assets subject to amortization are comprised of fair value adjustments on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangible assets. Fair value adjustments recorded in connection with insurance acquisitions were based on management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables. The method used calculated a risk adjustment to a risk-free discounted reserve that would, if reserves ran off as expected, produce results that yielded the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the amounts measured in accordance with the acquirer’s accounting policies for insurance contracts have been reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. |
Insurance Claim Reserves (Table
Insurance Claim Reserves (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Claims and claim adjustment expense reserves [Table Text Block] | Claims and claim adjustment expense reserves were as follows: (in millions) June 30, December 31, Property-casualty $ 49,945 $ 49,633 Accident and health 16 17 Total $ 49,961 $ 49,650 |
Reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses [Table Text Block] | The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses for the six months ended June 30, 2018 and 2017 : (for the six months ended June 30, in millions) 2018 2017 Claims and claim adjustment expense reserves at beginning of year $ 49,633 $ 47,929 Less reinsurance recoverables on unpaid losses 8,123 7,981 Net reserves at beginning of year 41,510 39,948 Estimated claims and claim adjustment expenses for claims arising in the current year 9,084 8,493 Estimated decrease in claims and claim adjustment expenses for claims arising in prior years (268 ) (214 ) Total increases 8,816 8,279 Claims and claim adjustment expense payments for claims arising in: Current year 2,851 2,699 Prior years 5,454 4,966 Total payments 8,305 7,665 Unrealized foreign exchange (gain) loss (102 ) 117 Net reserves at end of period 41,919 40,679 Plus reinsurance recoverables on unpaid losses 8,026 7,877 Claims and claim adjustment expense reserves at end of period $ 49,945 $ 48,556 |
Other Comprehensive Income an29
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure | |
Changes in accumulated other comprehensive income (loss) (AOCI) [Table Text Block] | The following table presents the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the six months ended June 30, 2018 . Changes in Net Unrealized Gains (Losses) on Investment Securities (in millions) Having No Credit Losses Recognized in the Consolidated Statement of Income Having Credit Losses Recognized in the Consolidated Statement of Income Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity Net Unrealized Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2017 $ 747 $ 207 $ (686 ) $ (611 ) $ (343 ) Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018 (34 ) — — — (34 ) Income tax benefit (12 ) — — — (12 ) Net of income taxes (22 ) — — — (22 ) Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018 145 7 (141 ) (35 ) (24 ) Total effect of adoption of new guidance at January 1, 2018, net of tax 123 7 (141 ) (35 ) (46 ) Other comprehensive income (loss) (OCI) before reclassifications, net of tax (1,176 ) (11 ) — (137 ) (1,324 ) Amounts reclassified from AOCI, net of tax (9 ) — 34 — 25 Net OCI, current period (1,185 ) (11 ) 34 (137 ) (1,299 ) Balance, June 30, 2018 $ (315 ) $ 203 $ (793 ) $ (783 ) $ (1,688 ) |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) for each component [Table Text Block] | The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit). Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income $ (298 ) $ 327 $ (1,501 ) $ 471 Income tax expense (benefit) (63 ) 116 (316 ) 167 Net of taxes (235 ) 211 (1,185 ) 304 Having credit losses recognized in the consolidated statement of income (12 ) 2 (14 ) 2 Income tax expense (benefit) (2 ) 1 (3 ) 1 Net of taxes (10 ) 1 (11 ) 1 Net changes in benefit plan assets and obligations 21 17 43 34 Income tax expense 4 6 9 11 Net of taxes 17 11 34 23 Net changes in unrealized foreign currency translation (158 ) 48 (152 ) 89 Income tax expense (benefit) (20 ) — (15 ) 6 Net of taxes (138 ) 48 (137 ) 83 Total other comprehensive income (loss) (447 ) 394 (1,624 ) 596 Total income tax expense (benefit) (81 ) 123 (325 ) 185 Total other comprehensive income (loss), net of taxes $ (366 ) $ 271 $ (1,299 ) $ 411 |
Pre-tax and related income tax (expense) benefit components of the amounts reclassified from accumulated other comprehensive income to the consolidated statement of income [Table Text Block] | The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income. Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 Reclassification adjustments related to unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (12 ) $ (84 ) $ (12 ) $ (94 ) Income tax expense (2) (3 ) (30 ) (3 ) (33 ) Net of taxes (9 ) (54 ) (9 ) (61 ) Having credit losses recognized in the consolidated statement of income (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Reclassification adjustment related to benefit plan assets and obligations: Claims and claim adjustment expenses (3) 8 7 17 14 General and administrative expenses (3) 13 11 26 21 Total 21 18 43 35 Income tax benefit (2) 4 7 9 12 Net of taxes 17 11 34 23 Reclassification adjustment related to foreign currency translation (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Total reclassifications 9 (66 ) 31 (59 ) Total income tax (expense) benefit 1 (23 ) 6 (21 ) Total reclassifications, net of taxes $ 8 $ (43 ) $ 25 $ (38 ) _________________________________________________________ (1) (Increases) decreases net realized investment gains on the consolidated statement of income. (2) (Increases) decreases income tax expense on the consolidated statement of income. (3) Increases (decreases) expenses on the consolidated statement of income. |
Earnings per Share (Table)
Earnings per Share (Table) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings per share reconciliation [Table Text Block] | The following is a reconciliation of the net income and share data used in the basic and diluted earnings per share computations for the periods presented: Three Months Ended Six Months Ended (in millions, except per share amounts) 2018 2017 2018 2017 Basic and Diluted Net income, as reported $ 524 $ 595 $ 1,193 $ 1,212 Participating share-based awards — allocated income (4 ) (5 ) (9 ) (9 ) Net income available to common shareholders — basic and diluted $ 520 $ 590 $ 1,184 $ 1,203 Common Shares Basic Weighted average shares outstanding 268.7 277.5 269.8 278.6 Diluted Weighted average shares outstanding 268.7 277.5 269.8 278.6 Weighted average effects of dilutive securities — stock options and performance shares 2.4 2.5 2.7 2.6 Total 271.1 280.0 272.5 281.2 Net Income per Common Share Basic $ 1.93 $ 2.13 $ 4.39 $ 4.32 Diluted $ 1.92 $ 2.11 $ 4.35 $ 4.28 |
Share-Based Incentive Compens31
Share-Based Incentive Compensation (Table) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Information for fully vested stock option awards [Table Text Block] | The following information relates to fully vested stock option awards at June 30, 2018 : Stock Options Number Weighted Average Exercise Price Weighted Average Contractual Life Remaining Aggregate Intrinsic Value ($ in millions) Vested at end of period (1) 6,135,747 $ 98.60 6.0 years $ 158 Exercisable at end of period 3,850,199 $ 85.96 4.6 years $ 140 _________________________________________________________ (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. |
Pension Plans, Retirement Ben32
Pension Plans, Retirement Benefits and Savings Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Summary of the components of net periodic benefit cost for the Company's pension and postretirement benefit plans recognized in the consolidated statement of income [Table Text Block] | The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2018 2017 2018 2017 Net Periodic Benefit Cost: Service cost $ 33 $ 30 $ — $ — Non-service cost: Interest cost on benefit obligation 32 30 2 1 Expected return on plan assets (66 ) (60 ) — — Amortization of unrecognized: Prior service benefit (1 ) — (1 ) (1 ) Net actuarial loss 23 19 — — Total non-service cost (benefit) (12 ) (11 ) 1 — Net periodic benefit cost $ 21 $ 19 $ 1 $ — The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the six months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2018 2017 2018 2017 Net Periodic Benefit Cost: Service cost $ 66 $ 60 $ — $ — Non-service cost: Interest cost on benefit obligation 63 61 4 3 Expected return on plan assets (132 ) (120 ) — — Amortization of unrecognized: Prior service benefit (1 ) — (2 ) (2 ) Net actuarial loss 46 37 — — Total non-service cost (benefit) (24 ) (22 ) 2 1 Net periodic benefit cost $ 42 $ 38 $ 2 $ 1 |
Consolidated statement of income line items impacted by service costs and non-service benefit costs [Table Text Block] | The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the three months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2018 2017 2018 2017 Service Cost: Claims and claim adjustment expenses $ 14 $ 12 $ — $ — General and administrative expenses 19 18 — — Total service cost 33 30 — — Non-Service Cost: Claims and claim adjustment expenses (5 ) (5 ) 1 — General and administrative expenses (7 ) (6 ) — — Total non-service cost (benefit) (12 ) (11 ) 1 — Net periodic benefit cost $ 21 $ 19 $ 1 $ — The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the six months ended June 30, 2018 and 2017 . Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2018 2017 2018 2017 Service Cost: Claims and claim adjustment expenses $ 27 $ 24 $ — $ — General and administrative expenses 39 36 — — Total service cost 66 60 — — Non-Service Cost: Claims and claim adjustment expenses (10 ) (9 ) 1 — General and administrative expenses (14 ) (13 ) 1 1 Total non-service cost (benefit) (24 ) (22 ) 2 1 Net periodic benefit cost $ 42 $ 38 $ 2 $ 1 |
Consolidating Financial State33
Consolidating Financial Statements (Unaudited) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 4,577 $ 2,118 $ — $ — $ 6,695 Net investment income 412 175 8 — 595 Fee income 112 — — — 112 Net realized investment gains (1) 18 16 2 — 36 Other revenues 13 27 — (1 ) 39 Total revenues 5,132 2,336 10 (1 ) 7,477 Claims and expenses Claims and claim adjustment expenses 3,064 1,498 — — 4,562 Amortization of deferred acquisition costs 727 354 — — 1,081 General and administrative expenses 766 343 5 (1 ) 1,113 Interest expense 13 — 77 — 90 Total claims and expenses 4,570 2,195 82 (1 ) 6,846 Income (loss) before income taxes 562 141 (72 ) — 631 Income tax expense (benefit) 104 21 (18 ) — 107 Net income of subsidiaries — — 578 (578 ) — Net income $ 458 $ 120 $ 524 $ (578 ) $ 524 ____________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the three months ended June 30, 2018 , and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (loss) (OCI) were as follows: (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Total OTTI losses $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in net realized investment gains $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 4,345 $ 2,006 $ — $ — $ 6,351 Net investment income 401 191 6 — 598 Fee income 116 — — — 116 Net realized investment gains (losses) (1) (4 ) 25 59 — 80 Other revenues 30 12 — (3 ) 39 Total revenues 4,888 2,234 65 (3 ) 7,184 Claims and expenses Claims and claim adjustment expenses 2,851 1,374 — — 4,225 Amortization of deferred acquisition costs 693 339 — — 1,032 General and administrative expenses 737 305 6 (3 ) 1,045 Interest expense 12 — 80 — 92 Total claims and expenses 4,293 2,018 86 (3 ) 6,394 Income (loss) before income taxes 595 216 (21 ) — 790 Income tax expense (benefit) 157 54 (16 ) — 195 Net income of subsidiaries — — 600 (600 ) — Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 _________________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the three months ended June 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 gains recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 9,045 $ 4,187 $ — $ — $ 13,232 Net investment income 824 360 14 — 1,198 Fee income 215 — — — 215 Net realized investment gains (1) 20 4 1 — 25 Other revenues 40 55 — (2 ) 93 Total revenues 10,144 4,606 15 (2 ) 14,763 Claims and expenses Claims and claim adjustment expenses 5,974 2,884 — — 8,858 Amortization of deferred acquisition costs 1,432 710 — — 2,142 General and administrative expenses 1,495 671 11 (2 ) 2,175 Interest expense 24 — 155 — 179 Total claims and expenses 8,925 4,265 166 (2 ) 13,354 Income (loss) before income taxes 1,219 341 (151 ) — 1,409 Income tax expense (benefit) 210 53 (47 ) — 216 Net income of subsidiaries — — 1,297 (1,297 ) — Net income $ 1,009 $ 288 $ 1,193 $ (1,297 ) $ 1,193 _________________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the six months ended June 30, 2018 , and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (loss) (OCI) were as follows: (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Total OTTI losses $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in net realized investment gains $ (1 ) $ — $ — $ — $ (1 ) OTTI losses recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Revenues Premiums $ 8,573 $ 3,961 $ — $ — $ 12,534 Net investment income 813 385 10 — 1,208 Fee income 229 — — — 229 Net realized investment gains (losses) (1) (8 ) 34 59 — 85 Other revenues 54 21 — (5 ) 70 Total revenues 9,661 4,401 69 (5 ) 14,126 Claims and expenses Claims and claim adjustment expenses 5,603 2,716 — — 8,319 Amortization of deferred acquisition costs 1,361 674 — — 2,035 General and administrative expenses 1,440 597 9 (5 ) 2,041 Interest expense 24 — 157 — 181 Total claims and expenses 8,428 3,987 166 (5 ) 12,576 Income (loss) before income taxes 1,233 414 (97 ) — 1,550 Income tax expense (benefit) 287 108 (57 ) — 338 Net income of subsidiaries — — 1,252 (1,252 ) — Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 _________________________________________________________ (1) Total other-than-temporary impairments (OTTI) for the six months ended June 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 ) $ (4 ) $ — $ — $ (6 ) OTTI losses recognized in net realized investment gains (losses) $ (3 ) $ (4 ) $ — $ — $ (7 ) OTTI gains recognized in OCI $ 1 $ — $ — $ — $ 1 |
Consolidating Statement of Comprehensive Income (Loss) (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) For the three months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 458 $ 120 $ 524 $ (578 ) $ 524 Other comprehensive income (loss): Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (209 ) (89 ) — — (298 ) Having credit losses recognized in the consolidated statement of income (10 ) (2 ) — — (12 ) Net changes in benefit plan assets and obligations — — 21 — 21 Net changes in unrealized foreign currency translation (77 ) (81 ) — — (158 ) Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries (296 ) (172 ) 21 — (447 ) Income tax benefit (58 ) (21 ) (2 ) — (81 ) Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries (238 ) (151 ) 23 — (366 ) Other comprehensive loss of subsidiaries — — (389 ) 389 — Other comprehensive loss (238 ) (151 ) (366 ) 389 (366 ) Comprehensive income (loss) $ 220 $ (31 ) $ 158 $ (189 ) $ 158 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the three months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 296 85 (54 ) — 327 Having credit losses recognized in the consolidated statement of income 1 1 — — 2 Net changes in benefit plan assets and obligations — (1 ) 18 — 17 Net changes in unrealized foreign currency translation 14 34 — — 48 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 311 119 (36 ) — 394 Income tax expense (benefit) 102 33 (12 ) — 123 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 209 86 (24 ) — 271 Other comprehensive income of subsidiaries — — 295 (295 ) — Other comprehensive income 209 86 271 (295 ) 271 Comprehensive income $ 647 $ 248 $ 866 $ (895 ) $ 866 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) For the six months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 1,009 $ 288 $ 1,193 $ (1,297 ) $ 1,193 Other comprehensive income (loss): Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income (1,047 ) (453 ) (1 ) — (1,501 ) Having credit losses recognized in the consolidated statement of income (11 ) (3 ) — — (14 ) Net changes in benefit plan assets and obligations — — 43 — 43 Net changes in unrealized foreign currency translation (102 ) (50 ) — — (152 ) Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries (1,160 ) (506 ) 42 — (1,624 ) Income tax expense (benefit) (233 ) (98 ) 6 — (325 ) Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries (927 ) (408 ) 36 — (1,299 ) Other comprehensive loss of subsidiaries — — (1,335 ) 1,335 — Other comprehensive loss (927 ) (408 ) (1,299 ) 1,335 (1,299 ) Comprehensive income (loss) $ 82 $ (120 ) $ (106 ) $ 38 $ (106 ) CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 389 129 (47 ) — 471 Having credit losses recognized in the consolidated statement of income 2 — — — 2 Net changes in benefit plan assets and obligations — (1 ) 35 — 34 Net changes in unrealized foreign currency translation 39 50 — — 89 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 430 178 (12 ) — 596 Income tax expense (benefit) 139 49 (3 ) — 185 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 291 129 (9 ) — 411 Other comprehensive income of subsidiaries — — 420 (420 ) — Other comprehensive income 291 129 411 (420 ) 411 Comprehensive income $ 1,237 $ 435 $ 1,623 $ (1,672 ) $ 1,623 |
Consolidating Balance Sheet (Unaudited) [Table Text Block] | CONSOLIDATING BALANCE SHEET (Unaudited) At June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $62,674) $ 43,192 $ 19,260 $ 84 $ — $ 62,536 Equity securities, at fair value (cost $409) 131 110 183 — 424 Real estate investments 54 900 — — 954 Short-term securities 1,765 530 1,397 — 3,692 Other investments 2,730 824 1 — 3,555 Total investments 47,872 21,624 1,665 — 71,161 Cash 231 184 — — 415 Investment income accrued 424 182 4 — 610 Premiums receivable 5,251 2,535 — — 7,786 Reinsurance recoverables 5,797 2,461 — — 8,258 Ceded unearned premiums 610 88 — — 698 Deferred acquisition costs 1,955 206 — — 2,161 Deferred taxes 180 295 (12 ) — 463 Contractholder receivables 3,909 921 — — 4,830 Goodwill 2,584 1,356 — (9 ) 3,931 Other intangible assets 225 131 — — 356 Investment in subsidiaries — — 26,630 (26,630 ) — Other assets 2,077 166 632 (21 ) 2,854 Total assets $ 71,115 $ 30,149 $ 28,919 $ (26,660 ) $ 103,523 Liabilities Claims and claim adjustment expense reserves $ 33,579 $ 16,382 $ — $ — $ 49,961 Unearned premium reserves 9,542 4,213 — — 13,755 Contractholder payables 3,909 921 — — 4,830 Payables for reinsurance premiums 230 166 — — 396 Debt 693 21 5,771 (21 ) 6,464 Other liabilities 4,188 778 528 — 5,494 Total liabilities 52,141 22,481 6,299 (21 ) 80,900 Shareholders’ equity Common stock (1,750.0 shares authorized; 267.8 shares issued and 267.7 shares outstanding) — 390 23,040 (390 ) 23,040 Additional paid-in capital 11,634 6,972 — (18,606 ) — Retained earnings 7,869 685 34,293 (8,551 ) 34,296 Accumulated other comprehensive loss (529 ) (379 ) (1,688 ) 908 (1,688 ) Treasury stock, at cost (506.4 shares) — — (33,025 ) — (33,025 ) Total shareholders’ equity 18,974 7,668 22,620 (26,639 ) 22,623 Total liabilities and shareholders’ equity $ 71,115 $ 30,149 $ 28,919 $ (26,660 ) $ 103,523 CONSOLIDATING BALANCE SHEET (Unaudited) At December 31, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $61,316) $ 43,240 $ 19,372 $ 82 $ — $ 62,694 Equity securities, available for sale, at fair value (cost $440) 161 111 181 — 453 Real estate investments 54 878 — — 932 Short-term securities 2,751 914 1,230 — 4,895 Other investments 2,673 854 1 — 3,528 Total investments 48,879 22,129 1,494 — 72,502 Cash 157 187 — — 344 Investment income accrued 418 183 5 — 606 Premiums receivable 4,852 2,292 — — 7,144 Reinsurance recoverables 5,842 2,467 — — 8,309 Ceded unearned premiums 493 58 — — 551 Deferred acquisition costs 1,835 190 — — 2,025 Deferred taxes (89 ) 173 (14 ) — 70 Contractholder receivables 3,854 921 — — 4,775 Goodwill 2,592 1,368 — (9 ) 3,951 Other intangible assets 202 140 — — 342 Investment in subsidiaries — — 27,946 (27,946 ) — Other assets 2,181 (3 ) 700 (14 ) 2,864 Total assets $ 71,216 $ 30,105 $ 30,131 $ (27,969 ) $ 103,483 Liabilities Claims and claim adjustment expense reserves $ 33,386 $ 16,264 $ — $ — $ 49,650 Unearned premium reserves 8,957 3,958 — — 12,915 Contractholder payables 3,854 921 — — 4,775 Payables for reinsurance premiums 165 109 — — 274 Debt 693 14 5,878 (14 ) 6,571 Other liabilities 4,161 882 524 — 5,567 Total liabilities 51,216 22,148 6,402 (14 ) 79,752 Shareholders’ equity Common stock (1,750.0 shares authorized; 271.5 shares issued and 271.4 shares outstanding) — 390 22,886 (390 ) 22,886 Additional paid-in capital 11,634 6,972 — (18,606 ) — Retained earnings 8,036 594 33,460 (8,628 ) 33,462 Accumulated other comprehensive income (loss) 330 1 (343 ) (331 ) (343 ) Treasury stock, at cost (500.9 shares) — — (32,274 ) — (32,274 ) Total shareholders’ equity 20,000 7,957 23,729 (27,955 ) 23,731 Total liabilities and shareholders’ equity $ 71,216 $ 30,105 $ 30,131 $ (27,969 ) $ 103,483 |
Consolidating Statement of Cash Flows (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2018 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Cash flows from operating activities Net income $ 1,009 $ 288 $ 1,193 $ (1,297 ) $ 1,193 Net adjustments to reconcile net income to net cash provided by operating activities 323 11 146 25 505 Net cash provided by operating activities 1,332 299 1,339 (1,272 ) 1,698 Cash flows from investing activities Proceeds from maturities of fixed maturities 2,730 914 13 — 3,657 Proceeds from sales of investments: Fixed maturities 1,847 759 1 — 2,607 Equity securities 33 59 — — 92 Real estate investments — — — — — Other investments 133 56 — — 189 Purchases of investments: Fixed maturities (5,762 ) (2,173 ) (17 ) — (7,952 ) Equity securities (2 ) (56 ) (2 ) — (60 ) Real estate investments — (44 ) — — (44 ) Other investments (232 ) (43 ) — — (275 ) Net sales (purchases) of short-term securities 986 383 (167 ) — 1,202 Securities transactions in course of settlement 268 12 (1 ) — 279 Other (148 ) (4 ) — — (152 ) Net cash used in investing activities (147 ) (137 ) (173 ) — (457 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (700 ) — (700 ) Treasury stock acquired — net employee share-based compensation — — (51 ) — (51 ) Dividends paid to shareholders — — (404 ) — (404 ) Payment of debt — — (600 ) — (600 ) Issuance of debt — 7 491 (7 ) 491 Issuance of common stock — employee share options — — 98 — 98 Dividends paid to parent company (1,109 ) (170 ) — 1,279 — Net cash used in financing activities (1,109 ) (163 ) (1,166 ) 1,272 (1,166 ) Effect of exchange rate changes on cash (2 ) (2 ) — — (4 ) Net increase (decrease) in cash 74 (3 ) — — 71 Cash at beginning of year 157 187 — — 344 Cash at end of period $ 231 $ 184 $ — $ — $ 415 Supplemental disclosure of cash flow information Income taxes paid (received) $ 193 $ 171 $ (126 ) $ — $ 238 Interest paid $ 24 $ — $ 151 $ — $ 175 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other Subsidiaries TRV Eliminations Consolidated Cash flows from operating activities Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Net adjustments to reconcile net income to net cash provided by operating activities 341 83 223 (105 ) 542 Net cash provided by operating activities 1,287 389 1,435 (1,357 ) 1,754 Cash flows from investing activities Proceeds from maturities of fixed maturities 3,211 1,087 2 — 4,300 Proceeds from sales of investments: Fixed maturities 285 278 — — 563 Equity securities 4 75 121 — 200 Real estate investments — 20 — — 20 Other investments 176 57 — — 233 Purchases of investments: Fixed maturities (4,160 ) (1,511 ) (2 ) — (5,673 ) Equity securities (3 ) (41 ) (122 ) — (166 ) Real estate investments — (26 ) — — (26 ) Other investments (202 ) (57 ) — — (259 ) Net sales (purchases) of short-term securities 383 78 (885 ) — (424 ) Securities transactions in course of settlement 105 64 1 — 170 Other (134 ) 6 — — (128 ) Net cash provided by (used in) investing activities (335 ) 30 (885 ) — (1,190 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (700 ) — (700 ) Treasury stock acquired — net employee share-based compensation — — (61 ) — (61 ) Dividends paid to shareholders — — (389 ) — (389 ) Payment of debt — — (207 ) — (207 ) Issuance of debt — — 689 — 689 Issuance of common stock — employee share options — — 118 — 118 Dividends paid to parent company (961 ) (396 ) — 1,357 — Net cash used in financing activities (961 ) (396 ) (550 ) 1,357 (550 ) Effect of exchange rate changes on cash 2 5 — — 7 Net increase (decrease) in cash (7 ) 28 — — 21 Cash at beginning of year 141 164 2 — 307 Cash at end of period $ 134 $ 192 $ 2 $ — $ 328 Supplemental disclosure of cash flow information Income taxes paid (received) $ 336 $ 119 $ (132 ) $ — $ 323 Interest paid $ 24 $ — $ 154 $ — $ 178 |
Basis of Presentation and Acc34
Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
New Accounting Pronouncements | |||
Cumulative effect adjustment increasing (decreasing) equity | $ (22) | $ (22) | |
Reclassification of certain tax effects from adoption of updated accounting guidance | (24) | $ (24) | |
Retained earnings [Member] | |||
New Accounting Pronouncements | |||
Cumulative effect adjustment increasing (decreasing) equity | $ 22 | ||
Reclassification of certain tax effects from adoption of updated accounting guidance | $ 24 | ||
Accounting Standards Update 2016-01 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||
New Accounting Pronouncements | |||
Cumulative effect adjustment increasing (decreasing) equity | (22) | ||
Accounting Standards Update 2016-01 [Member] | Retained earnings [Member] | |||
New Accounting Pronouncements | |||
Cumulative effect adjustment increasing (decreasing) equity | 22 | ||
Accounting Standards Update 2018-02 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||
New Accounting Pronouncements | |||
Reclassification of certain tax effects from adoption of updated accounting guidance | (24) | ||
Accounting Standards Update 2018-02 [Member] | Retained earnings [Member] | |||
New Accounting Pronouncements | |||
Reclassification of certain tax effects from adoption of updated accounting guidance | $ 24 |
Basis of Presentation and Acc35
Basis of Presentation and Accounting Policies (Details) - Revenue Recognition - Accounting Standards Update 2014-09 [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenues within scope of updated accounting guidance | |
Revenues within scope of updated accounting guidance | $ 83 |
Revenues within scope of updated accounting guidance, as a percentage of total revenues (less than) | 1.00% |
Basis of Presentation and Acc36
Basis of Presentation and Accounting Policies (Details) - Reportable Segments | 6 Months Ended |
Jun. 30, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable business segments | 3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment reporting information | |||||
Premiums | $ 6,695 | $ 6,351 | $ 13,232 | $ 12,534 | |
Net investment income | 595 | 598 | 1,198 | 1,208 | |
Fee income | 112 | 116 | 215 | 229 | |
Other revenues | 39 | 39 | 93 | 70 | |
Net realized investment gains | [1] | 36 | 80 | 25 | 85 |
Total revenues | 7,477 | 7,184 | 14,763 | 14,126 | |
Core income (loss) | 494 | 543 | 1,172 | 1,157 | |
Net realized investment gains, net of tax | 30 | 52 | 21 | 55 | |
Net income | 524 | 595 | 1,193 | 1,212 | |
Reportable Segments [Member] | |||||
Segment reporting information | |||||
Premiums | 6,695 | 6,351 | 13,232 | 12,534 | |
Net investment income | 595 | 598 | 1,198 | 1,208 | |
Fee income | 112 | 116 | 215 | 229 | |
Other revenues | 39 | 36 | 93 | 66 | |
Total segment revenues | 7,441 | 7,101 | 14,738 | 14,037 | |
Core income (loss) | 572 | 604 | 1,326 | 1,280 | |
Reportable Segments [Member] | Business Insurance [Member] | |||||
Segment reporting information | |||||
Premiums | 3,641 | 3,504 | 7,209 | 6,933 | |
Net investment income | 440 | 447 | 886 | 900 | |
Fee income | 107 | 112 | 206 | 221 | |
Other revenues | 20 | 15 | 51 | 24 | |
Total segment revenues | 4,208 | 4,078 | 8,352 | 8,078 | |
Core income (loss) | 385 | 429 | 837 | 871 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | |||||
Segment reporting information | |||||
Premiums | 3,376 | 3,265 | 6,680 | 6,454 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Workers' compensation [Member] | |||||
Segment reporting information | |||||
Premiums | 973 | 999 | 1,944 | 1,975 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Automobile [Member] | |||||
Segment reporting information | |||||
Premiums | 587 | 521 | 1,149 | 1,027 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial property [Member] | |||||
Segment reporting information | |||||
Premiums | 453 | 443 | 891 | 878 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | General liability [Member] | |||||
Segment reporting information | |||||
Premiums | 535 | 498 | 1,056 | 989 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial multi-peril [Member] | |||||
Segment reporting information | |||||
Premiums | 822 | 797 | 1,627 | 1,571 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Other [Member] | |||||
Segment reporting information | |||||
Premiums | 6 | 7 | 13 | 14 | |
Reportable Segments [Member] | Business Insurance [Member] | International [Member] | |||||
Segment reporting information | |||||
Premiums | 265 | 239 | 529 | 479 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | |||||
Segment reporting information | |||||
Premiums | 601 | 575 | 1,183 | 1,130 | |
Net investment income | 57 | 56 | 115 | 117 | |
Other revenues | 5 | 6 | 11 | 11 | |
Total segment revenues | 663 | 637 | 1,309 | 1,258 | |
Core income (loss) | 204 | 163 | 377 | 308 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | |||||
Segment reporting information | |||||
Premiums | 550 | 530 | 1,085 | 1,044 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | General liability [Member] | |||||
Segment reporting information | |||||
Premiums | 248 | 239 | 490 | 474 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Fidelity and surety [Member] | |||||
Segment reporting information | |||||
Premiums | 253 | 245 | 499 | 479 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Other [Member] | |||||
Segment reporting information | |||||
Premiums | 49 | 46 | 96 | 91 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | International [Member] | |||||
Segment reporting information | |||||
Premiums | 51 | 45 | 98 | 86 | |
Reportable Segments [Member] | Personal Insurance [Member] | |||||
Segment reporting information | |||||
Premiums | 2,453 | 2,272 | 4,840 | 4,471 | |
Net investment income | 98 | 95 | 197 | 191 | |
Fee income | 5 | 4 | 9 | 8 | |
Other revenues | 14 | 15 | 31 | 31 | |
Total segment revenues | 2,570 | 2,386 | 5,077 | 4,701 | |
Core income (loss) | (17) | 12 | 112 | 101 | |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | |||||
Segment reporting information | |||||
Premiums | 2,283 | 2,122 | 4,503 | 4,171 | |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Automobile [Member] | |||||
Segment reporting information | |||||
Premiums | 1,261 | 1,145 | 2,486 | 2,239 | |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Homeowners and Other [Member] | |||||
Segment reporting information | |||||
Premiums | 1,022 | 977 | 2,017 | 1,932 | |
Reportable Segments [Member] | Personal Insurance [Member] | International [Member] | |||||
Segment reporting information | |||||
Premiums | 170 | 150 | 337 | 300 | |
Other [Member] | |||||
Segment reporting information | |||||
Other revenues | 3 | 4 | |||
Core income (loss) | (78) | (61) | (154) | (123) | |
After-tax interest expense | $ 71 | $ 60 | $ 141 | $ 118 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(6) million for the six months ended June 30, 2018 and 2017, respectively. Of total OTTI, credit losses of $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(7) million for the six months ended June 30, 2018 and 2017, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2018 and 2017, respectively, and $0 million and $1 million for the six months ended June 30, 2018 and 2017, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income. |
Segment Information (Details) -
Segment Information (Details) - Assets by Segment - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets by segment | ||
Total assets | $ 103,523 | $ 103,483 |
Reportable Segments [Member] | ||
Assets by segment | ||
Total assets | 102,954 | 102,807 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Assets by segment | ||
Total assets | 78,500 | 78,082 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Assets by segment | ||
Total assets | 8,757 | 8,776 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Assets by segment | ||
Total assets | 15,697 | 15,949 |
Other assets [Member] | ||
Assets by segment | ||
Total assets | $ 569 | $ 676 |
Investments (Details) - Investm
Investments (Details) - Investment Information, Debt Securities - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investment disclosure details | |||
Fixed maturities, amortized cost | $ 62,674 | $ 61,316 | |
Gross unrealized gains | 742 | 1,556 | |
Gross unrealized losses | 880 | 178 | |
Fixed maturities, at fair value | 62,536 | 62,694 | |
Proceeds from sales of fixed maturities classified as available for sale | 2,607 | $ 563 | |
Gross realized gains | 24 | 17 | |
Gross realized losses | 11 | $ 4 | |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 2,041 | 2,080 | |
Gross unrealized gains | 1 | 4 | |
Gross unrealized losses | 23 | 8 | |
Fixed maturities, at fair value | 2,019 | 2,076 | |
Obligations of states, municipalities and political subdivisions [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 28,665 | 29,996 | |
Gross unrealized gains | 502 | 968 | |
Gross unrealized losses | 237 | 49 | |
Fixed maturities, at fair value | 28,930 | 30,915 | |
Obligations of states, municipalities and political subdivisions, local general obligation [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 13,992 | 13,488 | |
Gross unrealized gains | 201 | 444 | |
Gross unrealized losses | 136 | 26 | |
Fixed maturities, at fair value | 14,057 | 13,906 | |
Obligations of states, municipalities and political subdivisions, revenue [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 9,857 | 11,307 | |
Gross unrealized gains | 171 | 338 | |
Gross unrealized losses | 88 | 19 | |
Fixed maturities, at fair value | 9,940 | 11,626 | |
Obligations of states, municipalities and political subdivisions, state general obligation [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,384 | 1,443 | |
Gross unrealized gains | 19 | 44 | |
Gross unrealized losses | 12 | 3 | |
Fixed maturities, at fair value | 1,391 | 1,484 | |
Obligations of states, municipalities and political subdivisions, pre-refunded [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 3,432 | 3,758 | |
Gross unrealized gains | 111 | 142 | |
Gross unrealized losses | 1 | 1 | |
Fixed maturities, at fair value | 3,542 | 3,899 | |
Debt securities issued by foreign governments [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,281 | 1,505 | |
Gross unrealized gains | 8 | 14 | |
Gross unrealized losses | 8 | 10 | |
Fixed maturities, at fair value | 1,281 | 1,509 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 2,499 | 2,334 | |
Gross unrealized gains | 66 | 87 | |
Gross unrealized losses | 49 | 11 | |
Fixed maturities, at fair value | 2,516 | 2,410 | |
All other corporate bonds [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 28,102 | 25,311 | |
Gross unrealized gains | 161 | 478 | |
Gross unrealized losses | 563 | 100 | |
Fixed maturities, at fair value | 27,700 | 25,689 | |
Redeemable preferred stock [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 86 | 90 | |
Gross unrealized gains | 4 | 5 | |
Fixed maturities, at fair value | $ 90 | $ 95 |
Investments (Details) - Inves40
Investments (Details) - Investment Information, Equity Securities $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Investment disclosure details | |
Equity securities, cost | $ 409 |
Gross gains | 23 |
Gross losses | 8 |
Equity securities, at fair value | 424 |
Net recognized gains on equity securities still held | 3 |
Public common stock [Member] | |
Investment disclosure details | |
Equity securities, cost | 335 |
Gross gains | 12 |
Gross losses | 5 |
Equity securities, at fair value | 342 |
Non-redeemable preferred stock [Member] | |
Investment disclosure details | |
Equity securities, cost | 74 |
Gross gains | 11 |
Gross losses | 3 |
Equity securities, at fair value | $ 82 |
Investments (Details) - Inves41
Investments (Details) - Investment Information, Available for Sale Equity Securities - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2017 | |
Investment disclosure details | ||
Equity securities, available for sale, cost | $ 440 | |
Gross gains | 20 | |
Gross losses | 7 | |
Equity securities, available for sale, at fair value | 453 | |
Proceeds from sales of equity securities classified as available for sale | $ 200 | |
Equity securities [Member] | ||
Investment disclosure details | ||
Gross realized gains | 88 | |
Gross realized losses | $ 1 | |
Public common stock [Member] | ||
Investment disclosure details | ||
Equity securities, available for sale, cost | 332 | |
Gross gains | 8 | |
Gross losses | 1 | |
Equity securities, available for sale, at fair value | 339 | |
Non-redeemable preferred stock [Member] | ||
Investment disclosure details | ||
Equity securities, available for sale, cost | 108 | |
Gross gains | 12 | |
Gross losses | 6 | |
Equity securities, available for sale, at fair value | $ 114 |
Investments Investments (Detail
Investments Investments (Details) - Investment Information, Losses - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | $ 27,078 | $ 27,078 | $ 9,132 | ||
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 605 | 605 | 68 | ||
Continuous unrealized loss position, 12 months or longer, fair value | 6,124 | 6,124 | 5,780 | ||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 275 | 275 | 110 | ||
Continuous unrealized loss position, total, fair value | 33,202 | 33,202 | 14,912 | ||
Continuous unrealized loss position, total, gross unrealized losses | 880 | 880 | 178 | ||
Impairment charges | 1 | 1 | |||
Cumulative OTTI credit losses recognized for securities held | $ 67 | $ 83 | $ 67 | $ 83 | |
Cumulative credit component of other-than-temporary impairments (OTTI) on fixed maturities recognized in the consolidated statement of income for which a portion of the OTTI was recognized in other comprehensive income (loss) for fixed maturities held, as a percentage of the fixed maturity portfolio on a pre-tax basis (less than) | 1.00% | 1.00% | 1.00% | 1.00% | |
Cumulative credit component of other-than-temporary impairments (OTTI) on fixed maturities recognized in the consolidated statement of income for which a portion of the OTTI was recognized in other comprehensive income (loss) for fixed maturities held, as a percentage of shareholders' equity on an after-tax basis (less than) | 1.00% | 1.00% | 1.00% | 1.00% | |
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 9,153 | ||||
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 68 | ||||
Continuous unrealized loss position, 12 months or longer, fair value | 5,870 | ||||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 117 | ||||
Continuous unrealized loss position, total, fair value | 15,023 | ||||
Continuous unrealized loss position, total, gross unrealized losses | 185 | ||||
Impairment charges | $ 5 | $ 7 | |||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | $ 1,410 | $ 1,410 | 1,150 | ||
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 20 | 20 | 5 | ||
Continuous unrealized loss position, 12 months or longer, fair value | 458 | 458 | 470 | ||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 3 | 3 | 3 | ||
Continuous unrealized loss position, total, fair value | 1,868 | 1,868 | 1,620 | ||
Continuous unrealized loss position, total, gross unrealized losses | 23 | 23 | 8 | ||
Obligations of states, municipalities and political subdivisions [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 6,321 | 6,321 | 505 | ||
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 101 | 101 | 2 | ||
Continuous unrealized loss position, 12 months or longer, fair value | 2,856 | 2,856 | 2,959 | ||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 136 | 136 | 47 | ||
Continuous unrealized loss position, total, fair value | 9,177 | 9,177 | 3,464 | ||
Continuous unrealized loss position, total, gross unrealized losses | 237 | 237 | 49 | ||
Debt securities issued by foreign governments [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 206 | 206 | 394 | ||
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 2 | 2 | 6 | ||
Continuous unrealized loss position, 12 months or longer, fair value | 241 | 241 | 111 | ||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 6 | 6 | 4 | ||
Continuous unrealized loss position, total, fair value | 447 | 447 | 505 | ||
Continuous unrealized loss position, total, gross unrealized losses | 8 | 8 | 10 | ||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 1,557 | 1,557 | 1,021 | ||
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 41 | 41 | 7 | ||
Continuous unrealized loss position, 12 months or longer, fair value | 256 | 256 | 250 | ||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 8 | 8 | 4 | ||
Continuous unrealized loss position, total, fair value | 1,813 | 1,813 | 1,271 | ||
Continuous unrealized loss position, total, gross unrealized losses | 49 | 49 | 11 | ||
All other corporate bonds [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 17,584 | 17,584 | 6,062 | ||
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 441 | 441 | 48 | ||
Continuous unrealized loss position, 12 months or longer, fair value | 2,313 | 2,313 | 1,990 | ||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 122 | 122 | 52 | ||
Continuous unrealized loss position, total, fair value | 19,897 | 19,897 | 8,052 | ||
Continuous unrealized loss position, total, gross unrealized losses | $ 563 | $ 563 | 100 | ||
Equity securities [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 21 | ||||
Continuous unrealized loss position, 12 months or longer, fair value | 90 | ||||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 7 | ||||
Continuous unrealized loss position, total, fair value | 111 | ||||
Continuous unrealized loss position, total, gross unrealized losses | 7 | ||||
Public common stock [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 18 | ||||
Continuous unrealized loss position, 12 months or longer, fair value | 34 | ||||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 1 | ||||
Continuous unrealized loss position, total, fair value | 52 | ||||
Continuous unrealized loss position, total, gross unrealized losses | 1 | ||||
Non-redeemable preferred stock [Member] | |||||
Investment disclosure details | |||||
Continuous unrealized loss position, less than 12 months, fair value | 3 | ||||
Continuous unrealized loss position, 12 months or longer, fair value | 56 | ||||
Continuous unrealized loss position, 12 months or longer, gross unrealized losses | 6 | ||||
Continuous unrealized loss position, total, fair value | 59 | ||||
Continuous unrealized loss position, total, gross unrealized losses | $ 6 |
Investments (Details) - Derivat
Investments (Details) - Derivatives - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Futures [Member] | U.S. Treasury notes contracts [Member] | ||
Derivatives | ||
Notional value of open contracts | $ 100 | $ 400 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Percent of fixed maturities for which a pricing service estimates fair value | 98.00% | 98.00% |
Fair value of the fixed maturities for which the Company used an internal pricing matrix | $ 62 | $ 127 |
Fair value of the fixed maturities for which the Company received a broker quote | $ 139 | $ 77 |
Fair Value Measurements (Deta45
Fair Value Measurements (Details) - Fair Value Hierarchy - Recurring basis [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | $ 63,021 | $ 63,204 |
Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 62,536 | 62,694 |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 2,019 | 2,076 |
Obligations of states, municipalities and political subdivisions [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 28,930 | 30,915 |
Debt securities issued by foreign governments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 1,281 | 1,509 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 2,516 | 2,410 |
All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 27,700 | 25,689 |
Redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 90 | 95 |
Equity securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 424 | 453 |
Public common stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 342 | 339 |
Non-redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 82 | 114 |
Other Investments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 61 | 57 |
Level 1 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 2,416 | 2,493 |
Level 1 [Member] | Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 2,022 | 2,090 |
Level 1 [Member] | U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 2,019 | 2,076 |
Level 1 [Member] | All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 11 | |
Level 1 [Member] | Redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 3 | 3 |
Level 1 [Member] | Equity securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 377 | 384 |
Level 1 [Member] | Public common stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 342 | 339 |
Level 1 [Member] | Non-redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 35 | 45 |
Level 1 [Member] | Other Investments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 17 | 19 |
Level 2 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 60,360 | 60,469 |
Level 2 [Member] | Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 60,313 | 60,400 |
Level 2 [Member] | Obligations of states, municipalities and political subdivisions [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 28,918 | 30,910 |
Level 2 [Member] | Debt securities issued by foreign governments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 1,281 | 1,509 |
Level 2 [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 2,492 | 2,371 |
Level 2 [Member] | All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 27,535 | 25,518 |
Level 2 [Member] | Redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 87 | 92 |
Level 2 [Member] | Equity securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 47 | 69 |
Level 2 [Member] | Non-redeemable preferred stock [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 47 | 69 |
Level 3 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 245 | 242 |
Level 3 [Member] | Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 201 | 204 |
Level 3 [Member] | Obligations of states, municipalities and political subdivisions [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 12 | 5 |
Level 3 [Member] | Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 24 | 39 |
Level 3 [Member] | All other corporate bonds [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 165 | 160 |
Level 3 [Member] | Other Investments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | $ 44 | $ 38 |
Fair Value Measurements (Deta46
Fair Value Measurements (Details) - Financial Instruments - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Instruments | ||
Short-term securities | $ 3,692 | $ 4,895 |
Commercial paper | 0 | 100 |
Carrying Value [Member] | ||
Financial Instruments | ||
Short-term securities | 3,692 | 4,895 |
Debt | 6,464 | 6,471 |
Commercial paper | 100 | |
Fair Value [Member] | ||
Financial Instruments | ||
Short-term securities | 3,692 | 4,895 |
Debt | 7,130 | 7,702 |
Commercial paper | 100 | |
Fair Value [Member] | Level 1 [Member] | ||
Financial Instruments | ||
Short-term securities | 574 | 1,238 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Instruments | ||
Short-term securities | 3,083 | 3,622 |
Debt | 7,130 | 7,702 |
Commercial paper | 100 | |
Fair Value [Member] | Level 3 [Member] | ||
Financial Instruments | ||
Short-term securities | $ 35 | $ 35 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill by segment | ||
Goodwill | $ 3,931 | $ 3,951 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 2,573 | 2,585 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 550 | 550 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 782 | 790 |
Other [Member] | ||
Goodwill by segment | ||
Goodwill | $ 26 | $ 26 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets (Details) - Other Intangible Assets - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Other intangible assets by major asset class | |||||
Intangible assets subject to amortization, gross carrying amount | $ 308 | $ 308 | $ 286 | ||
Intangible assets subject to amortization, accumulated amortization | 178 | 178 | 171 | ||
Intangible assets subject to amortization, net | 130 | 130 | 115 | ||
Intangible assets not subject to amortization | 226 | 226 | 227 | ||
Total other intangible assets, gross carrying amount | 534 | 534 | 513 | ||
Total other intangible assets, net | 356 | 356 | 342 | ||
Amortization expense of intangible assets | 4 | $ 2 | 8 | $ 5 | |
Estimated intangible asset amortization expense, remainder of 2018 | 8 | 8 | |||
Estimated intangible asset amortization expense, 2019 | 16 | 16 | |||
Estimated intangible asset amortization expense, 2020 | 15 | 15 | |||
Estimated intangible asset amortization expense, 2021 | 14 | 14 | |||
Estimated intangible asset amortization expense, 2022 | 13 | 13 | |||
Customer-related [Member] | |||||
Other intangible assets by major asset class | |||||
Intangible assets subject to amortization, gross carrying amount | 100 | 100 | 77 | ||
Intangible assets subject to amortization, accumulated amortization | 7 | 7 | 4 | ||
Intangible assets subject to amortization, net | 93 | 93 | 73 | ||
Contract-based [Member] | |||||
Other intangible assets by major asset class | |||||
Intangible assets subject to amortization, gross carrying amount | 208 | 208 | 209 | ||
Intangible assets subject to amortization, accumulated amortization | 171 | 171 | 167 | ||
Intangible assets subject to amortization, net | $ 37 | $ 37 | $ 42 |
Insurance Claim Reserves (Detai
Insurance Claim Reserves (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Insurance Loss Reserves [Abstract] | ||
Amount of increase in gross claims and claim adjustment expense reserves | $ 312 | |
Amount of decrease in reinsurance recoverables on unpaid losses | 97 | |
Accretion of discount | $ 25 | $ 25 |
Insurance Claim Reserves (Det50
Insurance Claim Reserves (Details) - Reserve Detail for Claims and Claim Adjustment Expenses - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||
Claims and claim adjustment expense reserves at beginning of year | $ 49,650 | |
Claims and claim adjustment expense reserves at end of period | 49,961 | |
Property-casualty [Member] | ||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||
Claims and claim adjustment expense reserves at beginning of year | 49,633 | $ 47,929 |
Reinsurance recoverables on unpaid losses | 8,123 | 7,981 |
Net reserves at beginning of year | 41,510 | 39,948 |
Estimated claims and claim adjustment expenses for claims arising in the current year | 9,084 | 8,493 |
Estimated decrease in claims and claim adjustment expenses for claims arising in prior years | (268) | (214) |
Total increases | 8,816 | 8,279 |
Claims and claim adjustment expense payments for claims arising in current year | 2,851 | 2,699 |
Claims and claim adjustment expense payments for claims arising in prior years | 5,454 | 4,966 |
Total payments | 8,305 | 7,665 |
Unrealized foreign exchange (gain) loss | (102) | 117 |
Net reserves at end of period | 41,919 | 40,679 |
Reinsurance recoverables on unpaid losses | 8,026 | 7,877 |
Claims and claim adjustment expense reserves at end of period | 49,945 | $ 48,556 |
Accident and health [Member] | ||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | ||
Claims and claim adjustment expense reserves at beginning of year | 17 | |
Claims and claim adjustment expense reserves at end of period | $ 16 |
Insurance Claim Reserves (Det51
Insurance Claim Reserves (Details) - Prior Year Reserve Development - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | $ 336 | $ 284 | ||
Business Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | $ 84 | $ 125 | 150 | 186 |
Bond & Specialty Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | 89 | 78 | 124 | 92 |
Personal Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | $ 13 | $ 0 | $ 62 | $ 6 |
Insurance Claim Reserves Insura
Insurance Claim Reserves Insurance Claim Reserves (Details) - Asbestos and Environmental - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Insurance [Member] | Environmental Issue [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Increase (decrease) to asbestos and environmental reserves | $ 55 | $ 65 | $ 55 | $ 65 |
Other Comprehensive Income an53
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Accumulated other comprehensive income [Roll Forward] | ||||||
Balance, beginning of year | $ 23,731 | $ 23,731 | ||||
Other comprehensive income (loss), net of taxes | $ (366) | $ 271 | (1,299) | $ 411 | ||
Balance, end of period | 22,623 | 23,858 | 22,623 | 23,858 | ||
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | ||||||
Other comprehensive income (loss) before income taxes | (447) | 394 | (1,624) | 596 | ||
Income tax expense (benefit) | (81) | 123 | (325) | 185 | ||
Other comprehensive income (loss), net of taxes | (366) | 271 | (1,299) | 411 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated other comprehensive income [Roll Forward] | ||||||
Balance, beginning of year | (343) | (343) | (755) | |||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments, pre-tax | (34) | |||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments, tax | (12) | |||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments, net of income taxes | (22) | $ (22) | ||||
Reclassification of certain tax effects from adoption of updated accounting guidance | (24) | (24) | ||||
Effect of adoption of updated accounting guidance, net of tax, total | (46) | |||||
Other comprehensive income (loss) before reclassifications | (1,324) | |||||
Amounts reclassified from accumulated other comprehensive income | 25 | |||||
Other comprehensive income (loss), net of taxes | (366) | 271 | (1,299) | 411 | ||
Balance, end of period | (1,688) | (344) | (1,688) | (344) | ||
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | ||||||
Other comprehensive income (loss) before income taxes | (447) | 394 | (1,624) | 596 | ||
Income tax expense (benefit) | (81) | 123 | (325) | 185 | ||
Other comprehensive income (loss), net of taxes | (366) | 271 | (1,299) | 411 | ||
Changes in Net Unrealized Gains (Losses) on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income [Member] | ||||||
Accumulated other comprehensive income [Roll Forward] | ||||||
Balance, beginning of year | 747 | 747 | ||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments, pre-tax | (34) | |||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments, tax | (12) | |||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments, net of income taxes | (22) | |||||
Reclassification of certain tax effects from adoption of updated accounting guidance | 145 | |||||
Effect of adoption of updated accounting guidance, net of tax, total | 123 | |||||
Other comprehensive income (loss) before reclassifications | (1,176) | |||||
Amounts reclassified from accumulated other comprehensive income | (9) | |||||
Other comprehensive income (loss), net of taxes | (235) | 211 | (1,185) | 304 | ||
Balance, end of period | (315) | (315) | ||||
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | ||||||
Other comprehensive income (loss) before income taxes | (298) | 327 | (1,501) | 471 | ||
Income tax expense (benefit) | (63) | 116 | (316) | 167 | ||
Other comprehensive income (loss), net of taxes | (235) | 211 | (1,185) | 304 | ||
Changes in Net Unrealized Gains (Losses) on Investment Securities Having Credit Losses Recognized in the Consolidated Statement of Income [Member] | ||||||
Accumulated other comprehensive income [Roll Forward] | ||||||
Balance, beginning of year | 207 | 207 | ||||
Reclassification of certain tax effects from adoption of updated accounting guidance | 7 | |||||
Effect of adoption of updated accounting guidance, net of tax, total | 7 | |||||
Other comprehensive income (loss) before reclassifications | (11) | |||||
Other comprehensive income (loss), net of taxes | (10) | 1 | (11) | 1 | ||
Balance, end of period | 203 | 203 | ||||
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | ||||||
Other comprehensive income (loss) before income taxes | (12) | 2 | (14) | 2 | ||
Income tax expense (benefit) | (2) | 1 | (3) | 1 | ||
Other comprehensive income (loss), net of taxes | (10) | 1 | (11) | 1 | ||
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | ||||||
Accumulated other comprehensive income [Roll Forward] | ||||||
Balance, beginning of year | (686) | (686) | ||||
Reclassification of certain tax effects from adoption of updated accounting guidance | (141) | |||||
Effect of adoption of updated accounting guidance, net of tax, total | (141) | |||||
Amounts reclassified from accumulated other comprehensive income | 34 | |||||
Other comprehensive income (loss), net of taxes | 17 | 11 | 34 | 23 | ||
Balance, end of period | (793) | (793) | ||||
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | ||||||
Other comprehensive income (loss) before income taxes | 21 | 17 | 43 | 34 | ||
Income tax expense (benefit) | 4 | 6 | 9 | 11 | ||
Other comprehensive income (loss), net of taxes | 17 | 11 | 34 | 23 | ||
Net Unrealized Foreign Currency Translation [Member] | ||||||
Accumulated other comprehensive income [Roll Forward] | ||||||
Balance, beginning of year | (611) | (611) | ||||
Reclassification of certain tax effects from adoption of updated accounting guidance | (35) | |||||
Effect of adoption of updated accounting guidance, net of tax, total | $ (35) | |||||
Other comprehensive income (loss) before reclassifications | (137) | |||||
Other comprehensive income (loss), net of taxes | (138) | 48 | (137) | 83 | ||
Balance, end of period | (783) | (783) | ||||
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | ||||||
Other comprehensive income (loss) before income taxes | (158) | 48 | (152) | 89 | ||
Income tax expense (benefit) | (20) | (15) | 6 | |||
Other comprehensive income (loss), net of taxes | $ (138) | $ 48 | $ (137) | $ 83 |
Other Comprehensive Income an54
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - Reclassifications - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment impacting net realized investment gains on the income statement | [1] | $ (36) | $ (80) | $ (25) | $ (85) |
Reclassification adjustment impacting claims and claim adjustment expenses on the income statement | 4,562 | 4,225 | 8,858 | 8,319 | |
Reclassification adjustment impacting general and administrative expense on the income statement | 1,113 | 1,045 | 2,175 | 2,041 | |
Total reclassifications | (631) | (790) | (1,409) | (1,550) | |
Income tax (expense) benefit | (107) | (195) | (216) | (338) | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (524) | (595) | (1,193) | (1,212) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Total reclassifications | 9 | (66) | 31 | (59) | |
Income tax (expense) benefit | 1 | (23) | 6 | (21) | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | 8 | (43) | 25 | (38) | |
Changes in Net Unrealized Gains (Losses) on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment impacting net realized investment gains on the income statement | (12) | (84) | (12) | (94) | |
Income tax (expense) benefit | (3) | (30) | (3) | (33) | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (9) | (54) | (9) | (61) | |
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment impacting claims and claim adjustment expenses on the income statement | 8 | 7 | 17 | 14 | |
Reclassification adjustment impacting general and administrative expense on the income statement | 13 | 11 | 26 | 21 | |
Total reclassifications | 21 | 18 | 43 | 35 | |
Income tax (expense) benefit | 4 | 7 | 9 | 12 | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | $ 17 | $ 11 | $ 34 | $ 23 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(6) million for the six months ended June 30, 2018 and 2017, respectively. Of total OTTI, credit losses of $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(7) million for the six months ended June 30, 2018 and 2017, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2018 and 2017, respectively, and $0 million and $1 million for the six months ended June 30, 2018 and 2017, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income. |
Debt (Details)
Debt (Details) - USD ($) | Mar. 07, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Debt Instrument | ||||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 491,000,000 | $ 689,000,000 | ||
Commercial paper outstanding | $ 0 | $ 100,000,000 | ||
Senior Notes [Member] | 4.05% Senior notes due March 7, 2048 [Member] | ||||
Debt Instrument | ||||
Debt, principal amount | $ 500,000,000 | |||
Interest rate (percent) | 4.05% | |||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 491,000,000 | |||
Percentage of principal amount at which redemption price may be set | 100.00% | 100.00% | ||
Basis points added to current Treasury rate used in calculation of alternative redemption price | 0.15% |
Debt Debt (Details) - Repayment
Debt Debt (Details) - Repayment - USD ($) | May 15, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument | |||
Debt, principal amount repaid | $ 600,000,000 | $ 207,000,000 | |
Senior Notes [Member] | Senior Notes 5.80% Due May 15, 2018 [Member] | |||
Debt Instrument | |||
Debt, principal amount repaid | $ 500,000,000 | ||
Interest rate (percent) | 5.80% |
Debt (Details) - Credit Agreeme
Debt (Details) - Credit Agreement - Revolving Credit Agreement [Member] - USD ($) | Jun. 04, 2018 | Jun. 03, 2018 | Jun. 30, 2018 |
Revolving Credit Agreement Entered Into on June 4, 2018 [Member] | |||
Line of Credit Facility | |||
Credit agreement, term (in years) | 5 years | ||
Credit agreement, maximum borrowing capacity | $ 1,000,000,000 | ||
Credit agreement, covenant terms | Pursuant to the credit agreement covenants, the Company must maintain a minimum consolidated net worth, defined as shareholders’ equity determined in accordance with GAAP (excluding accumulated other comprehensive income (loss)) plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital) less goodwill and other intangible assets. That threshold is adjusted downward by an amount equal to 70% of the aggregate amount of common stock repurchased by the Company after March 31, 2018, up to a maximum deduction of $1.75 billion. The threshold was $13.999 billion at June 30, 2018 and could decline to a minimum of $12.494 billion during the term of the credit agreement, subject to the Company repurchasing an additional $2.15 billion of its common stock. In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change in control, which is defined to include the acquisition of 35% or more of the Company’s voting stock and certain changes in the composition of the Company’s board of directors. | ||
Maximum percentage of trust preferred securities relative to total capital in determining consolidated net worth | 15.00% | ||
Maximum percentage of trust preferred securities and mandatorily convertible securities relative to total capital in determining consolidated net worth | 25.00% | ||
Percentage of aggregate amount of common stock repurchased by the Company after March 31, 2018 by which the threshold is adjusted downward | 70.00% | ||
Maximum downward adjustment to threshold relative to common stock repurchases | $ 1,750,000,000 | ||
Credit agreement, threshold of consolidated net worth | 13,999,000,000 | ||
Common stock repurchases required during the term of the credit agreement to reduce threshold net worth to minimum amount reported | $ 2,150,000,000 | ||
Percentage of Company's voting stock acquired by outside entity that would be considered a change in control | 35.00% | ||
Credit agreement, compliance | At June 30, 2018, the Company was in compliance with these covenants. | ||
Revolving Credit Agreement Entered Into on June 4, 2018 [Member] | Minimum [Member] | |||
Line of Credit Facility | |||
Credit agreement, threshold of consolidated net worth | $ 12,494,000,000 | ||
Revolving Credit Agreement Entered Into on June 4, 2018 [Member] | LIBOR [Member] | |||
Line of Credit Facility | |||
Credit agreement, cost of borrowing, basis points above LIBOR | 1.00% | ||
Revolving Credit Agreement Entered Into on June 4, 2018 [Member] | LIBOR [Member] | Minimum [Member] | |||
Line of Credit Facility | |||
Credit agreement, cost of borrowing, basis points above LIBOR | 0.75% | ||
Revolving Credit Agreement Entered Into on June 4, 2018 [Member] | LIBOR [Member] | Maximum [Member] | |||
Line of Credit Facility | |||
Credit agreement, cost of borrowing, basis points above LIBOR | 1.375% | ||
Revolving Credit Agreement Due to Expire on June 7, 2018 [Member] | |||
Line of Credit Facility | |||
Credit agreement, term (in years) | 5 years | ||
Credit agreement, maximum borrowing capacity | $ 1,000,000,000 |
Common Share Repurchases (Detai
Common Share Repurchases (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | ||
Number of shares repurchased (in shares) | shares | 2,700,000 | 5,200,000 |
Cost of shares repurchased | $ 350 | $ 700 |
Average cost per share repurchased (in dollars per share) | $ / shares | $ 129.66 | $ 135.47 |
Number of shares acquired to cover tax withholding costs and exercise costs (in shares) | shares | 1,374 | 300,000 |
Cost of shares acquired to cover tax withholding costs and exercise costs | $ 0.2 | $ 51 |
Remaining capacity under share repurchase authorization | $ 3,860 | $ 3,860 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 524 | $ 595 | $ 1,193 | $ 1,212 |
Participating share-based awards — allocated income | (4) | (5) | (9) | (9) |
Net income available to common shareholders -- basic | 520 | 590 | 1,184 | 1,203 |
Net income available to common shareholders -- diluted | $ 520 | $ 590 | $ 1,184 | $ 1,203 |
Weighted average shares outstanding, basic (in shares) | 268.7 | 277.5 | 269.8 | 278.6 |
Weighted average effects of dilutive securities - stock options and performance shares (in shares) | 2.4 | 2.5 | 2.7 | 2.6 |
Weighted average shares outstanding, diluted (in shares) | 271.1 | 280 | 272.5 | 281.2 |
Net income per common share, basic (in dollars per share) | $ 1.93 | $ 2.13 | $ 4.39 | $ 4.32 |
Net income per common share, diluted (in dollars per share) | $ 1.92 | $ 2.11 | $ 4.35 | $ 4.28 |
Share-Based Incentive Compens60
Share-Based Incentive Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock options vested at end of period, number (in shares) | 6,135,747 | 6,135,747 | ||
Stock options vested at end of period, weighted average exercise price (in dollars per share) | $ 98.60 | $ 98.60 | ||
Stock options vested at end of period, weighted average contractual life remaining (in years) | 6 years | |||
Stock options vested at end of period, aggregate intrinsic value | $ 158 | $ 158 | ||
Stock options exercisable at end of period, number (in shares) | 3,850,199 | 3,850,199 | ||
Stock options exercisable at end of period, weighted average exercise price (in dollars per share) | $ 85.96 | $ 85.96 | ||
Stock options exercisable at end of period, weighted average contractual life remaining (in years) | 4 years 7 months 6 days | |||
Stock options exercisable at end of period, aggregate intrinsic value | $ 140 | $ 140 | ||
Total compensation cost recognized in earnings for all share-based incentive compensation awards | 33 | $ 31 | 77 | $ 73 |
Tax benefit recognized in earnings related to compensation costs | 6 | $ 10 | 14 | $ 24 |
Total unrecognized compensation cost related to all nonvested share-based incentive compensation awards | $ 201 | $ 201 | ||
Weighted-average period of recognition for unrecognized compensation cost (in years) | 2 years |
Pension Plans, Retirement Ben61
Pension Plans, Retirement Benefits and Savings Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | $ 33 | $ 30 | $ 66 | $ 60 |
Interest cost on benefit obligation | 32 | 30 | 63 | 61 |
Expected return on plan assets | (66) | (60) | (132) | (120) |
Net periodic benefit cost, amortization of unrecognized prior service benefit | (1) | (1) | ||
Net periodic benefit cost, amortization of unrecognized net actuarial loss | 23 | 19 | 46 | 37 |
Total non-service cost (benefit) | (12) | (11) | (24) | (22) |
Net periodic benefit cost | 21 | 19 | 42 | 38 |
Pension Plans [Member] | Claims and claim adjustment expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 14 | 12 | 27 | 24 |
Total non-service cost (benefit) | (5) | (5) | (10) | (9) |
Pension Plans [Member] | General and administrative expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 19 | 18 | 39 | 36 |
Total non-service cost (benefit) | (7) | (6) | (14) | (13) |
Postretirement Benefit Plans [Member] | ||||
Defined benefit plan disclosure | ||||
Interest cost on benefit obligation | 2 | 1 | 4 | 3 |
Net periodic benefit cost, amortization of unrecognized prior service benefit | (1) | $ (1) | (2) | (2) |
Total non-service cost (benefit) | 1 | 2 | 1 | |
Net periodic benefit cost | 1 | 2 | 1 | |
Postretirement Benefit Plans [Member] | Claims and claim adjustment expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Total non-service cost (benefit) | $ 1 | 1 | ||
Postretirement Benefit Plans [Member] | General and administrative expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Total non-service cost (benefit) | $ 1 | $ 1 |
Contingencies, Commitments an62
Contingencies, Commitments and Guarantees (Details) - Commitments - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments to private equity limited partnerships and real estate partnerships | $ 1,600 | $ 1,560 |
Contingencies, Commitments an63
Contingencies, Commitments and Guarantees (Details) - Guarantees $ in Millions | Jun. 30, 2018USD ($) |
Indemnifications related to the sale of businesses [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | $ 358 |
Amount recognized on balance sheet for contingent obligation | 2 |
Guarantees of certain investments and third-party loans [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | 45 |
Amount indemnified by a third party | 23 |
Guarantees of certain insurance policy obligations [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | 480 |
Amount indemnified by a third party | $ 480 |
Consolidating Financial State64
Consolidating Financial Statements (Unaudited) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure | |
Amount of certain debt obligations of Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings, Inc. (TIGHI) that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 700 |
Consolidating Financial State65
Consolidating Financial Statements (Details) - Consolidating Statement of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Consolidating Statement of Income | |||||
Premiums | $ 6,695 | $ 6,351 | $ 13,232 | $ 12,534 | |
Net investment income | 595 | 598 | 1,198 | 1,208 | |
Fee income | 112 | 116 | 215 | 229 | |
Net realized investment gains (losses) | [1] | 36 | 80 | 25 | 85 |
Other revenues | 39 | 39 | 93 | 70 | |
Total revenues | 7,477 | 7,184 | 14,763 | 14,126 | |
Claims and claim adjustment expenses | 4,562 | 4,225 | 8,858 | 8,319 | |
Amortization of deferred acquisition costs | 1,081 | 1,032 | 2,142 | 2,035 | |
General and administrative expenses | 1,113 | 1,045 | 2,175 | 2,041 | |
Interest expense | 90 | 92 | 179 | 181 | |
Total claims and expenses | 6,846 | 6,394 | 13,354 | 12,576 | |
Income before income taxes | 631 | 790 | 1,409 | 1,550 | |
Income tax expense (benefit) | 107 | 195 | 216 | 338 | |
Net income | 524 | 595 | 1,193 | 1,212 | |
Total other-than-temporary impairment losses | (1) | (5) | (1) | (6) | |
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (5) | (7) | |||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (1) | (1) | |||
Other-than-temporary impairment losses recognized in other comprehensive income | 0 | 0 | |||
Other-than-temporary impairment gains recognized in other comprehensive income | 0 | 1 | |||
Reportable Legal Entities [Member] | TPC [Member] | |||||
Consolidating Statement of Income | |||||
Premiums | 4,577 | 4,345 | 9,045 | 8,573 | |
Net investment income | 412 | 401 | 824 | 813 | |
Fee income | 112 | 116 | 215 | 229 | |
Net realized investment gains (losses) | 18 | (4) | 20 | (8) | |
Other revenues | 13 | 30 | 40 | 54 | |
Total revenues | 5,132 | 4,888 | 10,144 | 9,661 | |
Claims and claim adjustment expenses | 3,064 | 2,851 | 5,974 | 5,603 | |
Amortization of deferred acquisition costs | 727 | 693 | 1,432 | 1,361 | |
General and administrative expenses | 766 | 737 | 1,495 | 1,440 | |
Interest expense | 13 | 12 | 24 | 24 | |
Total claims and expenses | 4,570 | 4,293 | 8,925 | 8,428 | |
Income before income taxes | 562 | 595 | 1,219 | 1,233 | |
Income tax expense (benefit) | 104 | 157 | 210 | 287 | |
Net income | 458 | 438 | 1,009 | 946 | |
Total other-than-temporary impairment losses | (1) | (2) | (1) | (2) | |
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (2) | (3) | |||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (1) | (1) | |||
Other-than-temporary impairment gains recognized in other comprehensive income | 1 | ||||
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | |||||
Consolidating Statement of Income | |||||
Premiums | 2,118 | 2,006 | 4,187 | 3,961 | |
Net investment income | 175 | 191 | 360 | 385 | |
Net realized investment gains (losses) | 16 | 25 | 4 | 34 | |
Other revenues | 27 | 12 | 55 | 21 | |
Total revenues | 2,336 | 2,234 | 4,606 | 4,401 | |
Claims and claim adjustment expenses | 1,498 | 1,374 | 2,884 | 2,716 | |
Amortization of deferred acquisition costs | 354 | 339 | 710 | 674 | |
General and administrative expenses | 343 | 305 | 671 | 597 | |
Total claims and expenses | 2,195 | 2,018 | 4,265 | 3,987 | |
Income before income taxes | 141 | 216 | 341 | 414 | |
Income tax expense (benefit) | 21 | 54 | 53 | 108 | |
Net income | 120 | 162 | 288 | 306 | |
Total other-than-temporary impairment losses | (3) | (4) | |||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (3) | (4) | |||
Reportable Legal Entities [Member] | TRV [Member] | |||||
Consolidating Statement of Income | |||||
Net investment income | 8 | 6 | 14 | 10 | |
Net realized investment gains (losses) | 2 | 59 | 1 | 59 | |
Total revenues | 10 | 65 | 15 | 69 | |
General and administrative expenses | 5 | 6 | 11 | 9 | |
Interest expense | 77 | 80 | 155 | 157 | |
Total claims and expenses | 82 | 86 | 166 | 166 | |
Income before income taxes | (72) | (21) | (151) | (97) | |
Income tax expense (benefit) | (18) | (16) | (47) | (57) | |
Net income of subsidiaries | 578 | 600 | 1,297 | 1,252 | |
Net income | 524 | 595 | 1,193 | 1,212 | |
Eliminations [Member] | |||||
Consolidating Statement of Income | |||||
Other revenues | (1) | (3) | (2) | (5) | |
Total revenues | (1) | (3) | (2) | (5) | |
General and administrative expenses | (1) | (3) | (2) | (5) | |
Total claims and expenses | (1) | (3) | (2) | (5) | |
Net income of subsidiaries | (578) | (600) | (1,297) | (1,252) | |
Net income | $ (578) | $ (600) | $ (1,297) | $ (1,252) | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(6) million for the six months ended June 30, 2018 and 2017, respectively. Of total OTTI, credit losses of $(1) million and $(5) million for the three months ended June 30, 2018 and 2017, respectively, and $(1) million and $(7) million for the six months ended June 30, 2018 and 2017, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2018 and 2017, respectively, and $0 million and $1 million for the six months ended June 30, 2018 and 2017, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidating Financial State66
Consolidating Financial Statements (Details) - Consolidating Statement of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidating Statement of Comprehensive Income | ||||
Net income | $ 524 | $ 595 | $ 1,193 | $ 1,212 |
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (298) | 327 | (1,501) | 471 |
Changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income | (12) | 2 | (14) | 2 |
Net changes in benefit plan assets and obligations | 21 | 17 | 43 | 34 |
Net changes in unrealized foreign currency translation | (158) | 48 | (152) | 89 |
Other comprehensive income (loss) before income taxes | (447) | 394 | (1,624) | 596 |
Income tax expense (benefit) | (81) | 123 | (325) | 185 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (366) | 271 | (1,299) | 411 |
Other comprehensive income (loss), net of taxes | (366) | 271 | (1,299) | 411 |
Comprehensive income (loss) | 158 | 866 | (106) | 1,623 |
Reportable Legal Entities [Member] | TPC [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | 458 | 438 | 1,009 | 946 |
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (209) | 296 | (1,047) | 389 |
Changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income | (10) | 1 | (11) | 2 |
Net changes in unrealized foreign currency translation | (77) | 14 | (102) | 39 |
Other comprehensive income (loss) before income taxes | (296) | 311 | (1,160) | 430 |
Income tax expense (benefit) | (58) | 102 | (233) | 139 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (238) | 209 | (927) | 291 |
Other comprehensive income (loss), net of taxes | (238) | 209 | (927) | 291 |
Comprehensive income (loss) | 220 | 647 | 82 | 1,237 |
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | 120 | 162 | 288 | 306 |
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (89) | 85 | (453) | 129 |
Changes in net unrealized gains (losses) on investment securities having credit losses recognized in the consolidated statement of income | (2) | 1 | (3) | |
Net changes in benefit plan assets and obligations | (1) | (1) | ||
Net changes in unrealized foreign currency translation | (81) | 34 | (50) | 50 |
Other comprehensive income (loss) before income taxes | (172) | 119 | (506) | 178 |
Income tax expense (benefit) | (21) | 33 | (98) | 49 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (151) | 86 | (408) | 129 |
Other comprehensive income (loss), net of taxes | (151) | 86 | (408) | 129 |
Comprehensive income (loss) | (31) | 248 | (120) | 435 |
Reportable Legal Entities [Member] | TRV [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | 524 | 595 | 1,193 | 1,212 |
Changes in net unrealized gains (losses) on investment securities having no credit losses recognized in the consolidated statement of income | (54) | (1) | (47) | |
Net changes in benefit plan assets and obligations | 21 | 18 | 43 | 35 |
Other comprehensive income (loss) before income taxes | 21 | (36) | 42 | (12) |
Income tax expense (benefit) | (2) | (12) | 6 | (3) |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | 23 | (24) | 36 | (9) |
Other comprehensive income (loss) of subsidiaries | (389) | 295 | (1,335) | 420 |
Other comprehensive income (loss), net of taxes | (366) | 271 | (1,299) | 411 |
Comprehensive income (loss) | 158 | 866 | (106) | 1,623 |
Eliminations [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | (578) | (600) | (1,297) | (1,252) |
Other comprehensive income (loss) of subsidiaries | 389 | (295) | 1,335 | (420) |
Other comprehensive income (loss), net of taxes | 389 | (295) | 1,335 | (420) |
Comprehensive income (loss) | $ (189) | $ (895) | $ 38 | $ (1,672) |
Consolidating Financial State67
Consolidating Financial Statements (Details) - Consolidating Balance Sheet (Unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Consolidating Balance Sheet | ||||
Fixed maturities, at fair value | $ 62,536 | $ 62,694 | ||
Equity securities, at fair value | 424 | |||
Equity securities, available for sale, at fair value | 453 | |||
Real estate investments | 954 | 932 | ||
Short-term securities | 3,692 | 4,895 | ||
Other investments | 3,555 | 3,528 | ||
Total investments | 71,161 | 72,502 | ||
Cash | 415 | 344 | $ 328 | $ 307 |
Investment income accrued | 610 | 606 | ||
Premiums receivable | 7,786 | 7,144 | ||
Reinsurance recoverables | 8,258 | 8,309 | ||
Ceded unearned premiums | 698 | 551 | ||
Deferred acquisition costs | 2,161 | 2,025 | ||
Deferred taxes | 463 | 70 | ||
Contractholder receivables | 4,830 | 4,775 | ||
Goodwill | 3,931 | 3,951 | ||
Other intangible assets | 356 | 342 | ||
Other assets | 2,854 | 2,864 | ||
Total assets | 103,523 | 103,483 | ||
Claims and claim adjustment expense reserves | 49,961 | 49,650 | ||
Unearned premium reserves | 13,755 | 12,915 | ||
Contractholder payables | 4,830 | 4,775 | ||
Payables for reinsurance premiums | 396 | 274 | ||
Debt | 6,464 | 6,571 | ||
Other liabilities | 5,494 | 5,567 | ||
Total liabilities | 80,900 | 79,752 | ||
Common stock | 23,040 | 22,886 | ||
Retained earnings | 34,296 | 33,462 | ||
Accumulated other comprehensive income (loss) | (1,688) | (343) | ||
Treasury stock, at cost | (33,025) | (32,274) | ||
Total shareholders’ equity | 22,623 | 23,731 | 23,858 | |
Total liabilities and shareholders’ equity | 103,523 | 103,483 | ||
Fixed maturities, available for sale, amortized cost | 62,674 | 61,316 | ||
Equity securities, cost | $ 409 | |||
Equity securities, available for sale, cost | $ 440 | |||
Common stock, shares authorized (in shares) | 1,750,000,000 | 1,750,000,000 | ||
Common stock, shares issued (in shares) | 267,800,000 | 271,500,000 | ||
Common stock, shares outstanding (in shares) | 267,700,000 | 271,400,000 | ||
Treasury stock, at cost (in shares) | 506,400,000 | 500,900,000 | ||
Reportable Legal Entities [Member] | TPC [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, at fair value | $ 43,192 | $ 43,240 | ||
Equity securities, at fair value | 131 | |||
Equity securities, available for sale, at fair value | 161 | |||
Real estate investments | 54 | 54 | ||
Short-term securities | 1,765 | 2,751 | ||
Other investments | 2,730 | 2,673 | ||
Total investments | 47,872 | 48,879 | ||
Cash | 231 | 157 | 134 | 141 |
Investment income accrued | 424 | 418 | ||
Premiums receivable | 5,251 | 4,852 | ||
Reinsurance recoverables | 5,797 | 5,842 | ||
Ceded unearned premiums | 610 | 493 | ||
Deferred acquisition costs | 1,955 | 1,835 | ||
Deferred taxes | 180 | (89) | ||
Contractholder receivables | 3,909 | 3,854 | ||
Goodwill | 2,584 | 2,592 | ||
Other intangible assets | 225 | 202 | ||
Other assets | 2,077 | 2,181 | ||
Total assets | 71,115 | 71,216 | ||
Claims and claim adjustment expense reserves | 33,579 | 33,386 | ||
Unearned premium reserves | 9,542 | 8,957 | ||
Contractholder payables | 3,909 | 3,854 | ||
Payables for reinsurance premiums | 230 | 165 | ||
Debt | 693 | 693 | ||
Other liabilities | 4,188 | 4,161 | ||
Total liabilities | 52,141 | 51,216 | ||
Additional paid-in capital | 11,634 | 11,634 | ||
Retained earnings | 7,869 | 8,036 | ||
Accumulated other comprehensive income (loss) | (529) | 330 | ||
Total shareholders’ equity | 18,974 | 20,000 | ||
Total liabilities and shareholders’ equity | 71,115 | 71,216 | ||
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, at fair value | 19,260 | 19,372 | ||
Equity securities, at fair value | 110 | |||
Equity securities, available for sale, at fair value | 111 | |||
Real estate investments | 900 | 878 | ||
Short-term securities | 530 | 914 | ||
Other investments | 824 | 854 | ||
Total investments | 21,624 | 22,129 | ||
Cash | 184 | 187 | 192 | 164 |
Investment income accrued | 182 | 183 | ||
Premiums receivable | 2,535 | 2,292 | ||
Reinsurance recoverables | 2,461 | 2,467 | ||
Ceded unearned premiums | 88 | 58 | ||
Deferred acquisition costs | 206 | 190 | ||
Deferred taxes | 295 | 173 | ||
Contractholder receivables | 921 | 921 | ||
Goodwill | 1,356 | 1,368 | ||
Other intangible assets | 131 | 140 | ||
Other assets | 166 | (3) | ||
Total assets | 30,149 | 30,105 | ||
Claims and claim adjustment expense reserves | 16,382 | 16,264 | ||
Unearned premium reserves | 4,213 | 3,958 | ||
Contractholder payables | 921 | 921 | ||
Payables for reinsurance premiums | 166 | 109 | ||
Debt | 21 | 14 | ||
Other liabilities | 778 | 882 | ||
Total liabilities | 22,481 | 22,148 | ||
Common stock | 390 | 390 | ||
Additional paid-in capital | 6,972 | 6,972 | ||
Retained earnings | 685 | 594 | ||
Accumulated other comprehensive income (loss) | (379) | 1 | ||
Total shareholders’ equity | 7,668 | 7,957 | ||
Total liabilities and shareholders’ equity | 30,149 | 30,105 | ||
Reportable Legal Entities [Member] | TRV [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, at fair value | 84 | 82 | ||
Equity securities, at fair value | 183 | |||
Equity securities, available for sale, at fair value | 181 | |||
Short-term securities | 1,397 | 1,230 | ||
Other investments | 1 | 1 | ||
Total investments | 1,665 | 1,494 | ||
Cash | $ 2 | $ 2 | ||
Investment income accrued | 4 | 5 | ||
Deferred taxes | (12) | (14) | ||
Investment in subsidiaries | 26,630 | 27,946 | ||
Other assets | 632 | 700 | ||
Total assets | 28,919 | 30,131 | ||
Debt | 5,771 | 5,878 | ||
Other liabilities | 528 | 524 | ||
Total liabilities | 6,299 | 6,402 | ||
Common stock | 23,040 | 22,886 | ||
Retained earnings | 34,293 | 33,460 | ||
Accumulated other comprehensive income (loss) | (1,688) | (343) | ||
Treasury stock, at cost | (33,025) | (32,274) | ||
Total shareholders’ equity | 22,620 | 23,729 | ||
Total liabilities and shareholders’ equity | 28,919 | 30,131 | ||
Eliminations [Member] | ||||
Consolidating Balance Sheet | ||||
Goodwill | (9) | (9) | ||
Investment in subsidiaries | (26,630) | (27,946) | ||
Other assets | (21) | (14) | ||
Total assets | (26,660) | (27,969) | ||
Debt | (21) | (14) | ||
Total liabilities | (21) | (14) | ||
Common stock | (390) | (390) | ||
Additional paid-in capital | (18,606) | (18,606) | ||
Retained earnings | (8,551) | (8,628) | ||
Accumulated other comprehensive income (loss) | 908 | (331) | ||
Total shareholders’ equity | (26,639) | (27,955) | ||
Total liabilities and shareholders’ equity | $ (26,660) | $ (27,969) |
Consolidating Financial State68
Consolidating Financial Statements (Details) - Consolidating Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidating Statement of Cash Flows | ||||
Net income | $ 524 | $ 595 | $ 1,193 | $ 1,212 |
Net adjustments to reconcile net income to net cash provided by operating activities | 505 | 542 | ||
Net cash provided by operating activities | 1,698 | 1,754 | ||
Proceeds from maturities of fixed maturities | 3,657 | 4,300 | ||
Proceeds from sales of investments: | ||||
Fixed maturities | 2,607 | 563 | ||
Equity securities | 92 | |||
Equity securities | 200 | |||
Real estate investments | 20 | |||
Other investments | 189 | 233 | ||
Purchases of investments: | ||||
Fixed maturities | (7,952) | (5,673) | ||
Equity securities | (60) | |||
Equity securities | (166) | |||
Real estate investments | (44) | (26) | ||
Other investments | (275) | (259) | ||
Net sales (purchases) of short-term securities | 1,202 | (424) | ||
Securities transactions in course of settlement | 279 | 170 | ||
Other investing activities | (152) | (128) | ||
Net cash used in investing activities | (457) | (1,190) | ||
Treasury stock acquired — share repurchase authorization | (700) | (700) | ||
Treasury stock acquired — net employee share-based compensation | (51) | (61) | ||
Dividends paid to shareholders | (404) | (389) | ||
Payment of debt | (600) | (207) | ||
Issuance of debt | 491 | 689 | ||
Issuance of common stock — employee share options | 98 | 118 | ||
Net cash used in financing activities | (1,166) | (550) | ||
Effect of exchange rate changes on cash | (4) | 7 | ||
Net increase in cash | 71 | 21 | ||
Cash at beginning of year | 344 | 307 | ||
Cash at end of period | 415 | 328 | 415 | 328 |
Income taxes paid (received) | 238 | 323 | ||
Interest paid | 175 | 178 | ||
Reportable Legal Entities [Member] | TPC [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | 458 | 438 | 1,009 | 946 |
Net adjustments to reconcile net income to net cash provided by operating activities | 323 | 341 | ||
Net cash provided by operating activities | 1,332 | 1,287 | ||
Proceeds from maturities of fixed maturities | 2,730 | 3,211 | ||
Proceeds from sales of investments: | ||||
Fixed maturities | 1,847 | 285 | ||
Equity securities | 33 | |||
Equity securities | 4 | |||
Other investments | 133 | 176 | ||
Purchases of investments: | ||||
Fixed maturities | (5,762) | (4,160) | ||
Equity securities | (2) | |||
Equity securities | (3) | |||
Other investments | (232) | (202) | ||
Net sales (purchases) of short-term securities | 986 | 383 | ||
Securities transactions in course of settlement | 268 | 105 | ||
Other investing activities | (148) | (134) | ||
Net cash used in investing activities | (147) | (335) | ||
Dividends paid to parent company | (1,109) | (961) | ||
Net cash used in financing activities | (1,109) | (961) | ||
Effect of exchange rate changes on cash | (2) | 2 | ||
Net increase in cash | 74 | (7) | ||
Cash at beginning of year | 157 | 141 | ||
Cash at end of period | 231 | 134 | 231 | 134 |
Income taxes paid (received) | 193 | 336 | ||
Interest paid | 24 | 24 | ||
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | 120 | 162 | 288 | 306 |
Net adjustments to reconcile net income to net cash provided by operating activities | 11 | 83 | ||
Net cash provided by operating activities | 299 | 389 | ||
Proceeds from maturities of fixed maturities | 914 | 1,087 | ||
Proceeds from sales of investments: | ||||
Fixed maturities | 759 | 278 | ||
Equity securities | 59 | |||
Equity securities | 75 | |||
Real estate investments | 20 | |||
Other investments | 56 | 57 | ||
Purchases of investments: | ||||
Fixed maturities | (2,173) | (1,511) | ||
Equity securities | (56) | |||
Equity securities | (41) | |||
Real estate investments | (44) | (26) | ||
Other investments | (43) | (57) | ||
Net sales (purchases) of short-term securities | 383 | 78 | ||
Securities transactions in course of settlement | 12 | 64 | ||
Other investing activities | (4) | 6 | ||
Net cash used in investing activities | (137) | 30 | ||
Issuance of debt | 7 | |||
Dividends paid to parent company | (170) | (396) | ||
Net cash used in financing activities | (163) | (396) | ||
Effect of exchange rate changes on cash | (2) | 5 | ||
Net increase in cash | (3) | 28 | ||
Cash at beginning of year | 187 | 164 | ||
Cash at end of period | 184 | 192 | 184 | 192 |
Income taxes paid (received) | 171 | 119 | ||
Reportable Legal Entities [Member] | TRV [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | 524 | 595 | 1,193 | 1,212 |
Net adjustments to reconcile net income to net cash provided by operating activities | 146 | 223 | ||
Net cash provided by operating activities | 1,339 | 1,435 | ||
Proceeds from maturities of fixed maturities | 13 | 2 | ||
Proceeds from sales of investments: | ||||
Fixed maturities | 1 | |||
Equity securities | 121 | |||
Purchases of investments: | ||||
Fixed maturities | (17) | (2) | ||
Equity securities | (2) | |||
Equity securities | (122) | |||
Net sales (purchases) of short-term securities | (167) | (885) | ||
Securities transactions in course of settlement | (1) | 1 | ||
Net cash used in investing activities | (173) | (885) | ||
Treasury stock acquired — share repurchase authorization | (700) | (700) | ||
Treasury stock acquired — net employee share-based compensation | (51) | (61) | ||
Dividends paid to shareholders | (404) | (389) | ||
Payment of debt | (600) | (207) | ||
Issuance of debt | 491 | 689 | ||
Issuance of common stock — employee share options | 98 | 118 | ||
Net cash used in financing activities | (1,166) | (550) | ||
Cash at beginning of year | 2 | |||
Cash at end of period | 2 | 2 | ||
Income taxes paid (received) | (126) | (132) | ||
Interest paid | 151 | 154 | ||
Eliminations [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | $ (578) | $ (600) | (1,297) | (1,252) |
Net adjustments to reconcile net income to net cash provided by operating activities | 25 | (105) | ||
Net cash provided by operating activities | (1,272) | (1,357) | ||
Purchases of investments: | ||||
Issuance of debt | (7) | |||
Dividends paid to parent company | 1,279 | 1,357 | ||
Net cash used in financing activities | $ 1,272 | $ 1,357 |