Consolidated Statement of Incom
Consolidated Statement of Income (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Revenues | |||
Premiums | $21,418 | $21,579 | $21,470 |
Net investment income | 2,776 | 2,792 | 3,761 |
Fee income | 306 | 390 | 508 |
Net realized investment gains (losses) | 17 | (415) | 154 |
Other revenues | 163 | 131 | 124 |
Total revenues | 24,680 | 24,477 | 26,017 |
Claims and expenses | |||
Claims and claim adjustment expenses | 12,408 | 12,993 | 12,397 |
Amortization of deferred policy acquisition costs | 3,813 | 3,880 | 3,706 |
General and administrative expenses | 3,366 | 3,518 | 3,352 |
Interest expense, debt | 382 | 370 | 346 |
Total claims and expenses | 19,969 | 20,761 | 19,801 |
Income before income taxes | 4,711 | 3,716 | 6,216 |
Income tax expense | 1,089 | 792 | 1,615 |
Net income | 3,622 | 2,924 | 4,601 |
Net income per share | |||
Net income per share, basic | 6.38 | 4.87 | 7 |
Net income per share, diluted | 6.33 | 4.81 | 6.85 |
Weighted average number of common shares outstanding | |||
Weighted average number of common shares outstanding, basic | 563.2 | 595.9 | 652 |
Weighted average number of common shares outstanding, diluted | 568.6 | 604.3 | 668.6 |
Other-than-temporary impairment losses: | |||
Other-than-temporary impairment losses, total losses | (323) | (420) | (70) |
Other-than-temporary impairment losses, portion of losses recognized in accumulated other changes in equity from nonowner sources | 65 | 0 | 0 |
Other-than-temporary impairment losses | (258) | (420) | (70) |
Other net realized investment gains | 275 | 5 | 224 |
Net realized investment gains (losses) | $17 | ($415) | $154 |
Common Domain Members
Common Domain Members (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 11, 2010
| Jun. 30, 2009
| |
Entity Domain | |||
Entity Registrant Name | Travelers Companies, Inc. | ||
Entity Central Index Key | 0000086312 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $23,223,429,462 | ||
Entity Common Stock, Shares Outstanding | 513,574,126 |
Consolidated Balance Sheet
Consolidated Balance Sheet (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
Assets | ||
Fixed maturities, available for sale at fair value (including $90 and $8 subject to securities lending) (amortized cost $63,311 and $61,569) | $65,847 | $61,275 |
Equity securities, at fair value (cost $373 and $461) | 451 | 379 |
Real estate | 865 | 827 |
Short-term securities | 4,852 | 5,222 |
Other investments | 2,950 | 3,035 |
Total investments | 74,965 | 70,738 |
Cash | 255 | 350 |
Investment income accrued | 825 | 823 |
Premiums receivable | 5,471 | 5,835 |
Reinsurance recoverables | 12,816 | 14,232 |
Ceded unearned premiums | 916 | 941 |
Deferred acquisition costs | 1,758 | 1,774 |
Deferred tax asset | 672 | 1,965 |
Contractholder receivables | 5,797 | 6,350 |
Goodwill | 3,365 | 3,366 |
Other intangible assets | 588 | 688 |
Other assets | 2,132 | 2,570 |
Total assets | 109,560 | 109,632 |
Liabilities | ||
Claims and claim adjustment expense reserves | 53,127 | 54,723 |
Unearned premium reserves | 10,861 | 10,957 |
Contractholder payables | 5,797 | 6,350 |
Payables for reinsurance premiums | 546 | 528 |
Debt | 6,527 | 6,181 |
Other liabilities | 5,287 | 5,574 |
Total liabilities | 82,145 | 84,313 |
Shareholders' equity | ||
Preferred Stock Savings Plan - convertible preferred stock (0.2 and 0.3 shares issued and outstanding) | 79 | 89 |
Common stock (1,748.6 shares authorized; 520.3 and 585.1 shares issued and outstanding) | 19,593 | 19,242 |
Retained earnings | 16,315 | 13,314 |
Accumulated other changes in equity from nonowner sources | 1,219 | (900) |
Treasury stock, at cost (199.6 and 128.8 shares) | (9,791) | (6,426) |
Total shareholders' equity | 27,415 | 25,319 |
Total liabilities and shareholders' equity | $109,560 | $109,632 |
Balance Sheet Parentheticals
Balance Sheet Parentheticals (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
Balance Sheet Parentheticals | ||
Fixed maturities, subject to securities lending | $90 | $8 |
Fixed maturities, amortized cost | 63,311 | 61,569 |
Equity securities, at cost | $373 | $461 |
Preferred Stock Savings Plan, shares issued | 0.2 | 0.3 |
Preferred Stock Savings Plan, shares outstanding | 0.2 | 0.3 |
Common stock, shares authorized | 1748.6 | 1748.6 |
Common stock, shares issued | 520.3 | 585.1 |
Common stock, shares outstanding | 520.3 | 585.1 |
Treasury stock (at cost), shares | 199.6 | 128.8 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Convertible preferred stock - savings plan | |||
Convertible preferred stock - savings plan, balance, beginning of year | $89 | $112 | $129 |
Convertible preferred stock - savings plan, redemptions during year | (10) | (23) | (17) |
Convertible preferred stock - savings plan, balance, end of year | 79 | 89 | 112 |
Common stock [Abstract] | |||
Common stock, balance, beginning of year | 19,242 | 18,990 | 18,530 |
Common stock, employee share-based compensation | 210 | 114 | 260 |
Common stock, compensation amortization under share-based plans and other changes | 141 | 138 | 164 |
Common stock, conversion of convertible notes | 0 | 0 | 36 |
Common stock, balance, end of year | 19,593 | 19,242 | 18,990 |
Retained Earnings | |||
Retained earnings, balance, beginning of year | 13,314 | 11,110 | 7,253 |
Retained earnings, cumulative effect of adoption of updated accounting guidance at April 1, 2009 (see note 1) | 71 | 0 | 0 |
Net income | 3,622 | 2,924 | 4,601 |
Dividends | (696) | (715) | (742) |
Retained earnings, other | 4 | (5) | (2) |
Retained earnings, balance, end of year | 16,315 | 13,314 | 11,110 |
Accumulated other changes in equity from nonowner sources, net of tax | |||
Accumulated other changes in equity from nonowner sources, net of tax, balance, begining of year | (900) | 670 | 452 |
Accumulated other changes in equity from nonowner sources, net of tax, cumulative effect of adoption of updated accounting guidance at April 1, 2009 (see note 1) | (71) | 0 | 0 |
Change in net unrealized gain (loss) on investment securities having no credit losses recognized in the consolidated statement of income | 1,945 | (764) | 167 |
Change in net unrealized gain (loss) on investment securities having credit losses recognized in the consolidated statement of income | 131 | 0 | 0 |
Net change in benefit plan assets and obligations recognized in equity | (88) | (405) | (50) |
Net change in unrealized foreign currency translation and other changes | 202 | (401) | 101 |
Accumulated other changes in equity from nonowner sources, net of tax, balance, end of year | 1,219 | (900) | 670 |
Treasury stock (at cost) | |||
Treasury stock (at cost), balance, beginning of year | (6,426) | (4,266) | (1,229) |
Treasury stock (at cost), treasury shares acquired - share repurchase authorization | (3,300) | (2,122) | (2,947) |
Treasury stock (at cost), net shares acquired related to employee share-based compensation plans | (65) | (38) | (90) |
Treasury stock (at cost), balance, end of year | (9,791) | (6,426) | (4,266) |
Total common shareholders' equity | 27,336 | 25,230 | 26,504 |
Total shareholders' equity | 27,415 | 25,319 | 26,616 |
Common shares outstanding | |||
Common shares outstanding, balance, beginning of year | 585.1 | 627.8 | 678.3 |
Common shares outstanding, treasury shares acquired - share repurchase authorization | -69.4 | (45) | (56) |
Common shares outstanding, net shares issued under employee share-based compensation plans | 4.6 | 2.3 | 4.8 |
Common shares outstanding, shares issued pursuant to conversion of convertible notes | 0 | 0 | 0.7 |
Common shares outstanding, balance, end of year | 520.3 | 585.1 | 627.8 |
Summary of changes in equity from nonowner sources | |||
Net income | 3,622 | 2,924 | 4,601 |
Other changes in equity from nonowner sources, net of tax | 2,190 | (1,570) | 218 |
Total changes in equity from nonowner sources | $5,812 | $1,354 | $4,819 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash flows from operating activities | |||
Net income | $3,622 | $2,924 | $4,601 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net realized investment (gains) losses | (17) | 415 | (154) |
Depreciation and amortization expense | 797 | 821 | 811 |
Deferred federal income tax expense (benefit) | 213 | (58) | 230 |
Amortization of deferred policy acquisition costs | 3,813 | 3,880 | 3,706 |
Equity in (income) loss from other investments | 126 | 312 | (570) |
Change in premiums receivable | 364 | 285 | (4) |
Change in reinsurance recoverables | 1,416 | 1,209 | 2,172 |
Change in deferred acquisition costs | (3,797) | (3,845) | (3,925) |
Change in claims and claim adjustment expense reserves | (1,596) | (2,033) | (1,410) |
Change in unearned premium reserves | (96) | (270) | 103 |
Other operating activities | (614) | (502) | (274) |
Net cash provided by operating activities | 4,231 | 3,138 | 5,286 |
Cash flows from investing activities | |||
Proceeds from maturities of fixed maturities | 5,316 | 4,869 | 5,305 |
Proceeds from sales of investments, fixed maturities | 2,805 | 6,932 | 7,323 |
Proceeds from sales of investments, equity securities | 65 | 53 | 106 |
Proceeds from sales of investments, real estate | 0 | 25 | 11 |
Proceeds from sales of investments, other investments | 511 | 655 | 1,460 |
Purchases of investments, fixed maturities | (9,647) | (11,127) | (14,719) |
Purchases of investments, equity securities | (24) | (95) | (135) |
Purchases of investments, real estate | (15) | (38) | (74) |
Purchases of investments, other investments | (349) | (667) | (740) |
Net sales (purchases) of short-term securities | 370 | (406) | (562) |
Securities transactions in course of settlement | 395 | (318) | (123) |
Other investing activities | (326) | (45) | (378) |
Net cash used in investing activities | (899) | (162) | (2,526) |
Cash flows from financing activities | |||
Payment of debt | (143) | (552) | (1,956) |
Issuance of debt | 494 | 496 | 2,461 |
Dividends paid to shareholders | (693) | (715) | (742) |
Issuance of common stock - employee share options | 180 | 89 | 218 |
Treasury stock acquired - share repurchase authorization | (3,259) | (2,167) | (2,920) |
Treasury stock acquired - net employee share-based compensation | (29) | (29) | (39) |
Excess tax benefits from share-based payment arrangements, financing activities | 8 | 10 | 25 |
Net cash used in financing activities | (3,442) | (2,868) | (2,953) |
Effect of exchange rate changes on cash | 15 | (29) | 5 |
Net increase (decrease) in cash | (95) | 79 | (188) |
Cash at beginning of period | 350 | 271 | 459 |
Cash at end of period | 255 | 350 | 271 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 876 | 841 | 1,346 |
Interest paid | $385 | $375 | $357 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Basis of Presentation and Accounting Policies disclosure [Abstract] | |
Basis of Presentation and Accounting Policies Disclosure | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of The Travelers Companies,Inc. (together with its subsidiaries, the Company). The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (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 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 2008 and 2007 financial statements to conform to the 2009 presentation. All material intercompany transactions and balances have been eliminated. Adoption of Accounting Standards Updates Noncontrolling Interests in Consolidated Financial Statements In December 2007, the FASB issued updated guidance that established accounting and reporting standards for noncontrolling interests in a subsidiary and for the deconsolidation of a subsidiary. In addition, the guidance clarified that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as a component of equity rather than a liability in the consolidated financial statements. The provisions of the guidance were effective on a prospective basis beginning January1, 2009, except for the presentation and disclosure requirements, which were applied on a retrospective basis for all periods presented. The adoption of the guidance on January1, 2009 did not have a material effect on the Company's results of operations, financial position or liquidity. Determination of the Useful Life of Intangible Assets In April 2008, the FASB issued updated guidance that amended the factors that an entity should consider in determining the useful life of a recognized intangible asset to include the entity's historical experience in renewing or extending similar arrangements, whether or not the arrangements have explicit renewal or extension provisions. Previously, an entity was precluded from using its own assumptions about renewal or extension of an arrangement where there was likely to be substantial cost or modifications. Entities without their own historical experience should consider the assumptions market participants would use about renewal or extension. The guidance may result in the useful life of an entity's intangible asset differing from the period of expected cash flows that was used to measure the fair value of the underlying asset. Disclosure of an entity's intent and/or ability to renew or extend the arrangement is also required. The guidance was effective for financial statements issued for fiscal years beginning after December15, 2008 and for interim periods within those fiscal years. The adoption of the guidance on January1, 2009 did not have a material effect on the Company's results of operations, financial position or liquidity and did not require additional disclosures related to |
Segment Information disclosure
Segment Information disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Segment Information disclosure [Abstract] | |
Segment Information Disclosure | 2. SEGMENT INFORMATION The Company is organized into three reportable business segments: Business Insurance; Financial, Professional International Insurance; and Personal Insurance. The accounting policies used to generate the following segment data are the same as those described in the Summary of Significant Accounting Policies in note1. Except as described below for certain legal entities, the Company allocates its invested assets and the related net investment income to its reportable business segments. Pretax net investment income is allocated based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment. For investable funds, a benchmark investment yield is developed that reflects the estimated duration of the loss reserves' future cash flows, the interest rate environment at the time the losses were incurred and A+ rated corporate debt instrument yields. For capital, a benchmark investment yield is developed that reflects the average yield on the total investment portfolio. The benchmark investment yields are applied to each segment's investable funds and capital, respectively, to produce a total notional investment income by segment. The Company's actual net investment income is allocated to each segment in proportion to the respective segment's notional investment income to total notional investment income. There are certain legal entities within the Company that are dedicated to specific reportable business segments. The invested assets and related net investment income from these legal entities are reported in the applicable business segment and are not allocated among the other business segments. The cost of the Company's catastrophe treaty program is included in the Company's ceded premiums and is allocated among reportable business segments based on an estimate of actual market reinsurance pricing using expected losses calculated by the Company's catastrophe model, adjusted for any experience adjustments. The following tables summarize the components of the Company's revenues, operating income and total assets by reportable business segments: (for the year ended December31, in millions) Business Insurance Financial, Professional International Insurance Personal Insurance Total Reportable Segments 2009 Premiums $ 10,968 $ 3,333 $ 7,117 $ 21,418 Net investment income 1,902 452 422 2,776 Fee income 306 306 Other revenues 42 27 84 153 Total operating revenues(1) $ 13,218 $ 3,812 $ 7,623 $ 24,653 Amortization and depreciation $ 2,279 $ 763 $ 1,567 $ 4,609 Income tax expense 850 222 198 1,270 Operating income(1) 2,590 642 601 3,833 2008 Premiums $ 11,180 $ 3,429 $ 6,970 $ 21,579 Net investment income 1,917 454 421 2,792 Fee income 390 390 Other revenues 30 24 75 129 Total |
Investments disclosure
Investments disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Investments disclosure [Abstract] | |
Investments disclosure | 3. INVESTMENTS Fixed Maturities The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows: Gross Unrealized Amortized Cost Fair Value (at December31, 2009, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities $ 2,490 $ 85 $ 1 $ 2,574 Obligations of states, municipalities and political subdivisions 39,459 1,915 41 41,333 Debt securities issued by foreign governments 1,912 48 3 1,957 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 5,182 190 165 5,207 All other corporate bonds 14,221 623 116 14,728 Redeemable preferred stock 47 2 1 48 Total $ 63,311 $ 2,863 $ 327 $ 65,847 Gross Unrealized Amortized Cost Fair Value (at December31, 2008, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities $ 1,681 $ 160 $ $ 1,841 Obligations of states, municipalities and political subdivisions 38,598 920 456 39,062 Debt securities issued by foreign governments 1,453 67 1 1,519 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 6,266 157 364 6,059 All other corporate bonds 13,498 121 882 12,737 Redeemable preferred stock 73 1 17 57 Total $ 61,569 $ 1,426 $ 1,720 $ 61,275 The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (at December31, 2009, in millions) Amortized Cost Fair Value Due in one year or less $ 4,310 $ 4,368 Due after 1year through 5years 19,180 20,260 Due after 5years through 10years 17,225 18,074 Due after 10years 17,414 17,938 58,129 60,640 Mortgage-backed securities 5,182 5,207 Total $ 63,311 $ 65,847 At December31, 2009 and 2008, the Company held commercial mortgage-backed securities (CMBS, including FHA project loans) of $714million and $766million, respectively, which are included in "All other corporate bonds" in the tables above. At December31, 2009 and 2008, approximately $236million and $258million of these securities, respectively, or the loans backing such securities, contained guarantees by the U.S. government or a government-sponsored enterprise, and $20million at both dates were comprised of Canadian non-guaranteed securities. The average credit rating of the $478million of non-guaranteed securities at December31, 2009 was "Aaa," and 91% of those securities were issued in 2004 and pri |
Fair Value Measurements disclos
Fair Value Measurements disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Fair Value Measurements disclosure [Abstract] | |
Fair Value Measurements disclosure | 4. 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 three levels of the hierarchy are as follows: Level1Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. Level2Quoted 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. Level3Valuations 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 fair value of a financial instrument is the estimated amount at which the instrument could be exchanged in an orderly transaction between knowledgeable, unrelated willing parties, i.e.,not in a forced transaction. The estimated fair value of a financial instrument may differ from the amount that could be realized if the security was sold in an immediate sale, e.g.,a forced transaction. Additionally, the valuation of fixed maturity investments is more subjective when markets are less liquid due to the lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction would occur. For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in Level1 of the hierarchy. The Company receives the quoted market prices from a third party, nationally recognized pricing service (pricing service). When quoted market prices are unavailable, the Company utilizes a pricing service to determine an estimate of fair value, which is mainly used for its fixed maturity investments. The fair value estimates provided from this pricing service are included in the amount disclosed in Level2 of the hierarchy. If quoted market prices and an estimate from a pricing service are unavailable, the Company produces an estimate of fair value based on internally developed valuation techniques, which, depending on the level of obser |
Reinsurance disclosure
Reinsurance disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Reinsurance disclosure [Abstract] | |
Reinsurance disclosure [Text Block] | 5. REINSURANCE The Company's consolidated financial statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) the Company has underwritten to other insurance companies who agree to share these risks. The primary purpose of ceded reinsurance is to protect the Company, at a cost, from volatility in excess of the amount it is prepared to accept. Reinsurance is placed on both a quota-share and excess of loss basis. Ceded reinsurance arrangements do not discharge the Company as the primary insurer, except for instances where the primary policy or policies have been novated. Included in reinsurance recoverables are certain amounts related to structured settlements. Structured settlements comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers' compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the structured settlement is included in reinsurance recoverables as the Company retains the contingent liability to the claimant. In the event that the life insurance company fails to make the required annuity payments, the Company would be required to make such payments. The Company evaluates and monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to minimize its exposure to significant losses from reinsurer insolvencies. In addition, in the ordinary course of business, the Company may become involved in coverage disputes with its reinsurers. Some of these disputes could result in lawsuits and arbitrations brought by or against the reinsurers to determine the Company's rights and obligations under the various reinsurance agreements. The Company employs dedicated specialists and strategies to manage reinsurance collections and disputes. The Company is also required to participate in various involuntary reinsurance arrangements through assumed reinsurance, principally with regard to residual market mechanisms in workers' compensation and automobile insurance, as well as homeowners' insurance in certain coastal areas. The Company provides services for several of these involuntary arrangements ("mandatory pools and associations") under which it writes such residual market business directly, then cedes 100% of this business to the mandatory pool. Such servicing arrangements are arranged to mitigate credit risk to the Company, as any ceded balances are jointly backed by all the pool members. The Company utilizes a general catastrophe reinsurance treaty with unaffiliated reinsurers to manage its exposure to losses resulting from catastrophes. In addition to the coverage provided under this treaty, the Company also utilizes catastrophe bond programs, as well as a Northeast catastrophe reinsurance treaty, to protect against losses resulting from catastrophes in the Northeastern United States. Certain o |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Goodwill and Other Intangible Assets disclosure [Abstract] | |
Goodwill and Other Intangible Assets disclosure | 6. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Company's goodwill by segment at December31, 2009 and 2008: (in millions) 2009 2008 Business Insurance $ 2,168 $ 2,168 Financial, Professional International Insurance 557 556 Personal Insurance 613 613 Other 27 29 Total $ 3,365 $ 3,366 Other Intangible Assets The following presents a summary of the Company's other intangible assets by major asset class at December31, 2009 and 2008: (at December31, 2009, in millions) Gross Carrying Amount Accumulated Amortization Net Intangibles subject to amortization Customer-related $ 935 $ 722 $ 213 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables(1) 191 32 159 Total intangible assets subject to amortization 1,126 754 372 Intangible assets not subject to amortization 216 216 Total other intangible assets $ 1,342 $ 754 $ 588 (at December31, 2008, in millions) Gross Carrying Amount Accumulated Amortization Net Intangibles subject to amortization Customer-related $ 935 $ 650 $ 285 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables(1) 191 4 187 Total intangible assets subject to amortization 1,126 654 472 Intangible assets not subject to amortization 216 216 Total other intangible assets $ 1,342 $ 654 $ 688 (1) The fair value adjustment of $191million was recorded in connection with the merger of The St.Paul Companies,Inc. and Travelers Property Casualty Corp. in 2004 and was based on management's estimate of nominal claims and claim adjustment expense reserves and reinsurance recoverables (after adjusting for conformity with the acquirer's accounting policy on discounting of workers' compensation reserves), expected payment patterns, the April1, 2004 U.S. Treasury spot rate yield curve, a leverage ratio assumption (reserves to statutory surplus), and a cost of capital expressed as a spread over risk-free rates. The method used calculates a risk adjustment to a risk-free discounted reserve that will, if reserves run off as expected, produce results that yield the assumed cost-of-capital on the capital supporting the loss reserves. The fair value adjustment is reported as an other intangible asset on the consolidated balance sheet, and the amounts measured in accordance with the acquirer's accounting policies for insurance contracts are reported as part of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible asset will be 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 asset run off at different rates, the amount recognized in income m |
Insurance Claim Reserves disclo
Insurance Claim Reserves disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Insurance Claim Reserves disclosure [Abstract] | |
Insurance Claim Reserves disclosure [Text Block] | 7. INSURANCE CLAIM RESERVES Claims and claim adjustment expense reserves were as follows: (at December31, in millions) 2009 2008 Property-casualty $ 53,054 $ 54,646 Accident and health 73 77 Total $ 53,127 $ 54,723 The table below is a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses. (at and for the year ended December31, in millions) 2009 2008 2007 Claims and claim adjustment expense reserves at beginning of year $ 54,646 $ 57,619 $ 59,202 Less reinsurance recoverables on unpaid losses 13,334 14,521 16,358 Net reserves at beginning of year 41,312 43,098 42,844 Estimated claims and claim adjustment expenses for claims arising in the current year 13,681 14,504 12,848 Estimated decrease in claims and claim adjustment expenses for claims arising in prior years (1,449 ) (1,725 ) (672 ) Total increases 12,232 12,779 12,176 Claims and claim adjustment expense payments for claims arising in: Current year 5,399 5,761 4,528 Prior years 7,519 7,356 7,417 Total payments 12,918 13,117 11,945 Sale of subsidiary(1) (790 ) Unrealized foreign exchange (gain) loss 315 (658 ) 23 Net reserves at end of year 40,941 41,312 43,098 Plus reinsurance recoverables on unpaid losses 12,113 13,334 14,521 Claims and claim adjustment expense reserves at end of year $ 53,054 $ 54,646 $ 57,619 (1) In December 2008, the Company sold its United Kingdom based subsidiary, Unionamerica Holdings,Ltd., which was in runoff. Gross claims and claim adjustment expense reserves at December31, 2009 decreased by $1.59billion from the same date in 2008, primarily reflecting ongoing claims and claim adjustment expense activity, including losses incurred and payments, as well as favorable prior year reserve development and payments related to operations in runoff. Gross claims and claim adjustment expense reserves at December31, 2008 decreased by $2.97billion from the same date in 2007, primarily reflecting ongoing claims and claim adjustment expense activity, including losses incurred and payments, favorable prior year reserve development, payments related to operations in runoff (including asbestos and environmental payments) and the sale of Unionamerica, partially offset by catastrophe losses incurred. The $1.22billion decline in reinsurance recoverables in 2009 primarily reflected various commutation agreements and collections on reinsurance recoverables, including those related to prior years' hurricane losses. The $1.19billion decline in reinsurance recoverables in 2008 compared with 2007 primarily reflected the sale of Unionamerica, various commutation agreements and collections on reinsurance recoverables, including those related to prior y |
Debt disclosure
Debt disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Debt disclosure [Abstract] | |
Debt disclosure | 8. DEBT Debt outstanding was as follows: (at December31, in millions) 2009 2008 Short-term: Commercial paper $ 100 $ 100 8.125% Senior notes due April15, 2010 250 7.415% Medium-term notes due August23, 2010 21 7.81% Private placement notes due September16, 2010 and 2009 2 2 Zero coupon convertible notes, effective yield 4.17%, due March3, 2009 140 Total short-term debt 373 242 Long-term: 8.125% Senior notes due April15, 2010 250 7.415% Medium-term notes due August23, 2010 21 7.22% Real estate non-recourse debt due September1, 2011 9 9 7.81% Private placement notes due on various dates through 2011 2 4 5.375% Senior notes due June15, 2012 250 250 5.00% Senior notes due March15, 2013 500 500 5.50% Senior notes due December1, 2015 400 400 6.25% Senior notes due June20, 2016 400 400 5.75% Senior notes due December15, 2017 450 450 5.80% Senior notes due May15, 2018 500 500 5.90% Senior notes due June2, 2019 500 7.75% Senior notes due April15, 2026 200 200 7.625% Junior subordinated debentures due December15, 2027 125 125 6.375% Senior notes due March15, 2033 500 500 6.75% Senior notes due June20, 2036 400 400 6.25% Senior notes due June15, 2037 800 800 8.50% Junior subordinated debentures due December15, 2045 56 56 8.312% Junior subordinated debentures due July1, 2046 73 73 6.25% Fixed-to-floating rate junior subordinated debentures due March15, 2067 1,000 1,000 Total long-term debt 6,165 5,938 Total debt principal 6,538 6,180 Unamortized fair value adjustment 58 68 Unamortized debt issuance costs (69 ) (67 ) Total debt $ 6,527 $ 6,181 2009 Debt IssuanceOn June2, 2009, the Company issued $500million aggregate principal amount of 5.90% senior notes that will mature on June2, 2019. The net proceeds of the issuance, after original issuance discount and the deduction of underwriting expenses and commissions and other expenses, totaled approximately $494million. Interest on the senior notes is payable semi-annually in arrears on June2 and December2 of each year. The senior notes are redeemable in whole at any time or in part from time to time, at the Company's option, at a redemption price equal to the greater of (a)100% of the principal amount of senior notes to be redeemed or (b)the sum of the present values of the remaining scheduled payments of principal and interest on the 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) plus 35 basis points for the senior notes. 2009 Debt MaturityOn March3, 2009, the Company's zero coupon convertible notes with an effective yield of 4.17% and a rem |
Shareholders' Equity and Divide
Shareholders' Equity and Dividend Availability disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Shareholders' Equity and Dividend Availability disclosure [Abstract] | |
Shareholders' Equity and Dividend Availability disclosure [Text Block] | 9. SHAREHOLDERS' EQUITY AND DIVIDEND AVAILABILITY Preferred Stock The Company's preferred shareholders' equity represents the par value of preferred shares outstanding related to a legacy Stock Ownership Plan (SOP) Trust which was subsequently merged into The Travelers 401(k) Savings Plan (the 401(k) Savings Plan). The SOP Trust may at any time convert any or all of the preferred shares into shares of the Company's common stock at a rate of eight shares of common stock for each preferred share. The board of directors has reserved a sufficient number of authorized common shares to satisfy the conversion of all preferred shares issued to the SOP Trust and the redemption of preferred shares to meet employee distribution requirements. Upon the redemption of preferred shares, the Company will issue shares of common stock to the trust to fulfill the redemption obligations. See note13. Holders of the preferred stock have a preference upon liquidation, dissolution or winding up of the Company of $100 per share. Common Stock The Company is governed by the Minnesota Business Corporation Act. All authorized shares of voting common stock have no par value. Shares of common stock reacquired are considered authorized and unissued shares. The number of authorized shares of the company is 1.75billion, consisting of 1.745billion shares of voting common stock and five million undesignated shares. The Company's articles of incorporation allow the board of directors to establish, from the undesignated shares, one or more classes and series of shares, and to further designate the type of shares and terms thereof. In 1990, the board designated 1.45million shares as SeriesB Convertible Preferred Stock in connection with its 401(k) Savings Plan. Treasury Stock Since May 2006, the Company's board of directors has approved four common share repurchase authorizations, for a cumulative authorization of up to $16billion of shares of the Company's common stock. Under these authorizations, the most recent of which totaled $6billion and was approved by the board of directors in October 2009, repurchases may be made from time to time in the open market, pursuant to preset trading plans meeting the requirements of Rule10b5-1 under the Securities Exchange Act of 1934, in private transactions or otherwise. The authorizations do not have a stated expiration date. The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including the Company's earnings, corporate and regulatory requirements, share price, catastrophe losses, strategic initiatives and other market conditions. The following table summarizes repurchase activity in 2009 under these authorizations and remaining repurchase capacity at December31, 2009. Quarterly Period Ending Number of shares purchased Cost of shares repurchased Average price paid per share Remaining capacity under share repurchase authorization March31, 2009 $ $ $ 3,809,857,539 June30, 2009 18,450,066 750,030,914 40.65 3,059,826,625 September30, 2009 20,826,981 1,000,035,439 48.02 2,05 |
Earnings per Share disclosure
Earnings per Share disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Earnings per Share disclosure [Abstract] | |
Earnings per Share disclosure [Text Block] | 10. EARNINGS PER SHARE Basic earnings per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities. On January1, 2009, the Company adopted the updated guidance related to earnings per share as described in note1. The impact of the adoption of this guidance was a reduction of previously reported basic earnings per share by $0.03 per share and $0.04 per share for the years ended December31, 2008 and 2007, respectively, and a reduction of previously reported diluted earnings per share by $0.01 per share for each of the years ended December31, 2008 and 2007. The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations: (for the year ended December31, in millions, except per share amounts) 2009 2008 2007 Basic Net income, as reported $ 3,622 $ 2,924 $ 4,601 Preferred stock dividends (3 ) (4 ) (4 ) Participating share-based awardsallocated income (26 ) (19 ) (33 ) Net income available to common shareholdersbasic $ 3,593 $ 2,901 $ 4,564 Diluted Net income available to common shareholders $ 3,593 $ 2,901 $ 4,564 Effect of dilutive securities: Convertible preferred stock 3 4 4 Performance shares 2 Zero coupon convertible notes 1 4 4 Convertible junior subordinated notes 8 Net income available to common shareholdersdiluted $ 3,599 $ 2,909 $ 4,580 Common Shares Basic Weighted average shares outstanding 563.2 595.9 652.0 Diluted Weighted average shares outstanding 563.2 595.9 652.0 Weighted average effects of dilutive securities: Convertible preferred stock 2.0 2.4 2.9 Stock options and performance shares 3.0 3.6 6.4 Zero coupon convertible notes 0.4 2.4 2.4 Convertible junior subordinated notes 4.9 Total 568.6 604.3 668.6 Net income Per Common Share Basic $ 6.38 $ 4.87 $ 7.00 Diluted $ 6.33 $ 4.81 $ 6.85 |
Income Taxes disclosure
Income Taxes disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Income Taxes disclosure [Abstract] | |
Income Taxes disclosure [Text Block] | 11. INCOME TAXES (for the year ended December31, in millions) 2009 2008 2007 Composition of income tax expense (benefit) included in consolidated statement of income Current expense (benefit): Federal $ 822 $ 763 $ 1,279 Foreign 75 68 103 State (8 ) 10 3 Total current tax expense 889 841 1,385 Deferred expense (benefit): Federal 213 (58 ) 230 Foreign (13 ) 9 Total deferred tax expense (benefit) 200 (49 ) 230 Total income tax expense included in consolidated statement of income 1,089 792 1,615 Composition of income tax included in common shareholders' equity Expense (benefit) relating to stock-based compensation, the change in unrealized appreciation on investments, unrealized loss on foreign exchange and unrealized loss on derivatives, and other comprehensive income 1,099 (701 ) 47 Total income tax expense included in consolidated financial statements $ 2,188 $ 91 $ 1,662 Effective tax rate Income before federal, foreign and state income taxes $ 4,711 $ 3,716 $ 6,216 Statutory tax rate 35 % 35 % 35 % Expected federal income tax expense 1,649 1,301 2,176 Tax effect of: Nontaxable investment income (480 ) (480 ) (465 ) Other, net (80 ) (29 ) (96 ) Total income tax expense $ 1,089 $ 792 $ 1,615 Effective tax rate 23 % 21 % 26 % The current income tax payable was $150million and $145million at December31, 2009 and 2008, respectively, and is included in other liabilities in the consolidated balance sheet. The net deferred tax asset comprises the tax effects of temporary differences related to the following assets and liabilities: (at December31, in millions) 2009 2008 Deferred tax assets Claims and claim adjustment expense reserves $ 1,116 $ 1,217 Unearned premium reserves 648 663 Investments 105 Other 693 769 Total gross deferred tax assets 2,457 2,754 Deferred tax liabilities Deferred acquisition costs 564 575 Investments 1,044 Internally-developed software 108 100 Other 69 114 Total gross deferred tax liabilities 1,785 789 Total deferred income taxes $ 672 $ 1,965 If the Company determines that any of its deferred tax assets will not result in future tax benefits, a valuation allowance must be established for the portion of these assets that are not expected to be realized. Based upon a review of the Company's anticipated future taxable income, and also including all other available evidence, both positive and negative, the Company's management concluded that it is more likely than not that the gross deferred ta |
Share-Based Incentive Compensat
Share-Based Incentive Compensation disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Share-Based Incentive Compensation disclosure [Abstract] | |
Share-Based Incentive Compensation disclosure | 12. SHARE-BASED INCENTIVE COMPENSATION The Company has a share-based incentive compensation plan, The Travelers Companies,Inc. Amended and Restated 2004 Stock Incentive Plan (the 2004 Incentive Plan), which replaced prior share-based incentive compensation plans (legacy plans). The purposes of the 2004 Incentive Plan are to align the interests of the Company's non-employee directors, executive officers and other employees with those of the Company's shareholders, and to attract and retain personnel by providing incentives in the form of stock-based awards. The 2004 Incentive Plan permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, deferred stock units, performance awards and other stock-based or stock-denominated awards with respect to the Company's common stock. The number of shares of the Company's common stock authorized for grant under the 2004 Incentive Plan is 35million shares, subject to additional shares that may be available for awards as described below. The Company has a policy of issuing new shares to settle the exercise of stock option awards and the vesting of other equity awards. In connection with the adoption of the 2004 Incentive Plan, legacy share-based incentive compensation plans were terminated. Outstanding grants were not affected by the termination of these legacy plans, including the grant of reload options related to prior option grants under the legacy plans. The 2004 Incentive Plan is the only plan pursuant to which future stock-based awards may be granted. In addition to the 35million shares initially authorized for issuance under the 2004 Incentive Plan, the following will not be counted towards the 35million shares available and will be available for future grants under the 2004 Incentive Plan: (i)shares of common stock subject to an award that expires unexercised, that is forfeited, terminated or canceled, that is settled in cash or other forms of property, or otherwise does not result in the issuance of shares of common stock, in whole or in part; (ii)shares that are used to pay the exercise price of stock options and shares used to pay withholding taxes on awards generally; and (iii)shares purchased by the Company on the open market using cash option exercise proceeds; provided, however, that the increase in the number of shares of common stock available for grant pursuant to such market purchases shall not be greater than the number that could be repurchased at fair market value on the date of exercise of the stock option giving rise to such option proceeds. These provisions also apply to awards granted under the legacy share-based incentive compensation plans that were outstanding on the effective date of the 2004 Incentive Plan. The Company also has a compensation program for non-employee directors (the Director Compensation Program). Under the Director Compensation Program, non-employee directors' compensation consists of an annual retainer, a deferred stock award, committee chair fees and a lead director fee. Each non-employee director may choose to receive all or a portion of his or he |
Pension Plans, Retirement Benef
Pension Plans, Retirement Benefits and Savings Plan disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Pension Plans, Retirement Benefits and Savings Plans disclosure [Abstract] | |
Pension Plans, Retirement Benefits and Savings Plans disclosure | 13. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The Company sponsors a qualified non-contributory defined benefit pension plan, which covers substantially all employees and provides benefits under a cash balance formula, except that employees satisfying certain age and service requirements remain covered by a prior final average pay formula. In addition, the Company sponsors a nonqualified defined benefit pension plan which covers certain highly-compensated employees and also sponsors a postretirement health and life insurance benefit plan for employees satisfying certain age and service requirements and for certain retirees. Obligations and Funded Status The following tables summarize the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company's benefit plans. The Company uses a December31 measurement date for its pension and postretirement benefit plans. Qualified Domestic Plan Nonqualified and Foreign Plans Total (at and for the year ended December31, in millions) 2009 2008 2009 2008 2009 2008 Change in projected benefit obligation Benefit obligation at beginning of year $ 1,907 $ 1,841 $ 137 $ 182 $ 2,044 $ 2,023 Benefits earned 76 74 4 3 80 77 Interest cost on benefit obligation 116 107 9 10 125 117 Actuarial loss (gain) 212 (8 ) 32 (18 ) 244 (26 ) Benefits paid (97 ) (107 ) (16 ) (13 ) (113 ) (120 ) Foreign currency exchange rate change 7 (27 ) 7 (27 ) Benefit obligation at end of year $ 2,214 $ 1,907 $ 173 $ 137 $ 2,387 $ 2,044 Change in plan assets Fair value of plan assets at beginning of year $ 1,758 $ 1,870 $ 60 $ 105 $ 1,818 $ 1,975 Actual return on plan assets 259 (455 ) 14 (18 ) 273 (473 ) Company contributions 260 450 13 10 273 460 Benefits paid (97 ) (107 ) (16 ) (13 ) (113 ) (120 ) Foreign currency exchange rate change 7 (24 ) 7 (24 ) Fair value of plan assets at end of year 2,180 1,758 78 60 2,258 1,818 Funded status of plan at end of year $ (34 ) $ (149 ) $ (95 ) $ (77 ) $ (129 ) $ (226 ) Amounts recognized in the statement of financial position consist of: Accrued over-funded benefit plan assets $ $ $ $ 2 $ $ 2 Accrued under-funded benefit plan liabilities (34 ) (149 ) (95 ) (79 ) (129 ) (228 ) Total $ (34 ) $ (149 ) $ (95 ) $ (77 ) $ (129 ) $ (226 ) Amounts recognized in accumulated other changes in equity from nonowner sources consist of: Prior service benefit $ (2 ) $ (8 ) $ (1 ) $ (1 ) $ (3 ) |
Leases disclosure
Leases disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Leases disclosure [Abstract] | |
Leases disclosure [Text Block] | 14. LEASES Rent expense was $211million, $220million and $210million in 2009, 2008 and 2007, respectively. Future minimum annual rental payments under noncancellable operating leases are $174million, $142million, $110million, $84million, $64million and $107million for 2010, 2011, 2012, 2013, 2014 and 2015 and thereafter, respectively. Future sublease rental income aggregating approximately $13million will partially offset these commitments. |
Contingencies, Commitements and
Contingencies, Commitements and Guarantees disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Contingencies, Commitments and Guarantees disclosure [Abstract] | |
Contingencies, Commitments and Guarantees disclosure | 15. CONTINGENCIES, COMMITMENTS AND GUARANTEES Contingencies This section describes 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 property is subject. Asbestos- and Environmental-Related Proceedings In the ordinary course of its insurance business, the Company receives 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, including, among others, the litigation described below. The Company continues to be subject to aggressive asbestos-related litigation. The conditions surrounding the final resolution of these claims and the related litigation continue to change. The Company is defending its 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 aggressive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. For other information regarding the Company's asbestos and environmental exposure, including the results of its annual in-depth asbestos claim review as well as its quarterly asbestos reserve review, see "PartIItem2Management's Discussion and Analysis of Financial Condition and Results of OperationsAsbestos Claims and Litigation," "Environmental Claims and Litigation" and "Uncertainty Regarding Adequacy of Asbestos and Environmental Reserves." Asbestos Direct Action LitigationIn October 2001 and April 2002, two purported class action suits (Wise v. Travelers and Meninger v. Travelers) were filed against TPC and other insurers (not including SPC) in state court in West Virginia. These and other cases subsequently filed in West Virginia were consolidated into a single proceeding in the Circuit Court of Kanawha County, West Virginia. The plaintiffs allege that the insurer defendants engaged in unfair trade practices in violation of state statutes by inappropriately handling and settling asbestos claims. The plaintiffs seek to reopen large numbers of settled asbestos claims and to impose liability for damages, including punitive damages, directly on insurers. Similar lawsuits alleging inappropriate handling and settling of asbestos claims were filed in Massachusetts and Hawaii state courts. These suits are collectively referred to as the Statutory and Hawaii Actions. In March 2002, the plaintiffs in consolidated asbestos actions pending before a mass tort panel of judges in West Virginia state court amended their complaint to include TPC as a defendant, alleging that TPC and other insurers breached alleged duties to certain users of asbestos products. The plaintiffs seek damages, including punitive damages. Lawsuits seeking similar relief and raising similar allegations, primarily violations of purported common law duties to third parties, have also been asserted in various s |
Noncash Investing and Financing
Noncash Investing and Financing Activities disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Noncash Investing and Financing Activities disclosure [Abstract] | |
Noncash Investing and Financing Activities disclosure [Text Block] | 16. NONCASH INVESTING AND FINANCING ACTIVITIES There were no significant noncash financing or investing activities during the years ended December31, 2009, 2008 and 2007. |
Subsequent Events disclosure
Subsequent Events disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Subsequent Events disclosure [Abstract] | |
Subsequent Events disclosure | 17. SUBSEQUENT EVENTS There were no subsequent events requiring adjustment to the financial statements or disclosure through February18, 2010, the date that the Company's financial statements were issued. |
Consolidating Financial Stateme
Consolidating Financial Statements disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Consolidating Financial Statements disclosure [Abstract] | |
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries | 18. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES,INC. AND SUBSIDIARIES The following consolidating financial statements of the Company have been prepared pursuant to Rule3-10 of RegulationS-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. has fully and unconditionally guaranteed certain debt obligations of TPC, its wholly-owned subsidiary, which totaled $1.19billion at December31, 2009. Prior to the merger, 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. The Travelers Companies,Inc. has fully and unconditionally guaranteed 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 year ended December31, 2009 (in millions) TPC Other Subsidiaries Travelers(1) Eliminations Consolidated Revenues Premiums $ 14,459 $ 6,959 $ $ $ 21,418 Net investment income 1,839 913 24 2,776 Fee income 310 (4 ) 306 Net realized investment gains (losses) (54 ) (57 ) 128 17 Other revenues 118 48 (3 ) 163 Total revenues 16,672 7,859 152 (3 ) 24,680 Claims and expenses Claims and claim adjustment expenses 8,293 4,115 12,408 Amortization of deferred acquisition costs 2,560 1,253 3,813 General and administrative expenses 2,272 1,097 (3 ) 3,366 Interest expense 74 311 (3 ) 382 Total claims and expenses 13,199 6,465 308 (3 ) 19,969 Income (loss) before income taxes 3,473 1,394 (156 ) 4,711 Income tax expense (benefit) 840 344 (95 ) 1,089 Equity in net income of subsidiaries 3,683 (3,683 ) Net income $ 2,633 $ 1,050 $ 3,622 $ (3,683 ) $ 3,622 (in millions) TPC Other Subsidiaries Travelers(1) Eliminations Consolidated Net Realized Investment Gains (Losses) Other-than-temporary impairment losses: Total losses $ (192 ) $ (130 ) $ (1 ) $ $ (323 ) Portion of losses recognized in accumulated other changes in equity from nonowner sources 35 30 65 Other-than-temporary impairment losses (157 ) (100 ) (1 ) (258 ) Other net realized investment gains 103 |
Quarterly Financial Data disclo
Quarterly Financial Data disclosure | |
12 Months Ended
Dec. 31, 2009 | |
Selected quarterly financial data [Abstract] | |
Selected quarterly financial data disclosures [Text Block] | 19. SELECTED QUARTERLY FINANCIAL DATA (Unaudited) 2009 (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Total revenues $ 5,735 $ 6,162 $ 6,327 $ 6,456 $ 24,680 Total expenses 5,008 5,221 5,077 4,663 19,969 Income before income taxes 727 941 1,250 1,793 4,711 Income tax expense 65 201 315 508 1,089 Net income $ 662 $ 740 $ 935 $ 1,285 $ 3,622 Net income per share:(1) Basic $ 1.12 $ 1.27 $ 1.66 $ 2.39 $ 6.38 Diluted 1.11 1.27 1.65 2.36 6.33 2008 (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Total revenues $ 6,232 $ 6,295 $ 6,145 $ 5,805 $ 24,477 Total expenses 4,918 5,008 5,957 4,878 20,761 Income before income taxes 1,314 1,287 188 927 3,716 Income tax expense (benefit) 347 345 (26 ) 126 792 Net income $ 967 $ 942 $ 214 $ 801 $ 2,924 Net income per share:(1) Basic $ 1.56 $ 1.56 $ 0.36 $ 1.36 $ 4.87 Diluted 1.54 1.54 0.36 1.35 4.81 (1) Due to the averaging of shares, quarterly earnings per share may not add to the total for the full year. |
Schedule II
Schedule II | |
12 Months Ended
Dec. 31, 2009 | |
Condensed financial information of registrant [Abstract] | |
Condensed financial information of registrant [Text Block] | SCHEDULE II THE TRAVELERS COMPANIES,INC. (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in millions) CONDENSED STATEMENT OF INCOME For the year ended December31, 2009 2008 2007 Revenues Net investment income $ 24 $ 52 $ 78 Net realized investment gains 128 27 17 Other revenues 5 12 Total revenues 152 84 107 Expenses Interest 311 297 260 Other (3 ) 32 50 Total expenses 308 329 310 Loss before income taxes and equity in net income of subsidiaries (156 ) (245 ) (203 ) Income tax expense (benefit) (95 ) 13 (47 ) Loss before equity in net income of subsidiaries (61 ) (258 ) (156 ) Equity in net income of subsidiaries 3,683 3,182 4,757 Net income $ 3,622 $ 2,924 $ 4,601 For the year ended December31, 2009 2008 2007 Net Realized Investment Gains (Losses) Other-than-temporary impairment losses: Total losses $ (1 ) $ (5 ) $ Portion of losses recognized in accumulated other changes in equity from nonowner sources Other-than-temporary impairment losses (1 ) (5 ) Other net realized investment gains 129 32 17 Net realized investment gains $ 128 $ 27 $ 17 The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto. SCHEDULE II THE TRAVELERS COMPANIES,INC. (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in millions) CONDENSED BALANCE SHEET At December31, 2009 2008 Assets Fixed maturities $ 293 $ 311 Equity securities 57 44 Short-term securities 1,861 1,840 Investment in subsidiaries 30,608 28,181 Other assets 197 285 Total assets $ 33,016 $ 30,661 Liabilities Debt $ 5,372 $ 5,023 Other liabilities 234 319 Total liabilities 5,606 5,342 Shareholders' equity Preferred Stock Savings Planconvertible preferred stock (0.2 and 0.3 shares issued and outstanding) 79 89 Common stock (1,748.6 shares authorized, 520.3 and 585.1 shares issued and outstanding) 19,593 19,242 Retained earnings 16,310 13,314 Accumulated other changes in equity from nonowner sources 1,219 (900 ) Treasury stock, at cost (199.6 and 128.8 shares) (9,791 ) (6,426 ) Total shareholders' equity 27,410 25,319 Total liabilities and shareholders' equity $ 33,016 $ 30,661 The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto. SCHEDULE II THE TRAVELERS COMPANIES,INC. (Parent Company Only) CONDENSED FINAN |
Schedule III
Schedule III | |
12 Months Ended
Dec. 31, 2009 | |
Supplementary Insurance Information [Abstract] | |
Supplementary insurance information [Table] | SCHEDULE III THE TRAVELERS COMPANIES,INC. AND SUBSIDIARIES Supplementary Insurance Information 2007-2009 (in millions) Segment Deferred Acquisition Costs Claims and Claim Adjustment Expense Reserves Unearned Premiums Earned Premiums Net Investment Income(a) Claims and Claim Adjustment Expenses Amortization of Deferred Acquisition Costs Other Operating Expenses(b) Net Written Premiums 2009 Business Insurance $ 791 $ 42,057 $ 5,380 $ 10,968 $ 1,902 $ 6,037 $ 1,775 $ 1,966 $ 10,902 Financial, Professional International Insurance 369 7,197 2,276 3,333 452 1,747 622 579 3,285 Personal Insurance 598 3,800 3,205 7,117 422 4,624 1,416 784 7,149 TotalReportable Segments 1,758 53,054 10,861 21,418 2,776 12,408 3,813 3,329 21,336 Other 73 419 Consolidated $ 1,758 $ 53,127 $ 10,861 $ 21,418 $ 2,776 $ 12,408 $ 3,813 $ 3,748 $ 21,336 2008 Business Insurance $ 813 $ 43,982 $ 5,552 $ 11,180 $ 1,917 $ 6,608 $ 1,818 $ 2,080 $ 11,220 Financial, Professional International Insurance 366 6,741 2,250 3,429 454 1,769 652 583 3,468 Personal Insurance 595 3,923 3,155 6,970 421 4,616 1,410 829 6,995 TotalReportable Segments 1,774 54,646 10,957 21,579 2,792 12,993 3,880 3,492 21,683 Other 77 396 Consolidated $ 1,774 $ 54,723 $ 10,957 $ 21,579 $ 2,792 $ 12,993 $ 3,880 $ 3,888 $ 21,683 2007 Business Insurance $ 821 $ 47,050 $ 5,695 $ 11,283 $ 2,708 $ 6,673 $ 1,742 $ 2,029 $ 11,318 Financial, Professional International Insurance 390 6,822 2,398 3,384 494 1,737 654 590 3,465 Personal Insurance 598 3,747 3,134 6,803 559 3,987 1,310 699 6,835 TotalReportable Segments 1,809 57,619 11,227 21,470 3,761 12,397 3,706 3,318 21,618 Other 81 380 Consolidated $ 1,809 $ 57,700 $ 11,227 $ 21,470 $ 3,761 $ 12,397 $ 3,706 $ 3,698 $ 21,618 (a) See note2 to the consolidated financial statements for discussion of the method used to allocate net investment income and invested assets to the identified segments. (b) Expense allocations are determined in accordance with prescribed statutory accounting practices. These practices make a reasonable allocation of |
Schedule V
Schedule V | |
12 Months Ended
Dec. 31, 2009 | |
Valuation and qualifying accounts [Abstract] | |
Valuation and Qualifying Accounts [Text Block] | SCHEDULE V THE TRAVELERS COMPANIES,INC. AND SUBSIDIARIES Valuation and Qualifying Accounts (in millions) Balance at beginning of period Charged to costs and expenses Charged to other accounts(1) Deductions(2) Balance at end of period 2009 Reinsurance recoverables $ 618 $ $ $ 95 $ 523 Allowance for uncollectible: Premiums receivable from underwriting activities $ 130 $ 61 $ 2 $ 63 $ 130 Deductibles $ 66 $ (4 ) $ $ 13 $ 49 2008 Reinsurance recoverables $ 688 $ $ 176 $ 246 $ 618 Allowance for uncollectible: Premiums receivable from underwriting activities $ 138 $ 41 $ $ 49 $ 130 Deductibles $ 57 $ 13 $ $ 4 $ 66 2007 Reinsurance recoverables $ 773 $ $ 6 $ 91 $ 688 Allowance for uncollectible: Premiums receivable from underwriting activities $ 125 $ 75 $ $ 62 $ 138 Deductibles $ 82 $ (19 ) $ $ 6 $ 57 (1) Charged to claims and claim adjustment expenses in the consolidated statement of income. (2) Credited to the related asset account. |
Schedule VI
Schedule VI | |
12 Months Ended
Dec. 31, 2009 | |
Supplementary information concerning property-casualty insurance operations [Abstract] | |
Supplementary information concerning property-casualty insurance operations [Text Block] | SCHEDULE VI THE TRAVELERS COMPANIES,INC. AND SUBSIDIARIES Supplementary Information Concerning Property-Casualty Insurance Operations(1) 2007-2009 (in millions) Claims and Claim Adjustment Expenses Incurred Related to: Claims and Claim Adjustment Expense Reserves Discount From Reserves for Unpaid Claims Paid Claims and Claim Adjustment Expenses Affiliation with Registrant(2) Deferred Acquisition Costs Unearned Premiums Earned Premiums Net Investment Income Current Year Prior Year Amortization of Deferred Acquisition Costs Net Written Premiums 2009 $ 1,758 $ 53,054 $ 1,163 $ 10,861 $ 21,418 $ 2,776 $ 13,681 $ (1,449 ) $ 3,813 $ 12,918 $ 21,336 2008 $ 1,774 $ 54,646 $ 1,012 $ 10,957 $ 21,579 $ 2,792 $ 14,504 $ (1,725 ) $ 3,880 $ 13,117 $ 21,683 2007 $ 1,809 $ 57,619 $ 1,049 $ 11,227 $ 21,470 $ 3,761 $ 12,848 $ (672 ) $ 3,706 $ 11,945 $ 21,618 (1) Excludes accident and health insurance business. (2) Consolidated property-casualty insurance operations. |