Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 17, 2014 | |
Entity [Domain] | ' | ' |
Registrant name | 'Travelers Companies, Inc. | ' |
Central index key | '0000086312 | ' |
Document type | '10-Q | ' |
Document period end date | 30-Sep-14 | ' |
Amendment flag | 'false | ' |
Current fiscal year end date | '--12-31 | ' |
Well-known seasoned issuer | 'Yes | ' |
Voluntary filers | 'No | ' |
Current reporting status | 'Yes | ' |
Filer category | 'Large Accelerated Filer | ' |
Common stock shares outstanding | ' | 331,396,299 |
Document fiscal year focus | '2014 | ' |
Document fiscal period focus | 'Q3 | ' |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenues | ' | ' | ' | ' | ||||
Premiums | $5,983 | $5,666 | $17,734 | $16,786 | ||||
Net investment income | 719 | 657 | 2,150 | 2,014 | ||||
Fee income | 110 | 107 | 329 | 286 | ||||
Net realized investment gains (losses) | 40 | [1] | -22 | [1] | 57 | [1] | 155 | [1] |
Other revenues | 34 | 44 | 109 | 213 | ||||
Total revenues | 6,886 | 6,452 | 20,379 | 19,454 | ||||
Claims and expenses | ' | ' | ' | ' | ||||
Claims and claim adjustment expenses | 3,520 | 3,297 | 10,661 | 9,980 | ||||
Amortization of deferred acquisition costs | 984 | 953 | 2,899 | 2,851 | ||||
General and administrative expenses | 1,031 | 934 | 2,913 | 2,780 | ||||
Interest expense | 93 | 91 | 277 | 269 | ||||
Total claims and expenses | 5,628 | 5,275 | 16,750 | 15,880 | ||||
Income before income taxes | 1,258 | 1,177 | 3,629 | 3,574 | ||||
Income tax expense | 339 | 313 | 975 | 889 | ||||
Net income | $919 | $864 | $2,654 | $2,685 | ||||
Net income per share | ' | ' | ' | ' | ||||
Net income per share, basic | $2.72 | $2.33 | $7.68 | $7.12 | ||||
Net income per share, diluted | $2.69 | $2.30 | $7.60 | $7.05 | ||||
Weighted average number of common shares outstanding | ' | ' | ' | ' | ||||
Weighted average number of common shares outstanding, basic | 335.1 | 368.9 | 342.9 | 374.1 | ||||
Weighted average number of common shares outstanding, diluted | 338.9 | 372.9 | 346.5 | 378.1 | ||||
[1] | Total other-than-temporary impairment (OTTI) gains (losses) were $(8) million and $0 million for the three months ended September 30, 2014 and 2013, respectively, and $(16) million and $(1) million for the nine months ended September 30, 2014 and 2013, respectively. Of total OTTI, credit losses of $(10) million and $(3) million for the three months ended September 30, 2014 and 2013, respectively, and $(20) million and $(10) million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains from other changes in total OTTI of $2 million and $3 million for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidated_Statement_of_Inco1
Consolidated Statement of Income Parentheticals (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statement of Income (Unaudited) | ' | ' | ' | ' |
Total other-than-temporary impairment gains (losses) | ($8) | $0 | ($16) | ($1) |
Other-than-temporary impairment, credit losses recognized in net realized investment gains (losses) | -10 | -3 | -20 | -10 |
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 on investment securities having credit losses recognized in the consolidated statement of income | $2 | $3 | $4 | $9 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statement of Comprehensive Income (Unaudited) | ' | ' | ' | ' |
Net income | $919 | $864 | $2,654 | $2,685 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | -154 | -204 | 901 | -2,370 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 1 | -2 | 4 | 2 |
Net changes in benefit plan assets and obligations | 15 | 24 | 45 | 78 |
Net changes in unrealized foreign currency translation | -203 | 112 | -149 | -57 |
Other comprehensive income (loss) before income taxes | -341 | -70 | 801 | -2,347 |
Income tax expense (benefit) | -79 | -55 | 311 | -816 |
Other comprehensive income (loss), net of taxes | -262 | -15 | 490 | -1,531 |
Comprehensive income | $657 | $849 | $3,144 | $1,154 |
Consolidated_Balance_Sheet_Una
Consolidated Balance Sheet (Unaudited at September 30, 2014) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Fixed maturities, available for sale, at fair value (amortized cost $61,043 and $62,196) | $63,622 | $63,956 | ' | ' |
Equity securities, available for sale, at fair value (cost $609 and $686) | 949 | 943 | ' | ' |
Real estate investments | 949 | 938 | ' | ' |
Short-term securities | 5,033 | 3,882 | ' | ' |
Other investments | 3,637 | 3,441 | ' | ' |
Total investments | 74,190 | 73,160 | ' | ' |
Cash | 367 | 294 | 295 | 330 |
Investment income accrued | 663 | 734 | ' | ' |
Premiums receivable | 6,439 | 6,125 | ' | ' |
Reinsurance recoverables | 9,279 | 9,713 | ' | ' |
Ceded unearned premiums | 848 | 801 | ' | ' |
Deferred acquisition costs | 1,890 | 1,804 | ' | ' |
Deferred taxes | ' | 303 | ' | ' |
Contractholder receivables | 4,367 | 4,328 | ' | ' |
Goodwill | 3,621 | 3,634 | ' | ' |
Other intangible assets | 316 | 351 | ' | ' |
Other assets | 2,542 | 2,565 | ' | ' |
Total assets | 104,522 | 103,812 | ' | ' |
Liabilities | ' | ' | ' | ' |
Claims and claim adjustment expense reserves | 50,402 | 50,895 | ' | ' |
Unearned premium reserves | 12,181 | 11,850 | ' | ' |
Contractholder payables | 4,367 | 4,328 | ' | ' |
Payables for reinsurance premiums | 491 | 298 | ' | ' |
Deferred taxes | 122 | ' | ' | ' |
Debt | 6,348 | 6,346 | ' | ' |
Other liabilities | 5,290 | 5,299 | ' | ' |
Total liabilities | 79,201 | 79,016 | ' | ' |
Shareholders' equity | ' | ' | ' | ' |
Common stock (1,750.0 shares authorized; 331.4 and 353.5 shares issued and outstanding) | 21,764 | 21,500 | 21,425 | 21,161 |
Retained earnings | 26,394 | 24,291 | 23,485 | 21,352 |
Accumulated other comprehensive income | 1,300 | 810 | 705 | 2,236 |
Treasury stock, at cost (427.6 and 401.5 shares) | -24,137 | -21,805 | -20,804 | -19,344 |
Total shareholders' equity | 25,321 | 24,796 | 24,811 | ' |
Total liabilities and shareholders' equity | $104,522 | $103,812 | ' | ' |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet Parentheticals (Unaudited at September 30, 2014) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Consolidated Balance Sheet (Unaudited at September 30, 2014) | ' | ' | ' | ' |
Fixed maturities, available for sale, amortized cost | $61,043 | $62,196 | ' | ' |
Equity securities, available for sale, cost | $609 | $686 | ' | ' |
Common stock, shares authorized | 1,750 | 1,750 | ' | ' |
Common stock, shares issued | 331.4 | 353.5 | ' | ' |
Common stock, shares outstanding | 331.4 | 353.5 | 364.1 | 377.4 |
Treasury stock, at cost, shares | 427.6 | 401.5 | ' | ' |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Common stock | ' | ' |
Common stock, balance, beginning of year | $21,500 | $21,161 |
Common stock, employee share-based compensation | 120 | 122 |
Common stock, compensation amortization under share-based plans and other changes | 144 | 142 |
Common stock, balance, end of period | 21,764 | 21,425 |
Retained earnings | ' | ' |
Retained earnings, balance, beginning of year | 24,291 | 21,352 |
Net income | 2,654 | 2,685 |
Dividends | -553 | -552 |
Retained earnings, other | 2 | ' |
Retained earnings, balance, end of period | 26,394 | 23,485 |
Accumulated other comprehensive income, net of tax | ' | ' |
Accumulated other comprehensive income, net of tax, balance, beginning of year | 810 | 2,236 |
Other comprehensive income (loss) | 490 | -1,531 |
Accumulated other comprehensive income, net of tax, balance, end of period | 1,300 | 705 |
Treasury stock (at cost) | ' | ' |
Treasury stock (at cost), balance, beginning of year | -21,805 | -19,344 |
Treasury stock (at cost), treasury stock acquired - share repurchase authorization | -2,275 | -1,400 |
Treasury stock (at cost), net shares acquired related to employee share-based compensation plans | -57 | -60 |
Treasury stock (at cost), balance, end of period | -24,137 | -20,804 |
Total shareholders' equity | $25,321 | $24,811 |
Common shares outstanding | ' | ' |
Common shares outstanding, balance, beginning of year | 353.5 | 377.4 |
Common shares outstanding, treasury stock acquired - share repurchase authorization | -25.4 | -17 |
Common shares outstanding, net shares issued under employee share-based compensation plans | 3.3 | 3.7 |
Common shares outstanding, balance, end of period | 331.4 | 364.1 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Cash flows from operating activities | ' | ' | ||
Net income | $2,654 | $2,685 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ||
Net realized investment gains | -57 | [1] | -155 | [1] |
Depreciation and amortization | 653 | 642 | ||
Deferred federal income tax expense | 93 | 132 | ||
Amortization of deferred acquisition costs | 2,899 | 2,851 | ||
Equity in income from other investments | -412 | -247 | ||
Change in premiums receivable | -334 | -242 | ||
Change in reinsurance recoverables | 403 | 1,102 | ||
Change in deferred acquisition costs | -2,993 | -2,862 | ||
Change in claims and claim adjustment expense reserves | -298 | -1,684 | ||
Change in unearned premium reserves | 379 | 483 | ||
Other operating activities | 181 | 184 | ||
Net cash provided by operating activities | 3,168 | 2,889 | ||
Cash flows from investing activities | ' | ' | ||
Proceeds from maturities of fixed maturities | 7,975 | 5,917 | ||
Proceeds from sales of investments, fixed maturities | 927 | 1,160 | ||
Proceeds from sales of investments, equity securities | 128 | 57 | ||
Proceeds from sales of investments, real estate investments | 5 | ' | ||
Proceeds from sales of investments, other investments | 612 | 545 | ||
Purchases of investments, fixed maturities | -8,237 | -6,492 | ||
Purchases of investments, equity securities | -47 | -50 | ||
Purchases of investments, real estate investments | -41 | -65 | ||
Purchases of investments, other investments | -406 | -312 | ||
Net purchases of short-term securities | -1,163 | -1,893 | ||
Securities transactions in course of settlement | 119 | 280 | ||
Acquisition, net of cash acquired | -12 | ' | ||
Other investing activities | -262 | -254 | ||
Net cash used in investing activities | -402 | -1,107 | ||
Cash flows from financing activities | ' | ' | ||
Payment of debt | ' | -500 | ||
Issuance of debt | ' | 494 | ||
Dividends paid to shareholders | -549 | -549 | ||
Issuance of common stock - employee share options | 154 | 158 | ||
Treasury stock acquired - share repurchase authorization | -2,275 | -1,400 | ||
Treasury stock acquired - net employee share-based compensation | -56 | -60 | ||
Excess tax benefits from share-based payment arrangements | 38 | 43 | ||
Net cash used in financing activities | -2,688 | -1,814 | ||
Effect of exchange rate changes on cash | -5 | -3 | ||
Net increase (decrease) in cash | 73 | -35 | ||
Cash at beginning of year | 294 | 330 | ||
Cash at end of period | 367 | 295 | ||
Supplemental disclosure of cash flow information | ' | ' | ||
Income taxes paid | 785 | 724 | ||
Interest paid | $217 | $206 | ||
[1] | Total other-than-temporary impairment (OTTI) gains (losses) were $(8) million and $0 million for the three months ended September 30, 2014 and 2013, respectively, and $(16) million and $(1) million for the nine months ended September 30, 2014 and 2013, respectively. Of total OTTI, credit losses of $(10) million and $(3) million for the three months ended September 30, 2014 and 2013, respectively, and $(20) million and $(10) million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains from other changes in total OTTI of $2 million and $3 million for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Basis_of_Presentation_and_Acco
Basis of Presentation and Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation and Accounting Policies disclosure | ' |
Basis of Presentation and Accounting Policies disclosure [Text Block] | ' |
1. 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 2013 Annual Report on Form 10-K as updated by the Company’s Form 8-K filed on September 10, 2014. | |
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. | |
On November 1, 2013, the Company acquired all of the issued and outstanding shares of The Dominion of Canada General Insurance Company (Dominion) for an aggregate purchase price of approximately $1.035 billion. Dominion primarily markets personal lines and small commercial insurance business in Canada. At the acquisition date, the Company recorded at fair value $3.91 billion of assets acquired and $2.88 billion of liabilities assumed as part of purchase accounting, including $16 million of identifiable intangible assets and $273 million of goodwill. Dominion is included in the Company’s Business and International Insurance segment. | |
Adoption of Accounting Standards Updates | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date | |
In February 2013, the Financial Accounting Standards Board (FASB) issued updated guidance to resolve diversity in practice concerning the recognition, measurement and disclosure of obligations resulting from certain joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The guidance requires that the reporting entity measure joint and several liability arrangements as the amount the reporting entity agreed to pay on the basis of its arrangement among the co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The updated guidance was effective for the quarter ending March 31, 2014. The adoption of this guidance did not have any effect on the Company’s results of operations, financial position or liquidity. | |
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity | |
In March 2013, the FASB issued updated guidance to resolve diversity in practice concerning the release of the cumulative foreign currency translation adjustment into net income when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. When a company ceases to have a controlling financial interest in a subsidiary within a foreign entity, the company should recognize any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary had resided. Upon the partial sale of an equity method investment that is a foreign entity, the company should release into earnings a pro rata portion of the cumulative translation adjustment. Upon the partial sale of an equity method investment that is not a foreign entity, the company should release into earnings the cumulative translation adjustment if the partial sale represents a complete or substantially complete liquidation of the foreign entity that holds the equity method investment. The updated guidance was effective for the quarter ending March 31, 2014. The adoption of this guidance did not have any effect on the Company’s results of operations, financial position or liquidity. | |
Accounting Standards Not Yet Adopted | |
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |
In April 2014, the FASB issued revised guidance to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for the quarter ending March 31, 2015. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. | |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued updated guidance to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company’s fee income related to providing claims and policy management services as well as claim and loss prevention services will be subject to this updated guidance. | |
The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. | |
The updated guidance is effective for the quarter ending March 31, 2017. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. | |
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | |
In June 2014, the FASB issued updated guidance to resolve diversity in practice concerning employee share-based payments that contain performance targets that could be achieved after the requisite service period. Many reporting entities account for performance targets that could be achieved after the requisite service period as performance conditions that affect the vesting of the award and, therefore, do not reflect the performance targets in the estimate of the grant-date fair value of the award. Other reporting entities treat those performance targets as nonvesting conditions that affect the grant-date fair value of the award. | |
The updated guidance requires that a performance target that affects vesting and that can be achieved after the requisite service period be treated as a performance condition. As such, the performance target that affects vesting should not be reflected in estimating that fair value of the award at the grant date. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which service has been rendered. If the performance target becomes probable of being achieved before the end of the service period, the remaining unrecognized compensation cost for which requisite service has not yet been rendered is recognized prospectively over the remaining service period. The total amount of compensation cost recognized during and after the service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. | |
The updated guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. | |
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when an entity must disclose certain relevant conditions and events. The new guidance requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). The new guidance allows the entity to consider the mitigating effects of management’s plans that will alleviate the substantial doubt and requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans. If conditions or events raise substantial doubt that is not alleviated, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions. | |
The guidance is effective for annual periods ending after December 15, 2016, and interim and annual periods thereafter. | |
Nature of Operations | |
On June 10, 2014, the Company announced a realignment of its management team, effective July 1, 2014, that gave rise to a realignment of two of its three reportable business segments, as follows: | |
· The Company’s International Insurance group, which had previously been included in the Financial, Professional & International Insurance segment, was combined with the Company’s previous Business Insurance segment to create a new Business and International Insurance segment. | |
· The Bond & Financial Products group, which comprised the remaining businesses in the Financial, Professional & International Insurance segment, now comprises the new Bond & Specialty Insurance segment. | |
· The Personal Insurance segment was not impacted by these changes. | |
The realignment of segments described above was made to reflect the realignment of the Company’s senior management responsibilities and the manner in which the Company’s businesses have been managed starting July 1, 2014, and the aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. | |
In connection with these changes, the Company has realigned and revised the names of several businesses that comprise the Business and International Insurance segment. The new reportable business segments are as follows: | |
Business and International Insurance | |
The Business and International Insurance segment offers a broad array of property and casualty insurance and insurance related services to its clients, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world as a corporate member of Lloyd’s. | |
Business and International Insurance is comprised of: Select Accounts; Middle Market; National Accounts; First Party; Specialized Distribution; and International. International includes Dominion, which the Company acquired in November 2013 and which writes personal lines and small commercial insurance business in Canada. | |
International also includes the Company’s 49.5% ownership of the common stock of J. Malucelli Participações em Seguros e Resseguros S.A. (JMalucelli), its joint venture in Brazil. JMalucelli primarily writes surety business in Brazil, as well as other property and casualty insurance business in Brazil. The Company’s investment in JMalucelli is accounted for using the equity method and is included in “other investments” on the consolidated balance sheet. | |
Business and International Insurance also includes the Special Liability Group (which manages the Company’s asbestos and environmental liabilities) and the assumed reinsurance and certain other runoff operations, which are collectively referred to as Business and International Insurance Other. | |
Bond & Specialty Insurance | |
The Bond & Specialty Insurance segment includes surety and financial liability coverages, which primarily use credit-based underwriting processes, and provide a wide range of primarily domestic customers with bond and insurance products and risk management services. | |
Personal Insurance | |
The Personal Insurance segment writes a broad range of property and casualty insurance covering individuals’ personal risks. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Segment Information disclosure | ' | |||||||||||||
Segment Information disclosure [Text Block] | ' | |||||||||||||
2. SEGMENT INFORMATION | ||||||||||||||
The following tables summarize the components of the Company’s revenues, operating income and total assets by reportable business segments: | ||||||||||||||
(for the three months | Business and | Bond & Specialty | Personal | Total | ||||||||||
ended September 30, | International | Insurance | Insurance | Reportable | ||||||||||
in millions) | Insurance | Segments | ||||||||||||
2014 | ||||||||||||||
Premiums | $ | 3,660 | $ | 527 | $ | 1,796 | $ | 5,983 | ||||||
Net investment income | 557 | 64 | 98 | 719 | ||||||||||
Fee income | 110 | — | — | 110 | ||||||||||
Other revenues | 10 | 5 | 19 | 34 | ||||||||||
Total operating revenues (1) | $ | 4,337 | $ | 596 | $ | 1,913 | $ | 6,846 | ||||||
Operating income (1) | $ | 552 | $ | 165 | $ | 239 | $ | 956 | ||||||
2013 | ||||||||||||||
Premiums | $ | 3,325 | $ | 506 | $ | 1,835 | $ | 5,666 | ||||||
Net investment income | 504 | 63 | 90 | 657 | ||||||||||
Fee income | 107 | — | — | 107 | ||||||||||
Other revenues | 8 | 5 | 34 | 47 | ||||||||||
Total operating revenues (1) | $ | 3,944 | $ | 574 | $ | 1,959 | $ | 6,477 | ||||||
Operating income (1) | $ | 566 | $ | 120 | $ | 262 | $ | 948 | ||||||
(1) Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). | ||||||||||||||
(for the nine months | Business and | Bond & Specialty | Personal | Total | ||||||||||
ended September 30, | International | Insurance | Insurance | Reportable | ||||||||||
in millions) | Insurance | Segments | ||||||||||||
2014 | ||||||||||||||
Premiums | $ | 10,849 | $ | 1,554 | $ | 5,331 | $ | 17,734 | ||||||
Net investment income | 1,666 | 192 | 292 | 2,150 | ||||||||||
Fee income | 329 | — | — | 329 | ||||||||||
Other revenues | 32 | 15 | 62 | 109 | ||||||||||
Total operating revenues (1) | $ | 12,876 | $ | 1,761 | $ | 5,685 | $ | 20,322 | ||||||
Operating income (1) | $ | 1,717 | $ | 511 | $ | 582 | $ | 2,810 | ||||||
2013 | ||||||||||||||
Premiums | $ | 9,801 | $ | 1,476 | $ | 5,509 | $ | 16,786 | ||||||
Net investment income | 1,544 | 195 | 275 | 2,014 | ||||||||||
Fee income | 286 | — | — | 286 | ||||||||||
Other revenues | 135 | 15 | 67 | 217 | ||||||||||
Total operating revenues (1) | $ | 11,766 | $ | 1,686 | $ | 5,851 | $ | 19,303 | ||||||
Operating income (1) | $ | 1,773 | $ | 399 | $ | 601 | $ | 2,773 | ||||||
(1) Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). | ||||||||||||||
Business Segment Reconciliations | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Revenue reconciliation | ||||||||||||||
Earned premiums | ||||||||||||||
Business and International Insurance: | ||||||||||||||
Domestic: | ||||||||||||||
Workers’ compensation | $ | 928 | $ | 896 | $ | 2,759 | $ | 2,640 | ||||||
Commercial automobile | 481 | 476 | 1,422 | 1,425 | ||||||||||
Commercial property | 442 | 432 | 1,310 | 1,259 | ||||||||||
General liability | 472 | 452 | 1,376 | 1,333 | ||||||||||
Commercial multi-peril | 774 | 779 | 2,292 | 2,320 | ||||||||||
Other | 10 | 11 | 31 | 29 | ||||||||||
Total Domestic | 3,107 | 3,046 | 9,190 | 9,006 | ||||||||||
International | 553 | 279 | 1,659 | 795 | ||||||||||
Total Business and International Insurance | 3,660 | 3,325 | 10,849 | 9,801 | ||||||||||
Bond & Specialty Insurance: | ||||||||||||||
Fidelity and surety | 240 | 235 | 700 | 683 | ||||||||||
General liability | 243 | 227 | 721 | 661 | ||||||||||
Other | 44 | 44 | 133 | 132 | ||||||||||
Total Bond & Specialty Insurance | 527 | 506 | 1,554 | 1,476 | ||||||||||
Personal Insurance: | ||||||||||||||
Automobile | 835 | 855 | 2,471 | 2,591 | ||||||||||
Homeowners and other | 961 | 980 | 2,860 | 2,918 | ||||||||||
Total Personal Insurance | 1,796 | 1,835 | 5,331 | 5,509 | ||||||||||
Total earned premiums | 5,983 | 5,666 | 17,734 | 16,786 | ||||||||||
Net investment income | 719 | 657 | 2,150 | 2,014 | ||||||||||
Fee income | 110 | 107 | 329 | 286 | ||||||||||
Other revenues | 34 | 47 | 109 | 217 | ||||||||||
Total operating revenues for reportable segments | 6,846 | 6,477 | 20,322 | 19,303 | ||||||||||
Other revenues | — | (3 | ) | — | (4 | ) | ||||||||
Net realized investment gains (losses) | 40 | (22 | ) | 57 | 155 | |||||||||
Total consolidated revenues | $ | 6,886 | $ | 6,452 | $ | 20,379 | $ | 19,454 | ||||||
Income reconciliation, net of tax | ||||||||||||||
Total operating income for reportable segments | $ | 956 | $ | 948 | $ | 2,810 | $ | 2,773 | ||||||
Interest Expense and Other (1) | (63 | ) | (65 | ) | (192 | ) | (187 | ) | ||||||
Total operating income | 893 | 883 | 2,618 | 2,586 | ||||||||||
Net realized investment gains (losses) | 26 | (19 | ) | 36 | 99 | |||||||||
Total consolidated net income | $ | 919 | $ | 864 | $ | 2,654 | $ | 2,685 | ||||||
(1) The primary component of Interest Expense and Other is after-tax interest expense of $60 million and $59 million for the three months ended September 30, 2014 and 2013, respectively, and $180 million and $175 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
(in millions) | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Asset reconciliation: | ||||||||||||||
Business and International Insurance | $ | 83,218 | $ | 82,789 | ||||||||||
Bond & Specialty Insurance | 7,871 | 7,648 | ||||||||||||
Personal Insurance | 12,975 | 12,870 | ||||||||||||
Total assets for reportable segments | 104,064 | 103,307 | ||||||||||||
Other assets (1) | 458 | 505 | ||||||||||||
Total consolidated assets | $ | 104,522 | $ | 103,812 | ||||||||||
(1) The primary components of other assets at both dates were other intangible assets and accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Investments disclosure | ' | |||||||||||||||||||
Investments disclsoure [Text Block] | ' | |||||||||||||||||||
3. 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 September 30, 2014, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 2,050 | $ | 31 | $ | 7 | $ | 2,074 | ||||||||||||
Obligations of states, municipalities and political subdivisions: | ||||||||||||||||||||
Pre-refunded | 7,459 | 348 | — | 7,807 | ||||||||||||||||
All other | 24,787 | 1,336 | 33 | 26,090 | ||||||||||||||||
Total obligations of states, municipalities and political subdivisions | 32,246 | 1,684 | 33 | 33,897 | ||||||||||||||||
Debt securities issued by foreign governments | 2,435 | 34 | 1 | 2,468 | ||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,114 | 167 | 7 | 2,274 | ||||||||||||||||
All other corporate bonds | 22,072 | 828 | 126 | 22,774 | ||||||||||||||||
Redeemable preferred stock | 126 | 9 | — | 135 | ||||||||||||||||
Total | $ | 61,043 | $ | 2,753 | $ | 174 | $ | 63,622 | ||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||||||
(at December 31, 2013, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 2,288 | $ | 39 | $ | 12 | $ | 2,315 | ||||||||||||
Obligations of states, municipalities and political subdivisions: | ||||||||||||||||||||
Pre-refunded | 9,074 | 445 | 1 | 9,518 | ||||||||||||||||
All other | 25,414 | 991 | 361 | 26,044 | ||||||||||||||||
Total obligations of states, municipalities and political subdivisions | 34,488 | 1,436 | 362 | 35,562 | ||||||||||||||||
Debt securities issued by foreign governments | 2,552 | 33 | 8 | 2,577 | ||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,263 | 179 | 18 | 2,424 | ||||||||||||||||
All other corporate bonds | 20,472 | 767 | 299 | 20,940 | ||||||||||||||||
Redeemable preferred stock | 133 | 6 | 1 | 138 | ||||||||||||||||
Total | $ | 62,196 | $ | 2,460 | $ | 700 | $ | 63,956 | ||||||||||||
Pre-refunded bonds of $7.81 billion and $9.52 billion at September 30, 2014 and December 31, 2013, respectively, were bonds for which states or municipalities have established irrevocable trusts, almost exclusively comprised of U.S. Treasury securities, which were created to satisfy their responsibility for payments of principal and interest. | ||||||||||||||||||||
Equity Securities | ||||||||||||||||||||
The cost and fair value of investments in equity securities were as follows: | ||||||||||||||||||||
Gross Unrealized | Fair | |||||||||||||||||||
(at September 30, 2014, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
Public common stock | $ | 396 | $ | 312 | $ | — | $ | 708 | ||||||||||||
Non-redeemable preferred stock | 213 | 30 | 2 | 241 | ||||||||||||||||
Total | $ | 609 | $ | 342 | $ | 2 | $ | 949 | ||||||||||||
Gross Unrealized | Fair | |||||||||||||||||||
(at December 31, 2013, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
Public common stock | $ | 385 | $ | 226 | $ | 1 | $ | 610 | ||||||||||||
Non-redeemable preferred stock | 301 | 34 | 2 | 333 | ||||||||||||||||
Total | $ | 686 | $ | 260 | $ | 3 | $ | 943 | ||||||||||||
Unrealized Investment Losses | ||||||||||||||||||||
The following tables summarize, for all investments in an unrealized loss position at September 30, 2014 and December 31, 2013, 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. | ||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
(at September 30, 2014, in millions) | Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 172 | $ | 2 | $ | 105 | $ | 5 | $ | 277 | $ | 7 | ||||||||
Obligations of states, municipalities and political subdivisions | 1,033 | 1 | 1,736 | 32 | 2,769 | 33 | ||||||||||||||
Debt securities issued by foreign governments | 226 | — | 143 | 1 | 369 | 1 | ||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 157 | 1 | 257 | 6 | 414 | 7 | ||||||||||||||
All other corporate bonds | 3,161 | 34 | 2,658 | 92 | 5,819 | 126 | ||||||||||||||
Total fixed maturities | 4,749 | 38 | 4,899 | 136 | 9,648 | 174 | ||||||||||||||
Equity securities | ||||||||||||||||||||
Public common stock | 36 | — | 1 | — | 37 | — | ||||||||||||||
Non-redeemable preferred stock | 108 | 2 | — | — | 108 | 2 | ||||||||||||||
Total equity securities | 144 | 2 | 1 | — | 145 | 2 | ||||||||||||||
Total | $ | 4,893 | $ | 40 | $ | 4,900 | $ | 136 | $ | 9,793 | $ | 176 | ||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
(at December 31, 2013, in millions) | Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 433 | $ | 12 | $ | — | $ | — | $ | 433 | $ | 12 | ||||||||
Obligations of states, municipalities and political subdivisions | 4,785 | 298 | 432 | 64 | 5,217 | 362 | ||||||||||||||
Debt securities issued by foreign governments | 907 | 8 | 1 | — | 908 | 8 | ||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 542 | 17 | 21 | 1 | 563 | 18 | ||||||||||||||
All other corporate bonds | 6,887 | 253 | 421 | 46 | 7,308 | 299 | ||||||||||||||
Redeemable preferred stock | 82 | 1 | — | — | 82 | 1 | ||||||||||||||
Total fixed maturities | 13,636 | 589 | 875 | 111 | 14,511 | 700 | ||||||||||||||
Equity securities | ||||||||||||||||||||
Public common stock | 53 | 1 | — | — | 53 | 1 | ||||||||||||||
Non-redeemable preferred stock | 147 | 2 | — | — | 147 | 2 | ||||||||||||||
Total equity securities | 200 | 3 | — | — | 200 | 3 | ||||||||||||||
Total | $ | 13,836 | $ | 592 | $ | 875 | $ | 111 | $ | 14,711 | $ | 703 | ||||||||
The following table summarizes, for all fixed maturities and equity securities reported at fair value for which fair value is less than 80% of amortized cost at September 30, 2014, the gross unrealized investment loss by length of time those securities have continuously been in an unrealized loss position of greater than 20% of amortized cost: | ||||||||||||||||||||
Period For Which Fair Value Is Less Than 80% of Amortized Cost | ||||||||||||||||||||
(at September 30, 2014, in millions) | 3 Months | Greater Than 3 | Greater Than 6 | Greater Than | Total | |||||||||||||||
or Less | Months, 6 Months | Months, 12 Months | 12 Months | |||||||||||||||||
or Less | or Less | |||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Other | — | — | 2 | 2 | 4 | |||||||||||||||
Total fixed maturities | — | — | 2 | 2 | 4 | |||||||||||||||
Equity securities | — | — | — | — | — | |||||||||||||||
Total | $ | — | $ | — | $ | 2 | $ | 2 | $ | 4 | ||||||||||
These unrealized losses at September 30, 2014 represented less than 1% of the combined fixed maturity and equity security portfolios on a pretax basis and less than 1% of shareholders’ equity on an after-tax basis. | ||||||||||||||||||||
Impairment Charges | ||||||||||||||||||||
Impairment charges included in net realized investment gains (losses) in the consolidated statement of income were as follows: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Obligations of states, municipalities and political subdivisions | — | — | — | — | ||||||||||||||||
Debt securities issued by foreign governments | — | — | — | — | ||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | — | — | 1 | 2 | ||||||||||||||||
All other corporate bonds | 9 | — | 12 | — | ||||||||||||||||
Redeemable preferred stock | — | — | — | — | ||||||||||||||||
Total fixed maturities | 9 | — | 13 | 2 | ||||||||||||||||
Equity securities | ||||||||||||||||||||
Public common stock | 1 | 2 | 6 | 3 | ||||||||||||||||
Non-redeemable preferred stock | — | — | — | — | ||||||||||||||||
Total equity securities | 1 | 2 | 6 | 3 | ||||||||||||||||
Other investments | — | 1 | 1 | 5 | ||||||||||||||||
Total | $ | 10 | $ | 3 | $ | 20 | $ | 10 | ||||||||||||
The following tables present the cumulative amount of and the changes during the reporting period in the credit losses 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: | ||||||||||||||||||||
2014 | ||||||||||||||||||||
(for the three months ended September 30, in | Cumulative | Additions for | Additions for | Reductions | Adjustments to | Cumulative | ||||||||||||||
millions) | OTTI Credit | OTTI Securities | OTTI | Due to | Book Value of | OTTI Credit | ||||||||||||||
Losses | Where No | Securities | Sales/Defaults | Credit- | Losses | |||||||||||||||
Recognized for | Credit Losses | Where Credit | of Credit- | Impaired | Recognized for | |||||||||||||||
Securities | Were Previously | Losses Have | Impaired | Securities due | Securities Still | |||||||||||||||
Held, | Recognized | Been | Securities | to Changes in | Held, End of | |||||||||||||||
Beginning of | Previously | Cash Flows | Period | |||||||||||||||||
Period | Recognized | |||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 43 | $ | — | $ | — | $ | — | $ | 1 | $ | 44 | ||||||||
All other corporate bonds | 66 | — | — | (5 | ) | — | 61 | |||||||||||||
Total fixed maturities | $ | 109 | $ | — | $ | — | $ | (5 | ) | $ | 1 | $ | 105 | |||||||
(for the nine months ended September 30, in | ||||||||||||||||||||
millions) | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 53 | $ | — | $ | 1 | $ | (3 | ) | $ | (7 | ) | $ | 44 | ||||||
All other corporate bonds | 65 | — | 3 | (5 | ) | (2 | ) | 61 | ||||||||||||
Total fixed maturities | $ | 118 | $ | — | $ | 4 | $ | (8 | ) | $ | (9 | ) | $ | 105 | ||||||
2013 | ||||||||||||||||||||
(for the three months ended September 30, in | Cumulative | Additions for | Additions for | Reductions | Adjustments to | Cumulative | ||||||||||||||
millions) | OTTI Credit | OTTI Securities | OTTI | Due to | Book Value of | OTTI Credit | ||||||||||||||
Losses | Where No | Securities | Sales/Defaults | Credit- | Losses | |||||||||||||||
Recognized for | Credit Losses | Where Credit | of Credit- | Impaired | Recognized for | |||||||||||||||
Securities | Were Previously | Losses Have | Impaired | Securities due | Securities Still | |||||||||||||||
Held, | Recognized | Been | Securities | to Changes in | Held, End of | |||||||||||||||
Beginning of | Previously | Cash Flows | Period | |||||||||||||||||
Period | Recognized | |||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 55 | $ | — | $ | — | $ | — | $ | (2 | ) | $ | 53 | |||||||
All other corporate bonds | 70 | — | — | — | (1 | ) | 69 | |||||||||||||
Total fixed maturities | $ | 125 | $ | — | $ | — | $ | — | $ | (3 | ) | $ | 122 | |||||||
(for the nine months ended September 30, in | ||||||||||||||||||||
millions) | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 55 | $ | — | $ | 2 | $ | — | $ | (4 | ) | $ | 53 | |||||||
All other corporate bonds | 72 | — | — | — | (3 | ) | 69 | |||||||||||||
Total fixed maturities | $ | 127 | $ | — | $ | 2 | $ | — | $ | (7 | ) | $ | 122 | |||||||
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 September 30, 2014 and December 31, 2013, the Company had $100 million and $0 notional value of open U.S. Treasury futures contracts, respectively. Net realized investment gains (losses) in both the three months ended September 30, 2014 and 2013 included net losses of approximately $0 million related to U.S. Treasury futures contracts. Net realized investment gains (losses) in the nine months ended September 30, 2014 and 2013 included net losses of $0.3 million and net gains of $115 million, respectively, related to U.S. Treasury futures contracts. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Measurements disclosure | ' | ||||||||||||||||
Fair Value Measurements disclosure [Text Block] | ' | ||||||||||||||||
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 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 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 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 unadjusted quoted market prices as fair value and includes these prices in the amounts disclosed in Level 1 of the hierarchy. The Company receives the quoted market prices from third party, nationally recognized pricing services. When quoted market prices are unavailable, the Company utilizes these pricing services to determine an estimate of fair value. The fair value estimates provided from these pricing services are included in the amount disclosed in Level 2 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 observable market inputs, will render the fair value estimate as Level 2 or Level 3. The Company bases all of its estimates of fair value for assets on the bid price as it represents what a third-party market participant would be willing to pay in an arm’s length transaction. | |||||||||||||||||
Fixed Maturities | |||||||||||||||||
The Company utilized a pricing service to estimate fair value measurements for approximately 98% of its fixed maturities at both September 30, 2014 and December 31, 2013. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturities other than U.S. Treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, the pricing service uses an Option Adjusted Spread model to develop prepayment and interest rate scenarios. | |||||||||||||||||
The pricing service evaluates each asset class based on relevant market information, relevant credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary. | |||||||||||||||||
The pricing service utilized by the Company has indicated that it will only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If the pricing service discontinues pricing an investment, the Company would be required to produce an estimate of fair value using some of the same methodologies as the pricing service but would have to make assumptions for any market-based inputs that were unavailable due to market conditions. | |||||||||||||||||
The fair value estimates of most fixed maturity investments are based on observable market information rather than market quotes. Accordingly, the estimates of fair value for such fixed maturities, other than U.S. Treasury securities, provided by the pricing service are included in the amount disclosed in Level 2 of the hierarchy. The estimated fair value of U.S. Treasury securities is included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices. | |||||||||||||||||
The Company also holds certain fixed maturity investments which are not priced by the pricing service and, accordingly, estimates the fair value of such fixed maturities using an internal matrix that is based on market information regarding interest rates, credit spreads and liquidity. The underlying source data for calculating the matrix of credit spreads relative to the U.S. Treasury curve are the BofA Merrill Lynch U.S. Corporate Index and the BofA Merrill Lynch High Yield BB Rated Index. The Company includes the fair value estimates of these corporate bonds in Level 2, since all significant inputs are market observable. | |||||||||||||||||
While the vast majority of the Company’s municipal bonds and corporate bonds 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 $133 million and $94 million at September 30, 2014 and December 31, 2013, 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 $134 million and $161 million at September 30, 2014 and December 31, 2013, 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. | |||||||||||||||||
Equity Securities — Public Common Stock and Non-Redeemable Preferred Stock | |||||||||||||||||
For public common stock and non-redeemable preferred stocks, the Company receives prices from pricing services that are based on observable market transactions and includes these estimates in the amount disclosed in Level 1. When current market quotes in active markets are unavailable for certain non-redeemable preferred stocks held by the Company, the Company receives an estimate of fair value from the pricing services. The services utilize similar methodologies to price the non-redeemable preferred stocks as they do for the fixed maturities. The Company includes the fair value estimate for these non-redeemable preferred stocks in the amount disclosed in Level 2. | |||||||||||||||||
Other Investments | |||||||||||||||||
The Company holds investments in various publicly-traded securities which are reported in other investments. These investments include mutual funds and other small holdings. The $19 million fair value of these investments at both September 30, 2014 and December 31, 2013 was disclosed in Level 1. At September 30, 2014 and December 31, 2013, the Company held investments in non-public common and preferred equity securities, with fair value estimates of $37 million and $34 million, respectively, reported in other investments, where the fair value estimate is determined either internally or by an external fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the Company includes the total fair value estimate for all of these investments at September 30, 2014 and December 31, 2013 in the amount disclosed in Level 3. | |||||||||||||||||
Derivatives | |||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company held $9 million and $8 million, respectively, of convertible bonds containing embedded conversion options that are valued separately from the host bond contract in the amount disclosed in Level 2 — fixed maturities. | |||||||||||||||||
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 at September 30, 2014 and December 31, 2013. An investment transferred between levels during a period is transferred at its fair value as of the beginning of that period. | |||||||||||||||||
(at September 30, 2014, 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 | $ | 2,074 | $ | 2,062 | $ | 12 | $ | — | |||||||||
Obligations of states, municipalities and political subdivisions | 33,897 | 24 | 33,860 | 13 | |||||||||||||
Debt securities issued by foreign governments | 2,468 | 9 | 2,459 | — | |||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,274 | — | 2,274 | — | |||||||||||||
All other corporate bonds | 22,774 | 17 | 22,511 | 246 | |||||||||||||
Redeemable preferred stock | 135 | 5 | 122 | 8 | |||||||||||||
Total fixed maturities | 63,622 | 2,117 | 61,238 | 267 | |||||||||||||
Equity securities | |||||||||||||||||
Public common stock | 708 | 708 | — | — | |||||||||||||
Non-redeemable preferred stock | 241 | 93 | 148 | — | |||||||||||||
Total equity securities | 949 | 801 | 148 | — | |||||||||||||
Other investments | 56 | 19 | — | 37 | |||||||||||||
Total | $ | 64,627 | $ | 2,937 | $ | 61,386 | $ | 304 | |||||||||
During the nine months ended September 30, 2014, the Company had transfers of $1 million of obligations of states, municipalities and political subdivisions from Level 1 to Level 2. In addition, the Company had transfers of $10 million of non-redeemable preferred stock and $5 million of redeemable preferred stock from Level 2 to Level 1. | |||||||||||||||||
(at December 31, 2013, 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 | $ | 2,315 | $ | 2,298 | $ | 17 | $ | — | |||||||||
Obligations of states, municipalities and political subdivisions | 35,562 | 1 | 35,538 | 23 | |||||||||||||
Debt securities issued by foreign governments | 2,577 | — | 2,577 | — | |||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,424 | — | 2,415 | 9 | |||||||||||||
All other corporate bonds | 20,940 | — | 20,726 | 214 | |||||||||||||
Redeemable preferred stock | 138 | — | 129 | 9 | |||||||||||||
Total fixed maturities | 63,956 | 2,299 | 61,402 | 255 | |||||||||||||
Equity securities | |||||||||||||||||
Public common stock | 610 | 610 | — | — | |||||||||||||
Non-redeemable preferred stock | 333 | 138 | 195 | — | |||||||||||||
Total equity securities | 943 | 748 | 195 | — | |||||||||||||
Other investments | 53 | 19 | — | 34 | |||||||||||||
Total | $ | 64,952 | $ | 3,066 | $ | 61,597 | $ | 289 | |||||||||
During the year ended December 31, 2013, the Company had transfers of $31 million of redeemable preferred stock and $54 million of non-redeemable preferred stock from Level 1 to Level 2. | |||||||||||||||||
The following tables present the changes in the Level 3 fair value category during the three months and nine months ended September 30, 2014 and the twelve months ended December 31, 2013. | |||||||||||||||||
Three Months Ended September 30, 2014 (in millions) | Fixed | Other | Total | ||||||||||||||
Maturities | Investments | ||||||||||||||||
Balance at June 30, 2014 | $ | 264 | $ | 36 | $ | 300 | |||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||
Reported in net realized investment gains (losses) (1) | 1 | — | 1 | ||||||||||||||
Reported in increases (decreases) in other comprehensive income | (2 | ) | 1 | (1 | ) | ||||||||||||
Purchases, sales and settlements/maturities: | |||||||||||||||||
Purchases | 74 | — | 74 | ||||||||||||||
Sales | — | — | — | ||||||||||||||
Settlements/maturities | (13 | ) | — | (13 | ) | ||||||||||||
Gross transfers into Level 3 | 8 | — | 8 | ||||||||||||||
Gross transfers out of Level 3 | (65 | ) | — | (65 | ) | ||||||||||||
Balance at September 30, 2014 | $ | 267 | $ | 37 | $ | 304 | |||||||||||
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | $ | — | $ | — | $ | — | |||||||||||
(1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. | |||||||||||||||||
Nine Months Ended September 30, 2014 (in millions) | Fixed | Other | Total | ||||||||||||||
Maturities | Investments | ||||||||||||||||
Balance at December 31, 2013 | $ | 255 | $ | 34 | $ | 289 | |||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||
Reported in net realized investment gains (losses) (1) | 3 | 1 | 4 | ||||||||||||||
Reported in increases (decreases) in other comprehensive income | (2 | ) | 1 | (1 | ) | ||||||||||||
Purchases, sales and settlements/maturities: | |||||||||||||||||
Purchases | 216 | 1 | 217 | ||||||||||||||
Sales | (1 | ) | — | (1 | ) | ||||||||||||
Settlements/maturities | (73 | ) | — | (73 | ) | ||||||||||||
Gross transfers into Level 3 | 8 | — | 8 | ||||||||||||||
Gross transfers out of Level 3 | (139 | ) | — | (139 | ) | ||||||||||||
Balance at September 30, 2014 | $ | 267 | $ | 37 | $ | 304 | |||||||||||
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | $ | — | $ | — | $ | — | |||||||||||
(1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. | |||||||||||||||||
Twelve Months Ended December 31, 2013 (in millions) | Fixed | Other | Total | ||||||||||||||
Maturities | Investments | ||||||||||||||||
Balance at December 31, 2012 | $ | 230 | $ | 54 | $ | 284 | |||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||
Reported in net realized investment gains (1) | 4 | 12 | 16 | ||||||||||||||
Reported in increases (decreases) in other comprehensive income | (2 | ) | 1 | (1 | ) | ||||||||||||
Purchases, sales and settlements/maturities: | |||||||||||||||||
Purchases | 180 | — | 180 | ||||||||||||||
Sales | (25 | ) | (33 | ) | (58 | ) | |||||||||||
Settlements/maturities | (83 | ) | — | (83 | ) | ||||||||||||
Gross transfers into Level 3 | 15 | — | 15 | ||||||||||||||
Gross transfers out of Level 3 | (64 | ) | — | (64 | ) | ||||||||||||
Balance at December 31, 2013 | $ | 255 | $ | 34 | $ | 289 | |||||||||||
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | $ | — | $ | — | $ | — | |||||||||||
(1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. | |||||||||||||||||
Financial Instruments Disclosed, But Not Carried, At Fair Value | |||||||||||||||||
The Company uses various financial instruments in the normal course of its business. The Company’s insurance contracts are excluded from fair value of financial instruments accounting guidance and, therefore, are not included in the amounts discussed below. 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 at September 30, 2014 and December 31, 2013, and the level within the fair value hierarchy at which such assets and liabilities are measured on a recurring basis. | |||||||||||||||||
(at September 30, 2014, in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||
Value | Value | ||||||||||||||||
Financial assets: | |||||||||||||||||
Short-term securities | $ | 5,033 | $ | 5,033 | $ | 1,265 | $ | 3,719 | $ | 49 | |||||||
Financial liabilities: | |||||||||||||||||
Debt | $ | 6,248 | $ | 7,390 | $ | — | $ | 7,390 | $ | — | |||||||
Commercial paper | $ | 100 | $ | 100 | $ | — | $ | 100 | $ | — | |||||||
(at December 31, 2013, in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||
Value | Value | ||||||||||||||||
Financial assets: | |||||||||||||||||
Short-term securities | $ | 3,882 | $ | 3,882 | $ | 1,608 | $ | 2,215 | $ | 59 | |||||||
Financial liabilities: | |||||||||||||||||
Debt | $ | 6,246 | $ | 7,123 | $ | — | $ | 7,123 | $ | — | |||||||
Commercial paper | $ | 100 | $ | 100 | $ | — | $ | 100 | $ | — | |||||||
The Company utilized a pricing service to estimate fair value for approximately 98% and 97% of short-term securities at September 30, 2014 and December 31, 2013, respectively. A description of the process and inputs used by the pricing service to estimate fair value is discussed in the “Fixed Maturities” section above. Estimates of fair value for U.S. Treasury securities and money market funds are based on market quotations received from the pricing service and are disclosed in Level 1 of the hierarchy. The fair value of other short-term fixed maturity securities is estimated by the pricing service using observable market inputs and is disclosed in Level 2 of the hierarchy. For short-term securities where an estimate is not obtained from the pricing service, the carrying value approximates fair value and is included in Level 3 of the hierarchy. | |||||||||||||||||
The Company utilized a pricing service to estimate fair value for 100% of its debt, including commercial paper, at both September 30, 2014 and December 31, 2013. The pricing service utilizes market quotations for debt that have quoted prices in active markets. Since fixed maturities other than U.S. Treasury securities generally do not trade on a daily basis, the fair value estimates are based on market observable inputs and disclosed in Level 2 of the hierarchy. | |||||||||||||||||
The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the nine months ended September 30, 2014 or twelve months ended December 31, 2013. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Goodwill and Other Intangible Assets disclosure | ' | |||||||||||||
Goodwill and Other Intangible Assets disclosure [Text Block] | ' | |||||||||||||
5. GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||
Goodwill | ||||||||||||||
The following table presents the carrying amount of the Company’s goodwill by segment at September 30, 2014 and December 31, 2013: | ||||||||||||||
(in millions) | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Business and International Insurance (1) | $ | 2,486 | $ | 2,499 | ||||||||||
Bond & Specialty Insurance | 495 | 495 | ||||||||||||
Personal Insurance | 613 | 613 | ||||||||||||
Other | 27 | 27 | ||||||||||||
Total | $ | 3,621 | $ | 3,634 | ||||||||||
(1) Includes goodwill associated with the Company’s acquisition of Dominion in 2013, which is subject to the impact of changes in foreign currency exchange rates. | ||||||||||||||
Other Intangible Assets | ||||||||||||||
The following presents a summary of the Company’s other intangible assets by major asset class at September 30, 2014 and December 31, 2013: | ||||||||||||||
(at September 30, 2014, in millions) | Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | |||||||||||||
Amount | ||||||||||||||
Intangibles subject to amortization | ||||||||||||||
Customer-related | $ | 460 | $ | 438 | $ | 22 | ||||||||
Fair value adjustment on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangibles (1) | 209 | 132 | 77 | |||||||||||
Total intangible assets subject to amortization | 669 | 570 | 99 | |||||||||||
Intangible assets not subject to amortization | 217 | — | 217 | |||||||||||
Total other intangible assets | $ | 886 | $ | 570 | $ | 316 | ||||||||
(at December 31, 2013, in millions) | Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | |||||||||||||
Amount | ||||||||||||||
Intangibles subject to amortization | ||||||||||||||
Customer-related | $ | 460 | $ | 414 | $ | 46 | ||||||||
Fair value adjustment on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangibles (1) | 201 | 113 | 88 | |||||||||||
Total intangible assets subject to amortization | 661 | 527 | 134 | |||||||||||
Intangible assets not subject to amortization | 217 | — | 217 | |||||||||||
Total other intangible assets | $ | 878 | $ | 527 | $ | 351 | ||||||||
(1) The time value of money and the risk margin (cost of capital) components of the intangible asset run off at different rates, and, as such, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. | ||||||||||||||
The following presents a summary of the Company’s amortization expense for other intangible assets by major asset class: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Customer-related | $ | 8 | $ | 8 | $ | 24 | $ | 23 | ||||||
Fair value adjustment on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangibles | 4 | 3 | 11 | 11 | ||||||||||
Total amortization expense | $ | 12 | $ | 11 | $ | 35 | $ | 34 | ||||||
Intangible asset amortization expense is estimated to be $12 million for the remainder of 2014, $26 million in 2015, $10 million in 2016, $9 million in 2017 and $8 million in 2018. |
Other_Comprehensive_Income_and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure | ' | ||||||||||||||||
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure [Text Block] | ' | ||||||||||||||||
6. OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
The following table presents the changes in the Company’s accumulated other comprehensive income (AOCI) for the nine months ended September 30, 2014. | |||||||||||||||||
(in millions) | Changes in Net | Changes in Net | Net Benefit Plan | Net Unrealized | Total Accumulated | ||||||||||||
Unrealized Gains on | Unrealized Gains on | Assets and | Foreign Currency | Other | |||||||||||||
Investment | Investment Securities | Obligations | Translation | Comprehensive | |||||||||||||
Securities Having No | Having Credit Losses | Recognized in | Income | ||||||||||||||
Credit Losses | Recognized in the | Shareholders’ Equity | |||||||||||||||
Recognized in the | Consolidated | ||||||||||||||||
Consolidated | Statement of Income | ||||||||||||||||
Statement of Income | |||||||||||||||||
Balance, December 31, 2013 | $ | 1,125 | $ | 197 | $ | (431 | ) | $ | (81 | ) | $ | 810 | |||||
Other comprehensive income (OCI) before reclassifications | 610 | — | — | (130 | ) | 480 | |||||||||||
Amounts reclassified from AOCI | (20 | ) | 2 | 28 | — | 10 | |||||||||||
Net OCI, current period | 590 | 2 | 28 | (130 | ) | 490 | |||||||||||
Balance, September 30, 2014 | $ | 1,715 | $ | 199 | $ | (403 | ) | $ | (211 | ) | $ | 1,300 | |||||
The following tables present the pretax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit) for the three months and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
(for the three months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | $ | (154 | ) | $ | (204 | ) | |||||||||||
Income tax benefit | (55 | ) | (72 | ) | |||||||||||||
Net of taxes | (99 | ) | (132 | ) | |||||||||||||
Having credit losses recognized in the consolidated statement of income | 1 | (2 | ) | ||||||||||||||
Income tax expense (benefit) | 1 | (1 | ) | ||||||||||||||
Net of taxes | — | (1 | ) | ||||||||||||||
Net changes in benefit plan assets and obligations | 15 | 24 | |||||||||||||||
Income tax expense | 5 | 9 | |||||||||||||||
Net of taxes | 10 | 15 | |||||||||||||||
Net changes in unrealized foreign currency translation | (203 | ) | 112 | ||||||||||||||
Income tax expense (benefit) | (30 | ) | 9 | ||||||||||||||
Net of taxes | (173 | ) | 103 | ||||||||||||||
Total other comprehensive loss | (341 | ) | (70 | ) | |||||||||||||
Total income tax benefit | (79 | ) | (55 | ) | |||||||||||||
Total other comprehensive loss, net of taxes | $ | (262 | ) | $ | (15 | ) | |||||||||||
(for the nine months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | $ | 901 | $ | (2,370 | ) | ||||||||||||
Income tax expense (benefit) | 311 | (824 | ) | ||||||||||||||
Net of taxes | 590 | (1,546 | ) | ||||||||||||||
Having credit losses recognized in the consolidated statement of income | 4 | 2 | |||||||||||||||
Income tax expense | 2 | — | |||||||||||||||
Net of taxes | 2 | 2 | |||||||||||||||
Net changes in benefit plan assets and obligations | 45 | 78 | |||||||||||||||
Income tax expense | 17 | 28 | |||||||||||||||
Net of taxes | 28 | 50 | |||||||||||||||
Net changes in unrealized foreign currency translation | (149 | ) | (57 | ) | |||||||||||||
Income tax benefit | (19 | ) | (20 | ) | |||||||||||||
Net of taxes | (130 | ) | (37 | ) | |||||||||||||
Total other comprehensive income (loss) | 801 | (2,347 | ) | ||||||||||||||
Total income tax expense (benefit) | 311 | (816 | ) | ||||||||||||||
Total other comprehensive income (loss), net of taxes | $ | 490 | $ | (1,531 | ) | ||||||||||||
The following tables present the pretax and related income tax expense (benefit) components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income for the three months and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
(for the three months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Reclassification adjustments related to unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income (1) | $ | (1 | ) | $ | (4 | ) | |||||||||||
Income tax expense (2) | — | (1 | ) | ||||||||||||||
Net of taxes | (1 | ) | (3 | ) | |||||||||||||
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 (3) | 15 | 26 | |||||||||||||||
Income tax benefit (2) | 5 | 9 | |||||||||||||||
Net of taxes | 10 | 17 | |||||||||||||||
Reclassification adjustment related to foreign currency translation (1) | — | 11 | |||||||||||||||
Income tax benefit (2) | — | — | |||||||||||||||
Net of taxes | — | 11 | |||||||||||||||
Total reclassifications | 14 | 33 | |||||||||||||||
Total income tax benefit | 5 | 8 | |||||||||||||||
Total reclassifications, net of taxes | $ | 9 | $ | 25 | |||||||||||||
(1) (Increases) decreases net realized investment gains (losses) on the consolidated statement of income. | |||||||||||||||||
(2) (Increases) decreases income tax expense on the consolidated statement of income. | |||||||||||||||||
(3) Increases (decreases) general and administrative expenses on the consolidated statement of income. | |||||||||||||||||
(for the nine months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Reclassification adjustments related to unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income (1) | $ | (30 | ) | $ | (55 | ) | |||||||||||
Income tax expense (2) | (10 | ) | (19 | ) | |||||||||||||
Net of taxes | (20 | ) | (36 | ) | |||||||||||||
Having credit losses recognized in the consolidated statement of income (1) | 4 | 2 | |||||||||||||||
Income tax benefit (2) | 2 | 1 | |||||||||||||||
Net of taxes | 2 | 1 | |||||||||||||||
Reclassification adjustment related to benefit plan assets and obligations (3) | 45 | 78 | |||||||||||||||
Income tax benefit (2) | 17 | 27 | |||||||||||||||
Net of taxes | 28 | 51 | |||||||||||||||
Reclassification adjustment related to foreign currency translation (1) | — | 8 | |||||||||||||||
Income tax benefit (2) | — | — | |||||||||||||||
Net of taxes | — | 8 | |||||||||||||||
Total reclassifications | 19 | 33 | |||||||||||||||
Total income tax benefit | 9 | 9 | |||||||||||||||
Total reclassifications, net of taxes | $ | 10 | $ | 24 | |||||||||||||
(1) (Increases) decreases net realized investment gains (losses) on the consolidated statement of income. | |||||||||||||||||
(2) (Increases) decreases income tax expense on the consolidated statement of income. | |||||||||||||||||
(3) Increases (decreases) general and administrative expenses on the consolidated statement of income. | |||||||||||||||||
Common_Share_Repurchases
Common Share Repurchases | 9 Months Ended |
Sep. 30, 2014 | |
Common Share Repurchases disclosure | ' |
Common Share Repurchases disclosure [Text Block] | ' |
7. COMMON SHARE REPURCHASES | |
During the three months and nine months ended September 30, 2014, the Company repurchased 8.1 million and 25.4 million shares, respectively, under its share repurchase authorization, for a total cost of $750 million and $2.28 billion, respectively. The average cost per share repurchased was $92.47 and $89.61, respectively. At September 30, 2014, the Company had $2.48 billion of capacity remaining under the share repurchase authorization. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings per Share disclosure | ' | |||||||||||||
Earnings per Share disclosure [Text Block] | ' | |||||||||||||
8. 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 | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Basic and Diluted | ||||||||||||||
Net income, as reported | $ | 919 | $ | 864 | $ | 2,654 | $ | 2,685 | ||||||
Participating share-based awards — allocated income | (7 | ) | (6 | ) | (19 | ) | (20 | ) | ||||||
Net income available to common shareholders — basic and diluted | $ | 912 | $ | 858 | $ | 2,635 | $ | 2,665 | ||||||
Common Shares | ||||||||||||||
Basic | ||||||||||||||
Weighted average shares outstanding | 335.1 | 368.9 | 342.9 | 374.1 | ||||||||||
Diluted | ||||||||||||||
Weighted average shares outstanding | 335.1 | 368.9 | 342.9 | 374.1 | ||||||||||
Weighted average effects of dilutive securities — stock options and performance shares | 3.8 | 4 | 3.6 | 4 | ||||||||||
Total | 338.9 | 372.9 | 346.5 | 378.1 | ||||||||||
Net Income per Common Share | ||||||||||||||
Basic | $ | 2.72 | $ | 2.33 | $ | 7.68 | $ | 7.12 | ||||||
Diluted | $ | 2.69 | $ | 2.3 | $ | 7.6 | $ | 7.05 | ||||||
ShareBased_Incentive_Compensat
Share-Based Incentive Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Share-Based Incentive Compensation disclosure | ' | |||||||||||
Share-Based Incentive Compensation disclosure [Text Block] | ' | |||||||||||
9. SHARE-BASED INCENTIVE COMPENSATION | ||||||||||||
The following information relates to fully vested stock option awards at September 30, 2014: | ||||||||||||
Stock Options | Number | Weighted | Weighted | Aggregate | ||||||||
Average | Average | Intrinsic | ||||||||||
Exercise | Contractual | Value | ||||||||||
Price | Life | ($ in millions) | ||||||||||
Remaining | ||||||||||||
Vested at end of period (1) | 7,597,990 | $ | 58.48 | 6.0 years | $ | 269 | ||||||
Exercisable at end of period | 4,775,291 | $ | 50.4 | 4.6 years | $ | 208 | ||||||
(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 $31 million and $29 million for the three months ended September 30, 2014 and 2013, respectively, and $106 million and $99 million for the nine months ended September 30, 2014 and 2013, respectively. The related tax benefits recognized in the consolidated statement of income were $10 million for the each of the three months ended September 30, 2014 and 2013, and $36 million and $34 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||
The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at September 30, 2014 was $151 million, which is expected to be recognized over a weighted-average period of 1.8 years. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at December 31, 2013 was $120 million, which was expected to be recognized over a weighted-average period of 1.7 years. | ||||||||||||
In February 2014, the Company’s board of directors approved The Travelers Companies, Inc. 2014 Stock Incentive Plan (2014 Incentive Plan) to replace, effective with shareholder approval, the Amended and Restated 2004 Stock Incentive Plan (2004 Incentive Plan), which was scheduled to expire in July 2014. At the Company’s 2014 Annual Meeting of Shareholders on May 27, 2014, the shareholders approved the 2014 Incentive Plan. Accordingly, the 2014 Incentive Plan became effective on that date, and no further awards will be made under the 2004 Incentive Plan. The 2014 Incentive Plan has substantially the same terms, other than the number of shares available, as the 2004 Incentive Plan and is effective through February 5, 2024. The number of shares initially available for issuance under the 2014 Incentive Plan was 10,000,000 shares of common stock. Shares of common stock subject to an award granted under the 2014 Incentive Plan or the prior 2004 Incentive Plan that expire unexercised, are forfeited, terminated or canceled and that do not result in the issuance of common stock, will be available for grant under the 2014 Incentive Plan. |
Pension_Plans_Retirement_Benef
Pension Plans, Retirement Benefits and Savings Plans | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Pension Plans, Retirement Benefits and Savings Plans disclosure | ' | |||||||||||||
Pension Plans, Retirement Benefits and Savings Plans disclosure [Text Block] | ' | |||||||||||||
10. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS | ||||||||||||||
The following tables summarize 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 September 30, in | Pension Plans | Postretirement Benefit Plans | ||||||||||||
millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 27 | $ | 30 | $ | — | $ | — | ||||||
Interest cost on benefit obligation | 38 | 33 | 3 | 3 | ||||||||||
Expected return on plan assets | (55 | ) | (52 | ) | — | — | ||||||||
Amortization of unrecognized: | ||||||||||||||
Prior service benefit | — | — | (1 | ) | (1 | ) | ||||||||
Net actuarial (gain) loss | 17 | 27 | (1 | ) | — | |||||||||
Net periodic benefit cost | $ | 27 | $ | 38 | $ | 1 | $ | 2 | ||||||
(for the nine months ended September 30, in | Pension Plans | Postretirement Benefit Plans | ||||||||||||
millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 82 | $ | 89 | $ | — | $ | — | ||||||
Interest cost on benefit obligation | 113 | 99 | 8 | 7 | ||||||||||
Expected return on plan assets | (164 | ) | (156 | ) | — | — | ||||||||
Amortization of unrecognized: | ||||||||||||||
Prior service benefit | — | — | (2 | ) | (2 | ) | ||||||||
Net actuarial (gain) loss | 49 | 80 | (2 | ) | — | |||||||||
Net periodic benefit cost | $ | 80 | $ | 112 | $ | 4 | $ | 5 |
Contingencies_Commitments_and_
Contingencies, Commitments and Guarantees | 9 Months Ended |
Sep. 30, 2014 | |
Contingencies, Commitments and Guarantees disclosure | ' |
Contingencies, Commitments and Guarantees disclosure [Text Block] | ' |
11. 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-Related Proceedings | |
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, including, among others, the litigation described below. | |
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 aggressive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. | |
Asbestos Direct Action Litigation — In October 2001 and April 2002, two purported class action suits (Wise v. Travelers and Meninger v. Travelers) were filed against Travelers Property Casualty Corp. (TPC), a wholly-owned subsidiary of the Company, and other insurers (not including The St. Paul Companies, Inc. (SPC), which was acquired by TPC in 2004) 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 alleged that the insurer defendants engaged in unfair trade practices in violation of state statutes by inappropriately handling and settling asbestos claims. The plaintiffs sought 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 sought damages, including punitive damages. Lawsuits seeking similar relief and raising similar allegations, primarily violations of purported common law duties to third parties, were also asserted in various state courts against TPC and SPC. The claims asserted in these suits are collectively referred to as the Common Law Claims. | |
In response to these claims, TPC moved to enjoin the Statutory Actions and the Common Law Claims in the federal bankruptcy court that had presided over the bankruptcy of TPC’s former policyholder Johns-Manville Corporation on the ground that the suits violated injunctions entered in connection with confirmation of the Johns-Manville bankruptcy (the 1986 Orders). The bankruptcy court issued a temporary restraining order and referred the parties to mediation. In November 2003, the parties reached a settlement of the Statutory and Hawaii Actions, which included a lump-sum payment of up to $412 million by TPC, subject to a number of significant contingencies. In May 2004, the parties reached a settlement resolving substantially all pending and similar future Common Law Claims against TPC, which included a payment of up to $90 million by TPC, subject to similar contingencies. Among the contingencies for each of these settlements was that the bankruptcy court issue an order, which must become a final order, clarifying that all of these claims, and similar future asbestos-related claims against TPC, as well as related contribution claims, are barred by the 1986 Orders. | |
On August 17, 2004, the bankruptcy court entered an order approving the settlements and clarifying that the 1986 Orders barred the pending Statutory and Hawaii Actions and substantially all Common Law Claims pending against TPC (the Clarifying Order). The Clarifying Order also applies to similar direct action claims that may be filed in the future. Although the District Court substantially affirmed the Clarifying Order, on February 15, 2008, the Second Circuit issued an opinion vacating on jurisdictional grounds the District Court’s approval of the Clarifying Order. | |
On December 12, 2008, the United States Supreme Court granted TPC’s Petition for Writ of Certiorari and, on June 18, 2009, the Supreme Court reversed the Second Circuit’s February 15, 2008 decision, finding, among other things, that the 1986 Orders are final and therefore may not be collaterally challenged on jurisdictional grounds. The Supreme Court further ruled that the bankruptcy court had jurisdiction to issue the Clarifying Order. However, since the Second Circuit had not ruled on certain additional issues, principally related to procedural matters and the adequacy of notice provided to certain parties, the Supreme Court remanded the case to the Second Circuit for further proceedings on those specific issues. | |
On March 22, 2010, the Second Circuit issued an opinion in which it found that the notice of the 1986 Orders provided to one remaining objector was insufficient to bar contribution claims by that objector against TPC. TPC’s Petition for Rehearing and Rehearing En Banc was denied May 25, 2010 and its Petition for Writ of Certiorari and Petition for a Writ of Mandamus were denied by the United States Supreme Court on November 29, 2010. | |
The plaintiffs in the Statutory and Hawaii Actions and the Common Law Claims actions thereafter filed motions in the bankruptcy court to compel TPC to make payment under the settlement agreements, arguing that all conditions precedent to the settlements had been met. On December 16, 2010, the bankruptcy court granted the plaintiffs’ motions and ruled that TPC was required to fund the settlements. The court entered judgment against TPC on January 20, 2011 in accordance with this ruling and ordered TPC to pay the settlement amounts plus prejudgment interest. The bankruptcy court’s judgment was reversed by the district court on March 1, 2012, the district court having found that the conditions to the settlements had not been met in view of the Second Circuit’s March 22, 2010 ruling permitting the filing of contribution claims against TPC. The plaintiffs appealed the district court’s March 1, 2012 decision to the Second Circuit Court of Appeals. On July 22, 2014, the Second Circuit issued an opinion reversing the district court’s decision and reinstating the bankruptcy court’s January 20, 2011 order which ordered TPC to pay the settlement amounts plus prejudgment interest. On August 5, 2014, TPC filed a Petition for Rehearing and Rehearing En Banc with the Second Circuit. The parties await the court’s decision on that petition. At September 30, 2014, the settlement amount recognized in the Company’s consolidated financial statements totaled $579 million, comprising the $502 million settlement amount described above, plus pre-judgment and post-judgment interest totaling $77 million. Post-judgment interest will continue to accrue at an annual rate of 0.27% until the settlement is paid. | |
SPC, which is not covered by the Manville bankruptcy court rulings or the settlements described above, from time to time has been named as a defendant in direct action cases in Texas state court asserting common law claims. All such cases that are still pending and in which SPC had been served are either currently on the inactive docket in Texas state court or have been superseded by amended petitions that do not name SPC. If any of those cases becomes active or are amended to name SPC, SPC intends to litigate those cases vigorously. SPC was previously a defendant in similar direct actions in Ohio state court, which have been dismissed following favorable rulings by Ohio trial and appellate courts. From time to time, SPC and/or its subsidiaries have been named in similar individual direct actions in other jurisdictions. | |
Outcome and Impact of Asbestos and Environmental Claims and Litigation. 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 reserves. In addition, the Company’s estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or increases 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. 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. | |
Gain Contingency | |
On August 17, 2010, in a reinsurance dispute in New York state court captioned United States Fidelity & Guaranty Company v. American Re-Insurance Company, et al., the trial court granted summary judgment for United States Fidelity and Guaranty Company (USF&G), a subsidiary of the Company, and denied summary judgment for American Re-Insurance Company, a subsidiary of Munich Re (American Re), and three other reinsurers. By order dated October 22, 2010, the trial court corrected certain clerical errors and made certain clarifications to the August 17, 2010 order. On October 25, 2010, judgment was entered against American Re and the other three insurers, awarding USF&G $420 million, comprising $251 million ceded under the terms of the disputed reinsurance contract plus interest of 9% amounting to $169 million as of that date. The judgment, including the award of interest, was appealed by the reinsurers to the New York Supreme Court, Appellate Division, First Department. On January 24, 2012, the Appellate Division affirmed the judgment. On January 30, 2012, the reinsurers filed a motion with the Appellate Division seeking permission to appeal its decision to the New York Court of Appeals, and on March 12, 2012, the Appellate Division granted the reinsurers’ motion. On February 7, 2013, the Court of Appeals issued an opinion that largely affirmed the summary judgment in USF&G’s favor, while modifying in part the summary judgment with respect to two discrete issues and remanding the case to the trial court for determination of those issues. The Company believes it has a meritorious position on each of these issues and intends to pursue its claim vigorously. On May 2, 2013, the Court of Appeals denied a motion by reinsurers to reconsider the February 7, 2013 opinion. In November 2013, the Company entered into a settlement agreement with one of the reinsurers. At September 30, 2014, the claim totaled $482 million, comprising the $238 million of reinsurance recoverable plus interest amounting to $244 million as of that date. Interest will continue to accrue at an annual rate of 9% until the claim is paid. The $238 million of reinsurance recoverable owed to USF&G under the terms of the disputed reinsurance contract has been reported as part of reinsurance recoverables in the Company’s consolidated balance sheet. The interest that would be owed as part of any judgment ultimately entered in favor of USF&G is treated for accounting purposes as a gain contingency in accordance with FASB Topic 450, Contingencies, and accordingly has not been recognized in the Company’s consolidated financial statements. | |
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 $1.57 billion and $1.52 billion at September 30, 2014 and December 31, 2013, respectively. | |
Guarantees | |
In the ordinary course of selling businesses to third parties, the Company has agreed to indemnify purchasers for losses arising out of breaches of representations and warranties with respect to the businesses being sold, covenants and obligations of the Company and/or its subsidiaries following the closing and, in certain cases, obligations arising from undisclosed liabilities, adverse reserve development and imposition of additional taxes due to either a change in the tax law or an adverse interpretation of the tax law. Such indemnification provisions generally are applicable from the closing date to the expiration of the relevant statutes of limitations, although, in some cases, there may be agreed upon term limitations or no term limitations. Certain of these contingent obligations are subject to deductibles which have to be incurred by the obligee before the Company is obligated to make payments. The maximum amount of the Company’s contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $464 million at September 30, 2014, of which $8 million was recognized on the balance sheet at that date. | |
The Company also has contingent obligations for guarantees related to certain investments, third-party loans related to certain investments, certain insurance policy obligations of former insurance subsidiaries, and various other indemnifications. The Company also provides standard indemnifications to service providers in the normal course of business. The indemnification clauses are often standard contractual terms. Certain of these guarantees and indemnifications have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, the Company is unable to develop an estimate of the maximum potential payments for such arrangements. 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 $150 million at September 30, 2014, approximately $75 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 September 30, 2014, all of which is indemnified by a third party. |
Consolidating_Financial_Statem
Consolidating Financial Statements (Unaudited) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure | ' | ||||||||||||||||
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure [Text Block] | ' | ||||||||||||||||
12. 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. has fully and unconditionally guaranteed certain debt obligations of TPC, which totaled $700 million at September 30, 2014. | |||||||||||||||||
Prior to the merger of TPC and SPC 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, Travelers Insurance Group Holdings, Inc. (TIGHI). Concurrent with the merger, The Travelers Companies, Inc. 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 September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 4,064 | $ | 1,919 | $ | — | $ | — | $ | 5,983 | |||||||
Net investment income | 479 | 239 | 1 | — | 719 | ||||||||||||
Fee income | 110 | — | — | — | 110 | ||||||||||||
Net realized investment gains (losses)(1) | (2 | ) | 41 | 1 | — | 40 | |||||||||||
Other revenues | 28 | 6 | — | — | 34 | ||||||||||||
Total revenues | 4,679 | 2,205 | 2 | — | 6,886 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 2,359 | 1,161 | — | — | 3,520 | ||||||||||||
Amortization of deferred acquisition costs | 642 | 342 | — | — | 984 | ||||||||||||
General and administrative expenses | 716 | 311 | 4 | — | 1,031 | ||||||||||||
Interest expense | 12 | — | 81 | — | 93 | ||||||||||||
Total claims and expenses | 3,729 | 1,814 | 85 | — | 5,628 | ||||||||||||
Income (loss) before income taxes | 950 | 391 | (83 | ) | — | 1,258 | |||||||||||
Income tax expense (benefit) | 263 | 106 | (30 | ) | — | 339 | |||||||||||
Net income of subsidiaries | — | — | 972 | (972 | ) | — | |||||||||||
Net income | $ | 687 | $ | 285 | $ | 919 | $ | (972 | ) | $ | 919 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the three months ended September 30, 2014, 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 | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI gains (losses) | $ | (8 | ) | $ | — | $ | — | $ | — | $ | (8 | ) | |||||
OTTI losses recognized in net realized investment gains (losses) | $ | (9 | ) | $ | (1 | ) | $ | — | $ | — | $ | (10 | ) | ||||
OTTI gains recognized in OCI | $ | 1 | $ | 1 | $ | — | $ | — | $ | 2 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited) | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 3,839 | $ | 1,827 | $ | — | $ | — | $ | 5,666 | |||||||
Net investment income | 438 | 217 | 2 | — | 657 | ||||||||||||
Fee income | 106 | 1 | — | — | 107 | ||||||||||||
Net realized investment gains (losses) (1) | 3 | (25 | ) | — | — | (22 | ) | ||||||||||
Other revenues | 38 | 6 | — | — | 44 | ||||||||||||
Total revenues | 4,424 | 2,026 | 2 | — | 6,452 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 2,214 | 1,083 | — | — | 3,297 | ||||||||||||
Amortization of deferred acquisition costs | 640 | 313 | — | — | 953 | ||||||||||||
General and administrative expenses | 646 | 286 | 2 | — | 934 | ||||||||||||
Interest expense | 12 | — | 79 | — | 91 | ||||||||||||
Total claims and expenses | 3,512 | 1,682 | 81 | — | 5,275 | ||||||||||||
Income (loss) before income taxes | 912 | 344 | (79 | ) | — | 1,177 | |||||||||||
Income tax expense (benefit) | 248 | 93 | (28 | ) | — | 313 | |||||||||||
Net income of subsidiaries | — | — | 915 | (915 | ) | — | |||||||||||
Net income | $ | 664 | $ | 251 | $ | 864 | $ | (915 | ) | $ | 864 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the three months ended September 30, 2013, 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 | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI gains (losses) | $ | 1 | $ | (1 | ) | $ | — | $ | — | $ | — | ||||||
OTTI losses recognized in net realized investment gains (losses) | $ | (2 | ) | $ | (1 | ) | $ | — | $ | — | $ | (3 | ) | ||||
OTTI gains recognized in OCI | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 12,028 | $ | 5,706 | $ | — | $ | — | $ | 17,734 | |||||||
Net investment income | 1,451 | 695 | 4 | — | 2,150 | ||||||||||||
Fee income | 328 | 1 | — | — | 329 | ||||||||||||
Net realized investment gains (1) | 4 | 50 | 3 | — | 57 | ||||||||||||
Other revenues | 93 | 16 | — | — | 109 | ||||||||||||
Total revenues | 13,904 | 6,468 | 7 | — | 20,379 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 7,149 | 3,512 | — | — | 10,661 | ||||||||||||
Amortization of deferred acquisition costs | 1,927 | 972 | — | — | 2,899 | ||||||||||||
General and administrative expenses | 2,026 | 876 | 11 | — | 2,913 | ||||||||||||
Interest expense | 36 | — | 241 | — | 277 | ||||||||||||
Total claims and expenses | 11,138 | 5,360 | 252 | — | 16,750 | ||||||||||||
Income (loss) before income taxes | 2,766 | 1,108 | (245 | ) | — | 3,629 | |||||||||||
Income tax expense (benefit) | 770 | 291 | (86 | ) | — | 975 | |||||||||||
Net income of subsidiaries | — | — | 2,813 | (2,813 | ) | — | |||||||||||
Net income | $ | 1,996 | $ | 817 | $ | 2,654 | $ | (2,813 | ) | $ | 2,654 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the nine months ended September 30, 2014, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows: | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI losses | $ | (11 | ) | $ | (5 | ) | $ | — | $ | — | $ | (16 | ) | ||||
OTTI losses recognized in net realized investment gains | $ | (14 | ) | $ | (6 | ) | $ | — | $ | — | $ | (20 | ) | ||||
OTTI gains recognized in OCI | $ | 3 | $ | 1 | $ | — | $ | — | $ | 4 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 11,384 | $ | 5,402 | $ | — | $ | — | $ | 16,786 | |||||||
Net investment income | 1,350 | 659 | 5 | — | 2,014 | ||||||||||||
Fee income | 284 | 2 | — | — | 286 | ||||||||||||
Net realized investment gains (1) | 120 | 34 | 1 | — | 155 | ||||||||||||
Other revenues | 170 | 43 | — | — | 213 | ||||||||||||
Total revenues | 13,308 | 6,140 | 6 | — | 19,454 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 6,684 | 3,296 | — | — | 9,980 | ||||||||||||
Amortization of deferred acquisition costs | 1,912 | 939 | — | — | 2,851 | ||||||||||||
General and administrative expenses | 1,915 | 861 | 4 | — | 2,780 | ||||||||||||
Interest expense | 41 | — | 228 | — | 269 | ||||||||||||
Total claims and expenses | 10,552 | 5,096 | 232 | — | 15,880 | ||||||||||||
Income (loss) before income taxes | 2,756 | 1,044 | (226 | ) | — | 3,574 | |||||||||||
Income tax expense (benefit) | 700 | 269 | (80 | ) | — | 889 | |||||||||||
Net income of subsidiaries | — | — | 2,831 | (2,831 | ) | — | |||||||||||
Net income | $ | 2,056 | $ | 775 | $ | 2,685 | $ | (2,831 | ) | $ | 2,685 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the nine months ended September 30, 2013, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows: | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI gains (losses) | $ | (3 | ) | $ | 2 | $ | — | $ | — | $ | (1 | ) | |||||
OTTI losses recognized in net realized investment gains | $ | (7 | ) | $ | (3 | ) | $ | — | $ | — | $ | (10 | ) | ||||
OTTI gains recognized in OCI | $ | 4 | $ | 5 | $ | — | $ | — | $ | 9 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 687 | $ | 285 | $ | 919 | $ | (972 | ) | $ | 919 | ||||||
Other comprehensive income (loss): | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | (118 | ) | (35 | ) | (1 | ) | — | (154 | ) | ||||||||
Having credit losses recognized in the consolidated statement of income | 2 | (1 | ) | — | — | 1 | |||||||||||
Net changes in benefit plan assets and obligations | — | 1 | 14 | — | 15 | ||||||||||||
Net changes in unrealized foreign currency translation | (120 | ) | (83 | ) | — | — | (203 | ) | |||||||||
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries | (236 | ) | (118 | ) | 13 | — | (341 | ) | |||||||||
Income tax expense (benefit) | (62 | ) | (22 | ) | 5 | — | (79 | ) | |||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries | (174 | ) | (96 | ) | 8 | — | (262 | ) | |||||||||
Other comprehensive loss of subsidiaries | — | — | (270 | ) | 270 | — | |||||||||||
Other comprehensive loss | (174 | ) | (96 | ) | (262 | ) | 270 | (262 | ) | ||||||||
Comprehensive income | $ | 513 | $ | 189 | $ | 657 | $ | (702 | ) | $ | 657 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 664 | $ | 251 | $ | 864 | $ | (915 | ) | $ | 864 | ||||||
Other comprehensive income (loss): | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | (138 | ) | (71 | ) | 5 | — | (204 | ) | |||||||||
Having credit losses recognized in the consolidated statement of income | (1 | ) | (1 | ) | — | — | (2 | ) | |||||||||
Net changes in benefit plan assets and obligations | — | (1 | ) | 25 | — | 24 | |||||||||||
Net changes in unrealized foreign currency translation | 26 | 86 | — | — | 112 | ||||||||||||
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries | (113 | ) | 13 | 30 | — | (70 | ) | ||||||||||
Income tax expense (benefit) | (46 | ) | (20 | ) | 11 | — | (55 | ) | |||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries | (67 | ) | 33 | 19 | — | (15 | ) | ||||||||||
Other comprehensive loss of subsidiaries | — | — | (34 | ) | 34 | — | |||||||||||
Other comprehensive income (loss) | (67 | ) | 33 | (15 | ) | 34 | (15 | ) | |||||||||
Comprehensive income | $ | 597 | $ | 284 | $ | 849 | $ | (881 | ) | $ | 849 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 1,996 | $ | 817 | $ | 2,654 | $ | (2,813 | ) | $ | 2,654 | ||||||
Other comprehensive income: | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | 632 | 266 | 3 | — | 901 | ||||||||||||
Having credit losses recognized in the consolidated statement of income | 11 | (7 | ) | — | — | 4 | |||||||||||
Net changes in benefit plan assets and obligations | — | 1 | 44 | — | 45 | ||||||||||||
Net changes in unrealized foreign currency translation | (94 | ) | (55 | ) | — | — | (149 | ) | |||||||||
Other comprehensive income before income taxes and other comprehensive income of subsidiaries | 549 | 205 | 47 | — | 801 | ||||||||||||
Income tax expense | 210 | 84 | 17 | — | 311 | ||||||||||||
Other comprehensive income, net of taxes, before other comprehensive income of subsidiaries | 339 | 121 | 30 | — | 490 | ||||||||||||
Other comprehensive income of subsidiaries | — | — | 460 | (460 | ) | — | |||||||||||
Other comprehensive income | 339 | 121 | 490 | (460 | ) | 490 | |||||||||||
Comprehensive income | $ | 2,335 | $ | 938 | $ | 3,144 | $ | (3,273 | ) | $ | 3,144 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 2,056 | $ | 775 | $ | 2,685 | $ | (2,831 | ) | $ | 2,685 | ||||||
Other comprehensive income (loss): | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | (1,735 | ) | (647 | ) | 12 | — | (2,370 | ) | |||||||||
Having credit losses recognized in the consolidated statement of income | 4 | (2 | ) | — | — | 2 | |||||||||||
Net changes in benefit plan assets and obligations | 1 | 2 | 75 | — | 78 | ||||||||||||
Net changes in unrealized foreign currency translation | (35 | ) | (22 | ) | — | — | (57 | ) | |||||||||
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries | (1,765 | ) | (669 | ) | 87 | — | (2,347 | ) | |||||||||
Income tax expense (benefit) | (616 | ) | (231 | ) | 31 | — | (816 | ) | |||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries | (1,149 | ) | (438 | ) | 56 | — | (1,531 | ) | |||||||||
Other comprehensive loss of subsidiaries | — | — | (1,587 | ) | 1,587 | — | |||||||||||
Other comprehensive loss | (1,149 | ) | (438 | ) | (1,531 | ) | 1,587 | (1,531 | ) | ||||||||
Comprehensive income | $ | 907 | $ | 337 | $ | 1,154 | $ | (1,244 | ) | $ | 1,154 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING BALANCE SHEET (Unaudited) | |||||||||||||||||
At September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Fixed maturities, available for sale, at fair value (amortized cost $61,043) | $ | 43,493 | $ | 20,090 | $ | 39 | $ | — | $ | 63,622 | |||||||
Equity securities, available for sale, at fair value (cost $609) | 271 | 542 | 136 | — | 949 | ||||||||||||
Real estate investments | 56 | 893 | — | — | 949 | ||||||||||||
Short-term securities | 2,413 | 812 | 1,808 | — | 5,033 | ||||||||||||
Other investments | 2,658 | 978 | 1 | — | 3,637 | ||||||||||||
Total investments | 48,891 | 23,315 | 1,984 | — | 74,190 | ||||||||||||
Cash | 216 | 149 | 2 | — | 367 | ||||||||||||
Investment income accrued | 451 | 206 | 6 | — | 663 | ||||||||||||
Premiums receivable | 4,353 | 2,086 | — | — | 6,439 | ||||||||||||
Reinsurance recoverables | 6,214 | 3,065 | — | — | 9,279 | ||||||||||||
Ceded unearned premiums | 738 | 110 | — | — | 848 | ||||||||||||
Deferred acquisition costs | 1,666 | 224 | — | — | 1,890 | ||||||||||||
Contractholder receivables | 3,274 | 1,093 | — | — | 4,367 | ||||||||||||
Goodwill | 2,609 | 1,012 | — | — | 3,621 | ||||||||||||
Other intangible assets | 225 | 91 | — | — | 316 | ||||||||||||
Investment in subsidiaries | — | — | 28,950 | (28,950 | ) | — | |||||||||||
Other assets | 2,011 | 363 | 168 | — | 2,542 | ||||||||||||
Total assets | $ | 70,648 | $ | 31,714 | $ | 31,110 | $ | (28,950 | ) | $ | 104,522 | ||||||
Liabilities | |||||||||||||||||
Claims and claim adjustment expense reserves | $ | 33,414 | $ | 16,988 | $ | — | $ | — | $ | 50,402 | |||||||
Unearned premium reserves | 8,463 | 3,718 | — | — | 12,181 | ||||||||||||
Contractholder payables | 3,274 | 1,093 | — | — | 4,367 | ||||||||||||
Payables for reinsurance premiums | 286 | 205 | — | — | 491 | ||||||||||||
Deferred taxes | 24 | 44 | 54 | — | 122 | ||||||||||||
Debt | 692 | — | 5,656 | — | 6,348 | ||||||||||||
Other liabilities | 4,039 | 1,160 | 91 | — | 5,290 | ||||||||||||
Total liabilities | 50,192 | 23,208 | 5,801 | — | 79,201 | ||||||||||||
Shareholders’ equity | |||||||||||||||||
Common stock (1,750.0 shares authorized; 331.4 shares issued and outstanding) | — | 390 | 21,764 | (390 | ) | 21,764 | |||||||||||
Additional paid-in capital | 11,634 | 6,502 | — | (18,136 | ) | — | |||||||||||
Retained earnings | 7,716 | 1,070 | 26,382 | (8,774 | ) | 26,394 | |||||||||||
Accumulated other comprehensive income | 1,106 | 544 | 1,300 | (1,650 | ) | 1,300 | |||||||||||
Treasury stock, at cost (427.6 shares) | — | — | (24,137 | ) | — | (24,137 | ) | ||||||||||
Total shareholders’ equity | 20,456 | 8,506 | 25,309 | (28,950 | ) | 25,321 | |||||||||||
Total liabilities and shareholders’ equity | $ | 70,648 | $ | 31,714 | $ | 31,110 | $ | (28,950 | ) | $ | 104,522 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING BALANCE SHEET (Unaudited) | |||||||||||||||||
At December 31, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Fixed maturities, available for sale, at fair value (amortized cost $62,196) | $ | 43,720 | $ | 20,199 | $ | 37 | $ | — | $ | 63,956 | |||||||
Equity securities, available for sale, at fair value (cost $686) | 329 | 484 | 130 | — | 943 | ||||||||||||
Real estate investments | 33 | 905 | — | — | 938 | ||||||||||||
Short-term securities | 1,867 | 492 | 1,523 | — | 3,882 | ||||||||||||
Other investments | 2,450 | 990 | 1 | — | 3,441 | ||||||||||||
Total investments | 48,399 | 23,070 | 1,691 | — | 73,160 | ||||||||||||
Cash | 137 | 154 | 3 | — | 294 | ||||||||||||
Investment income accrued | 499 | 231 | 4 | — | 734 | ||||||||||||
Premiums receivable | 4,124 | 2,001 | — | — | 6,125 | ||||||||||||
Reinsurance recoverables | 6,292 | 3,421 | — | — | 9,713 | ||||||||||||
Ceded unearned premiums | 712 | 89 | — | — | 801 | ||||||||||||
Deferred acquisition costs | 1,570 | 234 | — | — | 1,804 | ||||||||||||
Deferred taxes | 279 | 86 | (62 | ) | — | 303 | |||||||||||
Contractholder receivables | 3,179 | 1,149 | — | — | 4,328 | ||||||||||||
Goodwill | 2,619 | 1,015 | — | — | 3,634 | ||||||||||||
Other intangible assets | 250 | 101 | — | — | 351 | ||||||||||||
Investment in subsidiaries | — | — | 28,616 | (28,616 | ) | — | |||||||||||
Other assets | 2,010 | 357 | 198 | — | 2,565 | ||||||||||||
Total assets | $ | 70,070 | $ | 31,908 | $ | 30,450 | $ | (28,616 | ) | $ | 103,812 | ||||||
Liabilities | |||||||||||||||||
Claims and claim adjustment expense reserves | $ | 33,506 | $ | 17,389 | $ | — | $ | — | $ | 50,895 | |||||||
Unearned premium reserves | 8,188 | 3,662 | — | — | 11,850 | ||||||||||||
Contractholder payables | 3,179 | 1,149 | — | — | 4,328 | ||||||||||||
Payables for reinsurance premiums | 127 | 171 | — | — | 298 | ||||||||||||
Debt | 692 | — | 5,654 | — | 6,346 | ||||||||||||
Other liabilities | 4,109 | 1,180 | 10 | — | 5,299 | ||||||||||||
Total liabilities | 49,801 | 23,551 | 5,664 | — | 79,016 | ||||||||||||
Shareholders’ equity | |||||||||||||||||
Common stock (1,750.0 shares authorized; 353.5 shares issued and outstanding) | — | 390 | 21,500 | (390 | ) | 21,500 | |||||||||||
Additional paid-in capital | 11,634 | 6,502 | — | (18,136 | ) | — | |||||||||||
Retained earnings | 7,868 | 1,042 | 24,281 | (8,900 | ) | 24,291 | |||||||||||
Accumulated other comprehensive income | 767 | 423 | 810 | (1,190 | ) | 810 | |||||||||||
Treasury stock, at cost (401.5 shares) | — | — | (21,805 | ) | — | (21,805 | ) | ||||||||||
Total shareholders’ equity | 20,269 | 8,357 | 24,786 | (28,616 | ) | 24,796 | |||||||||||
Total liabilities and shareholders’ equity | $ | 70,070 | $ | 31,908 | $ | 30,450 | $ | (28,616 | ) | $ | 103,812 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 1,996 | $ | 817 | $ | 2,654 | $ | (2,813 | ) | $ | 2,654 | ||||||
Net adjustments to reconcile net income to net cash provided by operating activities | 391 | (73 | ) | 322 | (126 | ) | 514 | ||||||||||
Net cash provided by operating activities | 2,387 | 744 | 2,976 | (2,939 | ) | 3,168 | |||||||||||
Cash flows from investing activities | |||||||||||||||||
Proceeds from maturities of fixed maturities | 4,886 | 3,088 | 1 | — | 7,975 | ||||||||||||
Proceeds from sales of investments: | |||||||||||||||||
Fixed maturities | 511 | 415 | 1 | — | 927 | ||||||||||||
Equity securities | 83 | 41 | 4 | — | 128 | ||||||||||||
Real estate investments | 1 | 4 | — | — | 5 | ||||||||||||
Other investments | 317 | 295 | — | — | 612 | ||||||||||||
Purchases of investments: | |||||||||||||||||
Fixed maturities | (4,888 | ) | (3,345 | ) | (4 | ) | — | (8,237 | ) | ||||||||
Equity securities | (3 | ) | (38 | ) | (6 | ) | — | (47 | ) | ||||||||
Real estate investments | (22 | ) | (19 | ) | — | — | (41 | ) | |||||||||
Other investments | (292 | ) | (114 | ) | — | — | (406 | ) | |||||||||
Net purchases of short-term securities | (552 | ) | (326 | ) | (285 | ) | — | (1,163 | ) | ||||||||
Securities transactions in course of settlement | 66 | 53 | — | — | 119 | ||||||||||||
Acquisitions, net of cash acquired | (9 | ) | (3 | ) | — | — | (12 | ) | |||||||||
Other | (256 | ) | (6 | ) | — | — | (262 | ) | |||||||||
Net cash provided by (used in) investing activities | (158 | ) | 45 | (289 | ) | — | (402 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Dividends paid to shareholders | — | — | (549 | ) | — | (549 | ) | ||||||||||
Issuance of common stock — employee share options | — | — | 154 | — | 154 | ||||||||||||
Treasury stock acquired — share repurchase authorization | — | — | (2,275 | ) | — | (2,275 | ) | ||||||||||
Treasury stock acquired — net employee share-based compensation | — | — | (56 | ) | — | (56 | ) | ||||||||||
Excess tax benefits from share-based payment arrangements | — | — | 38 | — | 38 | ||||||||||||
Dividends paid to parent company | (2,150 | ) | (789 | ) | — | 2,939 | — | ||||||||||
Net cash used in financing activities | (2,150 | ) | (789 | ) | (2,688 | ) | 2,939 | (2,688 | ) | ||||||||
Effect of exchange rate changes on cash | — | (5 | ) | — | — | (5 | ) | ||||||||||
Net increase (decrease) in cash | 79 | (5 | ) | (1 | ) | — | 73 | ||||||||||
Cash at beginning of year | 137 | 154 | 3 | — | 294 | ||||||||||||
Cash at end of period | $ | 216 | $ | 149 | $ | 2 | $ | — | $ | 367 | |||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Income taxes paid (received) | $ | 684 | $ | 215 | $ | (114 | ) | $ | — | $ | 785 | ||||||
Interest paid | $ | 40 | $ | — | $ | 177 | $ | — | $ | 217 | |||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 2,056 | $ | 775 | $ | 2,685 | $ | (2,831 | ) | $ | 2,685 | ||||||
Net adjustments to reconcile net income to net cash provided by operating activities | (348 | ) | 224 | (1,531 | ) | 1,859 | 204 | ||||||||||
Net cash provided by operating activities | 1,708 | 999 | 1,154 | (972 | ) | 2,889 | |||||||||||
Cash flows from investing activities | |||||||||||||||||
Proceeds from maturities of fixed maturities | 4,096 | 1,820 | 1 | — | 5,917 | ||||||||||||
Proceeds from sales of investments: | |||||||||||||||||
Fixed maturities | 590 | 565 | 5 | — | 1,160 | ||||||||||||
Equity securities | 21 | 36 | — | — | 57 | ||||||||||||
Other investments | 337 | 208 | — | — | 545 | ||||||||||||
Purchases of investments: | |||||||||||||||||
Fixed maturities | (4,339 | ) | (2,146 | ) | (7 | ) | — | (6,492 | ) | ||||||||
Equity securities | (20 | ) | (29 | ) | (1 | ) | — | (50 | ) | ||||||||
Real estate investments | — | (65 | ) | — | — | (65 | ) | ||||||||||
Other investments | (222 | ) | (90 | ) | — | — | (312 | ) | |||||||||
Net sales (purchases) of short-term securities | (1,563 | ) | (492 | ) | 162 | — | (1,893 | ) | |||||||||
Securities transactions in course of settlement | 182 | 98 | — | — | 280 | ||||||||||||
Other | (250 | ) | (4 | ) | — | — | (254 | ) | |||||||||
Net cash provided by (used in) investing activities | (1,168 | ) | (99 | ) | 160 | — | (1,107 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Payment of debt | (500 | ) | — | — | — | (500 | ) | ||||||||||
Issuance of debt | — | — | 494 | — | 494 | ||||||||||||
Dividends paid to shareholders | — | — | (549 | ) | — | (549 | ) | ||||||||||
Issuance of common stock — employee share options | — | — | 158 | — | 158 | ||||||||||||
Treasury stock acquired — share repurchase authorization | — | — | (1,400 | ) | — | (1,400 | ) | ||||||||||
Treasury stock acquired — net employee share-based compensation | — | — | (60 | ) | — | (60 | ) | ||||||||||
Excess tax benefits from share-based payment arrangements | — | — | 43 | — | 43 | ||||||||||||
Capital contributions | 500 | — | — | (500 | ) | — | |||||||||||
Dividends paid to parent company | (587 | ) | (885 | ) | — | 1,472 | — | ||||||||||
Net cash used in financing activities | (587 | ) | (885 | ) | (1,314 | ) | 972 | (1,814 | ) | ||||||||
Effect of exchange rate changes on cash | — | (3 | ) | — | — | (3 | ) | ||||||||||
Net increase (decrease) in cash | (47 | ) | 12 | — | — | (35 | ) | ||||||||||
Cash at beginning of year | 177 | 151 | 2 | — | 330 | ||||||||||||
Cash at end of period | $ | 130 | $ | 163 | $ | 2 | $ | — | $ | 295 | |||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Income taxes paid (received) | $ | 691 | $ | 236 | $ | (203 | ) | $ | — | $ | 724 | ||||||
Interest paid | $ | 52 | $ | — | $ | 154 | $ | — | $ | 206 | |||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. |
Basis_of_Presentation_and_Acco1
Basis of Presentation and Accounting Policies (policies) | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation and Accounting Policies disclosure | ' |
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 2013 Annual Report on Form 10-K as updated by the Company’s Form 8-K filed on September 10, 2014. | |
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. | |
On November 1, 2013, the Company acquired all of the issued and outstanding shares of The Dominion of Canada General Insurance Company (Dominion) for an aggregate purchase price of approximately $1.035 billion. Dominion primarily markets personal lines and small commercial insurance business in Canada. At the acquisition date, the Company recorded at fair value $3.91 billion of assets acquired and $2.88 billion of liabilities assumed as part of purchase accounting, including $16 million of identifiable intangible assets and $273 million of goodwill. Dominion is included in the Company’s Business and International Insurance segment. | |
Accounting Policies, Adoption of Accounting Standards Updates [Policy Text Block] | ' |
Adoption of Accounting Standards Updates | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date | |
In February 2013, the Financial Accounting Standards Board (FASB) issued updated guidance to resolve diversity in practice concerning the recognition, measurement and disclosure of obligations resulting from certain joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The guidance requires that the reporting entity measure joint and several liability arrangements as the amount the reporting entity agreed to pay on the basis of its arrangement among the co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The updated guidance was effective for the quarter ending March 31, 2014. The adoption of this guidance did not have any effect on the Company’s results of operations, financial position or liquidity. | |
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity | |
In March 2013, the FASB issued updated guidance to resolve diversity in practice concerning the release of the cumulative foreign currency translation adjustment into net income when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. When a company ceases to have a controlling financial interest in a subsidiary within a foreign entity, the company should recognize any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary had resided. Upon the partial sale of an equity method investment that is a foreign entity, the company should release into earnings a pro rata portion of the cumulative translation adjustment. Upon the partial sale of an equity method investment that is not a foreign entity, the company should release into earnings the cumulative translation adjustment if the partial sale represents a complete or substantially complete liquidation of the foreign entity that holds the equity method investment. The updated guidance was effective for the quarter ending March 31, 2014. The adoption of this guidance did not have any effect on the Company’s results of operations, financial position or liquidity. |
Segment_Information_tables
Segment Information (tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Segment Information disclosure | ' | |||||||||||||
Company's revenues and operating income by segment [Table Text Block] | ' | |||||||||||||
(for the three months | Business and | Bond & Specialty | Personal | Total | ||||||||||
ended September 30, | International | Insurance | Insurance | Reportable | ||||||||||
in millions) | Insurance | Segments | ||||||||||||
2014 | ||||||||||||||
Premiums | $ | 3,660 | $ | 527 | $ | 1,796 | $ | 5,983 | ||||||
Net investment income | 557 | 64 | 98 | 719 | ||||||||||
Fee income | 110 | — | — | 110 | ||||||||||
Other revenues | 10 | 5 | 19 | 34 | ||||||||||
Total operating revenues (1) | $ | 4,337 | $ | 596 | $ | 1,913 | $ | 6,846 | ||||||
Operating income (1) | $ | 552 | $ | 165 | $ | 239 | $ | 956 | ||||||
2013 | ||||||||||||||
Premiums | $ | 3,325 | $ | 506 | $ | 1,835 | $ | 5,666 | ||||||
Net investment income | 504 | 63 | 90 | 657 | ||||||||||
Fee income | 107 | — | — | 107 | ||||||||||
Other revenues | 8 | 5 | 34 | 47 | ||||||||||
Total operating revenues (1) | $ | 3,944 | $ | 574 | $ | 1,959 | $ | 6,477 | ||||||
Operating income (1) | $ | 566 | $ | 120 | $ | 262 | $ | 948 | ||||||
(1) Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). | ||||||||||||||
(for the nine months | Business and | Bond & Specialty | Personal | Total | ||||||||||
ended September 30, | International | Insurance | Insurance | Reportable | ||||||||||
in millions) | Insurance | Segments | ||||||||||||
2014 | ||||||||||||||
Premiums | $ | 10,849 | $ | 1,554 | $ | 5,331 | $ | 17,734 | ||||||
Net investment income | 1,666 | 192 | 292 | 2,150 | ||||||||||
Fee income | 329 | — | — | 329 | ||||||||||
Other revenues | 32 | 15 | 62 | 109 | ||||||||||
Total operating revenues (1) | $ | 12,876 | $ | 1,761 | $ | 5,685 | $ | 20,322 | ||||||
Operating income (1) | $ | 1,717 | $ | 511 | $ | 582 | $ | 2,810 | ||||||
2013 | ||||||||||||||
Premiums | $ | 9,801 | $ | 1,476 | $ | 5,509 | $ | 16,786 | ||||||
Net investment income | 1,544 | 195 | 275 | 2,014 | ||||||||||
Fee income | 286 | — | — | 286 | ||||||||||
Other revenues | 135 | 15 | 67 | 217 | ||||||||||
Total operating revenues (1) | $ | 11,766 | $ | 1,686 | $ | 5,851 | $ | 19,303 | ||||||
Operating income (1) | $ | 1,773 | $ | 399 | $ | 601 | $ | 2,773 | ||||||
(1) Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). | ||||||||||||||
Business segment reconciliations of revenue and income, net of tax [Table Text Block] | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Revenue reconciliation | ||||||||||||||
Earned premiums | ||||||||||||||
Business and International Insurance: | ||||||||||||||
Domestic: | ||||||||||||||
Workers’ compensation | $ | 928 | $ | 896 | $ | 2,759 | $ | 2,640 | ||||||
Commercial automobile | 481 | 476 | 1,422 | 1,425 | ||||||||||
Commercial property | 442 | 432 | 1,310 | 1,259 | ||||||||||
General liability | 472 | 452 | 1,376 | 1,333 | ||||||||||
Commercial multi-peril | 774 | 779 | 2,292 | 2,320 | ||||||||||
Other | 10 | 11 | 31 | 29 | ||||||||||
Total Domestic | 3,107 | 3,046 | 9,190 | 9,006 | ||||||||||
International | 553 | 279 | 1,659 | 795 | ||||||||||
Total Business and International Insurance | 3,660 | 3,325 | 10,849 | 9,801 | ||||||||||
Bond & Specialty Insurance: | ||||||||||||||
Fidelity and surety | 240 | 235 | 700 | 683 | ||||||||||
General liability | 243 | 227 | 721 | 661 | ||||||||||
Other | 44 | 44 | 133 | 132 | ||||||||||
Total Bond & Specialty Insurance | 527 | 506 | 1,554 | 1,476 | ||||||||||
Personal Insurance: | ||||||||||||||
Automobile | 835 | 855 | 2,471 | 2,591 | ||||||||||
Homeowners and other | 961 | 980 | 2,860 | 2,918 | ||||||||||
Total Personal Insurance | 1,796 | 1,835 | 5,331 | 5,509 | ||||||||||
Total earned premiums | 5,983 | 5,666 | 17,734 | 16,786 | ||||||||||
Net investment income | 719 | 657 | 2,150 | 2,014 | ||||||||||
Fee income | 110 | 107 | 329 | 286 | ||||||||||
Other revenues | 34 | 47 | 109 | 217 | ||||||||||
Total operating revenues for reportable segments | 6,846 | 6,477 | 20,322 | 19,303 | ||||||||||
Other revenues | — | (3 | ) | — | (4 | ) | ||||||||
Net realized investment gains (losses) | 40 | (22 | ) | 57 | 155 | |||||||||
Total consolidated revenues | $ | 6,886 | $ | 6,452 | $ | 20,379 | $ | 19,454 | ||||||
Income reconciliation, net of tax | ||||||||||||||
Total operating income for reportable segments | $ | 956 | $ | 948 | $ | 2,810 | $ | 2,773 | ||||||
Interest Expense and Other (1) | (63 | ) | (65 | ) | (192 | ) | (187 | ) | ||||||
Total operating income | 893 | 883 | 2,618 | 2,586 | ||||||||||
Net realized investment gains (losses) | 26 | (19 | ) | 36 | 99 | |||||||||
Total consolidated net income | $ | 919 | $ | 864 | $ | 2,654 | $ | 2,685 | ||||||
(1) The primary component of Interest Expense and Other is after-tax interest expense of $60 million and $59 million for the three months ended September 30, 2014 and 2013, respectively, and $180 million and $175 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
Asset reconciliation [Table Text Block] | ' | |||||||||||||
(in millions) | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Asset reconciliation: | ||||||||||||||
Business and International Insurance | $ | 83,218 | $ | 82,789 | ||||||||||
Bond & Specialty Insurance | 7,871 | 7,648 | ||||||||||||
Personal Insurance | 12,975 | 12,870 | ||||||||||||
Total assets for reportable segments | 104,064 | 103,307 | ||||||||||||
Other assets (1) | 458 | 505 | ||||||||||||
Total consolidated assets | $ | 104,522 | $ | 103,812 | ||||||||||
(1) The primary components of other assets at both dates were other intangible assets and accrued over-funded benefit plan assets related to the Company’s qualified domestic pension plan. |
Investments_tables
Investments (tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Investments disclosure | ' | |||||||||||||||||||
Amortized cost and fair value of investments in fixed maturities [Table Text Block] | ' | |||||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||||||
(at September 30, 2014, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 2,050 | $ | 31 | $ | 7 | $ | 2,074 | ||||||||||||
Obligations of states, municipalities and political subdivisions: | ||||||||||||||||||||
Pre-refunded | 7,459 | 348 | — | 7,807 | ||||||||||||||||
All other | 24,787 | 1,336 | 33 | 26,090 | ||||||||||||||||
Total obligations of states, municipalities and political subdivisions | 32,246 | 1,684 | 33 | 33,897 | ||||||||||||||||
Debt securities issued by foreign governments | 2,435 | 34 | 1 | 2,468 | ||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,114 | 167 | 7 | 2,274 | ||||||||||||||||
All other corporate bonds | 22,072 | 828 | 126 | 22,774 | ||||||||||||||||
Redeemable preferred stock | 126 | 9 | — | 135 | ||||||||||||||||
Total | $ | 61,043 | $ | 2,753 | $ | 174 | $ | 63,622 | ||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||||||
(at December 31, 2013, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 2,288 | $ | 39 | $ | 12 | $ | 2,315 | ||||||||||||
Obligations of states, municipalities and political subdivisions: | ||||||||||||||||||||
Pre-refunded | 9,074 | 445 | 1 | 9,518 | ||||||||||||||||
All other | 25,414 | 991 | 361 | 26,044 | ||||||||||||||||
Total obligations of states, municipalities and political subdivisions | 34,488 | 1,436 | 362 | 35,562 | ||||||||||||||||
Debt securities issued by foreign governments | 2,552 | 33 | 8 | 2,577 | ||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,263 | 179 | 18 | 2,424 | ||||||||||||||||
All other corporate bonds | 20,472 | 767 | 299 | 20,940 | ||||||||||||||||
Redeemable preferred stock | 133 | 6 | 1 | 138 | ||||||||||||||||
Total | $ | 62,196 | $ | 2,460 | $ | 700 | $ | 63,956 | ||||||||||||
Cost and fair value of investments in equity securities [Table Text Block] | ' | |||||||||||||||||||
Gross Unrealized | Fair | |||||||||||||||||||
(at September 30, 2014, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
Public common stock | $ | 396 | $ | 312 | $ | — | $ | 708 | ||||||||||||
Non-redeemable preferred stock | 213 | 30 | 2 | 241 | ||||||||||||||||
Total | $ | 609 | $ | 342 | $ | 2 | $ | 949 | ||||||||||||
Gross Unrealized | Fair | |||||||||||||||||||
(at December 31, 2013, in millions) | Cost | Gains | Losses | Value | ||||||||||||||||
Public common stock | $ | 385 | $ | 226 | $ | 1 | $ | 610 | ||||||||||||
Non-redeemable preferred stock | 301 | 34 | 2 | 333 | ||||||||||||||||
Total | $ | 686 | $ | 260 | $ | 3 | $ | 943 | ||||||||||||
Unrealized investment losses [Table Text Block] | ' | |||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
(at September 30, 2014, in millions) | Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 172 | $ | 2 | $ | 105 | $ | 5 | $ | 277 | $ | 7 | ||||||||
Obligations of states, municipalities and political subdivisions | 1,033 | 1 | 1,736 | 32 | 2,769 | 33 | ||||||||||||||
Debt securities issued by foreign governments | 226 | — | 143 | 1 | 369 | 1 | ||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 157 | 1 | 257 | 6 | 414 | 7 | ||||||||||||||
All other corporate bonds | 3,161 | 34 | 2,658 | 92 | 5,819 | 126 | ||||||||||||||
Total fixed maturities | 4,749 | 38 | 4,899 | 136 | 9,648 | 174 | ||||||||||||||
Equity securities | ||||||||||||||||||||
Public common stock | 36 | — | 1 | — | 37 | — | ||||||||||||||
Non-redeemable preferred stock | 108 | 2 | — | — | 108 | 2 | ||||||||||||||
Total equity securities | 144 | 2 | 1 | — | 145 | 2 | ||||||||||||||
Total | $ | 4,893 | $ | 40 | $ | 4,900 | $ | 136 | $ | 9,793 | $ | 176 | ||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
(at December 31, 2013, in millions) | Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | 433 | $ | 12 | $ | — | $ | — | $ | 433 | $ | 12 | ||||||||
Obligations of states, municipalities and political subdivisions | 4,785 | 298 | 432 | 64 | 5,217 | 362 | ||||||||||||||
Debt securities issued by foreign governments | 907 | 8 | 1 | — | 908 | 8 | ||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 542 | 17 | 21 | 1 | 563 | 18 | ||||||||||||||
All other corporate bonds | 6,887 | 253 | 421 | 46 | 7,308 | 299 | ||||||||||||||
Redeemable preferred stock | 82 | 1 | — | — | 82 | 1 | ||||||||||||||
Total fixed maturities | 13,636 | 589 | 875 | 111 | 14,511 | 700 | ||||||||||||||
Equity securities | ||||||||||||||||||||
Public common stock | 53 | 1 | — | — | 53 | 1 | ||||||||||||||
Non-redeemable preferred stock | 147 | 2 | — | — | 147 | 2 | ||||||||||||||
Total equity securities | 200 | 3 | — | — | 200 | 3 | ||||||||||||||
Total | $ | 13,836 | $ | 592 | $ | 875 | $ | 111 | $ | 14,711 | $ | 703 | ||||||||
Securities continuously in an unrealized loss position of greater than 20% of amortized cost by length of time [Table Text Block] | ' | |||||||||||||||||||
Period For Which Fair Value Is Less Than 80% of Amortized Cost | ||||||||||||||||||||
(at September 30, 2014, in millions) | 3 Months | Greater Than 3 | Greater Than 6 | Greater Than | Total | |||||||||||||||
or Less | Months, 6 Months | Months, 12 Months | 12 Months | |||||||||||||||||
or Less | or Less | |||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Other | — | — | 2 | 2 | 4 | |||||||||||||||
Total fixed maturities | — | — | 2 | 2 | 4 | |||||||||||||||
Equity securities | — | — | — | — | — | |||||||||||||||
Total | $ | — | $ | — | $ | 2 | $ | 2 | $ | 4 | ||||||||||
Impairment charges included in net realized investment gains (losses) [Table Text Block] | ' | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Fixed maturities | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Obligations of states, municipalities and political subdivisions | — | — | — | — | ||||||||||||||||
Debt securities issued by foreign governments | — | — | — | — | ||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | — | — | 1 | 2 | ||||||||||||||||
All other corporate bonds | 9 | — | 12 | — | ||||||||||||||||
Redeemable preferred stock | — | — | — | — | ||||||||||||||||
Total fixed maturities | 9 | — | 13 | 2 | ||||||||||||||||
Equity securities | ||||||||||||||||||||
Public common stock | 1 | 2 | 6 | 3 | ||||||||||||||||
Non-redeemable preferred stock | — | — | — | — | ||||||||||||||||
Total equity securities | 1 | 2 | 6 | 3 | ||||||||||||||||
Other investments | — | 1 | 1 | 5 | ||||||||||||||||
Total | $ | 10 | $ | 3 | $ | 20 | $ | 10 | ||||||||||||
Cumulative amount of and the changes during the reporting period in the credit losses 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 [Table Text Block] | ' | |||||||||||||||||||
2014 | ||||||||||||||||||||
(for the three months ended September 30, in | Cumulative | Additions for | Additions for | Reductions | Adjustments to | Cumulative | ||||||||||||||
millions) | OTTI Credit | OTTI Securities | OTTI | Due to | Book Value of | OTTI Credit | ||||||||||||||
Losses | Where No | Securities | Sales/Defaults | Credit- | Losses | |||||||||||||||
Recognized for | Credit Losses | Where Credit | of Credit- | Impaired | Recognized for | |||||||||||||||
Securities | Were Previously | Losses Have | Impaired | Securities due | Securities Still | |||||||||||||||
Held, | Recognized | Been | Securities | to Changes in | Held, End of | |||||||||||||||
Beginning of | Previously | Cash Flows | Period | |||||||||||||||||
Period | Recognized | |||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 43 | $ | — | $ | — | $ | — | $ | 1 | $ | 44 | ||||||||
All other corporate bonds | 66 | — | — | (5 | ) | — | 61 | |||||||||||||
Total fixed maturities | $ | 109 | $ | — | $ | — | $ | (5 | ) | $ | 1 | $ | 105 | |||||||
(for the nine months ended September 30, in | ||||||||||||||||||||
millions) | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 53 | $ | — | $ | 1 | $ | (3 | ) | $ | (7 | ) | $ | 44 | ||||||
All other corporate bonds | 65 | — | 3 | (5 | ) | (2 | ) | 61 | ||||||||||||
Total fixed maturities | $ | 118 | $ | — | $ | 4 | $ | (8 | ) | $ | (9 | ) | $ | 105 | ||||||
2013 | ||||||||||||||||||||
(for the three months ended September 30, in | Cumulative | Additions for | Additions for | Reductions | Adjustments to | Cumulative | ||||||||||||||
millions) | OTTI Credit | OTTI Securities | OTTI | Due to | Book Value of | OTTI Credit | ||||||||||||||
Losses | Where No | Securities | Sales/Defaults | Credit- | Losses | |||||||||||||||
Recognized for | Credit Losses | Where Credit | of Credit- | Impaired | Recognized for | |||||||||||||||
Securities | Were Previously | Losses Have | Impaired | Securities due | Securities Still | |||||||||||||||
Held, | Recognized | Been | Securities | to Changes in | Held, End of | |||||||||||||||
Beginning of | Previously | Cash Flows | Period | |||||||||||||||||
Period | Recognized | |||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 55 | $ | — | $ | — | $ | — | $ | (2 | ) | $ | 53 | |||||||
All other corporate bonds | 70 | — | — | — | (1 | ) | 69 | |||||||||||||
Total fixed maturities | $ | 125 | $ | — | $ | — | $ | — | $ | (3 | ) | $ | 122 | |||||||
(for the nine months ended September 30, in | ||||||||||||||||||||
millions) | ||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | $ | 55 | $ | — | $ | 2 | $ | — | $ | (4 | ) | $ | 53 | |||||||
All other corporate bonds | 72 | — | — | — | (3 | ) | 69 | |||||||||||||
Total fixed maturities | $ | 127 | $ | — | $ | 2 | $ | — | $ | (7 | ) | $ | 122 | |||||||
Fair_Value_Measurements_tables
Fair Value Measurements (tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Measurements disclosure | ' | ||||||||||||||||
Level within the fair value hierarchy at which the Company's financial assets and financial liabilities reported at fair value are measured [Table Text Block] | ' | ||||||||||||||||
(at September 30, 2014, 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 | $ | 2,074 | $ | 2,062 | $ | 12 | $ | — | |||||||||
Obligations of states, municipalities and political subdivisions | 33,897 | 24 | 33,860 | 13 | |||||||||||||
Debt securities issued by foreign governments | 2,468 | 9 | 2,459 | — | |||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,274 | — | 2,274 | — | |||||||||||||
All other corporate bonds | 22,774 | 17 | 22,511 | 246 | |||||||||||||
Redeemable preferred stock | 135 | 5 | 122 | 8 | |||||||||||||
Total fixed maturities | 63,622 | 2,117 | 61,238 | 267 | |||||||||||||
Equity securities | |||||||||||||||||
Public common stock | 708 | 708 | — | — | |||||||||||||
Non-redeemable preferred stock | 241 | 93 | 148 | — | |||||||||||||
Total equity securities | 949 | 801 | 148 | — | |||||||||||||
Other investments | 56 | 19 | — | 37 | |||||||||||||
Total | $ | 64,627 | $ | 2,937 | $ | 61,386 | $ | 304 | |||||||||
(at December 31, 2013, 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 | $ | 2,315 | $ | 2,298 | $ | 17 | $ | — | |||||||||
Obligations of states, municipalities and political subdivisions | 35,562 | 1 | 35,538 | 23 | |||||||||||||
Debt securities issued by foreign governments | 2,577 | — | 2,577 | — | |||||||||||||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities | 2,424 | — | 2,415 | 9 | |||||||||||||
All other corporate bonds | 20,940 | — | 20,726 | 214 | |||||||||||||
Redeemable preferred stock | 138 | — | 129 | 9 | |||||||||||||
Total fixed maturities | 63,956 | 2,299 | 61,402 | 255 | |||||||||||||
Equity securities | |||||||||||||||||
Public common stock | 610 | 610 | — | — | |||||||||||||
Non-redeemable preferred stock | 333 | 138 | 195 | — | |||||||||||||
Total equity securities | 943 | 748 | 195 | — | |||||||||||||
Other investments | 53 | 19 | — | 34 | |||||||||||||
Total | $ | 64,952 | $ | 3,066 | $ | 61,597 | $ | 289 | |||||||||
Changes in the Level 3 fair value category [Table Text Block] | ' | ||||||||||||||||
Three Months Ended September 30, 2014 (in millions) | Fixed | Other | Total | ||||||||||||||
Maturities | Investments | ||||||||||||||||
Balance at June 30, 2014 | $ | 264 | $ | 36 | $ | 300 | |||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||
Reported in net realized investment gains (losses) (1) | 1 | — | 1 | ||||||||||||||
Reported in increases (decreases) in other comprehensive income | (2 | ) | 1 | (1 | ) | ||||||||||||
Purchases, sales and settlements/maturities: | |||||||||||||||||
Purchases | 74 | — | 74 | ||||||||||||||
Sales | — | — | — | ||||||||||||||
Settlements/maturities | (13 | ) | — | (13 | ) | ||||||||||||
Gross transfers into Level 3 | 8 | — | 8 | ||||||||||||||
Gross transfers out of Level 3 | (65 | ) | — | (65 | ) | ||||||||||||
Balance at September 30, 2014 | $ | 267 | $ | 37 | $ | 304 | |||||||||||
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | $ | — | $ | — | $ | — | |||||||||||
(1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. | |||||||||||||||||
Nine Months Ended September 30, 2014 (in millions) | Fixed | Other | Total | ||||||||||||||
Maturities | Investments | ||||||||||||||||
Balance at December 31, 2013 | $ | 255 | $ | 34 | $ | 289 | |||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||
Reported in net realized investment gains (losses) (1) | 3 | 1 | 4 | ||||||||||||||
Reported in increases (decreases) in other comprehensive income | (2 | ) | 1 | (1 | ) | ||||||||||||
Purchases, sales and settlements/maturities: | |||||||||||||||||
Purchases | 216 | 1 | 217 | ||||||||||||||
Sales | (1 | ) | — | (1 | ) | ||||||||||||
Settlements/maturities | (73 | ) | — | (73 | ) | ||||||||||||
Gross transfers into Level 3 | 8 | — | 8 | ||||||||||||||
Gross transfers out of Level 3 | (139 | ) | — | (139 | ) | ||||||||||||
Balance at September 30, 2014 | $ | 267 | $ | 37 | $ | 304 | |||||||||||
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | $ | — | $ | — | $ | — | |||||||||||
(1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. | |||||||||||||||||
Twelve Months Ended December 31, 2013 (in millions) | Fixed | Other | Total | ||||||||||||||
Maturities | Investments | ||||||||||||||||
Balance at December 31, 2012 | $ | 230 | $ | 54 | $ | 284 | |||||||||||
Total realized and unrealized investment gains (losses): | |||||||||||||||||
Reported in net realized investment gains (1) | 4 | 12 | 16 | ||||||||||||||
Reported in increases (decreases) in other comprehensive income | (2 | ) | 1 | (1 | ) | ||||||||||||
Purchases, sales and settlements/maturities: | |||||||||||||||||
Purchases | 180 | — | 180 | ||||||||||||||
Sales | (25 | ) | (33 | ) | (58 | ) | |||||||||||
Settlements/maturities | (83 | ) | — | (83 | ) | ||||||||||||
Gross transfers into Level 3 | 15 | — | 15 | ||||||||||||||
Gross transfers out of Level 3 | (64 | ) | — | (64 | ) | ||||||||||||
Balance at December 31, 2013 | $ | 255 | $ | 34 | $ | 289 | |||||||||||
Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date | $ | — | $ | — | $ | — | |||||||||||
(1) Includes impairments on investments held at the end of the period as well as amortization on fixed maturities. | |||||||||||||||||
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 measured on a recurring basis [Table Text Block] | ' | ||||||||||||||||
(at September 30, 2014, in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||
Value | Value | ||||||||||||||||
Financial assets: | |||||||||||||||||
Short-term securities | $ | 5,033 | $ | 5,033 | $ | 1,265 | $ | 3,719 | $ | 49 | |||||||
Financial liabilities: | |||||||||||||||||
Debt | $ | 6,248 | $ | 7,390 | $ | — | $ | 7,390 | $ | — | |||||||
Commercial paper | $ | 100 | $ | 100 | $ | — | $ | 100 | $ | — | |||||||
(at December 31, 2013, in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||
Value | Value | ||||||||||||||||
Financial assets: | |||||||||||||||||
Short-term securities | $ | 3,882 | $ | 3,882 | $ | 1,608 | $ | 2,215 | $ | 59 | |||||||
Financial liabilities: | |||||||||||||||||
Debt | $ | 6,246 | $ | 7,123 | $ | — | $ | 7,123 | $ | — | |||||||
Commercial paper | $ | 100 | $ | 100 | $ | — | $ | 100 | $ | — |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Goodwill and Other Intangible Assets disclosure | ' | |||||||||||||
Goodwill by segment [Table Text Block] | ' | |||||||||||||
(in millions) | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Business and International Insurance (1) | $ | 2,486 | $ | 2,499 | ||||||||||
Bond & Specialty Insurance | 495 | 495 | ||||||||||||
Personal Insurance | 613 | 613 | ||||||||||||
Other | 27 | 27 | ||||||||||||
Total | $ | 3,621 | $ | 3,634 | ||||||||||
(1) Includes goodwill associated with the Company’s acquisition of Dominion in 2013, which is subject to the impact of changes in foreign currency exchange rates. | ||||||||||||||
Other intangible assets by major asset class [Table Text Block] | ' | |||||||||||||
(at September 30, 2014, in millions) | Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | |||||||||||||
Amount | ||||||||||||||
Intangibles subject to amortization | ||||||||||||||
Customer-related | $ | 460 | $ | 438 | $ | 22 | ||||||||
Fair value adjustment on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangibles (1) | 209 | 132 | 77 | |||||||||||
Total intangible assets subject to amortization | 669 | 570 | 99 | |||||||||||
Intangible assets not subject to amortization | 217 | — | 217 | |||||||||||
Total other intangible assets | $ | 886 | $ | 570 | $ | 316 | ||||||||
(at December 31, 2013, in millions) | Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | |||||||||||||
Amount | ||||||||||||||
Intangibles subject to amortization | ||||||||||||||
Customer-related | $ | 460 | $ | 414 | $ | 46 | ||||||||
Fair value adjustment on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangibles (1) | 201 | 113 | 88 | |||||||||||
Total intangible assets subject to amortization | 661 | 527 | 134 | |||||||||||
Intangible assets not subject to amortization | 217 | — | 217 | |||||||||||
Total other intangible assets | $ | 878 | $ | 527 | $ | 351 | ||||||||
(1) The time value of money and the risk margin (cost of capital) components of the intangible asset run off at different rates, and, as such, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. | ||||||||||||||
Amortization expense for other intangible assets by major asset class [Table Text Block] | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Customer-related | $ | 8 | $ | 8 | $ | 24 | $ | 23 | ||||||
Fair value adjustment on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangibles | 4 | 3 | 11 | 11 | ||||||||||
Total amortization expense | $ | 12 | $ | 11 | $ | 35 | $ | 34 |
Other_Comprehensive_Income_and1
Other Comprehensive Income and Accumulated Other Comprehensive Income (tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure | ' | ||||||||||||||||
Changes in accumulated other comprehensive income (AOCI) [Table Text Block] | ' | ||||||||||||||||
(in millions) | Changes in Net | Changes in Net | Net Benefit Plan | Net Unrealized | Total Accumulated | ||||||||||||
Unrealized Gains on | Unrealized Gains on | Assets and | Foreign Currency | Other | |||||||||||||
Investment | Investment Securities | Obligations | Translation | Comprehensive | |||||||||||||
Securities Having No | Having Credit Losses | Recognized in | Income | ||||||||||||||
Credit Losses | Recognized in the | Shareholders’ Equity | |||||||||||||||
Recognized in the | Consolidated | ||||||||||||||||
Consolidated | Statement of Income | ||||||||||||||||
Statement of Income | |||||||||||||||||
Balance, December 31, 2013 | $ | 1,125 | $ | 197 | $ | (431 | ) | $ | (81 | ) | $ | 810 | |||||
Other comprehensive income (OCI) before reclassifications | 610 | — | — | (130 | ) | 480 | |||||||||||
Amounts reclassified from AOCI | (20 | ) | 2 | 28 | — | 10 | |||||||||||
Net OCI, current period | 590 | 2 | 28 | (130 | ) | 490 | |||||||||||
Balance, September 30, 2014 | $ | 1,715 | $ | 199 | $ | (403 | ) | $ | (211 | ) | $ | 1,300 | |||||
Pretax components of other comprehensive income (loss) and the related income tax expense (benefit) for each component [Table Text Block] | ' | ||||||||||||||||
(for the three months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | $ | (154 | ) | $ | (204 | ) | |||||||||||
Income tax benefit | (55 | ) | (72 | ) | |||||||||||||
Net of taxes | (99 | ) | (132 | ) | |||||||||||||
Having credit losses recognized in the consolidated statement of income | 1 | (2 | ) | ||||||||||||||
Income tax expense (benefit) | 1 | (1 | ) | ||||||||||||||
Net of taxes | — | (1 | ) | ||||||||||||||
Net changes in benefit plan assets and obligations | 15 | 24 | |||||||||||||||
Income tax expense | 5 | 9 | |||||||||||||||
Net of taxes | 10 | 15 | |||||||||||||||
Net changes in unrealized foreign currency translation | (203 | ) | 112 | ||||||||||||||
Income tax expense (benefit) | (30 | ) | 9 | ||||||||||||||
Net of taxes | (173 | ) | 103 | ||||||||||||||
Total other comprehensive loss | (341 | ) | (70 | ) | |||||||||||||
Total income tax benefit | (79 | ) | (55 | ) | |||||||||||||
Total other comprehensive loss, net of taxes | $ | (262 | ) | $ | (15 | ) | |||||||||||
(for the nine months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | $ | 901 | $ | (2,370 | ) | ||||||||||||
Income tax expense (benefit) | 311 | (824 | ) | ||||||||||||||
Net of taxes | 590 | (1,546 | ) | ||||||||||||||
Having credit losses recognized in the consolidated statement of income | 4 | 2 | |||||||||||||||
Income tax expense | 2 | — | |||||||||||||||
Net of taxes | 2 | 2 | |||||||||||||||
Net changes in benefit plan assets and obligations | 45 | 78 | |||||||||||||||
Income tax expense | 17 | 28 | |||||||||||||||
Net of taxes | 28 | 50 | |||||||||||||||
Net changes in unrealized foreign currency translation | (149 | ) | (57 | ) | |||||||||||||
Income tax benefit | (19 | ) | (20 | ) | |||||||||||||
Net of taxes | (130 | ) | (37 | ) | |||||||||||||
Total other comprehensive income (loss) | 801 | (2,347 | ) | ||||||||||||||
Total income tax expense (benefit) | 311 | (816 | ) | ||||||||||||||
Total other comprehensive income (loss), net of taxes | $ | 490 | $ | (1,531 | ) | ||||||||||||
Pretax components of the amounts reclassified from accumulated other comprehensive income and the related income tax expense (benefit) for each component [Table Text Block] | ' | ||||||||||||||||
(for the three months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Reclassification adjustments related to unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income (1) | $ | (1 | ) | $ | (4 | ) | |||||||||||
Income tax expense (2) | — | (1 | ) | ||||||||||||||
Net of taxes | (1 | ) | (3 | ) | |||||||||||||
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 (3) | 15 | 26 | |||||||||||||||
Income tax benefit (2) | 5 | 9 | |||||||||||||||
Net of taxes | 10 | 17 | |||||||||||||||
Reclassification adjustment related to foreign currency translation (1) | — | 11 | |||||||||||||||
Income tax benefit (2) | — | — | |||||||||||||||
Net of taxes | — | 11 | |||||||||||||||
Total reclassifications | 14 | 33 | |||||||||||||||
Total income tax benefit | 5 | 8 | |||||||||||||||
Total reclassifications, net of taxes | $ | 9 | $ | 25 | |||||||||||||
(1) (Increases) decreases net realized investment gains (losses) on the consolidated statement of income. | |||||||||||||||||
(2) (Increases) decreases income tax expense on the consolidated statement of income. | |||||||||||||||||
(3) Increases (decreases) general and administrative expenses on the consolidated statement of income. | |||||||||||||||||
(for the nine months ended September 30, in millions) | 2014 | 2013 | |||||||||||||||
Reclassification adjustments related to unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income (1) | $ | (30 | ) | $ | (55 | ) | |||||||||||
Income tax expense (2) | (10 | ) | (19 | ) | |||||||||||||
Net of taxes | (20 | ) | (36 | ) | |||||||||||||
Having credit losses recognized in the consolidated statement of income (1) | 4 | 2 | |||||||||||||||
Income tax benefit (2) | 2 | 1 | |||||||||||||||
Net of taxes | 2 | 1 | |||||||||||||||
Reclassification adjustment related to benefit plan assets and obligations (3) | 45 | 78 | |||||||||||||||
Income tax benefit (2) | 17 | 27 | |||||||||||||||
Net of taxes | 28 | 51 | |||||||||||||||
Reclassification adjustment related to foreign currency translation (1) | — | 8 | |||||||||||||||
Income tax benefit (2) | — | — | |||||||||||||||
Net of taxes | — | 8 | |||||||||||||||
Total reclassifications | 19 | 33 | |||||||||||||||
Total income tax benefit | 9 | 9 | |||||||||||||||
Total reclassifications, net of taxes | $ | 10 | $ | 24 | |||||||||||||
(1) (Increases) decreases net realized investment gains (losses) on the consolidated statement of income. | |||||||||||||||||
(2) (Increases) decreases income tax expense on the consolidated statement of income. | |||||||||||||||||
(3) Increases (decreases) general and administrative expenses on the consolidated statement of income. |
Earnings_per_Share_table
Earnings per Share (table) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings per Share disclosure | ' | |||||||||||||
Earnings per share reconciliation [Table Text Block] | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Basic and Diluted | ||||||||||||||
Net income, as reported | $ | 919 | $ | 864 | $ | 2,654 | $ | 2,685 | ||||||
Participating share-based awards — allocated income | (7 | ) | (6 | ) | (19 | ) | (20 | ) | ||||||
Net income available to common shareholders — basic and diluted | $ | 912 | $ | 858 | $ | 2,635 | $ | 2,665 | ||||||
Common Shares | ||||||||||||||
Basic | ||||||||||||||
Weighted average shares outstanding | 335.1 | 368.9 | 342.9 | 374.1 | ||||||||||
Diluted | ||||||||||||||
Weighted average shares outstanding | 335.1 | 368.9 | 342.9 | 374.1 | ||||||||||
Weighted average effects of dilutive securities — stock options and performance shares | 3.8 | 4 | 3.6 | 4 | ||||||||||
Total | 338.9 | 372.9 | 346.5 | 378.1 | ||||||||||
Net Income per Common Share | ||||||||||||||
Basic | $ | 2.72 | $ | 2.33 | $ | 7.68 | $ | 7.12 | ||||||
Diluted | $ | 2.69 | $ | 2.3 | $ | 7.6 | $ | 7.05 | ||||||
ShareBased_Incentive_Compensat1
Share-Based Incentive Compensation (table) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Share-Based Incentive Compensation disclosure | ' | |||||||||||
Information for fully vested stock option awards [Table Text Block] | ' | |||||||||||
Stock Options | Number | Weighted | Weighted | Aggregate | ||||||||
Average | Average | Intrinsic | ||||||||||
Exercise | Contractual | Value | ||||||||||
Price | Life | ($ in millions) | ||||||||||
Remaining | ||||||||||||
Vested at end of period (1) | 7,597,990 | $ | 58.48 | 6.0 years | $ | 269 | ||||||
Exercisable at end of period | 4,775,291 | $ | 50.4 | 4.6 years | $ | 208 | ||||||
(1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. |
Pension_Plans_Retirement_Benef1
Pension Plans, Retirement Benefits and Savings Plans (table) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Pension Plans, Retirement Benefits and Savings Plans disclosure | ' | |||||||||||||
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] | ' | |||||||||||||
(for the three months ended September 30, in | Pension Plans | Postretirement Benefit Plans | ||||||||||||
millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 27 | $ | 30 | $ | — | $ | — | ||||||
Interest cost on benefit obligation | 38 | 33 | 3 | 3 | ||||||||||
Expected return on plan assets | (55 | ) | (52 | ) | — | — | ||||||||
Amortization of unrecognized: | ||||||||||||||
Prior service benefit | — | — | (1 | ) | (1 | ) | ||||||||
Net actuarial (gain) loss | 17 | 27 | (1 | ) | — | |||||||||
Net periodic benefit cost | $ | 27 | $ | 38 | $ | 1 | $ | 2 | ||||||
(for the nine months ended September 30, in | Pension Plans | Postretirement Benefit Plans | ||||||||||||
millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Service cost | $ | 82 | $ | 89 | $ | — | $ | — | ||||||
Interest cost on benefit obligation | 113 | 99 | 8 | 7 | ||||||||||
Expected return on plan assets | (164 | ) | (156 | ) | — | — | ||||||||
Amortization of unrecognized: | ||||||||||||||
Prior service benefit | — | — | (2 | ) | (2 | ) | ||||||||
Net actuarial (gain) loss | 49 | 80 | (2 | ) | — | |||||||||
Net periodic benefit cost | $ | 80 | $ | 112 | $ | 4 | $ | 5 |
Consolidating_Financial_Statem1
Consolidating Financial Statements (Unaudited) (tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure | ' | ||||||||||||||||
Consolidating Statement of Income (Unaudited) [Table Text Block] | ' | ||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited) | |||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 4,064 | $ | 1,919 | $ | — | $ | — | $ | 5,983 | |||||||
Net investment income | 479 | 239 | 1 | — | 719 | ||||||||||||
Fee income | 110 | — | — | — | 110 | ||||||||||||
Net realized investment gains (losses)(1) | (2 | ) | 41 | 1 | — | 40 | |||||||||||
Other revenues | 28 | 6 | — | — | 34 | ||||||||||||
Total revenues | 4,679 | 2,205 | 2 | — | 6,886 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 2,359 | 1,161 | — | — | 3,520 | ||||||||||||
Amortization of deferred acquisition costs | 642 | 342 | — | — | 984 | ||||||||||||
General and administrative expenses | 716 | 311 | 4 | — | 1,031 | ||||||||||||
Interest expense | 12 | — | 81 | — | 93 | ||||||||||||
Total claims and expenses | 3,729 | 1,814 | 85 | — | 5,628 | ||||||||||||
Income (loss) before income taxes | 950 | 391 | (83 | ) | — | 1,258 | |||||||||||
Income tax expense (benefit) | 263 | 106 | (30 | ) | — | 339 | |||||||||||
Net income of subsidiaries | — | — | 972 | (972 | ) | — | |||||||||||
Net income | $ | 687 | $ | 285 | $ | 919 | $ | (972 | ) | $ | 919 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the three months ended September 30, 2014, 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 | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI gains (losses) | $ | (8 | ) | $ | — | $ | — | $ | — | $ | (8 | ) | |||||
OTTI losses recognized in net realized investment gains (losses) | $ | (9 | ) | $ | (1 | ) | $ | — | $ | — | $ | (10 | ) | ||||
OTTI gains recognized in OCI | $ | 1 | $ | 1 | $ | — | $ | — | $ | 2 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited) | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 3,839 | $ | 1,827 | $ | — | $ | — | $ | 5,666 | |||||||
Net investment income | 438 | 217 | 2 | — | 657 | ||||||||||||
Fee income | 106 | 1 | — | — | 107 | ||||||||||||
Net realized investment gains (losses) (1) | 3 | (25 | ) | — | — | (22 | ) | ||||||||||
Other revenues | 38 | 6 | — | — | 44 | ||||||||||||
Total revenues | 4,424 | 2,026 | 2 | — | 6,452 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 2,214 | 1,083 | — | — | 3,297 | ||||||||||||
Amortization of deferred acquisition costs | 640 | 313 | — | — | 953 | ||||||||||||
General and administrative expenses | 646 | 286 | 2 | — | 934 | ||||||||||||
Interest expense | 12 | — | 79 | — | 91 | ||||||||||||
Total claims and expenses | 3,512 | 1,682 | 81 | — | 5,275 | ||||||||||||
Income (loss) before income taxes | 912 | 344 | (79 | ) | — | 1,177 | |||||||||||
Income tax expense (benefit) | 248 | 93 | (28 | ) | — | 313 | |||||||||||
Net income of subsidiaries | — | — | 915 | (915 | ) | — | |||||||||||
Net income | $ | 664 | $ | 251 | $ | 864 | $ | (915 | ) | $ | 864 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the three months ended September 30, 2013, 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 | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI gains (losses) | $ | 1 | $ | (1 | ) | $ | — | $ | — | $ | — | ||||||
OTTI losses recognized in net realized investment gains (losses) | $ | (2 | ) | $ | (1 | ) | $ | — | $ | — | $ | (3 | ) | ||||
OTTI gains recognized in OCI | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 12,028 | $ | 5,706 | $ | — | $ | — | $ | 17,734 | |||||||
Net investment income | 1,451 | 695 | 4 | — | 2,150 | ||||||||||||
Fee income | 328 | 1 | — | — | 329 | ||||||||||||
Net realized investment gains (1) | 4 | 50 | 3 | — | 57 | ||||||||||||
Other revenues | 93 | 16 | — | — | 109 | ||||||||||||
Total revenues | 13,904 | 6,468 | 7 | — | 20,379 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 7,149 | 3,512 | — | — | 10,661 | ||||||||||||
Amortization of deferred acquisition costs | 1,927 | 972 | — | — | 2,899 | ||||||||||||
General and administrative expenses | 2,026 | 876 | 11 | — | 2,913 | ||||||||||||
Interest expense | 36 | — | 241 | — | 277 | ||||||||||||
Total claims and expenses | 11,138 | 5,360 | 252 | — | 16,750 | ||||||||||||
Income (loss) before income taxes | 2,766 | 1,108 | (245 | ) | — | 3,629 | |||||||||||
Income tax expense (benefit) | 770 | 291 | (86 | ) | — | 975 | |||||||||||
Net income of subsidiaries | — | — | 2,813 | (2,813 | ) | — | |||||||||||
Net income | $ | 1,996 | $ | 817 | $ | 2,654 | $ | (2,813 | ) | $ | 2,654 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the nine months ended September 30, 2014, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows: | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI losses | $ | (11 | ) | $ | (5 | ) | $ | — | $ | — | $ | (16 | ) | ||||
OTTI losses recognized in net realized investment gains | $ | (14 | ) | $ | (6 | ) | $ | — | $ | — | $ | (20 | ) | ||||
OTTI gains recognized in OCI | $ | 3 | $ | 1 | $ | — | $ | — | $ | 4 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Revenues | |||||||||||||||||
Premiums | $ | 11,384 | $ | 5,402 | $ | — | $ | — | $ | 16,786 | |||||||
Net investment income | 1,350 | 659 | 5 | — | 2,014 | ||||||||||||
Fee income | 284 | 2 | — | — | 286 | ||||||||||||
Net realized investment gains (1) | 120 | 34 | 1 | — | 155 | ||||||||||||
Other revenues | 170 | 43 | — | — | 213 | ||||||||||||
Total revenues | 13,308 | 6,140 | 6 | — | 19,454 | ||||||||||||
Claims and expenses | |||||||||||||||||
Claims and claim adjustment expenses | 6,684 | 3,296 | — | — | 9,980 | ||||||||||||
Amortization of deferred acquisition costs | 1,912 | 939 | — | — | 2,851 | ||||||||||||
General and administrative expenses | 1,915 | 861 | 4 | — | 2,780 | ||||||||||||
Interest expense | 41 | — | 228 | — | 269 | ||||||||||||
Total claims and expenses | 10,552 | 5,096 | 232 | — | 15,880 | ||||||||||||
Income (loss) before income taxes | 2,756 | 1,044 | (226 | ) | — | 3,574 | |||||||||||
Income tax expense (benefit) | 700 | 269 | (80 | ) | — | 889 | |||||||||||
Net income of subsidiaries | — | — | 2,831 | (2,831 | ) | — | |||||||||||
Net income | $ | 2,056 | $ | 775 | $ | 2,685 | $ | (2,831 | ) | $ | 2,685 | ||||||
(1) Total other-than-temporary impairments (OTTI) for the nine months ended September 30, 2013, and the amounts comprising total OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI) were as follows: | |||||||||||||||||
(in millions) | TPC | Other | Travelers (2) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Total OTTI gains (losses) | $ | (3 | ) | $ | 2 | $ | — | $ | — | $ | (1 | ) | |||||
OTTI losses recognized in net realized investment gains | $ | (7 | ) | $ | (3 | ) | $ | — | $ | — | $ | (10 | ) | ||||
OTTI gains recognized in OCI | $ | 4 | $ | 5 | $ | — | $ | — | $ | 9 | |||||||
(2) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
Consolidating Statement of Comprehensive Income (Unaudited) [Table Text Block] | ' | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 687 | $ | 285 | $ | 919 | $ | (972 | ) | $ | 919 | ||||||
Other comprehensive income (loss): | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | (118 | ) | (35 | ) | (1 | ) | — | (154 | ) | ||||||||
Having credit losses recognized in the consolidated statement of income | 2 | (1 | ) | — | — | 1 | |||||||||||
Net changes in benefit plan assets and obligations | — | 1 | 14 | — | 15 | ||||||||||||
Net changes in unrealized foreign currency translation | (120 | ) | (83 | ) | — | — | (203 | ) | |||||||||
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries | (236 | ) | (118 | ) | 13 | — | (341 | ) | |||||||||
Income tax expense (benefit) | (62 | ) | (22 | ) | 5 | — | (79 | ) | |||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries | (174 | ) | (96 | ) | 8 | — | (262 | ) | |||||||||
Other comprehensive loss of subsidiaries | — | — | (270 | ) | 270 | — | |||||||||||
Other comprehensive loss | (174 | ) | (96 | ) | (262 | ) | 270 | (262 | ) | ||||||||
Comprehensive income | $ | 513 | $ | 189 | $ | 657 | $ | (702 | ) | $ | 657 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 664 | $ | 251 | $ | 864 | $ | (915 | ) | $ | 864 | ||||||
Other comprehensive income (loss): | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | (138 | ) | (71 | ) | 5 | — | (204 | ) | |||||||||
Having credit losses recognized in the consolidated statement of income | (1 | ) | (1 | ) | — | — | (2 | ) | |||||||||
Net changes in benefit plan assets and obligations | — | (1 | ) | 25 | — | 24 | |||||||||||
Net changes in unrealized foreign currency translation | 26 | 86 | — | — | 112 | ||||||||||||
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries | (113 | ) | 13 | 30 | — | (70 | ) | ||||||||||
Income tax expense (benefit) | (46 | ) | (20 | ) | 11 | — | (55 | ) | |||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries | (67 | ) | 33 | 19 | — | (15 | ) | ||||||||||
Other comprehensive loss of subsidiaries | — | — | (34 | ) | 34 | — | |||||||||||
Other comprehensive income (loss) | (67 | ) | 33 | (15 | ) | 34 | (15 | ) | |||||||||
Comprehensive income | $ | 597 | $ | 284 | $ | 849 | $ | (881 | ) | $ | 849 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 1,996 | $ | 817 | $ | 2,654 | $ | (2,813 | ) | $ | 2,654 | ||||||
Other comprehensive income: | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | 632 | 266 | 3 | — | 901 | ||||||||||||
Having credit losses recognized in the consolidated statement of income | 11 | (7 | ) | — | — | 4 | |||||||||||
Net changes in benefit plan assets and obligations | — | 1 | 44 | — | 45 | ||||||||||||
Net changes in unrealized foreign currency translation | (94 | ) | (55 | ) | — | — | (149 | ) | |||||||||
Other comprehensive income before income taxes and other comprehensive income of subsidiaries | 549 | 205 | 47 | — | 801 | ||||||||||||
Income tax expense | 210 | 84 | 17 | — | 311 | ||||||||||||
Other comprehensive income, net of taxes, before other comprehensive income of subsidiaries | 339 | 121 | 30 | — | 490 | ||||||||||||
Other comprehensive income of subsidiaries | — | — | 460 | (460 | ) | — | |||||||||||
Other comprehensive income | 339 | 121 | 490 | (460 | ) | 490 | |||||||||||
Comprehensive income | $ | 2,335 | $ | 938 | $ | 3,144 | $ | (3,273 | ) | $ | 3,144 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Net income | $ | 2,056 | $ | 775 | $ | 2,685 | $ | (2,831 | ) | $ | 2,685 | ||||||
Other comprehensive income (loss): | |||||||||||||||||
Changes in net unrealized gains on investment securities: | |||||||||||||||||
Having no credit losses recognized in the consolidated statement of income | (1,735 | ) | (647 | ) | 12 | — | (2,370 | ) | |||||||||
Having credit losses recognized in the consolidated statement of income | 4 | (2 | ) | — | — | 2 | |||||||||||
Net changes in benefit plan assets and obligations | 1 | 2 | 75 | — | 78 | ||||||||||||
Net changes in unrealized foreign currency translation | (35 | ) | (22 | ) | — | — | (57 | ) | |||||||||
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries | (1,765 | ) | (669 | ) | 87 | — | (2,347 | ) | |||||||||
Income tax expense (benefit) | (616 | ) | (231 | ) | 31 | — | (816 | ) | |||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries | (1,149 | ) | (438 | ) | 56 | — | (1,531 | ) | |||||||||
Other comprehensive loss of subsidiaries | — | — | (1,587 | ) | 1,587 | — | |||||||||||
Other comprehensive loss | (1,149 | ) | (438 | ) | (1,531 | ) | 1,587 | (1,531 | ) | ||||||||
Comprehensive income | $ | 907 | $ | 337 | $ | 1,154 | $ | (1,244 | ) | $ | 1,154 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
Consolidating Balance Sheet (Unaudited) [Table Text Block] | ' | ||||||||||||||||
CONSOLIDATING BALANCE SHEET (Unaudited) | |||||||||||||||||
At September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Fixed maturities, available for sale, at fair value (amortized cost $61,043) | $ | 43,493 | $ | 20,090 | $ | 39 | $ | — | $ | 63,622 | |||||||
Equity securities, available for sale, at fair value (cost $609) | 271 | 542 | 136 | — | 949 | ||||||||||||
Real estate investments | 56 | 893 | — | — | 949 | ||||||||||||
Short-term securities | 2,413 | 812 | 1,808 | — | 5,033 | ||||||||||||
Other investments | 2,658 | 978 | 1 | — | 3,637 | ||||||||||||
Total investments | 48,891 | 23,315 | 1,984 | — | 74,190 | ||||||||||||
Cash | 216 | 149 | 2 | — | 367 | ||||||||||||
Investment income accrued | 451 | 206 | 6 | — | 663 | ||||||||||||
Premiums receivable | 4,353 | 2,086 | — | — | 6,439 | ||||||||||||
Reinsurance recoverables | 6,214 | 3,065 | — | — | 9,279 | ||||||||||||
Ceded unearned premiums | 738 | 110 | — | — | 848 | ||||||||||||
Deferred acquisition costs | 1,666 | 224 | — | — | 1,890 | ||||||||||||
Contractholder receivables | 3,274 | 1,093 | — | — | 4,367 | ||||||||||||
Goodwill | 2,609 | 1,012 | — | — | 3,621 | ||||||||||||
Other intangible assets | 225 | 91 | — | — | 316 | ||||||||||||
Investment in subsidiaries | — | — | 28,950 | (28,950 | ) | — | |||||||||||
Other assets | 2,011 | 363 | 168 | — | 2,542 | ||||||||||||
Total assets | $ | 70,648 | $ | 31,714 | $ | 31,110 | $ | (28,950 | ) | $ | 104,522 | ||||||
Liabilities | |||||||||||||||||
Claims and claim adjustment expense reserves | $ | 33,414 | $ | 16,988 | $ | — | $ | — | $ | 50,402 | |||||||
Unearned premium reserves | 8,463 | 3,718 | — | — | 12,181 | ||||||||||||
Contractholder payables | 3,274 | 1,093 | — | — | 4,367 | ||||||||||||
Payables for reinsurance premiums | 286 | 205 | — | — | 491 | ||||||||||||
Deferred taxes | 24 | 44 | 54 | — | 122 | ||||||||||||
Debt | 692 | — | 5,656 | — | 6,348 | ||||||||||||
Other liabilities | 4,039 | 1,160 | 91 | — | 5,290 | ||||||||||||
Total liabilities | 50,192 | 23,208 | 5,801 | — | 79,201 | ||||||||||||
Shareholders’ equity | |||||||||||||||||
Common stock (1,750.0 shares authorized; 331.4 shares issued and outstanding) | — | 390 | 21,764 | (390 | ) | 21,764 | |||||||||||
Additional paid-in capital | 11,634 | 6,502 | — | (18,136 | ) | — | |||||||||||
Retained earnings | 7,716 | 1,070 | 26,382 | (8,774 | ) | 26,394 | |||||||||||
Accumulated other comprehensive income | 1,106 | 544 | 1,300 | (1,650 | ) | 1,300 | |||||||||||
Treasury stock, at cost (427.6 shares) | — | — | (24,137 | ) | — | (24,137 | ) | ||||||||||
Total shareholders’ equity | 20,456 | 8,506 | 25,309 | (28,950 | ) | 25,321 | |||||||||||
Total liabilities and shareholders’ equity | $ | 70,648 | $ | 31,714 | $ | 31,110 | $ | (28,950 | ) | $ | 104,522 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING BALANCE SHEET (Unaudited) | |||||||||||||||||
At December 31, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Fixed maturities, available for sale, at fair value (amortized cost $62,196) | $ | 43,720 | $ | 20,199 | $ | 37 | $ | — | $ | 63,956 | |||||||
Equity securities, available for sale, at fair value (cost $686) | 329 | 484 | 130 | — | 943 | ||||||||||||
Real estate investments | 33 | 905 | — | — | 938 | ||||||||||||
Short-term securities | 1,867 | 492 | 1,523 | — | 3,882 | ||||||||||||
Other investments | 2,450 | 990 | 1 | — | 3,441 | ||||||||||||
Total investments | 48,399 | 23,070 | 1,691 | — | 73,160 | ||||||||||||
Cash | 137 | 154 | 3 | — | 294 | ||||||||||||
Investment income accrued | 499 | 231 | 4 | — | 734 | ||||||||||||
Premiums receivable | 4,124 | 2,001 | — | — | 6,125 | ||||||||||||
Reinsurance recoverables | 6,292 | 3,421 | — | — | 9,713 | ||||||||||||
Ceded unearned premiums | 712 | 89 | — | — | 801 | ||||||||||||
Deferred acquisition costs | 1,570 | 234 | — | — | 1,804 | ||||||||||||
Deferred taxes | 279 | 86 | (62 | ) | — | 303 | |||||||||||
Contractholder receivables | 3,179 | 1,149 | — | — | 4,328 | ||||||||||||
Goodwill | 2,619 | 1,015 | — | — | 3,634 | ||||||||||||
Other intangible assets | 250 | 101 | — | — | 351 | ||||||||||||
Investment in subsidiaries | — | — | 28,616 | (28,616 | ) | — | |||||||||||
Other assets | 2,010 | 357 | 198 | — | 2,565 | ||||||||||||
Total assets | $ | 70,070 | $ | 31,908 | $ | 30,450 | $ | (28,616 | ) | $ | 103,812 | ||||||
Liabilities | |||||||||||||||||
Claims and claim adjustment expense reserves | $ | 33,506 | $ | 17,389 | $ | — | $ | — | $ | 50,895 | |||||||
Unearned premium reserves | 8,188 | 3,662 | — | — | 11,850 | ||||||||||||
Contractholder payables | 3,179 | 1,149 | — | — | 4,328 | ||||||||||||
Payables for reinsurance premiums | 127 | 171 | — | — | 298 | ||||||||||||
Debt | 692 | — | 5,654 | — | 6,346 | ||||||||||||
Other liabilities | 4,109 | 1,180 | 10 | — | 5,299 | ||||||||||||
Total liabilities | 49,801 | 23,551 | 5,664 | — | 79,016 | ||||||||||||
Shareholders’ equity | |||||||||||||||||
Common stock (1,750.0 shares authorized; 353.5 shares issued and outstanding) | — | 390 | 21,500 | (390 | ) | 21,500 | |||||||||||
Additional paid-in capital | 11,634 | 6,502 | — | (18,136 | ) | — | |||||||||||
Retained earnings | 7,868 | 1,042 | 24,281 | (8,900 | ) | 24,291 | |||||||||||
Accumulated other comprehensive income | 767 | 423 | 810 | (1,190 | ) | 810 | |||||||||||
Treasury stock, at cost (401.5 shares) | — | — | (21,805 | ) | — | (21,805 | ) | ||||||||||
Total shareholders’ equity | 20,269 | 8,357 | 24,786 | (28,616 | ) | 24,796 | |||||||||||
Total liabilities and shareholders’ equity | $ | 70,070 | $ | 31,908 | $ | 30,450 | $ | (28,616 | ) | $ | 103,812 | ||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
Consolidating Statement of Cash Flows (Unaudited) [Table Text Block] | ' | ||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 1,996 | $ | 817 | $ | 2,654 | $ | (2,813 | ) | $ | 2,654 | ||||||
Net adjustments to reconcile net income to net cash provided by operating activities | 391 | (73 | ) | 322 | (126 | ) | 514 | ||||||||||
Net cash provided by operating activities | 2,387 | 744 | 2,976 | (2,939 | ) | 3,168 | |||||||||||
Cash flows from investing activities | |||||||||||||||||
Proceeds from maturities of fixed maturities | 4,886 | 3,088 | 1 | — | 7,975 | ||||||||||||
Proceeds from sales of investments: | |||||||||||||||||
Fixed maturities | 511 | 415 | 1 | — | 927 | ||||||||||||
Equity securities | 83 | 41 | 4 | — | 128 | ||||||||||||
Real estate investments | 1 | 4 | — | — | 5 | ||||||||||||
Other investments | 317 | 295 | — | — | 612 | ||||||||||||
Purchases of investments: | |||||||||||||||||
Fixed maturities | (4,888 | ) | (3,345 | ) | (4 | ) | — | (8,237 | ) | ||||||||
Equity securities | (3 | ) | (38 | ) | (6 | ) | — | (47 | ) | ||||||||
Real estate investments | (22 | ) | (19 | ) | — | — | (41 | ) | |||||||||
Other investments | (292 | ) | (114 | ) | — | — | (406 | ) | |||||||||
Net purchases of short-term securities | (552 | ) | (326 | ) | (285 | ) | — | (1,163 | ) | ||||||||
Securities transactions in course of settlement | 66 | 53 | — | — | 119 | ||||||||||||
Acquisitions, net of cash acquired | (9 | ) | (3 | ) | — | — | (12 | ) | |||||||||
Other | (256 | ) | (6 | ) | — | — | (262 | ) | |||||||||
Net cash provided by (used in) investing activities | (158 | ) | 45 | (289 | ) | — | (402 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Dividends paid to shareholders | — | — | (549 | ) | — | (549 | ) | ||||||||||
Issuance of common stock — employee share options | — | — | 154 | — | 154 | ||||||||||||
Treasury stock acquired — share repurchase authorization | — | — | (2,275 | ) | — | (2,275 | ) | ||||||||||
Treasury stock acquired — net employee share-based compensation | — | — | (56 | ) | — | (56 | ) | ||||||||||
Excess tax benefits from share-based payment arrangements | — | — | 38 | — | 38 | ||||||||||||
Dividends paid to parent company | (2,150 | ) | (789 | ) | — | 2,939 | — | ||||||||||
Net cash used in financing activities | (2,150 | ) | (789 | ) | (2,688 | ) | 2,939 | (2,688 | ) | ||||||||
Effect of exchange rate changes on cash | — | (5 | ) | — | — | (5 | ) | ||||||||||
Net increase (decrease) in cash | 79 | (5 | ) | (1 | ) | — | 73 | ||||||||||
Cash at beginning of year | 137 | 154 | 3 | — | 294 | ||||||||||||
Cash at end of period | $ | 216 | $ | 149 | $ | 2 | $ | — | $ | 367 | |||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Income taxes paid (received) | $ | 684 | $ | 215 | $ | (114 | ) | $ | — | $ | 785 | ||||||
Interest paid | $ | 40 | $ | — | $ | 177 | $ | — | $ | 217 | |||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. | |||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(in millions) | TPC | Other | Travelers (1) | Eliminations | Consolidated | ||||||||||||
Subsidiaries | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 2,056 | $ | 775 | $ | 2,685 | $ | (2,831 | ) | $ | 2,685 | ||||||
Net adjustments to reconcile net income to net cash provided by operating activities | (348 | ) | 224 | (1,531 | ) | 1,859 | 204 | ||||||||||
Net cash provided by operating activities | 1,708 | 999 | 1,154 | (972 | ) | 2,889 | |||||||||||
Cash flows from investing activities | |||||||||||||||||
Proceeds from maturities of fixed maturities | 4,096 | 1,820 | 1 | — | 5,917 | ||||||||||||
Proceeds from sales of investments: | |||||||||||||||||
Fixed maturities | 590 | 565 | 5 | — | 1,160 | ||||||||||||
Equity securities | 21 | 36 | — | — | 57 | ||||||||||||
Other investments | 337 | 208 | — | — | 545 | ||||||||||||
Purchases of investments: | |||||||||||||||||
Fixed maturities | (4,339 | ) | (2,146 | ) | (7 | ) | — | (6,492 | ) | ||||||||
Equity securities | (20 | ) | (29 | ) | (1 | ) | — | (50 | ) | ||||||||
Real estate investments | — | (65 | ) | — | — | (65 | ) | ||||||||||
Other investments | (222 | ) | (90 | ) | — | — | (312 | ) | |||||||||
Net sales (purchases) of short-term securities | (1,563 | ) | (492 | ) | 162 | — | (1,893 | ) | |||||||||
Securities transactions in course of settlement | 182 | 98 | — | — | 280 | ||||||||||||
Other | (250 | ) | (4 | ) | — | — | (254 | ) | |||||||||
Net cash provided by (used in) investing activities | (1,168 | ) | (99 | ) | 160 | — | (1,107 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Payment of debt | (500 | ) | — | — | — | (500 | ) | ||||||||||
Issuance of debt | — | — | 494 | — | 494 | ||||||||||||
Dividends paid to shareholders | — | — | (549 | ) | — | (549 | ) | ||||||||||
Issuance of common stock — employee share options | — | — | 158 | — | 158 | ||||||||||||
Treasury stock acquired — share repurchase authorization | — | — | (1,400 | ) | — | (1,400 | ) | ||||||||||
Treasury stock acquired — net employee share-based compensation | — | — | (60 | ) | — | (60 | ) | ||||||||||
Excess tax benefits from share-based payment arrangements | — | — | 43 | — | 43 | ||||||||||||
Capital contributions | 500 | — | — | (500 | ) | — | |||||||||||
Dividends paid to parent company | (587 | ) | (885 | ) | — | 1,472 | — | ||||||||||
Net cash used in financing activities | (587 | ) | (885 | ) | (1,314 | ) | 972 | (1,814 | ) | ||||||||
Effect of exchange rate changes on cash | — | (3 | ) | — | — | (3 | ) | ||||||||||
Net increase (decrease) in cash | (47 | ) | 12 | — | — | (35 | ) | ||||||||||
Cash at beginning of year | 177 | 151 | 2 | — | 330 | ||||||||||||
Cash at end of period | $ | 130 | $ | 163 | $ | 2 | $ | — | $ | 295 | |||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Income taxes paid (received) | $ | 691 | $ | 236 | $ | (203 | ) | $ | — | $ | 724 | ||||||
Interest paid | $ | 52 | $ | — | $ | 154 | $ | — | $ | 206 | |||||||
(1) The Travelers Companies, Inc., excluding its subsidiaries. |
Basis_of_Presentation_and_Acco2
Basis of Presentation and Accounting Policies (details) | 9 Months Ended |
Sep. 30, 2014 | |
item | |
Basis of Presentation and Accounting Policies disclosure | ' |
Number of reportable business segments impacted by announced realignment | 2 |
Number of reportable business segments | 3 |
Basis_of_Presentation_and_Acco3
Basis of Presentation and Accounting Policies (details) - Dominion (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 01, 2013 |
Dominion [Member] | |||
Business Acquisition | ' | ' | ' |
Purchase price | ' | ' | $1,035,000,000 |
Assets acquired | ' | ' | 3,910,000,000 |
Liabilities assumed | ' | ' | 2,880,000,000 |
Intangible assets acquired | ' | ' | 16,000,000 |
Goodwill acquired | $3,621,000,000 | $3,634,000,000 | $273,000,000 |
Basis_of_Presentation_and_Acco4
Basis of Presentation and Accounting Policies (details) - Equity Method Investment (JMalucelli - Brazilian joint venture [Member]) | Sep. 30, 2014 |
JMalucelli - Brazilian joint venture [Member] | ' |
Equity method investment | ' |
Percent of common stock owned | 49.50% |
Segment_Information_details
Segment Information (details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | $5,983 | $5,666 | $17,734 | $16,786 | ||||
Net investment income | 719 | 657 | 2,150 | 2,014 | ||||
Fee income | 110 | 107 | 329 | 286 | ||||
Other revenues | 34 | 44 | 109 | 213 | ||||
Operating income | 893 | 883 | 2,618 | 2,586 | ||||
Net realized investment gains (losses) | 40 | [1] | -22 | [1] | 57 | [1] | 155 | [1] |
Total revenues | 6,886 | 6,452 | 20,379 | 19,454 | ||||
Net realized investment gains (losses), net of tax | 26 | -19 | 36 | 99 | ||||
Net income | 919 | 864 | 2,654 | 2,685 | ||||
Reportable Segments [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 5,983 | 5,666 | 17,734 | 16,786 | ||||
Net investment income | 719 | 657 | 2,150 | 2,014 | ||||
Fee income | 110 | 107 | 329 | 286 | ||||
Other revenues | 34 | 47 | 109 | 217 | ||||
Total operating revenues | 6,846 | 6,477 | 20,322 | 19,303 | ||||
Operating income | 956 | 948 | 2,810 | 2,773 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 3,660 | 3,325 | 10,849 | 9,801 | ||||
Net investment income | 557 | 504 | 1,666 | 1,544 | ||||
Fee income | 110 | 107 | 329 | 286 | ||||
Other revenues | 10 | 8 | 32 | 135 | ||||
Total operating revenues | 4,337 | 3,944 | 12,876 | 11,766 | ||||
Operating income | 552 | 566 | 1,717 | 1,773 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | International [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 553 | 279 | 1,659 | 795 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | Domestic [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 3,107 | 3,046 | 9,190 | 9,006 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | Domestic [Member] | Workers' compensation [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 928 | 896 | 2,759 | 2,640 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | Domestic [Member] | Automobile [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 481 | 476 | 1,422 | 1,425 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | Domestic [Member] | Commercial Property [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 442 | 432 | 1,310 | 1,259 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | Domestic [Member] | General Liability [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 472 | 452 | 1,376 | 1,333 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | Domestic [Member] | Commercial multi-peril [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 774 | 779 | 2,292 | 2,320 | ||||
Reportable Segments [Member] | Business and International Insurance [Member] | Domestic [Member] | Other [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 10 | 11 | 31 | 29 | ||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 527 | 506 | 1,554 | 1,476 | ||||
Net investment income | 64 | 63 | 192 | 195 | ||||
Other revenues | 5 | 5 | 15 | 15 | ||||
Total operating revenues | 596 | 574 | 1,761 | 1,686 | ||||
Operating income | 165 | 120 | 511 | 399 | ||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | General Liability [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 243 | 227 | 721 | 661 | ||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Other [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 44 | 44 | 133 | 132 | ||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 240 | 235 | 700 | 683 | ||||
Reportable Segments [Member] | Personal Insurance [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 1,796 | 1,835 | 5,331 | 5,509 | ||||
Net investment income | 98 | 90 | 292 | 275 | ||||
Other revenues | 19 | 34 | 62 | 67 | ||||
Total operating revenues | 1,913 | 1,959 | 5,685 | 5,851 | ||||
Operating income | 239 | 262 | 582 | 601 | ||||
Reportable Segments [Member] | Personal Insurance [Member] | Automobile [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 835 | 855 | 2,471 | 2,591 | ||||
Reportable Segments [Member] | Personal Insurance [Member] | Homeowners and other [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Premiums | 961 | 980 | 2,860 | 2,918 | ||||
Interest Expense & Other [Member] | ' | ' | ' | ' | ||||
Segment reporting information | ' | ' | ' | ' | ||||
Other revenues | ' | -3 | ' | -4 | ||||
Operating income | -63 | -65 | -192 | -187 | ||||
After-tax interest expense | $60 | $59 | $180 | $175 | ||||
[1] | Total other-than-temporary impairment (OTTI) gains (losses) were $(8) million and $0 million for the three months ended September 30, 2014 and 2013, respectively, and $(16) million and $(1) million for the nine months ended September 30, 2014 and 2013, respectively. Of total OTTI, credit losses of $(10) million and $(3) million for the three months ended September 30, 2014 and 2013, respectively, and $(20) million and $(10) million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains from other changes in total OTTI of $2 million and $3 million for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Segment_Information_details_As
Segment Information (details) - Assets by Segment (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets by segment | ' | ' |
Total assets | $104,522 | $103,812 |
Reportable Segments [Member] | ' | ' |
Assets by segment | ' | ' |
Total assets | 104,064 | 103,307 |
Reportable Segments [Member] | Business and International Insurance [Member] | ' | ' |
Assets by segment | ' | ' |
Total assets | 83,218 | 82,789 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ' | ' |
Assets by segment | ' | ' |
Total assets | 7,871 | 7,648 |
Reportable Segments [Member] | Personal Insurance [Member] | ' | ' |
Assets by segment | ' | ' |
Total assets | 12,975 | 12,870 |
Interest Expense & Other [Member] | ' | ' |
Assets by segment | ' | ' |
Total assets | $458 | $505 |
Investments_details
Investments (details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | $61,043 | $62,196 |
Fixed maturities, at fair value | 63,622 | 63,956 |
Equity securities, cost | 609 | 686 |
Equity securities, at fair value | 949 | 943 |
Continuous unrealized loss position less than 12 months, fair value | 4,893 | 13,836 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 40 | 592 |
Continuous unrealized loss position 12 months or longer, fair value | 4,900 | 875 |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 136 | 111 |
Continuous unrealized loss position, total, fair value | 9,793 | 14,711 |
Continuous unrealized loss position, total, gross unrealized losses | 176 | 703 |
Available-for-sale securities for which fair value is less than 80% of amortized cost, greater than 6 months, 12 months or less | 2 | ' |
Available-for-sale securities for which fair value is less than 80% of amortized cost, greater than 12 months | 2 | ' |
Available-for-sale securities for which fair value is less than 80% of amortized cost, total | 4 | ' |
Maxiumum [Member] | ' | ' |
Investment disclosure details | ' | ' |
Unrealized investment losses for securities for which fair value is less than 80% of amortized cost, as a percentage of the combined fixed maturity and equity security portfolios on a pretax basis | 1.00% | ' |
Unrealized investment losses for securities for which fair value is less than 80% of amortized cost, as a percentage of shareholders' equity on an after-tax basis | 1.00% | ' |
Fixed maturities [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 61,043 | 62,196 |
Gross unrealized gains | 2,753 | 2,460 |
Gross unrealized losses | 174 | 700 |
Fixed maturities, at fair value | 63,622 | 63,956 |
Continuous unrealized loss position less than 12 months, fair value | 4,749 | 13,636 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 38 | 589 |
Continuous unrealized loss position 12 months or longer, fair value | 4,899 | 875 |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 136 | 111 |
Continuous unrealized loss position, total, fair value | 9,648 | 14,511 |
Continuous unrealized loss position, total, gross unrealized losses | 174 | 700 |
Available-for-sale securities for which fair value is less than 80% of amortized cost, greater than 6 months, 12 months or less | 2 | ' |
Available-for-sale securities for which fair value is less than 80% of amortized cost, greater than 12 months | 2 | ' |
Available-for-sale securities for which fair value is less than 80% of amortized cost, total | 4 | ' |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 2,050 | 2,288 |
Gross unrealized gains | 31 | 39 |
Gross unrealized losses | 7 | 12 |
Fixed maturities, at fair value | 2,074 | 2,315 |
Continuous unrealized loss position less than 12 months, fair value | 172 | 433 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 2 | 12 |
Continuous unrealized loss position 12 months or longer, fair value | 105 | ' |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 5 | ' |
Continuous unrealized loss position, total, fair value | 277 | 433 |
Continuous unrealized loss position, total, gross unrealized losses | 7 | 12 |
Obligations of states, municipalities and political subdivisions [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 32,246 | 34,488 |
Gross unrealized gains | 1,684 | 1,436 |
Gross unrealized losses | 33 | 362 |
Fixed maturities, at fair value | 33,897 | 35,562 |
Continuous unrealized loss position less than 12 months, fair value | 1,033 | 4,785 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 1 | 298 |
Continuous unrealized loss position 12 months or longer, fair value | 1,736 | 432 |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 32 | 64 |
Continuous unrealized loss position, total, fair value | 2,769 | 5,217 |
Continuous unrealized loss position, total, gross unrealized losses | 33 | 362 |
Obligations of states, municipalities and political subdivisions, pre-refunded [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 7,459 | 9,074 |
Gross unrealized gains | 348 | 445 |
Gross unrealized losses | ' | 1 |
Fixed maturities, at fair value | 7,807 | 9,518 |
Obligations of states, municipalities and political subdivisions, all other (not pre-refunded) [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 24,787 | 25,414 |
Gross unrealized gains | 1,336 | 991 |
Gross unrealized losses | 33 | 361 |
Fixed maturities, at fair value | 26,090 | 26,044 |
Debt securities issued by foreign governments [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 2,435 | 2,552 |
Gross unrealized gains | 34 | 33 |
Gross unrealized losses | 1 | 8 |
Fixed maturities, at fair value | 2,468 | 2,577 |
Continuous unrealized loss position less than 12 months, fair value | 226 | 907 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | ' | 8 |
Continuous unrealized loss position 12 months or longer, fair value | 143 | 1 |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 1 | ' |
Continuous unrealized loss position, total, fair value | 369 | 908 |
Continuous unrealized loss position, total, gross unrealized losses | 1 | 8 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 2,114 | 2,263 |
Gross unrealized gains | 167 | 179 |
Gross unrealized losses | 7 | 18 |
Fixed maturities, at fair value | 2,274 | 2,424 |
Continuous unrealized loss position less than 12 months, fair value | 157 | 542 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 1 | 17 |
Continuous unrealized loss position 12 months or longer, fair value | 257 | 21 |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 6 | 1 |
Continuous unrealized loss position, total, fair value | 414 | 563 |
Continuous unrealized loss position, total, gross unrealized losses | 7 | 18 |
All other corporate bonds [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 22,072 | 20,472 |
Gross unrealized gains | 828 | 767 |
Gross unrealized losses | 126 | 299 |
Fixed maturities, at fair value | 22,774 | 20,940 |
Continuous unrealized loss position less than 12 months, fair value | 3,161 | 6,887 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 34 | 253 |
Continuous unrealized loss position 12 months or longer, fair value | 2,658 | 421 |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 92 | 46 |
Continuous unrealized loss position, total, fair value | 5,819 | 7,308 |
Continuous unrealized loss position, total, gross unrealized losses | 126 | 299 |
Other fixed maturities [Member] | ' | ' |
Investment disclosure details | ' | ' |
Available-for-sale securities for which fair value is less than 80% of amortized cost, greater than 6 months, 12 months or less | 2 | ' |
Available-for-sale securities for which fair value is less than 80% of amortized cost, greater than 12 months | 2 | ' |
Available-for-sale securities for which fair value is less than 80% of amortized cost, total | 4 | ' |
Redeemable preferred stock [Member] | ' | ' |
Investment disclosure details | ' | ' |
Fixed maturities, amortized cost | 126 | 133 |
Gross unrealized gains | 9 | 6 |
Gross unrealized losses | ' | 1 |
Fixed maturities, at fair value | 135 | 138 |
Continuous unrealized loss position less than 12 months, fair value | ' | 82 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | ' | 1 |
Continuous unrealized loss position, total, fair value | ' | 82 |
Continuous unrealized loss position, total, gross unrealized losses | ' | 1 |
Equity securities [Member] | ' | ' |
Investment disclosure details | ' | ' |
Equity securities, cost | 609 | 686 |
Gross unrealized gains | 342 | 260 |
Gross unrealized losses | 2 | 3 |
Equity securities, at fair value | 949 | 943 |
Continuous unrealized loss position less than 12 months, fair value | 144 | 200 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 2 | 3 |
Continuous unrealized loss position 12 months or longer, fair value | 1 | ' |
Continuous unrealized loss position, total, fair value | 145 | 200 |
Continuous unrealized loss position, total, gross unrealized losses | 2 | 3 |
Equity securities, public common stock [Member] | ' | ' |
Investment disclosure details | ' | ' |
Equity securities, cost | 396 | 385 |
Gross unrealized gains | 312 | 226 |
Gross unrealized losses | ' | 1 |
Equity securities, at fair value | 708 | 610 |
Continuous unrealized loss position less than 12 months, fair value | 36 | 53 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | ' | 1 |
Continuous unrealized loss position 12 months or longer, fair value | 1 | ' |
Continuous unrealized loss position, total, fair value | 37 | 53 |
Continuous unrealized loss position, total, gross unrealized losses | ' | 1 |
Equity securities, non-redeemable preferred stock [Member] | ' | ' |
Investment disclosure details | ' | ' |
Equity securities, cost | 213 | 301 |
Gross unrealized gains | 30 | 34 |
Gross unrealized losses | 2 | 2 |
Equity securities, at fair value | 241 | 333 |
Continuous unrealized loss position less than 12 months, fair value | 108 | 147 |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 2 | 2 |
Continuous unrealized loss position, total, fair value | 108 | 147 |
Continuous unrealized loss position, total, gross unrealized losses | $2 | $2 |
Investments_details_Impairment
Investments (details) - Impairment Charges (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Impairment charges | ' | ' | ' | ' |
Impairment charges | $10 | $3 | $20 | $10 |
Fixed maturities [Member] | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' |
Impairment charges | 9 | ' | 13 | 2 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' |
Impairment charges | ' | ' | 1 | 2 |
All other corporate bonds [Member] | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' |
Impairment charges | 9 | ' | 12 | ' |
Equity securities [Member] | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' |
Impairment charges | 1 | 2 | 6 | 3 |
Equity securities, public common stock [Member] | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' |
Impairment charges | 1 | 2 | 6 | 3 |
Other investments [Member] | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' |
Impairment charges | ' | $1 | $1 | $5 |
Investments_details_OTTI_Rollf
Investments (details) - OTTI Rollforward (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cumulative amount of and the changes during the reporting period in the credit losses 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 [Roll Forward] | ' | ' | ' | ' |
Cumulative OTTI credit losses recognized for securities held, beginning of period | $109 | $125 | $118 | $127 |
Additions for OTTI securities where credit losses have been previously recognized | ' | ' | 4 | 2 |
Reductions due to sales/defaults of credit-impaired securities | -5 | ' | -8 | ' |
Adjustments to book value of credit-impaired securities due to changes in cash flows | 1 | -3 | -9 | -7 |
Cumulative OTTI credit losses recognized for securities still held, end of period | 105 | 122 | 105 | 122 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ' | ' | ' | ' |
Cumulative amount of and the changes during the reporting period in the credit losses 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 [Roll Forward] | ' | ' | ' | ' |
Cumulative OTTI credit losses recognized for securities held, beginning of period | 43 | 55 | 53 | 55 |
Additions for OTTI securities where credit losses have been previously recognized | ' | ' | 1 | 2 |
Reductions due to sales/defaults of credit-impaired securities | ' | ' | -3 | ' |
Adjustments to book value of credit-impaired securities due to changes in cash flows | 1 | -2 | -7 | -4 |
Cumulative OTTI credit losses recognized for securities still held, end of period | 44 | 53 | 44 | 53 |
All other corporate bonds [Member] | ' | ' | ' | ' |
Cumulative amount of and the changes during the reporting period in the credit losses 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 [Roll Forward] | ' | ' | ' | ' |
Cumulative OTTI credit losses recognized for securities held, beginning of period | 66 | 70 | 65 | 72 |
Additions for OTTI securities where credit losses have been previously recognized | ' | ' | 3 | ' |
Reductions due to sales/defaults of credit-impaired securities | -5 | ' | -5 | ' |
Adjustments to book value of credit-impaired securities due to changes in cash flows | ' | -1 | -2 | -3 |
Cumulative OTTI credit losses recognized for securities still held, end of period | $61 | $69 | $61 | $69 |
Investments_details_Derivative
Investments (details) - Derivatives (USD $) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||||
Derivative | ' | ' | ' | ' | ' | ||||
Net realized investment gain (loss) | $40,000,000 | [1] | ($22,000,000) | [1] | $57,000,000 | [1] | $155,000,000 | [1] | ' |
Futures [Member] | U.S. Treasury notes contracts [Member] | ' | ' | ' | ' | ' | ||||
Derivative | ' | ' | ' | ' | ' | ||||
Notional value of open contracts | 100,000,000 | ' | 100,000,000 | ' | 0 | ||||
Net realized investment gain (loss) | $0 | $0 | ($300,000) | $115,000,000 | ' | ||||
[1] | Total other-than-temporary impairment (OTTI) gains (losses) were $(8) million and $0 million for the three months ended September 30, 2014 and 2013, respectively, and $(16) million and $(1) million for the nine months ended September 30, 2014 and 2013, respectively. Of total OTTI, credit losses of $(10) million and $(3) million for the three months ended September 30, 2014 and 2013, respectively, and $(20) million and $(10) million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains from other changes in total OTTI of $2 million and $3 million for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Fair_Value_Measurements_detail
Fair Value Measurements (details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Measurements disclosure | ' | ' |
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 | $133 | $94 |
Fair value of the fixed maturities for which the Company received a broker quote | 134 | 161 |
Convertible bonds held containing embedded conversion options that are valued separately from the host bond contract and disclosed in Level 2 | $9 | $8 |
Percent of short-term securities for which a pricing service estimates fair value | 98.00% | 97.00% |
Percent of debt, including commercial paper, for which a pricing service estimates fair value | 100.00% | 100.00% |
Fair_Value_Measurements_detail1
Fair Value Measurements (details) - Fair Value Hierarchy (Recurring basis [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ' | ' |
Total invested assets measured on a recurring basis | $64,627 | $64,952 |
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 | 2,937 | 3,066 |
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 | 61,386 | 61,597 |
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 | 304 | 289 |
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 | 63,622 | 63,956 |
Fixed maturities [Member] | 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 | 2,117 | 2,299 |
Fixed maturities [Member] | 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 | 61,238 | 61,402 |
Fixed maturities [Member] | 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 | 267 | 255 |
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 | 2,074 | 2,315 |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | 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 | 2,062 | 2,298 |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | 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 | 12 | 17 |
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 | 33,897 | 35,562 |
Transfers from Level 1 to Level 2 | 1 | ' |
Obligations of states, municipalities and political subdivisions [Member] | 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 | 24 | 1 |
Obligations of states, municipalities and political subdivisions [Member] | 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 | 33,860 | 35,538 |
Obligations of states, municipalities and political subdivisions [Member] | 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 | 13 | 23 |
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 | 2,468 | 2,577 |
Debt securities issued by foreign governments [Member] | 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 | 9 | ' |
Debt securities issued by foreign governments [Member] | 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 | 2,459 | 2,577 |
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 | 2,274 | 2,424 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | 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 | 2,274 | 2,415 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | 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 | ' | 9 |
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 | 22,774 | 20,940 |
All other corporate bonds [Member] | 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 | 17 | ' |
All other corporate bonds [Member] | 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 | 22,511 | 20,726 |
All other corporate bonds [Member] | 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 | 246 | 214 |
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 | 135 | 138 |
Transfers from Level 1 to Level 2 | ' | 31 |
Transfers from Level 2 to Level 1 | 5 | ' |
Redeemable preferred stock [Member] | 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 | 5 | ' |
Redeemable preferred stock [Member] | 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 | 122 | 129 |
Redeemable preferred stock [Member] | 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 | 8 | 9 |
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 | 949 | 943 |
Equity securities [Member] | 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 | 801 | 748 |
Equity securities [Member] | 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 | 148 | 195 |
Equity securities, 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 | 708 | 610 |
Equity securities, public common stock [Member] | 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 | 708 | 610 |
Equity securities, 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 | 241 | 333 |
Transfers from Level 1 to Level 2 | ' | 54 |
Transfers from Level 2 to Level 1 | 10 | ' |
Equity securities, non-redeemable preferred stock [Member] | 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 | 93 | 138 |
Equity securities, non-redeemable preferred stock [Member] | 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 | 148 | 195 |
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 | 56 | 53 |
Other investments [Member] | 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 | 19 | 19 |
Other investments [Member] | 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 | 37 | 34 |
Investments in various publicly-traded securities, including mutual funds and other small holdings disclosed in 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 | 19 | 19 |
Investments in various publicly-traded securities, including mutual funds and other small holdings disclosed in Level 1 [Member] | 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 | 19 | 19 |
Investment in non-public common and preferred equity securities where the fair value estimate is determined either internally or by an external fund manager and therefore disclosed in 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 | 37 | 34 |
Investment in non-public common and preferred equity securities where the fair value estimate is determined either internally or by an external fund manager and therefore disclosed in Level 3 [Member] | 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 | $37 | $34 |
Fair_Value_Measurements_detail2
Fair Value Measurements (details) - Changes in Level 3 (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Changes in Level 3 fair value category [Roll Forward] | ' | ' | ' |
Level 3 fair value category, beginning balance | $300 | $289 | $284 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains (losses) | 1 | 4 | 16 |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases (decreases) in other comprehensive income | -1 | -1 | -1 |
Level 3 fair value category purchases | 74 | 217 | 180 |
Level 3 fair value category sales | ' | -1 | -58 |
Level 3 fair value category settlements/maturities | -13 | -73 | -83 |
Gross transfers into Level 3 | 8 | 8 | 15 |
Gross transfers out of Level 3 | -65 | -139 | -64 |
Level 3 fair value category, ending balance | 304 | 304 | 289 |
Fixed maturities [Member] | ' | ' | ' |
Changes in Level 3 fair value category [Roll Forward] | ' | ' | ' |
Level 3 fair value category, beginning balance | 264 | 255 | 230 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains (losses) | 1 | 3 | 4 |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases (decreases) in other comprehensive income | -2 | -2 | -2 |
Level 3 fair value category purchases | 74 | 216 | 180 |
Level 3 fair value category sales | ' | -1 | -25 |
Level 3 fair value category settlements/maturities | -13 | -73 | -83 |
Gross transfers into Level 3 | 8 | 8 | 15 |
Gross transfers out of Level 3 | -65 | -139 | -64 |
Level 3 fair value category, ending balance | 267 | 267 | 255 |
Other investments [Member] | ' | ' | ' |
Changes in Level 3 fair value category [Roll Forward] | ' | ' | ' |
Level 3 fair value category, beginning balance | 36 | 34 | 54 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains (losses) | ' | 1 | 12 |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases (decreases) in other comprehensive income | 1 | 1 | 1 |
Level 3 fair value category purchases | ' | 1 | ' |
Level 3 fair value category sales | ' | ' | -33 |
Level 3 fair value category, ending balance | $37 | $37 | $34 |
Fair_Value_Measurements_Footno
Fair Value Measurements Footnote (details) - Financial Instruments (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Instruments | ' | ' |
Short-term securities | $5,033 | $3,882 |
Fair Value [Member] | ' | ' |
Financial Instruments | ' | ' |
Short-term securities | 5,033 | 3,882 |
Debt | 7,390 | 7,123 |
Commercial paper | 100 | 100 |
Fair Value [Member] | Level 1 [Member] | ' | ' |
Financial Instruments | ' | ' |
Short-term securities | 1,265 | 1,608 |
Fair Value [Member] | Level 2 [Member] | ' | ' |
Financial Instruments | ' | ' |
Short-term securities | 3,719 | 2,215 |
Debt | 7,390 | 7,123 |
Commercial paper | 100 | 100 |
Fair Value [Member] | Level 3 [Member] | ' | ' |
Financial Instruments | ' | ' |
Short-term securities | 49 | 59 |
Carrying Value [Member] | ' | ' |
Financial Instruments | ' | ' |
Short-term securities | 5,033 | 3,882 |
Debt | 6,248 | 6,246 |
Commercial paper | $100 | $100 |
Goodwill_details
Goodwill (details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and Other Intangible Assets disclosure | ' | ' |
Intangible assets not subject to amortization | $217 | $217 |
Total other intangible assets, gross carrying amount | 886 | 878 |
Total other intangible assets, accumulated amortization | 570 | 527 |
Total other intangible assets, net | $316 | $351 |
Goodwill_details_Goodwill_by_S
Goodwill (details) - Goodwill by Segment (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill by segment | ' | ' |
Goodwill | $3,621 | $3,634 |
Reportable Segments [Member] | Business and International Insurance [Member] | ' | ' |
Goodwill by segment | ' | ' |
Goodwill | 2,486 | 2,499 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ' | ' |
Goodwill by segment | ' | ' |
Goodwill | 495 | 495 |
Reportable Segments [Member] | Personal Insurance [Member] | ' | ' |
Goodwill by segment | ' | ' |
Goodwill | 613 | 613 |
Other [Member] | ' | ' |
Goodwill by segment | ' | ' |
Goodwill | $27 | $27 |
Goodwill_details_Other_Intangi
Goodwill (details) - Other Intangible Assets (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Other intangible assets by major asset class | ' | ' | ' | ' | ' |
Intangible assets subject to amortization, gross carrying amount | $669 | ' | $669 | ' | $661 |
Intangible assets subject to amortization, accumulated amortization | 570 | ' | 570 | ' | 527 |
Intangible assets subject to amortization, net | 99 | ' | 99 | ' | 134 |
Amortization expense for other intangible assets | 12 | 11 | 35 | 34 | ' |
Estimated intangible asset amortization expense, remainder of 2014 | 12 | ' | 12 | ' | ' |
Estimated intangible asset amortization expense, 2015 | 26 | ' | 26 | ' | ' |
Estimated intangible asset amortization expense, 2016 | 10 | ' | 10 | ' | ' |
Estimated intangible asset amortization expense, 2017 | 9 | ' | 9 | ' | ' |
Estimated intangible asset amortization expense, 2018 | 8 | ' | 8 | ' | ' |
Customer-related [Member] | ' | ' | ' | ' | ' |
Other intangible assets by major asset class | ' | ' | ' | ' | ' |
Intangible assets subject to amortization, gross carrying amount | 460 | ' | 460 | ' | 460 |
Intangible assets subject to amortization, accumulated amortization | 438 | ' | 438 | ' | 414 |
Intangible assets subject to amortization, net | 22 | ' | 22 | ' | 46 |
Amortization expense for other intangible assets | 8 | 8 | 24 | 23 | ' |
Fair value adjustment on claims and claim adjustment expense reserves, reinsurance recoverables and other contract-related intangibles [Member] | ' | ' | ' | ' | ' |
Other intangible assets by major asset class | ' | ' | ' | ' | ' |
Intangible assets subject to amortization, gross carrying amount | 209 | ' | 209 | ' | 201 |
Intangible assets subject to amortization, accumulated amortization | 132 | ' | 132 | ' | 113 |
Intangible assets subject to amortization, net | 77 | ' | 77 | ' | 88 |
Amortization expense for other intangible assets | $4 | $3 | $11 | $11 | ' |
Other_Comprehensive_Income_and2
Other Comprehensive Income and Accumulated Other Comprehensive Income (details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated other comprehensive income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income, net of tax, balance, beginning of year | ' | ' | $810 | $2,236 |
Other comprehensive income before reclassifications | ' | ' | 480 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 10 | ' |
Other comprehensive income (loss), net of taxes | -262 | -15 | 490 | -1,531 |
Accumulated other comprehensive income, net of tax, balance, end of period | 1,300 | 705 | 1,300 | 705 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | -154 | -204 | 901 | -2,370 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 1 | -2 | 4 | 2 |
Net changes in benefit plan assets and obligations | 15 | 24 | 45 | 78 |
Net changes in unrealized foreign currency translation | -203 | 112 | -149 | -57 |
Other comprehensive income (loss) before income taxes | -341 | -70 | 801 | -2,347 |
Income tax expense (benefit), other comprehensive income (loss) | -79 | -55 | 311 | -816 |
Changes in Net Unrealized Gains on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income [Member] | ' | ' | ' | ' |
Accumulated other comprehensive income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income, net of tax, balance, beginning of year | ' | ' | 1,125 | ' |
Other comprehensive income before reclassifications | ' | ' | 610 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -20 | ' |
Other comprehensive income (loss), net of taxes | -99 | -132 | 590 | -1,546 |
Accumulated other comprehensive income, net of tax, balance, end of period | 1,715 | ' | 1,715 | ' |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | -154 | -204 | 901 | -2,370 |
Income tax expense (benefit), other comprehensive income (loss) | -55 | -72 | 311 | -824 |
Changes in Net Unrealized Gains on Investment Securities Having Credit Losses Recognized in the Consolidated Statement of Income [Member] | ' | ' | ' | ' |
Accumulated other comprehensive income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income, net of tax, balance, beginning of year | ' | ' | 197 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 2 | ' |
Other comprehensive income (loss), net of taxes | ' | -1 | 2 | 2 |
Accumulated other comprehensive income, net of tax, balance, end of period | 199 | ' | 199 | ' |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 1 | -2 | 4 | 2 |
Income tax expense (benefit), other comprehensive income (loss) | 1 | -1 | 2 | ' |
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | ' | ' | ' | ' |
Accumulated other comprehensive income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income, net of tax, balance, beginning of year | ' | ' | -431 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 28 | ' |
Other comprehensive income (loss), net of taxes | 10 | 15 | 28 | 50 |
Accumulated other comprehensive income, net of tax, balance, end of period | -403 | ' | -403 | ' |
Net changes in benefit plan assets and obligations | 15 | 24 | 45 | 78 |
Income tax expense (benefit), other comprehensive income (loss) | 5 | 9 | 17 | 28 |
Net Unrealized Foreign Currency Translation [Member] | ' | ' | ' | ' |
Accumulated other comprehensive income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income, net of tax, balance, beginning of year | ' | ' | -81 | ' |
Other comprehensive income before reclassifications | ' | ' | -130 | ' |
Other comprehensive income (loss), net of taxes | -173 | 103 | -130 | -37 |
Accumulated other comprehensive income, net of tax, balance, end of period | -211 | ' | -211 | ' |
Net changes in unrealized foreign currency translation | -203 | 112 | -149 | -57 |
Income tax expense (benefit), other comprehensive income (loss) | ($30) | $9 | ($19) | ($20) |
Other_Comprehensive_Income_and3
Other Comprehensive Income and Accumulated Other Comprehensive Income (details) - Reclassifications (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Reclassification adjustment impacting net realized investment gains on the income statement | ($40) | [1] | $22 | [1] | ($57) | [1] | ($155) | [1] |
Reclassification adjustment impacting general and administrative expense on the income statement | 1,031 | 934 | 2,913 | 2,780 | ||||
Total reclassifications | -1,258 | -1,177 | -3,629 | -3,574 | ||||
Income tax (expense) benefit | -339 | -313 | -975 | -889 | ||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | -919 | -864 | -2,654 | -2,685 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||||
Total reclassifications | 14 | 33 | 19 | 33 | ||||
Income tax (expense) benefit | 5 | 8 | 9 | 9 | ||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | 9 | 25 | 10 | 24 | ||||
Changes in Net Unrealized Gains 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 | -1 | -4 | -30 | -55 | ||||
Income tax (expense) benefit | ' | -1 | -10 | -19 | ||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | -1 | -3 | -20 | -36 | ||||
Changes in Net Unrealized Gains on Investment Securities Having 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 | ' | ' | 4 | 2 | ||||
Income tax (expense) benefit | ' | ' | 2 | 1 | ||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | ' | ' | 2 | 1 | ||||
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 general and administrative expense on the income statement | 15 | 26 | 45 | 78 | ||||
Income tax (expense) benefit | 5 | 9 | 17 | 27 | ||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | 10 | 17 | 28 | 51 | ||||
Net Unrealized Foreign Currency Translation [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 | ' | 11 | ' | 8 | ||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | ' | $11 | ' | $8 | ||||
[1] | Total other-than-temporary impairment (OTTI) gains (losses) were $(8) million and $0 million for the three months ended September 30, 2014 and 2013, respectively, and $(16) million and $(1) million for the nine months ended September 30, 2014 and 2013, respectively. Of total OTTI, credit losses of $(10) million and $(3) million for the three months ended September 30, 2014 and 2013, respectively, and $(20) million and $(10) million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains from other changes in total OTTI of $2 million and $3 million for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Common_Share_Repurchases_detai
Common Share Repurchases (details) (Board of Directors Approved Repurchase Authorizations [Member], USD $) | 3 Months Ended | 9 Months Ended |
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Board of Directors Approved Repurchase Authorizations [Member] | ' | ' |
Repurchase activity | ' | ' |
Number of shares repurchased (in shares) | 8.1 | 25.4 |
Cost of shares repurchased | $750,000,000 | $2,280,000,000 |
Average cost per share repurchased | $92.47 | $89.61 |
Remaining capacity under share repurchase authorization | $2,480,000,000 | $2,480,000,000 |
Earnings_per_Share_details
Earnings per Share (details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings per Share disclosure | ' | ' | ' | ' |
Net income | $919 | $864 | $2,654 | $2,685 |
Participating share-based awards - allocated income | -7 | -6 | -19 | -20 |
Net income available to common shareholders -- basic | 912 | 858 | 2,635 | 2,665 |
Net income available to common shareholders -- diluted | $912 | $858 | $2,635 | $2,665 |
Weighted average shares outstanding, basic | 335.1 | 368.9 | 342.9 | 374.1 |
Weighted average effects of dilutive securities, stock options and performance shares (in shares) | 3.8 | 4 | 3.6 | 4 |
Weighted average shares outstanding, diluted | 338.9 | 372.9 | 346.5 | 378.1 |
Net income per common share, basic | $2.72 | $2.33 | $7.68 | $7.12 |
Net income per common share, diluted | $2.69 | $2.30 | $7.60 | $7.05 |
ShareBased_Incentive_Compensat2
Share-Based Incentive Compensation (details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | 27-May-14 |
Share-Based Incentive Compensation disclosure | ' | ' | ' | ' | ' | ' |
Stock options vested at end of period, number (in shares) | 7,597,990 | ' | 7,597,990 | ' | ' | ' |
Stock options vested at end of period, weighted average exercise price (per share) | $58.48 | ' | $58.48 | ' | ' | ' |
Stock options vested at end of period, weighted average contractual life remaining | ' | ' | '6 years 0 months 0 days | ' | ' | ' |
Stock options vested at end of period, aggregate intrinsic value | $269 | ' | $269 | ' | ' | ' |
Stock options exercisable at end of period, number (in shares) | 4,775,291 | ' | 4,775,291 | ' | ' | ' |
Stock options exercisable at end of period, weighted average exercise price (per share) | $50.40 | ' | $50.40 | ' | ' | ' |
Stock options exercisable at end of period, weighted average contractual life remaining | ' | ' | '4 years 7 months 6 days | ' | ' | ' |
Stock options exercisable at end of period, aggregate intrinsic value | 208 | ' | 208 | ' | ' | ' |
Total compensation cost recognized in earnings for all share-based incentive compensation awards | 31 | 29 | 106 | 99 | ' | ' |
Tax benefits recognized in earnings related to compensation costs | 10 | 10 | 36 | 34 | ' | ' |
Total unrecognized compensation cost related to all nonvested share-based incentive compensation awards | $151 | ' | $151 | ' | $120 | ' |
Weighted-average period of recognition for unrecognized compensation cost (in years) | ' | ' | '1 year 9 months 18 days | ' | '1 year 8 months 12 days | ' |
Number of shares initially available for issuance under the 2014 Incentive Plan | ' | ' | ' | ' | ' | 10,000,000 |
Pension_Plans_Retirement_Benef2
Pension Plans, Retirement Benefits and Savings Plans (details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Plans [Member] | ' | ' | ' | ' |
Defined benefit plan disclosure | ' | ' | ' | ' |
Service cost | $27 | $30 | $82 | $89 |
Interest cost on benefit obligation | 38 | 33 | 113 | 99 |
Expected return on plan assets | -55 | -52 | -164 | -156 |
Amortization of unrecognized net actuarial (gain) loss | 17 | 27 | 49 | 80 |
Net periodic benefit cost | 27 | 38 | 80 | 112 |
Postretirement Benefit Plans [Member] | ' | ' | ' | ' |
Defined benefit plan disclosure | ' | ' | ' | ' |
Interest cost on benefit obligation | 3 | 3 | 8 | 7 |
Net periodic benefit cost, amortization of unrecognized prior service benefit | -1 | -1 | -2 | -2 |
Amortization of unrecognized net actuarial (gain) loss | -1 | ' | -2 | ' |
Net periodic benefit cost | $1 | $2 | $4 | $5 |
Contingencies_Commitments_and_1
Contingencies, Commitments and Guarantees (details) - Commitments (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Billions, unless otherwise specified | ||
Contingencies and Commitments disclosure | ' | ' |
Unfunded commitments to private equity limited partnerships and real estate partnerships | $1.57 | $1.52 |
Contingencies_Commitments_and_2
Contingencies, Commitments and Guarantees (details) - Loss Contingencies (USD $) | 7 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2002 | Sep. 30, 2014 | Mar. 22, 2010 | Nov. 30, 2003 | 31-May-04 |
item | Asbestos Direct Action Litigation [Member] | Asbestos Direct Action Litigation [Member] | Statutory and Hawaii Actions [Member] | Common Law Claims [Member] | |
item | Maxiumum [Member] | Maxiumum [Member] | |||
Loss Contingencies | ' | ' | ' | ' | ' |
Number of purported class action suits filed against TPC and other insurers in state court in West Virginia relative to asbestos direct action litigation | 2 | ' | ' | ' | ' |
Settlement amount | ' | $502 | ' | $412 | $90 |
Number of remaining objectors to which the notice of the 1986 Orders was deemed insufficient to bar contribution claims against TPC | ' | ' | 1 | ' | ' |
Total settlement amount | ' | 579 | ' | ' | ' |
Interest related to settlement award | ' | $77 | ' | ' | ' |
Annual interest rate accruing on judgment not yet paid | ' | 0.27% | ' | ' | ' |
Contingencies_Commitments_and_3
Contingencies, Commitments and Guarantees (details) - Gain Contingencies (United States Fidelity & Guaranty Company v. American Re-Insurance Company, et al. [Member], USD $) | 0 Months Ended | 47 Months Ended | ||
In Millions, unless otherwise specified | Oct. 25, 2010 | Sep. 30, 2014 | Nov. 30, 2013 | Feb. 07, 2013 |
item | item | item | ||
United States Fidelity & Guaranty Company v. American Re-Insurance Company, et al. [Member] | ' | ' | ' | ' |
Gain Contingencies | ' | ' | ' | ' |
Number of other reinsurers beside American Re against which judgment was entered in a reinsurance dispute | 3 | ' | ' | ' |
Total settlement amount | $420 | $482 | ' | ' |
Settlement amount | 251 | 238 | ' | ' |
Interest related to settlement award | $169 | $244 | ' | ' |
Annual interest rate accruing on judgment not yet paid | 9.00% | 9.00% | ' | ' |
Number of discrete issues modified in part by the summary judgment in reinsurance dispute | ' | ' | ' | 2 |
Number of reinsurers with whom the Company has reached a settlement agreeement | ' | ' | 1 | ' |
Contingencies_Commitments_and_4
Contingencies, Commitments and Guarantees (details) - Guarantees (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Guarantees of certain investments and third-party loans [Member] | ' |
Guarantor obligations | ' |
Maximum amount of contingent obligation | $150 |
Amount indemnified by a third party | 75 |
Guarantees of certain insurance policy obligations [Member] | ' |
Guarantor obligations | ' |
Maximum amount of contingent obligation | 480 |
Amount indemnified by a third party | 480 |
Indemnifications related to the sale of businesses [Member] | ' |
Guarantor obligations | ' |
Maximum amount of contingent obligation | 464 |
Amount recognized on balance sheet for contingent obligation | $8 |
Consolidating_Financial_Statem2
Consolidating Financial Statements (Unaudited) (details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure | ' |
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $700 |
Consolidating_Financial_Statem3
Consolidating Financial Statements (details) - Consolidating Statement of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Consolidating Statement of Income | ' | ' | ' | ' | ||||
Premiums | $5,983 | $5,666 | $17,734 | $16,786 | ||||
Net investment income | 719 | 657 | 2,150 | 2,014 | ||||
Fee income | 110 | 107 | 329 | 286 | ||||
Net realized investment gains (losses) | 40 | [1] | -22 | [1] | 57 | [1] | 155 | [1] |
Other revenues | 34 | 44 | 109 | 213 | ||||
Total revenues | 6,886 | 6,452 | 20,379 | 19,454 | ||||
Claims and claim adjustment expenses | 3,520 | 3,297 | 10,661 | 9,980 | ||||
Amortization of deferred acquisition costs | 984 | 953 | 2,899 | 2,851 | ||||
General and administrative expenses | 1,031 | 934 | 2,913 | 2,780 | ||||
Interest expense | 93 | 91 | 277 | 269 | ||||
Total claims and expenses | 5,628 | 5,275 | 16,750 | 15,880 | ||||
Income before income taxes | 1,258 | 1,177 | 3,629 | 3,574 | ||||
Income tax expense (benefit) | 339 | 313 | 975 | 889 | ||||
Net income | 919 | 864 | 2,654 | 2,685 | ||||
Total other-than-temporary impairment gains (losses) | -8 | 0 | -16 | -1 | ||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | -10 | -3 | -20 | -10 | ||||
Other-than-temporary impairment gains recognized in other comprehensive income | 2 | 3 | 4 | 9 | ||||
Reportable Legal Entities [Member] | TPC [Member] | ' | ' | ' | ' | ||||
Consolidating Statement of Income | ' | ' | ' | ' | ||||
Premiums | 4,064 | 3,839 | 12,028 | 11,384 | ||||
Net investment income | 479 | 438 | 1,451 | 1,350 | ||||
Fee income | 110 | 106 | 328 | 284 | ||||
Net realized investment gains (losses) | -2 | 3 | 4 | 120 | ||||
Other revenues | 28 | 38 | 93 | 170 | ||||
Total revenues | 4,679 | 4,424 | 13,904 | 13,308 | ||||
Claims and claim adjustment expenses | 2,359 | 2,214 | 7,149 | 6,684 | ||||
Amortization of deferred acquisition costs | 642 | 640 | 1,927 | 1,912 | ||||
General and administrative expenses | 716 | 646 | 2,026 | 1,915 | ||||
Interest expense | 12 | 12 | 36 | 41 | ||||
Total claims and expenses | 3,729 | 3,512 | 11,138 | 10,552 | ||||
Income before income taxes | 950 | 912 | 2,766 | 2,756 | ||||
Income tax expense (benefit) | 263 | 248 | 770 | 700 | ||||
Net income | 687 | 664 | 1,996 | 2,056 | ||||
Total other-than-temporary impairment gains (losses) | -8 | 1 | -11 | -3 | ||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | -9 | -2 | -14 | -7 | ||||
Other-than-temporary impairment gains recognized in other comprehensive income | 1 | 3 | 3 | 4 | ||||
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ' | ' | ' | ' | ||||
Consolidating Statement of Income | ' | ' | ' | ' | ||||
Premiums | 1,919 | 1,827 | 5,706 | 5,402 | ||||
Net investment income | 239 | 217 | 695 | 659 | ||||
Fee income | ' | 1 | 1 | 2 | ||||
Net realized investment gains (losses) | 41 | -25 | 50 | 34 | ||||
Other revenues | 6 | 6 | 16 | 43 | ||||
Total revenues | 2,205 | 2,026 | 6,468 | 6,140 | ||||
Claims and claim adjustment expenses | 1,161 | 1,083 | 3,512 | 3,296 | ||||
Amortization of deferred acquisition costs | 342 | 313 | 972 | 939 | ||||
General and administrative expenses | 311 | 286 | 876 | 861 | ||||
Total claims and expenses | 1,814 | 1,682 | 5,360 | 5,096 | ||||
Income before income taxes | 391 | 344 | 1,108 | 1,044 | ||||
Income tax expense (benefit) | 106 | 93 | 291 | 269 | ||||
Net income | 285 | 251 | 817 | 775 | ||||
Total other-than-temporary impairment gains (losses) | ' | -1 | -5 | 2 | ||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | -1 | -1 | -6 | -3 | ||||
Other-than-temporary impairment gains recognized in other comprehensive income | 1 | ' | 1 | 5 | ||||
Reportable Legal Entities [Member] | Travelers [Member] | ' | ' | ' | ' | ||||
Consolidating Statement of Income | ' | ' | ' | ' | ||||
Net investment income | 1 | 2 | 4 | 5 | ||||
Net realized investment gains (losses) | 1 | ' | 3 | 1 | ||||
Total revenues | 2 | 2 | 7 | 6 | ||||
General and administrative expenses | 4 | 2 | 11 | 4 | ||||
Interest expense | 81 | 79 | 241 | 228 | ||||
Total claims and expenses | 85 | 81 | 252 | 232 | ||||
Income before income taxes | -83 | -79 | -245 | -226 | ||||
Income tax expense (benefit) | -30 | -28 | -86 | -80 | ||||
Net income of subsidiaries | 972 | 915 | 2,813 | 2,831 | ||||
Net income | 919 | 864 | 2,654 | 2,685 | ||||
Eliminations [Member] | ' | ' | ' | ' | ||||
Consolidating Statement of Income | ' | ' | ' | ' | ||||
Net income of subsidiaries | -972 | -915 | -2,813 | -2,831 | ||||
Net income | ($972) | ($915) | ($2,813) | ($2,831) | ||||
[1] | Total other-than-temporary impairment (OTTI) gains (losses) were $(8) million and $0 million for the three months ended September 30, 2014 and 2013, respectively, and $(16) million and $(1) million for the nine months ended September 30, 2014 and 2013, respectively. Of total OTTI, credit losses of $(10) million and $(3) million for the three months ended September 30, 2014 and 2013, respectively, and $(20) million and $(10) million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in net realized investment gains (losses). In addition, unrealized gains from other changes in total OTTI of $2 million and $3 million for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million for the nine months ended September 30, 2014 and 2013, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidating_Financial_Statem4
Consolidating Financial Statements (details) - Consolidated Statement of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidating Statement of Comprehensive Income | ' | ' | ' | ' |
Net income | $919 | $864 | $2,654 | $2,685 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | -154 | -204 | 901 | -2,370 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 1 | -2 | 4 | 2 |
Net changes in benefit plan assets and obligations | 15 | 24 | 45 | 78 |
Net changes in unrealized foreign currency translation | -203 | 112 | -149 | -57 |
Other comprehensive income (loss) before income taxes | -341 | -70 | 801 | -2,347 |
Income tax expense (benefit) | -79 | -55 | 311 | -816 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | -262 | -15 | 490 | -1,531 |
Other comprehensive income (loss), net of taxes | -262 | -15 | 490 | -1,531 |
Comprehensive income | 657 | 849 | 3,144 | 1,154 |
Reportable Legal Entities [Member] | TPC [Member] | ' | ' | ' | ' |
Consolidating Statement of Comprehensive Income | ' | ' | ' | ' |
Net income | 687 | 664 | 1,996 | 2,056 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | -118 | -138 | 632 | -1,735 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 2 | -1 | 11 | 4 |
Net changes in benefit plan assets and obligations | ' | ' | ' | 1 |
Net changes in unrealized foreign currency translation | -120 | 26 | -94 | -35 |
Other comprehensive income (loss) before income taxes | -236 | -113 | 549 | -1,765 |
Income tax expense (benefit) | -62 | -46 | 210 | -616 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | -174 | -67 | 339 | -1,149 |
Other comprehensive income (loss), net of taxes | -174 | -67 | 339 | -1,149 |
Comprehensive income | 513 | 597 | 2,335 | 907 |
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ' | ' | ' | ' |
Consolidating Statement of Comprehensive Income | ' | ' | ' | ' |
Net income | 285 | 251 | 817 | 775 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | -35 | -71 | 266 | -647 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | -1 | -1 | -7 | -2 |
Net changes in benefit plan assets and obligations | 1 | -1 | 1 | 2 |
Net changes in unrealized foreign currency translation | -83 | 86 | -55 | -22 |
Other comprehensive income (loss) before income taxes | -118 | 13 | 205 | -669 |
Income tax expense (benefit) | -22 | -20 | 84 | -231 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | -96 | 33 | 121 | -438 |
Other comprehensive income (loss), net of taxes | -96 | 33 | 121 | -438 |
Comprehensive income | 189 | 284 | 938 | 337 |
Reportable Legal Entities [Member] | Travelers [Member] | ' | ' | ' | ' |
Consolidating Statement of Comprehensive Income | ' | ' | ' | ' |
Net income | 919 | 864 | 2,654 | 2,685 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | -1 | 5 | 3 | 12 |
Net changes in benefit plan assets and obligations | 14 | 25 | 44 | 75 |
Other comprehensive income (loss) before income taxes | 13 | 30 | 47 | 87 |
Income tax expense (benefit) | 5 | 11 | 17 | 31 |
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | 8 | 19 | 30 | 56 |
Other comprehensive income (loss) of subsidiaries | -270 | -34 | 460 | -1,587 |
Other comprehensive income (loss), net of taxes | -262 | -15 | 490 | -1,531 |
Comprehensive income | 657 | 849 | 3,144 | 1,154 |
Eliminations [Member] | ' | ' | ' | ' |
Consolidating Statement of Comprehensive Income | ' | ' | ' | ' |
Net income | -972 | -915 | -2,813 | -2,831 |
Other comprehensive income (loss) of subsidiaries | 270 | 34 | -460 | 1,587 |
Other comprehensive income (loss), net of taxes | 270 | 34 | -460 | 1,587 |
Comprehensive income | ($702) | ($881) | ($3,273) | ($1,244) |
Consolidating_Financial_Statem5
Consolidating Financial Statements (details) - Consolidating Balance Sheet (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Consolidating Balance Sheet | ' | ' | ' | ' |
Fixed maturities, available for sale, at fair value | $63,622 | $63,956 | ' | ' |
Equity securities, available for sale, at fair value | 949 | 943 | ' | ' |
Real estate investments | 949 | 938 | ' | ' |
Short-term securities | 5,033 | 3,882 | ' | ' |
Other investments | 3,637 | 3,441 | ' | ' |
Total investments | 74,190 | 73,160 | ' | ' |
Cash | 367 | 294 | 295 | 330 |
Investment income accrued | 663 | 734 | ' | ' |
Premiums receivable | 6,439 | 6,125 | ' | ' |
Reinsurance recoverables | 9,279 | 9,713 | ' | ' |
Ceded unearned premiums | 848 | 801 | ' | ' |
Deferred acquisition costs | 1,890 | 1,804 | ' | ' |
Deferred taxes | ' | 303 | ' | ' |
Contractholder receivables | 4,367 | 4,328 | ' | ' |
Goodwill | 3,621 | 3,634 | ' | ' |
Other intangible assets | 316 | 351 | ' | ' |
Other assets | 2,542 | 2,565 | ' | ' |
Total assets | 104,522 | 103,812 | ' | ' |
Claims and claim adjustment expense reserves | 50,402 | 50,895 | ' | ' |
Unearned premium reserves | 12,181 | 11,850 | ' | ' |
Contractholder payables | 4,367 | 4,328 | ' | ' |
Payables for reinsurance premiums | 491 | 298 | ' | ' |
Deferred taxes | 122 | ' | ' | ' |
Debt | 6,348 | 6,346 | ' | ' |
Other liabilities | 5,290 | 5,299 | ' | ' |
Total liabilities | 79,201 | 79,016 | ' | ' |
Common stock | 21,764 | 21,500 | 21,425 | 21,161 |
Retained earnings | 26,394 | 24,291 | 23,485 | 21,352 |
Accumulated other comprehensive income | 1,300 | 810 | 705 | 2,236 |
Treasury stock, at cost | -24,137 | -21,805 | -20,804 | -19,344 |
Total shareholders' equity | 25,321 | 24,796 | 24,811 | ' |
Total liabilities and shareholders' equity | 104,522 | 103,812 | ' | ' |
Fixed maturities, available for sale, amortized cost | 61,043 | 62,196 | ' | ' |
Equity securities, available for sale, cost | 609 | 686 | ' | ' |
Common stock, shares authorized | 1,750 | 1,750 | ' | ' |
Common stock, shares issued | 331.4 | 353.5 | ' | ' |
Common stock, shares outstanding | 331.4 | 353.5 | 364.1 | 377.4 |
Treasury stock, at cost, shares | 427.6 | 401.5 | ' | ' |
Reportable Legal Entities [Member] | TPC [Member] | ' | ' | ' | ' |
Consolidating Balance Sheet | ' | ' | ' | ' |
Fixed maturities, available for sale, at fair value | 43,493 | 43,720 | ' | ' |
Equity securities, available for sale, at fair value | 271 | 329 | ' | ' |
Real estate investments | 56 | 33 | ' | ' |
Short-term securities | 2,413 | 1,867 | ' | ' |
Other investments | 2,658 | 2,450 | ' | ' |
Total investments | 48,891 | 48,399 | ' | ' |
Cash | 216 | 137 | 130 | 177 |
Investment income accrued | 451 | 499 | ' | ' |
Premiums receivable | 4,353 | 4,124 | ' | ' |
Reinsurance recoverables | 6,214 | 6,292 | ' | ' |
Ceded unearned premiums | 738 | 712 | ' | ' |
Deferred acquisition costs | 1,666 | 1,570 | ' | ' |
Deferred taxes | ' | 279 | ' | ' |
Contractholder receivables | 3,274 | 3,179 | ' | ' |
Goodwill | 2,609 | 2,619 | ' | ' |
Other intangible assets | 225 | 250 | ' | ' |
Other assets | 2,011 | 2,010 | ' | ' |
Total assets | 70,648 | 70,070 | ' | ' |
Claims and claim adjustment expense reserves | 33,414 | 33,506 | ' | ' |
Unearned premium reserves | 8,463 | 8,188 | ' | ' |
Contractholder payables | 3,274 | 3,179 | ' | ' |
Payables for reinsurance premiums | 286 | 127 | ' | ' |
Deferred taxes | 24 | ' | ' | ' |
Debt | 692 | 692 | ' | ' |
Other liabilities | 4,039 | 4,109 | ' | ' |
Total liabilities | 50,192 | 49,801 | ' | ' |
Additional paid-in capital | 11,634 | 11,634 | ' | ' |
Retained earnings | 7,716 | 7,868 | ' | ' |
Accumulated other comprehensive income | 1,106 | 767 | ' | ' |
Total shareholders' equity | 20,456 | 20,269 | ' | ' |
Total liabilities and shareholders' equity | 70,648 | 70,070 | ' | ' |
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ' | ' | ' | ' |
Consolidating Balance Sheet | ' | ' | ' | ' |
Fixed maturities, available for sale, at fair value | 20,090 | 20,199 | ' | ' |
Equity securities, available for sale, at fair value | 542 | 484 | ' | ' |
Real estate investments | 893 | 905 | ' | ' |
Short-term securities | 812 | 492 | ' | ' |
Other investments | 978 | 990 | ' | ' |
Total investments | 23,315 | 23,070 | ' | ' |
Cash | 149 | 154 | 163 | 151 |
Investment income accrued | 206 | 231 | ' | ' |
Premiums receivable | 2,086 | 2,001 | ' | ' |
Reinsurance recoverables | 3,065 | 3,421 | ' | ' |
Ceded unearned premiums | 110 | 89 | ' | ' |
Deferred acquisition costs | 224 | 234 | ' | ' |
Deferred taxes | ' | 86 | ' | ' |
Contractholder receivables | 1,093 | 1,149 | ' | ' |
Goodwill | 1,012 | 1,015 | ' | ' |
Other intangible assets | 91 | 101 | ' | ' |
Other assets | 363 | 357 | ' | ' |
Total assets | 31,714 | 31,908 | ' | ' |
Claims and claim adjustment expense reserves | 16,988 | 17,389 | ' | ' |
Unearned premium reserves | 3,718 | 3,662 | ' | ' |
Contractholder payables | 1,093 | 1,149 | ' | ' |
Payables for reinsurance premiums | 205 | 171 | ' | ' |
Deferred taxes | 44 | ' | ' | ' |
Other liabilities | 1,160 | 1,180 | ' | ' |
Total liabilities | 23,208 | 23,551 | ' | ' |
Common stock | 390 | 390 | ' | ' |
Additional paid-in capital | 6,502 | 6,502 | ' | ' |
Retained earnings | 1,070 | 1,042 | ' | ' |
Accumulated other comprehensive income | 544 | 423 | ' | ' |
Total shareholders' equity | 8,506 | 8,357 | ' | ' |
Total liabilities and shareholders' equity | 31,714 | 31,908 | ' | ' |
Reportable Legal Entities [Member] | Travelers [Member] | ' | ' | ' | ' |
Consolidating Balance Sheet | ' | ' | ' | ' |
Fixed maturities, available for sale, at fair value | 39 | 37 | ' | ' |
Equity securities, available for sale, at fair value | 136 | 130 | ' | ' |
Short-term securities | 1,808 | 1,523 | ' | ' |
Other investments | 1 | 1 | ' | ' |
Total investments | 1,984 | 1,691 | ' | ' |
Cash | 2 | 3 | 2 | 2 |
Investment income accrued | 6 | 4 | ' | ' |
Deferred taxes | ' | -62 | ' | ' |
Investment in subsidiaries | 28,950 | 28,616 | ' | ' |
Other assets | 168 | 198 | ' | ' |
Total assets | 31,110 | 30,450 | ' | ' |
Deferred taxes | 54 | ' | ' | ' |
Debt | 5,656 | 5,654 | ' | ' |
Other liabilities | 91 | 10 | ' | ' |
Total liabilities | 5,801 | 5,664 | ' | ' |
Common stock | 21,764 | 21,500 | ' | ' |
Retained earnings | 26,382 | 24,281 | ' | ' |
Accumulated other comprehensive income | 1,300 | 810 | ' | ' |
Treasury stock, at cost | -24,137 | -21,805 | ' | ' |
Total shareholders' equity | 25,309 | 24,786 | ' | ' |
Total liabilities and shareholders' equity | 31,110 | 30,450 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Consolidating Balance Sheet | ' | ' | ' | ' |
Investment in subsidiaries | -28,950 | -28,616 | ' | ' |
Total assets | -28,950 | -28,616 | ' | ' |
Common stock | -390 | -390 | ' | ' |
Additional paid-in capital | -18,136 | -18,136 | ' | ' |
Retained earnings | -8,774 | -8,900 | ' | ' |
Accumulated other comprehensive income | -1,650 | -1,190 | ' | ' |
Total shareholders' equity | -28,950 | -28,616 | ' | ' |
Total liabilities and shareholders' equity | ($28,950) | ($28,616) | ' | ' |
Consolidating_Financial_Statem6
Consolidating Financial Statements (details) - Consolidating Statement of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidating Statement of Cash Flows | ' | ' |
Net income | $2,654 | $2,685 |
Net adjustments to reconcile net income to net cash provided by operating activities | 514 | 204 |
Net cash provided by operating activities | 3,168 | 2,889 |
Proceeds from maturities of fixed maturities | 7,975 | 5,917 |
Proceeds from sales of investments, fixed maturities | 927 | 1,160 |
Proceeds from sales of investments, equity securities | 128 | 57 |
Proceeds from sales of investments, real estate investments | 5 | ' |
Proceeds from sales of investments, other investments | 612 | 545 |
Purchases of investments, fixed maturities | -8,237 | -6,492 |
Purchases of investments, equity securities | -47 | -50 |
Purchases of investments, real estate investments | -41 | -65 |
Purchases of investments, other investments | -406 | -312 |
Net sales (purchases) of short-term securities | -1,163 | -1,893 |
Securities transactions in course of settlement | 119 | 280 |
Acquisition, net of cash acquired | -12 | ' |
Other investing activities | -262 | -254 |
Net cash used in investing activities | -402 | -1,107 |
Payment of debt | ' | -500 |
Issuance of debt | ' | 494 |
Dividends paid to shareholders | -549 | -549 |
Issuance of common stock - employee share options | 154 | 158 |
Treasury stock acquired - share repurchase authorization | -2,275 | -1,400 |
Treasury stock acquired - net employee share-based compensation | -56 | -60 |
Excess tax benefits from share-based payment arrangements | 38 | 43 |
Net cash used in financing activities | -2,688 | -1,814 |
Effect of exchange rate changes on cash | -5 | -3 |
Net increase (decrease) in cash | 73 | -35 |
Cash at beginning of year | 294 | 330 |
Cash at end of period | 367 | 295 |
Income taxes paid (received) | 785 | 724 |
Interest paid | 217 | 206 |
Reportable Legal Entities [Member] | TPC [Member] | ' | ' |
Consolidating Statement of Cash Flows | ' | ' |
Net income | 1,996 | 2,056 |
Net adjustments to reconcile net income to net cash provided by operating activities | 391 | -348 |
Net cash provided by operating activities | 2,387 | 1,708 |
Proceeds from maturities of fixed maturities | 4,886 | 4,096 |
Proceeds from sales of investments, fixed maturities | 511 | 590 |
Proceeds from sales of investments, equity securities | 83 | 21 |
Proceeds from sales of investments, real estate investments | 1 | ' |
Proceeds from sales of investments, other investments | 317 | 337 |
Purchases of investments, fixed maturities | -4,888 | -4,339 |
Purchases of investments, equity securities | -3 | -20 |
Purchases of investments, real estate investments | -22 | ' |
Purchases of investments, other investments | -292 | -222 |
Net sales (purchases) of short-term securities | -552 | -1,563 |
Securities transactions in course of settlement | 66 | 182 |
Acquisition, net of cash acquired | -9 | ' |
Other investing activities | -256 | -250 |
Net cash used in investing activities | -158 | -1,168 |
Payment of debt | ' | -500 |
Capital contributions | ' | 500 |
Dividends paid to parent company | -2,150 | -587 |
Net cash used in financing activities | -2,150 | -587 |
Net increase (decrease) in cash | 79 | -47 |
Cash at beginning of year | 137 | 177 |
Cash at end of period | 216 | 130 |
Income taxes paid (received) | 684 | 691 |
Interest paid | 40 | 52 |
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ' | ' |
Consolidating Statement of Cash Flows | ' | ' |
Net income | 817 | 775 |
Net adjustments to reconcile net income to net cash provided by operating activities | -73 | 224 |
Net cash provided by operating activities | 744 | 999 |
Proceeds from maturities of fixed maturities | 3,088 | 1,820 |
Proceeds from sales of investments, fixed maturities | 415 | 565 |
Proceeds from sales of investments, equity securities | 41 | 36 |
Proceeds from sales of investments, real estate investments | 4 | ' |
Proceeds from sales of investments, other investments | 295 | 208 |
Purchases of investments, fixed maturities | -3,345 | -2,146 |
Purchases of investments, equity securities | -38 | -29 |
Purchases of investments, real estate investments | -19 | -65 |
Purchases of investments, other investments | -114 | -90 |
Net sales (purchases) of short-term securities | -326 | -492 |
Securities transactions in course of settlement | 53 | 98 |
Acquisition, net of cash acquired | -3 | ' |
Other investing activities | -6 | -4 |
Net cash used in investing activities | 45 | -99 |
Dividends paid to parent company | -789 | -885 |
Net cash used in financing activities | -789 | -885 |
Effect of exchange rate changes on cash | -5 | -3 |
Net increase (decrease) in cash | -5 | 12 |
Cash at beginning of year | 154 | 151 |
Cash at end of period | 149 | 163 |
Income taxes paid (received) | 215 | 236 |
Reportable Legal Entities [Member] | Travelers [Member] | ' | ' |
Consolidating Statement of Cash Flows | ' | ' |
Net income | 2,654 | 2,685 |
Net adjustments to reconcile net income to net cash provided by operating activities | 322 | -1,531 |
Net cash provided by operating activities | 2,976 | 1,154 |
Proceeds from maturities of fixed maturities | 1 | 1 |
Proceeds from sales of investments, fixed maturities | 1 | 5 |
Proceeds from sales of investments, equity securities | 4 | ' |
Purchases of investments, fixed maturities | -4 | -7 |
Purchases of investments, equity securities | -6 | -1 |
Net sales (purchases) of short-term securities | -285 | 162 |
Net cash used in investing activities | -289 | 160 |
Issuance of debt | ' | 494 |
Dividends paid to shareholders | -549 | -549 |
Issuance of common stock - employee share options | 154 | 158 |
Treasury stock acquired - share repurchase authorization | -2,275 | -1,400 |
Treasury stock acquired - net employee share-based compensation | -56 | -60 |
Excess tax benefits from share-based payment arrangements | 38 | 43 |
Net cash used in financing activities | -2,688 | -1,314 |
Net increase (decrease) in cash | -1 | ' |
Cash at beginning of year | 3 | 2 |
Cash at end of period | 2 | 2 |
Income taxes paid (received) | -114 | -203 |
Interest paid | 177 | 154 |
Eliminations [Member] | ' | ' |
Consolidating Statement of Cash Flows | ' | ' |
Net income | -2,813 | -2,831 |
Net adjustments to reconcile net income to net cash provided by operating activities | -126 | 1,859 |
Net cash provided by operating activities | -2,939 | -972 |
Capital contributions | ' | -500 |
Dividends paid to parent company | 2,939 | 1,472 |
Net cash used in financing activities | $2,939 | $972 |