Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016 | |
Document and Entity Information | |
Registrant name | TRAVELERS COMPANIES, INC. |
Central index key | 86,312 |
Document type | 8-K |
Document period end date | Dec. 31, 2016 |
Amendment flag | false |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues | ||||||||||||
Premiums | $ 24,534 | $ 23,874 | $ 23,713 | |||||||||
Net investment income | 2,302 | 2,379 | 2,787 | |||||||||
Fee income | 458 | 460 | 450 | |||||||||
Net realized investment gains | [1] | 68 | 3 | 79 | ||||||||
Other revenues | 263 | 99 | 145 | |||||||||
Total revenues | $ 7,193 | $ 6,961 | $ 6,785 | $ 6,686 | $ 6,678 | $ 6,798 | $ 6,710 | $ 6,629 | 27,625 | 26,815 | 27,174 | |
Claims and expenses | ||||||||||||
Claims and claim adjustment expenses | 15,070 | 13,723 | 13,870 | |||||||||
Amortization of deferred acquisition costs | 3,985 | 3,885 | 3,882 | |||||||||
General and administrative expenses | 4,154 | 4,094 | 3,964 | |||||||||
Interest expense | 363 | 373 | 369 | |||||||||
Total claims and expenses | 5,891 | 6,014 | 5,898 | 5,769 | 5,469 | 5,491 | 5,634 | 5,481 | 23,572 | 22,075 | 22,085 | |
Income before income taxes | 1,302 | 947 | 887 | 917 | 1,209 | 1,307 | 1,076 | 1,148 | 4,053 | 4,740 | 5,089 | |
Income tax expense | 359 | 231 | 223 | 226 | 343 | 379 | 264 | 315 | 1,039 | 1,301 | 1,397 | |
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 | |
Net income per share | ||||||||||||
Basic | $ 3.32 | $ 2.48 | $ 2.27 | $ 2.33 | $ 2.87 | $ 3 | $ 2.56 | $ 2.58 | $ 10.39 | $ 10.99 | $ 10.82 | |
Diluted | $ 3.28 | $ 2.45 | $ 2.24 | $ 2.30 | $ 2.83 | $ 2.97 | $ 2.53 | $ 2.55 | $ 10.28 | $ 10.88 | $ 10.70 | |
Weighted average number of common shares outstanding | ||||||||||||
Basic | 288.1 | 310.6 | 338.8 | |||||||||
Diluted | 291 | 313.9 | 342.5 | |||||||||
Cash dividends declared per common share | $ 2.62 | $ 2.38 | $ 2.15 | |||||||||
[1] | Total other-than-temporary impairment (OTTI) losses were $(40) million, $(54) million and $(22) million for the years ended December 31, 2016, 2015 and 2014, respectively. Of total OTTI, credit losses of $(29) million, $(52) million and $(26) million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $(11) million, $(2) million and $4 million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidated Statement of Inco3
Consolidated Statement of Income Parentheticals - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statement of Income | |||
Total other-than-temporary impairment losses | $ (40) | $ (54) | $ (22) |
Other-than-temporary impairment, credit losses recognized in net realized investment gains | (29) | (52) | (26) |
Unrealized gains (losses) 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 | $ (11) | $ (2) | $ 4 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statement of Comprehensive Income | |||||||||||
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 |
Other comprehensive income (loss): | |||||||||||
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | (883) | (1,020) | 976 | ||||||||
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 21 | (14) | 2 | ||||||||
Net changes in benefit plan assets and obligations | 16 | 66 | (494) | ||||||||
Net changes in unrealized foreign currency translation | (41) | (461) | (289) | ||||||||
Other comprehensive income (loss) before income taxes | (887) | (1,429) | 195 | ||||||||
Income tax expense (benefit) | (289) | (392) | 125 | ||||||||
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 | ||||||||
Comprehensive income | $ 2,416 | $ 2,402 | $ 3,762 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Fixed maturities, available for sale, at fair value (amortized cost $59,650 and $58,878) | $ 60,515 | $ 60,658 | ||
Equity securities, available for sale, at fair value (cost $504 and $528) | 732 | 705 | ||
Real estate investments | 928 | 989 | ||
Short-term securities | 4,865 | 4,671 | ||
Other investments | 3,448 | 3,447 | ||
Total investments | 70,488 | 70,470 | ||
Cash | 307 | 380 | $ 374 | $ 294 |
Investment income accrued | 630 | 642 | ||
Premiums receivable | 6,722 | 6,437 | ||
Reinsurance recoverables | 8,287 | 8,910 | ||
Ceded unearned premiums | 589 | 656 | ||
Deferred acquisition costs | 1,923 | 1,849 | 1,835 | |
Deferred taxes | 465 | 296 | ||
Contractholder receivables | 4,609 | 4,374 | ||
Goodwill | 3,580 | 3,573 | ||
Other intangible assets | 268 | 279 | ||
Other assets | 2,377 | 2,318 | ||
Total assets | 100,245 | 100,184 | ||
Liabilities | ||||
Claims and claim adjustment expense reserves | 47,949 | 48,295 | 49,850 | |
Unearned premium reserves | 12,329 | 11,971 | 11,839 | |
Contractholder payables | 4,609 | 4,374 | ||
Payables for reinsurance premiums | 273 | 296 | ||
Debt | 6,437 | 6,344 | ||
Other liabilities | 5,427 | 5,306 | ||
Total liabilities | 77,024 | 76,586 | ||
Shareholders' equity | ||||
Common stock (1,750.0 shares authorized; 279.6 and 295.9 shares issued and outstanding) | 22,614 | 22,172 | ||
Retained earnings | 32,196 | 29,945 | ||
Accumulated other comprehensive loss | (755) | (157) | ||
Treasury stock, at cost (489.5 and 467.6 shares) | (30,834) | (28,362) | ||
Total shareholders' equity | 23,221 | 23,598 | $ 24,836 | |
Total liabilities and shareholders' equity | $ 100,245 | $ 100,184 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals - USD ($) shares in Millions, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheet | ||
Fixed maturities, available for sale, amortized cost | $ 59,650 | $ 58,878 |
Equity securities, available for sale, cost | $ 504 | $ 528 |
Common stock, shares authorized | 1,750 | 1,750 |
Common stock, shares issued | 279.6 | 295.9 |
Common stock, shares outstanding | 279.6 | 295.9 |
Treasury stock, at cost, shares | 489.5 | 467.6 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss), net of tax [Member] | Treasury stock, at cost [Member] | Common shares outstanding [Member] |
Shareholders' equity, beginning of year at Dec. 31, 2013 | $ 21,500 | $ 24,291 | $ 810 | $ (21,805) | ||
Shareholders' Equity [Rollforward] | ||||||
Employee share-based compensation | 149 | |||||
Compensation amortization under share-based plans and other changes | 194 | |||||
Net income | $ 3,692 | 3,692 | ||||
Dividends | (735) | |||||
Other | 3 | |||||
Other comprehensive income (loss) | 70 | 70 | ||||
Treasury stock acquired - share repurchase authorization | (3,275) | |||||
Net shares acquired related to employee share-based compensation plans | (58) | |||||
Shareholders' equity, end of year at Dec. 31, 2014 | 24,836 | 21,843 | 27,251 | 880 | (25,138) | |
Balance, beginning of year at Dec. 31, 2013 | 353.5 | |||||
Common shares outstanding | ||||||
Treasury stock acquired - share repurchase authorization | (35.1) | |||||
Net shares issued under employee share-based compensation plans | 3.8 | |||||
Balance, end of year at Dec. 31, 2014 | 322.2 | |||||
Shareholders' Equity [Rollforward] | ||||||
Employee share-based compensation | 133 | |||||
Compensation amortization under share-based plans and other changes | 196 | |||||
Net income | 3,439 | 3,439 | ||||
Dividends | (744) | |||||
Other | (1) | |||||
Other comprehensive income (loss) | (1,037) | (1,037) | ||||
Treasury stock acquired - share repurchase authorization | (3,150) | |||||
Net shares acquired related to employee share-based compensation plans | (74) | (74) | ||||
Shareholders' equity, end of year at Dec. 31, 2015 | $ 23,598 | 22,172 | 29,945 | (157) | (28,362) | |
Common shares outstanding | ||||||
Treasury stock acquired - share repurchase authorization | (29.6) | |||||
Net shares issued under employee share-based compensation plans | 3.3 | |||||
Balance, end of year at Dec. 31, 2015 | 295.9 | 295.9 | ||||
Shareholders' Equity [Rollforward] | ||||||
Employee share-based compensation | 287 | |||||
Compensation amortization under share-based plans and other changes | 155 | |||||
Net income | $ 3,014 | 3,014 | ||||
Dividends | (762) | |||||
Other | (1) | |||||
Other comprehensive income (loss) | (598) | (598) | ||||
Treasury stock acquired - share repurchase authorization | (2,400) | (2,400) | ||||
Net shares acquired related to employee share-based compensation plans | (72) | (72) | ||||
Shareholders' equity, end of year at Dec. 31, 2016 | $ 23,221 | $ 22,614 | $ 32,196 | $ (755) | $ (30,834) | |
Common shares outstanding | ||||||
Treasury stock acquired - share repurchase authorization | (21.3) | (21.3) | ||||
Net shares issued under employee share-based compensation plans | 5 | |||||
Balance, end of year at Dec. 31, 2016 | 279.6 | 279.6 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cash flows from operating activities | ||||
Net income | $ 3,014 | $ 3,439 | $ 3,692 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net realized investment gains | [1] | (68) | (3) | (79) |
Depreciation and amortization | 826 | 818 | 864 | |
Deferred federal income tax expense | 110 | 117 | 121 | |
Amortization of deferred acquisition costs | 3,985 | 3,885 | 3,882 | |
Equity in income from other investments | (232) | (218) | (486) | |
Premiums receivable | (286) | (185) | (207) | |
Reinsurance recoverables | 610 | 272 | 400 | |
Deferred acquisition costs | (4,061) | (3,920) | (3,926) | |
Claims and claim adjustment expense reserves | (257) | (1,075) | (704) | |
Unearned premium reserves | 372 | 248 | 73 | |
Other operating activities | 189 | 56 | 63 | |
Net cash provided by operating activities | 4,202 | 3,434 | 3,693 | |
Cash flows from investing activities | ||||
Proceeds from maturities of fixed maturities | 8,975 | 11,116 | 10,894 | |
Proceeds from sales of investments: | ||||
Fixed maturities | 1,417 | 1,950 | 1,049 | |
Equity securities | 92 | 59 | 158 | |
Real estate investments | 69 | 31 | 15 | |
Other investments | 839 | 713 | 855 | |
Purchases of investments: | ||||
Fixed maturities | (11,609) | (12,090) | (11,325) | |
Equity securities | (51) | (49) | (52) | |
Real estate investments | (48) | (123) | (48) | |
Other investments | (580) | (534) | (554) | |
Net purchases of short-term securities | (199) | (326) | (498) | |
Securities transactions in course of settlement | (21) | (113) | 82 | |
Acquisition, net of cash acquired | (13) | (12) | ||
Other investing activities | (344) | (304) | (358) | |
Net cash provided by (used in) investing activities | (1,460) | 317 | 206 | |
Cash flows from financing activities | ||||
Treasury stock acquired - share repurchase authorization | (2,400) | (3,150) | (3,275) | |
Treasury stock acquired - net employee share-based compensation | (72) | (74) | (57) | |
Dividends paid to shareholders | (757) | (739) | (729) | |
Payment of debt | (400) | (400) | ||
Issuance of debt | 491 | 392 | ||
Issuance of common stock - employee share options | 332 | 183 | 195 | |
Excess tax benefits from share-based payment arrangements | 55 | 57 | ||
Net cash used in financing activities | (2,806) | (3,733) | (3,809) | |
Effect of exchange rate changes on cash | (9) | (12) | (10) | |
Net increase (decrease) in cash | (73) | 6 | 80 | |
Cash at beginning of year | 380 | 374 | 294 | |
Cash at end of year | 307 | 380 | 374 | |
Supplemental disclosure of cash flow information | ||||
Income taxes paid | 892 | 1,207 | 1,147 | |
Interest paid | $ 358 | $ 365 | $ 365 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(40) million, $(54) million and $(22) million for the years ended December 31, 2016, 2015 and 2014, respectively. Of total OTTI, credit losses of $(29) million, $(52) million and $(26) million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $(11) million, $(2) million and $4 million for the years ended December 31, 2016, 2015 and 2014, 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies disclosure | |
Summary of Significant Accounting Policies disclosure [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. Adoption of Accounting Standards Compensation — Stock Compensation: 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 Financial Accounting Standards Board (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. 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 the 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 was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Presentation of Financial Statements: 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 updated guidance was effective for annual periods ending after December 15, 2016, and interim and annual periods thereafter. The adoption of this guidance did not have any effect on the Company’s results of operations, financial position or liquidity. Derivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In November 2014, the FASB issued updated guidance to clarify when the separation of certain embedded derivative features in a hybrid financial instrument that is issued in the form of a share is required. That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract. Specifically, the updated guidance clarifies that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Consolidation: Amendments to the Consolidation Analysis In February 2015, the FASB issued updated guidance that makes targeted amendments to the current consolidation accounting guidance. The update is in response to accounting complexity concerns, particularly from the asset management industry. The guidance simplifies consolidation accounting by reducing the number of approaches to consolidation, provides a scope exception to registered money market funds and similar unregistered money market funds and ends the indefinite deferral granted to investment companies from applying the variable interest entity guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Interest — Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued updated guidance to clarify the required presentation of debt issuance costs. The updated guidance requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the recognized debt liability, consistent with the treatment of debt discounts. Amortization of debt issuance costs is to be reported as interest expense. The recognition and measurement guidance for debt issuance costs are not affected by the updated guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The updated guidance is consistent with the Company’s accounting policy and its adoption did not have any effect on the Company’s results of operations, financial position or liquidity. Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued updated guidance regarding business combinations that requires an acquirer to recognize post-close measurement adjustments for provisional amounts in the period the adjustment amounts are determined rather than retrospectively. The acquirer is also required to recognize, in the same period’s financial statements, th Compensation — In March 2016, the FASB issued updated guidance to simplify several aspects of accounting for share-based payment transactions as follows: Accounting for Income Taxes Under current accounting guidance, if the deduction for a share-based payment award for tax purposes exceeds, or is less than, the compensation cost recognized for financial reporting purposes, the resulting excess tax benefit, or tax deficiency, is reported as part of additional paid-in capital. Under the updated guidance, these excess tax benefits, or tax deficiencies, are reported as part of income tax expense or benefit in the income statement. The updated guidance also removes the requirement to delay recognition of any excess tax benefit when there are no current taxes payable to which the benefit would be applied. The tax-related cash flows resulting from share-based payments are to be included with other income tax cash flows as an operating activity rather than being reported separately as a financing activity. Forfeitures The updated guidance permits an entity to make an accounting policy election to either account for forfeitures when they occur or continue to apply the current method of accruing the compensation cost based on the number of awards that are expected to vest. Minimum Statutory Tax Withholding Requirements The updated guidance changes the threshold amount an entity can withhold for taxes when settling an equity award and still qualify for equity classification. A company can withhold up to the maximum statutory tax rates in the employees’ applicable jurisdiction rather than withholding up to the employers’ minimum statutory withholding requirement. The update also clarifies that all cash payments made to taxing authorities on behalf of employees for withheld shares are to be presented in financing activities on the statement of cash flows. Transition The updated guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted in any interim period; if early adoption is elected, the entity must adopt all of the amendments in the same reporting period and reflect any adjustments as of the beginning of the fiscal year. The Company adopted the updated guidance effective January 1, 2016. With respect to the forfeiture accounting policy election, the Company elected to retain its policy of accruing the compensation cost based on the number of awards that are expected to vest. The adoption did not result in any cumulative effect adjustments or restatement and did not have a material effect on the Company’s results of operations, financial position or liquidity. Other Accounting Standards Not Yet Adopted 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, 2018. Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued updated guidance to address the recognition, measurement, presentation, and disclosure of certain financial instruments. The updated guidance requires equity investments, except those accounted for under the equity method of accounting, that have readily determinable fair value to be measured at fair value with changes in fair value recognized in net income. Equity investments that do not have readily determinable fair values may be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The updated guidance is effective for the quarter ending March 31, 2018 and will require recognition of a cumulative effect adjustment at adoption. Based on the equity investments currently held by the Company, there would not be a material effect on the Company’s results of operations, financial position or liquidity if the new guidance were able to be adopted in the current accounting period. The impact on the Company’s results of operations, financial position or liquidity at the date of adoption of the updated guidance will be determined by the equity investments held by the Company and the economic conditions at that time. Leases In February 2016, the FASB issued updated guidance to require lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than 12 months. The updated guidance retains the two classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record the right-to-use asset and the lease liability based upon the present value of cash flows. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-to-use asset. Operating leases will recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is not significantly changed by the updated guidance. The updated guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the financial statements. The updated guidance is effective for reporting periods beginning after December 15, 2018, and will require that the earliest comparative period presented include the measurement and recognition of existing leases with an adjustment to equity as if the updated guidance had always been applied. Early adoption is 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. Investments — Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued updated guidance that eliminates the requirement to retroactively apply the equity method of accounting when an investment that was previously accounted for using another method of accounting becomes qualified to apply the equity method due to an increase in the level of ownership interest or degree of influence. If the investment was previously accounted for as an available-for-sale security, any related unrealized gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for the equity method is recognized through earnings. The updated guidance is effective for reporting periods beginning after December 15, 2016, and is to be applied prospectively. Early adoption is 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. Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments In March 2016, the FASB issued updated guidance clarifying that when a call (put) option in a debt instrument is contingently exercisable, the event that triggers the ability to exercise the option is considered to be clearly and closely related to the debt instrument (i.e., the economic characteristics and risks of the option are related to interest rates or credit risks) and the entity does not have to assess whether the option should be accounted for separately. The updated guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is 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. Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued updated guidance for the accounting for credit losses for financial instruments. The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (e.g. reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The updated guidance is effective for reporting periods beginning after December 15, 2019. Early adoption is permitted for reporting periods beginning after December 15, 2018. Based on the financial instruments currently held by the Company, there would not be a material effect on the Company’s results of operations, financial position or liquidity if the new guidance were able to be adopted in the current accounting period. The impact on the Company’s results of operations, financial position or liquidity at the date of adoption of the updated guidance will be determined by the financial instruments held by the Company and the economic conditions at that time. Intangibles — In January 2017, the FASB issued updated guidance that eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge by comparing a reporting unit’s fair value with its carrying amount and recognizing an impairment charge for the excess of the carrying amount over estimated fair value (i.e., Step 1 of current guidance). The implied fair value of goodwill is currently determined in Step 2 by deducting the fair value of all assets and liabilities of the reporting unit (determined in the same manner as a business combination) from the reporting unit’s fair value as determined in Step 1 (including any corporate-level assets or liabilities that were included in the determination of the carrying amount and fair value of the reporting unit in Step 1). The updated guidance requires an entity to perform its annual, or interim, impairment test by either: (1) an initial qualitative assessment of factors (such as changes in management, key personnel, strategy, key technology or customers) that may impact a reporting unit’s fair value and lead to the determination that it is more likely than not that the reporting unit’s fair value is less than its carrying value, including goodwill (consistent with current guidance), or (2) applying Step 1. The updated guidance is effective for reporting periods beginning after December 15, 2019 and is to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 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 Policies Investments Fixed Maturity and Equity Securities Fixed maturities include bonds, notes and redeemable preferred stocks. Fixed maturities, including instruments subject to securities lending agreements, are classified as available for sale and are reported at fair value, with unrealized investment gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Equity securities, which include public common and non-redeemable preferred stocks, are classified as available for sale and are reported at fair value with unrealized gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Real Estate Investments The Company’s real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. Buildings are depreciated on a straight-line basis over the shorter of the expected useful life of the building or 39 years. Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell. Short-term Securities Short-term securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value. Other Investments Investments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships The Company uses the equity method of accounting for investments in private equity limited partnerships, hedge funds and real estate partnerships. The partnerships Other Also included in other investments are non-public common equities, preferred equities and derivatives. Non-public common equities and preferred equities are reported at fair value with changes in fair value, net of income taxes, charged or credited directly to other comprehensive income. The Company’s derivative financial instruments are carried at fair value, with the changes in fair value reflected in the consolidated statement of income in net realized investment gains (losses). For a further discussion of the derivatives used by the Company, see note 3. Net Investment Income Investment income from fixed maturities is recognized based on the constant effective yield method which includes an adjustment for estimated principal pre-payments, if any. The effective yield used to determine amortization for fixed maturities subject to prepayment risk (e.g., asset-backed, loan-backed and structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows, which are obtained from a widely-accepted securities data provider. The adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for non-highly rated prepayable fixed maturities are accounted for using the prospective method. Dividends on equity securities (including those with transfer restrictions) are recognized in income when declared. Rental income on real estate is recognized on a straight-line basis over the lease term. See the section titled: Real Estate in note 3 for further discussion. Investments in private equity limited partnerships, hedge funds, real estate partnerships and joint ventures are accounted for using the equity method of accounting, whereby the Company’s share of the investee’s earnings or losses in the fund is reported in net investment income. Accrual of income is suspended on non-securitized fixed maturities that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only when payments are received. Investments included in the consolidated balance sheet that were not income-producing for the preceding 12 months were not material. For fixed maturities where the Company records an other-than-temporary impairment, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. For fixed maturities where the Company expects a recovery in value, not necessarily to par, the constant effective yield method is utilized, and the investment is amortized to the expected recovery amount. Investment Gains and Losses Net realized investment gains and losses are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Included in net realized investment gains (losses) are other-than-temporary impairment losses on invested assets other than those investments accounted for using the equity method of accounting as described in the “Investment Impairments” section that follows. Investment Impairments The Company conducts a periodic review to identify and evaluate invested assets having other-than-temporary impairments. Some of the factors considered in identifying other-than-temporary impairments include: (1) for fixed maturity investments, whether the Company intends to sell the investment or whether it is more likely than not that the Company will be required to sell the investment prior to an anticipated recovery in value; (2) for non-fixed maturity investments, the Company’s ability and intent to retain the investment for a reasonable period of time sufficient to allow for an anticipated recovery in value; (3) the likelihood of the recoverability of principal and interest for fixed maturity securities (i.e., whether there is a credit loss) or cost for equity securities; (4) the length of time and extent to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities; and (5) the financial condition, near-term and long-term prospects for the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices. Other-Than-Temporary Impairments of Fixed Maturities and Equity Securities For fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component in net realized investment gains (losses). The impairment related to all other factors is reported in other comprehensive income. For equity securities (including public common and non-redeemable preferred stock) and for fixed maturity investments the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount of the impairment is included in net realized investment gains (losses). Upon recognizing an other-than-temporary impairment, the new cost basis of the investment is the previous amortized cost basis less the other-than-temporary impairment recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value; however, for fixed maturity investments the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining expected life of the investment. Determination of Credit Loss — Fixed Maturities The Company determines the credit loss component of fixed maturity investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater than the present value of the expected cash flows, the difference is considered a credit loss and recognized in net realized investment gains (losses). For non-structured fixed maturities (U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, obligations of states, municipalities and political subdivisions, debt securities issued by foreign governments and certain corporate debt), the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. The determination of recovery value incorporates an issuer valuation assumption utilizing one or a combination of valuation methods as deemed appropriate by the Company. The Company determines the undiscounted recovery value by allocating the estimated value of the issuer to the Company’s assessment of the priority of claims. The present value of the cash flows is determined by applying the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment) and an estimated recovery time frame. Generally, that time frame for securities for which the issuer is in bankruptcy is 12 months. For securities for which the issuer is financially troubled but not in bankruptcy, that time frame is generally 24 months. Included in the present value calculation are expected principal and interest payments; however, for securities for which the issuer is classified as bankrupt or in default, the present value calculation assumes no interest payments and a single recovery amount. In estimating the recovery value, significant judgment is involved in the development of assumptions relating to a myriad of factors related to the issuer including, but not limited to, revenue, margin and earnings projections, the likely market or liquidation values of assets, potential additional debt to be incurred pre- or post-bankruptcy/restructuring, the ability to shift existing or new debt to different priority layers, the amount of restructuring/bankruptcy expenses, the size and priority of unfunded pension obligations, litigation or other contingent claims, the treatment of intercompany claims and the likely outcome with respect to inter-creditor conflicts. For structured fixed maturity securities (primarily residential and commercial mortgage-backed securities and asset-backed securities), the Company estimates the present value of the security by projecting future cash flows of the assets underlying the securitization, allocating the flows to the various tranches based on the structure of the securitization and determining the present value of the cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). The Company incorporates levels of delinquencies, defaults and severities as well as credit attributes of the remaining assets in the securitization, along with other economic data, to arrive at its best estimate of the parameters applied to the assets underlying the securitization. In order to project cash flows, the following assumptions are applied to the assets underlying the securitization: (1) voluntary prepayment rates, (2) default rates and (3) loss severity. The key assumptions made for the Prime, Alt-A and first-lien Sub-Prime mortgage-backed securities at December 31, 2016 were as follows: (at December 31, 2016) Prime Alt-A Sub-Prime Voluntary prepayment rates 0% - 35 % 4% - 15 % 3% - 12 % Percentage of remaining pool liquidated due to defaults 0% - 46 % 20% - 73 % 22% - 52 % Loss severity 30% - 65 % 42% - 90 % 75% - 110 % Real Estate Investments On at least an annual basis, the Company obtains independent appraisals for substantially all of its real estate investments. In addition, the carrying value of all real estate investments is reviewed for impairment on a quarterly basis or when events or changes in circumstances indicate that the carrying amount may not be recoverable. The review for impairment considers the valuation from the independent appraisal, when applicable, and incorporates an estimate of the undiscounted cash flows expected to result from the use and eventual disposition of the real estate property. An impairment loss is recognized if the expected future undiscounted cash flows are less than the carrying value of the real estate property. The impairment loss is the amount by which the carrying amount exceeds fa |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information disclosure | |
Segment Information disclosure [Text Block] | 2. SEGMENT INFORMATION The accounting policies used to prepare the segment reporting data for the Company’s three reportable business segments are the same as those described in the Summary of Significant Accounting Policies in note 1. Except as described below for certain legal entities, the Company allocates its invested assets and the related net investment income to its reportable business segments. Pre-tax net investment income is allocated based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment. For investable funds, a benchmark investment yield is developed that reflects the estimated duration of the loss The cost of the Company’s catastrophe treaty program is included in the Company’s ceded premiums and is allocated among reportable business segments based on an estimate of actual market reinsurance pricing using expected losses calculated by the Company’s catastrophe model, adjusted for any experience adjustments. The following tables summarize the components of the Company’s revenues, income, net written premiums and total assets by reportable business segments. (for the year ended Business Bond & Personal Total 2016 Premiums $ 13,855 $ 2,260 $ 8,419 $ 24,534 Net investment income 1,701 239 362 2,302 Fee income 442 — 16 458 Other revenues 168 21 63 252 Total segment revenues (1) $ 16,166 $ 2,520 $ 8,860 $ 27,546 Amortization and depreciation $ 2,783 $ 491 $ 1,530 $ 4,804 Income tax expense 656 309 192 1,157 Segment income (1) 1,982 712 517 3,211 2015 Premiums $ 13,698 $ 2,267 $ 7,909 $ 23,874 Net investment income 1,757 254 368 2,379 Fee income 445 — 15 460 Other revenues 17 22 54 93 Total segment revenues (1) $ 15,917 $ 2,543 $ 8,346 $ 26,806 Amortization and depreciation $ 2,725 $ 501 $ 1,470 $ 4,696 Income tax expense 744 283 416 1,443 Segment income (1) 2,077 683 932 3,692 2014 Premiums $ 13,515 $ 2,275 $ 7,923 $ 23,713 Net investment income 2,072 293 422 2,787 Fee income 438 — 12 450 Other revenues 34 20 91 145 Total segment revenues (1) $ 16,059 $ 2,588 $ 8,448 $ 27,095 Amortization and depreciation $ 2,714 $ 521 $ 1,503 $ 4,738 Income tax expense 795 348 369 1,512 Segment income (1) 2,297 760 841 3,898 (1) Net written premiums by market were as follows: (for the year ended December 31, in millions) 2016 2015 2014 Business Insurance: Domestic: Select Accounts $ 2,729 $ 2,716 $ 2,707 Middle Market 7,379 7,186 6,973 National Accounts 1,058 1,048 1,047 National Property and Other 1,779 1,791 1,757 Total Domestic 12,945 12,741 12,484 International 955 1,033 1,193 Total Business Insurance 13,900 13,774 13,677 Bond & Specialty Insurance: Domestic: Management Liability 1,342 1,326 1,339 Surety 757 755 764 Total Domestic 2,099 2,081 2,103 International 172 192 191 Total Bond & Specialty Insurance 2,271 2,273 2,294 Personal Insurance: Domestic: Agency: Automobile 4,103 3,534 3,260 Homeowners and Other 3,772 3,687 3,718 Total Agency 7,875 7,221 6,978 Direct-to-Consumer 309 236 187 Total Domestic 8,184 7,457 7,165 International 603 617 768 Total Personal Insurance 8,787 8,074 7,933 Total consolidated net written premiums $ 24,958 $ 24,121 $ 23,904 Business Segment Reconciliations (for the year ended December 31, in millions) 2016 2015 2014 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 3,969 $ 3,867 $ 3,711 Commercial automobile 2,010 1,922 1,900 Commercial property 1,769 1,766 1,747 General liability 1,977 1,898 1,834 Commercial multi-peril 3,148 3,133 3,071 Other 31 39 42 Total Domestic 12,904 12,625 12,305 International 951 1,073 1,210 Total Business Insurance 13,855 13,698 13,515 Bond & Specialty Insurance: Domestic: Fidelity and surety 962 954 936 General liability 946 955 963 Other 180 176 177 Total Domestic 2,088 2,085 2,076 International 172 182 199 Total Bond & Specialty Insurance 2,260 2,267 2,275 Personal Insurance: Domestic Automobile 4,013 3,512 3,316 Homeowners and Other 3,813 3,756 3,809 Total Domestic 7,826 7,268 7,125 International 593 641 798 Total Personal Insurance 8,419 7,909 7,923 Total earned premiums 24,534 23,874 23,713 Net investment income 2,302 2,379 2,787 Fee income 458 460 450 Other revenues 252 93 145 Total segment revenues 27,546 26,806 27,095 Other revenues 11 6 — Net realized investment gains 68 3 79 Total revenues $ 27,625 $ 26,815 $ 27,174 Income reconciliation, net of tax Total segment income $ 3,211 $ 3,692 $ 3,898 Interest Expense and Other (1) (244 ) (255 ) (257 ) Core income 2,967 3,437 3,641 Net realized investment gains 47 2 51 Net income $ 3,014 $ 3,439 $ 3,692 (1) (at December 31, in millions) 2016 2015 Asset reconciliation: Business Insurance $ 75,730 $ 75,915 Bond & Specialty Insurance 8,726 8,820 Personal Insurance 15,426 15,065 Total assets for reportable segments 99,882 99,800 Other assets (1) 363 384 Total consolidated assets $ 100,245 $ 100,184 (1) Enterprise-Wide Disclosures The Company does not have revenue from transactions with a single customer amounting to 10 percent or more of its revenues. The following table presents revenues of the Company’s operations based on location: (for the year ended December 31, in millions) 2016 2015 2014 U.S. $ 25,904 $ 25,127 $ 25,103 Non-U.S.: Canada 1,154 1,202 1,474 Other Non-U.S. 567 486 597 Total Non-U.S. 1,721 1,688 2,071 Total revenues $ 27,625 $ 26,815 $ 27,174 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,031 $ 9 $ 5 $ 2,035 Obligations of states, municipalities and political subdivisions: Local general obligation 13,955 271 182 14,044 Revenue 10,910 215 147 10,978 State general obligation 1,717 36 22 1,731 Pre-refunded 4,968 190 1 5,157 Total obligations of states, municipalities and political subdivisions 31,550 712 352 31,910 Debt securities issued by foreign governments 1,631 34 3 1,662 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,614 100 6 1,708 All other corporate bonds 22,737 508 138 23,107 Redeemable preferred stock 87 6 — 93 Total $ 59,650 $ 1,369 $ 504 $ 60,515 Amortized Gross Unrealized Fair (at December 31, 2015, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,202 $ 8 $ 16 $ 2,194 Obligations of states, municipalities and political subdivisions: Local general obligation 12,744 577 3 13,318 Revenue 9,492 472 4 9,960 State general obligation 1,978 97 2 2,073 Pre-refunded 5,813 247 — 6,060 Total obligations of states, municipalities and political subdivisions 30,027 1,393 9 31,411 Debt securities issued by foreign governments 1,829 45 1 1,873 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,863 124 6 1,981 All other corporate bonds 22,854 523 288 23,089 Redeemable preferred stock 103 7 — 110 Total $ 58,878 $ 2,100 $ 320 $ 60,658 The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (at December 31, 2016, in millions) Amortized Fair Due in one year or less $ 5,619 $ 5,677 Due after 1 year through 5 years 16,417 16,926 Due after 5 years through 10 years 14,258 14,449 Due after 10 years 21,742 21,755 58,036 58,807 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,614 1,708 Total $ 59,650 $ 60,515 Pre-refunded bonds of $5.16 billion and $6.06 billion at December 31, 2016 and 2015, 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. The Company’s fixed maturity investment portfolio at December 31, 2016 and 2015 included $1.71 billion and $1.98 billion, respectively, of residential mortgage-backed securities, which include pass-through securities and collateralized mortgage obligations (CMOs). Included in the totals at December 31, 2016 and 2015 were $563 million and $676 million, respectively, of GNMA, FNMA, FHLMC (excluding FHA project loans) and Canadian government guaranteed residential mortgage-backed pass-through securities classified as available for sale. Also included in those totals were residential CMOs classified as available for sale with a fair value of $1.15 billion and $1.30 billion at December 31, 2016 and 2015, respectively. Approximately 51% and 48% of the Company’s CMO holdings at December 31, 2016 and 2015, respectively, were guaranteed by or fully collateralized by securities issued by GNMA, FNMA or FHLMC. The average credit rating of the $566 million and $683 million of non-guaranteed CMO holdings at December 31, 2016 and 2015, respectively, was “Baa2” at both dates. The average credit rating of all of the above securities was “Aa2” and “Aa3” at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, the Company held commercial mortgage-backed securities (CMBS, including FHA project loans) of $938 million and $865 million, respectively, which are included in “All other corporate bonds” in the tables above. At December 31, 2016 and 2015, approximately $290 million and $303 million of these securities, respectively, or the loans backing such securities, contained guarantees by the U.S. government or a government-sponsored enterprise. The average credit rating of the $648 million and $562 million of non-guaranteed securities at December 31, 2016 and 2015, respectively, was “Aaa” at both dates. The CMBS portfolio is supported by loans that are diversified across economic sectors and geographical areas. The average credit rating of the CMBS portfolio was “Aaa” at both December 31, 2016 and 2015. At December 31, 2016 and 2015, the Company had $286 million and $269 million, respectively, of securities on loan as part of a tri-party lending agreement. Proceeds from sales of fixed maturities classified as available for sale were $1.42 billion, $1.95 billion and $1.05 billion in 2016, 2015 and 2014, respectively. Gross gains of $79 million, $95 million and $44 million and gross losses of $20 million, $14 million and $12 million were realized on those sales in 2016, 2015 and 2014, respectively. At December 31, 2016 and 2015, the Company’s insurance subsidiaries had $4.56 billion and $4.68 billion, respectively, of securities on deposit at financial institutions in certain states pursuant to the respective states’ insurance regulatory requirements. Funds deposited with third parties to be used as collateral to secure various liabilities on behalf of insureds, cedants and other creditors had a fair value of $35 million and $28 million at December 31, 2016 and 2015, respectively. Other investments pledged as collateral securing outstanding letters of credit had a fair value of $3 million and $21 million at December 31, 2016 and 2015, respectively. In addition, the Company utilized a Lloyd’s trust deposit at December 31, 2016 and 2015, whereby owned securities with a fair value of approximately $97 million and $140 million, respectively, held by an insurance subsidiary were pledged into a Lloyd’s trust account to support capital requirements for the Company’s operations at Lloyd’s. Equity Securities The cost and fair value of investments in equity securities were as follows: Gross Unrealized Fair (at December 31, 2016, in millions) Cost Gains Losses Value Public common stock $ 390 $ 216 $ 3 $ 603 Non-redeemable preferred stock 114 20 5 129 Total $ 504 $ 236 $ 8 $ 732 Gross Unrealized Fair (at December 31, 2015, in millions) Cost Gains Losses Value Public common stock $ 386 $ 164 $ 7 $ 543 Non-redeemable preferred stock 142 26 6 162 Total $ 528 $ 190 $ 13 $ 705 Proceeds from sales of equity securities classified as available for sale were $92 million, $59 million and $158 million in 2016, 2015 and 2014, respectively. Gross gains of $17 million, $16 million and $27 million and gross losses of $3 million, $10 million and $3 million were realized on those sales in 2016, 2015 and 2014, respectively. Real Estate The Company’s real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. The Company negotiates commercial leases with individual tenants through unrelated, licensed real estate brokers. Negotiated terms and conditions include, among others, rental rates, length of lease period and improvements to the premises to be provided by the landlord. Proceeds from the sale of real estate investments were $69 million, $31 million and $15 million in 2016, 2015 and 2014, respectively. Gross gains of $7 million, $4 million and $6 million were realized on those sales in 2016, 2015 and 2014, respectively, and there were no gross losses. Accumulated depreciation on real estate held for investment purposes was $332 million and $320 million at December 31, 2016 and 2015, respectively. Future minimum rental income on operating leases relating to the Company’s real estate properties is expected to be $84 million, $74 million, $62 million, $46 million and $34 million for 2017, 2018, 2019, 2020 and 2021, respectively, and $45 million for 2022 and thereafter. Short-term Securities The Company’s short-term securities consist of Aaa-rated registered money market funds, U.S. Treasury securities, high-quality commercial paper (primarily A1/P1) and high-quality corporate securities purchased within a year to their maturity with a combined average of 80 days to maturity at December 31, 2016. Variable Interest Entities Entities which do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (VIE). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company is a passive investor in limited partner equity interests issued by third party VIEs. These include certain of the Company’s investments in private equity limited partnerships, hedge funds and real estate partnerships where the Company is not related to the general partner. These investments are generally accounted for under the equity method and reported in the Company’s consolidated balance sheet as other investments unless the Company is deemed the primary beneficiary. These equity interests generally cannot be redeemed. Distributions from these investments are received by the Company as a result of liquidation of the underlying investments of the funds and/or as income distribution. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheet and any unfunded commitment. Neither the carrying amounts nor the unfunded commitments related to these VIEs are material. Unrealized Investment Losses The following tables summarize, for all investments in an unrealized loss position at December 31, 2016 and 2015, 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. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1, in determining whether such investments are other-than-temporarily impaired. Less than 12 months 12 months or Total (at December 31, 2016, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,124 $ 5 $ — $ — $ 1,124 $ 5 Obligations of states, municipalities and political subdivisions 9,781 352 12 — 9,793 352 Debt securities issued by foreign governments 360 3 — — 360 3 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 528 5 43 1 571 6 All other corporate bonds 6,470 115 437 23 6,907 138 Redeemable preferred stock — — — — — — Total fixed maturities 18,263 480 492 24 18,755 504 Equity securities Public common stock 45 2 10 1 55 3 Non-redeemable preferred stock 2 — 59 5 61 5 Total equity securities 47 2 69 6 116 8 Total $ 18,310 $ 482 $ 561 $ 30 $ 18,871 $ 512 Less than 12 months 12 months or Total (at December 31, 2015, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,820 $ 15 $ 28 $ 1 $ 1,848 $ 16 Obligations of states, municipalities and political subdivisions 928 7 142 2 1,070 9 Debt securities issued by foreign governments 172 1 — — 172 1 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 473 4 57 2 530 6 All other corporate bonds 7,725 197 710 91 8,435 288 Redeemable preferred stock 8 — — — 8 — Total fixed maturities 11,126 224 937 96 12,063 320 Equity securities Public common stock 48 6 33 1 81 7 Non-redeemable preferred stock 47 3 38 3 85 6 Total equity securities 95 9 71 4 166 13 Total $ 11,221 $ 233 $ 1,008 $ 100 $ 12,229 $ 333 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 December 31, 2016, 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 (in millions) 3 Months Greater Than 3 Greater Than 6 Greater Than Total Fixed maturities Mortgage-backed securities $ — $ — $ — $ — $ — Other 1 — — 2 3 Total fixed maturities 1 — — 2 3 Equity securities 1 — — — 1 Total $ 2 $ — $ — $ 2 $ 4 These unrealized losses at December 31, 2016 represented less than 1% of the combined fixed maturity and equity security portfolios on a pre-tax basis and less than 1% of shareholders’ equity on an after-tax basis. Impairment Charges Impairment charges included in net realized investment gains in the consolidated statement of income were as follows: (for the year ended December 31, in millions) 2016 2015 2014 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 All other corporate bonds 15 13 15 Redeemable preferred stock — — — Total fixed maturities 15 13 16 Equity securities Public common stock 9 37 9 Non-redeemable preferred stock 3 — — Total equity securities 12 37 9 Other investments 2 2 1 Total $ 29 $ 52 $ 26 The following tables present the cumulative amount of and the changes during the year in credit losses on fixed maturities held at December 31, 2016 and 2015, that were recognized in the consolidated statement of income from other-than-temporary impairments (OTTI) and for which a portion of the OTTI was recognized in other comprehensive income (loss) in the consolidated balance sheet. Year ended December 31, 2016 (in millions) Cumulative Additions for Additions for Reductions Adjustments Cumulative Fixed maturities Mortgage-backed securities, collateralized mortgage obligations and pass-through securities $ 32 $ — $ — $ — $ (1 ) $ 31 All other corporate bonds 51 13 — (7 ) (3 ) 54 Total fixed maturities $ 83 $ 13 $ — $ (7 ) $ (4 ) $ 85 Year ended December 31, 2015 (in millions) Cumulative Additions for Additions for Reductions Adjustments Cumulative Fixed maturities Mortgage-backed securities, collateralized mortgage obligations and pass-through securities $ 40 $ — $ — $ (6 ) $ (2 ) $ 32 All other corporate bonds 59 2 — (4 ) (6 ) 51 Total fixed maturities $ 99 $ 2 $ — $ (10 ) $ (8 ) $ 83 Concentrations and Credit Quality Concentrations of credit risk arise from exposure to counterparties that are engaged in similar activities and have similar economic characteristics that could cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Company seeks to mitigate credit risk by actively monitoring the creditworthiness of counterparties, obtaining collateral as deemed appropriate and applying controls that include credit approvals, limits of credit exposure and other monitoring procedures. At December 31, 2016, other than U.S. Treasury securities and obligations of U.S. government and government agencies and authorities, the Company was not exposed to any concentration of credit risk of a single issuer greater than 5% of the Company’s shareholders’ equity. At December 31, 2015, other than U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, and obligations of the Canadian government, the Company was not exposed to any concentration of credit risk of a single issuer greater than 5% of the Company’s shareholders’ equity. Included in fixed maturities are below investment grade securities totaling $1.76 billion and $1.71 billion at December 31, 2016 and 2015, respectively. The Company defines its below investment grade securities as those securities rated below investment grade by external rating agencies, or the equivalent by the Company when a public rating does not exist. Such securities include below investment grade bonds that are publicly traded and certain other privately issued bonds that are classified as below investment grade loans. Net Investment Income (for the year ended December 31, in millions) 2016 2015 2014 Gross investment income Fixed maturities $ 1,981 $ 2,091 $ 2,244 Equity securities 37 39 40 Short-term securities 29 12 9 Real estate investments 51 48 44 Other investments 242 230 489 Gross investment income 2,340 2,420 2,826 Investment expenses 38 41 39 Net investment income $ 2,302 $ 2,379 $ 2,787 Changes in net unrealized gains on investment securities that are included as a separate component of other comprehensive income (loss) were as follows: (at and for the year ended December 31, in millions) 2016 2015 2014 Changes in net unrealized investment gains Fixed maturities $ (915 ) $ (893 ) $ 913 Equity securities 51 (143 ) 63 Other investments 2 2 2 Change in net pre-tax unrealized gains on investment securities (862 ) (1,034 ) 978 Related tax expense (benefit) (303 ) (357 ) 334 Change in net unrealized gains on investment securities (559 ) (677 ) 644 Balance, beginning of year 1,289 1,966 1,322 Balance, end of year $ 730 $ 1,289 $ 1,966 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 both December 31, 2016 and 2015, the Company had $400 million notional value of open U.S. Treasury futures contracts. Net realized investment losses related to U.S. Treasury futures contracts in 2016, 2015 and 2014 were not significant. The Company also sells a small amount of U.S. equity index put option contracts that are settled for cash upon their expiration or when they are rolled over. Net realized investment losses related to these derivatives in 2016, 2015 and 2014 were not significant. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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: · - · - · - 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 December 31, 2016 and 2015. 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 Company reviews the estimates of fair value provided by the pricing service and compares the estimates to the Company’s knowledge of the market to determine if the estimates obtained are representative of the prices in the market. In addition, the Company has periodic discussions with the pricing service to discuss and understand any changes in process and their responsiveness to changes occurring in the markets. The Company also monitors all monthly price changes and further evaluates any securities whose value changed more than 10% from the prior month. The Company has implemented various other processes including randomly selecting purchased or sold securities and comparing execution prices to the estimates from the pricing service as well as reviewing securities whose valuation did not change from their previous valuation (stale price review). The Company also uses a second independent pricing service to further test the primary pricing service’s valuation of the Company’s fixed maturity portfolio. These processes have not highlighted any significant issues with the fair value estimates received from the primary pricing service. 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 fixed maturities are included in Level 2, the Company holds a number of municipal bonds and corporate bonds which are not valued by the pricing service and estimates the fair value of these bonds using an internal pricing matrix with some unobservable inputs that are significant to the valuation. Due to the limited amount of observable market information, the Company includes the fair value estimates for these particular bonds in Level 3. The fair value of the fixed maturities for which the Company used an internal pricing matrix was $99 million and $101 million at December 31, 2016 and 2015, 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 $85 million and $117 million at December 31, 2016 and 2015, 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 $17 million and $18 million fair value of these investments at December 31, 2016 and 2015, respectively, was disclosed in Level 1. At December 31, 2016 and 2015, the Company held investments in non-public common and preferred equity securities, with fair value estimates of $36 million and $38 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 December 31, 2016 and 2015 in the amount disclosed in Level 3. Derivatives At December 31, 2015, the Company held $2 million 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. At December 31, 2016, the Company held no such convertible bonds. Fair Value Hierarchy The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis. An investment transferred between levels during a period is transferred at its fair value as of the beginning of that period. (at December 31, 2016, 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 $ 2,035 $ 2,035 $ — $ — Obligations of states, municipalities and political subdivisions 31,910 — 31,898 12 Debt securities issued by foreign governments 1,662 — 1,662 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,708 — 1,704 4 All other corporate bonds 23,107 — 22,939 168 Redeemable preferred stock 93 3 90 — Total fixed maturities 60,515 2,038 58,293 184 Equity securities Public common stock 603 603 — — Non-redeemable preferred stock 129 51 78 — Total equity securities 732 654 78 — Other investments 53 17 — 36 Total $ 61,300 $ 2,709 $ 58,371 $ 220 (at December 31, 2015, 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 $ 2,194 $ 2,194 $ — $ — Obligations of states, municipalities and political subdivisions 31,411 — 31,398 13 Debt securities issued by foreign governments 1,873 — 1,873 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,981 — 1,957 24 All other corporate bonds 23,089 — 22,915 174 Redeemable preferred stock 110 3 100 7 Total fixed maturities 60,658 2,197 58,243 218 Equity securities Public common stock 543 543 — — Non-redeemable preferred stock 162 55 107 — Total equity securities 705 598 107 — Other investments 56 18 — 38 Total $ 61,419 $ 2,813 $ 58,350 $ 256 During the years ended December 31, 2016 and 2015, the Company’s transfers between Level 1 and Level 2 were not significant. The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2016 and 2015. (in millions) Fixed Other Total Balance at December 31, 2015 $ 218 $ 38 $ 256 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) 3 5 8 Reported in increases in other comprehensive income 2 3 5 Purchases, sales and settlements/maturities: Purchases 123 — 123 Sales (19 ) (10 ) (29 ) Settlements/maturities (66 ) — (66 ) Gross transfers into Level 3 19 — 19 Gross transfers out of Level 3 (96 ) — (96 ) Balance at December 31, 2016 $ 184 $ 36 $ 220 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 $ — $ (2 ) $ (2 ) (1) (in millions) Fixed Other Total Balance at December 31, 2014 $ 232 $ 36 $ 268 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) 1 2 3 Reported in increases (decreases) in other comprehensive income (4 ) 1 (3 ) Purchases, sales and settlements/maturities: Purchases 202 1 203 Sales (7 ) (2 ) (9 ) Settlements/maturities (41 ) — (41 ) Gross transfers into Level 3 21 — 21 Gross transfers out of Level 3 (186 ) — (186 ) Balance at December 31, 2015 $ 218 $ 38 $ 256 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 ) $ (1 ) (1) Financial Instruments Disclosed, But Not Carried, At Fair Value The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and (at December 31, 2016, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 4,865 $ 4,865 $ 1,223 $ 3,607 $ 35 Financial liabilities: Debt $ 6,337 $ 7,262 $ — $ 7,262 $ — Commercial paper 100 100 — 100 — (at December 31, 2015, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 4,671 $ 4,671 $ 1,685 $ 2,958 $ 28 Financial liabilities: Debt $ 6,244 $ 7,180 $ — $ 7,180 $ — Commercial paper 100 100 — 100 — The Company utilized a pricing service to estimate fair value for approximately 98% and 99% of short-term securities at December 31, 2016 and 2015, respectively. A description of the process and inputs used by the pricing service to estimate fair value is discussed in the “ Fixed Maturities The Company utilized a pricing service to estimate fair value for 100% of its debt, including commercial paper, at December 31, 2016 and 2015. 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 years ended December 31, 2016 and 2015. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance disclosure | |
Reinsurance disclosure [Text Block] | 5. REINSURANCE The Company’s consolidated financial statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) the Company has underwritten to other insurance companies who agree to share these risks. The primary purpose of ceded reinsurance is to protect the Company, at a cost, from losses in excess of the amount it is prepared to accept and to protect the Company’s capital. Reinsurance is placed on both a quota-share and excess-of-loss basis. Ceded reinsurance arrangements do not discharge the Company as the primary insurer, The Company utilizes a corporate catastrophe excess-of-loss reinsurance treaty with unaffiliated reinsurers to manage its exposure to losses resulting from catastrophes and to protect its capital. In addition to the coverage provided under this treaty, the Company also utilizes catastrophe bonds to protect against certain weather-related and earthquake losses in the Northeastern United States, and a Northeast catastrophe reinsurance treaty to protect against losses resulting from weather-related and earthquake catastrophes in the Northeastern United States. The Company also utilizes excess-of-loss treaties to protect against earthquake losses up to a certain threshold in Business Insurance (for certain markets) and for Personal Insurance, and several reinsurance treaties specific to its international operations. The Company monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to evaluate the collectability of amounts due from reinsurers and as a basis for determining the reinsurers with which the Company conducts ongoing business. In addition, in the ordinary course of business, the Company may become involved in coverage disputes with its reinsurers. Some of these disputes could result in lawsuits and arbitrations brought by or against the reinsurers to determine the Company’s rights and obligations under the various reinsurance agreements. The Company employs dedicated specialists and strategies to manage reinsurance collections and disputes. Included in reinsurance recoverables are amounts related to involuntary reinsurance arrangements. The Company is required to participate in various involuntary reinsurance arrangements through assumed reinsurance, principally with regard to residual market mechanisms in workers’ compensation and automobile insurance, as well as homeowners’ insurance in certain coastal areas. In addition, the Company provides services for several of these involuntary arrangements (mandatory pools and associations) under which it writes such residual market business directly, then cedes 100% of this business to the mandatory pool. Such participations and servicing arrangements are arranged to mitigate credit risk to the Company, as any ceded balances are jointly backed by all the pool members. Also included in reinsurance recoverables are amounts related to certain structured settlements. Structured settlements are annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the structured settlement is included in reinsurance recoverables and the related claim cost is included in the liability for claims and claim adjustment expense reserves, as the Company retains the contingent liability to the claimant. If it is expected that the life insurance company is not able to pay, the Company would recognize an impairment of the related reinsurance recoverable if, and to the extent, the purchased annuities are not covered by state guaranty associations. In the event that the life insurance company fails to make the required annuity payments, the Company would be required to make such payments. The following is a summary of reinsurance financial data reflected in the consolidated statement of income: (for the year ended December 31, in millions) 2016 2015 2014 Written premiums Direct $ 25,567 $ 24,939 $ 24,844 Assumed 928 843 788 Ceded (1,537 ) (1,661 ) (1,728 ) Total net written premiums $ 24,958 $ 24,121 $ 23,904 Earned premiums Direct $ 25,262 $ 24,740 $ 24,810 Assumed 875 814 743 Ceded (1,603 ) (1,680 ) (1,840 ) Total net earned premiums $ 24,534 $ 23,874 $ 23,713 Percentage of assumed earned premiums to net earned premiums 3.6 % 3.4 % 3.1 % Ceded claims and claim adjustment expenses incurred $ 762 $ 1,034 $ 953 Ceded premiums include the premiums paid for coverage provided by the Company’s catastrophe bonds. Reinsurance recoverables include amounts recoverable on both paid and unpaid claims and claim adjustment expenses and were as follows: (at December 31, in millions) 2016 2015 Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses $ 3,181 $ 3,848 Allowance for uncollectible reinsurance (116 ) (157 ) Net reinsurance recoverables 3,065 3,691 Mandatory pools and associations 2,054 2,015 Structured settlements 3,168 3,204 Total reinsurance recoverables $ 8,287 $ 8,910 Terrorism Risk Insurance Program The Terrorism Risk Insurance Program is a Federal program administered by the Department of the Treasury authorized through December 31, 2020 that provides for a system of shared public and private compensation for certain insured losses resulting from certified acts of terrorism. In order for a loss to be covered under the program (subject losses), the loss must meet certain aggregate industry loss minimums and must be the result of an event that is certified as an act of terrorism by the U.S. Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General of the United States. The annual aggregate industry loss minimum under the program is $140 million for 2017, but will increase over the life of the program to $200 million by December 31, 2020. The program excludes from participation the following types of insurance: Federal crop insurance, private mortgage insurance, financial guaranty insurance, medical malpractice insurance, health or life insurance, flood insurance, reinsurance, commercial automobile, professional liability (other than directors and officers’), surety, burglary and theft, and farm-owners multi-peril. In the case of a war declared by Congress, only workers’ compensation losses are covered by the program. All commercial property and casualty insurers licensed in the United States are generally required to participate in the program. Under the program, a participating insurer, in exchange for making terrorism insurance available, is entitled to be reimbursed by the Federal Government for 83% of subject losses in 2017, after an insurer deductible, subject to an annual cap. This reimbursement percentage will decrease over the remaining four-year life of the program to 80% of subject losses by December 31, 2020. The deductible for any calendar year is equal to 20% of the insurer’s direct earned premiums for covered lines for the preceding calendar year. The Company’s estimated deductible under the program is $2.45 billion for 2017. The annual cap limits the amount of aggregate subject losses for all participating insurers to $100 billion. Once subject losses have reached the $100 billion aggregate during a program year, participating insurers will not be liable under the program for additional covered terrorism losses for that program year. There have been no terrorism-related losses that have triggered program coverage since the program was established. Since the law is untested, there is substantial uncertainty as to how it will be applied if an act of terrorism is certified under the program. It is also possible that future legislative action could change or eliminate the program. Further, given the unpredictable frequency and severity of terrorism losses, as well as the limited terrorism coverage in the Company’s own reinsurance program, future losses from acts of terrorism, particularly involving nuclear, biological, chemical or radiological events, could be material to the Company’s operating results, financial position and/or liquidity in future periods. In addition, the Company may not have sufficient resources to respond to claims arising from a high frequency of high severity natural catastrophes and/or of man-made catastrophic events involving conventional means. While the Company seeks to manage its exposure to man-made catastrophic events involving conventional means, the Company may not have sufficient resources to respond to claims arising out of one or more man-made catastrophic events involving nuclear, biological, chemical or radiological means. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets disclosure | |
Goodwill and Other Intangible Assets disclosure [Text Block] | 6. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Company’s goodwill by segment. Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates. (at December 31, in millions) 2016 2015 Business Insurance $ 2,227 $ 2,225 Bond & Specialty Insurance 549 549 Personal Insurance 778 773 Other 26 26 Total $ 3,580 $ 3,573 Other The following tables present a summary of the Company’s other intangible assets by major asset class: (at December 31, 2016, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 159 $ 51 Not subject to amortization 217 — 217 Total $ 427 $ 159 $ 268 (at December 31, 2015, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 148 $ 62 Not subject to amortization 217 — 217 Total $ 427 $ 148 $ 279 (1) Amortization expense of intangible assets was $11 million, $26 million and $46 million for the years ended December 31, 2016, 2015 and 2014, respectively. Intangible asset amortization expense is estimated to be $9 million in 2017, $8 million in 2018, $6 million in 2019, $5 million in 2020 and $5 million in 2021. |
Insurance Claim Reserves
Insurance Claim Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Claim Reserves disclosure | |
Insurance Claim Reserves disclosure [Text Block] | 7. INSURANCE CLAIM RESERVES Claims and claim adjustment expense reserves were as follows: (at December 31, in millions) 2016 2015 Property-casualty $ 47,929 $ 48,272 Accident and health 20 23 Total $ 47,949 $ 48,295 The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses: (at and for the year ended December 31, in millions) 2016 2015 2014 Claims and claim adjustment expense reserves at beginning of year $ 48,272 $ 49,824 $ 50,865 Less reinsurance recoverables on unpaid losses 8,449 8,788 9,280 Net reserves at beginning of year 39,823 41,036 41,585 Estimated claims and claim adjustment expenses for claims arising in the current year 15,675 14,471 14,688 Estimated decrease in claims and claim adjustment expenses for claims arising in prior years (680 ) (817 ) (885 ) Total increases 14,995 13,654 13,803 Claims and claim adjustment expense payments for claims arising in: Current year 6,220 5,725 5,895 Prior years 8,576 8,749 8,171 Total payments 14,796 14,474 14,066 Acquisition (1) — 2 — Unrealized foreign exchange gain (74 ) (395 ) (286 ) Net reserves at end of year 39,948 39,823 41,036 Plus reinsurance recoverables on unpaid losses 7,981 8,449 8,788 Claims and claim adjustment expense reserves at end of year $ 47,929 $ 48,272 $ 49,824 (1) Gross claims and claim adjustment expense reserves at December 31, 2016 decreased by $343 million from December 31, 2015. This decrease primarily reflected the impacts of Reinsurance recoverables on unpaid losses at December 31, 2016 decreased by $468 million from December 31, 2015, primarily reflecting the impact of cash collections in 2016, including the Included in the claims and claim adjustment expense reserves are reserves for long-term disability and annuity claim payments, primarily arising from workers’ compensation insurance and workers’ compensation excess insurance policies, that are discounted to the present value of the estimated future payments. The discount rate used was 5% at both December 31, 2016 and 2015. Total reserves net of the discount were $2.17 billion and $2.13 billion, and the related amount of discount was $1.08 billion and $1.07 billion, at December 31, 2016 and 2015, respectively. Accretion of the discount is reported as part of “claims and claim adjustment expenses” in the Consolidated Statement of Income. Prior Year Reserve Development The following disclosures regarding reserve development are on a “net of reinsurance” basis. 2016. In 2016, estimated claims and claim adjustment expenses incurred included $680 million of net favorable development for claims arising in prior years, including $771 million of net favorable prior year reserve development impacting the Company’s results of operations and $50 million of accretion of discount. Business Insurance Bond & Specialty Insurance Personal Insurance 2015. In 2015, estimated claims and claim adjustment expenses incurred included $817 million of net favorable development for claims arising in prior years, including $941 million of net favorable prior year reserve development impacting the Company’s results of operations and $51 million of accretion of discount. Business Insurance Bond & Specialty Insurance Personal Insurance 2014. In 2014, estimated claims and claim adjustment expenses incurred included $885 million of net favorable development for claims arising in prior years, including $941 million of net favorable prior year reserve development impacting the Company’s results of operations and $50 million of accretion of discount. Business Insurance Bond & Specialty Insurance Personal Insurance Claims Development The following is a summary of claims and claim adjustment expense reserves, including certain components, for the Company’s major product lines by reporting segment at December 31, 2016. At December 31, 2016 (in millions) Net Undiscounted Discount Subtotal: Reinsurance Claims and Claim Business Insurance General liability $ 7,034 $ (168 ) $ 6,866 $ 712 $ 7,578 Commercial property 866 — 866 194 1,060 Commercial multi-peril 3,414 — 3,414 81 3,495 Commercial automobile 2,270 — 2,270 256 2,526 Workers’ compensation (1) 15,439 (832 ) 14,607 729 15,336 Bond & Specialty Insurance General liability 2,042 — 2,042 82 2,124 Fidelity and surety 450 — 450 17 467 Personal Insurance Automobile 2,277 — 2,277 465 2,742 Homeowners (excluding Other) 742 — 742 2 744 International - Canada 776 — 776 20 796 Subtotal — claims and allocated claim adjustment expenses for the products presented in the development tables below 35,310 (1,000 ) 34,310 2,558 36,868 Other insurance contracts (2) 3,661 (3 ) 3,658 2,195 5,853 Unallocated loss adjustment expense reserves 1,936 — 1,936 40 1,976 Structured settlements (3) — — — 3,168 3,168 Other 44 — 44 20 64 Total property-casualty 40,951 (1,003 ) 39,948 7,981 47,929 Accident and health — — — 20 20 Total $ 40,951 $ (1,003 ) $ 39,948 $ 8,001 $ 47,949 (1) (2) (3) The claim development tables that follow present, by accident year, incurred and cumulative paid claims and allocated claim adjustment expense on a historical basis. This claim development information is presented on an undiscounted, net of reinsurance basis for ten years, or the number of years Business Insurance General Liability ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,136 $ 1,162 $ 1,087 $ 1,089 $ 968 $ 919 $ 888 $ 883 $ 865 $ 824 $ 78 23,840 2008 1,143 1,209 1,222 1,079 1,041 994 946 931 935 88 25,385 2009 1,060 1,071 1,028 960 869 837 809 796 95 25,457 2010 1,028 1,031 1,021 959 927 912 918 108 27,678 2011 1,004 1,074 1,065 998 972 935 146 27,210 2012 989 985 935 913 892 184 24,384 2013 965 975 958 940 256 21,836 2014 976 989 983 438 20,926 2015 998 956 592 18,771 2016 1,075 908 13,810 Total $ 9,254 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 32 $ 134 $ 316 $ 467 $ 549 $ 632 $ 682 $ 697 $ 713 $ 726 2008 35 154 359 497 615 694 734 759 799 2009 35 167 314 446 543 613 643 667 2010 35 139 324 487 629 702 756 Liability for Claims 2011 47 187 355 539 660 725 And Allocated Claim 2012 32 150 295 489 589 Adjustment Expenses, 2013 35 175 363 498 Net of Reinsurance 2014 37 163 321 2015 36 137 2007 - Before 2016 35 2016 2007 Total $ 5,253 $ 4,001 $ 3,033 Total net liability $ 7,034 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 3.9 % 13.3 % 19.1 % 17.6 % 12.4 % 8.4 % 5.0 % 2.5 % 3.1 % 1.6 % Commercial Property ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 1,054 $ 988 $ 924 $ 889 $ 895 $ 13 28,183 2013 789 755 737 731 10 22,141 2014 936 860 836 15 21,490 2015 786 750 28 19,859 2016 896 131 19,327 Total $ 4,108 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 453 $ 770 $ 845 $ 865 $ 872 Adjustment Expenses, 2013 389 610 683 703 Net of Reinsurance 2014 464 710 775 2015 376 615 2012 - Before 2016 441 2016 2012 Total $ 3,406 $ 702 $ 164 Total net liability $ 866 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 51.7 % 31.8 % 8.7 % 2.5 % 0.8 % Commercial Multi-Peril ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,490 $ 1,430 $ 1,364 $ 1,402 $ 1,398 $ 1,375 $ 1,373 $ 1,369 $ 1,376 $ 1,369 $ 51 96,767 2008 1,725 1,674 1,683 1,688 1,674 1,684 1,674 1,688 1,681 47 108,382 2009 1,484 1,506 1,501 1,498 1,511 1,514 1,514 1,509 42 103,198 2010 1,711 1,826 1,832 1,861 1,895 1,892 1,898 51 111,586 2011 2,235 2,244 2,269 2,286 2,296 2,287 66 125,358 2012 1,885 1,883 1,903 1,888 1,888 88 104,419 2013 1,615 1,623 1,620 1,609 122 82,936 2014 1,663 1,627 1,625 193 76,833 2015 1,568 1,625 354 68,278 2016 1,662 658 56,471 Total $ 17,153 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 498 $ 824 $ 982 $ 1,110 $ 1,208 $ 1,256 $ 1,278 $ 1,296 $ 1,307 $ 1,312 2008 712 1,103 1,264 1,396 1,490 1,551 1,581 1,602 1,617 2009 603 958 1,121 1,264 1,360 1,408 1,436 1,449 2010 709 1,180 1,395 1,579 1,698 1,763 1,798 Liability for Claims 2011 1,060 1,573 1,803 1,979 2,088 2,156 And Allocated Claim 2012 795 1,246 1,424 1,590 1,699 Adjustment Expenses, 2013 644 987 1,167 1,304 Net of Reinsurance 2014 628 956 1,154 2015 595 970 2007 - Before 2016 585 2016 2007 Total $ 14,044 $ 3,109 $ 305 Total net liability $ 3,414 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 39.5 % 22.9 % 10.8 % 8.8 % 6.0 % 3.3 % 1.8 % 1.1 % 0.9 % 0.4 % Commercial Automobile ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 1,294 $ 1,350 $ 1,327 $ 1,325 $ 1,337 $ 35 214,780 2013 1,235 1,236 1,240 1,245 67 197,041 2014 1,165 1,166 1,168 131 184,067 2015 1,198 1,215 246 179,963 2016 1,290 516 173,790 Total $ 6,255 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 467 $ 753 $ 960 $ 1,134 $ 1,235 Adjustment Expenses, 2013 435 675 884 1,039 Net of Reinsurance 2014 397 618 821 2015 409 658 2012 - Before 2016 416 2016 2012 Total $ 4,169 $ 2,086 $ 184 Total net liability $ 2,270 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 34.0 % 20.0 % 16.6 % 12.7 % 7.6 % Workers’ Compensation ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,554 $ 1,519 $ 1,484 $ 1,448 $ 1,390 $ 1,373 $ 1,358 $ 1,340 $ 1,328 $ 1,341 $ 217 103,064 2008 1,714 1,745 1,734 1,683 1,639 1,634 1,621 1,617 1,617 237 107,565 2009 1,799 1,778 1,746 1,753 1,753 1,766 1,775 1,750 272 104,229 2010 1,886 2,042 2,035 2,056 2,049 2,052 2,055 354 116,837 2011 2,284 2,303 2,347 2,350 2,379 2,385 430 135,061 2012 2,447 2,456 2,457 2,456 2,445 519 133,417 2013 2,553 2,545 2,540 2,506 651 128,111 2014 2,554 2,553 2,547 839 123,110 2015 2,644 2,585 1,142 120,681 2016 2,768 1,651 108,357 Total $ 21,999 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 216 $ 450 $ 589 $ 683 $ 747 $ 802 $ 845 $ 880 $ 910 $ 936 2008 274 571 752 875 961 1,036 1,088 1,130 1,162 2009 288 623 828 961 1,065 1,137 1,193 1,235 2010 341 750 978 1,133 1,246 1,321 1,385 Liability for Claims 2011 420 911 1,185 1,365 1,487 1,583 And Allocated Claim 2012 443 940 1,217 1,394 1,536 Adjustment Expenses, 2013 458 954 1,237 1,413 Net of Reinsurance 2014 455 944 1,224 2015 430 893 2007 - Before 2016 421 2016 2007 Total $ 11,788 $ 10,211 $ 5,228 Total net liability $ 15,439 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 17.0 % 19.2 % 11.2 % 7.4 % 5.4 % 4.1 % 3.2 % 2.5 % 2.1 % 1.9 % Bond & Specialty Insurance General Liability ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 584 $ 571 $ 638 $ 582 $ 551 $ 511 $ 479 $ 467 $ 462 $ 454 $ 4 11,018 2008 579 769 743 697 716 712 672 643 631 24 6,463 2009 592 624 665 686 680 660 655 641 24 6,287 2010 571 612 679 679 661 668 653 18 5,655 2011 565 596 639 632 601 545 34 5,191 2012 538 591 614 605 601 137 4,824 2013 510 565 606 630 204 4,371 2014 549 571 563 232 4,182 2015 528 524 272 3,814 2016 512 405 2,676 Total $ 5,754 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 35 $ 134 $ 229 $ 303 $ 357 $ 373 $ 393 $ 400 $ 410 $ 415 2008 47 157 281 387 471 529 562 579 590 2009 36 167 310 390 460 497 563 592 2010 33 152 291 396 482 565 597 Liability for Claims 2011 33 143 249 324 414 447 And Allocated Claim 2012 38 160 255 342 383 Adjustment Expenses, 2013 34 154 252 352 Net of Reinsurance 2014 38 150 239 2015 38 141 2007 - Before 2016 30 2016 2007 Total $ 3,786 $ 1,968 $ 74 Total net liability $ 2,042 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 6.3 % 19.7 % 18.8 % 15.1 % 12.1 % 7.5 % 6.2 % 3.0 % 1.9 % 1.1 % Fidelity and Surety ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 255 $ 262 $ 249 $ 175 $ 140 $ 9 1,148 2013 240 246 199 146 6 1,006 2014 223 212 165 32 992 2015 217 191 79 768 2016 226 128 595 Total $ 868 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 42 $ 108 $ 124 $ 110 $ 111 Adjustment Expenses, 2013 37 113 128 131 Net of Reinsurance 2014 58 96 111 2015 32 75 2012 - Before 2016 54 2016 2012 Total $ 482 $ 386 $ 64 Total net liability $ 450 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 26.1 % 36.2 % 10.1 % (3.6 )% (1) 0.8 % (1) Personal Insurance Automobile ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 2,417 $ 2,454 $ 2,448 $ 2,432 $ 2,428 $ 15 793,669 2013 2,108 2,095 2,049 2,044 36 694,650 2014 2,014 1,994 1,981 75 669,990 2015 2,186 2,244 224 755,762 2016 2,779 646 839,962 Total $ 11,476 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 1,503 $ 1,983 $ 2,189 $ 2,311 $ 2,376 Adjustment Expenses, 2013 1,251 1,628 1,814 1,935 Net of Reinsurance 2014 1,193 1,564 1,763 2015 1,319 1,768 2012 - Before 2016 1,610 2016 2012 Total $ 9,452 $ 2,024 $ 253 Total net liability $ 2,277 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 60.0 % 19.2 % 9.2 % 5.5 % 2.7 % Homeowners (excluding Other) ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 2,136 $ 2,056 $ 2,029 $ 2,018 $ 2,019 $ 1 259,006 2013 1,488 1,397 1,365 1,375 4 149,373 2014 1,515 1,450 1,453 9 151,517 2015 1,438 1,454 28 144,367 2016 1,556 307 129,630 Total $ 7,857 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 1,508 $ 1,901 $ 1,964 $ 1,993 $ 2,008 Adjustment Expenses, 2013 994 1,269 1,317 1,344 Net of Reinsurance 2014 1,053 1,338 1,402 2015 994 1,333 2012 - Before 2016 1,049 2016 2012 Total $ 7,136 $ 721 $ 21 Total net liability $ 742 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 71.1 % 20.6 % 3.7 % 1.7 % 0.7 % International - Canada ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 372 $ 365 $ 361 $ 359 $ 369 $ 371 $ 377 $ 368 $ 364 $ 362 $ 2 51,611 2008 400 404 393 394 399 405 399 395 396 1 56,506 2009 460 448 457 463 471 463 455 456 8 57,934 2010 469 471 481 495 484 476 471 14 57,976 2011 443 422 430 426 418 412 18 57,704 2012 419 398 400 384 383 37 53,046 2013 467 461 453 441 39 56,071 2014 413 428 429 50 53,734 2015 348 347 58 46,093 2016 349 34 44,337 Total $ 4,046 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 153 $ 221 $ 250 $ 273 $ 299 $ 320 $ 337 $ 345 $ 350 $ 354 2008 171 262 294 317 339 360 374 381 385 2009 192 287 327 355 384 409 425 436 2010 185 282 318 356 385 415 432 Liability for Claims 2011 170 240 270 303 337 358 And Allocated Claim 2012 160 223 252 278 305 Adjustment Expenses, 2013 187 262 293 324 Net of Reinsurance 2014 183 256 291 2015 156 218 2007 - Before 2016 203 2016 2007 Total $ 3,306 $ 740 $ 36 Total net liability $ 776 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 43.8 % 18.7 % 7.8 % 6.9 % 6.8 % 5.6 % 3.8 % 2.1 % 1.2 % 1.1 % The incurred and paid amounts have been translated from the local currency to U.S. dollars using the December 31, 2016 spot rate for all years presented in the table above in order to isolate changes in foreign exchange rates from loss development. Methodology for Estimating Incurred But Not Reported (IBNR) Reserves Claims and claim adjustment expense reserves represent management’s estimate of the ultimate liability for unpaid losses and loss adjustment expenses for claims that have been reported and claims that have been incurred but not yet reported as of the balance sheet date. Claims and claim adjustment expense reserves do not represent an exact calculation of the liability, but instead represent management estimates, primarily utilizing actuarial expertise and projection methods that develop estimates for the ultimate cost of claims and claim adjustment expenses. Because the establishment of claims and claims adjustment expense reserves is an inherently uncertain process involving estimates and judgment, currently estimated claims and claim adjustment expense reserves may change. The Company reflects changes to the reserves in the results of operations in the period the estimates are changed. Cumulative amounts paid and case reserves held as of the balance sheet date are subtracted from the estimate of the ultimate cost of claims and claim adjustment expenses to derive incurred but not reported (IBNR) reserves. Accordingly, IBNR reserves include the cost of unreported claims, development on known claims and re-opened claims. This approach to estimating IBNR reserves has been in place for many years, with no material changes in methodology in the past year. Detailed claim data is typically insufficient to produce a reliable indication of the initial estimate for ultimate claims and claim adjustment expenses for an accident year. As a result, the initial estimate for an accident year is generally based on an exposure-based method using either the loss ratio projection or the expected loss method. The loss ratio projection method, which is typically used for guaranteed cost business, develops an initial estimate of ultimate claims and claim adjustment expenses for an accident year by multiplying earned premium for the accident year by a projected loss ratio. The projected loss ratio is determined by analyzing prior period experience, and adjusting for loss cost trends, rate level differences, mix of business changes and other known or observed factors influencing the accident year relative to prior accident years. The expected loss method, which is typically used for loss sensitive business, develops an initial estimate of ultimate claims and claim adjustment expenses for an accident year by analyzing exposures by account. For prior accident years, the following estimation and analysis methods are principally used by the Company’s actuaries to estimate the ultimate cost of claims and claim adjustment expenses. These estimation and analysis methods are typically referred to as conventional actuarial methods. · · · · While these are the principal methods utilized, the Company’s actuaries have available to them the full range of actuarial methods developed by the casualty actuarial profession. The Company’s actuaries are also continually monitoring developments within the profession for advances in existing techniques or the creation of new techniques that might improve current and future estimates. Most actuarial methods assume that past patterns demonstrated in the data will repeat themselves in the future. For certain reserve components where this assumption may not hold, such as asbestos and environmental reserves, conventional actuarial methods are not utilized by the Company. Methodology for Determining Cumulative Number of Reported Claims A claim file is created when the Company is notified of an actual demand for payment, notified of an event that may lead to a demand for payment or when it is determined that a demand for payment could possibly lead to a future demand for payment on another coverage on the same policy or on another policy. Claim files are generally created for a policy at the claimant by coverage level, depending on the particular facts and circumstances of the underlying event. For Business Insurance and for Personal Insurance, claim file information is summarized such that the Company generally recognizes one count for each policy claim event by internal regulatory line of business, regardless of the number of claimants or coverages involved. The claims counts are then accumulated and reported by product line. While the methodology is generally consistent within each segment for the product lines displayed, there are some minor differences between and within segments. For Bond & Specialty Insurance, the Company recognizes one count per coverage per policy claim event. For purposes of the claims development tables above, claims reported for direct business are counted even if they eventually close with no loss payment, except in the case of (i) deductible business, where the claim is not counted until the case incurred claim estimate is above the deductible, and (ii) International-Canada reported claim counts where claims closed with no loss payment are not counted. Note that claims with zero claim dollars may still generate some level of claim adjustment expenses. Claim counts for assumed business are included only to the extent such counts are available. The Company generally does not receive claim count information for which the underlying claim activity is handled by others, including pools and associations. The Company does not generate claim counts for ceded business. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables above. The Company cautions against using the summarized claim count information provided in this disclosure in attempting to project ultimate loss payouts by product line. The Company generally finds claim count data to be useful only on a more granular basis than the aggregated basis disclosed in the claim development tables above, as the risks, average values and other dynamics of the claim process can vary materially by the cause of loss and coverage within product line. For example, in Personal Automobile, the introduction of a new roadside assistance coverage feature several years ago resulted in a significant increase in claim counts with a low average claim cost. For this reason the Company varies its approach to, and in many cases the level of aggregation for, counting claims for internal analysis purposes depending on the particular granular analysis performed. Asbestos and Environmental Reserves At December 31, 2016 and 2015, the Company’s claims and claim adjustment expense reserves included $1.71 billion and $2.17 billion, respectively, for asbestos and environmental-related claims, net of reinsurance. It is difficult to estimate the reserves for asbestos and environmental-related claims due to the vagaries of court coverage decisions, plaintiffs’ expanded theories of liability, the risks inherent in complex litigation and other uncertainties, including, without limitation, those which are set forth below. Asbestos Reserves In the third quarter of 2016, the Company completed its annual in-depth asbestos claim review, including a review of active policyholders and litigation cases for potential product and “non-product” liability, and noted the continuation of the following trends: · · · In the Home Office and Field Office category, which accounts for the vast majority of policyholders with active asbestos-related claims, the number of policyholders tendering asbestos claims for the first time, the number of policyholders with open asbestos claims and both gross and net asbestos-related payments declined slightly when compared to 2015. Payments on behalf of policyholders in this category continue to be influenced by the high level of litigation activity in a limited number of jurisdictions where individuals alleging serious asbestos-related injury, primarily mesothelioma, continue to target defendants who were not traditionally primary targets of asbestos litigation. The Company’s quarterly asbestos reserve reviews include an analysis of exposure and claim payment patterns by policyholder category, as well as recent settlements, policyholder bankruptcies, judicial rulings and legislative actions. The Company also analyzes developing payment patterns among policyholders in the Home Office and Field Office, and Assumed Reinsurance and Other categories as well as projected reinsurance billings and recoveries. In addition, the Company reviews its historical gross and net loss and expense paid experience, year-by-year, to assess any emerging trends, fluctuations, or characteristics suggested by the aggregate paid activity. Conventional actuarial methods are not utilized to establish asbestos reserves nor have the Company’s evaluations resulted in any way of determining a meaningful average asbestos defense or indemnity payment. The completion of these reviews and analyses in 2016, 2015 and 2014 resulted in $225 million, $224 million and $250 million increases, respectively, in the Company’s net asbestos reserves. In each year, the reserve increases were primarily driven by increases in the Company’s estimate of projected settlement and defense costs related to a broad number of policyholders in the Home Office category due to a higher than previously anticipated level of litigation activity surrounding mesothelioma claims. This increase in the estimate of projected settlement and defense costs resulted from payment trends that continue to be higher than previously anticipated due to the impact of the current litigation environment discussed above. Over the past decade, the property and casualty insurance industry, including the Company, has experienced net unfavorable prior year reserve development with regard to asbestos reserves, but the Company believes that over that period there has been a reduction in the volatility associated with the Company’s overall asbestos exposure as the overall asbestos environment has evolved from one dominated by exposure to significant litigation risks, particularly coverage disputes relating to policyholders in bankruptcy who were asserting that their claims were not subject to the aggregate limits contained in their policies, to an environment primarily driven by a frequency of litigation related to individuals with mesothelioma. The Company’s overall view of the current underlying asbestos environment is essentially unchanged from recent periods and there remains a high degree of uncertainty with respect to future exposure to asbestos claims. Net asbestos paid loss and loss expenses in 2016, 2015 and 2014 were $708 million, $770 million and $242 million, respectively. Net payments in 2016 included the payment of the $518 million settlement amounts related to PPG Industries, Inc. Net payments in 2015 included the payment of the $502 million settlement amounts related to the Settlement of Asbestos Direct Action Litigation as described in more detail in note 16. Approximately 69%, 69% and 8% of total net paid losses in 2016, 2015 and 2014, respectively, related to policyholders with whom the Company had entered into settlement agreements limiting the Company’s liability. Environmental Reserves The Company continues to receive notices from policyholders tendering claims for the first time, frequently under policies issued prior to the mid-1980s. These policyholders continue to present smaller exposures, have fewer sites and are lower tier defendants. Further, in many instances, clean-up costs have been reduced because regulatory agencies are willing to accept risk-based site analyses and more efficient clean-up technologies. Asbestos and Environmental Reserves Because of the uncertainties set forth above, additional liabilities may arise for amounts in excess of the Company’s current reserves. In addition, the Company’s estimate of 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 operating results in future periods. Catastrophe Exposure The Company has geographic exposure to catastrophe losses, which can be caused by a variety of events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also result from terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical, radiological, cyber-attacks, explosions and infrastructure failures. The incidence and severity of catastrophes are inherently unpredictable. The extent of losses from a catastrophe is a function of both the total amount of insured exposure in the area affected by the event and the severity of the event. Most catastrophes are restricted to small geographic areas; however, hurricanes and earthquakes may produce significant damage in larger areas, especially those that are heavily populated. The Company generally seeks to mitigate its exposure to catastrophes through individual risk selection and the purchase of catastrophe reinsurance. There are also risks which impact the estimation of ultimate costs for catastrophes. For example, the estimation of reserves related to hurricanes can be affected by the inability of the Company and its insureds to access portions of the impacted areas, the complexity of factors contributing to the losses, the legal and regulatory uncertainties and the nature of the information available to establish the reserves. Complex factors include, but are not limited to: determining whether damage was caused by flooding versus wind; evaluating general liability and pollution exposures; estimating additional living expenses; the impact of demand surge; the potential impact of changing climate conditions, including higher frequency and severity of weather-related events; infrastructure disruption; fraud; the effect of mold damage and business income interruption costs; and reinsurance collectibility. The timing of a catastrophe’s occurrence, such as at or near the end of a reporting period, can also affect the information available to the Company in estimating reserves for that reporting period. The estimates related to catastrophes are adjusted as actual claims emerge. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt disclosure | |
Debt disclosure [Text Block] | 8. DEBT Debt outstanding was as follows: (at December 31, in millions) 2016 2015 Short-term: Commercial paper $ 100 $ 100 5.75% Senior notes due December 15, 2017 450 — 6.25% Senior notes due June 20, 2016 — 400 Total short-term debt 550 500 Long-term: 5.75% Senior notes due December 15, 2017 — 450 5.80% Senior notes due May 15, 2018 500 500 5.90% Senior notes due June 2, 2019 500 500 3.90% Senior notes due November 1, 2020 500 500 7.75% Senior notes due April 15, 2026 200 200 7.625% Junior subordinated debentures due December 15, 2027 125 125 6.375% Senior notes due March 15, 2033 500 500 6.75% Senior notes due June 20, 2036 400 400 6.25% Senior notes due June 15, 2037 800 800 5.35% Senior notes due November 1, 2040 750 750 4.60% Senior notes due August 1, 2043 500 500 4.30% Senior notes due August 25, 2045 400 400 8.50% Junior subordinated debentures due December 15, 2045 56 56 3.75% Senior notes dues May 15, 2046 500 — 8.312% Junior subordinated debentures due July 1, 2046 73 73 6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 107 107 Total long-term debt 5,911 5,861 Total debt principal 6,461 6,361 Unamortized fair value adjustment 47 49 Unamortized debt issuance costs (71 ) (66 ) Total debt $ 6,437 $ 6,344 2016 Debt Issuance 2016 Debt Repayment. 2015 Debt Issuance. 2015 Debt Repayment Description of Debt Commercial Paper Senior Notes Junior Subordinated Debentures The Company has the right, on one or more occasions, to defer the payment of interest on the debentures. The Company will not be required to settle deferred interest until it has deferred interest for five consecutive years or, if earlier, made a payment of current interest during a deferral period. The Company may defer interest for up to ten consecutive years without giving rise to an event of default. Deferred interest will accumulate additional interest at an annual rate equal to the annual interest rate then applicable to the debentures. The debentures have a final maturity date of March 15, 2067 and a scheduled maturity date of March 15, 2037. The Company can redeem the debentures at its option any time (as described above) using any source of funds, including cash. If the Company chooses not to redeem the debentures, then during the 180-day period ending not more than 15 and not less than ten business days prior to the scheduled maturity date, the Company will be required to use commercially reasonable efforts to sell enough qualifying capital securities to permit repayment of the debentures at the scheduled maturity date. If any debentures remain outstanding after the scheduled maturity date, unless and until the Company redeems the debentures (as described above) using any source of funds, including cash, the Company shall be required to use its commercially reasonable efforts on a quarterly basis to raise sufficient proceeds from the sale of qualifying capital securities to permit the repayment in full of the debentures. If there are remaining debentures at the final maturity date, the Company is required to redeem the debentures using any source of funds. Qualifying capital securities are securities (other than common stock, qualifying warrants, mandatorily convertible preferred stock, debt exchangeable for common equity, and debt exchangeable for preferred equity) which generally are treated by the ratings agencies as having similar equity content to the debentures. The Company’s three other junior subordinated debenture instruments are all similar in nature to each other. Three separate business trusts issued preferred securities to investors and used the proceeds to purchase the Company’s subordinated debentures. Interest on each of the instruments is paid semi-annually. The Company’s consolidated balance sheet includes the debt instruments acquired in a business acquisition, which were recorded at fair value as of the acquisition date. The resulting fair value adjustment is being amortized over the remaining life of the respective debt instruments using the effective-interest method. The amortization of the fair value adjustment reduced interest expense by $2 million and $1 million for the years ended December 31, 2016 and 2015, respectively. The following table presents merger-related unamortized fair value adjustments and the related effective interest rate: Unamortized Fair Value Effective (in millions) Issue Rate Maturity Date 2016 2015 to Maturity Subordinated debentures 7.625 % Dec. 2027 $ 14 $ 15 6.147 % 8.500 % Dec. 2045 15 15 6.362 % 8.312 % Jul. 2046 18 19 6.362 % Total $ 47 $ 49 The Travelers Companies, Inc. fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and Travelers Insurance Group Holdings Inc. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033. Maturities Credit Agreement The Company is party to a five-year, $1.0 billion revolving credit agreement Shelf Registration In June 2016, the Company filed with the Securities and Exchange Commission a universal shelf registration statement that expires on June 17, 2019 for the potential offering and sale of securities to replace the Company’s previous universal registration statement that had expired three years after its effective date. The Company may offer these securities from time to time at prices and on other terms to be determined at the time of offering. |
Shareholders' Equity and Divide
Shareholders' Equity and Dividend Availability | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity and Dividend Availability disclosure | |
Shareholders' Equity and Dividend Availability disclosure [Text Block] | 9. SHAREHOLDERS’ EQUITY AND DIVIDEND AVAILABILITY Authorized Shares The number of authorized shares of the Company is 1.755 billion, consisting of five million of preferred stock, 1.745 billion shares of voting common stock and five million undesignated shares. The Company’s Articles of Incorporation authorize the Board of Directors to establish, from the undesignated shares, one or more classes and series of shares, and to further designate the type of shares and terms thereof. Preferred Stock The Company’s Articles of Incorporation provide authority to issue up to five million shares of preferred stock. Common Stock The Company is governed by the Minnesota Business Corporation Act. All authorized shares of voting common stock have no par value. Shares of common stock reacquired are considered authorized and unissued shares. Treasury Stock The Company’s Board of Directors has approved common share repurchase authorizations (in millions, except per share Quarterly Period Ending Number of Cost of shares Average price paid Remaining capacity March 31, 2016 5.1 $ 550 $ 108.46 $ 2,784 June 30, 2016 4.9 550 112.12 2,234 September 30, 2016 4.7 550 117.25 1,684 December 31, 2016 6.6 750 113.54 934 Total 21.3 $ 2,400 112.82 934 The Company’s Amended and Restated 2004 Stock Incentive Plan and the Amended and Restated 2014 Stock Incentive Plan provide settlement alternatives to employees in which the Company retains shares to cover payroll withholding taxes in connection with the vesting of restricted stock unit awards and performance share awards, and to cover the price of certain stock options that were exercised. During the years ended December 31, 2016 and 2015, the Company acquired $72 million and $74 million, respectively, of its common stock under these plans. Common shares acquired are reported as treasury stock in the consolidated balance sheet. Dividend Availability The Company’s U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are subject to various regulatory restrictions that limit the maximum amount of dividends available to be paid by each insurance subsidiary to its respective parent company without prior approval of insurance regulatory authorities. A maximum of $3.69 billion is available by the end of 2017 for such dividends to the holding company, TRV, without prior approval of the Connecticut Insurance Department. The Company may choose to accelerate the timing within 2017 and/or increase the amount of dividends from its insurance subsidiaries in 2017, which could result in certain dividends being subject to approval by the Connecticut Insurance Department. In addition to the regulatory restrictions on the availability of dividends that can be paid by the Company’s U.S. insurance subsidiaries, the maximum amount of dividends that may be paid to the Company’s shareholders is limited, to a lesser degree, by certain covenants contained in its line of credit agreement with a syndicate of financial institutions that require the Company to maintain a minimum consolidated net worth as described in note 8. TRV is not dependent on dividends or other forms of repatriation from its foreign operations to support its liquidity needs. The undistributed earnings of the Company’s foreign operations are not material and are intended to be permanently reinvested in those operations. TRV and its two non-insurance holding company subsidiaries received dividends of $3.05 billion, $3.75 billion and $4.10 billion from their U.S. insurance subsidiaries in 2016, 2015 and 2014, respectively. For the years ended December 31, 2016, 2015 and 2014, TRV declared cash dividends per common share of $2.62, $2.38 and $2.15, respectively, and paid cash dividends of $757 million, $739 million and $729 million, respectively. Statutory Net Income and Statutory Capital and Surplus Statutory net income of the Company’s domestic and international insurance subsidiaries was $3.20 billion, $3.80 billion and $3.97 billion for the years ended December 31, 2016, 2015 and 2014, respectively. Statutory capital and surplus of the Company’s domestic and international insurance subsidiaries was $20.76 billion and $20.57 billion at December 31, 2016 and 2015, respectively. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure | |
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure [Text Block] | 10. 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 years ended December 31, 2016, 2015 and 2014. Changes in Net Unrealized Gains on Net Benefit Plan (in millions) Having No Credit Having Credit Losses Assets and Net Unrealized Total Accumulated Balance, December 31, 2013 $ 1,125 $ 197 $ (431 ) $ (81 ) $ 810 Other comprehensive income (loss) (OCI) before reclassifications 667 (2 ) (363 ) (250 ) 52 Amounts reclassified from AOCI (24 ) 3 39 — 18 Net OCI, current period 643 1 (324 ) (250 ) 70 Balance, December 31, 2014 1,768 198 (755 ) (331 ) 880 OCI before reclassifications (641 ) (11 ) (18 ) (419 ) (1,089 ) Amounts reclassified from AOCI (27 ) 2 60 17 52 Net OCI, current period (668 ) (9 ) 42 (402 ) (1,037 ) Balance, December 31, 2015 1,100 189 (713 ) (733 ) (157 ) OCI before reclassifications (530 ) 4 (30 ) (49 ) (605 ) Amounts reclassified from AOCI (42 ) 9 40 — 7 Net OCI, current period (572 ) 13 10 (49 ) (598 ) Balance, December 31, 2016 $ 528 $ 202 $ (703 ) $ (782 ) $ (755 ) The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit). (for the year ended December 31, in millions) 2016 2015 2014 Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income $ (883 ) $ (1,020 ) $ 976 Income tax expense (benefit) (311 ) (352 ) 333 Net of taxes (572 ) (668 ) 643 Having credit losses recognized in the consolidated statement of income 21 (14 ) 2 Income tax expense (benefit) 8 (5 ) 1 Net of taxes 13 (9 ) 1 Net changes in benefit plan assets and obligations 16 66 (494 ) Income tax expense (benefit) 6 24 (170 ) Net of taxes 10 42 (324 ) Net changes in unrealized foreign currency translation (41 ) (461 ) (289 ) Income tax expense (benefit) 8 (59 ) (39 ) Net of taxes (49 ) (402 ) (250 ) Total other comprehensive income (loss) (887 ) (1,429 ) 195 Total income tax expense (benefit) (289 ) (392 ) 125 Total other comprehensive income (loss), net of taxes $ (598 ) $ (1,037 ) $ 70 The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income. (for the year ended December 31, in millions) 2016 2015 2014 Reclassification adjustments related to unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (64 ) $ (42 ) $ (36 ) Income tax expense (2) (22 ) (15 ) (12 ) Net of taxes (42 ) (27 ) (24 ) Having credit losses recognized in the consolidated statement of income (1) 13 2 4 Income tax benefit (2) 4 — 1 Net of taxes 9 2 3 Reclassification adjustment related to benefit plan assets and obligations (3) 62 93 60 Income tax benefit (2) 22 33 21 Net of taxes 40 60 39 Reclassification adjustment related to foreign currency translation (1) — 26 — Income tax benefit (2) — 9 — Net of taxes — 17 — Total reclassifications 11 79 28 Total income tax benefit 4 27 10 Total reclassifications, net of taxes $ 7 $ 52 $ 18 (1) (2) (3) |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings per Share disclosure | |
Earnings per Share disclosure [Text Block] | 11. EARNINGS PER SHARE Basic earnings per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities. The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations: (for the year ended December 31, in millions, except per share amounts) 2016 2015 2014 Basic and Diluted Net income, as reported $ 3,014 $ 3,439 $ 3,692 Participating share-based awards — allocated income (22 ) (25 ) (27 ) Net income available to common shareholders — basic and diluted $ 2,992 $ 3,414 $ 3,665 Common Shares Basic Weighted average shares outstanding 288.1 310.6 338.8 Diluted Weighted average shares outstanding 288.1 310.6 338.8 Weighted average effects of dilutive securities: Stock options and performance shares 2.9 3.3 3.7 Total 291.0 313.9 342.5 Net income Per Common Share Basic $ 10.39 $ 10.99 $ 10.82 Diluted $ 10.28 $ 10.88 $ 10.70 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes disclosure | |
Income Taxes disclosure [Text Block] | 12. INCOME TAXES The following table presents the components of income tax expense included in the amounts reported in the Company’s consolidated financial statements: (for the year ended December 31, in millions) 2016 2015 2014 Composition of income tax expense included in the consolidated statement of income Current expense: Federal $ 899 $ 1,144 $ 1,216 Foreign 21 29 28 State 8 9 10 Total current tax expense 928 1,182 1,254 Deferred expense: Federal 110 117 121 Foreign 1 2 22 Total deferred tax expense 111 119 143 Total income tax expense included in the consolidated statement of income 1,039 1,301 1,397 Composition of income tax expense (benefit) included in shareholders’ equity Expense (benefit) relating to share-based compensation, the changes in unrealized gain on investments, unrealized loss on foreign exchange and other items in other comprehensive income (289 ) (448 ) 68 Total income tax expense included in the consolidated financial statements $ 750 $ 853 $ 1,465 The following is a reconciliation of income tax expense at the U.S. federal statutory income tax rate to the income tax expense reported in the Company’s consolidated statement of income: (for the year ended December 31, in millions) 2016 2015 2014 Income before income taxes U.S. $ 3,946 $ 4,621 $ 4,899 Foreign 107 119 190 Total income before income taxes 4,053 4,740 5,089 Effective tax rate Statutory tax rate 35 % 35 % 35 % Expected federal income tax expense 1,419 1,659 1,781 Tax effect of: Nontaxable investment income (323 ) (345 ) (379 ) Other, net (57 ) (13 ) (5 ) Total income tax expense $ 1,039 $ 1,301 $ 1,397 Effective tax rate 26 % 27 % 27 % The Company paid income taxes of $892 million, $1.21 billion and $1.15 billion during the years ended December 31, 2016, 2015 and 2014, respectively. The current income tax payable was $72 million and $50 million at December 31, 2016 and 2015, respectively, and was included in other liabilities in the consolidated balance sheet. The net deferred tax asset comprises the tax effects of temporary differences related to the following assets and liabilities: (at December 31, in millions) 2016 2015 Deferred tax assets Claims and claim adjustment expense reserves $ 664 $ 691 Unearned premium reserves 760 731 Compensation-related liabilities 268 326 Other 272 320 Total gross deferred tax assets 1,964 2,068 Less: valuation allowance 3 — Adjusted gross deferred tax assets 1,961 2,068 Deferred tax liabilities Deferred acquisition costs 604 580 Investments 592 867 Internally developed software 157 134 Other 143 191 Total gross deferred tax liabilities 1,496 1,772 Net deferred tax asset $ 465 $ 296 If the Company determines that any of its deferred tax assets will not result in future tax benefits, a valuation allowance must be established for the portion of these assets that are not expected to be realized. The valuation allowance increased by $3 million in 2016 relating to the Company’s consolidated Brazilian subsidiary. Based upon a review of the Company’s anticipated future taxable income, and also including all other available evidence, both positive and negative, the Company’s management concluded that it is more likely than not that the net deferred tax assets will be realized. For tax return purposes, as of December 31, 2016, the Company had net operating loss (NOL) carryforwards in Brazil and the United Kingdom. The amount and timing of realizing the benefits of NOL carryforwards depend on future taxable income and limitations imposed by tax laws. Only the benefits of the United Kingdom NOL carryforwards have been recognized in the consolidated financial statements and are included in net deferred tax assets. The NOL amounts by jurisdiction and year of expiration are as follows: (in millions) Amount Year of expiration Brazil $ 8 None United Kingdom $ 106 None U.S. income taxes have not been recognized on $358 million of the Company’s foreign operations’ undistributed earnings as of December 31, 2016, as such earnings are intended to be permanently reinvested in those operations. Furthermore, any taxes paid to foreign governments on these earnings may be used as credits against the U.S. tax on any dividend distributions from such earnings. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2016 and 2015: (in millions) 2016 2015 Balance at January 1 $ 16 $ 23 Additions for tax positions of prior years 3 2 Reductions for tax positions of prior years (6 ) (9 ) Additions based on tax positions related to current year — — Balance at December 31 $ 13 $ 16 Included in the balances at December 31, 2016 and 2015 were $7 million and $4 million, respectively, of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. Also included in the balances at those dates were $6 million and $12 million, respectively, of tax positions for which the ultimate deductibility is certain, but for which there is uncertainty about the timing of deductibility. The timing of such deductibility would not affect the annual effective tax rate. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in income taxes. During the years ended December 31, 2016, 2015 and 2014, the Company recognized approximately $31 million, $(32) million and $31 million in interest, respectively. The Company had approximately $57 million and $26 million accrued for the payment of interest at December 31, 2016 and 2015, respectively. The IRS is conducting an examination of the Company’s U.S. income tax returns for 2013 and 2014. The Company does not expect any significant changes to its liability for unrecognized tax benefits during the next twelve months. |
Share-Based Incentive Compensat
Share-Based Incentive Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Incentive Compensation disclosure | |
Share-Based Incentive Compensation disclosure [Text Block] | 13. SHARE-BASED INCENTIVE COMPENSATION The Company has a share-based incentive compensation plan, The Travelers Companies, Inc. Amended and Restated 2014 Stock Incentive Plan (the 2014 Incentive Plan), the purposes of which are to align the interests of the Company’s non-employee directors, executive officers and other employees with those of the Company’s shareholders and to attract and retain personnel by providing incentives in the form of share-based awards. The 2014 Incentive Plan permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, deferred stock units, performance awards and other share-based or share-denominated awards with respect to the Company’s common stock. The Company has a policy of issuing new shares to settle the exercise of stock option awards and the vesting of other equity awards. In connection with the adoption of the 2014 Incentive Plan, The Travelers Companies, Inc. Amended and Restated 2004 Stock Incentive Plan, as amended (the 2004 Incentive Plan) was terminated, joining several other legacy share-based incentive compensation plans that had been terminated in prior years (together, the legacy plans). Outstanding grants were not affected by the termination of the legacy plans. The 2014 Incentive Plan is currently the only plan pursuant to which future stock-based awards may be granted. The number of shares of the Company’s common stock initially authorized for grant under the 2014 Incentive Plan was 10 million shares. In May 2016, the Company’s shareholders authorized an additional 4.4 million shares of the Company’s common stock for grant under the 2014 Incentive Plan. The following are not counted towards the combined 14.4 million shares available and will be available for future grants under the 2014 Incentive Plan: (i) shares of common stock subject to awards that expire unexercised, that are forfeited, terminated or canceled, that are settled in cash or other forms of property, or otherwise do not result in the issuance of shares of common stock, in whole or in part; (ii) shares that are used to pay the exercise price of stock options and shares used to pay withholding taxes on awards generally; and (iii) shares purchased by the Company on the open market using cash option exercise proceeds; provided, however, that the increase in the number of shares of common stock available for grant pursuant to such market purchases shall not be greater than the number that could be repurchased at fair market value on the date of exercise of the stock option giving rise to such option proceeds. In addition, the 14.4 million shares authorized by shareholders for issuance under the 2014 Incentive Plan will be increased by any shares subject to awards under the 2004 Incentive Plan that were outstanding as of May 27, 2014 and subsequently expire, are forfeited, cancelled, settled in cash or otherwise terminate without the issuance of shares. The Company also has a compensation program for non-employee directors (the Director Compensation Program). Under the Director Compensation Program, non-employee directors’ compensation consists of an annual retainer, a deferred stock award, committee chair fees and a lead director fee. Each non-employee director may choose to receive all or a portion of his or her annual retainer in the form of cash or deferred stock units which vest upon grant. The annual deferred stock awards vest in full one day prior to the date of the Company’s annual meeting of shareholders occurring in the year following the year of the grant date, subject to continued service. The deferred stock awards, including dividend equivalents, accumulate until distribution either in a lump sum six months after termination of service as a director or, if the director so elects, in annual installments beginning at least six months following termination of service as a director. The deferred stock units issued under the Director Compensation Program are awarded under the 2014 Incentive Plan. Stock Option Awards Stock option awards granted to eligible officers and key employees have a ten-year term. Prior to January 1, 2007, stock options were granted with an exercise price equal to the fair market value of the Company’s common stock on the day preceding the date of grant. Beginning January 1, 2007, all stock options are granted with an exercise price equal to the closing price of the Company’s common stock on the date of grant. The stock options granted generally vest upon meeting certain years of service criteria. Except as the Compensation Committee of the board of directors may allow in the future, stock options cannot be sold or transferred by the participant. Stock options outstanding under the 2014 Incentive Plan and the 2004 Incentive Plan generally vest three years after grant date (cliff vest). The fair value of each option award is estimated on the date of grant by application of a variation of the Black-Scholes option pricing model using the assumptions noted in the following table. The expected term of newly granted stock options is the time to vest plus half the remaining time to expiration. This considers the vesting restriction and represents an even pattern of exercise behavior over the remaining term. The expected volatility assumption is based on the historical volatility of the Company’s common stock for the same period as the estimated option term based on the mid-month of the option grant. The expected dividend is based upon the Company’s current quarter dividend annualized and assumed to be constant over the expected option term. The risk-free interest rate for each option is the interpolated market yield for the mid-month of the option grant on a U.S. Treasury bill with a term comparable to the expected option term of the granted stock option. The following table provides information about options granted: (for the year ended December 31,) 2016 2015 2014 Assumptions used in estimating fair value of options on grant date Expected term of stock options 5 6 years 6 years 6 years Expected volatility of Company’s stock 15.14% 16.80 % 19.29 % 27.2% – 27.5 % Weighted average volatility 16.79 % 19.29 % 27.5 % Expected annual dividend per share $2.44 – $2.68 $ 2.20 $2.00 – $2.20 Risk-free rate 1.36% 2.23 % 1.31 % 1.81% – 1.82 % Additional information Weighted average grant-date fair value of options granted (per share) $ 13.29 $ 15.78 $ 17.22 Total intrinsic value of options exercised during the year (in millions) $ 167 $ 120 $ 117 A summary of stock option activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2016 is as follows: Stock Options Number Weighted Weighted Aggregate Outstanding, beginning of year 9,864,255 $ 74.48 Original grants 2,847,398 106.21 Exercised (4,069,532 ) 69.13 Forfeited or expired (82,085 ) 97.44 Outstanding, end of year 8,560,036 $ 87.36 6.8 years $ 300 Vested at end of year (1) 5,588,061 $ 80.74 6.0 years $ 233 Exercisable at end of year 3,007,663 $ 65.18 4.2 years $ 172 (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. On February 9, 2017, the Company, under the 2014 Incentive Plan, granted 2,106,022 stock option awards with an exercise price of $118.78 per share. The fair value attributable to the stock option awards on the date of grant was $16.15 per share. Restricted Stock Units, Deferred Stock Units and Performance Share Award Programs The Company issues restricted stock unit awards to eligible officers and key employees under the Equity Awards program established pursuant to the 2014 Incentive Plan. A restricted stock unit represents the right to receive a share of common stock. These restricted stock unit awards are granted at market price, generally vest three years from the date of grant, do not have voting rights and the underlying shares of common stock are not issued until the vesting criteria is satisfied. In addition, the Company’s board of directors can be issued deferred stock units from (i) an annual award; (ii) deferred compensation (in lieu of cash retainer); and (iii) dividend equivalents earned on outstanding deferred compensation. The Company also has a Performance Share Awards Program established pursuant to the 2004 Incentive Plan and which continues pursuant to the 2014 Incentive Plan. Under the program, the Company may issue performance share awards to certain employees of the Company who hold positions of Vice President (or its equivalent) or above. The performance share awards provide the recipient the right to earn shares of the Company’s common stock based upon the Company’s attainment of certain performance goals and the recipient meeting certain years of service criteria. The performance goals for performance share awards are based on the Company’s adjusted return on equity over a three-year performance period. Vesting of performance shares is contingent upon the Company attaining the relevant performance period minimum threshold return on equity and the recipient meeting certain years of service criteria, generally three years for full vesting, subject to proration for certain termination conditions. If the performance period return on equity is below the minimum threshold, none of the performance shares will vest. If performance meets or exceeds the minimum performance threshold, a range of performance shares will vest (50% to 150% for awards granted in 2015, 2016 and 2017), depending on the actual return on equity attained. The fair value of restricted stock units, deferred stock units and performance shares is measured at the market price of the Company stock at date of grant. Under terms of the 2014 Incentive Plan, holders of deferred stock units and performance shares may receive dividend equivalents. The total fair value of shares that vested during the years ended December 31, 2016, 2015 and 2014 was $175 million, $179 million and $147 million, respectively. A summary of restricted stock units, deferred stock units and performance share activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2016 is as follows: Restricted and Deferred Stock Performance Shares Other Equity Instruments Number Weighted Number Weighted Average Nonvested, beginning of year 1,435,958 $ 88.35 1,101,989 $ 91.27 Granted 676,736 106.93 476,411 106.03 Vested (667,650 ) 86.85 (818,360 ) 84.43 Forfeited (68,552 ) 97.82 (63,495 ) 100.02 Performance-based adjustment — — 100,073 (3) 88.22 Nonvested, end of year 1,376,492 $ 97.75 796,618 $ 106.03 (1) (2) (3) In addition to the nonvested shares presented in the above table, there are related nonvested dividend equivalent shares. The number of nonvested dividend equivalent shares related to deferred stock units was 396 at the beginning of the year and 408 at the end of the year and the number of nonvested dividend equivalent shares related to performance shares was 40,663 at the beginning of the year and 28,480 at the end of the year. The dividend equivalent shares are subject to the same vesting terms as the deferred stock units and performance shares. On February 9, 2017, the Company, under the 2014 Incentive Plan, granted 960,515 common stock awards in the form of restricted stock units, deferred stock units and performance share awards to participating officers, non-employee directors and other key employees. The restricted stock units and deferred stock units totaled 567,006 shares while the performance share awards totaled 393,509 shares. The fair value per share attributable to the common stock awards on the date of grant was $118.78. Share-Based Compensation Cost Recognition The amount of compensation cost for awards subject to a service condition is based on the number of shares expected to be issued and is recognized over the time period for which service is to be provided (requisite service period). Awards granted to retiree-eligible employees or to employees who become retiree-eligible before an award’s vesting date are considered to have met the requisite service condition. The compensation cost for awards subject to a performance condition is based upon the probable outcome of the performance condition, which on the grant date reflects an estimate of attaining 100% of the performance shares granted. The compensation cost reflects an estimated annual forfeiture rate from 3.0% to 4.0% over the requisite service period of the awards. That estimate is revised if subsequent information indicates that the actual number of instruments expected to vest is likely to differ from previous estimates. Compensation costs for awards are recognized on a straight-line basis over the requisite service period. For awards that have graded vesting terms, the compensation cost is recognized on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in substance, multiple awards. The total compensation cost for all share-based incentive compensation awards recognized in earnings for the years ended December 31, 2016, 2015 and 2014 was $155 million, $141 million and $138 million, respectively. Included in these amounts are compensation cost adjustments of $11 million, $8 million and $14 million, for the years ended December 31, 2016, 2015 and 2014, respectively, that reflected the cost associated with the updated estimate of performance shares due to attaining certain performance levels from the date of the initial grant of the performance awards. The related tax benefits recognized in earnings were $52 million, $47 million and $47 million for the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016, there was $124 million of total unrecognized compensation cost related to all nonvested share-based incentive compensation awards. This includes stock options, restricted and deferred stock units and performance shares granted under the 2014 Incentive Plan and the 2004 Incentive Plan. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.7 years. Cash received from the exercise of employee stock options under share-based compensation plans totaled $332 million and $183 million in 2016 and 2015, respectively. The tax benefit for tax deductions from employee stock options exercised during 2016 and 2015 totaled $58 million and $41 million, respectively. |
Pension Plans, Retirement Benef
Pension Plans, Retirement Benefits and Savings Plans | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans, Retirement Benefits and Savings Plans disclosure | |
Pension Plans, Retirement Benefits and Savings Plans disclosure [Text Block] | 14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The Company sponsors a qualified non-contributory defined benefit pension plan (the qualified domestic pension plan), which covers substantially all U.S. domestic employees and provides benefits under a cash balance formula, except that employees satisfying certain age and service requirements remain covered by a prior final average pay formula. In addition, the Company sponsors a nonqualified defined benefit pension plan which covers certain highly-compensated employees, pension plans for employees of its foreign subsidiaries, and a postretirement health and life insurance benefit plan for employees satisfying certain age and service requirements and for certain retirees. Obligations and Funded Status The following tables summarize the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company’s benefit plans. The Company uses a December 31 measurement date for its pension and postretirement benefit plans. (at and for the year ended December 31, Qualified Domestic Nonqualified and Foreign Total in millions) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 3,250 $ 3,385 $ 228 $ 227 $ 3,478 $ 3,612 Benefits earned 111 124 7 7 118 131 Interest cost on benefit obligation 114 135 8 9 122 144 Actuarial loss (gain) 54 (203 ) 15 2 69 (201 ) Benefits paid (162 ) (191 ) (15 ) (8 ) (177 ) (199 ) Settlement — — (3 ) — (3 ) — Foreign currency exchange rate change — — (15 ) (9 ) (15 ) (9 ) Benefit obligation at end of year $ 3,367 $ 3,250 $ 225 $ 228 $ 3,592 $ 3,478 Change in plan assets: Fair value of plan assets at beginning of year $ 3,127 $ 3,235 $ 115 $ 122 $ 3,242 $ 3,357 Actual return on plan assets 222 (17 ) 11 3 233 (14 ) Company contributions 200 100 14 7 214 107 Benefits paid (162 ) (191 ) (15 ) (8 ) (177 ) (199 ) Settlement — — (3 ) — (3 ) — Foreign currency exchange rate change — — (16 ) (9 ) (16 ) (9 ) Fair value of plan assets at end of year 3,387 3,127 106 115 3,493 3,242 Funded status of plan at end of year $ 20 $ (123 ) $ (119 ) $ (113 ) $ (99 ) $ (236 ) Amounts recognized in the consolidated balance sheet consist of: Accrued over-funded benefit plan assets $ 20 $ — $ 5 $ 4 $ 25 $ 4 Accrued under-funded benefit plan liabilities — (123 ) (124 ) (117 ) (124 ) (240 ) Total $ 20 $ (123 ) $ (119 ) $ (113 ) $ (99 ) $ (236 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 1,072 $ 1,079 $ 55 $ 52 $ 1,127 $ 1,131 Prior service benefit (6 ) (8 ) — — (6 ) (8 ) Total $ 1,066 $ 1,071 $ 55 $ 52 $ 1,121 $ 1,123 Postretirement (at and for the year ended December 31, in millions) 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 233 $ 255 Benefits earned — — Interest cost on benefit obligation 8 10 Actuarial gain (17 ) (3 ) Benefits paid (11 ) (13 ) Plan amendments — (11 ) Foreign currency exchange rate change 1 (5 ) Benefit obligation at end of year $ 214 $ 233 Change in plan assets: Fair value of plan assets at beginning of year $ 15 $ 16 Actual return on plan assets — — Company contributions 10 12 Benefits paid (11 ) (13 ) Fair value of plan assets at end of year 14 15 Funded status of plan at end of year $ (200 ) $ (218 ) Amounts recognized in the consolidated balance sheet consist of: Accrued under-funded benefit plan liability $ (200 ) $ (218 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial (gain) loss $ (13 ) $ 4 Prior service benefit (31 ) (35 ) Total $ (44 ) $ (31 ) The total accumulated benefit obligation for the Company’s defined benefit pension plans was $3.48 billion and $3.37 billion at December 31, 2016 and 2015, respectively. The qualified domestic pension plan accounted for $3.26 billion and $3.15 billion of the total accumulated benefit obligation at December 31, 2016 and 2015, respectively, whereas the nonqualified and foreign plans accounted for $0.22 billion of the total accumulated benefit obligation at both December 31, 2016 and 2015. For pension plans with an accumulated benefit obligation in excess of plan assets, the aggregate projected benefit obligation was $0.2 billion and $3.47 billion at December 31, 2016 and 2015, respectively, and the aggregate accumulated benefit obligation was $0.2 billion and $3.36 billion at December 31, 2016 and 2015, respectively. The fair value of plan assets for the above plans was $0.1 billion and $3.23 billion at December 31, 2016 and 2015, respectively. The Company has discretion regarding whether to provide additional funding and when to provide such funding to its qualified domestic pension plan. In 2016, 2015 and 2014, there were no required contributions to the qualified domestic pension plan. In 2016, 2015 and 2014, the Company voluntarily made contributions totaling $200 million, $100 million and $200 million, respectively, to the qualified domestic pension plan. There is no required contribution to the qualified domestic pension plan during 2017, and the Company has not determined whether or not additional funding will be made during 2017. With respect to the Company’s foreign pension plans, there are no significant required contributions in 2017. The following table summarizes the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to the benefit plans. Pension Plans Postretirement Benefit (for the year ended December 31, in millions) 2016 2015 2014 2016 2015 2014 Net Periodic Benefit Cost: Service cost $ 118 $ 131 $ 110 $ — $ — $ — Interest cost on benefit obligation 122 144 150 8 10 10 Expected return on plan assets (230 ) (230 ) (218 ) — — — Curtailment — — (1 ) — — — Settlement 1 — 2 — — — Amortization of unrecognized: Prior service benefit (1 ) (1 ) — (3 ) (3 ) (2 ) Net actuarial loss (gain) 66 96 65 — 1 (3 ) Net periodic benefit cost $ 76 $ 140 $ 108 $ 5 $ 8 $ 5 Other Changes in Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service benefit $ — $ — $ (8 ) $ — $ (11 ) $ — Net actuarial loss (gain) 66 43 516 (17 ) (3 ) 50 Foreign currency exchange rate change (2 ) — — 1 — — Curtailment — — (2 ) — — — Settlement (1 ) — (2 ) — — — Amortization of prior service benefit 1 1 — 3 3 2 Amortization of net actuarial gain (loss) (66 ) (96 ) (65 ) — (1 ) 3 Total other changes recognized in other comprehensive income (2 ) (52 ) 439 (13 ) (12 ) 55 Total other changes recognized in net periodic benefit cost and other comprehensive income $ 74 $ 88 $ 547 $ (8 ) $ (4 ) $ 60 In 2016, the Company began using a full yield-curve approach in the estimation of the service and interest cost components of net periodic benefit costs for its qualified and nonqualified domestic pension plans and its domestic postretirement benefit plans. The full yield curve approach applies the specific spot rates along the yield curve that the Company used to determine its projected benefit obligation at the beginning of the year to the projected cash flows related to service and interest costs. Previously, the Company estimated these service and interest cost components by applying a single weighted-average discount rate derived from this yield curve. This change was made to provide a better estimate of the service and interest cost components of net periodic benefit costs, consistent with the methodology used to estimate the projected benefit obligation for each of the benefit plans. This change did not affect the measurement of the Company’s total benefit obligations as the change in the service cost and interest cost is completely offset in the actuarial (gain) loss reported for the period. The change reduced the service and interest cost components of net periodic benefit costs for 2016 by $6 million and $30 million, respectively, and resulted in an $0.08 increase in diluted net income per share for 2016. The weighted average discount rates that were used to measure service and interest costs during 2016 were 4.77% and 3.64%, respectively, for the domestic qualified pension plan, 4.53% and 3.47%, respectively, for the domestic nonqualified pension plan and 0.00% and 3.53%, respectively, for the domestic postretirement benefit plan. The discount rate associated with the service cost component of the domestic postretirement benefit plan is zero as it is a closed plan and all participants are fully vested. Under the Company’s prior estimation approach, the weighted average discount rate for both the service and interest cost components would have been 4.50% for the domestic qualified pension plan, 4.37% for the domestic nonqualified pension plan and 4.35% for the domestic postretirement benefit plan. The Company accounted for this change as a change in estimate, and accordingly, recognized the effect prospectively beginning in 2016. For the defined benefit pension plans, the estimated net actuarial loss that will be reclassified (amortized) from accumulated other comprehensive income into net income as part of net periodic benefit cost over the next fiscal year is $75 million and the estimated prior service benefit to be amortized over the next fiscal year is $1 million. For the postretirement benefit plans, the estimated net actuarial gain that will be reclassified (amortized) from accumulated other comprehensive income into net income as part of net periodic benefit cost over the next fiscal year is less than $1 million, and the estimated prior service benefit to be amortized over the next fiscal year is $3 million. Assumptions and Health Care Cost Trend Rate Sensitivity The following table summarizes assumptions used with regard to the Company’s qualified and nonqualified domestic pension plans and the domestic postretirement benefit plans. (at and for the year ended December 31,) 2016 2015 Assumptions used to determine benefit obligations Discount rate: Qualified domestic pension plan 4.23 % 4.50 % Nonqualified domestic pension plan 4.15 % 4.37 % Domestic postretirement benefit plan 4.10 % 4.35 % Future compensation increase rate 4.00 % 4.00 % Assumptions used to determine net periodic benefit cost Discount rate: Qualified domestic pension plan: Service cost 4.77 % 4.10 % Interest cost 3.64 % 4.10 % Nonqualified domestic pension plan: Service cost 4.53 % 4.10 % Interest cost 3.47 % 4.10 % Domestic postretirement benefit plan: Interest cost 3.53 % 4.10 % Expected long-term rate of return on assets: Pension plan 7.00 % 7.25 % Postretirement benefit plan 4.00 % 4.00 % Assumed health care cost trend rates Following year: Medical (before age 65) 6.50 % 6.75 % Medical (age 65 and older) 7.25 % 7.50 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate: Medical (before age 65) 2022 2022 Medical (age 65 and older) 2025 2025 The discount rate assumption used to determine the benefit obligation benefit obligation benefit obligations The discount rate assumption used to determine the net periodic benefit cost benefit obligation In choosing the expected long-term rate of return on plan assets, the Company selected the rate that was set as the return objective by the Company’s Benefit Plans Investment Committee, which had considered the historical returns of equity and fixed maturity markets in conjunction with prevailing economic and financial market conditions. As an indicator of sensitivity, increasing the assumed health care cost trend rate by 1% would have increased the accumulated postretirement benefit obligation by $20 million at December 31, 2016, and the aggregate of the service and interest cost components of net postretirement benefit expense by $1 million for the year ended December 31, 2016. Decreasing the assumed health care cost trend rate by 1% would have decreased the accumulated postretirement benefit obligation at December 31, 2016 by $17 million and the aggregate of the service and interest cost components of net postretirement benefit expense by $1 million for the year ended December 31, 2016. The assumptions made for the Company’s foreign pension and foreign postretirement benefit plans are not materially different from those of the Company’s qualified domestic pension plan and the domestic postretirement benefit plan. Plan Assets The qualified domestic pension plan assets are invested for the exclusive benefit of the plan participants and beneficiaries and are intended, over time, to satisfy the benefit obligations under the plan. Risk tolerance is established through consideration of plan liabilities, plan funded status and corporate financial position. The asset mix guidelines have been established and are reviewed quarterly. These guidelines are intended to serve as tools to facilitate the investment of plan assets to maximize long-term total return and the ongoing oversight of the plan’s investment performance. Investment risk is measured and monitored on an ongoing basis through daily and monthly investment portfolio reviews, annual liability measurements and periodic asset/liability studies. The Company’s overall investment strategy for the qualified domestic pension plan is to achieve a mix of approximately 85% to 90% of investments for long-term growth and 10% to 15% for near-term benefit payments with a diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 55% to 65% equity securities and 20% to 40% fixed income securities, with the remainder allocated to short-term securities. Equity securities primarily include investments in large, medium and small-cap companies primarily located in the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, U.S. Treasury securities and debt securities issued by foreign governments. Other investments include two private equity funds held by the Company’s qualified defined benefit pension plan. One private equity fund is focused on financial companies, and the other is focused on real estate-related investments. Assets of the Company’s foreign pension plans are not significant. Fair Value Measurement — Pension Plans and Other Postretirement Benefit Assets For a discussion of the methods employed by the Company to measure the fair value of invested assets, see note 4. The following discussion of fair value measurements applies exclusively to the Company’s pension plans and other postretirement benefit assets. Fair value estimates for equity and bond mutual funds held by the pension plans reflect prices received from an external pricing service that are based on observable market transactions. These estimates are included in Level 1. Short-term securities are carried at fair value which approximates cost plus accrued interest or amortized discount. The fair value or market value of these is periodically compared to this amortized cost and is based on significant observable inputs as determined by an external pricing service. Accordingly, the estimates of fair value for such short-term securities, other than U.S. Treasury securities and money market mutual funds, provided by an external pricing service are included in the amount disclosed in Level 2 of the hierarchy. The estimated fair value of U.S. Treasury securities and money market mutual funds is included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices. Fair Value Hierarchy — Pension Plans The following tables present the level within the fair value hierarchy at which the financial assets of the Company’s pension plans are measured on a recurring basis. (at December 31, 2016, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 9 $ — $ 9 $ — Debt securities issued by foreign governments 14 — 14 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 12 — 12 — All other corporate bonds 511 — 511 — Total fixed maturities 546 — 546 — Mutual funds Equity mutual funds 1,285 1,278 7 — Bond mutual funds 641 638 3 — Total mutual funds 1,926 1,916 10 — Equity securities 747 747 — — Other investments (1) 1 — — 1 Cash and short-term securities U.S. Treasury securities 45 45 — — Money market mutual funds 20 19 1 — Other 208 28 180 — Total cash and short-term securities 273 92 181 — Total $ 3,493 $ 2,755 $ 737 $ 1 (1) The balance of Level 3 fair value investments was $1 million at December 31, 2016 and the change in balance from the prior year was insignificant. (at December 31, 2015, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 17 $ — $ 17 $ — Debt securities issued by foreign governments 16 — 16 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 16 — 16 — All other corporate bonds 491 — 491 — Total fixed maturities 540 — 540 — Mutual funds Equity mutual funds 1,237 1,231 6 — Bond mutual funds 649 646 3 — Total mutual funds 1,886 1,877 9 — Equity securities 625 624 1 — Other investments (1) 2 — — 2 Cash and short-term securities U.S. Treasury securities 25 25 — — Money market mutual funds 23 19 4 — Other 141 20 121 — Total cash and short-term securities 189 64 125 — Total $ 3,242 $ 2,565 $ 675 $ 2 (1) The balance of Level 3 fair value investments was $2 million at December 31, 2015 and the change in balance from the prior year was insignificant. Other Postretirement Benefit Plans The Company’s overall investment strategy is to achieve a mix of approximately 35% to 65% of investments for long-term growth and 35% to 60% for near-term insurance payments with a wide diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 25% to 75% fixed income securities, with the remainder allocated to short-term securities. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities and U.S. Treasuries. Fair Value — Other Postretirement Benefit Plans The Company’s other postretirement benefit plans had financial assets of $14 million and $15 million at December 31, 2016 and 2015, respectively, which are measured at fair value on a recurring basis. The assets are primarily corporate bonds and short-term securities and categorized as level 2 in the fair value hierarchy. Estimated Future Benefit Payments The following table presents the estimated benefits expected to be paid by the Company’s pension and postretirement benefit plans for the next ten years (reflecting estimated future employee service). Benefits Expected to be Paid (in millions) Pension Plans Postretirement Benefit 2017 $ 230 $ 13 2018 240 14 2019 247 14 2020 253 14 2021 258 14 2022 through 2026 1,327 71 Savings Plan The Company has a savings plan, The Travelers 401(k) Savings Plan (the Savings Plan), in which All common shares held by the Savings Plan are considered outstanding for basic and diluted EPS computations and dividends paid on all shares are charged to retained earnings. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases disclosure | |
Leases disclosure [Text Block] | 15. LEASES Rent expense was $197 million, $202 million and $215 million in 2016, 2015 and 2014, respectively. Future minimum annual rental payments under noncancellable operating leases for 2017, 2018, 2019, 2020 and 2021 are $147 million, $118 million, $100 million, $80 million and $60 million, respectively, and $100 million for 2022 and thereafter. Future sublease rental income aggregating approximately $4 million will partially offset these commitments. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Contingencies, Commitments and Guarantees disclosure | |
Contingencies, Commitments and Guarantees disclosure [Text Block] | 16. CONTINGENCIES, COMMITMENTS AND GUARANTEES Contingencies The major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or to which any of the Company’s properties is subject are described below. Asbestos and Environmental Claims and Litigation In the ordinary course of its insurance business, the Company has received and continues to receive claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos- and environmental-related exposures that are the subject of related coverage litigation. The Company is defending asbestos- and environmental-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and aggressive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. Currently, it is not possible to predict legal outcomes and their impact on the future development of claims and litigation relating to asbestos and environmental claims. Any such development will be affected by future court decisions and interpretations, as well as changes in applicable legislation. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company’s current insurance reserves. In addition, the Company’s estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or 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. Settlement of Asbestos Direct Action Litigation In 2001 and 2002, a number of lawsuits, including two purported class action suits, were filed against certain subsidiaries of the Company (collectively or individually, Travelers) and other insurers in state courts in West Virginia, Massachusetts and Hawaii. The plaintiffs alleged that the insurer defendants had inappropriately handled and settled asbestos claims in violation of those states’ statutes regulating insurance claims handling and/or those states’ common law. In all these suits, the plaintiffs sought to reopen large numbers of settled asbestos claims and to impose liability for damages, including punitive damages, directly on insurers. These suits are collectively referred to as the Statutory Actions. Plaintiffs also filed complaints during 2001 and 2002 in State Courts in West Virginia, Texas and Ohio, and occasionally in other jurisdictions, against Travelers and other insurers, alleging that the insurers breached alleged duties to individuals allegedly exposed to asbestos products. The plaintiffs sought damages for personal injuries and wrongful death, including punitive damages. These suits are collectively referred to as the Common Law Actions. In response to these claims, Travelers moved to enjoin the Statutory Actions and the Common Law Actions in the federal bankruptcy court that had presided over the bankruptcy of its 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, which resulted in settlements of the Statutory Actions and the Common Law Actions (the Settlements). The Settlements were contingent upon, among other contingencies, a final order confirming that the 1986 Orders enjoined the Statutory Actions and the Common Law Actions as well as related contribution claims against Travelers (the Clarifying Order). Numerous proceedings took place in the bankruptcy, district and appellate courts concerning the entry of the Clarifying Order and approval of the Settlements and their effect on other parties. In 2009, the United States Supreme Court affirmed the bankruptcy court’s entry of the Clarifying Order enjoining the Statutory Actions and the Common Law Actions. The Supreme Court remanded the case to the lower courts to consider any properly preserved objections. Following resolution, after remand, of one remaining objection (regarding potential contribution claims against the Company), and entry of a final judgment by the bankruptcy court approving the Settlements, Travelers made payment of $579 million to the plaintiffs in January 2015, comprising $502 million provided under the terms of the Settlements, plus pre-judgment and post-judgment interest totaling $77 million. The payment was fully accrued in the Company’s financial statements at December 31, 2014. Other Proceedings Not Arising Under Insurance Contracts or Reinsurance Agreements The Company is involved in other lawsuits, including lawsuits alleging extra-contractual damages relating to insurance contracts or reinsurance agreements, that do not arise under insurance contracts or reinsurance agreements. The legal costs associated with such lawsuits are expensed in the period in which the costs are incurred. Based upon currently available information, the Company does not believe it is reasonably possible that any such lawsuit or related lawsuits would be material to the Company’s results of operations or would have a material adverse effect on the Company’s financial position or liquidity. 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. On November 7, 2016, the Company agreed to a settlement with one of the three defendants then remaining in this dispute. The Company received payment under the settlement in the fourth quarter of 2016 and, as a result, recognized a $126 million pre-tax ($82 million after-tax) gain in the fourth quarter, which is included in “other revenues” in the consolidated statement of income. The reinsurance recoverable balance related to this case was reduced from approximately $238 million to approximately $31 million in the Company’s consolidated balance sheet. On December 22, 2016, the Appellate Court, First Department affirmed the denial of the reinsurers’ motion to change venue and a trial is set to proceed on May 1, 2017 with regard to the remaining two defendants — both of which are subsidiaries of the same company. At December 31, 2016, the claim related to the remaining defendants totaled $69 million, comprising $31 million of a reinsurance recoverable plus interest amounting to $38 million as of that date. Interest will continue to accrue at an annual rate of 9% until the amounts owed by the remaining defendants are paid, though the reinsurers still party to the case contested that interest is owed in a brief filed on June 6, 2016. The interest that would be owed as part of any judgment ultimately entered in favor of the Company related to the remaining defendants is treated for accounting purposes as a gain contingency in accordance with FASB Topic 450, Contingencies, Other Commitments and Guarantees Commitments Investment Commitments 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 and, in certain cases, obligations arising from certain liabilities. 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 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. 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 December 31, 2016, 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 December 31, 2016, all of which is indemnified by a third party. Certain of the guarantees and indemnifications described above have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, the Company is unable to provide an estimate of the maximum potential payments for such arrangements. |
Noncash Investing and Financing
Noncash Investing and Financing Activities | 12 Months Ended |
Dec. 31, 2016 | |
Noncash Investing and Financing Activities disclosure | |
Noncash Investing and Financing Activities disclosure [Text Block] | 17. NONCASH INVESTING AND FINANCING ACTIVITIES There were no material noncash financing or investing activities during the years ended December 31, 2016, 2015 and 2014. |
Consolidating Financial Stateme
Consolidating Financial Statements (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
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] | 18. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES The following consolidating financial statements of the Company have been prepared pursuant to Rule 3-10 of Regulation S-X. These consolidating financial statements have been prepared from the Company’s financial information on the same basis of accounting as the consolidated financial statements. The Travelers Companies, Inc. (excluding its subsidiaries, TRV) has fully and unconditionally guaranteed certain debt obligations of Travelers Property Casualty Corp. (TPC), which totaled $700 million at December 31, 2016. Prior to the merger of TPC and The St. Paul Companies, Inc. in 2004, TPC fully and unconditionally guaranteed the payment of all principal, premiums, if any, and interest on certain debt obligations of its wholly-owned subsidiary, Travelers Insurance Group Holdings, Inc. (TIGHI). Concurrent with the merger, TRV fully and unconditionally assumed such guarantee obligations of TPC. TPC is deemed to have no assets or operations independent of TIGHI. Consolidating financial information for TIGHI has not been presented herein because such financial information would be substantially the same as the financial information provided for TPC. CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the year ended December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 16,788 $ 7,746 $ — $ — $ 24,534 Net investment income 1,569 720 13 — 2,302 Fee income 458 — — — 458 Net realized investment gains (losses)(1) 30 39 (1 ) — 68 Other revenues 248 36 — (21 ) 263 Total revenues 19,093 8,541 12 (21 ) 27,625 Claims and expenses Claims and claim adjustment expenses 10,232 4,838 — — 15,070 Amortization of deferred acquisition costs 2,702 1,283 — — 3,985 General and administrative expenses 2,928 1,242 5 (21 ) 4,154 Interest expense 48 — 315 — 363 Total claims and expenses 15,910 7,363 320 (21 ) 23,572 Income (loss) before income taxes 3,183 1,178 (308 ) — 4,053 Income tax expense (benefit) 999 208 (168 ) — 1,039 Net income of subsidiaries — — 3,154 (3,154 ) — Net income $ 2,184 $ 970 $ 3,014 $ (3,154 ) $ 3,014 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (19 ) $ (20 ) $ (1 ) $ — $ (40 ) OTTI losses recognized in net realized investment gains (losses) $ (13 ) $ (15 ) $ (1 ) $ — $ (29 ) OTTI losses recognized in OCI $ (6 ) $ (5 ) $ — $ — $ (11 ) CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the year ended December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 16,254 $ 7,620 $ — $ — $ 23,874 Net investment income 1,612 760 7 — 2,379 Fee income 460 — — — 460 Net realized investment gains (losses)(1) 13 (11 ) 1 — 3 Other revenues 78 21 — — 99 Total revenues 18,417 8,390 8 — 26,815 Claims and expenses Claims and claim adjustment expenses 9,208 4,515 — — 13,723 Amortization of deferred acquisition costs 2,627 1,258 — — 3,885 General and administrative expenses 2,853 1,225 16 — 4,094 Interest expense 48 — 325 — 373 Total claims and expenses 14,736 6,998 341 — 22,075 Income (loss) before income taxes 3,681 1,392 (333 ) — 4,740 Income tax expense (benefit) 1,015 394 (108 ) — 1,301 Net income of subsidiaries — — 3,664 (3,664 ) — Net income $ 2,666 $ 998 $ 3,439 $ (3,664 ) $ 3,439 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (19 ) $ (35 ) $ — $ — $ (54 ) OTTI losses recognized in net realized investment gains (losses) $ (18 ) $ (34 ) $ — $ — $ (52 ) OTTI losses recognized in OCI $ (1 ) $ (1 ) $ — $ — $ (2 ) CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the year ended December 31, 2014 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 16,097 $ 7,616 $ — $ — $ 23,713 Net investment income 1,874 907 6 — 2,787 Fee income 448 2 — — 450 Net realized investment gains(1) 12 64 3 — 79 Other revenues 125 20 — — 145 Total revenues 18,556 8,609 9 — 27,174 Claims and expenses Claims and claim adjustment expenses 9,274 4,596 — — 13,870 Amortization of deferred acquisition costs 2,604 1,278 — — 3,882 General and administrative expenses 2,755 1,194 15 — 3,964 Interest expense 48 — 321 — 369 Total claims and expenses 14,681 7,068 336 — 22,085 Income (loss) before income taxes 3,875 1,541 (327 ) — 5,089 Income tax expense (benefit) 1,095 417 (115 ) — 1,397 Net income of subsidiaries — — 3,904 (3,904 ) — Net income $ 2,780 $ 1,124 $ 3,692 $ (3,904 ) $ 3,692 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (16 ) $ (6 ) $ — $ — $ (22 ) OTTI losses recognized in net realized investment gains $ (19 ) $ (7 ) $ — $ — $ (26 ) OTTI gains recognized in OCI $ 3 $ 1 $ — $ — $ 4 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the year ended December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 2,184 $ 970 $ 3,014 $ (3,154 ) $ 3,014 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (696 ) (198 ) 11 — (883 ) Having credit losses recognized in the consolidated statement of income 11 10 — — 21 Net changes in benefit plan assets and obligations 25 11 (20 ) — 16 Net changes in unrealized foreign currency translation 73 (114 ) — — (41 ) Other comprehensive loss before income taxes and other comprehensive loss of subsidiaries (587 ) (291 ) (9 ) — (887 ) Income tax benefit (222 ) (66 ) (1 ) — (289 ) Other comprehensive loss, net of taxes, before other comprehensive loss of subsidiaries (365 ) (225 ) (8 ) — (598 ) Other comprehensive loss of subsidiaries — — (590 ) 590 — Other comprehensive loss (365 ) (225 ) (598 ) 590 (598 ) Comprehensive income $ 1,819 $ 745 $ 2,416 $ (2,564 ) $ 2,416 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the year ended December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 2,666 $ 998 $ 3,439 $ (3,664 ) $ 3,439 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (610 ) (407 ) (3 ) — (1,020 ) Having credit losses recognized in the consolidated statement of income (12 ) (2 ) — — (14 ) Net changes in benefit plan assets and obligations 2 — 64 — 66 Net changes in unrealized foreign currency translation (306 ) (155 ) — — (461 ) Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries (926 ) (564 ) 61 — (1,429 ) Income tax expense (benefit) (257 ) (156 ) 21 — (392 ) Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries (669 ) (408 ) 40 — (1,037 ) Other comprehensive loss of subsidiaries — — (1,077 ) 1,077 — Other comprehensive loss (669 ) (408 ) (1,037 ) 1,077 (1,037 ) Comprehensive income $ 1,997 $ 590 $ 2,402 $ (2,587 ) $ 2,402 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the year ended December 31, 2014 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 2,780 $ 1,124 $ 3,692 $ (3,904 ) $ 3,692 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 681 289 6 — 976 Having credit losses recognized in the consolidated statement of income 9 (7 ) — — 2 Net changes in benefit plan assets and obligations (15 ) (8 ) (471 ) — (494 ) Net changes in unrealized foreign currency translation (173 ) (116 ) — — (289 ) Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 502 158 (465 ) — 195 Income tax expense (benefit) 207 81 (163 ) — 125 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 295 77 (302 ) — 70 Other comprehensive income of subsidiaries — — 372 (372 ) — Other comprehensive income 295 77 70 (372 ) 70 Comprehensive income $ 3,075 $ 1,201 $ 3,762 $ (4,276 ) $ 3,762 CONSOLIDATING BALANCE SHEET (Unaudited) At December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $59,650) $ 42,014 $ 18,452 $ 49 $ — $ 60,515 Equity securities, available for sale, at fair value (cost $504) 169 408 155 — 732 Real estate investments 56 872 — — 928 Short-term securities 2,447 791 1,627 — 4,865 Other investments 2,569 878 1 — 3,448 Total investments 47,255 21,401 1,832 — 70,488 Cash 141 164 2 — 307 Investment income accrued 441 183 6 — 630 Premiums receivable 4,545 2,177 — — 6,722 Reinsurance recoverables 5,664 2,623 — — 8,287 Ceded unearned premiums 536 53 — — 589 Deferred acquisition costs 1,741 182 — — 1,923 Deferred taxes 216 224 25 — 465 Contractholder receivables 3,656 953 — — 4,609 Goodwill 2,578 1,002 — — 3,580 Other intangible assets 202 66 — — 268 Investment in subsidiaries — — 27,137 (27,137 ) — Other assets 1,973 370 34 — 2,377 Total assets $ 68,948 $ 29,398 $ 29,036 $ (27,137 ) $ 100,245 Liabilities Claims and claim adjustment expense reserves $ 32,168 $ 15,781 $ — $ — $ 47,949 Unearned premium reserves 8,575 3,754 — — 12,329 Contractholder payables 3,656 953 — — 4,609 Payables for reinsurance premiums 156 117 — — 273 Debt 693 — 5,744 — 6,437 Other liabilities 4,106 1,239 82 — 5,427 Total liabilities 49,354 21,844 5,826 — 77,024 Shareholders’ equity Common stock (1,750.0 shares authorized; 279.6 shares issued and outstanding) — 390 22,614 (390 ) 22,614 Additional paid-in capital 11,634 6,499 — (18,133 ) — Retained earnings 7,933 797 32,185 (8,719 ) 32,196 Accumulated other comprehensive income (loss) 27 (132 ) (755 ) 105 (755 ) Treasury stock, at cost (489.5 shares) — — (30,834 ) — (30,834 ) Total shareholders’ equity 19,594 7,554 23,210 (27,137 ) 23,221 Total liabilities and shareholders’ equity $ 68,948 $ 29,398 $ 29,036 $ (27,137 ) $ 100,245 CONSOLIDATING BALANCE SHEET (Unaudited) At December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $58,878) $ 42,289 $ 18,323 $ 46 $ — $ 60,658 Equity securities, available for sale, at fair value (cost $528) 189 375 141 — 705 Real estate investments 56 933 — — 989 Short-term securities 1,947 1,178 1,546 — 4,671 Other investments 2,516 930 1 — 3,447 Total investments 46,997 21,739 1,734 — 70,470 Cash 225 153 2 — 380 Investment income accrued 453 185 4 — 642 Premiums receivable 4,336 2,101 — — 6,437 Reinsurance recoverables 5,849 3,061 — — 8,910 Ceded unearned premiums 610 46 — — 656 Deferred acquisition costs 1,660 189 — — 1,849 Deferred taxes 178 83 35 — 296 Contractholder receivables 3,387 987 — — 4,374 Goodwill 2,573 1,000 — — 3,573 Other intangible assets 203 76 — — 279 Investment in subsidiaries — — 27,573 (27,573 ) — Other assets 1,958 344 16 — 2,318 Total assets $ 68,429 $ 29,964 $ 29,364 $ (27,573 ) $ 100,184 Liabilities Claims and claim adjustment expense reserves $ 31,965 $ 16,330 $ — $ — $ 48,295 Unearned premium reserves 8,335 3,636 — — 11,971 Contractholder payables 3,387 987 — — 4,374 Payables for reinsurance premiums 175 121 — — 296 Debt 693 — 5,651 — 6,344 Other liabilities 3,958 1,221 127 — 5,306 Total liabilities 48,513 22,295 5,778 — 76,586 Shareholders’ equity Common stock (1,750.0 shares authorized; 295.9 shares issued and outstanding) — 390 22,172 (390 ) 22,172 Additional paid-in capital 11,634 6,499 — (18,133 ) — Retained earnings 7,888 688 29,933 (8,564 ) 29,945 Accumulated other comprehensive income (loss) 394 92 (157 ) (486 ) (157 ) Treasury stock, at cost (467.6 shares) — — (28,362 ) — (28,362 ) Total shareholders’ equity 19,916 7,669 23,586 (27,573 ) 23,598 Total liabilities and shareholders’ equity $ 68,429 $ 29,964 $ 29,364 $ (27,573 ) $ 100,184 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the year ended December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 2,184 $ 970 $ 3,014 $ (3,154 ) $ 3,014 Net adjustments to reconcile net income to net cash provided by operating activities 1,085 66 (119 ) 156 1,188 Net cash provided by operating activities 3,269 1,036 2,895 (2,998 ) 4,202 Cash flows from investing activities Proceeds from maturities of fixed maturities 6,589 2,380 6 — 8,975 Proceeds from sales of investments: Fixed maturities 768 647 2 — 1,417 Equity securities 47 45 — — 92 Real estate investments — 69 — — 69 Other investments 586 253 — — 839 Purchases of investments: Fixed maturities (7,921 ) (3,676 ) (12 ) — (11,609 ) Equity securities (6 ) (42 ) (3 ) — (51 ) Real estate investments (1 ) (47 ) — — (48 ) Other investments (453 ) (127 ) — — (580 ) Net sales (purchases) of short-term securities (501 ) 383 (81 ) — (199 ) Securities transactions in course of settlement 12 (32 ) (1 ) — (21 ) Other (334 ) (10 ) — — (344 ) Net cash used in investing activities (1,214 ) (157 ) (89 ) — (1,460 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (2,400 ) — (2,400 ) Treasury stock acquired — net employee share-based compensation — — (72 ) — (72 ) Dividends paid to shareholders — — (757 ) — (757 ) Payment of debt — — (400 ) — (400 ) Issuance of debt — — 491 — 491 Issuance of common stock — employee share options — — 332 — 332 Dividends paid to parent company (2,140 ) (858 ) — 2,998 — Net cash used in financing activities (2,140 ) (858 ) (2,806 ) 2,998 (2,806 ) Effect of exchange rate changes on cash 1 (10 ) — — (9 ) Net increase (decrease) in cash (84 ) 11 — — (73 ) Cash at beginning of year 225 153 2 — 380 Cash at end of year $ 141 $ 164 $ 2 $ — $ 307 Supplemental disclosure of cash flow information Income taxes paid (received) $ 737 $ 287 $ (132 ) $ — $ 892 Interest paid $ 47 $ — $ 311 $ — $ 358 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the year ended December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 2,666 $ 998 $ 3,439 $ (3,664 ) $ 3,439 Net adjustments to reconcile net income to net cash provided by operating activities (577 ) 414 330 (172 ) (5 ) Net cash provided by operating activities 2,089 1,412 3,769 (3,836 ) 3,434 Cash flows from investing activities Proceeds from maturities of fixed maturities 7,543 3,563 10 — 11,116 Proceeds from sales of investments: Fixed maturities 1,227 723 — — 1,950 Equity securities 25 34 — — 59 Real estate investments — 31 — — 31 Other investments 503 210 — — 713 Purchases of investments: Fixed maturities (8,276 ) (3,787 ) (27 ) — (12,090 ) Equity securities (3 ) (43 ) (3 ) — (49 ) Real estate investments (1 ) (122 ) — — (123 ) Other investments (423 ) (111 ) — — (534 ) Net sales (purchases) of short-term securities 179 (489 ) (16 ) — (326 ) Securities transactions in course of settlement (52 ) (61 ) — — (113 ) Acquisition, net of cash acquired (13 ) — — — (13 ) Other (343 ) 39 — — (304 ) Net cash provided by (used in) investing activities 366 (13 ) (36 ) — 317 Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (3,150 ) — (3,150 ) Treasury stock acquired — net employee share-based compensation — — (74 ) — (74 ) Dividends paid to shareholders — — (739 ) — (739 ) Payment of debt — — (400 ) — (400 ) Issuance of debt — — 392 — 392 Issuance of common stock — employee share options — — 183 — 183 Excess tax benefits from share-based payment arrangements — — 55 — 55 Dividends paid to parent company (2,450 ) (1,383 ) — 3,833 — Capital contributions, loans and other transactions between subsidiaries — (3 ) — 3 — Net cash used in financing activities (2,450 ) (1,386 ) (3,733 ) 3,836 (3,733 ) Effect of exchange rate changes on cash (1 ) (11 ) — — (12 ) Net increase in cash 4 2 — — 6 Cash at beginning of year 221 151 2 — 374 Cash at end of year $ 225 $ 153 $ 2 $ — $ 380 Supplemental disclosure of cash flow information Income taxes paid (received) $ 1,032 $ 384 $ (209 ) $ — $ 1,207 Interest paid $ 47 $ — $ 318 $ — $ 365 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the year ended December 31, 2014 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 2,780 $ 1,124 $ 3,692 $ (3,904 ) $ 3,692 Net adjustments to reconcile net income to net cash provided by operating activities 343 (293 ) 118 (167 ) 1 Net cash provided by operating activities 3,123 831 3,810 (4,071 ) 3,693 Cash flows from investing activities Proceeds from maturities of fixed maturities 6,625 4,258 11 — 10,894 Proceeds from sales of investments: Fixed maturities 595 453 1 — 1,049 Equity securities 111 43 4 — 158 Real estate investments 1 14 — — 15 Other investments 477 378 — — 855 Purchases of investments: Fixed maturities (6,856 ) (4,465 ) (4 ) — (11,325 ) Equity securities (3 ) (42 ) (7 ) — (52 ) Real estate investments (22 ) (26 ) — — (48 ) Other investments (405 ) (149 ) — — (554 ) Net purchases of short-term securities (268 ) (223 ) (7 ) — (498 ) Securities transactions in course of settlement 44 38 — — 82 Acquisition, net of cash acquired (9 ) (3 ) — (12 ) Other (350 ) (8 ) — — (358 ) Net cash provided by (used in) investing activities (60 ) 268 (2 ) — 206 Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (3,275 ) — (3,275 ) Treasury stock acquired — net employee share-based compensation — — (57 ) — (57 ) Dividends paid to shareholders — — (729 ) — (729 ) Issuance of common stock — employee share options — — 195 — 195 Excess tax benefits from share-based payment arrangements — — 57 — 57 Dividends paid to parent company (2,978 ) (1,093 ) — 4,071 — Net cash used in financing activities (2,978 ) (1,093 ) (3,809 ) 4,071 (3,809 ) Effect of exchange rate changes on cash (1 ) (9 ) — — (10 ) Net increase (decrease) in cash 84 (3 ) (1 ) — 80 Cash at beginning of year 137 154 3 — 294 Cash at end of year $ 221 $ 151 $ 2 $ — $ 374 Supplemental disclosure of cash flow information Income taxes paid (received) $ 947 $ 336 $ (136 ) $ — $ 1,147 Interest paid $ 47 $ — $ 318 $ — $ 365 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Data (Unaudited) disclosure | |
Selected Quarterly Financial Data (Unaudited) disclosure [Text Block] | 19. SELECTED QUARTERLY FINANCIAL DATA (Unaudited) 2016 (in millions, except per share amounts) First Second Third Fourth Total Total revenues $ 6,686 $ 6,785 $ 6,961 $ 7,193 $ 27,625 Total expenses 5,769 5,898 6,014 5,891 23,572 Income before income taxes 917 887 947 1,302 4,053 Income tax expense 226 223 231 359 1,039 Net income $ 691 $ 664 $ 716 $ 943 $ 3,014 Net income per share(1): Basic $ 2.33 $ 2.27 $ 2.48 $ 3.32 $ 10.39 Diluted 2.30 2.24 2.45 3.28 10.28 2015 (in millions, except per share amounts) First Second Third Fourth Total Total revenues $ 6,629 $ 6,710 $ 6,798 $ 6,678 $ 26,815 Total expenses 5,481 5,634 5,491 5,469 22,075 Income before income taxes 1,148 1,076 1,307 1,209 4,740 Income tax expense 315 264 379 343 1,301 Net income $ 833 $ 812 $ 928 $ 866 $ 3,439 Net income per share(1): Basic $ 2.58 $ 2.56 $ 3.00 $ 2.87 $ 10.99 Diluted 2.55 2.53 2.97 2.83 10.88 (1) |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2016 | |
Schedule II | |
Schedule II [Text Block] | SCHEDULE II THE TRAVELERS COMPANIES, INC. (Parent Company Only) CONDENSED FINANCIAL INFORMATION OF REGISTRANT (in millions) CONDENSED STATEMENT OF INCOME For the year ended December 31, 2016 2015 2014 Revenues Net investment income $ 13 $ 7 $ 6 Net realized investment gains (losses) (1) (1 ) 1 3 Total revenues 12 8 9 Expenses Interest 315 325 321 Other 5 16 15 Total expenses 320 341 336 Loss before income taxes and net income of subsidiaries (308 ) (333 ) (327 ) Income tax benefit (168 ) (108 ) (115 ) Loss before net income of subsidiaries (140 ) (225 ) (212 ) Net income of subsidiaries 3,154 3,664 3,904 Net income $ 3,014 $ 3,439 $ 3,692 (1) The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. CONDENSED STATEMENT OF COMPREHENSIVE INCOME For the year ended December 31, 2016 2015 2014 Consolidated net income $ 3,014 $ 3,439 $ 3,692 Other comprehensive income (loss) — parent company: Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income 11 (3 ) 6 Net changes in benefit plan assets and obligations (20 ) 64 (471 ) Other comprehensive income (loss) before income taxes and other comprehensive income (loss) of subsidiaries (9 ) 61 (465 ) Income tax expense (benefit) (1 ) 21 (163 ) Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries (8 ) 40 (302 ) Other comprehensive income (loss) of subsidiaries (590 ) (1,077 ) 372 Consolidated other comprehensive income (loss) (598 ) (1,037 ) 70 Consolidated comprehensive income $ 2,416 $ 2,402 $ 3,762 The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. CONDENSED BALANCE SHEET At December 31, 2016 2015 Assets Fixed maturities $ 49 $ 46 Equity securities 155 141 Short-term securities 1,627 1,546 Investment in subsidiaries 27,137 27,573 Other assets 68 58 Total assets $ 29,036 $ 29,364 Liabilities Debt $ 5,744 $ 5,651 Other liabilities 82 127 Total liabilities 5,826 5,778 Shareholders’ equity Common stock (1,750.0 shares authorized, 279.6 and 295.9 shares issued and outstanding) 22,614 22,172 Retained earnings 32,185 29,933 Accumulated other comprehensive loss (755 ) (157 ) Treasury stock, at cost (489.5 and 467.6 shares) (30,834 ) (28,362 ) Total shareholders’ equity 23,210 23,586 Total liabilities and shareholders’ equity $ 29,036 $ 29,364 The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. CONDENSED STATEMENT OF CASH FLOWS For the year ended December 31, 2016 2015 2014 Cash flows from operating activities Net income $ 3,014 $ 3,439 $ 3,692 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiaries (3,154 ) (3,664 ) (3,904 ) Dividends received from consolidated subsidiaries 2,998 3,833 4,071 Capital received from subsidiaries — 3 — Deferred federal income tax expense (benefit) 12 (6 ) 51 Change in income taxes payable (48 ) 51 (87 ) Other 73 113 (13 ) Net cash provided by operating activities 2,895 3,769 3,810 Cash flows from investing activities Net purchases of short-term securities (81 ) (16 ) (7 ) Other investments, net (8 ) (20 ) 5 Net cash used in investing activities (89 ) (36 ) (2 ) Cash flows from financing activities Treasury stock acquired—share repurchase authorization (2,400 ) (3,150 ) (3,275 ) Treasury stock acquired—net employee share-based compensation (72 ) (74 ) (57 ) Dividends paid to shareholders (757 ) (739 ) (729 ) Payment of debt (400 ) (400 ) — Issuance of debt 491 392 — Issuance of common stock—employee share options 332 183 195 Other — 55 57 Net cash used in financing activities (2,806 ) (3,733 ) (3,809 ) Net decrease in cash — — (1 ) Cash at beginning of year 2 2 3 Cash at end of year $ 2 $ 2 $ 2 Supplemental disclosure of cash flow information Cash received during the year for taxes $ 132 $ 209 $ 136 Cash paid during the year for interest $ 311 $ 318 $ 318 The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto. SCHEDULE II THE TRAVELERS COMPANIES, INC. NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT 1. GUARANTEES The Travelers Companies, Inc. (TRV) fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033. TRV also has contingent obligations for guarantees in connection with the selling of businesses to third parties and various indemnifications including indemnifications to service providers in the normal course of business. The guarantees and indemnification clauses are often standard contractual terms and include indemnifications for breaches of representations and warranties and in some cases obligations arising from certain liabilities. The terms of these provisions vary in duration and nature. Certain of the guarantees and indemnifications described above have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, TRV is unable to provide an estimate of the maximum potential payments for such arrangements. |
Schedule III
Schedule III | 12 Months Ended |
Dec. 31, 2016 | |
Schedule III | |
Schedule III [Text Block] | SCHEDULE III THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES Supplementary Insurance Information 2014-2016 (in millions) Segment Deferred Claims and Unearned Earned Net Claims and Amortization Other Net 2016 Business Insurance $ 1,026 $ 39,555 $ 6,725 $ 13,855 $ 1,701 $ 8,753 $ 2,221 $ 2,554 $ 13,900 Bond & Specialty Insurance 246 3,323 1,444 2,260 239 633 421 445 2,271 Personal Insurance 651 5,051 4,160 8,419 362 5,684 1,343 1,124 8,787 Total—Reportable Segments 1,923 47,929 12,329 24,534 2,302 15,070 3,985 4,123 24,958 Other — 20 — — — — — 394 — Consolidated $ 1,923 $ 47,949 $ 12,329 $ 24,534 $ 2,302 $ 15,070 $ 3,985 $ 4,517 $ 24,958 2015 Business Insurance $ 1,008 $ 39,983 $ 6,741 $ 13,698 $ 1,757 $ 8,409 $ 2,182 $ 2,505 $ 13,774 Bond & Specialty Insurance 240 3,615 1,437 2,267 254 719 418 440 2,273 Personal Insurance 601 4,674 3,793 7,909 368 4,595 1,285 1,118 8,074 Total—Reportable Segments 1,849 48,272 11,971 23,874 2,379 13,723 3,885 4,063 24,121 Other — 23 — — — — — 404 — Consolidated $ 1,849 $ 48,295 $ 11,971 $ 23,874 $ 2,379 $ 13,723 $ 3,885 $ 4,467 $ 24,121 2014 Business Insurance $ 1,002 $ 40,713 $ 6,707 $ 13,515 $ 2,072 $ 8,458 $ 2,159 $ 2,350 $ 13,677 Bond & Specialty Insurance 237 3,984 1,448 2,275 293 603 417 460 2,294 Personal Insurance 596 5,127 3,684 7,923 422 4,809 1,306 1,123 7,933 Total—Reportable Segments 1,835 49,824 11,839 23,713 2,787 13,870 3,882 3,933 23,904 Other — 26 — — — — — 400 — Consolidated $ 1,835 $ 49,850 $ 11,839 $ 23,713 $ 2,787 $ 13,870 $ 3,882 $ 4,333 $ 23,904 (1) (2) |
Schedule V
Schedule V | 12 Months Ended |
Dec. 31, 2016 | |
Schedule V | |
Schedule V [Text Block] | SCHEDULE V THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES Valuation and Qualifying Accounts (in millions) Balance at Charged to Charged to Deductions (1) Balance at 2016 Reinsurance recoverables $ 157 $ — $ — $ 41 $ 116 Allowance for uncollectible: Premiums receivable from underwriting activities $ 65 $ 35 $ — $ 39 $ 61 Deductibles $ 35 $ 5 $ — $ 6 $ 34 2015 Reinsurance recoverables $ 203 $ — $ — $ 46 $ 157 Allowance for uncollectible: Premiums receivable from underwriting activities $ 70 $ 38 $ — $ 43 $ 65 Deductibles $ 36 $ 3 $ — $ 4 $ 35 2014 Reinsurance recoverables $ 239 $ — $ — $ 36 $ 203 Allowance for uncollectible: Premiums receivable from underwriting activities $ 75 $ 44 $ — $ 49 $ 70 Deductibles $ 39 $ — $ — $ 3 $ 36 (1) |
Schedule VI
Schedule VI | 12 Months Ended |
Dec. 31, 2016 | |
Schedule VI | |
Schedule VI [Text Block] | SCHEDULE VI THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES Supplementary Information Concerning Property-Casualty Insurance Operations (1) 2014-2016 (in millions) Claims and Claim Amortization Paid Claims Affiliation Deferred Claims and Discount From Net of Deferred and Claim Net with Acquisition Claim Adjustment Reserves for Unearned Earned Investment Current Prior Acquisition Adjustment Written Registrant(2) Costs Expense Reserves Unpaid Claims(3) Premiums Premiums Income Year Year Costs Expenses Premiums 2016 $ 1,923 $ 47,929 $ 1,083 $ 12,329 $ 24,534 $ 2,302 $ 15,675 $ (680 ) $ 3,985 $ 14,796 $ 24,958 2015 $ 1,849 $ 48,272 $ 1,066 $ 11,971 $ 23,874 $ 2,379 $ 14,471 $ (817 ) $ 3,885 $ 14,474 $ 24,121 2014 $ 1,835 $ 49,824 $ 1,080 $ 11,839 $ 23,713 $ 2,787 $ 14,688 $ (885 ) $ 3,882 $ 14,066 $ 23,904 (1) (2) (3) |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies disclosure | |
Accounting Policies, Basis of Presentation [Policy Text Block] | Basis of Presentation The consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. |
Accounting Policies, Adoption of Accounting Standards [Policy Text Block] | Adoption of Accounting Standards Compensation — Stock Compensation: 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 Financial Accounting Standards Board (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. 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 the 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 was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Presentation of Financial Statements: 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 updated guidance was effective for annual periods ending after December 15, 2016, and interim and annual periods thereafter. The adoption of this guidance did not have any effect on the Company’s results of operations, financial position or liquidity. Derivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In November 2014, the FASB issued updated guidance to clarify when the separation of certain embedded derivative features in a hybrid financial instrument that is issued in the form of a share is required. That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract. Specifically, the updated guidance clarifies that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Consolidation: Amendments to the Consolidation Analysis In February 2015, the FASB issued updated guidance that makes targeted amendments to the current consolidation accounting guidance. The update is in response to accounting complexity concerns, particularly from the asset management industry. The guidance simplifies consolidation accounting by reducing the number of approaches to consolidation, provides a scope exception to registered money market funds and similar unregistered money market funds and ends the indefinite deferral granted to investment companies from applying the variable interest entity guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Interest — Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued updated guidance to clarify the required presentation of debt issuance costs. The updated guidance requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the recognized debt liability, consistent with the treatment of debt discounts. Amortization of debt issuance costs is to be reported as interest expense. The recognition and measurement guidance for debt issuance costs are not affected by the updated guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The updated guidance is consistent with the Company’s accounting policy and its adoption did not have any effect on the Company’s results of operations, financial position or liquidity. Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments In September 2015, the FASB issued updated guidance regarding business combinations that requires an acquirer to recognize post-close measurement adjustments for provisional amounts in the period the adjustment amounts are determined rather than retrospectively. The acquirer is also required to recognize, in the same period’s financial statements, th Compensation — In March 2016, the FASB issued updated guidance to simplify several aspects of accounting for share-based payment transactions as follows: Accounting for Income Taxes Under current accounting guidance, if the deduction for a share-based payment award for tax purposes exceeds, or is less than, the compensation cost recognized for financial reporting purposes, the resulting excess tax benefit, or tax deficiency, is reported as part of additional paid-in capital. Under the updated guidance, these excess tax benefits, or tax deficiencies, are reported as part of income tax expense or benefit in the income statement. The updated guidance also removes the requirement to delay recognition of any excess tax benefit when there are no current taxes payable to which the benefit would be applied. The tax-related cash flows resulting from share-based payments are to be included with other income tax cash flows as an operating activity rather than being reported separately as a financing activity. Forfeitures The updated guidance permits an entity to make an accounting policy election to either account for forfeitures when they occur or continue to apply the current method of accruing the compensation cost based on the number of awards that are expected to vest. Minimum Statutory Tax Withholding Requirements The updated guidance changes the threshold amount an entity can withhold for taxes when settling an equity award and still qualify for equity classification. A company can withhold up to the maximum statutory tax rates in the employees’ applicable jurisdiction rather than withholding up to the employers’ minimum statutory withholding requirement. The update also clarifies that all cash payments made to taxing authorities on behalf of employees for withheld shares are to be presented in financing activities on the statement of cash flows. Transition The updated guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted in any interim period; if early adoption is elected, the entity must adopt all of the amendments in the same reporting period and reflect any adjustments as of the beginning of the fiscal year. The Company adopted the updated guidance effective January 1, 2016. With respect to the forfeiture accounting policy election, the Company elected to retain its policy of accruing the compensation cost based on the number of awards that are expected to vest. The adoption did not result in any cumulative effect adjustments or restatement and did not have a material effect on the Company’s results of operations, financial position or liquidity. |
Accounting Policies, Investments [Policy Text Block] | Investments Fixed Maturity and Equity Securities Fixed maturities include bonds, notes and redeemable preferred stocks. Fixed maturities, including instruments subject to securities lending agreements, are classified as available for sale and are reported at fair value, with unrealized investment gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Equity securities, which include public common and non-redeemable preferred stocks, are classified as available for sale and are reported at fair value with unrealized gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Real Estate Investments The Company’s real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. Buildings are depreciated on a straight-line basis over the shorter of the expected useful life of the building or 39 years. Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell. Short-term Securities Short-term securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value. Other Investments Investments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships The Company uses the equity method of accounting for investments in private equity limited partnerships, hedge funds and real estate partnerships. The partnerships Other Also included in other investments are non-public common equities, preferred equities and derivatives. Non-public common equities and preferred equities are reported at fair value with changes in fair value, net of income taxes, charged or credited directly to other comprehensive income. The Company’s derivative financial instruments are carried at fair value, with the changes in fair value reflected in the consolidated statement of income in net realized investment gains (losses). For a further discussion of the derivatives used by the Company, see note 3. |
Accounting Policies, Net Investment Income [Policy Text Block] | Net Investment Income Investment income from fixed maturities is recognized based on the constant effective yield method which includes an adjustment for estimated principal pre-payments, if any. The effective yield used to determine amortization for fixed maturities subject to prepayment risk (e.g., asset-backed, loan-backed and structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows, which are obtained from a widely-accepted securities data provider. The adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for non-highly rated prepayable fixed maturities are accounted for using the prospective method. Dividends on equity securities (including those with transfer restrictions) are recognized in income when declared. Rental income on real estate is recognized on a straight-line basis over the lease term. See the section titled: Real Estate in note 3 for further discussion. Investments in private equity limited partnerships, hedge funds, real estate partnerships and joint ventures are accounted for using the equity method of accounting, whereby the Company’s share of the investee’s earnings or losses in the fund is reported in net investment income. Accrual of income is suspended on non-securitized fixed maturities that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only when payments are received. Investments included in the consolidated balance sheet that were not income-producing for the preceding 12 months were not material. For fixed maturities where the Company records an other-than-temporary impairment, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. For fixed maturities where the Company expects a recovery in value, not necessarily to par, the constant effective yield method is utilized, and the investment is amortized to the expected recovery amount. |
Accounting Policies, Investment Gains and Losses [Policy Text Block] | Investment Gains and Losses Net realized investment gains and losses are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Included in net realized investment gains (losses) are other-than-temporary impairment losses on invested assets other than those investments accounted for using the equity method of accounting as described in the “Investment Impairments” section that follows. |
Accounting Policies, Investment Impairments [Policy Text Block] | Investment Impairments The Company conducts a periodic review to identify and evaluate invested assets having other-than-temporary impairments. Some of the factors considered in identifying other-than-temporary impairments include: (1) for fixed maturity investments, whether the Company intends to sell the investment or whether it is more likely than not that the Company will be required to sell the investment prior to an anticipated recovery in value; (2) for non-fixed maturity investments, the Company’s ability and intent to retain the investment for a reasonable period of time sufficient to allow for an anticipated recovery in value; (3) the likelihood of the recoverability of principal and interest for fixed maturity securities (i.e., whether there is a credit loss) or cost for equity securities; (4) the length of time and extent to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities; and (5) the financial condition, near-term and long-term prospects for the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices. Other-Than-Temporary Impairments of Fixed Maturities and Equity Securities For fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component in net realized investment gains (losses). The impairment related to all other factors is reported in other comprehensive income. For equity securities (including public common and non-redeemable preferred stock) and for fixed maturity investments the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount of the impairment is included in net realized investment gains (losses). Upon recognizing an other-than-temporary impairment, the new cost basis of the investment is the previous amortized cost basis less the other-than-temporary impairment recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value; however, for fixed maturity investments the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining expected life of the investment. Determination of Credit Loss — Fixed Maturities The Company determines the credit loss component of fixed maturity investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater than the present value of the expected cash flows, the difference is considered a credit loss and recognized in net realized investment gains (losses). For non-structured fixed maturities (U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, obligations of states, municipalities and political subdivisions, debt securities issued by foreign governments and certain corporate debt), the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. The determination of recovery value incorporates an issuer valuation assumption utilizing one or a combination of valuation methods as deemed appropriate by the Company. The Company determines the undiscounted recovery value by allocating the estimated value of the issuer to the Company’s assessment of the priority of claims. The present value of the cash flows is determined by applying the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment) and an estimated recovery time frame. Generally, that time frame for securities for which the issuer is in bankruptcy is 12 months. For securities for which the issuer is financially troubled but not in bankruptcy, that time frame is generally 24 months. Included in the present value calculation are expected principal and interest payments; however, for securities for which the issuer is classified as bankrupt or in default, the present value calculation assumes no interest payments and a single recovery amount. In estimating the recovery value, significant judgment is involved in the development of assumptions relating to a myriad of factors related to the issuer including, but not limited to, revenue, margin and earnings projections, the likely market or liquidation values of assets, potential additional debt to be incurred pre- or post-bankruptcy/restructuring, the ability to shift existing or new debt to different priority layers, the amount of restructuring/bankruptcy expenses, the size and priority of unfunded pension obligations, litigation or other contingent claims, the treatment of intercompany claims and the likely outcome with respect to inter-creditor conflicts. For structured fixed maturity securities (primarily residential and commercial mortgage-backed securities and asset-backed securities), the Company estimates the present value of the security by projecting future cash flows of the assets underlying the securitization, allocating the flows to the various tranches based on the structure of the securitization and determining the present value of the cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). The Company incorporates levels of delinquencies, defaults and severities as well as credit attributes of the remaining assets in the securitization, along with other economic data, to arrive at its best estimate of the parameters applied to the assets underlying the securitization. In order to project cash flows, the following assumptions are applied to the assets underlying the securitization: (1) voluntary prepayment rates, (2) default rates and (3) loss severity. The key assumptions made for the Prime, Alt-A and first-lien Sub-Prime mortgage-backed securities at December 31, 2016 were as follows: (at December 31, 2016) Prime Alt-A Sub-Prime Voluntary prepayment rates 0% - 35 % 4% - 15 % 3% - 12 % Percentage of remaining pool liquidated due to defaults 0% - 46 % 20% - 73 % 22% - 52 % Loss severity 30% - 65 % 42% - 90 % 75% - 110 % Real Estate Investments On at least an annual basis, the Company obtains independent appraisals for substantially all of its real estate investments. In addition, the carrying value of all real estate investments is reviewed for impairment on a quarterly basis or when events or changes in circumstances indicate that the carrying amount may not be recoverable. The review for impairment considers the valuation from the independent appraisal, when applicable, and incorporates an estimate of the undiscounted cash flows expected to result from the use and eventual disposition of the real estate property. An impairment loss is recognized if the expected future undiscounted cash flows are less than the carrying value of the real estate property. The impairment loss is the amount by which the carrying amount exceeds fair value. Other Investments Investments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships The Company reviews its investments in private equity limited partnerships, hedge funds and real estate partnerships for impairment no less frequently than quarterly and monitors the performance throughout the year through discussions with the managers/general partners. If the Company becomes aware of an impairment of a partnership’s investments at the balance Changes in Intent to Sell Temporarily Impaired Assets The Company may, from time to time, sell invested assets subsequent to the balance sheet date that it did not intend to sell at the balance sheet date. Conversely, the Company may not sell invested assets that it asserted that it intended to sell at the balance sheet date. Such changes in intent are due to events occurring subsequent to the balance sheet date. The types of events that may result in a change in intent include, but are not limited to, significant changes in the economic facts and circumstances related to the invested asset (e.g., a downgrade or upgrade from a rating agency), significant unforeseen changes in liquidity needs, or changes in tax laws or the regulatory environment. |
Accounting Policies, Securities Lending [Policy Text Block] | Securities Lending The Company has engaged in securities lending activities from which it generates net investment income by lending certain of its investments to other institutions for short periods of time. Borrowers of these securities provide collateral equal to at least 102% of the market value of the loaned securities plus accrued interest. This collateral is held by a third-party custodian, and the Company has the right to access the collateral only in the event that the institution borrowing the Company’s securities is in default under the lending agreement. Therefore, the Company does not recognize the receipt of the collateral held by the third-party custodian or the obligation to return the collateral. The loaned securities remain a recorded asset of the Company. The Company accepts only cash as collateral for securities on loan and restricts the manner in which that cash is invested. |
Accounting Policies, Reinsurance Recoverables [Policy Text Block] | Reinsurance Recoverables Amounts recoverable from reinsurers are estimated in a manner consistent with the associated claim liability. The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance recoverables. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. Amounts deemed to be uncollectible, including amounts due from known insolvent reinsurers, are written off against the allowance for estimated uncollectible reinsurance recoverables. Any subsequent collections of amounts previously written off are reported as part of claims and claim adjustment expenses. The Company evaluates and monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to minimize its exposure to significant losses from reinsurer insolvencies. |
Accounting Policies, Deferred Acquisition Costs [Policy Text Block] | Deferred Acquisition Costs Incremental direct costs of acquired, new and renewal insurance contracts, consisting of commissions (other than contingent commissions) and premium-related taxes, are capitalized and charged to expense pro rata over the contract periods in which the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income and, if not, are charged to expense. Future investment income attributable to related premiums is taken into account in measuring the recoverability of the carrying value of this asset. All other acquisition expenses are charged to operations as incurred. |
Accounting Policies, Contractholder Receivables and Payables [Policy Text Block] | Contractholder Receivables and Payables Under certain workers’ compensation insurance contracts with deductible features, the Company is obligated to pay the claimant for the full amount of the claim. The Company is subsequently reimbursed by the policyholder for the deductible amount. These amounts are included on a gross basis in the consolidated balance sheet in contractholder payables and contractholder receivables, respectively. |
Accounting Policies, Goodwill and Other Intangible Assets [Policy Text Block] | Goodwill and Other Intangible Assets The Company performs a review, on at least an annual basis, of goodwill held by the reporting units which are the Company’s three operating and reportable segments: Business Insurance; Bond & Specialty Insurance; and Personal Insurance. The Company estimates the fair value of its reporting units and compares it to their carrying value, including goodwill. If the carrying values of the reporting units were to exceed their fair value, the amount of the impairment would be calculated and goodwill adjusted accordingly. The Company uses a discounted cash flow model to estimate the fair value of its reporting units. The discounted cash flow model is an income approach to valuation that is based on a detailed cash flow analysis for deriving a current fair value of reporting units and is representative of the Company’s reporting units’ current and expected future financial performance. The discount rate assumptions reflect the Company’s assessment of the risks inherent in the projected future cash flows and the Company’s weighted-average cost of capital, and are compared against available market data for reasonableness. Other indefinite-lived intangible assets held by the Company are also reviewed for impairment on at least an annual basis. The classification of the asset as indefinite-lived is reassessed and an impairment is recognized if the carrying amount of the asset exceeds its fair value. Intangible assets that are deemed to have a finite useful life are amortized over their useful lives. The carrying amount of intangible assets with a finite useful life is regularly reviewed for indicators of impairment in value. Impairment is recognized only if the carrying amount of the intangible asset is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the fair value of the asset. As a result of the reviews performed for the years ended December 31, 2016, 2015 and 2014, the Company determined that the estimated fair value substantially exceeded the respective carrying value of its reporting units for those years and that goodwill was not impaired. The Company also determined during its reviews for each year that its other indefinite-lived intangible assets and finite-lived intangible assets were not impaired. |
Accounting Policies, Claims and Claim Adjustment Expense Reserves [Policy Text Block] | Claims and Claim Adjustment Expense Reserves Claims and claim adjustment expense reserves represent estimates for the ultimate cost of unpaid reported and unreported claims incurred and related expenses. The reserves are adjusted regularly based upon experience. Included in the claims and claim adjustment expense reserves in the consolidated balance sheet are reserves for long-term disability and annuity claim payments, primarily arising from workers’ compensation insurance and workers’ compensation excess insurance policies, that are discounted to the present value of estimated future payments. The Company performs a continuing review of its claims and claim adjustment expense reserves, including its reserving techniques and the impact of reinsurance. The reserves are also reviewed regularly by qualified actuaries employed by the Company. Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are included in the results of operations in the period in which the estimates are changed. Such changes in estimates could occur in a future period and may be material to the Company’s results of operations and financial position in such period. |
Accounting Policies, Other Liabilities [Policy Text Block] | Other Liabilities Included in other liabilities in the consolidated balance sheet is the Company’s estimate of its liability for guaranty fund and other insurance-related assessments. The liability for expected state guaranty fund and other premium-based assessments is recognized as the Company writes or becomes obligated to write or renew the premiums on which the assessments are expected to be based. The liability for loss-based assessments is recognized as the related losses are incurred. At December 31, 2016 and 2015, the Company had a liability of $242 million and $241 million, respectively, for guaranty fund and other insurance-related assessments and related recoverables of $16 million and $18 million, respectively. The liability for such assessments and the related recoverables are not discounted for the time value of money. The loss-based assessments are expected to be paid over a period ranging from one year to the life expectancy of certain workers’ compensation claimants and the recoveries are expected to occur over the same period of time. Also included in other liabilities is an accrual for policyholder dividends. Certain insurance contracts, primarily workers’ compensation, are participating whereby dividends are paid to policyholders in accordance with contract provisions. Net written premiums for participating dividend policies were approximately 1%, 2% and 1% of total net written premiums for the years ended December 31, 2016, 2015 and 2014, respectively. Policyholder dividends are accrued against earnings using best available estimates of amounts to be paid. The liability accrued for policyholder dividends totaled $62 million and $57 million at December 31, 2016 and 2015, respectively. |
Accounting Policies, Treasury Stock [Policy Text Block] | Treasury Stock The cost of common stock repurchased by the Company is reported as treasury stock and represents authorized and unissued shares of the Company under the Minnesota Business Corporation Act. |
Accounting Policies, Statutory Accounting Practices [Policy Text Block] | Statutory Accounting Practices The Company’s U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. The State of Connecticut requires insurers domiciled in Connecticut to prepare their statutory financial statements in accordance with National Association of Insurance Commissioners’ (NAIC) statutory accounting practices. Permitted statutory accounting practices are those practices that differ either from state-prescribed statutory accounting practices or NAIC statutory accounting practices. The Company does not apply any statutory accounting practices that would be considered a prescribed or permitted statutory accounting practice that differs from NAIC statutory accounting practices. The Company’s non-U.S. insurance subsidiaries file financial statements prepared in accordance with the regulatory reporting requirements of their respective local jurisdiction. |
Accounting Policies, Premiums and Unearned Premium Reserves [Policy Text Block] | Premiums and Unearned Premium Reserves Premiums are recognized as revenues pro rata over the policy period. Unearned premium reserves represent the unexpired portion of policy premiums. Accrued retrospective premiums are included in premium balances receivable. Premium balances receivable are reported net of an allowance for estimated uncollectible premium amounts. Ceded premiums are charged to income over the applicable term of the various reinsurance contracts with third party reinsurers. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers and are reported as part of other assets. |
Accounting Policies, Fee Income [Policy Text Block] | Fee Income Fee income includes servicing fees from carriers and revenues from large deductible policies and service contracts and is recognized pro rata over the contract or policy periods. |
Accounting Policies, Other Revenues [Policy Text Block] | Other Revenues Other revenues include revenues from premium installment charges, which are recognized as collected, revenues of noninsurance subsidiaries other than fee income and gains and losses on dispositions of assets and redemption of debt, and other miscellaneous revenues, including a gain recognized as a result of the settlement of a reinsurance dispute. |
Accounting Policies, Income Taxes [Policy Text Block] | Income Taxes The Company recognizes deferred income tax assets and liabilities for the expected future tax effects attributable to temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized. |
Accounting Policies, Foreign Currency Translation [Policy Text Block] | Foreign Currency Translation The Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency, and the resulting foreign exchange gains or losses are reflected in earnings. Functional currency amounts are then translated into U.S. dollars. The foreign currency remeasurement and translation are calculated using current exchange rates for items reported in the balance sheets and average exchange rates for items recorded in earnings. The change in unrealized foreign currency translation gain or loss during the year, net of tax, is a component of other comprehensive income. |
Accounting Policies, Share-Based Compensation [Policy Text Block] | Share-Based Compensation The Company has an employee stock incentive compensation plan that permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, deferred stock, stock units, performance awards and other share-based or share-denominated awards with respect to the Company’s common stock. Compensation cost is measured based on the grant-date fair value of an award , |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (table) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies disclosure | |
Key assumptions used in estimation of present value of structured fixed maturity securities [Table Text Block] | (at December 31, 2016) Prime Alt-A Sub-Prime Voluntary prepayment rates 0% - 35 % 4% - 15 % 3% - 12 % Percentage of remaining pool liquidated due to defaults 0% - 46 % 20% - 73 % 22% - 52 % Loss severity 30% - 65 % 42% - 90 % 75% - 110 % |
Segment Information (tables)
Segment Information (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information disclosure | |
Company's revenues and operating income by segment [Table Text Block] | (for the year ended Business Bond & Personal Total 2016 Premiums $ 13,855 $ 2,260 $ 8,419 $ 24,534 Net investment income 1,701 239 362 2,302 Fee income 442 — 16 458 Other revenues 168 21 63 252 Total segment revenues (1) $ 16,166 $ 2,520 $ 8,860 $ 27,546 Amortization and depreciation $ 2,783 $ 491 $ 1,530 $ 4,804 Income tax expense 656 309 192 1,157 Segment income (1) 1,982 712 517 3,211 2015 Premiums $ 13,698 $ 2,267 $ 7,909 $ 23,874 Net investment income 1,757 254 368 2,379 Fee income 445 — 15 460 Other revenues 17 22 54 93 Total segment revenues (1) $ 15,917 $ 2,543 $ 8,346 $ 26,806 Amortization and depreciation $ 2,725 $ 501 $ 1,470 $ 4,696 Income tax expense 744 283 416 1,443 Segment income (1) 2,077 683 932 3,692 2014 Premiums $ 13,515 $ 2,275 $ 7,923 $ 23,713 Net investment income 2,072 293 422 2,787 Fee income 438 — 12 450 Other revenues 34 20 91 145 Total segment revenues (1) $ 16,059 $ 2,588 $ 8,448 $ 27,095 Amortization and depreciation $ 2,714 $ 521 $ 1,503 $ 4,738 Income tax expense 795 348 369 1,512 Segment income (1) 2,297 760 841 3,898 (1) |
Net written premiums by market [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 Business Insurance: Domestic: Select Accounts $ 2,729 $ 2,716 $ 2,707 Middle Market 7,379 7,186 6,973 National Accounts 1,058 1,048 1,047 National Property and Other 1,779 1,791 1,757 Total Domestic 12,945 12,741 12,484 International 955 1,033 1,193 Total Business Insurance 13,900 13,774 13,677 Bond & Specialty Insurance: Domestic: Management Liability 1,342 1,326 1,339 Surety 757 755 764 Total Domestic 2,099 2,081 2,103 International 172 192 191 Total Bond & Specialty Insurance 2,271 2,273 2,294 Personal Insurance: Domestic: Agency: Automobile 4,103 3,534 3,260 Homeowners and Other 3,772 3,687 3,718 Total Agency 7,875 7,221 6,978 Direct-to-Consumer 309 236 187 Total Domestic 8,184 7,457 7,165 International 603 617 768 Total Personal Insurance 8,787 8,074 7,933 Total consolidated net written premiums $ 24,958 $ 24,121 $ 23,904 |
Business segment reconciliations of revenue and income, net of tax [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 3,969 $ 3,867 $ 3,711 Commercial automobile 2,010 1,922 1,900 Commercial property 1,769 1,766 1,747 General liability 1,977 1,898 1,834 Commercial multi-peril 3,148 3,133 3,071 Other 31 39 42 Total Domestic 12,904 12,625 12,305 International 951 1,073 1,210 Total Business Insurance 13,855 13,698 13,515 Bond & Specialty Insurance: Domestic: Fidelity and surety 962 954 936 General liability 946 955 963 Other 180 176 177 Total Domestic 2,088 2,085 2,076 International 172 182 199 Total Bond & Specialty Insurance 2,260 2,267 2,275 Personal Insurance: Domestic Automobile 4,013 3,512 3,316 Homeowners and Other 3,813 3,756 3,809 Total Domestic 7,826 7,268 7,125 International 593 641 798 Total Personal Insurance 8,419 7,909 7,923 Total earned premiums 24,534 23,874 23,713 Net investment income 2,302 2,379 2,787 Fee income 458 460 450 Other revenues 252 93 145 Total segment revenues 27,546 26,806 27,095 Other revenues 11 6 — Net realized investment gains 68 3 79 Total revenues $ 27,625 $ 26,815 $ 27,174 Income reconciliation, net of tax Total segment income $ 3,211 $ 3,692 $ 3,898 Interest Expense and Other (1) (244 ) (255 ) (257 ) Core income 2,967 3,437 3,641 Net realized investment gains 47 2 51 Net income $ 3,014 $ 3,439 $ 3,692 (1) |
Asset reconciliation [Table Text Block] | (at December 31, in millions) 2016 2015 Asset reconciliation: Business Insurance $ 75,730 $ 75,915 Bond & Specialty Insurance 8,726 8,820 Personal Insurance 15,426 15,065 Total assets for reportable segments 99,882 99,800 Other assets (1) 363 384 Total consolidated assets $ 100,245 $ 100,184 (1) |
Revenues of the Company's operations based on location [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 U.S. $ 25,904 $ 25,127 $ 25,103 Non-U.S.: Canada 1,154 1,202 1,474 Other Non-U.S. 567 486 597 Total Non-U.S. 1,721 1,688 2,071 Total revenues $ 27,625 $ 26,815 $ 27,174 |
Investments (tables)
Investments (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments disclosure | |
Amortized cost and fair value of investments in fixed maturities [Table Text Block] | Amortized Gross Unrealized Fair (at December 31, 2016, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,031 $ 9 $ 5 $ 2,035 Obligations of states, municipalities and political subdivisions: Local general obligation 13,955 271 182 14,044 Revenue 10,910 215 147 10,978 State general obligation 1,717 36 22 1,731 Pre-refunded 4,968 190 1 5,157 Total obligations of states, municipalities and political subdivisions 31,550 712 352 31,910 Debt securities issued by foreign governments 1,631 34 3 1,662 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,614 100 6 1,708 All other corporate bonds 22,737 508 138 23,107 Redeemable preferred stock 87 6 — 93 Total $ 59,650 $ 1,369 $ 504 $ 60,515 Amortized Gross Unrealized Fair (at December 31, 2015, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,202 $ 8 $ 16 $ 2,194 Obligations of states, municipalities and political subdivisions: Local general obligation 12,744 577 3 13,318 Revenue 9,492 472 4 9,960 State general obligation 1,978 97 2 2,073 Pre-refunded 5,813 247 — 6,060 Total obligations of states, municipalities and political subdivisions 30,027 1,393 9 31,411 Debt securities issued by foreign governments 1,829 45 1 1,873 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,863 124 6 1,981 All other corporate bonds 22,854 523 288 23,089 Redeemable preferred stock 103 7 — 110 Total $ 58,878 $ 2,100 $ 320 $ 60,658 |
Amortized cost and fair value of fixed maturities by contractual maturity [Table Text Block] | (at December 31, 2016, in millions) Amortized Fair Due in one year or less $ 5,619 $ 5,677 Due after 1 year through 5 years 16,417 16,926 Due after 5 years through 10 years 14,258 14,449 Due after 10 years 21,742 21,755 58,036 58,807 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,614 1,708 Total $ 59,650 $ 60,515 |
Cost and fair value of investments in equity securities [Table Text Block] | Gross Unrealized Fair (at December 31, 2016, in millions) Cost Gains Losses Value Public common stock $ 390 $ 216 $ 3 $ 603 Non-redeemable preferred stock 114 20 5 129 Total $ 504 $ 236 $ 8 $ 732 Gross Unrealized Fair (at December 31, 2015, in millions) Cost Gains Losses Value Public common stock $ 386 $ 164 $ 7 $ 543 Non-redeemable preferred stock 142 26 6 162 Total $ 528 $ 190 $ 13 $ 705 |
Unrealized investment losses [Table Text Block] | Less than 12 months 12 months or Total (at December 31, 2016, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,124 $ 5 $ — $ — $ 1,124 $ 5 Obligations of states, municipalities and political subdivisions 9,781 352 12 — 9,793 352 Debt securities issued by foreign governments 360 3 — — 360 3 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 528 5 43 1 571 6 All other corporate bonds 6,470 115 437 23 6,907 138 Redeemable preferred stock — — — — — — Total fixed maturities 18,263 480 492 24 18,755 504 Equity securities Public common stock 45 2 10 1 55 3 Non-redeemable preferred stock 2 — 59 5 61 5 Total equity securities 47 2 69 6 116 8 Total $ 18,310 $ 482 $ 561 $ 30 $ 18,871 $ 512 Less than 12 months 12 months or Total (at December 31, 2015, in millions) Fair Gross Fair Gross Fair Gross Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 1,820 $ 15 $ 28 $ 1 $ 1,848 $ 16 Obligations of states, municipalities and political subdivisions 928 7 142 2 1,070 9 Debt securities issued by foreign governments 172 1 — — 172 1 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 473 4 57 2 530 6 All other corporate bonds 7,725 197 710 91 8,435 288 Redeemable preferred stock 8 — — — 8 — Total fixed maturities 11,126 224 937 96 12,063 320 Equity securities Public common stock 48 6 33 1 81 7 Non-redeemable preferred stock 47 3 38 3 85 6 Total equity securities 95 9 71 4 166 13 Total $ 11,221 $ 233 $ 1,008 $ 100 $ 12,229 $ 333 |
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 (in millions) 3 Months Greater Than 3 Greater Than 6 Greater Than Total Fixed maturities Mortgage-backed securities $ — $ — $ — $ — $ — Other 1 — — 2 3 Total fixed maturities 1 — — 2 3 Equity securities 1 — — — 1 Total $ 2 $ — $ — $ 2 $ 4 |
Impairment charges included in net realized investment gains [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 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 All other corporate bonds 15 13 15 Redeemable preferred stock — — — Total fixed maturities 15 13 16 Equity securities Public common stock 9 37 9 Non-redeemable preferred stock 3 — — Total equity securities 12 37 9 Other investments 2 2 1 Total $ 29 $ 52 $ 26 |
Cumulative amount of and the changes during the year 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 (loss) [Table Text Block] | Year ended December 31, 2016 (in millions) Cumulative Additions for Additions for Reductions Adjustments Cumulative Fixed maturities Mortgage-backed securities, collateralized mortgage obligations and pass-through securities $ 32 $ — $ — $ — $ (1 ) $ 31 All other corporate bonds 51 13 — (7 ) (3 ) 54 Total fixed maturities $ 83 $ 13 $ — $ (7 ) $ (4 ) $ 85 Year ended December 31, 2015 (in millions) Cumulative Additions for Additions for Reductions Adjustments Cumulative Fixed maturities Mortgage-backed securities, collateralized mortgage obligations and pass-through securities $ 40 $ — $ — $ (6 ) $ (2 ) $ 32 All other corporate bonds 59 2 — (4 ) (6 ) 51 Total fixed maturities $ 99 $ 2 $ — $ (10 ) $ (8 ) $ 83 |
Net investment income [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 Gross investment income Fixed maturities $ 1,981 $ 2,091 $ 2,244 Equity securities 37 39 40 Short-term securities 29 12 9 Real estate investments 51 48 44 Other investments 242 230 489 Gross investment income 2,340 2,420 2,826 Investment expenses 38 41 39 Net investment income $ 2,302 $ 2,379 $ 2,787 |
Changes in net unrealized investment gains [Table Text Block] | (at and for the year ended December 31, in millions) 2016 2015 2014 Changes in net unrealized investment gains Fixed maturities $ (915 ) $ (893 ) $ 913 Equity securities 51 (143 ) 63 Other investments 2 2 2 Change in net pre-tax unrealized gains on investment securities (862 ) (1,034 ) 978 Related tax expense (benefit) (303 ) (357 ) 334 Change in net unrealized gains on investment securities (559 ) (677 ) 644 Balance, beginning of year 1,289 1,966 1,322 Balance, end of year $ 730 $ 1,289 $ 1,966 |
Fair Value Measurements (tables
Fair Value Measurements (tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016, 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 $ 2,035 $ 2,035 $ — $ — Obligations of states, municipalities and political subdivisions 31,910 — 31,898 12 Debt securities issued by foreign governments 1,662 — 1,662 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,708 — 1,704 4 All other corporate bonds 23,107 — 22,939 168 Redeemable preferred stock 93 3 90 — Total fixed maturities 60,515 2,038 58,293 184 Equity securities Public common stock 603 603 — — Non-redeemable preferred stock 129 51 78 — Total equity securities 732 654 78 — Other investments 53 17 — 36 Total $ 61,300 $ 2,709 $ 58,371 $ 220 (at December 31, 2015, 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 $ 2,194 $ 2,194 $ — $ — Obligations of states, municipalities and political subdivisions 31,411 — 31,398 13 Debt securities issued by foreign governments 1,873 — 1,873 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,981 — 1,957 24 All other corporate bonds 23,089 — 22,915 174 Redeemable preferred stock 110 3 100 7 Total fixed maturities 60,658 2,197 58,243 218 Equity securities Public common stock 543 543 — — Non-redeemable preferred stock 162 55 107 — Total equity securities 705 598 107 — Other investments 56 18 — 38 Total $ 61,419 $ 2,813 $ 58,350 $ 256 |
Changes in the Level 3 fair value category [Table Text Block] | (in millions) Fixed Other Total Balance at December 31, 2015 $ 218 $ 38 $ 256 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) 3 5 8 Reported in increases in other comprehensive income 2 3 5 Purchases, sales and settlements/maturities: Purchases 123 — 123 Sales (19 ) (10 ) (29 ) Settlements/maturities (66 ) — (66 ) Gross transfers into Level 3 19 — 19 Gross transfers out of Level 3 (96 ) — (96 ) Balance at December 31, 2016 $ 184 $ 36 $ 220 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 $ — $ (2 ) $ (2 ) (1) (in millions) Fixed Other Total Balance at December 31, 2014 $ 232 $ 36 $ 268 Total realized and unrealized investment gains (losses): Reported in net realized investment gains (1) 1 2 3 Reported in increases (decreases) in other comprehensive income (4 ) 1 (3 ) Purchases, sales and settlements/maturities: Purchases 202 1 203 Sales (7 ) (2 ) (9 ) Settlements/maturities (41 ) — (41 ) Gross transfers into Level 3 21 — 21 Gross transfers out of Level 3 (186 ) — (186 ) Balance at December 31, 2015 $ 218 $ 38 $ 256 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 ) $ (1 ) (1) |
Carrying value and fair value of financial instruments disclosed, but not carried, at fair value and the level within the fair value hierarchy at which such financial instruments are categorized [Table Text Block] | (at December 31, 2016, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 4,865 $ 4,865 $ 1,223 $ 3,607 $ 35 Financial liabilities: Debt $ 6,337 $ 7,262 $ — $ 7,262 $ — Commercial paper 100 100 — 100 — (at December 31, 2015, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 4,671 $ 4,671 $ 1,685 $ 2,958 $ 28 Financial liabilities: Debt $ 6,244 $ 7,180 $ — $ 7,180 $ — Commercial paper 100 100 — 100 — |
Reinsurance (tables)
Reinsurance (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance disclosure | |
Summary of reinsurance financial data [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 Written premiums Direct $ 25,567 $ 24,939 $ 24,844 Assumed 928 843 788 Ceded (1,537 ) (1,661 ) (1,728 ) Total net written premiums $ 24,958 $ 24,121 $ 23,904 Earned premiums Direct $ 25,262 $ 24,740 $ 24,810 Assumed 875 814 743 Ceded (1,603 ) (1,680 ) (1,840 ) Total net earned premiums $ 24,534 $ 23,874 $ 23,713 Percentage of assumed earned premiums to net earned premiums 3.6 % 3.4 % 3.1 % Ceded claims and claim adjustment expenses incurred $ 762 $ 1,034 $ 953 |
Reinsurance recoverables [Table Text Block] | (at December 31, in millions) 2016 2015 Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses $ 3,181 $ 3,848 Allowance for uncollectible reinsurance (116 ) (157 ) Net reinsurance recoverables 3,065 3,691 Mandatory pools and associations 2,054 2,015 Structured settlements 3,168 3,204 Total reinsurance recoverables $ 8,287 $ 8,910 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Other Intangible Assets disclosure | |
Goodwill by segment [Table Text Block] | (at December 31, in millions) 2016 2015 Business Insurance $ 2,227 $ 2,225 Bond & Specialty Insurance 549 549 Personal Insurance 778 773 Other 26 26 Total $ 3,580 $ 3,573 |
Other intangible assets subject to amortization [Table Text Block] | (at December 31, 2016, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 159 $ 51 Not subject to amortization 217 — 217 Total $ 427 $ 159 $ 268 (at December 31, 2015, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 148 $ 62 Not subject to amortization 217 — 217 Total $ 427 $ 148 $ 279 (1) |
Other intangible assets not subject to amortization [Table Text Block] | (at December 31, 2016, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 159 $ 51 Not subject to amortization 217 — 217 Total $ 427 $ 159 $ 268 (at December 31, 2015, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 148 $ 62 Not subject to amortization 217 — 217 Total $ 427 $ 148 $ 279 (1) |
Insurance Claim Reserves (table
Insurance Claim Reserves (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Claim Reserves disclosure | |
Claims and claim adjustment expense reserves [Table Text Block] | (at December 31, in millions) 2016 2015 Property-casualty $ 47,929 $ 48,272 Accident and health 20 23 Total $ 47,949 $ 48,295 |
Reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses [Table Text Block] | (at and for the year ended December 31, in millions) 2016 2015 2014 Claims and claim adjustment expense reserves at beginning of year $ 48,272 $ 49,824 $ 50,865 Less reinsurance recoverables on unpaid losses 8,449 8,788 9,280 Net reserves at beginning of year 39,823 41,036 41,585 Estimated claims and claim adjustment expenses for claims arising in the current year 15,675 14,471 14,688 Estimated decrease in claims and claim adjustment expenses for claims arising in prior years (680 ) (817 ) (885 ) Total increases 14,995 13,654 13,803 Claims and claim adjustment expense payments for claims arising in: Current year 6,220 5,725 5,895 Prior years 8,576 8,749 8,171 Total payments 14,796 14,474 14,066 Acquisition (1) — 2 — Unrealized foreign exchange gain (74 ) (395 ) (286 ) Net reserves at end of year 39,948 39,823 41,036 Plus reinsurance recoverables on unpaid losses 7,981 8,449 8,788 Claims and claim adjustment expense reserves at end of year $ 47,929 $ 48,272 $ 49,824 (1) |
Summary of claims and claim adjustment expense reserves, including certain components, for the Company's major product lines by reporting segment [Table Text Block] | At December 31, 2016 (in millions) Net Undiscounted Discount Subtotal: Reinsurance Claims and Claim Business Insurance General liability $ 7,034 $ (168 ) $ 6,866 $ 712 $ 7,578 Commercial property 866 — 866 194 1,060 Commercial multi-peril 3,414 — 3,414 81 3,495 Commercial automobile 2,270 — 2,270 256 2,526 Workers’ compensation (1) 15,439 (832 ) 14,607 729 15,336 Bond & Specialty Insurance General liability 2,042 — 2,042 82 2,124 Fidelity and surety 450 — 450 17 467 Personal Insurance Automobile 2,277 — 2,277 465 2,742 Homeowners (excluding Other) 742 — 742 2 744 International - Canada 776 — 776 20 796 Subtotal — claims and allocated claim adjustment expenses for the products presented in the development tables below 35,310 (1,000 ) 34,310 2,558 36,868 Other insurance contracts (2) 3,661 (3 ) 3,658 2,195 5,853 Unallocated loss adjustment expense reserves 1,936 — 1,936 40 1,976 Structured settlements (3) — — — 3,168 3,168 Other 44 — 44 20 64 Total property-casualty 40,951 (1,003 ) 39,948 7,981 47,929 Accident and health — — — 20 20 Total $ 40,951 $ (1,003 ) $ 39,948 $ 8,001 $ 47,949 (1) (2) (3) |
Allocated claim adjustment expense, by accident year, on a historical basis for incurred and paid claims on an undiscounted, net of reinsurance basis [Table Text Block] | Business Insurance General Liability ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,136 $ 1,162 $ 1,087 $ 1,089 $ 968 $ 919 $ 888 $ 883 $ 865 $ 824 $ 78 23,840 2008 1,143 1,209 1,222 1,079 1,041 994 946 931 935 88 25,385 2009 1,060 1,071 1,028 960 869 837 809 796 95 25,457 2010 1,028 1,031 1,021 959 927 912 918 108 27,678 2011 1,004 1,074 1,065 998 972 935 146 27,210 2012 989 985 935 913 892 184 24,384 2013 965 975 958 940 256 21,836 2014 976 989 983 438 20,926 2015 998 956 592 18,771 2016 1,075 908 13,810 Total $ 9,254 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 32 $ 134 $ 316 $ 467 $ 549 $ 632 $ 682 $ 697 $ 713 $ 726 2008 35 154 359 497 615 694 734 759 799 2009 35 167 314 446 543 613 643 667 2010 35 139 324 487 629 702 756 Liability for Claims 2011 47 187 355 539 660 725 And Allocated Claim 2012 32 150 295 489 589 Adjustment Expenses, 2013 35 175 363 498 Net of Reinsurance 2014 37 163 321 2015 36 137 2007 - Before 2016 35 2016 2007 Total $ 5,253 $ 4,001 $ 3,033 Total net liability $ 7,034 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 3.9 % 13.3 % 19.1 % 17.6 % 12.4 % 8.4 % 5.0 % 2.5 % 3.1 % 1.6 % Commercial Property ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 1,054 $ 988 $ 924 $ 889 $ 895 $ 13 28,183 2013 789 755 737 731 10 22,141 2014 936 860 836 15 21,490 2015 786 750 28 19,859 2016 896 131 19,327 Total $ 4,108 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 453 $ 770 $ 845 $ 865 $ 872 Adjustment Expenses, 2013 389 610 683 703 Net of Reinsurance 2014 464 710 775 2015 376 615 2012 - Before 2016 441 2016 2012 Total $ 3,406 $ 702 $ 164 Total net liability $ 866 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 51.7 % 31.8 % 8.7 % 2.5 % 0.8 % Commercial Multi-Peril ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,490 $ 1,430 $ 1,364 $ 1,402 $ 1,398 $ 1,375 $ 1,373 $ 1,369 $ 1,376 $ 1,369 $ 51 96,767 2008 1,725 1,674 1,683 1,688 1,674 1,684 1,674 1,688 1,681 47 108,382 2009 1,484 1,506 1,501 1,498 1,511 1,514 1,514 1,509 42 103,198 2010 1,711 1,826 1,832 1,861 1,895 1,892 1,898 51 111,586 2011 2,235 2,244 2,269 2,286 2,296 2,287 66 125,358 2012 1,885 1,883 1,903 1,888 1,888 88 104,419 2013 1,615 1,623 1,620 1,609 122 82,936 2014 1,663 1,627 1,625 193 76,833 2015 1,568 1,625 354 68,278 2016 1,662 658 56,471 Total $ 17,153 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 498 $ 824 $ 982 $ 1,110 $ 1,208 $ 1,256 $ 1,278 $ 1,296 $ 1,307 $ 1,312 2008 712 1,103 1,264 1,396 1,490 1,551 1,581 1,602 1,617 2009 603 958 1,121 1,264 1,360 1,408 1,436 1,449 2010 709 1,180 1,395 1,579 1,698 1,763 1,798 Liability for Claims 2011 1,060 1,573 1,803 1,979 2,088 2,156 And Allocated Claim 2012 795 1,246 1,424 1,590 1,699 Adjustment Expenses, 2013 644 987 1,167 1,304 Net of Reinsurance 2014 628 956 1,154 2015 595 970 2007 - Before 2016 585 2016 2007 Total $ 14,044 $ 3,109 $ 305 Total net liability $ 3,414 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 39.5 % 22.9 % 10.8 % 8.8 % 6.0 % 3.3 % 1.8 % 1.1 % 0.9 % 0.4 % Commercial Automobile ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 1,294 $ 1,350 $ 1,327 $ 1,325 $ 1,337 $ 35 214,780 2013 1,235 1,236 1,240 1,245 67 197,041 2014 1,165 1,166 1,168 131 184,067 2015 1,198 1,215 246 179,963 2016 1,290 516 173,790 Total $ 6,255 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 467 $ 753 $ 960 $ 1,134 $ 1,235 Adjustment Expenses, 2013 435 675 884 1,039 Net of Reinsurance 2014 397 618 821 2015 409 658 2012 - Before 2016 416 2016 2012 Total $ 4,169 $ 2,086 $ 184 Total net liability $ 2,270 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 34.0 % 20.0 % 16.6 % 12.7 % 7.6 % Workers’ Compensation ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,554 $ 1,519 $ 1,484 $ 1,448 $ 1,390 $ 1,373 $ 1,358 $ 1,340 $ 1,328 $ 1,341 $ 217 103,064 2008 1,714 1,745 1,734 1,683 1,639 1,634 1,621 1,617 1,617 237 107,565 2009 1,799 1,778 1,746 1,753 1,753 1,766 1,775 1,750 272 104,229 2010 1,886 2,042 2,035 2,056 2,049 2,052 2,055 354 116,837 2011 2,284 2,303 2,347 2,350 2,379 2,385 430 135,061 2012 2,447 2,456 2,457 2,456 2,445 519 133,417 2013 2,553 2,545 2,540 2,506 651 128,111 2014 2,554 2,553 2,547 839 123,110 2015 2,644 2,585 1,142 120,681 2016 2,768 1,651 108,357 Total $ 21,999 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 216 $ 450 $ 589 $ 683 $ 747 $ 802 $ 845 $ 880 $ 910 $ 936 2008 274 571 752 875 961 1,036 1,088 1,130 1,162 2009 288 623 828 961 1,065 1,137 1,193 1,235 2010 341 750 978 1,133 1,246 1,321 1,385 Liability for Claims 2011 420 911 1,185 1,365 1,487 1,583 And Allocated Claim 2012 443 940 1,217 1,394 1,536 Adjustment Expenses, 2013 458 954 1,237 1,413 Net of Reinsurance 2014 455 944 1,224 2015 430 893 2007 - Before 2016 421 2016 2007 Total $ 11,788 $ 10,211 $ 5,228 Total net liability $ 15,439 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 17.0 % 19.2 % 11.2 % 7.4 % 5.4 % 4.1 % 3.2 % 2.5 % 2.1 % 1.9 % Bond & Specialty Insurance General Liability ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 584 $ 571 $ 638 $ 582 $ 551 $ 511 $ 479 $ 467 $ 462 $ 454 $ 4 11,018 2008 579 769 743 697 716 712 672 643 631 24 6,463 2009 592 624 665 686 680 660 655 641 24 6,287 2010 571 612 679 679 661 668 653 18 5,655 2011 565 596 639 632 601 545 34 5,191 2012 538 591 614 605 601 137 4,824 2013 510 565 606 630 204 4,371 2014 549 571 563 232 4,182 2015 528 524 272 3,814 2016 512 405 2,676 Total $ 5,754 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 35 $ 134 $ 229 $ 303 $ 357 $ 373 $ 393 $ 400 $ 410 $ 415 2008 47 157 281 387 471 529 562 579 590 2009 36 167 310 390 460 497 563 592 2010 33 152 291 396 482 565 597 Liability for Claims 2011 33 143 249 324 414 447 And Allocated Claim 2012 38 160 255 342 383 Adjustment Expenses, 2013 34 154 252 352 Net of Reinsurance 2014 38 150 239 2015 38 141 2007 - Before 2016 30 2016 2007 Total $ 3,786 $ 1,968 $ 74 Total net liability $ 2,042 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 6.3 % 19.7 % 18.8 % 15.1 % 12.1 % 7.5 % 6.2 % 3.0 % 1.9 % 1.1 % Fidelity and Surety ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 255 $ 262 $ 249 $ 175 $ 140 $ 9 1,148 2013 240 246 199 146 6 1,006 2014 223 212 165 32 992 2015 217 191 79 768 2016 226 128 595 Total $ 868 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 42 $ 108 $ 124 $ 110 $ 111 Adjustment Expenses, 2013 37 113 128 131 Net of Reinsurance 2014 58 96 111 2015 32 75 2012 - Before 2016 54 2016 2012 Total $ 482 $ 386 $ 64 Total net liability $ 450 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 26.1 % 36.2 % 10.1 % (3.6 )% (1) 0.8 % (1) Personal Insurance Automobile ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 2,417 $ 2,454 $ 2,448 $ 2,432 $ 2,428 $ 15 793,669 2013 2,108 2,095 2,049 2,044 36 694,650 2014 2,014 1,994 1,981 75 669,990 2015 2,186 2,244 224 755,762 2016 2,779 646 839,962 Total $ 11,476 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 1,503 $ 1,983 $ 2,189 $ 2,311 $ 2,376 Adjustment Expenses, 2013 1,251 1,628 1,814 1,935 Net of Reinsurance 2014 1,193 1,564 1,763 2015 1,319 1,768 2012 - Before 2016 1,610 2016 2012 Total $ 9,452 $ 2,024 $ 253 Total net liability $ 2,277 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 60.0 % 19.2 % 9.2 % 5.5 % 2.7 % Homeowners (excluding Other) ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 2,136 $ 2,056 $ 2,029 $ 2,018 $ 2,019 $ 1 259,006 2013 1,488 1,397 1,365 1,375 4 149,373 2014 1,515 1,450 1,453 9 151,517 2015 1,438 1,454 28 144,367 2016 1,556 307 129,630 Total $ 7,857 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 1,508 $ 1,901 $ 1,964 $ 1,993 $ 2,008 Adjustment Expenses, 2013 994 1,269 1,317 1,344 Net of Reinsurance 2014 1,053 1,338 1,402 2015 994 1,333 2012 - Before 2016 1,049 2016 2012 Total $ 7,136 $ 721 $ 21 Total net liability $ 742 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 71.1 % 20.6 % 3.7 % 1.7 % 0.7 % International - Canada ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 372 $ 365 $ 361 $ 359 $ 369 $ 371 $ 377 $ 368 $ 364 $ 362 $ 2 51,611 2008 400 404 393 394 399 405 399 395 396 1 56,506 2009 460 448 457 463 471 463 455 456 8 57,934 2010 469 471 481 495 484 476 471 14 57,976 2011 443 422 430 426 418 412 18 57,704 2012 419 398 400 384 383 37 53,046 2013 467 461 453 441 39 56,071 2014 413 428 429 50 53,734 2015 348 347 58 46,093 2016 349 34 44,337 Total $ 4,046 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 153 $ 221 $ 250 $ 273 $ 299 $ 320 $ 337 $ 345 $ 350 $ 354 2008 171 262 294 317 339 360 374 381 385 2009 192 287 327 355 384 409 425 436 2010 185 282 318 356 385 415 432 Liability for Claims 2011 170 240 270 303 337 358 And Allocated Claim 2012 160 223 252 278 305 Adjustment Expenses, 2013 187 262 293 324 Net of Reinsurance 2014 183 256 291 2015 156 218 2007 - Before 2016 203 2016 2007 Total $ 3,306 $ 740 $ 36 Total net liability $ 776 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 43.8 % 18.7 % 7.8 % 6.9 % 6.8 % 5.6 % 3.8 % 2.1 % 1.2 % 1.1 % The incurred and paid amounts have been translated from the local currency to U.S. dollars using the December 31, 2016 spot rate for all years presented in the table above in order to isolate changes in foreign exchange rates from loss development. |
Historical average annual percentage payout of incurred claims by age of accident year [Table Text Block] | Business Insurance General Liability ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,136 $ 1,162 $ 1,087 $ 1,089 $ 968 $ 919 $ 888 $ 883 $ 865 $ 824 $ 78 23,840 2008 1,143 1,209 1,222 1,079 1,041 994 946 931 935 88 25,385 2009 1,060 1,071 1,028 960 869 837 809 796 95 25,457 2010 1,028 1,031 1,021 959 927 912 918 108 27,678 2011 1,004 1,074 1,065 998 972 935 146 27,210 2012 989 985 935 913 892 184 24,384 2013 965 975 958 940 256 21,836 2014 976 989 983 438 20,926 2015 998 956 592 18,771 2016 1,075 908 13,810 Total $ 9,254 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 32 $ 134 $ 316 $ 467 $ 549 $ 632 $ 682 $ 697 $ 713 $ 726 2008 35 154 359 497 615 694 734 759 799 2009 35 167 314 446 543 613 643 667 2010 35 139 324 487 629 702 756 Liability for Claims 2011 47 187 355 539 660 725 And Allocated Claim 2012 32 150 295 489 589 Adjustment Expenses, 2013 35 175 363 498 Net of Reinsurance 2014 37 163 321 2015 36 137 2007 - Before 2016 35 2016 2007 Total $ 5,253 $ 4,001 $ 3,033 Total net liability $ 7,034 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 3.9 % 13.3 % 19.1 % 17.6 % 12.4 % 8.4 % 5.0 % 2.5 % 3.1 % 1.6 % Commercial Property ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 1,054 $ 988 $ 924 $ 889 $ 895 $ 13 28,183 2013 789 755 737 731 10 22,141 2014 936 860 836 15 21,490 2015 786 750 28 19,859 2016 896 131 19,327 Total $ 4,108 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 453 $ 770 $ 845 $ 865 $ 872 Adjustment Expenses, 2013 389 610 683 703 Net of Reinsurance 2014 464 710 775 2015 376 615 2012 - Before 2016 441 2016 2012 Total $ 3,406 $ 702 $ 164 Total net liability $ 866 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 51.7 % 31.8 % 8.7 % 2.5 % 0.8 % Commercial Multi-Peril ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,490 $ 1,430 $ 1,364 $ 1,402 $ 1,398 $ 1,375 $ 1,373 $ 1,369 $ 1,376 $ 1,369 $ 51 96,767 2008 1,725 1,674 1,683 1,688 1,674 1,684 1,674 1,688 1,681 47 108,382 2009 1,484 1,506 1,501 1,498 1,511 1,514 1,514 1,509 42 103,198 2010 1,711 1,826 1,832 1,861 1,895 1,892 1,898 51 111,586 2011 2,235 2,244 2,269 2,286 2,296 2,287 66 125,358 2012 1,885 1,883 1,903 1,888 1,888 88 104,419 2013 1,615 1,623 1,620 1,609 122 82,936 2014 1,663 1,627 1,625 193 76,833 2015 1,568 1,625 354 68,278 2016 1,662 658 56,471 Total $ 17,153 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 498 $ 824 $ 982 $ 1,110 $ 1,208 $ 1,256 $ 1,278 $ 1,296 $ 1,307 $ 1,312 2008 712 1,103 1,264 1,396 1,490 1,551 1,581 1,602 1,617 2009 603 958 1,121 1,264 1,360 1,408 1,436 1,449 2010 709 1,180 1,395 1,579 1,698 1,763 1,798 Liability for Claims 2011 1,060 1,573 1,803 1,979 2,088 2,156 And Allocated Claim 2012 795 1,246 1,424 1,590 1,699 Adjustment Expenses, 2013 644 987 1,167 1,304 Net of Reinsurance 2014 628 956 1,154 2015 595 970 2007 - Before 2016 585 2016 2007 Total $ 14,044 $ 3,109 $ 305 Total net liability $ 3,414 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 39.5 % 22.9 % 10.8 % 8.8 % 6.0 % 3.3 % 1.8 % 1.1 % 0.9 % 0.4 % Commercial Automobile ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 1,294 $ 1,350 $ 1,327 $ 1,325 $ 1,337 $ 35 214,780 2013 1,235 1,236 1,240 1,245 67 197,041 2014 1,165 1,166 1,168 131 184,067 2015 1,198 1,215 246 179,963 2016 1,290 516 173,790 Total $ 6,255 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 467 $ 753 $ 960 $ 1,134 $ 1,235 Adjustment Expenses, 2013 435 675 884 1,039 Net of Reinsurance 2014 397 618 821 2015 409 658 2012 - Before 2016 416 2016 2012 Total $ 4,169 $ 2,086 $ 184 Total net liability $ 2,270 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 34.0 % 20.0 % 16.6 % 12.7 % 7.6 % Workers’ Compensation ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 1,554 $ 1,519 $ 1,484 $ 1,448 $ 1,390 $ 1,373 $ 1,358 $ 1,340 $ 1,328 $ 1,341 $ 217 103,064 2008 1,714 1,745 1,734 1,683 1,639 1,634 1,621 1,617 1,617 237 107,565 2009 1,799 1,778 1,746 1,753 1,753 1,766 1,775 1,750 272 104,229 2010 1,886 2,042 2,035 2,056 2,049 2,052 2,055 354 116,837 2011 2,284 2,303 2,347 2,350 2,379 2,385 430 135,061 2012 2,447 2,456 2,457 2,456 2,445 519 133,417 2013 2,553 2,545 2,540 2,506 651 128,111 2014 2,554 2,553 2,547 839 123,110 2015 2,644 2,585 1,142 120,681 2016 2,768 1,651 108,357 Total $ 21,999 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 216 $ 450 $ 589 $ 683 $ 747 $ 802 $ 845 $ 880 $ 910 $ 936 2008 274 571 752 875 961 1,036 1,088 1,130 1,162 2009 288 623 828 961 1,065 1,137 1,193 1,235 2010 341 750 978 1,133 1,246 1,321 1,385 Liability for Claims 2011 420 911 1,185 1,365 1,487 1,583 And Allocated Claim 2012 443 940 1,217 1,394 1,536 Adjustment Expenses, 2013 458 954 1,237 1,413 Net of Reinsurance 2014 455 944 1,224 2015 430 893 2007 - Before 2016 421 2016 2007 Total $ 11,788 $ 10,211 $ 5,228 Total net liability $ 15,439 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 17.0 % 19.2 % 11.2 % 7.4 % 5.4 % 4.1 % 3.2 % 2.5 % 2.1 % 1.9 % Bond & Specialty Insurance General Liability ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 584 $ 571 $ 638 $ 582 $ 551 $ 511 $ 479 $ 467 $ 462 $ 454 $ 4 11,018 2008 579 769 743 697 716 712 672 643 631 24 6,463 2009 592 624 665 686 680 660 655 641 24 6,287 2010 571 612 679 679 661 668 653 18 5,655 2011 565 596 639 632 601 545 34 5,191 2012 538 591 614 605 601 137 4,824 2013 510 565 606 630 204 4,371 2014 549 571 563 232 4,182 2015 528 524 272 3,814 2016 512 405 2,676 Total $ 5,754 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 35 $ 134 $ 229 $ 303 $ 357 $ 373 $ 393 $ 400 $ 410 $ 415 2008 47 157 281 387 471 529 562 579 590 2009 36 167 310 390 460 497 563 592 2010 33 152 291 396 482 565 597 Liability for Claims 2011 33 143 249 324 414 447 And Allocated Claim 2012 38 160 255 342 383 Adjustment Expenses, 2013 34 154 252 352 Net of Reinsurance 2014 38 150 239 2015 38 141 2007 - Before 2016 30 2016 2007 Total $ 3,786 $ 1,968 $ 74 Total net liability $ 2,042 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 6.3 % 19.7 % 18.8 % 15.1 % 12.1 % 7.5 % 6.2 % 3.0 % 1.9 % 1.1 % Fidelity and Surety ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 255 $ 262 $ 249 $ 175 $ 140 $ 9 1,148 2013 240 246 199 146 6 1,006 2014 223 212 165 32 992 2015 217 191 79 768 2016 226 128 595 Total $ 868 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 42 $ 108 $ 124 $ 110 $ 111 Adjustment Expenses, 2013 37 113 128 131 Net of Reinsurance 2014 58 96 111 2015 32 75 2012 - Before 2016 54 2016 2012 Total $ 482 $ 386 $ 64 Total net liability $ 450 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 26.1 % 36.2 % 10.1 % (3.6 )% (1) 0.8 % (1) Personal Insurance Automobile ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 2,417 $ 2,454 $ 2,448 $ 2,432 $ 2,428 $ 15 793,669 2013 2,108 2,095 2,049 2,044 36 694,650 2014 2,014 1,994 1,981 75 669,990 2015 2,186 2,244 224 755,762 2016 2,779 646 839,962 Total $ 11,476 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 1,503 $ 1,983 $ 2,189 $ 2,311 $ 2,376 Adjustment Expenses, 2013 1,251 1,628 1,814 1,935 Net of Reinsurance 2014 1,193 1,564 1,763 2015 1,319 1,768 2012 - Before 2016 1,610 2016 2012 Total $ 9,452 $ 2,024 $ 253 Total net liability $ 2,277 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 60.0 % 19.2 % 9.2 % 5.5 % 2.7 % Homeowners (excluding Other) ( dollars in millions For the Years Ended December 31, 2012 2013 2014 2015 2016 IBNR Cumulative Incurred Claims and Allocated Claims Adjustment Reserves Number of Accident Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2012 $ 2,136 $ 2,056 $ 2,029 $ 2,018 $ 2,019 $ 1 259,006 2013 1,488 1,397 1,365 1,375 4 149,373 2014 1,515 1,450 1,453 9 151,517 2015 1,438 1,454 28 144,367 2016 1,556 307 129,630 Total $ 7,857 Cumulative Paid Claims and Allocated Claim Accident Adjustment Expenses, Net of Reinsurance Year Unaudited Liability for Claims And Allocated Claim 2012 $ 1,508 $ 1,901 $ 1,964 $ 1,993 $ 2,008 Adjustment Expenses, 2013 994 1,269 1,317 1,344 Net of Reinsurance 2014 1,053 1,338 1,402 2015 994 1,333 2012 - Before 2016 1,049 2016 2012 Total $ 7,136 $ 721 $ 21 Total net liability $ 742 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 71.1 % 20.6 % 3.7 % 1.7 % 0.7 % International - Canada ( dollars in millions For the Years Ended December 31, IBNR Cumulative 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reserves Number of Accident Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Dec. 31, Reported Year Unaudited 2016 Claims 2007 $ 372 $ 365 $ 361 $ 359 $ 369 $ 371 $ 377 $ 368 $ 364 $ 362 $ 2 51,611 2008 400 404 393 394 399 405 399 395 396 1 56,506 2009 460 448 457 463 471 463 455 456 8 57,934 2010 469 471 481 495 484 476 471 14 57,976 2011 443 422 430 426 418 412 18 57,704 2012 419 398 400 384 383 37 53,046 2013 467 461 453 441 39 56,071 2014 413 428 429 50 53,734 2015 348 347 58 46,093 2016 349 34 44,337 Total $ 4,046 Accident Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year Unaudited 2007 $ 153 $ 221 $ 250 $ 273 $ 299 $ 320 $ 337 $ 345 $ 350 $ 354 2008 171 262 294 317 339 360 374 381 385 2009 192 287 327 355 384 409 425 436 2010 185 282 318 356 385 415 432 Liability for Claims 2011 170 240 270 303 337 358 And Allocated Claim 2012 160 223 252 278 305 Adjustment Expenses, 2013 187 262 293 324 Net of Reinsurance 2014 183 256 291 2015 156 218 2007 - Before 2016 203 2016 2007 Total $ 3,306 $ 740 $ 36 Total net liability $ 776 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 43.8 % 18.7 % 7.8 % 6.9 % 6.8 % 5.6 % 3.8 % 2.1 % 1.2 % 1.1 % The incurred and paid amounts have been translated from the local currency to U.S. dollars using the December 31, 2016 spot rate for all years presented in the table above in order to isolate changes in foreign exchange rates from loss development. |
Debt (tables)
Debt (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt disclosure | |
Debt outstanding [Table Text Block] | (at December 31, in millions) 2016 2015 Short-term: Commercial paper $ 100 $ 100 5.75% Senior notes due December 15, 2017 450 — 6.25% Senior notes due June 20, 2016 — 400 Total short-term debt 550 500 Long-term: 5.75% Senior notes due December 15, 2017 — 450 5.80% Senior notes due May 15, 2018 500 500 5.90% Senior notes due June 2, 2019 500 500 3.90% Senior notes due November 1, 2020 500 500 7.75% Senior notes due April 15, 2026 200 200 7.625% Junior subordinated debentures due December 15, 2027 125 125 6.375% Senior notes due March 15, 2033 500 500 6.75% Senior notes due June 20, 2036 400 400 6.25% Senior notes due June 15, 2037 800 800 5.35% Senior notes due November 1, 2040 750 750 4.60% Senior notes due August 1, 2043 500 500 4.30% Senior notes due August 25, 2045 400 400 8.50% Junior subordinated debentures due December 15, 2045 56 56 3.75% Senior notes dues May 15, 2046 500 — 8.312% Junior subordinated debentures due July 1, 2046 73 73 6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 107 107 Total long-term debt 5,911 5,861 Total debt principal 6,461 6,361 Unamortized fair value adjustment 47 49 Unamortized debt issuance costs (71 ) (66 ) Total debt $ 6,437 $ 6,344 |
Merger-related unamortized fair value adjustments and the related effective interest rate [Table Text Block] | Unamortized Fair Value Effective (in millions) Issue Rate Maturity Date 2016 2015 to Maturity Subordinated debentures 7.625 % Dec. 2027 $ 14 $ 15 6.147 % 8.500 % Dec. 2045 15 15 6.362 % 8.312 % Jul. 2046 18 19 6.362 % Total $ 47 $ 49 |
Shareholders' Equity and Divi41
Shareholders' Equity and Dividend Availability (table) | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity and Dividend Availability disclosure | |
Share repurchase activity and remaining repurchase capacity under the share repurchase authorization [Table Text Block] | (in millions, except per share Quarterly Period Ending Number of Cost of shares Average price paid Remaining capacity March 31, 2016 5.1 $ 550 $ 108.46 $ 2,784 June 30, 2016 4.9 550 112.12 2,234 September 30, 2016 4.7 550 117.25 1,684 December 31, 2016 6.6 750 113.54 934 Total 21.3 $ 2,400 112.82 934 |
Other Comprehensive Income an42
Other Comprehensive Income and Accumulated Other Comprehensive Income (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure | |
Changes in accumulated other comprehensive income (AOCI) [Table Text Block] | Changes in Net Unrealized Gains on Net Benefit Plan (in millions) Having No Credit Having Credit Losses Assets and Net Unrealized Total Accumulated Balance, December 31, 2013 $ 1,125 $ 197 $ (431 ) $ (81 ) $ 810 Other comprehensive income (loss) (OCI) before reclassifications 667 (2 ) (363 ) (250 ) 52 Amounts reclassified from AOCI (24 ) 3 39 — 18 Net OCI, current period 643 1 (324 ) (250 ) 70 Balance, December 31, 2014 1,768 198 (755 ) (331 ) 880 OCI before reclassifications (641 ) (11 ) (18 ) (419 ) (1,089 ) Amounts reclassified from AOCI (27 ) 2 60 17 52 Net OCI, current period (668 ) (9 ) 42 (402 ) (1,037 ) Balance, December 31, 2015 1,100 189 (713 ) (733 ) (157 ) OCI before reclassifications (530 ) 4 (30 ) (49 ) (605 ) Amounts reclassified from AOCI (42 ) 9 40 — 7 Net OCI, current period (572 ) 13 10 (49 ) (598 ) Balance, December 31, 2016 $ 528 $ 202 $ (703 ) $ (782 ) $ (755 ) |
Pre-tax components of other comprehensive income (loss) and the related income tax expense (benefit) for each component [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income $ (883 ) $ (1,020 ) $ 976 Income tax expense (benefit) (311 ) (352 ) 333 Net of taxes (572 ) (668 ) 643 Having credit losses recognized in the consolidated statement of income 21 (14 ) 2 Income tax expense (benefit) 8 (5 ) 1 Net of taxes 13 (9 ) 1 Net changes in benefit plan assets and obligations 16 66 (494 ) Income tax expense (benefit) 6 24 (170 ) Net of taxes 10 42 (324 ) Net changes in unrealized foreign currency translation (41 ) (461 ) (289 ) Income tax expense (benefit) 8 (59 ) (39 ) Net of taxes (49 ) (402 ) (250 ) Total other comprehensive income (loss) (887 ) (1,429 ) 195 Total income tax expense (benefit) (289 ) (392 ) 125 Total other comprehensive income (loss), net of taxes $ (598 ) $ (1,037 ) $ 70 |
Pre-tax 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 year ended December 31, in millions) 2016 2015 2014 Reclassification adjustments related to unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (64 ) $ (42 ) $ (36 ) Income tax expense (2) (22 ) (15 ) (12 ) Net of taxes (42 ) (27 ) (24 ) Having credit losses recognized in the consolidated statement of income (1) 13 2 4 Income tax benefit (2) 4 — 1 Net of taxes 9 2 3 Reclassification adjustment related to benefit plan assets and obligations (3) 62 93 60 Income tax benefit (2) 22 33 21 Net of taxes 40 60 39 Reclassification adjustment related to foreign currency translation (1) — 26 — Income tax benefit (2) — 9 — Net of taxes — 17 — Total reclassifications 11 79 28 Total income tax benefit 4 27 10 Total reclassifications, net of taxes $ 7 $ 52 $ 18 (1) (2) (3) |
Earnings per Share (table)
Earnings per Share (table) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings per Share disclosure | |
Earnings per share reconciliation [Table Text Block] | (for the year ended December 31, in millions, except per share amounts) 2016 2015 2014 Basic and Diluted Net income, as reported $ 3,014 $ 3,439 $ 3,692 Participating share-based awards — allocated income (22 ) (25 ) (27 ) Net income available to common shareholders — basic and diluted $ 2,992 $ 3,414 $ 3,665 Common Shares Basic Weighted average shares outstanding 288.1 310.6 338.8 Diluted Weighted average shares outstanding 288.1 310.6 338.8 Weighted average effects of dilutive securities: Stock options and performance shares 2.9 3.3 3.7 Total 291.0 313.9 342.5 Net income Per Common Share Basic $ 10.39 $ 10.99 $ 10.82 Diluted $ 10.28 $ 10.88 $ 10.70 |
Income Taxes (tables)
Income Taxes (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes disclosure | |
Composition of income tax expense included in consolidated statement of income and shareholders' equity [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 Composition of income tax expense included in the consolidated statement of income Current expense: Federal $ 899 $ 1,144 $ 1,216 Foreign 21 29 28 State 8 9 10 Total current tax expense 928 1,182 1,254 Deferred expense: Federal 110 117 121 Foreign 1 2 22 Total deferred tax expense 111 119 143 Total income tax expense included in the consolidated statement of income 1,039 1,301 1,397 Composition of income tax expense (benefit) included in shareholders’ equity Expense (benefit) relating to share-based compensation, the changes in unrealized gain on investments, unrealized loss on foreign exchange and other items in other comprehensive income (289 ) (448 ) 68 Total income tax expense included in the consolidated financial statements $ 750 $ 853 $ 1,465 |
Effective tax rate [Table Text Block] | (for the year ended December 31, in millions) 2016 2015 2014 Income before income taxes U.S. $ 3,946 $ 4,621 $ 4,899 Foreign 107 119 190 Total income before income taxes 4,053 4,740 5,089 Effective tax rate Statutory tax rate 35 % 35 % 35 % Expected federal income tax expense 1,419 1,659 1,781 Tax effect of: Nontaxable investment income (323 ) (345 ) (379 ) Other, net (57 ) (13 ) (5 ) Total income tax expense $ 1,039 $ 1,301 $ 1,397 Effective tax rate 26 % 27 % 27 % |
Deferred tax assets and liabilities [Table Text Block] | (at December 31, in millions) 2016 2015 Deferred tax assets Claims and claim adjustment expense reserves $ 664 $ 691 Unearned premium reserves 760 731 Compensation-related liabilities 268 326 Other 272 320 Total gross deferred tax assets 1,964 2,068 Less: valuation allowance 3 — Adjusted gross deferred tax assets 1,961 2,068 Deferred tax liabilities Deferred acquisition costs 604 580 Investments 592 867 Internally developed software 157 134 Other 143 191 Total gross deferred tax liabilities 1,496 1,772 Net deferred tax asset $ 465 $ 296 |
Net operating loss amounts by jurisdiction and year of expiration [Table Text Block] | (in millions) Amount Year of expiration Brazil $ 8 None United Kingdom $ 106 None |
Reconciliation of unrecognized tax benefits [Table Text Block] | (in millions) 2016 2015 Balance at January 1 $ 16 $ 23 Additions for tax positions of prior years 3 2 Reductions for tax positions of prior years (6 ) (9 ) Additions based on tax positions related to current year — — Balance at December 31 $ 13 $ 16 |
Share-Based Incentive Compens45
Share-Based Incentive Compensation (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Incentive Compensation disclosure | |
Assumptions used in estimating fair value of options on grant date [Table Text Block] | (for the year ended December 31,) 2016 2015 2014 Assumptions used in estimating fair value of options on grant date Expected term of stock options 5 6 years 6 years 6 years Expected volatility of Company’s stock 15.14% 16.80 % 19.29 % 27.2% – 27.5 % Weighted average volatility 16.79 % 19.29 % 27.5 % Expected annual dividend per share $2.44 – $2.68 $ 2.20 $2.00 – $2.20 Risk-free rate 1.36% 2.23 % 1.31 % 1.81% – 1.82 % |
Additional information regarding option grants [Table Text Block] | (for the year ended December 31,) 2016 2015 2014 Additional information Weighted average grant-date fair value of options granted (per share) $13.29 $15.78 $17.22 Total intrinsic value of options exercised during the year (in millions) $167 $120 $117 |
Summary of stock option activity under the Company's 2014 Incentive Plan and legacy share-based incentive compensation plans [Table Text Block] | Stock Options Number Weighted Weighted Aggregate Outstanding, beginning of year 9,864,255 $ 74.48 Original grants 2,847,398 106.21 Exercised (4,069,532 ) 69.13 Forfeited or expired (82,085 ) 97.44 Outstanding, end of year 8,560,036 $ 87.36 6.8 years $ 300 Vested at end of year (1) 5,588,061 $ 80.74 6.0 years $ 233 Exercisable at end of year 3,007,663 $ 65.18 4.2 years $ 172 (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. |
Summary of restricted stock units, deferred stock units and performance share activity [Table Text Block] | Restricted and Deferred Stock Performance Shares Other Equity Instruments Number Weighted Number Weighted Average Nonvested, beginning of year 1,435,958 $ 88.35 1,101,989 $ 91.27 Granted 676,736 106.93 476,411 106.03 Vested (667,650 ) 86.85 (818,360 ) 84.43 Forfeited (68,552 ) 97.82 (63,495 ) 100.02 Performance-based adjustment — — 100,073 (3) 88.22 Nonvested, end of year 1,376,492 $ 97.75 796,618 $ 106.03 (1) (2) (3) |
Pension Plans, Retirement Ben46
Pension Plans, Retirement Benefits and Savings Plans (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans, Retirement Benefits and Savings Plans disclosure | |
Summary of the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company's benefit plans [Table Text Block] | (at and for the year ended December 31, Qualified Domestic Nonqualified and Foreign Total in millions) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 3,250 $ 3,385 $ 228 $ 227 $ 3,478 $ 3,612 Benefits earned 111 124 7 7 118 131 Interest cost on benefit obligation 114 135 8 9 122 144 Actuarial loss (gain) 54 (203 ) 15 2 69 (201 ) Benefits paid (162 ) (191 ) (15 ) (8 ) (177 ) (199 ) Settlement — — (3 ) — (3 ) — Foreign currency exchange rate change — — (15 ) (9 ) (15 ) (9 ) Benefit obligation at end of year $ 3,367 $ 3,250 $ 225 $ 228 $ 3,592 $ 3,478 Change in plan assets: Fair value of plan assets at beginning of year $ 3,127 $ 3,235 $ 115 $ 122 $ 3,242 $ 3,357 Actual return on plan assets 222 (17 ) 11 3 233 (14 ) Company contributions 200 100 14 7 214 107 Benefits paid (162 ) (191 ) (15 ) (8 ) (177 ) (199 ) Settlement — — (3 ) — (3 ) — Foreign currency exchange rate change — — (16 ) (9 ) (16 ) (9 ) Fair value of plan assets at end of year 3,387 3,127 106 115 3,493 3,242 Funded status of plan at end of year $ 20 $ (123 ) $ (119 ) $ (113 ) $ (99 ) $ (236 ) Amounts recognized in the consolidated balance sheet consist of: Accrued over-funded benefit plan assets $ 20 $ — $ 5 $ 4 $ 25 $ 4 Accrued under-funded benefit plan liabilities — (123 ) (124 ) (117 ) (124 ) (240 ) Total $ 20 $ (123 ) $ (119 ) $ (113 ) $ (99 ) $ (236 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 1,072 $ 1,079 $ 55 $ 52 $ 1,127 $ 1,131 Prior service benefit (6 ) (8 ) — — (6 ) (8 ) Total $ 1,066 $ 1,071 $ 55 $ 52 $ 1,121 $ 1,123 Postretirement (at and for the year ended December 31, in millions) 2016 2015 Change in projected benefit obligation: Benefit obligation at beginning of year $ 233 $ 255 Benefits earned — — Interest cost on benefit obligation 8 10 Actuarial gain (17 ) (3 ) Benefits paid (11 ) (13 ) Plan amendments — (11 ) Foreign currency exchange rate change 1 (5 ) Benefit obligation at end of year $ 214 $ 233 Change in plan assets: Fair value of plan assets at beginning of year $ 15 $ 16 Actual return on plan assets — — Company contributions 10 12 Benefits paid (11 ) (13 ) Fair value of plan assets at end of year 14 15 Funded status of plan at end of year $ (200 ) $ (218 ) Amounts recognized in the consolidated balance sheet consist of: Accrued under-funded benefit plan liability $ (200 ) $ (218 ) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial (gain) loss $ (13 ) $ 4 Prior service benefit (31 ) (35 ) Total $ (44 ) $ (31 ) |
Summary of the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to the benefit plans [Table Text Block] | Pension Plans Postretirement Benefit (for the year ended December 31, in millions) 2016 2015 2014 2016 2015 2014 Net Periodic Benefit Cost: Service cost $ 118 $ 131 $ 110 $ — $ — $ — Interest cost on benefit obligation 122 144 150 8 10 10 Expected return on plan assets (230 ) (230 ) (218 ) — — — Curtailment — — (1 ) — — — Settlement 1 — 2 — — — Amortization of unrecognized: Prior service benefit (1 ) (1 ) — (3 ) (3 ) (2 ) Net actuarial loss (gain) 66 96 65 — 1 (3 ) Net periodic benefit cost $ 76 $ 140 $ 108 $ 5 $ 8 $ 5 Other Changes in Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service benefit $ — $ — $ (8 ) $ — $ (11 ) $ — Net actuarial loss (gain) 66 43 516 (17 ) (3 ) 50 Foreign currency exchange rate change (2 ) — — 1 — — Curtailment — — (2 ) — — — Settlement (1 ) — (2 ) — — — Amortization of prior service benefit 1 1 — 3 3 2 Amortization of net actuarial gain (loss) (66 ) (96 ) (65 ) — (1 ) 3 Total other changes recognized in other comprehensive income (2 ) (52 ) 439 (13 ) (12 ) 55 Total other changes recognized in net periodic benefit cost and other comprehensive income $ 74 $ 88 $ 547 $ (8 ) $ (4 ) $ 60 |
Benefit obligations assumptions, net periodic benefit cost assumptions and health care cost trend rates [Table Text Block] | (at and for the year ended December 31,) 2016 2015 Assumptions used to determine benefit obligations Discount rate: Qualified domestic pension plan 4.23 % 4.50 % Nonqualified domestic pension plan 4.15 % 4.37 % Domestic postretirement benefit plan 4.10 % 4.35 % Future compensation increase rate 4.00 % 4.00 % Assumptions used to determine net periodic benefit cost Discount rate: Qualified domestic pension plan: Service cost 4.77 % 4.10 % Interest cost 3.64 % 4.10 % Nonqualified domestic pension plan: Service cost 4.53 % 4.10 % Interest cost 3.47 % 4.10 % Domestic postretirement benefit plan: Interest cost 3.53 % 4.10 % Expected long-term rate of return on assets: Pension plan 7.00 % 7.25 % Postretirement benefit plan 4.00 % 4.00 % Assumed health care cost trend rates Following year: Medical (before age 65) 6.50 % 6.75 % Medical (age 65 and older) 7.25 % 7.50 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate: Medical (before age 65) 2022 2022 Medical (age 65 and older) 2025 2025 |
Level within the fair value hierarchy at which the financial assets of the Company's pension plans are measured [Table Text Block] | (at December 31, 2016, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 9 $ — $ 9 $ — Debt securities issued by foreign governments 14 — 14 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 12 — 12 — All other corporate bonds 511 — 511 — Total fixed maturities 546 — 546 — Mutual funds Equity mutual funds 1,285 1,278 7 — Bond mutual funds 641 638 3 — Total mutual funds 1,926 1,916 10 — Equity securities 747 747 — — Other investments (1) 1 — — 1 Cash and short-term securities U.S. Treasury securities 45 45 — — Money market mutual funds 20 19 1 — Other 208 28 180 — Total cash and short-term securities 273 92 181 — Total $ 3,493 $ 2,755 $ 737 $ 1 (1) (at December 31, 2015, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities Obligations of states, municipalities and political subdivisions $ 17 $ — $ 17 $ — Debt securities issued by foreign governments 16 — 16 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 16 — 16 — All other corporate bonds 491 — 491 — Total fixed maturities 540 — 540 — Mutual funds Equity mutual funds 1,237 1,231 6 — Bond mutual funds 649 646 3 — Total mutual funds 1,886 1,877 9 — Equity securities 625 624 1 — Other investments (1) 2 — — 2 Cash and short-term securities U.S. Treasury securities 25 25 — — Money market mutual funds 23 19 4 — Other 141 20 121 — Total cash and short-term securities 189 64 125 — Total $ 3,242 $ 2,565 $ 675 $ 2 (1) |
Estimated future benefit payments [Table Text Block] | Benefits Expected to be Paid (in millions) Pension Plans Postretirement Benefit 2017 $ 230 $ 13 2018 240 14 2019 247 14 2020 253 14 2021 258 14 2022 through 2026 1,327 71 |
Consolidating Financial State47
Consolidating Financial Statements (Unaudited) (tables) | 12 Months Ended |
Dec. 31, 2016 | |
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure | |
Consolidating Statement of Income (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the year ended December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 16,788 $ 7,746 $ — $ — $ 24,534 Net investment income 1,569 720 13 — 2,302 Fee income 458 — — — 458 Net realized investment gains (losses)(1) 30 39 (1 ) — 68 Other revenues 248 36 — (21 ) 263 Total revenues 19,093 8,541 12 (21 ) 27,625 Claims and expenses Claims and claim adjustment expenses 10,232 4,838 — — 15,070 Amortization of deferred acquisition costs 2,702 1,283 — — 3,985 General and administrative expenses 2,928 1,242 5 (21 ) 4,154 Interest expense 48 — 315 — 363 Total claims and expenses 15,910 7,363 320 (21 ) 23,572 Income (loss) before income taxes 3,183 1,178 (308 ) — 4,053 Income tax expense (benefit) 999 208 (168 ) — 1,039 Net income of subsidiaries — — 3,154 (3,154 ) — Net income $ 2,184 $ 970 $ 3,014 $ (3,154 ) $ 3,014 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (19 ) $ (20 ) $ (1 ) $ — $ (40 ) OTTI losses recognized in net realized investment gains (losses) $ (13 ) $ (15 ) $ (1 ) $ — $ (29 ) OTTI losses recognized in OCI $ (6 ) $ (5 ) $ — $ — $ (11 ) CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the year ended December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 16,254 $ 7,620 $ — $ — $ 23,874 Net investment income 1,612 760 7 — 2,379 Fee income 460 — — — 460 Net realized investment gains (losses)(1) 13 (11 ) 1 — 3 Other revenues 78 21 — — 99 Total revenues 18,417 8,390 8 — 26,815 Claims and expenses Claims and claim adjustment expenses 9,208 4,515 — — 13,723 Amortization of deferred acquisition costs 2,627 1,258 — — 3,885 General and administrative expenses 2,853 1,225 16 — 4,094 Interest expense 48 — 325 — 373 Total claims and expenses 14,736 6,998 341 — 22,075 Income (loss) before income taxes 3,681 1,392 (333 ) — 4,740 Income tax expense (benefit) 1,015 394 (108 ) — 1,301 Net income of subsidiaries — — 3,664 (3,664 ) — Net income $ 2,666 $ 998 $ 3,439 $ (3,664 ) $ 3,439 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (19 ) $ (35 ) $ — $ — $ (54 ) OTTI losses recognized in net realized investment gains (losses) $ (18 ) $ (34 ) $ — $ — $ (52 ) OTTI losses recognized in OCI $ (1 ) $ (1 ) $ — $ — $ (2 ) CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the year ended December 31, 2014 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 16,097 $ 7,616 $ — $ — $ 23,713 Net investment income 1,874 907 6 — 2,787 Fee income 448 2 — — 450 Net realized investment gains(1) 12 64 3 — 79 Other revenues 125 20 — — 145 Total revenues 18,556 8,609 9 — 27,174 Claims and expenses Claims and claim adjustment expenses 9,274 4,596 — — 13,870 Amortization of deferred acquisition costs 2,604 1,278 — — 3,882 General and administrative expenses 2,755 1,194 15 — 3,964 Interest expense 48 — 321 — 369 Total claims and expenses 14,681 7,068 336 — 22,085 Income (loss) before income taxes 3,875 1,541 (327 ) — 5,089 Income tax expense (benefit) 1,095 417 (115 ) — 1,397 Net income of subsidiaries — — 3,904 (3,904 ) — Net income $ 2,780 $ 1,124 $ 3,692 $ (3,904 ) $ 3,692 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (16 ) $ (6 ) $ — $ — $ (22 ) OTTI losses recognized in net realized investment gains $ (19 ) $ (7 ) $ — $ — $ (26 ) OTTI gains recognized in OCI $ 3 $ 1 $ — $ — $ 4 |
Consolidating Statement of Comprehensive Income (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the year ended December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 2,184 $ 970 $ 3,014 $ (3,154 ) $ 3,014 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (696 ) (198 ) 11 — (883 ) Having credit losses recognized in the consolidated statement of income 11 10 — — 21 Net changes in benefit plan assets and obligations 25 11 (20 ) — 16 Net changes in unrealized foreign currency translation 73 (114 ) — — (41 ) Other comprehensive loss before income taxes and other comprehensive loss of subsidiaries (587 ) (291 ) (9 ) — (887 ) Income tax benefit (222 ) (66 ) (1 ) — (289 ) Other comprehensive loss, net of taxes, before other comprehensive loss of subsidiaries (365 ) (225 ) (8 ) — (598 ) Other comprehensive loss of subsidiaries — — (590 ) 590 — Other comprehensive loss (365 ) (225 ) (598 ) 590 (598 ) Comprehensive income $ 1,819 $ 745 $ 2,416 $ (2,564 ) $ 2,416 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the year ended December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 2,666 $ 998 $ 3,439 $ (3,664 ) $ 3,439 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (610 ) (407 ) (3 ) — (1,020 ) Having credit losses recognized in the consolidated statement of income (12 ) (2 ) — — (14 ) Net changes in benefit plan assets and obligations 2 — 64 — 66 Net changes in unrealized foreign currency translation (306 ) (155 ) — — (461 ) Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries (926 ) (564 ) 61 — (1,429 ) Income tax expense (benefit) (257 ) (156 ) 21 — (392 ) Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries (669 ) (408 ) 40 — (1,037 ) Other comprehensive loss of subsidiaries — — (1,077 ) 1,077 — Other comprehensive loss (669 ) (408 ) (1,037 ) 1,077 (1,037 ) Comprehensive income $ 1,997 $ 590 $ 2,402 $ (2,587 ) $ 2,402 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the year ended December 31, 2014 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 2,780 $ 1,124 $ 3,692 $ (3,904 ) $ 3,692 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 681 289 6 — 976 Having credit losses recognized in the consolidated statement of income 9 (7 ) — — 2 Net changes in benefit plan assets and obligations (15 ) (8 ) (471 ) — (494 ) Net changes in unrealized foreign currency translation (173 ) (116 ) — — (289 ) Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 502 158 (465 ) — 195 Income tax expense (benefit) 207 81 (163 ) — 125 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 295 77 (302 ) — 70 Other comprehensive income of subsidiaries — — 372 (372 ) — Other comprehensive income 295 77 70 (372 ) 70 Comprehensive income $ 3,075 $ 1,201 $ 3,762 $ (4,276 ) $ 3,762 |
Consolidating Balance Sheet (Unaudited) [Table Text Block] | CONSOLIDATING BALANCE SHEET (Unaudited) At December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $59,650) $ 42,014 $ 18,452 $ 49 $ — $ 60,515 Equity securities, available for sale, at fair value (cost $504) 169 408 155 — 732 Real estate investments 56 872 — — 928 Short-term securities 2,447 791 1,627 — 4,865 Other investments 2,569 878 1 — 3,448 Total investments 47,255 21,401 1,832 — 70,488 Cash 141 164 2 — 307 Investment income accrued 441 183 6 — 630 Premiums receivable 4,545 2,177 — — 6,722 Reinsurance recoverables 5,664 2,623 — — 8,287 Ceded unearned premiums 536 53 — — 589 Deferred acquisition costs 1,741 182 — — 1,923 Deferred taxes 216 224 25 — 465 Contractholder receivables 3,656 953 — — 4,609 Goodwill 2,578 1,002 — — 3,580 Other intangible assets 202 66 — — 268 Investment in subsidiaries — — 27,137 (27,137 ) — Other assets 1,973 370 34 — 2,377 Total assets $ 68,948 $ 29,398 $ 29,036 $ (27,137 ) $ 100,245 Liabilities Claims and claim adjustment expense reserves $ 32,168 $ 15,781 $ — $ — $ 47,949 Unearned premium reserves 8,575 3,754 — — 12,329 Contractholder payables 3,656 953 — — 4,609 Payables for reinsurance premiums 156 117 — — 273 Debt 693 — 5,744 — 6,437 Other liabilities 4,106 1,239 82 — 5,427 Total liabilities 49,354 21,844 5,826 — 77,024 Shareholders’ equity Common stock (1,750.0 shares authorized; 279.6 shares issued and outstanding) — 390 22,614 (390 ) 22,614 Additional paid-in capital 11,634 6,499 — (18,133 ) — Retained earnings 7,933 797 32,185 (8,719 ) 32,196 Accumulated other comprehensive income (loss) 27 (132 ) (755 ) 105 (755 ) Treasury stock, at cost (489.5 shares) — — (30,834 ) — (30,834 ) Total shareholders’ equity 19,594 7,554 23,210 (27,137 ) 23,221 Total liabilities and shareholders’ equity $ 68,948 $ 29,398 $ 29,036 $ (27,137 ) $ 100,245 CONSOLIDATING BALANCE SHEET (Unaudited) At December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $58,878) $ 42,289 $ 18,323 $ 46 $ — $ 60,658 Equity securities, available for sale, at fair value (cost $528) 189 375 141 — 705 Real estate investments 56 933 — — 989 Short-term securities 1,947 1,178 1,546 — 4,671 Other investments 2,516 930 1 — 3,447 Total investments 46,997 21,739 1,734 — 70,470 Cash 225 153 2 — 380 Investment income accrued 453 185 4 — 642 Premiums receivable 4,336 2,101 — — 6,437 Reinsurance recoverables 5,849 3,061 — — 8,910 Ceded unearned premiums 610 46 — — 656 Deferred acquisition costs 1,660 189 — — 1,849 Deferred taxes 178 83 35 — 296 Contractholder receivables 3,387 987 — — 4,374 Goodwill 2,573 1,000 — — 3,573 Other intangible assets 203 76 — — 279 Investment in subsidiaries — — 27,573 (27,573 ) — Other assets 1,958 344 16 — 2,318 Total assets $ 68,429 $ 29,964 $ 29,364 $ (27,573 ) $ 100,184 Liabilities Claims and claim adjustment expense reserves $ 31,965 $ 16,330 $ — $ — $ 48,295 Unearned premium reserves 8,335 3,636 — — 11,971 Contractholder payables 3,387 987 — — 4,374 Payables for reinsurance premiums 175 121 — — 296 Debt 693 — 5,651 — 6,344 Other liabilities 3,958 1,221 127 — 5,306 Total liabilities 48,513 22,295 5,778 — 76,586 Shareholders’ equity Common stock (1,750.0 shares authorized; 295.9 shares issued and outstanding) — 390 22,172 (390 ) 22,172 Additional paid-in capital 11,634 6,499 — (18,133 ) — Retained earnings 7,888 688 29,933 (8,564 ) 29,945 Accumulated other comprehensive income (loss) 394 92 (157 ) (486 ) (157 ) Treasury stock, at cost (467.6 shares) — — (28,362 ) — (28,362 ) Total shareholders’ equity 19,916 7,669 23,586 (27,573 ) 23,598 Total liabilities and shareholders’ equity $ 68,429 $ 29,964 $ 29,364 $ (27,573 ) $ 100,184 |
Consolidating Statement of Cash Flows (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the year ended December 31, 2016 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 2,184 $ 970 $ 3,014 $ (3,154 ) $ 3,014 Net adjustments to reconcile net income to net cash provided by operating activities 1,085 66 (119 ) 156 1,188 Net cash provided by operating activities 3,269 1,036 2,895 (2,998 ) 4,202 Cash flows from investing activities Proceeds from maturities of fixed maturities 6,589 2,380 6 — 8,975 Proceeds from sales of investments: Fixed maturities 768 647 2 — 1,417 Equity securities 47 45 — — 92 Real estate investments — 69 — — 69 Other investments 586 253 — — 839 Purchases of investments: Fixed maturities (7,921 ) (3,676 ) (12 ) — (11,609 ) Equity securities (6 ) (42 ) (3 ) — (51 ) Real estate investments (1 ) (47 ) — — (48 ) Other investments (453 ) (127 ) — — (580 ) Net sales (purchases) of short-term securities (501 ) 383 (81 ) — (199 ) Securities transactions in course of settlement 12 (32 ) (1 ) — (21 ) Other (334 ) (10 ) — — (344 ) Net cash used in investing activities (1,214 ) (157 ) (89 ) — (1,460 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (2,400 ) — (2,400 ) Treasury stock acquired — net employee share-based compensation — — (72 ) — (72 ) Dividends paid to shareholders — — (757 ) — (757 ) Payment of debt — — (400 ) — (400 ) Issuance of debt — — 491 — 491 Issuance of common stock — employee share options — — 332 — 332 Dividends paid to parent company (2,140 ) (858 ) — 2,998 — Net cash used in financing activities (2,140 ) (858 ) (2,806 ) 2,998 (2,806 ) Effect of exchange rate changes on cash 1 (10 ) — — (9 ) Net increase (decrease) in cash (84 ) 11 — — (73 ) Cash at beginning of year 225 153 2 — 380 Cash at end of year $ 141 $ 164 $ 2 $ — $ 307 Supplemental disclosure of cash flow information Income taxes paid (received) $ 737 $ 287 $ (132 ) $ — $ 892 Interest paid $ 47 $ — $ 311 $ — $ 358 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the year ended December 31, 2015 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 2,666 $ 998 $ 3,439 $ (3,664 ) $ 3,439 Net adjustments to reconcile net income to net cash provided by operating activities (577 ) 414 330 (172 ) (5 ) Net cash provided by operating activities 2,089 1,412 3,769 (3,836 ) 3,434 Cash flows from investing activities Proceeds from maturities of fixed maturities 7,543 3,563 10 — 11,116 Proceeds from sales of investments: Fixed maturities 1,227 723 — — 1,950 Equity securities 25 34 — — 59 Real estate investments — 31 — — 31 Other investments 503 210 — — 713 Purchases of investments: Fixed maturities (8,276 ) (3,787 ) (27 ) — (12,090 ) Equity securities (3 ) (43 ) (3 ) — (49 ) Real estate investments (1 ) (122 ) — — (123 ) Other investments (423 ) (111 ) — — (534 ) Net sales (purchases) of short-term securities 179 (489 ) (16 ) — (326 ) Securities transactions in course of settlement (52 ) (61 ) — — (113 ) Acquisition, net of cash acquired (13 ) — — — (13 ) Other (343 ) 39 — — (304 ) Net cash provided by (used in) investing activities 366 (13 ) (36 ) — 317 Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (3,150 ) — (3,150 ) Treasury stock acquired — net employee share-based compensation — — (74 ) — (74 ) Dividends paid to shareholders — — (739 ) — (739 ) Payment of debt — — (400 ) — (400 ) Issuance of debt — — 392 — 392 Issuance of common stock — employee share options — — 183 — 183 Excess tax benefits from share-based payment arrangements — — 55 — 55 Dividends paid to parent company (2,450 ) (1,383 ) — 3,833 — Capital contributions, loans and other transactions between subsidiaries — (3 ) — 3 — Net cash used in financing activities (2,450 ) (1,386 ) (3,733 ) 3,836 (3,733 ) Effect of exchange rate changes on cash (1 ) (11 ) — — (12 ) Net increase in cash 4 2 — — 6 Cash at beginning of year 221 151 2 — 374 Cash at end of year $ 225 $ 153 $ 2 $ — $ 380 Supplemental disclosure of cash flow information Income taxes paid (received) $ 1,032 $ 384 $ (209 ) $ — $ 1,207 Interest paid $ 47 $ — $ 318 $ — $ 365 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the year ended December 31, 2014 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 2,780 $ 1,124 $ 3,692 $ (3,904 ) $ 3,692 Net adjustments to reconcile net income to net cash provided by operating activities 343 (293 ) 118 (167 ) 1 Net cash provided by operating activities 3,123 831 3,810 (4,071 ) 3,693 Cash flows from investing activities Proceeds from maturities of fixed maturities 6,625 4,258 11 — 10,894 Proceeds from sales of investments: Fixed maturities 595 453 1 — 1,049 Equity securities 111 43 4 — 158 Real estate investments 1 14 — — 15 Other investments 477 378 — — 855 Purchases of investments: Fixed maturities (6,856 ) (4,465 ) (4 ) — (11,325 ) Equity securities (3 ) (42 ) (7 ) — (52 ) Real estate investments (22 ) (26 ) — — (48 ) Other investments (405 ) (149 ) — — (554 ) Net purchases of short-term securities (268 ) (223 ) (7 ) — (498 ) Securities transactions in course of settlement 44 38 — — 82 Acquisition, net of cash acquired (9 ) (3 ) — (12 ) Other (350 ) (8 ) — — (358 ) Net cash provided by (used in) investing activities (60 ) 268 (2 ) — 206 Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (3,275 ) — (3,275 ) Treasury stock acquired — net employee share-based compensation — — (57 ) — (57 ) Dividends paid to shareholders — — (729 ) — (729 ) Issuance of common stock — employee share options — — 195 — 195 Excess tax benefits from share-based payment arrangements — — 57 — 57 Dividends paid to parent company (2,978 ) (1,093 ) — 4,071 — Net cash used in financing activities (2,978 ) (1,093 ) (3,809 ) 4,071 (3,809 ) Effect of exchange rate changes on cash (1 ) (9 ) — — (10 ) Net increase (decrease) in cash 84 (3 ) (1 ) — 80 Cash at beginning of year 137 154 3 — 294 Cash at end of year $ 221 $ 151 $ 2 $ — $ 374 Supplemental disclosure of cash flow information Income taxes paid (received) $ 947 $ 336 $ (136 ) $ — $ 1,147 Interest paid $ 47 $ — $ 318 $ — $ 365 |
Selected Quarterly Financial 48
Selected Quarterly Financial Data (Unaudited) (table) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Data (Unaudited) disclosure | |
Selected Quarterly Financial Data (Unaudited) disclosure [Table Text Block] | 2016 (in millions, except per share amounts) First Second Third Fourth Total Total revenues $ 6,686 $ 6,785 $ 6,961 $ 7,193 $ 27,625 Total expenses 5,769 5,898 6,014 5,891 23,572 Income before income taxes 917 887 947 1,302 4,053 Income tax expense 226 223 231 359 1,039 Net income $ 691 $ 664 $ 716 $ 943 $ 3,014 Net income per share(1): Basic $ 2.33 $ 2.27 $ 2.48 $ 3.32 $ 10.39 Diluted 2.30 2.24 2.45 3.28 10.28 2015 (in millions, except per share amounts) First Second Third Fourth Total Total revenues $ 6,629 $ 6,710 $ 6,798 $ 6,678 $ 26,815 Total expenses 5,481 5,634 5,491 5,469 22,075 Income before income taxes 1,148 1,076 1,307 1,209 4,740 Income tax expense 315 264 379 343 1,301 Net income $ 833 $ 812 $ 928 $ 866 $ 3,439 Net income per share(1): Basic $ 2.58 $ 2.56 $ 3.00 $ 2.87 $ 10.99 Diluted 2.55 2.53 2.97 2.83 10.88 (1) |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (details) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies disclosure | |
Maximum useful life for buildings held in real estate investments | 39 years |
Maximum original maturity of short-term securities | 1 year |
Availability of financial information provided by private equity and real estate partnerships following the date of the reporting, minimum | 3 months |
Availability of financial information provided by private equity and real estate partnerships following the date of the reporting, maximum | 6 months |
Availability of financial information provided by hedge funds following the date of the reporting | 1 month |
Estimated recovery time for securities for which the issuer is in bankruptcy | 12 months |
Estimated recovery time for securities for which the issuer is financially troubled but not in bankruptcy | 24 months |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (details) - Key Assumptions | 12 Months Ended |
Dec. 31, 2016 | |
Prime [Member] | Minimum [Member] | |
Key assumptions used in estimation of present value of structured fixed maturity securities | |
Voluntary prepayment rates | 0.00% |
Percentage of remaining pool liquidated due to defaults | 0.00% |
Loss severity | 30.00% |
Prime [Member] | Maxiumum [Member] | |
Key assumptions used in estimation of present value of structured fixed maturity securities | |
Voluntary prepayment rates | 35.00% |
Percentage of remaining pool liquidated due to defaults | 46.00% |
Loss severity | 65.00% |
Alt-A [Member] | Minimum [Member] | |
Key assumptions used in estimation of present value of structured fixed maturity securities | |
Voluntary prepayment rates | 4.00% |
Percentage of remaining pool liquidated due to defaults | 20.00% |
Loss severity | 42.00% |
Alt-A [Member] | Maxiumum [Member] | |
Key assumptions used in estimation of present value of structured fixed maturity securities | |
Voluntary prepayment rates | 15.00% |
Percentage of remaining pool liquidated due to defaults | 73.00% |
Loss severity | 90.00% |
Sub-Prime [Member] | Minimum [Member] | |
Key assumptions used in estimation of present value of structured fixed maturity securities | |
Voluntary prepayment rates | 3.00% |
Percentage of remaining pool liquidated due to defaults | 22.00% |
Loss severity | 75.00% |
Sub-Prime [Member] | Maxiumum [Member] | |
Key assumptions used in estimation of present value of structured fixed maturity securities | |
Voluntary prepayment rates | 12.00% |
Percentage of remaining pool liquidated due to defaults | 52.00% |
Loss severity | 110.00% |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (details) - Additional Details $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014 | |
Summary of Significant Accounting Policies disclosure | |||
Minimum collateral provided by borrowers of securities, as a percentage of the market value of the loaned securities plus accrued interest | 102.00% | ||
Number of reportable business segments | item | 3 | ||
Liability for guaranty fund and other insurance-related assessments | $ 242 | $ 241 | |
Recoverables for liability for guaranty fund and other insurance-related assessments | $ 16 | $ 18 | |
Minimum expected payment period for loss-based assessments and recoveries | 1 year | 1 year | |
Net written premiums for participating dividend policies as a percent of total Company net written premiums | 1.00% | 2.00% | 1.00% |
Liability accrued for policyholder dividends | $ 62 | $ 57 | |
Percentage of capital provided by International for its syndicate at Lloyd's | 100.00% | ||
Number of principal business units through which the Company's syndicate at Lloyd's writes business | item | 5 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (details) - Equity Method Investment | Dec. 31, 2016 |
JMalucelli - Brazilian joint venture [Member] | |
Equity method investment | |
Percent of common stock owned | 49.50% |
J. Malucelli Latam S.A. [Member] | |
Equity method investment | |
Percent of common stock owned | 49.50% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (details) - Acquisition | Oct. 01, 2015 |
Travelers Participacoes em Seguros Brasil S.A. [Member] | |
Business Acquisition | |
Percentage of common stock acquired | 100.00% |
Segment Information (details)
Segment Information (details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Segment reporting information | ||||||||||||
Number of reportable business segments | item | 3 | |||||||||||
Premiums | $ 24,534 | $ 23,874 | $ 23,713 | |||||||||
Net investment income | 2,302 | 2,379 | 2,787 | |||||||||
Fee income | 458 | 460 | 450 | |||||||||
Other revenues | 263 | 99 | 145 | |||||||||
Income tax expense | $ 359 | $ 231 | $ 223 | $ 226 | $ 343 | $ 379 | $ 264 | $ 315 | 1,039 | 1,301 | 1,397 | |
Core income (loss) | 2,967 | 3,437 | 3,641 | |||||||||
Net realized investment gains | [1] | 68 | 3 | 79 | ||||||||
Total revenues | 7,193 | 6,961 | 6,785 | 6,686 | 6,678 | 6,798 | 6,710 | 6,629 | 27,625 | 26,815 | 27,174 | |
Net realized investment gains, net of tax | 47 | 2 | 51 | |||||||||
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | 3,014 | 3,439 | 3,692 | |
Property casualty [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 24,534 | 23,874 | 23,713 | |||||||||
Net investment income | 2,302 | 2,379 | 2,787 | |||||||||
Domestic [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Total revenues | 25,904 | 25,127 | 25,103 | |||||||||
International [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Total revenues | 1,721 | 1,688 | 2,071 | |||||||||
Reportable Segments [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 24,534 | 23,874 | 23,713 | |||||||||
Net investment income | 2,302 | 2,379 | 2,787 | |||||||||
Fee income | 458 | 460 | 450 | |||||||||
Other revenues | 252 | 93 | 145 | |||||||||
Total segment revenues | 27,546 | 26,806 | 27,095 | |||||||||
Amortization and depreciation | 4,804 | 4,696 | 4,738 | |||||||||
Income tax expense | 1,157 | 1,443 | 1,512 | |||||||||
Core income (loss) | 3,211 | 3,692 | 3,898 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 13,855 | 13,698 | 13,515 | |||||||||
Net investment income | 1,701 | 1,757 | 2,072 | |||||||||
Fee income | 442 | 445 | 438 | |||||||||
Other revenues | 168 | 17 | 34 | |||||||||
Total segment revenues | 16,166 | 15,917 | 16,059 | |||||||||
Amortization and depreciation | 2,783 | 2,725 | 2,714 | |||||||||
Income tax expense | 656 | 744 | 795 | |||||||||
Core income (loss) | 1,982 | 2,077 | 2,297 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 12,904 | 12,625 | 12,305 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Workers' compensation [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 3,969 | 3,867 | 3,711 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Automobile [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 2,010 | 1,922 | 1,900 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial property [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 1,769 | 1,766 | 1,747 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | General liability [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 1,977 | 1,898 | 1,834 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial multi-peril [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 3,148 | 3,133 | 3,071 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Other [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 31 | 39 | 42 | |||||||||
Reportable Segments [Member] | Business Insurance [Member] | International [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 951 | 1,073 | 1,210 | |||||||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 2,260 | 2,267 | 2,275 | |||||||||
Net investment income | 239 | 254 | 293 | |||||||||
Other revenues | 21 | 22 | 20 | |||||||||
Total segment revenues | 2,520 | 2,543 | 2,588 | |||||||||
Amortization and depreciation | 491 | 501 | 521 | |||||||||
Income tax expense | 309 | 283 | 348 | |||||||||
Core income (loss) | 712 | 683 | 760 | |||||||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 2,088 | 2,085 | 2,076 | |||||||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | General liability [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 946 | 955 | 963 | |||||||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Fidelity and surety [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 962 | 954 | 936 | |||||||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Other [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 180 | 176 | 177 | |||||||||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | International [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 172 | 182 | 199 | |||||||||
Reportable Segments [Member] | Personal Insurance [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 8,419 | 7,909 | 7,923 | |||||||||
Net investment income | 362 | 368 | 422 | |||||||||
Fee income | 16 | 15 | 12 | |||||||||
Other revenues | 63 | 54 | 91 | |||||||||
Total segment revenues | 8,860 | 8,346 | 8,448 | |||||||||
Amortization and depreciation | 1,530 | 1,470 | 1,503 | |||||||||
Income tax expense | 192 | 416 | 369 | |||||||||
Core income (loss) | 517 | 932 | 841 | |||||||||
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 7,826 | 7,268 | 7,125 | |||||||||
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Automobile [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 4,013 | 3,512 | 3,316 | |||||||||
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Homeowners and Other [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 3,813 | 3,756 | 3,809 | |||||||||
Reportable Segments [Member] | Personal Insurance [Member] | International [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Premiums | 593 | 641 | 798 | |||||||||
Other [Member] | ||||||||||||
Segment reporting information | ||||||||||||
Other revenues | 11 | 6 | ||||||||||
Core income (loss) | (244) | (255) | (257) | |||||||||
After-tax interest expense | $ 236 | $ 242 | $ 240 | |||||||||
[1] | Total other-than-temporary impairment (OTTI) losses were $(40) million, $(54) million and $(22) million for the years ended December 31, 2016, 2015 and 2014, respectively. Of total OTTI, credit losses of $(29) million, $(52) million and $(26) million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $(11) million, $(2) million and $4 million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Segment Information (details) -
Segment Information (details) - Net Written Premiums - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment reporting information | |||
Net written premiums | $ 24,958 | $ 24,121 | $ 23,904 |
Business Insurance [Member] | |||
Segment reporting information | |||
Net written premiums | 13,900 | 13,774 | 13,677 |
Business Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Net written premiums | 12,945 | 12,741 | 12,484 |
Business Insurance [Member] | Domestic [Member] | Select Accounts [Member] | |||
Segment reporting information | |||
Net written premiums | 2,729 | 2,716 | 2,707 |
Business Insurance [Member] | Domestic [Member] | Middle Market [Member] | |||
Segment reporting information | |||
Net written premiums | 7,379 | 7,186 | 6,973 |
Business Insurance [Member] | Domestic [Member] | National Accounts [Member] | |||
Segment reporting information | |||
Net written premiums | 1,058 | 1,048 | 1,047 |
Business Insurance [Member] | Domestic [Member] | National Property and Other [Member] | |||
Segment reporting information | |||
Net written premiums | 1,779 | 1,791 | 1,757 |
Business Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Net written premiums | 955 | 1,033 | 1,193 |
Bond & Specialty Insurance [Member] | |||
Segment reporting information | |||
Net written premiums | 2,271 | 2,273 | 2,294 |
Bond & Specialty Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Net written premiums | 2,099 | 2,081 | 2,103 |
Bond & Specialty Insurance [Member] | Domestic [Member] | Management Liability [Member] | |||
Segment reporting information | |||
Net written premiums | 1,342 | 1,326 | 1,339 |
Bond & Specialty Insurance [Member] | Domestic [Member] | Surety [Member] | |||
Segment reporting information | |||
Net written premiums | 757 | 755 | 764 |
Bond & Specialty Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Net written premiums | 172 | 192 | 191 |
Personal Insurance [Member] | |||
Segment reporting information | |||
Net written premiums | 8,787 | 8,074 | 7,933 |
Personal Insurance [Member] | Domestic [Member] | |||
Segment reporting information | |||
Net written premiums | 8,184 | 7,457 | 7,165 |
Personal Insurance [Member] | Domestic [Member] | Total Agency [Member] | |||
Segment reporting information | |||
Net written premiums | 7,875 | 7,221 | 6,978 |
Personal Insurance [Member] | Domestic [Member] | Agency Automobile [Member] | |||
Segment reporting information | |||
Net written premiums | 4,103 | 3,534 | 3,260 |
Personal Insurance [Member] | Domestic [Member] | Agency Homeowners and Other [Member] | |||
Segment reporting information | |||
Net written premiums | 3,772 | 3,687 | 3,718 |
Personal Insurance [Member] | Domestic [Member] | Direct-to-Consumer [Member] | |||
Segment reporting information | |||
Net written premiums | 309 | 236 | 187 |
Personal Insurance [Member] | International [Member] | |||
Segment reporting information | |||
Net written premiums | $ 603 | $ 617 | $ 768 |
Segment Information (details)56
Segment Information (details) - Assets by Segment - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets by segment | ||
Total assets | $ 100,245 | $ 100,184 |
Reportable Segments [Member] | ||
Assets by segment | ||
Total assets | 99,882 | 99,800 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Assets by segment | ||
Total assets | 75,730 | 75,915 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Assets by segment | ||
Total assets | 8,726 | 8,820 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Assets by segment | ||
Total assets | 15,426 | 15,065 |
Other assets [Member] | ||
Assets by segment | ||
Total assets | $ 363 | $ 384 |
Segment Information (details)57
Segment Information (details) - Enterprise-Wide Disclosures - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues based on location | |||||||||||
Benchmark percentage of revenue transactions from a single customer | 10.00% | 10.00% | 10.00% | ||||||||
Total revenues | $ 7,193 | $ 6,961 | $ 6,785 | $ 6,686 | $ 6,678 | $ 6,798 | $ 6,710 | $ 6,629 | $ 27,625 | $ 26,815 | $ 27,174 |
U.S. [Member] | |||||||||||
Revenues based on location | |||||||||||
Total revenues | 25,904 | 25,127 | 25,103 | ||||||||
Non-U.S. [Member] | |||||||||||
Revenues based on location | |||||||||||
Total revenues | 1,721 | 1,688 | 2,071 | ||||||||
Canada [Member] | |||||||||||
Revenues based on location | |||||||||||
Total revenues | 1,154 | 1,202 | 1,474 | ||||||||
Other Non-U.S. [Member] | |||||||||||
Revenues based on location | |||||||||||
Total revenues | $ 567 | $ 486 | $ 597 |
Investments (details)
Investments (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments disclosure | |||
Fixed maturities, due in one year or less, amortized cost | $ 5,619 | ||
Fixed maturities, due after 1 year through 5 years, amortized cost | 16,417 | ||
Fixed maturities, due after 5 years through 10 years, amortized cost | 14,258 | ||
Fixed maturities, due after 10 years, amortized cost | 21,742 | ||
Fixed maturities excluding mortgage-backed securities, collateralized mortgage obligations and pass-through securities, amortized cost | 58,036 | ||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities, amortized cost | 1,614 | ||
Fixed maturities, amortized cost | 59,650 | $ 58,878 | |
Fixed maturities, due in one year or less, fair value | 5,677 | ||
Fixed maturities, due after 1 year through 5 years, fair value | 16,926 | ||
Fixed maturities, due after 5 years through 10 years, fair value | 14,449 | ||
Fixed maturities, due after 10 years, fair value | 21,755 | ||
Fixed maturities excluding mortgage-backed securities, collateralized mortgage obligations and pass-through securities, fair value | 58,807 | ||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities, fair value | 1,708 | ||
Fixed maturities, at fair value | 60,515 | 60,658 | |
Securities on loan as part of a tri-party lending agreement | 286 | 269 | |
Proceeds from sales of fixed maturities classified as available for sale | 1,417 | 1,950 | $ 1,049 |
Insurance subsidiaries' securities on deposit at financial institutions in certain states pursuant to the respective states' insurance regulatory requirements | 4,560 | 4,680 | |
Fair value of funds deposited with third parties to be used as collateral to secure various liabilities on behalf of insureds, cedants and other creditors | 35 | 28 | |
Fair value of other investments pledged as collateral securing outstanding letters of credit | 3 | 21 | |
Fair value of owned securities held by an insurance subsidiary pledged into a Lloyd's trust account to support capital requirements for the Company's operations at Lloyd's | 97 | 140 | |
Proceeds from sales of equity securities | 92 | 59 | 158 |
Proceeds from sale of real estate investments | 69 | 31 | $ 15 |
Accumulated depreciation on real estate held for investment purposes | 332 | 320 | |
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2017 | 84 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2018 | 74 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2019 | 62 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2020 | 46 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2021 | 34 | ||
Future minimum rental income expected on operating leases relating to the Company's real estate properties for 2022 and thereafter | $ 45 | ||
Maximum original maturity of short-term securities | 1 year | ||
Combined average days to maturity of short-term securities (in days) | 80 days | ||
Amortized cost of short-term securities (which approximates fair value) | $ 4,870 | $ 4,670 |
Investments (details) - Investm
Investments (details) - Investment Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment disclosure details | |||
Fixed maturities, amortized cost | $ 59,650 | $ 58,878 | |
Gross unrealized gains | 1,369 | 2,100 | |
Gross unrealized losses | 504 | 320 | |
Fixed maturities, at fair value | 60,515 | 60,658 | |
Equity securities, cost | 504 | 528 | |
Gross unrealized gains | 236 | 190 | |
Gross unrealized losses | 8 | 13 | |
Equity securities, at fair value | 732 | 705 | |
Continuous unrealized loss position less than 12 months, fair value | 18,310 | 11,221 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 482 | 233 | |
Continuous unrealized loss position 12 months or longer, fair value | 561 | 1,008 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 30 | 100 | |
Continuous unrealized loss position, total, fair value | 18,871 | 12,229 | |
Continuous unrealized loss position, total, gross unrealized losses | 512 | 333 | |
Available-for-sale securities for which fair value is less than 80% of amortized cost, 3 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 | ||
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 (less than) | 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 (less than) | 1.00% | ||
Below investment grade [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | $ 1,760 | 1,710 | |
Fixed maturities [Member] | |||
Investment disclosure details | |||
Gross realized gains | 79 | 95 | $ 44 |
Gross realized losses | 20 | 14 | 12 |
Continuous unrealized loss position less than 12 months, fair value | 18,263 | 11,126 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 480 | 224 | |
Continuous unrealized loss position 12 months or longer, fair value | 492 | 937 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 24 | 96 | |
Continuous unrealized loss position, total, fair value | 18,755 | 12,063 | |
Continuous unrealized loss position, total, gross unrealized losses | 504 | 320 | |
Available-for-sale securities for which fair value is less than 80% of amortized cost, 3 months or less | 1 | ||
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 | 3 | ||
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 2,031 | 2,202 | |
Gross unrealized gains | 9 | 8 | |
Gross unrealized losses | 5 | 16 | |
Fixed maturities, at fair value | 2,035 | 2,194 | |
Continuous unrealized loss position less than 12 months, fair value | 1,124 | 1,820 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 5 | 15 | |
Continuous unrealized loss position 12 months or longer, fair value | 28 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 1 | ||
Continuous unrealized loss position, total, fair value | 1,124 | 1,848 | |
Continuous unrealized loss position, total, gross unrealized losses | 5 | 16 | |
Obligations of states, municipalities and political subdivisions [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 31,550 | 30,027 | |
Gross unrealized gains | 712 | 1,393 | |
Gross unrealized losses | 352 | 9 | |
Fixed maturities, at fair value | 31,910 | 31,411 | |
Continuous unrealized loss position less than 12 months, fair value | 9,781 | 928 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 352 | 7 | |
Continuous unrealized loss position 12 months or longer, fair value | 12 | 142 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 2 | ||
Continuous unrealized loss position, total, fair value | 9,793 | 1,070 | |
Continuous unrealized loss position, total, gross unrealized losses | 352 | 9 | |
Obligations of states, municipalities and political subdivisions, local general obligation [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 13,955 | 12,744 | |
Gross unrealized gains | 271 | 577 | |
Gross unrealized losses | 182 | 3 | |
Fixed maturities, at fair value | 14,044 | 13,318 | |
Obligations of states, municipalities and political subdivisions, revenue [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 10,910 | 9,492 | |
Gross unrealized gains | 215 | 472 | |
Gross unrealized losses | 147 | 4 | |
Fixed maturities, at fair value | 10,978 | 9,960 | |
Obligations of states, municipalities and political subdivisions, state general obligation [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,717 | 1,978 | |
Gross unrealized gains | 36 | 97 | |
Gross unrealized losses | 22 | 2 | |
Fixed maturities, at fair value | 1,731 | 2,073 | |
Obligations of states, municipalities and political subdivisions, pre-refunded [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 4,968 | 5,813 | |
Gross unrealized gains | 190 | 247 | |
Gross unrealized losses | 1 | ||
Fixed maturities, at fair value | 5,157 | 6,060 | |
Debt securities issued by foreign governments [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,631 | 1,829 | |
Gross unrealized gains | 34 | 45 | |
Gross unrealized losses | 3 | 1 | |
Fixed maturities, at fair value | 1,662 | 1,873 | |
Continuous unrealized loss position less than 12 months, fair value | 360 | 172 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 3 | 1 | |
Continuous unrealized loss position, total, fair value | 360 | 172 | |
Continuous unrealized loss position, total, gross unrealized losses | 3 | 1 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 1,614 | 1,863 | |
Gross unrealized gains | 100 | 124 | |
Gross unrealized losses | 6 | 6 | |
Fixed maturities, at fair value | 1,708 | 1,981 | |
Continuous unrealized loss position less than 12 months, fair value | 528 | 473 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 5 | 4 | |
Continuous unrealized loss position 12 months or longer, fair value | 43 | 57 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 1 | 2 | |
Continuous unrealized loss position, total, fair value | 571 | 530 | |
Continuous unrealized loss position, total, gross unrealized losses | 6 | 6 | |
Residential mortgage-backed pass-through securities classified as available-for-sale, GNMA, FNMA, FHLMC and Canadian Government [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 563 | 676 | |
Residential collateralized mortgage obligations [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | $ 1,150 | $ 1,300 | |
Percent guaranteed by or fully collateralized by securities issued by GNMA, FNMA or FHLMC | 51.00% | 48.00% | |
Non-guaranteed residential collateralized mortgage obligations [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | $ 566 | $ 683 | |
All other corporate bonds [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 22,737 | 22,854 | |
Gross unrealized gains | 508 | 523 | |
Gross unrealized losses | 138 | 288 | |
Fixed maturities, at fair value | 23,107 | 23,089 | |
Continuous unrealized loss position less than 12 months, fair value | 6,470 | 7,725 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 115 | 197 | |
Continuous unrealized loss position 12 months or longer, fair value | 437 | 710 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 23 | 91 | |
Continuous unrealized loss position, total, fair value | 6,907 | 8,435 | |
Continuous unrealized loss position, total, gross unrealized losses | 138 | 288 | |
Commercial mortgage-backed securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 938 | 865 | |
Commercial mortgage-backed securities, containing guarantees by the U.S. government or a government-sponsored enterprise [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 290 | 303 | |
Commercial mortgage-backed securities, non-guaranteed securities [Member] | |||
Investment disclosure details | |||
Fixed maturities, at fair value | 648 | 562 | |
Other fixed maturities [Member] | |||
Investment disclosure details | |||
Available-for-sale securities for which fair value is less than 80% of amortized cost, 3 months or less | 1 | ||
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 | 3 | ||
Redeemable preferred stock [Member] | |||
Investment disclosure details | |||
Fixed maturities, amortized cost | 87 | 103 | |
Gross unrealized gains | 6 | 7 | |
Fixed maturities, at fair value | 93 | 110 | |
Continuous unrealized loss position less than 12 months, fair value | 8 | ||
Continuous unrealized loss position, total, fair value | 8 | ||
Equity securities [Member] | |||
Investment disclosure details | |||
Gross realized gains | 17 | 16 | 27 |
Gross realized losses | 3 | 10 | 3 |
Continuous unrealized loss position less than 12 months, fair value | 47 | 95 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 2 | 9 | |
Continuous unrealized loss position 12 months or longer, fair value | 69 | 71 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 6 | 4 | |
Continuous unrealized loss position, total, fair value | 116 | 166 | |
Continuous unrealized loss position, total, gross unrealized losses | 8 | 13 | |
Available-for-sale securities for which fair value is less than 80% of amortized cost, 3 months or less | 1 | ||
Available-for-sale securities for which fair value is less than 80% of amortized cost, total | 1 | ||
Public common stock [Member] | |||
Investment disclosure details | |||
Equity securities, cost | 390 | 386 | |
Gross unrealized gains | 216 | 164 | |
Gross unrealized losses | 3 | 7 | |
Equity securities, at fair value | 603 | 543 | |
Continuous unrealized loss position less than 12 months, fair value | 45 | 48 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 2 | 6 | |
Continuous unrealized loss position 12 months or longer, fair value | 10 | 33 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 1 | 1 | |
Continuous unrealized loss position, total, fair value | 55 | 81 | |
Continuous unrealized loss position, total, gross unrealized losses | 3 | 7 | |
Non-redeemable preferred stock [Member] | |||
Investment disclosure details | |||
Equity securities, cost | 114 | 142 | |
Gross unrealized gains | 20 | 26 | |
Gross unrealized losses | 5 | 6 | |
Equity securities, at fair value | 129 | 162 | |
Continuous unrealized loss position less than 12 months, fair value | 2 | 47 | |
Continuous unrealized loss position less than 12 months, gross unrealized losses | 3 | ||
Continuous unrealized loss position 12 months or longer, fair value | 59 | 38 | |
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 5 | 3 | |
Continuous unrealized loss position, total, fair value | 61 | 85 | |
Continuous unrealized loss position, total, gross unrealized losses | 5 | 6 | |
Real estate [Member] | |||
Investment disclosure details | |||
Gross realized gains | 7 | 4 | 6 |
Gross realized losses | $ 0 | $ 0 | $ 0 |
Investments (details) - Impairm
Investments (details) - Impairment Charges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impairment charges | |||
Impairment charges | $ 29 | $ 52 | $ 26 |
Fixed maturities [Member] | |||
Impairment charges | |||
Impairment charges | 15 | 13 | 16 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||
Impairment charges | |||
Impairment charges | 1 | ||
All other corporate bonds [Member] | |||
Impairment charges | |||
Impairment charges | 15 | 13 | 15 |
Equity securities [Member] | |||
Impairment charges | |||
Impairment charges | 12 | 37 | 9 |
Public common stock [Member] | |||
Impairment charges | |||
Impairment charges | 9 | 37 | 9 |
Non-redeemable preferred stock [Member] | |||
Impairment charges | |||
Impairment charges | 3 | ||
Other investments [Member] | |||
Impairment charges | |||
Impairment charges | $ 2 | $ 2 | $ 1 |
Investments (details) - OTTI Ro
Investments (details) - OTTI Rollforward - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Roll-forward of the credit losses on fixed maturities recognized in the consolidated statement of income for which a portion of the other-than-temporary impairment was recognized in other comprehensive income (loss) [Roll Forward] | ||
Cumulative OTTI credit losses recognized for securities held, beginning of period | $ 83 | $ 99 |
Additions for OTTI securities where no credit losses were previously recognized | 13 | 2 |
Reductions due to sales/defaults of credit-impaired securities | (7) | (10) |
Adjustments to book value of credit-impaired securities due to changes in cash flows | (4) | (8) |
Cumulative OTTI credit losses recognized for securities still held, end of period | 85 | 83 |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | ||
Roll-forward of the credit losses on fixed maturities recognized in the consolidated statement of income for which a portion of the other-than-temporary impairment was recognized in other comprehensive income (loss) [Roll Forward] | ||
Cumulative OTTI credit losses recognized for securities held, beginning of period | 32 | 40 |
Reductions due to sales/defaults of credit-impaired securities | (6) | |
Adjustments to book value of credit-impaired securities due to changes in cash flows | (1) | (2) |
Cumulative OTTI credit losses recognized for securities still held, end of period | 31 | 32 |
All other corporate bonds [Member] | ||
Roll-forward of the credit losses on fixed maturities recognized in the consolidated statement of income for which a portion of the other-than-temporary impairment was recognized in other comprehensive income (loss) [Roll Forward] | ||
Cumulative OTTI credit losses recognized for securities held, beginning of period | 51 | 59 |
Additions for OTTI securities where no credit losses were previously recognized | 13 | 2 |
Reductions due to sales/defaults of credit-impaired securities | (7) | (4) |
Adjustments to book value of credit-impaired securities due to changes in cash flows | (3) | (6) |
Cumulative OTTI credit losses recognized for securities still held, end of period | $ 54 | $ 51 |
Investments (details) - Concent
Investments (details) - Concentrations and Credit Quality - Credit Concentration Risk [Member] - Stockholders' Equity, Total [Member] - Minimum [Member] | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | ||
Investment disclosure details | ||
Concentration risk as a percentage of shareholders' equity | 5.00% | 5.00% |
Obligations of the Canadian government [Member] | ||
Investment disclosure details | ||
Concentration risk as a percentage of shareholders' equity | 5.00% |
Investments (details) - Net Inv
Investments (details) - Net Investment Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net investment income | |||
Gross investment income | $ 2,340 | $ 2,420 | $ 2,826 |
Investment expenses | 38 | 41 | 39 |
Net investment income | 2,302 | 2,379 | 2,787 |
Fixed maturities [Member] | |||
Net investment income | |||
Gross investment income | 1,981 | 2,091 | 2,244 |
Equity securities [Member] | |||
Net investment income | |||
Gross investment income | 37 | 39 | 40 |
Short-term securities [Member] | |||
Net investment income | |||
Gross investment income | 29 | 12 | 9 |
Real estate [Member] | |||
Net investment income | |||
Gross investment income | 51 | 48 | 44 |
Other investments [Member] | |||
Net investment income | |||
Gross investment income | $ 242 | $ 230 | $ 489 |
Investments (details) - Changes
Investments (details) - Changes in Net Unrealized Investment Gains - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in net unrealized investment gains [Roll Forward] | |||
Changes in net unrealized investment gains | $ (887) | $ (1,429) | $ 195 |
Income tax expense (benefit) | (289) | (392) | 125 |
Change in net unrealized gain on investment securities, net of tax | (598) | (1,037) | 70 |
Balance, beginning of year | (157) | ||
Balance, end of year | (755) | (157) | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in net unrealized investment gains [Roll Forward] | |||
Changes in net unrealized investment gains | (887) | (1,429) | 195 |
Income tax expense (benefit) | (289) | (392) | 125 |
Change in net unrealized gain on investment securities, net of tax | (598) | (1,037) | 70 |
Changes in Net Unrealized Gains on Investment Securities [Member] | |||
Changes in net unrealized investment gains [Roll Forward] | |||
Changes in net unrealized investment gains | (862) | (1,034) | 978 |
Income tax expense (benefit) | (303) | (357) | 334 |
Change in net unrealized gain on investment securities, net of tax | (559) | (677) | 644 |
Balance, beginning of year | 1,289 | 1,966 | 1,322 |
Balance, end of year | 730 | 1,289 | 1,966 |
Changes in Net Unrealized Gains on Investment Securities [Member] | Fixed maturities [Member] | |||
Changes in net unrealized investment gains [Roll Forward] | |||
Changes in net unrealized investment gains | (915) | (893) | 913 |
Changes in Net Unrealized Gains on Investment Securities [Member] | Equity securities [Member] | |||
Changes in net unrealized investment gains [Roll Forward] | |||
Changes in net unrealized investment gains | 51 | (143) | 63 |
Changes in Net Unrealized Gains on Investment Securities [Member] | Other investments [Member] | |||
Changes in net unrealized investment gains [Roll Forward] | |||
Changes in net unrealized investment gains | $ 2 | $ 2 | $ 2 |
Investments (details) - Derivat
Investments (details) - Derivatives - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Futures [Member] | U.S. Treasury notes contracts [Member] | ||
Derivatives | ||
Notional value of open contracts | $ 400 | $ 400 |
Fair Value Measurements (detail
Fair Value Measurements (details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Measurements disclosure | ||
Percent of fixed maturities for which a pricing service estimates fair value | 98.00% | 98.00% |
Percent change in monthly price at which securities are further evaluated | 10.00% | |
Fair value of the fixed maturities for which the Company used an internal pricing matrix | $ 99 | $ 101 |
Fair value of the fixed maturities for which the Company received a broker quote | $ 85 | $ 117 |
Percent of short-term securities for which a pricing service estimates fair value | 98.00% | 99.00% |
Percent of debt, including commercial paper, for which a pricing service estimates fair value | 100.00% | 100.00% |
Fair Value Measurements (deta67
Fair Value Measurements (details) - Fair Value Hierarchy - Recurring basis [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | $ 61,300 | $ 61,419 |
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 | 2,709 | 2,813 |
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 | 58,371 | 58,350 |
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 | 220 | 256 |
Fixed maturities [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 60,515 | 60,658 |
Convertible bonds held containing embedded conversion options that are valued separately from the host bond contract and disclosed in Level 2 | 0 | 2 |
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 | 2,038 | 2,197 |
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 | 58,293 | 58,243 |
Convertible bonds held containing embedded conversion options that are valued separately from the host bond contract and disclosed in Level 2 | 0 | 2 |
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 | 184 | 218 |
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 | 2,035 | 2,194 |
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 | 2,035 | 2,194 |
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 | 31,910 | 31,411 |
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 | 31,898 | 31,398 |
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 | 12 | 13 |
Debt securities issued by foreign governments [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 1,662 | 1,873 |
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 | 1,662 | 1,873 |
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 | 1,708 | 1,981 |
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 | 1,704 | 1,957 |
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 | 4 | 24 |
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 | 23,107 | 23,089 |
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 | 22,939 | 22,915 |
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 | 168 | 174 |
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 | 93 | 110 |
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 | 3 | 3 |
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 | 90 | 100 |
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 | 7 | |
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 | 732 | 705 |
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 | 654 | 598 |
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 | 78 | 107 |
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 | 603 | 543 |
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 | 603 | 543 |
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 | 129 | 162 |
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 | 51 | 55 |
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 | 78 | 107 |
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 | 53 | 56 |
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 | 17 | 18 |
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 | 36 | 38 |
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 | 17 | 18 |
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 | 17 | 18 |
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 | 36 | 38 |
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 | $ 36 | $ 38 |
Fair Value Measurements (deta68
Fair Value Measurements (details) - Changes in Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in Level 3 fair value category [Roll Forward] | ||
Level 3 fair value category, beginning balance | $ 256 | $ 268 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains | 8 | 3 |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases (decreases) in other comprehensive income | 5 | (3) |
Level 3 fair value category purchases | 123 | 203 |
Level 3 fair value category sales | (29) | (9) |
Level 3 fair value category settlements/maturities | (66) | (41) |
Gross transfers into Level 3 | 19 | 21 |
Gross transfers out of Level 3 | (96) | (186) |
Level 3 fair value category, ending balance | 220 | 256 |
Level 3 fair value category, 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 | (2) | (1) |
Fixed maturities [Member] | ||
Changes in Level 3 fair value category [Roll Forward] | ||
Level 3 fair value category, beginning balance | 218 | 232 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains | 3 | 1 |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases (decreases) in other comprehensive income | 2 | (4) |
Level 3 fair value category purchases | 123 | 202 |
Level 3 fair value category sales | (19) | (7) |
Level 3 fair value category settlements/maturities | (66) | (41) |
Gross transfers into Level 3 | 19 | 21 |
Gross transfers out of Level 3 | (96) | (186) |
Level 3 fair value category, ending balance | 184 | 218 |
Other investments [Member] | ||
Changes in Level 3 fair value category [Roll Forward] | ||
Level 3 fair value category, beginning balance | 38 | 36 |
Level 3 fair value category, total realized and unrealized investment gains (losses) reported in net realized investment gains | 5 | 2 |
Level 3 fair value category, total unrealized investment gains (losses) reported in increases (decreases) in other comprehensive income | 3 | 1 |
Level 3 fair value category purchases | 1 | |
Level 3 fair value category sales | (10) | (2) |
Level 3 fair value category, ending balance | 36 | 38 |
Level 3 fair value category, 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 | $ (2) | $ (1) |
Fair Value Measurements Footnot
Fair Value Measurements Footnote (details) - Financial Instruments - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments | ||
Short-term securities | $ 4,865 | $ 4,671 |
Commercial paper amount | 100 | 100 |
Fair Value [Member] | ||
Financial Instruments | ||
Short-term securities | 4,865 | 4,671 |
Debt | 7,262 | 7,180 |
Commercial paper amount | 100 | 100 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Instruments | ||
Short-term securities | 1,223 | 1,685 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Instruments | ||
Short-term securities | 3,607 | 2,958 |
Debt | 7,262 | 7,180 |
Commercial paper amount | 100 | 100 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Instruments | ||
Short-term securities | 35 | 28 |
Carrying Value [Member] | ||
Financial Instruments | ||
Short-term securities | 4,865 | 4,671 |
Debt | 6,337 | 6,244 |
Commercial paper amount | $ 100 | $ 100 |
Reinsurance (details)
Reinsurance (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance disclosure | |||
Percentage of residual market business written directly by the Company for mandatory pools and associations and then ceded to the mandatory pool | 100.00% | ||
Written premiums, direct | $ 25,567 | $ 24,939 | $ 24,844 |
Written premiums, assumed | 928 | 843 | 788 |
Written premiums, ceded | (1,537) | (1,661) | (1,728) |
Total net written premiums | 24,958 | 24,121 | 23,904 |
Earned premiums, direct | 25,262 | 24,740 | 24,810 |
Earned premiums, assumed | 875 | 814 | 743 |
Earned premiums, ceded | (1,603) | (1,680) | (1,840) |
Total net earned premiums | $ 24,534 | $ 23,874 | $ 23,713 |
Percentage of assumed earned premiums to net earned premiums | 3.60% | 3.40% | 3.10% |
Ceded claims and claim adjustment expenses incurred | $ 762 | $ 1,034 | $ 953 |
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses | 3,181 | 3,848 | |
Allowance for uncollectible reinsurance | (116) | (157) | |
Net reinsurance recoverables | 3,065 | 3,691 | |
Reinsurance recoverables, mandatory pools and associations | 2,054 | 2,015 | |
Reinsurance recoverables, structured settlements | 3,168 | 3,204 | |
Total reinsurance recoverables | 8,287 | $ 8,910 | |
Terrorism Risk Insurance Program, annual aggregate industry loss minimum in order for a loss to be covered, next fiscal year | 140 | ||
Terrorism Risk Insurance Program, ultimate annual aggregate industry loss minimum in order for a loss to be covered | $ 200 | ||
Terrorism Risk Insurance Program, percentage of subject losses reimbursed by the Federal Government, after insurer deductible, subject to annual cap, next fiscal year | 83.00% | ||
Terrorism Risk Insurance Program, remaining life of the program (in years) | 4 years | ||
Terrorism Risk Insurance Program, ultimate percentage of subject losses reimbursed by the Federal Government, after insurer deductible, subject to annual cap | 80.00% | ||
Terrorism Risk Insurance Program, percentage of insurer's direct earned premiums for covered lines for the preceding calendar year at which the deductible is set | 20.00% | ||
Terrorism Risk Insurance Program, Company's estimated deductible for the next fiscal year | $ 2,450 | ||
Terrorism Risk Insurance Program, annual cap limiting amount of aggregate subject losses for all participating insurers | $ 100,000 |
Goodwill (details)
Goodwill (details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill by segment | ||
Goodwill | $ 3,580 | $ 3,573 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 2,227 | 2,225 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 549 | 549 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 778 | 773 |
Other [Member] | ||
Goodwill by segment | ||
Goodwill | $ 26 | $ 26 |
Goodwill (details) - Other Inta
Goodwill (details) - Other Intangible Assets - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other intangible assets by major asset class | |||
Intangible assets subject to amortization, gross carrying amount | $ 210 | $ 210 | |
Intangible assets subject to amortization, accumulated amortization | 159 | 148 | |
Intangible assets subject to amortization, net | 51 | 62 | |
Amortization expense for other intangible assets | 11 | $ 26 | $ 46 |
Estimated intangible asset amortization expense, 2017 | 9 | ||
Estimated intangible asset amortization expense, 2018 | 8 | ||
Estimated intangible asset amortization expense, 2019 | 6 | ||
Estimated intangible asset amortization expense, 2020 | 5 | ||
Estimated intangible asset amortization expense, 2021 | $ 5 |
Goodwill (details) - Total Inta
Goodwill (details) - Total Intangibles - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Other Intangible Assets disclosure | ||
Intangible assets not subject to amortization | $ 217 | $ 217 |
Total other intangible assets, gross carrying amount | 427 | 427 |
Total other intangible assets, accumulated amortization | 159 | 148 |
Total other intangible assets, net | $ 268 | $ 279 |
Insurance Claim Reserves (detai
Insurance Claim Reserves (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance Claim Reserves disclosure | |||
Amount of decrease in gross claims and claim adjustment expense reserves | $ 343 | $ 1,550 | |
Amount of decrease in reinsurance recoverables on unpaid losses | $ 468 | $ 339 | |
Reserves for long-term disability and annuity claim payments primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, discount rate (percent) | 5.00% | 5.00% | |
Reserves for long-term disability and annuity claim payments primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, net of discount | $ 2,170 | $ 2,130 | |
Discount included in reserves for long-term disability and annuity claim payments primarily arising from workers' compensation insurance and workers' compensation excess insurance policies | 1,083 | 1,066 | |
Accretion of discount | 50 | 51 | $ 50 |
Asbestos and environmental claims reserves, balance | $ 1,710 | $ 2,170 |
Insurance Claim Reserves (det75
Insurance Claim Reserves (details) - Reserve Detail for Claims and Claim Adjustment Expenses - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | |||
Claims and claim adjustment expense reserves at beginning of year | $ 48,295 | $ 49,850 | |
Net reserves at end of year | 39,948 | ||
Reinsurance recoverables on unpaid losses | 8,001 | ||
Claims and claim adjustment expense reserves at end of year | 47,949 | 48,295 | $ 49,850 |
Property casualty [Member] | |||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | |||
Claims and claim adjustment expense reserves at beginning of year | 48,272 | 49,824 | 50,865 |
Reinsurance recoverables on unpaid losses | 8,449 | 8,788 | 9,280 |
Net reserves at beginning of year | 39,823 | 41,036 | 41,585 |
Estimated claims and claim adjustment expenses for claims arising in the current year | 15,675 | 14,471 | 14,688 |
Estimated decrease in claims and claim adjustment expenses for claims arising in prior years | (680) | (817) | (885) |
Total increases | 14,995 | 13,654 | 13,803 |
Claims and claim adjustment expense payments for claims arising in current year | 6,220 | 5,725 | 5,895 |
Claims and claim adjustment expense payments for claims arising in prior years | 8,576 | 8,749 | 8,171 |
Total payments | 14,796 | 14,474 | 14,066 |
Acquisition | 2 | ||
Unrealized foreign exchange gain | (74) | (395) | (286) |
Net reserves at end of year | 39,948 | 39,823 | 41,036 |
Reinsurance recoverables on unpaid losses | 7,981 | 8,449 | 8,788 |
Claims and claim adjustment expense reserves at end of year | 47,929 | 48,272 | $ 49,824 |
Accident and health [Member] | |||
Reconciliation of beginning and ending reserve balances for claims and claim adjustment expenses [Roll Forward] | |||
Claims and claim adjustment expense reserves at beginning of year | 23 | ||
Reinsurance recoverables on unpaid losses | 20 | ||
Claims and claim adjustment expense reserves at end of year | $ 20 | $ 23 |
Insurance Claim Reserves Footno
Insurance Claim Reserves Footnote (details) - Asbestos Payment - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asbestos Direct Action Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Settlement payment | $ 579 | $ 579 | |
PPG Industries, Inc Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Settlement payment | $ 524 |
Insurance Claim Reserves (det77
Insurance Claim Reserves (details) - Prior Year Reserve Development by Segment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for claims and claim adjustment expense | |||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | $ 771 | $ 941 | $ 941 |
Business Insurance [Member] | |||
Liability for claims and claim adjustment expense | |||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | 424 | 332 | 347 |
Increase to net favorable prior year reserve development related to workers' compensation reinsurance pool for accident years 1996 and prior | 162 | ||
Bond & Specialty Insurance [Member] | |||
Liability for claims and claim adjustment expense | |||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | 350 | 281 | 428 |
Personal Insurance [Member] | |||
Liability for claims and claim adjustment expense | |||
Net favorable (unfavorable) prior year reserve development impacting the Company's results of operations | $ (3) | $ 328 | $ 166 |
Insurance Claim Reserves (det78
Insurance Claim Reserves (details) - Claims and Claim Adjustment Expenses Reserves Summary - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | $ 40,951 | |||
Discount (Net of Reinsurance) | (1,003) | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 39,948 | |||
Reinsurance Recoverables on Unpaid Losses | 8,001 | |||
Claims and Claim Adjustment Reserves | 47,949 | $ 48,295 | $ 49,850 | |
Discount on reinsurance recoverables for long-term disability and annuity claim payments included in discount (net of reinsurance) | 80 | |||
Property casualty [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 40,951 | |||
Discount (Net of Reinsurance) | (1,003) | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 39,948 | 39,823 | 41,036 | $ 41,585 |
Reinsurance Recoverables on Unpaid Losses | 7,981 | 8,449 | 8,788 | 9,280 |
Claims and Claim Adjustment Reserves | 47,929 | 48,272 | 49,824 | $ 50,865 |
Accident and health [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Reinsurance Recoverables on Unpaid Losses | 20 | |||
Claims and Claim Adjustment Reserves | 20 | 23 | ||
Business Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 7,034 | |||
Business Insurance [Member] | Commercial property [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 866 | |||
Business Insurance [Member] | Commercial multi-peril [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 3,414 | |||
Business Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,270 | |||
Business Insurance [Member] | Workers' compensation [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 15,439 | |||
Bond & Specialty Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,042 | |||
Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 450 | |||
Personal Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,277 | |||
Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 742 | |||
Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 776 | |||
Reportable Segments [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Claims and Claim Adjustment Reserves | 47,929 | 48,272 | 49,824 | |
Reportable Segments [Member] | Property casualty [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 35,310 | |||
Discount (Net of Reinsurance) | (1,000) | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 34,310 | |||
Reinsurance Recoverables on Unpaid Losses | 2,558 | |||
Claims and Claim Adjustment Reserves | 36,868 | |||
Reportable Segments [Member] | Business Insurance [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Claims and Claim Adjustment Reserves | 39,555 | 39,983 | 40,713 | |
Reportable Segments [Member] | Business Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 7,034 | |||
Discount (Net of Reinsurance) | (168) | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 6,866 | |||
Reinsurance Recoverables on Unpaid Losses | 712 | |||
Claims and Claim Adjustment Reserves | 7,578 | |||
Reportable Segments [Member] | Business Insurance [Member] | Commercial property [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 866 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 866 | |||
Reinsurance Recoverables on Unpaid Losses | 194 | |||
Claims and Claim Adjustment Reserves | 1,060 | |||
Reportable Segments [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 3,414 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 3,414 | |||
Reinsurance Recoverables on Unpaid Losses | 81 | |||
Claims and Claim Adjustment Reserves | 3,495 | |||
Reportable Segments [Member] | Business Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,270 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 2,270 | |||
Reinsurance Recoverables on Unpaid Losses | 256 | |||
Claims and Claim Adjustment Reserves | 2,526 | |||
Reportable Segments [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 15,439 | |||
Discount (Net of Reinsurance) | (832) | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 14,607 | |||
Reinsurance Recoverables on Unpaid Losses | 729 | |||
Claims and Claim Adjustment Reserves | 15,336 | |||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Claims and Claim Adjustment Reserves | 3,323 | 3,615 | 3,984 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,042 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 2,042 | |||
Reinsurance Recoverables on Unpaid Losses | 82 | |||
Claims and Claim Adjustment Reserves | 2,124 | |||
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 450 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 450 | |||
Reinsurance Recoverables on Unpaid Losses | 17 | |||
Claims and Claim Adjustment Reserves | 467 | |||
Reportable Segments [Member] | Personal Insurance [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Claims and Claim Adjustment Reserves | 5,051 | $ 4,674 | $ 5,127 | |
Reportable Segments [Member] | Personal Insurance [Member] | Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 2,277 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 2,277 | |||
Reinsurance Recoverables on Unpaid Losses | 465 | |||
Claims and Claim Adjustment Reserves | 2,742 | |||
Reportable Segments [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 742 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 742 | |||
Reinsurance Recoverables on Unpaid Losses | 2 | |||
Claims and Claim Adjustment Reserves | 744 | |||
Reportable Segments [Member] | Personal Insurance [Member] | International - Canada [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 776 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 776 | |||
Reinsurance Recoverables on Unpaid Losses | 20 | |||
Claims and Claim Adjustment Reserves | 796 | |||
Reconciling Items [Member] | Other insurance contracts [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 3,661 | |||
Discount (Net of Reinsurance) | (3) | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 3,658 | |||
Reinsurance Recoverables on Unpaid Losses | 2,195 | |||
Claims and Claim Adjustment Reserves | 5,853 | |||
Reconciling Items [Member] | Unallocated loss adjustment expense reserve [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 1,936 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 1,936 | |||
Reinsurance Recoverables on Unpaid Losses | 40 | |||
Claims and Claim Adjustment Reserves | 1,976 | |||
Reconciling Items [Member] | Structured settements [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Reinsurance Recoverables on Unpaid Losses | 3,168 | |||
Claims and Claim Adjustment Reserves | 3,168 | |||
Reconciling Items [Member] | Other [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Net Undiscounted Claims and Claim Adjustment Expense Reserves | 44 | |||
Subtotal: Net Claims and Allocated Claim Adjustment Expense Reserves | 44 | |||
Reinsurance Recoverables on Unpaid Losses | 20 | |||
Claims and Claim Adjustment Reserves | $ 64 |
Insurance Claim Reserves (det79
Insurance Claim Reserves (details) - Claim Development $ in Millions | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Claims Development | ||||||||||
Total net liability (Audited) | $ 40,951 | |||||||||
Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Total net liability (Audited) | 40,951 | |||||||||
Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 9,254 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 5,253 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 4,001 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 3,033 | |||||||||
Total net liability (Audited) | 7,034 | |||||||||
Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 4,108 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 3,406 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 702 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 164 | |||||||||
Total net liability (Audited) | 866 | |||||||||
Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 17,153 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 14,044 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 3,109 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 305 | |||||||||
Total net liability (Audited) | 3,414 | |||||||||
Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 6,255 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 4,169 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 2,086 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 184 | |||||||||
Total net liability (Audited) | 2,270 | |||||||||
Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 21,999 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 11,788 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 10,211 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 5,228 | |||||||||
Total net liability (Audited) | 15,439 | |||||||||
Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 5,754 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 3,786 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 1,968 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 74 | |||||||||
Total net liability (Audited) | 2,042 | |||||||||
Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 868 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 482 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 386 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 64 | |||||||||
Total net liability (Audited) | 450 | |||||||||
Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 11,476 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 9,452 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 2,024 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 253 | |||||||||
Total net liability (Audited) | 2,277 | |||||||||
Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 7,857 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 7,136 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 721 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 21 | |||||||||
Total net liability (Audited) | 742 | |||||||||
Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 4,046 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 3,306 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Disclosed Accident Years (Audited) | 740 | |||||||||
Liability for Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Before Disclosed Accident Years (Audited) | 36 | |||||||||
Total net liability (Audited) | 776 | |||||||||
Short-duration Insurance Contracts, Accident Year 2007 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 824 | $ 865 | $ 883 | $ 888 | $ 919 | $ 968 | $ 1,089 | $ 1,087 | $ 1,162 | $ 1,136 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 726 | 713 | 697 | 682 | 632 | 549 | 467 | 316 | 134 | 32 |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 78 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 23,840 | |||||||||
Short-duration Insurance Contracts, Accident Year 2007 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,369 | 1,376 | 1,369 | 1,373 | 1,375 | 1,398 | 1,402 | 1,364 | 1,430 | 1,490 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,312 | 1,307 | 1,296 | 1,278 | 1,256 | 1,208 | 1,110 | 982 | 824 | 498 |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 51 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 96,767 | |||||||||
Short-duration Insurance Contracts, Accident Year 2007 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,341 | 1,328 | 1,340 | 1,358 | 1,373 | 1,390 | 1,448 | 1,484 | 1,519 | 1,554 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 936 | 910 | 880 | 845 | 802 | 747 | 683 | 589 | 450 | 216 |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 217 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 103,064 | |||||||||
Short-duration Insurance Contracts, Accident Year 2007 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 454 | 462 | 467 | 479 | 511 | 551 | 582 | 638 | 571 | 584 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 415 | 410 | 400 | 393 | 373 | 357 | 303 | 229 | 134 | 35 |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 4 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 11,018 | |||||||||
Short-duration Insurance Contracts, Accident Year 2007 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 362 | 364 | 368 | 377 | 371 | 369 | 359 | 361 | 365 | 372 |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 354 | 350 | 345 | 337 | 320 | 299 | 273 | 250 | 221 | $ 153 |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 2 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 51,611 | |||||||||
Short-duration Insurance Contracts, Accident Year 2008 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 935 | 931 | 946 | 994 | 1,041 | 1,079 | 1,222 | 1,209 | 1,143 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 799 | 759 | 734 | 694 | 615 | 497 | 359 | 154 | 35 | |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 88 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 25,385 | |||||||||
Short-duration Insurance Contracts, Accident Year 2008 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,681 | 1,688 | 1,674 | 1,684 | 1,674 | 1,688 | 1,683 | 1,674 | 1,725 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,617 | 1,602 | 1,581 | 1,551 | 1,490 | 1,396 | 1,264 | 1,103 | 712 | |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 47 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 108,382 | |||||||||
Short-duration Insurance Contracts, Accident Year 2008 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,617 | 1,617 | 1,621 | 1,634 | 1,639 | 1,683 | 1,734 | 1,745 | 1,714 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,162 | 1,130 | 1,088 | 1,036 | 961 | 875 | 752 | 571 | 274 | |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 237 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 107,565 | |||||||||
Short-duration Insurance Contracts, Accident Year 2008 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 631 | 643 | 672 | 712 | 716 | 697 | 743 | 769 | 579 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 590 | 579 | 562 | 529 | 471 | 387 | 281 | 157 | 47 | |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 24 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 6,463 | |||||||||
Short-duration Insurance Contracts, Accident Year 2008 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 396 | 395 | 399 | 405 | 399 | 394 | 393 | 404 | 400 | |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 385 | 381 | 374 | 360 | 339 | 317 | 294 | 262 | $ 171 | |
IBNR Reserves Dec. 31, 2016 (Audited) | $ 1 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 56,506 | |||||||||
Short-duration Insurance Contracts, Accident Year 2009 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 796 | 809 | 837 | 869 | 960 | 1,028 | 1,071 | 1,060 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 667 | 643 | 613 | 543 | 446 | 314 | 167 | 35 | ||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 95 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 25,457 | |||||||||
Short-duration Insurance Contracts, Accident Year 2009 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,509 | 1,514 | 1,514 | 1,511 | 1,498 | 1,501 | 1,506 | 1,484 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,449 | 1,436 | 1,408 | 1,360 | 1,264 | 1,121 | 958 | 603 | ||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 42 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 103,198 | |||||||||
Short-duration Insurance Contracts, Accident Year 2009 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,750 | 1,775 | 1,766 | 1,753 | 1,753 | 1,746 | 1,778 | 1,799 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,235 | 1,193 | 1,137 | 1,065 | 961 | 828 | 623 | 288 | ||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 272 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 104,229 | |||||||||
Short-duration Insurance Contracts, Accident Year 2009 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 641 | 655 | 660 | 680 | 686 | 665 | 624 | 592 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 592 | 563 | 497 | 460 | 390 | 310 | 167 | 36 | ||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 24 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 6,287 | |||||||||
Short-duration Insurance Contracts, Accident Year 2009 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 456 | 455 | 463 | 471 | 463 | 457 | 448 | 460 | ||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 436 | 425 | 409 | 384 | 355 | 327 | 287 | $ 192 | ||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 8 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 57,934 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 918 | 912 | 927 | 959 | 1,021 | 1,031 | 1,028 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 756 | 702 | 629 | 487 | 324 | 139 | 35 | |||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 108 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 27,678 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,898 | 1,892 | 1,895 | 1,861 | 1,832 | 1,826 | 1,711 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,798 | 1,763 | 1,698 | 1,579 | 1,395 | 1,180 | 709 | |||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 51 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 111,586 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,055 | 2,052 | 2,049 | 2,056 | 2,035 | 2,042 | 1,886 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,385 | 1,321 | 1,246 | 1,133 | 978 | 750 | 341 | |||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 354 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 116,837 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 653 | 668 | 661 | 679 | 679 | 612 | 571 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 597 | 565 | 482 | 396 | 291 | 152 | 33 | |||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 18 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 5,655 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 471 | 476 | 484 | 495 | 481 | 471 | 469 | |||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 432 | 415 | 385 | 356 | 318 | 282 | $ 185 | |||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 14 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 57,976 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 935 | 972 | 998 | 1,065 | 1,074 | 1,004 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 725 | 660 | 539 | 355 | 187 | 47 | ||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 146 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 27,210 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,287 | 2,296 | 2,286 | 2,269 | 2,244 | 2,235 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 2,156 | 2,088 | 1,979 | 1,803 | 1,573 | 1,060 | ||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 66 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 125,358 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,385 | 2,379 | 2,350 | 2,347 | 2,303 | 2,284 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,583 | 1,487 | 1,365 | 1,185 | 911 | 420 | ||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 430 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 135,061 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 545 | 601 | 632 | 639 | 596 | 565 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 447 | 414 | 324 | 249 | 143 | 33 | ||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 34 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 5,191 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 412 | 418 | 426 | 430 | 422 | 443 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 358 | 337 | 303 | 270 | 240 | $ 170 | ||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 18 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 57,704 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 892 | 913 | 935 | 985 | 989 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 589 | 489 | 295 | 150 | 32 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 184 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 24,384 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 895 | 889 | 924 | 988 | 1,054 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 872 | 865 | 845 | 770 | 453 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 13 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 28,183 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,888 | 1,888 | 1,903 | 1,883 | 1,885 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,699 | 1,590 | 1,424 | 1,246 | 795 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 88 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 104,419 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,337 | 1,325 | 1,327 | 1,350 | 1,294 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,235 | 1,134 | 960 | 753 | 467 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 35 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 214,780 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,445 | 2,456 | 2,457 | 2,456 | 2,447 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,536 | 1,394 | 1,217 | 940 | 443 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 519 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 133,417 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 601 | 605 | 614 | 591 | 538 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 383 | 342 | 255 | 160 | 38 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 137 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 4,824 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 140 | 175 | 249 | 262 | 255 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 111 | 110 | 124 | 108 | 42 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 9 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 1,148 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,428 | 2,432 | 2,448 | 2,454 | 2,417 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 2,376 | 2,311 | 2,189 | 1,983 | 1,503 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 15 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 793,669 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,019 | 2,018 | 2,029 | 2,056 | 2,136 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 2,008 | 1,993 | 1,964 | 1,901 | 1,508 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 1 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 259,006 | |||||||||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 383 | 384 | 400 | 398 | 419 | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 305 | 278 | 252 | 223 | $ 160 | |||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 37 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 53,046 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 940 | 958 | 975 | 965 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 498 | 363 | 175 | 35 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 256 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 21,836 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 731 | 737 | 755 | 789 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 703 | 683 | 610 | 389 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 10 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 22,141 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,609 | 1,620 | 1,623 | 1,615 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,304 | 1,167 | 987 | 644 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 122 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 82,936 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,245 | 1,240 | 1,236 | 1,235 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,039 | 884 | 675 | 435 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 67 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 197,041 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,506 | 2,540 | 2,545 | 2,553 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,413 | 1,237 | 954 | 458 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 651 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 128,111 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 630 | 606 | 565 | 510 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 352 | 252 | 154 | 34 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 204 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 4,371 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 146 | 199 | 246 | 240 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 131 | 128 | 113 | 37 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 6 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 1,006 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,044 | 2,049 | 2,095 | 2,108 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,935 | 1,814 | 1,628 | 1,251 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 36 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 694,650 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,375 | 1,365 | 1,397 | 1,488 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,344 | 1,317 | 1,269 | 994 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 4 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 149,373 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 441 | 453 | 461 | 467 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 324 | 293 | 262 | $ 187 | ||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 39 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 56,071 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 983 | 989 | 976 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 321 | 163 | 37 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 438 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 20,926 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 836 | 860 | 936 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 775 | 710 | 464 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 15 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 21,490 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,625 | 1,627 | 1,663 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,154 | 956 | 628 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 193 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 76,833 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,168 | 1,166 | 1,165 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 821 | 618 | 397 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 131 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 184,067 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,547 | 2,553 | 2,554 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,224 | 944 | 455 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 839 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 123,110 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 563 | 571 | 549 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 239 | 150 | 38 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 232 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 4,182 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 165 | 212 | 223 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 111 | 96 | 58 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 32 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 992 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,981 | 1,994 | 2,014 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,763 | 1,564 | 1,193 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 75 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 669,990 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,453 | 1,450 | 1,515 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,402 | 1,338 | 1,053 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 9 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 151,517 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 429 | 428 | 413 | |||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 291 | 256 | $ 183 | |||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 50 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 53,734 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 956 | 998 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 137 | 36 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 592 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 18,771 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 750 | 786 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 615 | 376 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 28 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 19,859 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,625 | 1,568 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 970 | 595 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 354 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 68,278 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,215 | 1,198 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 658 | 409 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 246 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 179,963 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,585 | 2,644 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 893 | 430 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 1,142 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 120,681 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 524 | 528 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 141 | 38 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 272 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 3,814 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 191 | 217 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 75 | 32 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 79 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 768 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,244 | 2,186 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,768 | 1,319 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 224 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 755,762 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,454 | 1,438 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,333 | 994 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 28 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 144,367 | |||||||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 347 | 348 | ||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 218 | $ 156 | ||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 58 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 46,093 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,075 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 35 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 908 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 13,810 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | Commercial property [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 896 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 441 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 131 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 19,327 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | Commercial multi-peril [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,662 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 585 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 658 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 56,471 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,290 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 416 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 516 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 173,790 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Insurance [Member] | Workers' compensation [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,768 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 421 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 1,651 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 108,357 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Bond & Specialty Insurance [Member] | General liability [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 512 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 30 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 405 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 2,676 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 226 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 54 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 128 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 595 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Personal Insurance [Member] | Automobile [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 2,779 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,610 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 646 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 839,962 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Personal Insurance [Member] | Homeowners (excluding Other) [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 1,556 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 1,049 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 307 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 129,630 | |||||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | ||||||||||
Claims Development | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | $ 349 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Audited for 2016) | 203 | |||||||||
IBNR Reserves Dec. 31, 2016 (Audited) | $ 34 | |||||||||
Cumulative Number of Reported Claims (Audited) | item | 44,337 |
Insurance Claim Reserves Foot80
Insurance Claim Reserves Footnote (details) - Historical Claim Duration | Dec. 31, 2016 |
Business Insurance [Member] | General liability [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 3.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 13.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 19.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 17.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 12.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 8.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 5.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 3.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.60% |
Business Insurance [Member] | Commercial property [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 51.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 31.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 8.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 2.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.80% |
Business Insurance [Member] | Commercial multi-peril [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 39.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 22.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 10.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 8.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 6.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 3.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 1.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 1.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.40% |
Business Insurance [Member] | Automobile [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 34.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 20.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 16.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 12.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 7.60% |
Business Insurance [Member] | Workers' compensation [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 17.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 19.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 11.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 7.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 5.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 4.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 3.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 2.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.90% |
Bond & Specialty Insurance [Member] | General liability [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 6.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 19.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 18.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 15.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 12.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 7.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 6.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 3.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.10% |
Bond & Specialty Insurance [Member] | Fidelity and surety [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 26.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 36.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 10.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | (3.60%) |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.80% |
Personal Insurance [Member] | Automobile [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 60.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 19.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 9.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 5.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.70% |
Personal Insurance [Member] | Homeowners (excluding Other) [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 71.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 20.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 3.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 1.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.70% |
Personal Insurance [Member] | International - Canada [Member] | Property casualty [Member] | |
Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 43.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 18.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 7.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 6.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 6.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 5.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 3.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.10% |
Insurance Claim Reserves (det81
Insurance Claim Reserves (details) - Asbestos and Environmental Reserves - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asbestos Direct Action Litigation [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Reduction to net favorable prior year reserve development due to interest awarded as part of damages relating to a legal matter | $ 77 | |||
Settlement amount | $ 502 | |||
Asbestos reserves [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Increase (decrease) to asbestos and environmental reserves | $ 225 | $ 224 | $ 250 | |
Net losses paid | $ 708 | $ 770 | $ 242 | |
Percent of total asbestos net paid losses related to policyholders with whom the Company had entered into settlement agreements limiting the Company's liability | 69.00% | 69.00% | 8.00% | |
Asbestos reserves [Member] | Asbestos Direct Action Litigation [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Settlement amount | $ 502 | |||
Asbestos reserves [Member] | PPG Industries, Inc Litigation [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Settlement amount | $ 518 | |||
Environmental reserves [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Increase (decrease) to asbestos and environmental reserves | 82 | 72 | $ 87 | |
Business Insurance [Member] | Asbestos reserves [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Increase (decrease) to asbestos and environmental reserves | 225 | 224 | 250 | |
Business Insurance [Member] | Asbestos reserves [Member] | Asbestos Direct Action Litigation [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Reduction to net favorable prior year reserve development due to interest awarded as part of damages relating to a legal matter | 77 | |||
Business Insurance [Member] | Environmental reserves [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Increase (decrease) to asbestos and environmental reserves | $ 82 | $ 72 | $ 87 |
Debt (details)
Debt (details) - USD ($) $ in Millions | Dec. 31, 2016 | Jun. 20, 2016 | Dec. 31, 2015 |
Debt disclosure | |||
Commercial paper amount | $ 100 | $ 100 | |
Total short-term debt | 550 | 500 | |
Schedule of debt | |||
Total long-term debt | 5,911 | 5,861 | |
Total debt principal | 6,461 | 6,361 | |
Unamortized fair value adjustment, debt | 47 | 49 | |
Unamortized debt issuance costs | (71) | (66) | |
Total debt | 6,437 | 6,344 | |
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | 700 | ||
6.25% Senior notes due June 20, 2016 [Member] | |||
Schedule of debt | |||
Current maturities of long-term debt | $ 400 | ||
Interest rate (percent) | 6.25% | 6.25% | |
5.75% Senior notes due December 15, 2017 [Member] | |||
Schedule of debt | |||
Current maturities of long-term debt | $ 450 | ||
Total long-term debt | $ 450 | ||
Interest rate (percent) | 5.75% | 5.75% | |
5.80% Senior notes due May 15, 2018 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 500 | $ 500 | |
Interest rate (percent) | 5.80% | 5.80% | |
5.90% Senior notes due June 2, 2019 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 500 | $ 500 | |
Interest rate (percent) | 5.90% | 5.90% | |
3.90% Senior notes due November 1, 2020 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 500 | $ 500 | |
Interest rate (percent) | 3.90% | 3.90% | |
7.75% Senior notes due April 15, 2026 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 200 | $ 200 | |
Interest rate (percent) | 7.75% | 7.75% | |
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 200 | ||
7.625% Junior subordinated debentures due December 15, 2027 [Member] | |||
Schedule of debt | |||
Total long-term debt | 125 | $ 125 | |
Unamortized fair value adjustment, debt | $ 14 | $ 15 | |
Interest rate (percent) | 7.625% | 7.625% | |
6.375% Senior notes due March 15, 2033 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 500 | $ 500 | |
Interest rate (percent) | 6.375% | 6.375% | |
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 500 | ||
6.75% Senior notes due June 20, 2036 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 400 | $ 400 | |
Interest rate (percent) | 6.75% | 6.75% | |
6.25% Senior notes due June 15, 2037 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 800 | $ 800 | |
Interest rate (percent) | 6.25% | 6.25% | |
5.35% Senior notes due November 1, 2040 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 750 | $ 750 | |
Interest rate (percent) | 5.35% | 5.35% | |
4.60% Senior notes due August 1, 2043 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 500 | $ 500 | |
Interest rate (percent) | 4.60% | 4.60% | |
4.30% Senior notes due August 25, 2045 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 400 | $ 400 | |
Interest rate (percent) | 4.30% | 4.30% | |
8.50% Junior subordinated debentures due December 15, 2045 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 56 | $ 56 | |
Unamortized fair value adjustment, debt | $ 15 | $ 15 | |
Interest rate (percent) | 8.50% | 8.50% | |
3.75% Senior notes due May 15, 2046 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 500 | ||
Interest rate (percent) | 3.75% | ||
8.312% Junior subordinated debentures due July 1, 2046 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 73 | $ 73 | |
Unamortized fair value adjustment, debt | $ 18 | $ 19 | |
Interest rate (percent) | 8.312% | 8.312% | |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | |||
Schedule of debt | |||
Total long-term debt | $ 107 | $ 107 | |
Interest rate (percent) | 6.25% | 6.25% |
Debt (details) - Debt Issuance
Debt (details) - Debt Issuance - USD ($) $ in Millions | May 11, 2016 | Aug. 25, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument | ||||
Net proceeds of issuance, after original issuance discount and deduction of underwriting expenses and commissions and other expenses | $ 491 | $ 392 | ||
Senior notes [Member] | ||||
Debt Instrument | ||||
Debt, principal amount | $ 500 | $ 400 | ||
Interest rate (percent) | 3.75% | 4.30% | ||
Net proceeds of issuance, after original issuance discount and deduction of underwriting expenses and commissions and other expenses | $ 491 | $ 392 | ||
Percentage of principal amount at which redemption price may be set | 100.00% | 100.00% | ||
Basis points added to current treasury rate used in calculation of alternative redemption price | 0.20% | 0.25% |
Debt (details) - Repayment
Debt (details) - Repayment - USD ($) $ in Millions | Jun. 20, 2016 | Dec. 01, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument | ||||
Debt, principal amount repaid | $ 400 | $ 400 | ||
6.25% Senior notes due June 20, 2016 [Member] | ||||
Debt Instrument | ||||
Debt, principal amount repaid | $ 400 | |||
Interest rate (percent) | 6.25% | 6.25% | ||
5.50% Senior notes due December 1, 2015 [Member] | ||||
Debt Instrument | ||||
Debt, principal amount repaid | $ 400 | |||
Interest rate (percent) | 5.50% |
Debt (details) - Junior Sub Deb
Debt (details) - Junior Sub Debt $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Debt Instrument | ||
Unamortized fair value adjustment, debt | $ 47 | $ 49 |
Junior subordinated debt [Member] | ||
Debt Instrument | ||
Number of junior subordinated debentures that are not fixed-to-floating rate debentures | item | 3 | |
Number of separate trusts that issued preferred securities and used proceeds to purchase the Company's subordinated debentures that are not fixed-to-floating rate | item | 3 | |
Impact of amortization of the fair value adjustment on interest expense | $ 2 | $ 1 |
7.625% Junior subordinated debentures due December 15, 2027 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 7.625% | 7.625% |
Debt, effective interest rate (percent) | 6.147% | 6.147% |
Unamortized fair value adjustment, debt | $ 14 | $ 15 |
8.50% Junior subordinated debentures due December 15, 2045 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 8.50% | 8.50% |
Debt, effective interest rate (percent) | 6.362% | 6.362% |
Unamortized fair value adjustment, debt | $ 15 | $ 15 |
8.312% Junior subordinated debentures due July 1, 2046 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 8.312% | 8.312% |
Debt, effective interest rate (percent) | 6.362% | 6.362% |
Unamortized fair value adjustment, debt | $ 18 | $ 19 |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | ||
Debt Instrument | ||
Number of consecutive years before Company is required to settle deferred interest | 5 years | |
Number of consecutive years Company may defer interest without giving rise to an event of default | 10 years | |
Interest rate (percent) | 6.25% | 6.25% |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | Minimum [Member] | ||
Debt Instrument | ||
Number of occasions the Company may defer payment of interest | item | 1 | |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | Period from issuance to March 14, 2017 [Member] | ||
Debt Instrument | ||
Interest rate (percent) | 6.25% | |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | Period from March 15, 2017 until redemption [Member] | ||
Debt Instrument | ||
Percentage of principal amount at which redemption price may be set | 100.00% | |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | Period from March 15, 2017 until redemption [Member] | LIBOR [Member] | ||
Debt Instrument | ||
Maturity of LIBOR rate used | three-month LIBOR | |
Basis spread on variable rate | 2.215% | |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | Period from March 15, 2037 until redemption [Member] | ||
Debt Instrument | ||
Days in period during which Company will be required to raise proceeds to repay debentures if Company chooses not to redeem the debentures | 180 days | |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | Period from March 15, 2037 until redemption [Member] | Minimum [Member] | ||
Debt Instrument | ||
Days before scheduled maturity date that Company's 180-day period must end | 10 days | |
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | Period from March 15, 2037 until redemption [Member] | Maxiumum [Member] | ||
Debt Instrument | ||
Days before scheduled maturity date that Company's 180-day period must end | 15 days |
Debt (details) - Maturities
Debt (details) - Maturities $ in Millions | Dec. 31, 2016USD ($) |
Maturities of long-term debt | |
Amount of debt obligations, other than commercial paper, due in 2017 | $ 450 |
Amount of debt obligations, other than commercial paper, due in 2018 | 500 |
Amount of debt obligations, other than commercial paper, due in 2019 | 500 |
Amount of debt obligations, other than commercial paper, due in 2020 | 500 |
Amount of debt obligations, other than commercial paper, due in 2021 | $ 0 |
Debt (details) - Line of Credit
Debt (details) - Line of Credit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Line of credit | ||
Years from effective date to expiration date of previous universal shelf registration statement | 3 years | |
Line of credit [Member] | ||
Line of credit | ||
Credit agreement, term (in years) | 5 years | |
Credit agreement, maximum borrowing capacity | $ 1,000 | |
Credit agreement, covenant terms | Pursuant to the credit agreement covenants, the Company must maintain a minimum consolidated net worth, defined as shareholders' equity determined in accordance with GAAP plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital) less goodwill and other intangible assets, of $13.73 billion. In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change in control, which is defined to include the acquisition of 35% or more of the Company's voting stock and certain changes in the composition of the Company's board of directors. | |
Credit agreement, threshold of consolidated net worth | $ 13,730 | |
Credit agreement, compliance | At December 31, 2016, the Company was in compliance with these covenants. | |
Line of credit [Member] | Minimum [Member] | ||
Line of credit | ||
Percentage of Company's voting stock acquired by outside entity that would be considered a change in control | 35.00% | |
Line of credit [Member] | Maxiumum [Member] | ||
Line of credit | ||
Maximum percentage of trust preferred securities relative to total capital in determining consolidated net worth | 15.00% | |
Maximum percentage of trust preferred securities and mandatorily convertible securities relative to total capital in determining consolidated net worth | 25.00% | |
Line of credit [Member] | LIBOR [Member] | ||
Line of credit | ||
Credit agreement, cost of borrowing, basis points above LIBOR | 1.125% | |
Line of credit [Member] | LIBOR [Member] | Minimum [Member] | ||
Line of credit | ||
Credit agreement, cost of borrowing, basis points above LIBOR | 0.875% | |
Line of credit [Member] | LIBOR [Member] | Maxiumum [Member] | ||
Line of credit | ||
Credit agreement, cost of borrowing, basis points above LIBOR | 1.50% | |
Commercial Paper [Member] | ||
Line of credit | ||
Credit agreement, maximum borrowing capacity | $ 800 | |
Commercial Paper [Member] | Minimum [Member] | ||
Line of credit | ||
Interest rate on commercial paper | 0.35% | 0.09% |
Commercial Paper [Member] | Maxiumum [Member] | ||
Line of credit | ||
Interest rate on commercial paper | 0.55% | 0.30% |
Shareholders' Equity and Divi88
Shareholders' Equity and Dividend Availability (details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shareholders' Equity and Dividend Availability disclosure | ||||||
Number of authorized shares | 1,755 | 1,755 | ||||
Number of authorized shares, preferred shares | 5 | 5 | ||||
Number of authorized shares, voting common stock | 1,745 | 1,745 | ||||
Number of authorized shares, undesignated shares | 5 | 5 | ||||
Number of shares purchased (in shares) | 6.6 | 4.7 | 4.9 | 5.1 | 21.3 | |
Cost of shares repurchased | $ 750 | $ 550 | $ 550 | $ 550 | $ 2,400 | |
Average price paid per share | $ 113.54 | $ 117.25 | $ 112.12 | $ 108.46 | $ 112.82 | |
Remaining capacity under share repurchase authorization | $ 934 | $ 1,684 | $ 2,234 | $ 2,784 | $ 934 | |
Cost of shares acquired to cover tax withholding costs and exercise costs | $ 72 | $ 74 |
Shareholders' Equity and Divi89
Shareholders' Equity and Dividend Availability (details) - Dividend Availability $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)item$ / shares | Dec. 31, 2015USD ($)item$ / shares | Dec. 31, 2014USD ($)item$ / shares | |
Statutory accounting principals | |||
Dividends received by TRV and its two non-insurance holding companies from their U.S. insurance subsidiaries | $ 3,050 | $ 3,750 | $ 4,100 |
Cash dividends declared per common share | $ / shares | $ 2.62 | $ 2.38 | $ 2.15 |
Cash dividends paid | $ 757 | $ 739 | $ 729 |
Insurance subsidiaries [Member] | |||
Statutory accounting principals | |||
Statutory net income of the Company's domestic and international insurance subsidiaries | 3,200 | 3,800 | $ 3,970 |
Statutory capital and surplus of the Company's domestic and international insurance subsidiaries | $ 20,760 | $ 20,570 | |
Travelers [Member] | |||
Statutory accounting principals | |||
Number of non-insurance holding companies underneath TRV | item | 2 | 2 | 2 |
Cash dividends declared per common share | $ / shares | $ 2.62 | $ 2.38 | $ 2.15 |
Cash dividends paid | $ 757 | $ 739 | $ 729 |
Connecticut Insurance Department [Member] | Insurance subsidiaries [Member] | |||
Statutory accounting principals | |||
Maximum amount of dividends available to be paid by subsidiaries to their parent without prior approval of the Connecticut Insurance Department | $ 3,690 |
Other Comprehensive Income an90
Other Comprehensive Income and Accumulated Other Comprehensive Income (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated other comprehensive income [Roll Forward] | |||
Shareholders' equity, beginning of year | $ 23,598 | $ 24,836 | |
Other comprehensive income (loss), net of taxes | (598) | (1,037) | $ 70 |
Shareholders' equity, end of year | 23,221 | 23,598 | 24,836 |
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | |||
Other comprehensive income (loss) before income taxes | (887) | (1,429) | 195 |
Income tax expense (benefit), other comprehensive income (loss) | (289) | (392) | 125 |
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Shareholders' equity, beginning of year | (157) | 880 | 810 |
Other comprehensive income (loss) before reclassifications | (605) | (1,089) | 52 |
Amounts reclassified from accumulated other comprehensive income | 7 | 52 | 18 |
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 |
Shareholders' equity, end of year | (755) | (157) | 880 |
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | |||
Other comprehensive income (loss) before income taxes | (887) | (1,429) | 195 |
Income tax expense (benefit), other comprehensive income (loss) | (289) | (392) | 125 |
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 |
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] | |||
Shareholders' equity, beginning of year | 1,100 | 1,768 | 1,125 |
Other comprehensive income (loss) before reclassifications | (530) | (641) | 667 |
Amounts reclassified from accumulated other comprehensive income | (42) | (27) | (24) |
Other comprehensive income (loss), net of taxes | (572) | (668) | 643 |
Shareholders' equity, end of year | 528 | 1,100 | 1,768 |
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | |||
Other comprehensive income (loss) before income taxes | (883) | (1,020) | 976 |
Income tax expense (benefit), other comprehensive income (loss) | (311) | (352) | 333 |
Other comprehensive income (loss), net of taxes | (572) | (668) | 643 |
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] | |||
Shareholders' equity, beginning of year | 189 | 198 | 197 |
Other comprehensive income (loss) before reclassifications | 4 | (11) | (2) |
Amounts reclassified from accumulated other comprehensive income | 9 | 2 | 3 |
Other comprehensive income (loss), net of taxes | 13 | (9) | 1 |
Shareholders' equity, end of year | 202 | 189 | 198 |
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | |||
Other comprehensive income (loss) before income taxes | 21 | (14) | 2 |
Income tax expense (benefit), other comprehensive income (loss) | 8 | (5) | 1 |
Other comprehensive income (loss), net of taxes | 13 | (9) | 1 |
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Shareholders' equity, beginning of year | (713) | (755) | (431) |
Other comprehensive income (loss) before reclassifications | (30) | (18) | (363) |
Amounts reclassified from accumulated other comprehensive income | 40 | 60 | 39 |
Other comprehensive income (loss), net of taxes | 10 | 42 | (324) |
Shareholders' equity, end of year | (703) | (713) | (755) |
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | |||
Other comprehensive income (loss) before income taxes | 16 | 66 | (494) |
Income tax expense (benefit), other comprehensive income (loss) | 6 | 24 | (170) |
Other comprehensive income (loss), net of taxes | 10 | 42 | (324) |
Net Unrealized Foreign Currency Translation [Member] | |||
Accumulated other comprehensive income [Roll Forward] | |||
Shareholders' equity, beginning of year | (733) | (331) | (81) |
Other comprehensive income (loss) before reclassifications | (49) | (419) | (250) |
Amounts reclassified from accumulated other comprehensive income | 17 | ||
Other comprehensive income (loss), net of taxes | (49) | (402) | (250) |
Shareholders' equity, end of year | (782) | (733) | (331) |
Pre-tax components of other comprehensive income (loss) and related tax expense (benefit) | |||
Other comprehensive income (loss) before income taxes | (41) | (461) | (289) |
Income tax expense (benefit), other comprehensive income (loss) | 8 | (59) | (39) |
Other comprehensive income (loss), net of taxes | $ (49) | $ (402) | $ (250) |
Other Comprehensive Income an91
Other Comprehensive Income and Accumulated Other Comprehensive Income (details) - Reclassifications - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||
Reclassification adjustment impacting realized gains on the income statement | [1] | $ (68) | $ (3) | $ (79) | ||||||||
Reclassification adjustment impacting general and administrative expense on the income statement | 4,154 | 4,094 | 3,964 | |||||||||
Total reclassifications | $ (1,302) | $ (947) | $ (887) | $ (917) | $ (1,209) | $ (1,307) | $ (1,076) | $ (1,148) | (4,053) | (4,740) | (5,089) | |
Income tax benefit | (359) | (231) | (223) | (226) | (343) | (379) | (264) | (315) | (1,039) | (1,301) | (1,397) | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | $ (943) | $ (716) | $ (664) | $ (691) | $ (866) | $ (928) | $ (812) | $ (833) | (3,014) | (3,439) | (3,692) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||||||||
Total reclassifications | 11 | 79 | 28 | |||||||||
Income tax benefit | 4 | 27 | 10 | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | 7 | 52 | 18 | |||||||||
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 realized gains on the income statement | (64) | (42) | (36) | |||||||||
Income tax benefit | (22) | (15) | (12) | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | (42) | (27) | (24) | |||||||||
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 realized gains on the income statement | 13 | 2 | 4 | |||||||||
Income tax benefit | 4 | 1 | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | 9 | 2 | 3 | |||||||||
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 | 62 | 93 | 60 | |||||||||
Income tax benefit | 22 | 33 | 21 | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | $ 40 | 60 | $ 39 | |||||||||
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 realized gains on the income statement | 26 | |||||||||||
Income tax benefit | 9 | |||||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | $ 17 | |||||||||||
[1] | Total other-than-temporary impairment (OTTI) losses were $(40) million, $(54) million and $(22) million for the years ended December 31, 2016, 2015 and 2014, respectively. Of total OTTI, credit losses of $(29) million, $(52) million and $(26) million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $(11) million, $(2) million and $4 million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Earnings per Share (details)
Earnings per Share (details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings per Share disclosure | |||||||||||
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 |
Participating share-based awards - allocated income | (22) | (25) | (27) | ||||||||
Net income available to common shareholders -- basic | 2,992 | 3,414 | 3,665 | ||||||||
Net income available to common shareholders -- diluted | $ 2,992 | $ 3,414 | $ 3,665 | ||||||||
Weighted average shares outstanding, basic | 288.1 | 310.6 | 338.8 | ||||||||
Weighted average effects of dilutive securities, stock options and performance shares (in shares) | 2.9 | 3.3 | 3.7 | ||||||||
Weighted average shares outstanding, diluted | 291 | 313.9 | 342.5 | ||||||||
Net income per common share, basic | $ 3.32 | $ 2.48 | $ 2.27 | $ 2.33 | $ 2.87 | $ 3 | $ 2.56 | $ 2.58 | $ 10.39 | $ 10.99 | $ 10.82 |
Net income per common share, diluted | $ 3.28 | $ 2.45 | $ 2.24 | $ 2.30 | $ 2.83 | $ 2.97 | $ 2.53 | $ 2.55 | $ 10.28 | $ 10.88 | $ 10.70 |
Income Taxes (details)
Income Taxes (details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes disclosure | |||||||||||
Current income tax expense included in consolidated statement of income, federal | $ 899 | $ 1,144 | $ 1,216 | ||||||||
Current income tax expense included in consolidated statement of income, foreign | 21 | 29 | 28 | ||||||||
Current income tax expense included in consolidated statement of income, state | 8 | 9 | 10 | ||||||||
Total current tax expense | 928 | 1,182 | 1,254 | ||||||||
Deferred income tax expense included in consolidated statement of income, federal | 110 | 117 | 121 | ||||||||
Deferred income tax expense included in consolidated statement of income, foreign | 1 | 2 | 22 | ||||||||
Total deferred tax expense | 111 | 119 | 143 | ||||||||
Total income tax expense included in consolidated statement of income | $ 359 | $ 231 | $ 223 | $ 226 | $ 343 | $ 379 | $ 264 | $ 315 | 1,039 | 1,301 | 1,397 |
Expense (benefit) relating to share-based compensation, the changes in unrealized gain on investments, unrealized loss on foreign exchange and other items in other comprehensive income | (289) | (448) | 68 | ||||||||
Total income tax expense included in consolidated financial statements | 750 | 853 | 1,465 | ||||||||
U.S. income before income taxes | 3,946 | 4,621 | 4,899 | ||||||||
Foreign income before income taxes | 107 | 119 | 190 | ||||||||
Income before income taxes | 1,302 | $ 947 | $ 887 | $ 917 | 1,209 | $ 1,307 | $ 1,076 | $ 1,148 | $ 4,053 | $ 4,740 | $ 5,089 |
Statutory tax rate (percent) | 35.00% | 35.00% | 35.00% | ||||||||
Expected federal income tax expense | $ 1,419 | $ 1,659 | $ 1,781 | ||||||||
Tax effect of nontaxable investment income | (323) | (345) | (379) | ||||||||
Tax effect of other, net | $ (57) | $ (13) | $ (5) | ||||||||
Effective tax rate (percent) | 26.00% | 27.00% | 27.00% | ||||||||
Income taxes paid | $ 892 | $ 1,207 | $ 1,147 | ||||||||
Current income tax payable | 72 | 50 | 72 | 50 | |||||||
Deferred tax assets, claims and claim adjustment expense reserves | 664 | 691 | 664 | 691 | |||||||
Deferred tax assets, unearned premium reserves | 760 | 731 | 760 | 731 | |||||||
Deferred tax assets, compensation-related liabilities | 268 | 326 | 268 | 326 | |||||||
Deferred tax assets, other | 272 | 320 | 272 | 320 | |||||||
Total gross deferred tax assets | 1,964 | 2,068 | 1,964 | 2,068 | |||||||
Less: valuation allowance | 3 | 3 | |||||||||
Adjusted gross deferred tax assets | 1,961 | 2,068 | 1,961 | 2,068 | |||||||
Deferred tax liabilities, deferred acquisition costs | 604 | 580 | 604 | 580 | |||||||
Deferred tax liabilities, investments | 592 | 867 | 592 | 867 | |||||||
Deferred tax liabilities, internally-developed software | 157 | 134 | 157 | 134 | |||||||
Deferred tax liabilities, other | 143 | 191 | 143 | 191 | |||||||
Total gross deferred tax liabilities | 1,496 | 1,772 | 1,496 | 1,772 | |||||||
Net deferred tax asset | 465 | $ 296 | 465 | $ 296 | |||||||
Increase in valuation allowance | 3 | ||||||||||
Amount of the Company's foreign operations' undistributed earnings for which U.S. income taxes have not been recognized | $ 358 | $ 358 |
Income Taxes (details) - NOL Ca
Income Taxes (details) - NOL Carryforwards $ in Millions | Dec. 31, 2016USD ($) |
Brazil [Member] | |
Net Operating Loss Carryforward | |
Net operating loss carryforward | $ 8 |
United Kingdom [Member] | |
Net Operating Loss Carryforward | |
Net operating loss carryforward | $ 106 |
Income Taxes (details) - Additi
Income Taxes (details) - Additional Tax Details - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | |||
Unrecognized tax benefits, balance at January 1 | $ 16 | $ 23 | |
Additions for tax positions of prior years | 3 | 2 | |
Reductions for tax positions of prior years | (6) | (9) | |
Unrecognized tax benefits, balance at December 31 | 13 | 16 | $ 23 |
Unrecognized tax benefits that, if recognized, would affect the annual effective tax rate | 7 | 4 | |
Amount of unrecognized tax benefits that are tax positions for which the ultimate deductibility is certain, but for which there is uncertainty about the timing of deductibility | 6 | 12 | |
Amount of interest recognized on unrecognized tax benefits in income taxes | 31 | $ 31 | |
Amount of interest benefit recognized on unrecognized tax benefits in income taxes | (32) | ||
Accrued payment of interest balance for unrecognized tax benefits | $ 57 | $ 26 |
Share-Based Incentive Compens96
Share-Based Incentive Compensation (details) - USD ($) $ / shares in Units, $ in Millions | Feb. 09, 2017 | May 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of stock option activity | |||||
Stock options outstanding, beginning of year, number (in shares) | 9,864,255 | ||||
Stock options granted, number (in shares) | 2,847,398 | ||||
Stock options exercised, number (in shares) | (4,069,532) | ||||
Stock options forfeited or expired, number (in shares) | (82,085) | ||||
Stock options outstanding, end of year, number (in shares) | 8,560,036 | 9,864,255 | |||
Stock options outstanding, beginning of year, weighted average exercise price (per share) | $ 74.48 | ||||
Stock options granted, weighted average exercise price (per share) | 106.21 | ||||
Stock options exercised, weighted average exercise price (per share) | 69.13 | ||||
Stock options forfeited or expired, weighted average exercise price (per share) | 97.44 | ||||
Stock options outstanding, end of year, weighted average exercise price (per share) | $ 87.36 | $ 74.48 | |||
Stock options outstanding, weighted average contractual life remaining | 6 years 9 months 18 days | ||||
Stock options outstanding, aggregate intrinsic value | $ 300 | ||||
Stock options vested at end of year, number (in shares) | 5,588,061 | ||||
Stock options vested at end of year, weighted average exercise price (per share) | $ 80.74 | ||||
Stock options vested at end of year, weighted average contractual life remaining | 6 years | ||||
Stock options vested at end of year, aggregate intrinsic value | $ 233 | ||||
Stock options exercisable at end of year, number (in shares) | 3,007,663 | ||||
Stock options exercisable at end of year, weighted average exercise price (per share) | $ 65.18 | ||||
Stock options exercisable at end of year, weighted average contractual life remaining | 4 years 2 months 12 days | ||||
Stock options exercisable at end of year, aggregate intrinsic value | $ 172 | ||||
Stock option grants [Member] | |||||
Assumptions used in estimating fair value of options | |||||
Expected term of stock options | 6 years | 6 years | |||
Expected volatility of the Company's stock (percent) | 19.29% | ||||
Weighted average volatility (percent) | 16.79% | 19.29% | 27.50% | ||
Expected annual dividend per share | $ 2.20 | ||||
Risk-free rate | 1.31% | ||||
Summary of stock option activity | |||||
Stock options granted, weighted average grant-date fair value of options granted (per share) | $ 13.29 | $ 15.78 | $ 17.22 | ||
Total intrinsic value of options exercised during the year | $ 167 | $ 120 | $ 117 | ||
Stock option grants [Member] | Minimum [Member] | |||||
Assumptions used in estimating fair value of options | |||||
Expected term of stock options | 5 years | ||||
Expected volatility of the Company's stock (percent) | 15.14% | 27.20% | |||
Expected annual dividend per share | $ 2.44 | $ 2 | |||
Risk-free rate | 1.36% | 1.81% | |||
Stock option grants [Member] | Maxiumum [Member] | |||||
Assumptions used in estimating fair value of options | |||||
Expected term of stock options | 6 years | ||||
Expected volatility of the Company's stock (percent) | 16.80% | 27.50% | |||
Expected annual dividend per share | $ 2.68 | $ 2.20 | |||
Risk-free rate | 2.23% | 1.82% | |||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | |||||
Share-based compensation plan description | |||||
Number of shares of the Company's common stock originally authorized for grant under the 2014 Incentive Plan | 10,000,000 | ||||
Additional number of shares of the Company's common stock authorized for grant under the 2014 Incentive Plan | 4,400,000 | ||||
Number of shares of the Company's common stock authorized for grant under the 2014 Incentive Plan | 14,400,000 | ||||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | Stock option grants [Member] | |||||
Share-based compensation plan description | |||||
Option term | 10 years | ||||
General vesting period | 3 years | ||||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | Stock option grants [Member] | Subsequent Event [Member] | |||||
Summary of stock option activity | |||||
Stock options granted, number (in shares) | 2,106,022 | ||||
Stock options granted, weighted average exercise price (per share) | $ 118.78 | ||||
Stock options granted, weighted average grant-date fair value of options granted (per share) | $ 16.15 | ||||
The Travelers Companies, Inc 2014 Stock Incentive Plan [Member] | Director deferred stock awards [Member] | |||||
Share-based compensation plan description | |||||
Number of days prior to date of annual meeting in year following date of grant in which annual deferred stock awards vest in full | 1 day | ||||
Number of months after termination of service as a director before distributions of deferreed stock awards begin | 6 months |
Share-Based Incentive Compens97
Share-Based Incentive Compensation (details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | Feb. 09, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted stock units, deferred stock units and performance share awards [Member] | ||||
Share-based compensation | ||||
Fair value of shares that vested during the year | $ 175 | $ 179 | $ 147 | |
Restricted stock units, deferred stock units and performance share awards [Member] | Subsequent Event [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, granted, number | 960,515 | |||
Other equity instruments, granted, weighted average grant-date fair value | $ 118.78 | |||
Restricted and deferred stock units [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, nonvested, number, beginning of year | 1,435,958 | |||
Other equity instruments, granted, number | 676,736 | |||
Other equity instruments, vested, number | (667,650) | |||
Other equity instruments, forfeited, number | (68,552) | |||
Other equity instruments, nonvested, number, end of year | 1,376,492 | 1,435,958 | ||
Other equity instruments, nonvested, weighted average grant-date fair value, beginning of year | $ 88.35 | |||
Other equity instruments, granted, weighted average grant-date fair value | 106.93 | |||
Other equity instruments, vested, weighted average grant-date fair value | 86.85 | |||
Other equity instruments, forfeited, weighted average grant-date fair value | 97.82 | |||
Other equity instruments, nonvested, weighted average grant-date fair value, end of year | $ 97.75 | $ 88.35 | ||
Other equity instruments, nonvested dividend equivalents, number, beginning of year | 396 | |||
Other equity instruments, nonvested dividend equivalents, number, end of year | 408 | 396 | ||
Restricted and deferred stock units [Member] | Subsequent Event [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, granted, number | 567,006 | |||
Restricted stock units [Member] | ||||
Share-based compensation | ||||
Award vesting period | 3 years | |||
Performance shares [Member] | ||||
Share-based compensation | ||||
Award vesting period | 3 years | |||
Peformance period | 3 years | |||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, nonvested, number, beginning of year | 1,101,989 | |||
Other equity instruments, granted, number | 476,411 | |||
Other equity instruments, vested, number | (818,360) | |||
Other equity instruments, forfeited, number | (63,495) | |||
Other equity instruments, performance-based adjustment, number | 100,073 | |||
Other equity instruments, nonvested, number, end of year | 796,618 | 1,101,989 | ||
Other equity instruments, nonvested, weighted average grant-date fair value, beginning of year | $ 91.27 | |||
Other equity instruments, granted, weighted average grant-date fair value | 106.03 | |||
Other equity instruments, vested, weighted average grant-date fair value | 84.43 | |||
Other equity instruments, forfeited, weighted average grant-date fair value | 100.02 | |||
Other equity instruments, performance-based adjustment, weighted average grant-date fair value | 88.22 | |||
Other equity instruments, nonvested, weighted average grant-date fair value, end of year | $ 106.03 | $ 91.27 | ||
Other equity instruments, nonvested dividend equivalents, number, beginning of year | 40,663 | |||
Other equity instruments, nonvested dividend equivalents, number, end of year | 28,480 | 40,663 | ||
Performance shares [Member] | Subsequent Event [Member] | ||||
Summary of other equity instruments [Roll Forward] | ||||
Other equity instruments, granted, number | 393,509 | |||
Performance shares [Member] | Feburary 2015, 2016 and 2017 Awards [Member] | Minimum [Member] | ||||
Share-based compensation | ||||
Percentage of performance shares to vest | 50.00% | |||
Performance shares [Member] | Feburary 2015, 2016 and 2017 Awards [Member] | Maxiumum [Member] | ||||
Share-based compensation | ||||
Percentage of performance shares to vest | 150.00% |
Share-Based Incentive Compensta
Share-Based Incentive Compenstaion (details) - Cost Recognition - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based compensation | |||
Total compensation cost recognized in earnings for all share-based incentive compensation awards | $ 155 | $ 141 | $ 138 |
Tax benefit recognized in earnings related to compensation costs | 52 | 47 | 47 |
Total unrecognized compensation cost related to all nonvested share-based incentive compensation awards | $ 124 | ||
Weighted-average period of recognition for unrecognized compensation cost (in years) | 1 year 8 months 12 days | ||
Cash received from the exercise of employee stock options under share-based compensation plans | $ 332 | 183 | 195 |
Tax benefit for tax deductions from employee stock options | $ 58 | 41 | |
Minimum [Member] | |||
Share-based compensation | |||
Estimated annual forfeiture rate reflected in share-based compensation cost (percent) | 3.00% | ||
Maxiumum [Member] | |||
Share-based compensation | |||
Estimated annual forfeiture rate reflected in share-based compensation cost (percent) | 4.00% | ||
Performance shares [Member] | |||
Share-based compensation | |||
Estimated attainment of performance shares at grant date (percent) | 100.00% | ||
Compensation cost adjustments for the updated estimate of performance shares due to attaining certain performance levels | $ 11 | $ 8 | $ 14 |
Pension Plans, Retirement Ben99
Pension Plans, Retirement Benefits and Savings Plans (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | $ 3,478 | $ 3,612 | |
Benefits earned | 118 | 131 | $ 110 |
Interest cost on benefit obligation | 122 | 144 | 150 |
Actuarial loss (gain) | 69 | (201) | |
Benefits paid | (177) | (199) | |
Settlement | (3) | ||
Foreign currency exchange rate change, change in projected benefit obligation | (15) | (9) | |
Benefit obligation, balance, end of year | 3,592 | 3,478 | 3,612 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 3,242 | 3,357 | |
Actual return on plan assets | 233 | (14) | |
Company contributions | 214 | 107 | |
Benefits paid | (177) | (199) | |
Settlement | (3) | ||
Foreign currency exchange rate change, change in plan assets | (16) | (9) | |
Fair value of plan assets, balance, end of year | 3,493 | 3,242 | 3,357 |
Funded status of plan at end of year | (99) | (236) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued over-funded benefit plan assets | 25 | 4 | |
Accrued under-funded benefit plan liabilities | (124) | (240) | |
Total amount recognized in the consolidated balance sheet | (99) | (236) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial (gain) loss | 1,127 | 1,131 | |
Prior service benefit | (6) | (8) | |
Total amount recognized in accumulated other comprehensive income | 1,121 | 1,123 | |
Qualified Domestic Pension Plan [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | 3,250 | 3,385 | |
Benefits earned | 111 | 124 | |
Interest cost on benefit obligation | 114 | 135 | |
Actuarial loss (gain) | 54 | (203) | |
Benefits paid | (162) | (191) | |
Benefit obligation, balance, end of year | 3,367 | 3,250 | 3,385 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 3,127 | 3,235 | |
Actual return on plan assets | 222 | (17) | |
Company contributions | 200 | 100 | 200 |
Benefits paid | (162) | (191) | |
Fair value of plan assets, balance, end of year | 3,387 | 3,127 | 3,235 |
Funded status of plan at end of year | 20 | (123) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued over-funded benefit plan assets | 20 | ||
Accrued under-funded benefit plan liabilities | (123) | ||
Total amount recognized in the consolidated balance sheet | 20 | (123) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial (gain) loss | 1,072 | 1,079 | |
Prior service benefit | (6) | (8) | |
Total amount recognized in accumulated other comprehensive income | 1,066 | 1,071 | |
Nonqualified and Foreign Pension Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | 228 | 227 | |
Benefits earned | 7 | 7 | |
Interest cost on benefit obligation | 8 | 9 | |
Actuarial loss (gain) | 15 | 2 | |
Benefits paid | (15) | (8) | |
Settlement | (3) | ||
Foreign currency exchange rate change, change in projected benefit obligation | (15) | (9) | |
Benefit obligation, balance, end of year | 225 | 228 | 227 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 115 | 122 | |
Actual return on plan assets | 11 | 3 | |
Company contributions | 14 | 7 | |
Benefits paid | (15) | (8) | |
Settlement | (3) | ||
Foreign currency exchange rate change, change in plan assets | (16) | (9) | |
Fair value of plan assets, balance, end of year | 106 | 115 | 122 |
Funded status of plan at end of year | (119) | (113) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued over-funded benefit plan assets | 5 | 4 | |
Accrued under-funded benefit plan liabilities | (124) | (117) | |
Total amount recognized in the consolidated balance sheet | (119) | (113) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial (gain) loss | 55 | 52 | |
Total amount recognized in accumulated other comprehensive income | 55 | 52 | |
Postretirement Benefit Plans [Member] | |||
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, balance, beginning of year | 233 | 255 | |
Interest cost on benefit obligation | 8 | 10 | 10 |
Actuarial loss (gain) | (17) | (3) | |
Benefits paid | (11) | (13) | |
Plan amendments | (11) | ||
Foreign currency exchange rate change, change in projected benefit obligation | 1 | (5) | |
Benefit obligation, balance, end of year | 214 | 233 | 255 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, balance, beginning of year | 15 | 16 | |
Company contributions | 10 | 12 | |
Benefits paid | (11) | (13) | |
Fair value of plan assets, balance, end of year | 14 | 15 | $ 16 |
Funded status of plan at end of year | (200) | (218) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Accrued under-funded benefit plan liabilities | (200) | (218) | |
Total amount recognized in the consolidated balance sheet | (200) | (218) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Net actuarial (gain) loss | (13) | 4 | |
Prior service benefit | (31) | (35) | |
Total amount recognized in accumulated other comprehensive income | $ (44) | $ (31) |
Pension Plans, Retirement Be100
Pension Plans, Retirement Benefits and Savings Plans (details) - Additional Pension Disclosures - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Total other changes in benefit plan assets and benefit obligations recognized in other comprehensive income | $ (16) | $ (66) | $ 494 |
Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Total accumulated benefit obligation | 3,480 | 3,370 | |
Aggregate projected benefit obligation for pension plans with an accumulated benefit obligation in excess of plan assets | 200 | 3,470 | |
Aggregate accumulated benefit obligation for pension plans with an accumulated benefit obligation in excess of plan assets | 200 | 3,360 | |
Fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets | 100 | 3,230 | |
Components of net periodic benefit cost | |||
Service cost | 118 | 131 | 110 |
Interest cost on benefit obligation | 122 | 144 | 150 |
Expected return on plan assets | (230) | (230) | (218) |
Net periodic benefit cost, curtailment | (1) | ||
Net periodic benefit cost, settlement | 1 | 2 | |
Net periodic benefit cost, amortization of unrecognized prior service benefit | (1) | (1) | |
Net periodic benefit cost, amortization of unrecognized net actuarial loss (gain) | 66 | 96 | 65 |
Net periodic benefit cost | 76 | 140 | 108 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, prior service benefit | (8) | ||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, net actuarial loss (gain) | 66 | 43 | 516 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, foreign currency exchange rate change | (2) | ||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, curtailment | (2) | ||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, settlement | (1) | (2) | |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of prior service benefit | 1 | 1 | |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of net actuarial gain (loss) | (66) | (96) | (65) |
Total other changes in benefit plan assets and benefit obligations recognized in other comprehensive income | (2) | (52) | 439 |
Total other changes recognized in net periodic benefit cost and other comprehensive income | 74 | 88 | 547 |
Estimated net actuarial gain (loss) that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year | (75) | ||
Estimated prior service benefit to be amortized over the next fiscal year | 1 | ||
Qualified Domestic Pension Plan [Member] | |||
Defined benefit plan disclosure | |||
Total accumulated benefit obligation | 3,260 | 3,150 | |
Required contributions made | 0 | 0 | 0 |
Required contributions during next fiscal year | 0 | ||
Components of net periodic benefit cost | |||
Service cost | 111 | 124 | |
Interest cost on benefit obligation | 114 | 135 | |
Nonqualified and Foreign Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Total accumulated benefit obligation | 220 | 220 | |
Components of net periodic benefit cost | |||
Service cost | 7 | 7 | |
Interest cost on benefit obligation | 8 | 9 | |
Foreign Pension Plan [Member] | |||
Defined benefit plan disclosure | |||
Required contributions during next fiscal year | 0 | ||
Postretirement Benefit Plans [Member] | |||
Components of net periodic benefit cost | |||
Interest cost on benefit obligation | 8 | 10 | 10 |
Net periodic benefit cost, amortization of unrecognized prior service benefit | (3) | (3) | (2) |
Net periodic benefit cost, amortization of unrecognized net actuarial loss (gain) | 1 | (3) | |
Net periodic benefit cost | 5 | 8 | 5 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, prior service benefit | (11) | ||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, net actuarial loss (gain) | (17) | (3) | 50 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, foreign currency exchange rate change | 1 | ||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of prior service benefit | 3 | 3 | 2 |
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income, amortization of net actuarial gain (loss) | (1) | 3 | |
Total other changes in benefit plan assets and benefit obligations recognized in other comprehensive income | (13) | (12) | 55 |
Total other changes recognized in net periodic benefit cost and other comprehensive income | (8) | $ (4) | $ 60 |
Estimated prior service benefit to be amortized over the next fiscal year | 3 | ||
Postretirement Benefit Plans [Member] | Maxiumum [Member] | |||
Other changes in benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Estimated net actuarial gain (loss) that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year | $ 1 |
Pension Plans, Retirement Be101
Pension Plans, Retirement Benefits and Savings Plans (details) - Change in Estimation - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Accounting Estimate | |||||||||||
Increase in diluted net income per share | $ 3.28 | $ 2.45 | $ 2.24 | $ 2.30 | $ 2.83 | $ 2.97 | $ 2.53 | $ 2.55 | $ 10.28 | $ 10.88 | $ 10.70 |
Qualified Domestic Pension Plan [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Reduction to service cost | $ (111) | $ (124) | |||||||||
Reduction to interest cost | $ (114) | $ (135) | |||||||||
Weighted average discount rate used to measure service cost (percent) | 4.77% | 4.10% | |||||||||
Weighted average discount rate used to measure interest cost (percent) | 3.64% | 4.10% | |||||||||
Nonqualified Domestic Pension Plan [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure service cost (percent) | 4.53% | 4.10% | |||||||||
Weighted average discount rate used to measure interest cost (percent) | 3.47% | 4.10% | |||||||||
Domestic Postretirement Benefit Plans [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure interest cost (percent) | 3.53% | 4.10% | |||||||||
Change in Assumptions for Pension Plans and Postretirement Benefit Plans [Member] | Impact of Change in Estimation Approach [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Reduction to service cost | $ 6 | ||||||||||
Reduction to interest cost | $ 30 | ||||||||||
Increase in diluted net income per share | $ 0.08 | ||||||||||
Change in Assumptions for Pension Plans and Postretirement Benefit Plans [Member] | Current Estimation Approach [Member] | Qualified Domestic Pension Plan [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure service cost (percent) | 4.77% | ||||||||||
Weighted average discount rate used to measure interest cost (percent) | 3.64% | ||||||||||
Change in Assumptions for Pension Plans and Postretirement Benefit Plans [Member] | Current Estimation Approach [Member] | Nonqualified Domestic Pension Plan [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure service cost (percent) | 4.53% | ||||||||||
Weighted average discount rate used to measure interest cost (percent) | 3.47% | ||||||||||
Change in Assumptions for Pension Plans and Postretirement Benefit Plans [Member] | Current Estimation Approach [Member] | Domestic Postretirement Benefit Plans [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure service cost (percent) | 0.00% | ||||||||||
Weighted average discount rate used to measure interest cost (percent) | 3.53% | ||||||||||
Change in Assumptions for Pension Plans and Postretirement Benefit Plans [Member] | Prior Estimation Approach [Member] | Qualified Domestic Pension Plan [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure service cost (percent) | 4.50% | ||||||||||
Weighted average discount rate used to measure interest cost (percent) | 4.50% | ||||||||||
Change in Assumptions for Pension Plans and Postretirement Benefit Plans [Member] | Prior Estimation Approach [Member] | Nonqualified Domestic Pension Plan [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure service cost (percent) | 4.37% | ||||||||||
Weighted average discount rate used to measure interest cost (percent) | 4.37% | ||||||||||
Change in Assumptions for Pension Plans and Postretirement Benefit Plans [Member] | Prior Estimation Approach [Member] | Domestic Postretirement Benefit Plans [Member] | |||||||||||
Change in Accounting Estimate | |||||||||||
Weighted average discount rate used to measure service cost (percent) | 4.35% | ||||||||||
Weighted average discount rate used to measure interest cost (percent) | 4.35% |
Pension Plans, Retirement Be102
Pension Plans, Retirement Benefits and Savings Plans (details) - Assumptions - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, future compensation increase rate (percent) | 4.00% | 4.00% |
Pension Plans [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine net periodic benefit cost, expected long-term rate of return on assets (percent) | 7.00% | 7.25% |
Qualified Domestic Pension Plan [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, discount rate (percent) | 4.23% | 4.50% |
Assumptions used to determine net periodic benefit cost, discount rate used to measure service cost (percent) | 4.77% | 4.10% |
Assumptions used to determine net periodic benefit cost, discount rate to measure interest cost (percent) | 3.64% | 4.10% |
Nonqualified Domestic Pension Plan [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, discount rate (percent) | 4.15% | 4.37% |
Assumptions used to determine net periodic benefit cost, discount rate used to measure service cost (percent) | 4.53% | 4.10% |
Assumptions used to determine net periodic benefit cost, discount rate to measure interest cost (percent) | 3.47% | 4.10% |
Postretirement Benefit Plans [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine net periodic benefit cost, expected long-term rate of return on assets (percent) | 4.00% | 4.00% |
Impact to accumulated postretirement benefit obligation from increasing the assumed health care cost trend rate by 1% | $ 20 | |
Impact to the aggregate of the service and interest cost components of net postretirement benefit expense from increasing the assumed health care cost trend rate by 1% | 1 | |
Impact to accumulated postretirement benefit obligation from decreasing the assumed health care cost trend rate by 1% | 17 | |
Impact to the aggregate of the service and interest cost components of net postretirement benefit expense from decreasing the assumed health care cost trend rate by 1% | $ 1 | |
Domestic Postretirement Benefit Plans [Member] | ||
Defined benefit plan disclosure | ||
Assumptions used to determine benefit obligations, discount rate (percent) | 4.10% | 4.35% |
Assumptions used to determine net periodic benefit cost, discount rate to measure interest cost (percent) | 3.53% | 4.10% |
Assumed health care cost trend rates, rate to which the cost trend rate is assumed to decline (ultimate trend rate) (percent) | 5.00% | 5.00% |
Postretirement Benefit Plan Before Age 65 [Member] | ||
Defined benefit plan disclosure | ||
Assumed health care cost trend rates, medical, following year (percent) | 6.50% | 6.75% |
Assumed health care cost trend rates, medical, year that the rate reaches the ultimate trend rate | 2,022 | 2,022 |
Postretirement Benefit Plan Age 65 and Older [Member] | ||
Defined benefit plan disclosure | ||
Assumed health care cost trend rates, medical, following year (percent) | 7.25% | 7.50% |
Assumed health care cost trend rates, medical, year that the rate reaches the ultimate trend rate | 2,025 | 2,025 |
Pension Plans, Retirement Be103
Pension Plans, Retirement Benefits and Savings Plans (details) - Miscellaneous Fair Value Disclosures - item | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Qualified Domestic Pension Plan [Member] | Equity securities [Member] | ||
Defined benefit plan disclosure | ||
Minimum investment in class of securities (as a percentage) | 55.00% | |
Maximum investment in class of securities (as a percentage) | 65.00% | |
Qualified Domestic Pension Plan [Member] | Fixed income securities [Member] | ||
Defined benefit plan disclosure | ||
Minimum investment in class of securities (as a percentage) | 20.00% | |
Maximum investment in class of securities (as a percentage) | 40.00% | |
Qualified Domestic Pension Plan [Member] | Private equity funds [Member] | ||
Defined benefit plan disclosure | ||
Number of private equity funds included in pension plan assets | 2 | 2 |
Number of private equity funds included in pension plan assets focused on financial companies | 1 | |
Qualified Domestic Pension Plan [Member] | Long-term growth [Member] | ||
Defined benefit plan disclosure | ||
Minimum investment in class of securities (as a percentage) | 85.00% | |
Maximum investment in class of securities (as a percentage) | 90.00% | |
Qualified Domestic Pension Plan [Member] | Near-term benefit payments [Member] | ||
Defined benefit plan disclosure | ||
Minimum investment in class of securities (as a percentage) | 10.00% | |
Maximum investment in class of securities (as a percentage) | 15.00% | |
Postretirement Benefit Plans [Member] | Fixed income securities [Member] | ||
Defined benefit plan disclosure | ||
Minimum investment in class of securities (as a percentage) | 25.00% | |
Maximum investment in class of securities (as a percentage) | 75.00% | |
Postretirement Benefit Plans [Member] | Long-term growth [Member] | ||
Defined benefit plan disclosure | ||
Minimum investment in class of securities (as a percentage) | 35.00% | |
Maximum investment in class of securities (as a percentage) | 65.00% | |
Postretirement Benefit Plans [Member] | Near-term benefit payments [Member] | ||
Defined benefit plan disclosure | ||
Minimum investment in class of securities (as a percentage) | 35.00% | |
Maximum investment in class of securities (as a percentage) | 60.00% |
Pension Plans, Retirement Be104
Pension Plans, Retirement Benefits and Savings Plans (details) - Fair Value - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | $ 3,493 | $ 3,242 | $ 3,357 |
Postretirement Benefit Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 14 | 15 | $ 16 |
Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 2,755 | 2,565 | |
Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 737 | 675 | |
Level 2 [Member] | Postretirement Benefit Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 14 | 15 | |
Level 3 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 2 | |
Fixed maturities [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 546 | 540 | |
Fixed maturities [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 546 | 540 | |
Obligations of states, municipalities and political subdivisions [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 9 | 17 | |
Obligations of states, municipalities and political subdivisions [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 9 | 17 | |
Debt securities issued by foreign governments [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 14 | 16 | |
Debt securities issued by foreign governments [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 14 | 16 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 12 | 16 | |
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 12 | 16 | |
All other corporate bonds [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 511 | 491 | |
All other corporate bonds [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 511 | 491 | |
Total mutual funds [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,926 | 1,886 | |
Total mutual funds [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,916 | 1,877 | |
Total mutual funds [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 10 | 9 | |
Equity mutual funds [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,285 | 1,237 | |
Equity mutual funds [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1,278 | 1,231 | |
Equity mutual funds [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 7 | 6 | |
Bond mutual funds [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 641 | 649 | |
Bond mutual funds [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 638 | 646 | |
Bond mutual funds [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 3 | 3 | |
Equity securities [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 747 | 625 | |
Equity securities [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 747 | 624 | |
Equity securities [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | ||
Other investments [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 2 | |
Other investments [Member] | Level 3 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 2 | |
Cash and short-term securities [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 273 | 189 | |
Cash and short-term securities [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 92 | 64 | |
Cash and short-term securities [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 181 | 125 | |
Cash and short-term securities, U.S. Treasury securities [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 45 | 25 | |
Cash and short-term securities, U.S. Treasury securities [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 45 | 25 | |
Money market mutual funds [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 20 | 23 | |
Money market mutual funds [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 19 | 19 | |
Money market mutual funds [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 1 | 4 | |
Cash and short-term securities, other [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 208 | 141 | |
Cash and short-term securities, other [Member] | Level 1 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | 28 | 20 | |
Cash and short-term securities, other [Member] | Level 2 [Member] | Pension Plans [Member] | |||
Defined benefit plan disclosure | |||
Fair value of plan assets | $ 180 | $ 121 |
Pension Plans Retirement Benefi
Pension Plans Retirement Benefits and Savings Plans (details) - Future Payments $ in Millions | Dec. 31, 2016USD ($) |
Pension Plans [Member] | |
Estimated Future Benefit Payments | |
Benefits expected to be paid, 2017 | $ 230 |
Benefits expected to be paid, 2018 | 240 |
Benefits expected to be paid, 2019 | 247 |
Benefits expected to be paid, 2020 | 253 |
Benefits expected to be paid, 2021 | 258 |
Benefits expected to be paid, 2022 through 2026 | 1,327 |
Postretirement Benefit Plans [Member] | |
Estimated Future Benefit Payments | |
Benefits expected to be paid, 2017 | 13 |
Benefits expected to be paid, 2018 | 14 |
Benefits expected to be paid, 2019 | 14 |
Benefits expected to be paid, 2020 | 14 |
Benefits expected to be paid, 2021 | 14 |
Benefits expected to be paid, 2022 through 2026 | $ 71 |
Pension Plans, Retirement Be106
Pension Plans, Retirement Benefits and Savings Plans (details) - Savings Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Savings Plan | |||
Expense related to all savings plans | $ 114,000,000 | $ 109,000,000 | $ 103,000,000 |
The Travelers 401(k) Savings Plan [Member] | |||
Savings Plan | |||
Maximum annual match | $ 6,000 | ||
Vesting percentage of employer match after vesting period | 100.00% | ||
Vesting period | 3 years | ||
The Travelers 401(k) Savings Plan [Member] | Maxiumum [Member] | |||
Savings Plan | |||
Matching contribution as a percent of eligible pay | 5.00% |
Leases (details)
Leases (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases disclosure | |||
Rent expense | $ 197 | $ 202 | $ 215 |
Future minimum annual rental payments due for 2017 | 147 | ||
Future minimum annual rental payments due for 2018 | 118 | ||
Future minimum annual rental payments due for 2019 | 100 | ||
Future minimum annual rental payments due for 2020 | 80 | ||
Future minimum annual rental payments due for 2021 | 60 | ||
Future minimum annual rental payments due for 2022 and thereafter | 100 | ||
Approximate aggregate future sublease rental income that will partially offset the lease commitments | $ 4 |
Contingencies, Commitments a108
Contingencies, Commitments and Guarantees (details) - Asbestos Direct Action Litigation [Member] $ in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended |
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2002item | |
Loss Contingencies | |||
Number of purported class action suits filed against the Company and other insurers in state court in West Virginia, Massachusetts and Hawaii relative to asbestos direct action litigation | item | 2 | ||
Settlement amount | $ 502 | ||
Total settlement amount | 579 | $ 579 | |
Interest related to settlement award | $ 77 |
Contingencies, Commitments a109
Contingencies, Commitments and Guarantees (details) - Gain Contingencies $ in Millions | 3 Months Ended | 76 Months Ended | |||
Dec. 31, 2016USD ($)item | Dec. 31, 2016USD ($)item | Nov. 07, 2016item | Nov. 06, 2016USD ($) | Dec. 31, 2015USD ($) | |
Gain Contingencies | |||||
Reinsurance recoverables | $ 8,287 | $ 8,287 | $ 8,910 | ||
United States Fidelity & Guaranty Company v. American Re-Insurance Company, et al. [Member] | |||||
Gain Contingencies | |||||
Number of discrete issues for which the Court of Appeals remanded the case for trial | item | 2 | 2 | |||
Number of reinsurer defendants | item | 2 | 2 | 3 | ||
Number of reinsurers against which judgment was entered in a reinsurance dispute who are subsidiaries of the same company | item | 2 | 2 | |||
Number of reinsurers with whom the Company reached a settlement agreeement | item | 1 | ||||
Payment received from settlement fund (pre-tax) | $ 126 | ||||
Payment received from settlement fund (after-tax) | 82 | ||||
Reinsurance recoverables | $ 31 | $ 31 | $ 238 | ||
Total settlement amount | 69 | ||||
Settlement amount, reinsurance recoverables | 31 | ||||
Interest related to settlement award | $ 38 | ||||
Annual interest rate accruing on judgment not yet paid | 9.00% |
Contingencies, Commitments a110
Contingencies, Commitments and Guarantees (details) - Commitments - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Contingencies and Commitments disclosure | ||
Unfunded commitments to private equity limited partnerships and real estate partnerships | $ 1,600 | $ 1,710 |
Contingencies, Commitments a111
Contingencies, Commitments and Guarantees (details) - Guarantees $ in Millions | Dec. 31, 2016USD ($) |
Indemnifications related to the sale of businesses [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | $ 358 |
Amount recognized on balance sheet for contingent obligation | 2 |
Guarantees of certain investments and third-party loans [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | 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 |
Consolidating Financial Stat112
Consolidating Financial Statements (Unaudited) (details) $ in Millions | Dec. 31, 2016USD ($) |
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 Stat113
Consolidating Financial Statements (details) - Consolidating Statement of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Consolidating Statement of Income | ||||||||||||
Premiums | $ 24,534 | $ 23,874 | $ 23,713 | |||||||||
Net investment income | 2,302 | 2,379 | 2,787 | |||||||||
Fee income | 458 | 460 | 450 | |||||||||
Net realized investment gains (losses) | [1] | 68 | 3 | 79 | ||||||||
Other revenues | 263 | 99 | 145 | |||||||||
Total revenues | $ 7,193 | $ 6,961 | $ 6,785 | $ 6,686 | $ 6,678 | $ 6,798 | $ 6,710 | $ 6,629 | 27,625 | 26,815 | 27,174 | |
Claims and claim adjustment expenses | 15,070 | 13,723 | 13,870 | |||||||||
Amortization of deferred acquisition costs | 3,985 | 3,885 | 3,882 | |||||||||
General and administrative expenses | 4,154 | 4,094 | 3,964 | |||||||||
Interest expense | 363 | 373 | 369 | |||||||||
Total claims and expenses | 5,891 | 6,014 | 5,898 | 5,769 | 5,469 | 5,491 | 5,634 | 5,481 | 23,572 | 22,075 | 22,085 | |
Income before income taxes | 1,302 | 947 | 887 | 917 | 1,209 | 1,307 | 1,076 | 1,148 | 4,053 | 4,740 | 5,089 | |
Income tax expense (benefit) | 359 | 231 | 223 | 226 | 343 | 379 | 264 | 315 | 1,039 | 1,301 | 1,397 | |
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | 3,014 | 3,439 | 3,692 | |
Total other-than-temporary impairment losses | (40) | (54) | (22) | |||||||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (29) | (52) | (26) | |||||||||
Other-than-temporary impairment gains (losses) recognized in other comprehensive income | (11) | (2) | 4 | |||||||||
TPC [Member] | ||||||||||||
Consolidating Statement of Income | ||||||||||||
Premiums | 16,788 | 16,254 | 16,097 | |||||||||
Net investment income | 1,569 | 1,612 | 1,874 | |||||||||
Fee income | 458 | 460 | 448 | |||||||||
Net realized investment gains (losses) | 30 | 13 | 12 | |||||||||
Other revenues | 248 | 78 | 125 | |||||||||
Total revenues | 19,093 | 18,417 | 18,556 | |||||||||
Claims and claim adjustment expenses | 10,232 | 9,208 | 9,274 | |||||||||
Amortization of deferred acquisition costs | 2,702 | 2,627 | 2,604 | |||||||||
General and administrative expenses | 2,928 | 2,853 | 2,755 | |||||||||
Interest expense | 48 | 48 | 48 | |||||||||
Total claims and expenses | 15,910 | 14,736 | 14,681 | |||||||||
Income before income taxes | 3,183 | 3,681 | 3,875 | |||||||||
Income tax expense (benefit) | 999 | 1,015 | 1,095 | |||||||||
Net income | 2,184 | 2,666 | 2,780 | |||||||||
Total other-than-temporary impairment losses | (19) | (19) | (16) | |||||||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (13) | (18) | (19) | |||||||||
Other-than-temporary impairment gains (losses) recognized in other comprehensive income | (6) | (1) | 3 | |||||||||
Other Subsidiaries [Member] | ||||||||||||
Consolidating Statement of Income | ||||||||||||
Premiums | 7,746 | 7,620 | 7,616 | |||||||||
Net investment income | 720 | 760 | 907 | |||||||||
Fee income | 2 | |||||||||||
Net realized investment gains (losses) | 39 | (11) | 64 | |||||||||
Other revenues | 36 | 21 | 20 | |||||||||
Total revenues | 8,541 | 8,390 | 8,609 | |||||||||
Claims and claim adjustment expenses | 4,838 | 4,515 | 4,596 | |||||||||
Amortization of deferred acquisition costs | 1,283 | 1,258 | 1,278 | |||||||||
General and administrative expenses | 1,242 | 1,225 | 1,194 | |||||||||
Total claims and expenses | 7,363 | 6,998 | 7,068 | |||||||||
Income before income taxes | 1,178 | 1,392 | 1,541 | |||||||||
Income tax expense (benefit) | 208 | 394 | 417 | |||||||||
Net income | 970 | 998 | 1,124 | |||||||||
Total other-than-temporary impairment losses | (20) | (35) | (6) | |||||||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (15) | (34) | (7) | |||||||||
Other-than-temporary impairment gains (losses) recognized in other comprehensive income | (5) | (1) | 1 | |||||||||
Travelers [Member] | ||||||||||||
Consolidating Statement of Income | ||||||||||||
Net investment income | 13 | 7 | 6 | |||||||||
Net realized investment gains (losses) | (1) | 1 | 3 | |||||||||
Total revenues | 12 | 8 | 9 | |||||||||
General and administrative expenses | 5 | 16 | 15 | |||||||||
Interest expense | 315 | 325 | 321 | |||||||||
Total claims and expenses | 320 | 341 | 336 | |||||||||
Income before income taxes | (308) | (333) | (327) | |||||||||
Income tax expense (benefit) | (168) | (108) | (115) | |||||||||
Net income of subsidiaries | 3,154 | 3,664 | 3,904 | |||||||||
Net income | 3,014 | 3,439 | 3,692 | |||||||||
Total other-than-temporary impairment losses | (1) | |||||||||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (1) | 0 | 0 | |||||||||
Other-than-temporary impairment gains (losses) recognized in other comprehensive income | 0 | 0 | 0 | |||||||||
Eliminations [Member] | ||||||||||||
Consolidating Statement of Income | ||||||||||||
Other revenues | (21) | |||||||||||
Total revenues | (21) | |||||||||||
General and administrative expenses | (21) | |||||||||||
Total claims and expenses | (21) | |||||||||||
Net income of subsidiaries | (3,154) | (3,664) | (3,904) | |||||||||
Net income | $ (3,154) | $ (3,664) | $ (3,904) | |||||||||
[1] | Total other-than-temporary impairment (OTTI) losses were $(40) million, $(54) million and $(22) million for the years ended December 31, 2016, 2015 and 2014, respectively. Of total OTTI, credit losses of $(29) million, $(52) million and $(26) million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $(11) million, $(2) million and $4 million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidating Financial Stat114
Consolidating Financial Statements (details) - Consolidating Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidating Statement of Comprehensive Income | |||||||||||
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | (883) | (1,020) | 976 | ||||||||
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 21 | (14) | 2 | ||||||||
Net changes in benefit plan assets and obligations | 16 | 66 | (494) | ||||||||
Net changes in unrealized foreign currency translation | (41) | (461) | (289) | ||||||||
Other comprehensive income (loss) before income taxes | (887) | (1,429) | 195 | ||||||||
Income tax expense (benefit) | (289) | (392) | 125 | ||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (598) | (1,037) | 70 | ||||||||
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 | ||||||||
Comprehensive income | 2,416 | 2,402 | 3,762 | ||||||||
TPC [Member] | |||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||
Net income | 2,184 | 2,666 | 2,780 | ||||||||
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | (696) | (610) | 681 | ||||||||
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 11 | (12) | 9 | ||||||||
Net changes in benefit plan assets and obligations | 25 | 2 | (15) | ||||||||
Net changes in unrealized foreign currency translation | 73 | (306) | (173) | ||||||||
Other comprehensive income (loss) before income taxes | (587) | (926) | 502 | ||||||||
Income tax expense (benefit) | (222) | (257) | 207 | ||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (365) | (669) | 295 | ||||||||
Other comprehensive income (loss), net of taxes | (365) | (669) | 295 | ||||||||
Comprehensive income | 1,819 | 1,997 | 3,075 | ||||||||
Other Subsidiaries [Member] | |||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||
Net income | 970 | 998 | 1,124 | ||||||||
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | (198) | (407) | 289 | ||||||||
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 10 | (2) | (7) | ||||||||
Net changes in benefit plan assets and obligations | 11 | (8) | |||||||||
Net changes in unrealized foreign currency translation | (114) | (155) | (116) | ||||||||
Other comprehensive income (loss) before income taxes | (291) | (564) | 158 | ||||||||
Income tax expense (benefit) | (66) | (156) | 81 | ||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (225) | (408) | 77 | ||||||||
Other comprehensive income (loss), net of taxes | (225) | (408) | 77 | ||||||||
Comprehensive income | 745 | 590 | 1,201 | ||||||||
Travelers [Member] | |||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||
Net income | 3,014 | 3,439 | 3,692 | ||||||||
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | 11 | (3) | 6 | ||||||||
Net changes in benefit plan assets and obligations | (20) | 64 | (471) | ||||||||
Other comprehensive income (loss) before income taxes | (9) | 61 | (465) | ||||||||
Income tax expense (benefit) | (1) | 21 | (163) | ||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (8) | 40 | (302) | ||||||||
Other comprehensive income (loss) of subsidiaries | (590) | (1,077) | 372 | ||||||||
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 | ||||||||
Comprehensive income | 2,416 | 2,402 | 3,762 | ||||||||
Eliminations [Member] | |||||||||||
Consolidating Statement of Comprehensive Income | |||||||||||
Net income | (3,154) | (3,664) | (3,904) | ||||||||
Other comprehensive income (loss) of subsidiaries | 590 | 1,077 | (372) | ||||||||
Other comprehensive income (loss), net of taxes | 590 | 1,077 | (372) | ||||||||
Comprehensive income | $ (2,564) | $ (2,587) | $ (4,276) |
Consolidating Financial Stat115
Consolidating Financial Statements (details) - Consolidating Balance Sheet (Unaudited) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | $ 60,515 | $ 60,658 | ||
Equity securities, available for sale, at fair value | 732 | 705 | ||
Real estate investments | 928 | 989 | ||
Short-term securities | 4,865 | 4,671 | ||
Other investments | 3,448 | 3,447 | ||
Total investments | 70,488 | 70,470 | ||
Cash | 307 | 380 | $ 374 | $ 294 |
Investment income accrued | 630 | 642 | ||
Premiums receivable | 6,722 | 6,437 | ||
Reinsurance recoverables | 8,287 | 8,910 | ||
Ceded unearned premiums | 589 | 656 | ||
Deferred acquisition costs | 1,923 | 1,849 | 1,835 | |
Deferred taxes | 465 | 296 | ||
Contractholder receivables | 4,609 | 4,374 | ||
Goodwill | 3,580 | 3,573 | ||
Other intangible assets | 268 | 279 | ||
Other assets | 2,377 | 2,318 | ||
Total assets | 100,245 | 100,184 | ||
Claims and claim adjustment expense reserves | 47,949 | 48,295 | 49,850 | |
Unearned premium reserves | 12,329 | 11,971 | 11,839 | |
Contractholder payables | 4,609 | 4,374 | ||
Payables for reinsurance premiums | 273 | 296 | ||
Debt | 6,437 | 6,344 | ||
Other liabilities | 5,427 | 5,306 | ||
Total liabilities | 77,024 | 76,586 | ||
Common stock | 22,614 | 22,172 | ||
Retained earnings | 32,196 | 29,945 | ||
Accumulated other comprehensive income (loss) | (755) | (157) | ||
Treasury stock, at cost | (30,834) | (28,362) | ||
Total shareholders' equity | 23,221 | 23,598 | 24,836 | |
Total liabilities and shareholders' equity | 100,245 | 100,184 | ||
Fixed maturities, available for sale, amortized cost | 59,650 | 58,878 | ||
Equity securities, available for sale, cost | $ 504 | $ 528 | ||
Common stock, shares authorized | 1,750 | 1,750 | ||
Common stock, shares issued | 279.6 | 295.9 | ||
Common stock, shares outstanding | 279.6 | 295.9 | ||
Treasury stock, at cost, shares | 489.5 | 467.6 | ||
TPC [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | $ 42,014 | $ 42,289 | ||
Equity securities, available for sale, at fair value | 169 | 189 | ||
Real estate investments | 56 | 56 | ||
Short-term securities | 2,447 | 1,947 | ||
Other investments | 2,569 | 2,516 | ||
Total investments | 47,255 | 46,997 | ||
Cash | 141 | 225 | 221 | 137 |
Investment income accrued | 441 | 453 | ||
Premiums receivable | 4,545 | 4,336 | ||
Reinsurance recoverables | 5,664 | 5,849 | ||
Ceded unearned premiums | 536 | 610 | ||
Deferred acquisition costs | 1,741 | 1,660 | ||
Deferred taxes | 216 | 178 | ||
Contractholder receivables | 3,656 | 3,387 | ||
Goodwill | 2,578 | 2,573 | ||
Other intangible assets | 202 | 203 | ||
Other assets | 1,973 | 1,958 | ||
Total assets | 68,948 | 68,429 | ||
Claims and claim adjustment expense reserves | 32,168 | 31,965 | ||
Unearned premium reserves | 8,575 | 8,335 | ||
Contractholder payables | 3,656 | 3,387 | ||
Payables for reinsurance premiums | 156 | 175 | ||
Debt | 693 | 693 | ||
Other liabilities | 4,106 | 3,958 | ||
Total liabilities | 49,354 | 48,513 | ||
Additional paid-in capital | 11,634 | 11,634 | ||
Retained earnings | 7,933 | 7,888 | ||
Accumulated other comprehensive income (loss) | 27 | 394 | ||
Total shareholders' equity | 19,594 | 19,916 | ||
Total liabilities and shareholders' equity | 68,948 | 68,429 | ||
Other Subsidiaries [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | 18,452 | 18,323 | ||
Equity securities, available for sale, at fair value | 408 | 375 | ||
Real estate investments | 872 | 933 | ||
Short-term securities | 791 | 1,178 | ||
Other investments | 878 | 930 | ||
Total investments | 21,401 | 21,739 | ||
Cash | 164 | 153 | 151 | 154 |
Investment income accrued | 183 | 185 | ||
Premiums receivable | 2,177 | 2,101 | ||
Reinsurance recoverables | 2,623 | 3,061 | ||
Ceded unearned premiums | 53 | 46 | ||
Deferred acquisition costs | 182 | 189 | ||
Deferred taxes | 224 | 83 | ||
Contractholder receivables | 953 | 987 | ||
Goodwill | 1,002 | 1,000 | ||
Other intangible assets | 66 | 76 | ||
Other assets | 370 | 344 | ||
Total assets | 29,398 | 29,964 | ||
Claims and claim adjustment expense reserves | 15,781 | 16,330 | ||
Unearned premium reserves | 3,754 | 3,636 | ||
Contractholder payables | 953 | 987 | ||
Payables for reinsurance premiums | 117 | 121 | ||
Other liabilities | 1,239 | 1,221 | ||
Total liabilities | 21,844 | 22,295 | ||
Common stock | 390 | 390 | ||
Additional paid-in capital | 6,499 | 6,499 | ||
Retained earnings | 797 | 688 | ||
Accumulated other comprehensive income (loss) | (132) | 92 | ||
Total shareholders' equity | 7,554 | 7,669 | ||
Total liabilities and shareholders' equity | 29,398 | 29,964 | ||
Travelers [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | 49 | 46 | ||
Equity securities, available for sale, at fair value | 155 | 141 | ||
Short-term securities | 1,627 | 1,546 | ||
Other investments | 1 | 1 | ||
Total investments | 1,832 | 1,734 | ||
Cash | 2 | 2 | $ 2 | $ 3 |
Investment income accrued | 6 | 4 | ||
Deferred taxes | 25 | 35 | ||
Investment in subsidiaries | 27,137 | 27,573 | ||
Other assets | 34 | 16 | ||
Total assets | 29,036 | 29,364 | ||
Debt | 5,744 | 5,651 | ||
Other liabilities | 82 | 127 | ||
Total liabilities | 5,826 | 5,778 | ||
Common stock | 22,614 | 22,172 | ||
Retained earnings | 32,185 | 29,933 | ||
Accumulated other comprehensive income (loss) | (755) | (157) | ||
Treasury stock, at cost | (30,834) | (28,362) | ||
Total shareholders' equity | 23,210 | 23,586 | ||
Total liabilities and shareholders' equity | $ 29,036 | $ 29,364 | ||
Common stock, shares authorized | 1,750 | 1,750 | ||
Common stock, shares issued | 279.6 | 295.9 | ||
Common stock, shares outstanding | 279.6 | 295.9 | ||
Treasury stock, at cost, shares | 489.5 | 467.6 | ||
Eliminations [Member] | ||||
Consolidating Balance Sheet | ||||
Investment in subsidiaries | $ (27,137) | $ (27,573) | ||
Total assets | (27,137) | (27,573) | ||
Common stock | (390) | (390) | ||
Additional paid-in capital | (18,133) | (18,133) | ||
Retained earnings | (8,719) | (8,564) | ||
Accumulated other comprehensive income (loss) | 105 | (486) | ||
Total shareholders' equity | (27,137) | (27,573) | ||
Total liabilities and shareholders' equity | $ (27,137) | $ (27,573) |
Consolidating Financial Stat116
Consolidating Financial Statements (details) - Consolidating Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidating Statement of Cash Flows | |||||||||||
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 |
Net adjustments to reconcile net income to net cash provided by operating activities | 1,188 | (5) | 1 | ||||||||
Net cash provided by operating activities | 4,202 | 3,434 | 3,693 | ||||||||
Proceeds from maturities of fixed maturities | 8,975 | 11,116 | 10,894 | ||||||||
Proceeds from sales of investments, fixed maturities | 1,417 | 1,950 | 1,049 | ||||||||
Proceeds from sales of investments, equity securities | 92 | 59 | 158 | ||||||||
Proceeds from sales of investments, real estate investments | 69 | 31 | 15 | ||||||||
Proceeds from sales of investments, other investments | 839 | 713 | 855 | ||||||||
Purchases of investments, fixed maturities | (11,609) | (12,090) | (11,325) | ||||||||
Purchases of investments, equity securities | (51) | (49) | (52) | ||||||||
Purchases of investments, real estate investments | (48) | (123) | (48) | ||||||||
Purchases of investments, other investments | (580) | (534) | (554) | ||||||||
Net sales (purchases) of short-term securities | (199) | (326) | (498) | ||||||||
Securities transactions in course of settlement | (21) | (113) | 82 | ||||||||
Acquisition, net of cash acquired | (13) | (12) | |||||||||
Other investing activities | (344) | (304) | (358) | ||||||||
Net cash provided by (used in) investing activities | (1,460) | 317 | 206 | ||||||||
Treasury stock acquired - share repurchase authorization | (2,400) | (3,150) | (3,275) | ||||||||
Treasury stock acquired - net employee share-based compensation | (72) | (74) | (57) | ||||||||
Dividends paid to shareholders | (757) | (739) | (729) | ||||||||
Payment of debt | (400) | (400) | |||||||||
Issuance of debt | 491 | 392 | |||||||||
Issuance of common stock - employee share options | 332 | 183 | 195 | ||||||||
Excess tax benefits from share-based payment arrangements | 55 | 57 | |||||||||
Net cash used in financing activities | (2,806) | (3,733) | (3,809) | ||||||||
Effect of exchange rate changes on cash | (9) | (12) | (10) | ||||||||
Net increase (decrease) in cash | (73) | 6 | 80 | ||||||||
Cash at beginning of year | 380 | 374 | 380 | 374 | 294 | ||||||
Cash at end of year | 307 | 380 | 307 | 380 | 374 | ||||||
Income taxes paid (received) | 892 | 1,207 | 1,147 | ||||||||
Interest paid | 358 | 365 | 365 | ||||||||
TPC [Member] | |||||||||||
Consolidating Statement of Cash Flows | |||||||||||
Net income | 2,184 | 2,666 | 2,780 | ||||||||
Net adjustments to reconcile net income to net cash provided by operating activities | 1,085 | (577) | 343 | ||||||||
Net cash provided by operating activities | 3,269 | 2,089 | 3,123 | ||||||||
Proceeds from maturities of fixed maturities | 6,589 | 7,543 | 6,625 | ||||||||
Proceeds from sales of investments, fixed maturities | 768 | 1,227 | 595 | ||||||||
Proceeds from sales of investments, equity securities | 47 | 25 | 111 | ||||||||
Proceeds from sales of investments, real estate investments | 1 | ||||||||||
Proceeds from sales of investments, other investments | 586 | 503 | 477 | ||||||||
Purchases of investments, fixed maturities | (7,921) | (8,276) | (6,856) | ||||||||
Purchases of investments, equity securities | (6) | (3) | (3) | ||||||||
Purchases of investments, real estate investments | (1) | (1) | (22) | ||||||||
Purchases of investments, other investments | (453) | (423) | (405) | ||||||||
Net sales (purchases) of short-term securities | (501) | 179 | (268) | ||||||||
Securities transactions in course of settlement | 12 | (52) | 44 | ||||||||
Acquisition, net of cash acquired | (13) | (9) | |||||||||
Other investing activities | (334) | (343) | (350) | ||||||||
Net cash provided by (used in) investing activities | (1,214) | 366 | (60) | ||||||||
Dividends paid to parent company | (2,140) | (2,450) | (2,978) | ||||||||
Net cash used in financing activities | (2,140) | (2,450) | (2,978) | ||||||||
Effect of exchange rate changes on cash | 1 | (1) | (1) | ||||||||
Net increase (decrease) in cash | (84) | 4 | 84 | ||||||||
Cash at beginning of year | 225 | 221 | 225 | 221 | 137 | ||||||
Cash at end of year | 141 | 225 | 141 | 225 | 221 | ||||||
Income taxes paid (received) | 737 | 1,032 | 947 | ||||||||
Interest paid | 47 | 47 | 47 | ||||||||
Other Subsidiaries [Member] | |||||||||||
Consolidating Statement of Cash Flows | |||||||||||
Net income | 970 | 998 | 1,124 | ||||||||
Net adjustments to reconcile net income to net cash provided by operating activities | 66 | 414 | (293) | ||||||||
Net cash provided by operating activities | 1,036 | 1,412 | 831 | ||||||||
Proceeds from maturities of fixed maturities | 2,380 | 3,563 | 4,258 | ||||||||
Proceeds from sales of investments, fixed maturities | 647 | 723 | 453 | ||||||||
Proceeds from sales of investments, equity securities | 45 | 34 | 43 | ||||||||
Proceeds from sales of investments, real estate investments | 69 | 31 | 14 | ||||||||
Proceeds from sales of investments, other investments | 253 | 210 | 378 | ||||||||
Purchases of investments, fixed maturities | (3,676) | (3,787) | (4,465) | ||||||||
Purchases of investments, equity securities | (42) | (43) | (42) | ||||||||
Purchases of investments, real estate investments | (47) | (122) | (26) | ||||||||
Purchases of investments, other investments | (127) | (111) | (149) | ||||||||
Net sales (purchases) of short-term securities | 383 | (489) | (223) | ||||||||
Securities transactions in course of settlement | (32) | (61) | 38 | ||||||||
Acquisition, net of cash acquired | (3) | ||||||||||
Other investing activities | (10) | 39 | (8) | ||||||||
Net cash provided by (used in) investing activities | (157) | (13) | 268 | ||||||||
Dividends paid to parent company | (858) | (1,383) | (1,093) | ||||||||
Capital contributions, loans and other transactions between subsidiaries | (3) | ||||||||||
Net cash used in financing activities | (858) | (1,386) | (1,093) | ||||||||
Effect of exchange rate changes on cash | (10) | (11) | (9) | ||||||||
Net increase (decrease) in cash | 11 | 2 | (3) | ||||||||
Cash at beginning of year | 153 | 151 | 153 | 151 | 154 | ||||||
Cash at end of year | 164 | 153 | 164 | 153 | 151 | ||||||
Income taxes paid (received) | 287 | 384 | 336 | ||||||||
Travelers [Member] | |||||||||||
Consolidating Statement of Cash Flows | |||||||||||
Net income | 3,014 | 3,439 | 3,692 | ||||||||
Net adjustments to reconcile net income to net cash provided by operating activities | (119) | 330 | 118 | ||||||||
Net cash provided by operating activities | 2,895 | 3,769 | 3,810 | ||||||||
Proceeds from maturities of fixed maturities | 6 | 10 | 11 | ||||||||
Proceeds from sales of investments, fixed maturities | 2 | 1 | |||||||||
Proceeds from sales of investments, equity securities | 4 | ||||||||||
Purchases of investments, fixed maturities | (12) | (27) | (4) | ||||||||
Purchases of investments, equity securities | (3) | (3) | (7) | ||||||||
Net sales (purchases) of short-term securities | (81) | (16) | (7) | ||||||||
Securities transactions in course of settlement | (1) | ||||||||||
Net cash provided by (used in) investing activities | (89) | (36) | (2) | ||||||||
Treasury stock acquired - share repurchase authorization | (2,400) | (3,150) | (3,275) | ||||||||
Treasury stock acquired - net employee share-based compensation | (72) | (74) | (57) | ||||||||
Dividends paid to shareholders | (757) | (739) | (729) | ||||||||
Payment of debt | (400) | (400) | |||||||||
Issuance of debt | 491 | 392 | |||||||||
Issuance of common stock - employee share options | 332 | 183 | 195 | ||||||||
Excess tax benefits from share-based payment arrangements | 55 | 57 | |||||||||
Net cash used in financing activities | (2,806) | (3,733) | (3,809) | ||||||||
Net increase (decrease) in cash | (1) | ||||||||||
Cash at beginning of year | $ 2 | $ 2 | 2 | 2 | 3 | ||||||
Cash at end of year | $ 2 | $ 2 | 2 | 2 | 2 | ||||||
Income taxes paid (received) | (132) | (209) | (136) | ||||||||
Interest paid | 311 | 318 | 318 | ||||||||
Eliminations [Member] | |||||||||||
Consolidating Statement of Cash Flows | |||||||||||
Net income | (3,154) | (3,664) | (3,904) | ||||||||
Net adjustments to reconcile net income to net cash provided by operating activities | 156 | (172) | (167) | ||||||||
Net cash provided by operating activities | (2,998) | (3,836) | (4,071) | ||||||||
Dividends paid to parent company | 2,998 | 3,833 | 4,071 | ||||||||
Capital contributions, loans and other transactions between subsidiaries | 3 | ||||||||||
Net cash used in financing activities | $ 2,998 | $ 3,836 | $ 4,071 |
Selected Quarterly Financial117
Selected Quarterly Financial Data (Unaudited) (details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Data (Unaudited) disclosure | |||||||||||
Total revenues | $ 7,193 | $ 6,961 | $ 6,785 | $ 6,686 | $ 6,678 | $ 6,798 | $ 6,710 | $ 6,629 | $ 27,625 | $ 26,815 | $ 27,174 |
Total expenses | 5,891 | 6,014 | 5,898 | 5,769 | 5,469 | 5,491 | 5,634 | 5,481 | 23,572 | 22,075 | 22,085 |
Income before income taxes | 1,302 | 947 | 887 | 917 | 1,209 | 1,307 | 1,076 | 1,148 | 4,053 | 4,740 | 5,089 |
Income tax expense | 359 | 231 | 223 | 226 | 343 | 379 | 264 | 315 | 1,039 | 1,301 | 1,397 |
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 |
Net income per share, basic | $ 3.32 | $ 2.48 | $ 2.27 | $ 2.33 | $ 2.87 | $ 3 | $ 2.56 | $ 2.58 | $ 10.39 | $ 10.99 | $ 10.82 |
Net income per common share, diluted | $ 3.28 | $ 2.45 | $ 2.24 | $ 2.30 | $ 2.83 | $ 2.97 | $ 2.53 | $ 2.55 | $ 10.28 | $ 10.88 | $ 10.70 |
Schedule II (details) - Condens
Schedule II (details) - Condensed Income Statement - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Condensed Statement of Income | ||||||||||||
Net investment income | $ 2,302 | $ 2,379 | $ 2,787 | |||||||||
Net realized investment gains (losses) | [1] | 68 | 3 | 79 | ||||||||
Total revenues | $ 7,193 | $ 6,961 | $ 6,785 | $ 6,686 | $ 6,678 | $ 6,798 | $ 6,710 | $ 6,629 | 27,625 | 26,815 | 27,174 | |
Interest expense | 363 | 373 | 369 | |||||||||
Expenses, other | 4,154 | 4,094 | 3,964 | |||||||||
Total claims and expenses | 5,891 | 6,014 | 5,898 | 5,769 | 5,469 | 5,491 | 5,634 | 5,481 | 23,572 | 22,075 | 22,085 | |
Income before income taxes | 1,302 | 947 | 887 | 917 | 1,209 | 1,307 | 1,076 | 1,148 | 4,053 | 4,740 | 5,089 | |
Income tax expense (benefit) | 359 | 231 | 223 | 226 | 343 | 379 | 264 | 315 | 1,039 | 1,301 | 1,397 | |
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | 3,014 | 3,439 | 3,692 | |
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (29) | (52) | (26) | |||||||||
Other-than-temporary impairment gains or losses recognized in other comprehensive income (loss) | (11) | (2) | 4 | |||||||||
Travelers [Member] | ||||||||||||
Condensed Statement of Income | ||||||||||||
Net investment income | 13 | 7 | 6 | |||||||||
Net realized investment gains (losses) | (1) | 1 | 3 | |||||||||
Total revenues | 12 | 8 | 9 | |||||||||
Interest expense | 315 | 325 | 321 | |||||||||
Expenses, other | 5 | 16 | 15 | |||||||||
Total claims and expenses | 320 | 341 | 336 | |||||||||
Income before income taxes | (308) | (333) | (327) | |||||||||
Income tax expense (benefit) | (168) | (108) | (115) | |||||||||
Loss before net income of subsidiaries | (140) | (225) | (212) | |||||||||
Net income of subsidiaries | 3,154 | 3,664 | 3,904 | |||||||||
Net income | 3,014 | 3,439 | 3,692 | |||||||||
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (1) | 0 | 0 | |||||||||
Other-than-temporary impairment gains or losses recognized in other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | |||||||||
[1] | Total other-than-temporary impairment (OTTI) losses were $(40) million, $(54) million and $(22) million for the years ended December 31, 2016, 2015 and 2014, respectively. Of total OTTI, credit losses of $(29) million, $(52) million and $(26) million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $(11) million, $(2) million and $4 million for the years ended December 31, 2016, 2015 and 2014, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Schedule II (details) - Cond119
Schedule II (details) - Condensed Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Statement of Comprehensive Income | |||||||||||
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | (883) | (1,020) | 976 | ||||||||
Net changes in benefit plan assets and obligations | 16 | 66 | (494) | ||||||||
Other comprehensive income (loss) before income taxes | (887) | (1,429) | 195 | ||||||||
Income tax expense (benefit) | (289) | (392) | 125 | ||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (598) | (1,037) | 70 | ||||||||
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 | ||||||||
Comprehensive income | 2,416 | 2,402 | 3,762 | ||||||||
Travelers [Member] | |||||||||||
Condensed Statement of Comprehensive Income | |||||||||||
Net income | 3,014 | 3,439 | 3,692 | ||||||||
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | 11 | (3) | 6 | ||||||||
Net changes in benefit plan assets and obligations | (20) | 64 | (471) | ||||||||
Other comprehensive income (loss) before income taxes | (9) | 61 | (465) | ||||||||
Income tax expense (benefit) | (1) | 21 | (163) | ||||||||
Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries | (8) | 40 | (302) | ||||||||
Other comprehensive income (loss) of subsidiaries | (590) | (1,077) | 372 | ||||||||
Other comprehensive income (loss), net of taxes | (598) | (1,037) | 70 | ||||||||
Comprehensive income | $ 2,416 | $ 2,402 | $ 3,762 |
Schedule II (details) - Cond120
Schedule II (details) - Condensed Balance Sheet - USD ($) shares in Millions, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet | |||
Fixed maturities, at fair value | $ 60,515 | $ 60,658 | |
Equity securities | 732 | 705 | |
Short-term securities | 4,865 | 4,671 | |
Total assets | 100,245 | 100,184 | |
Debt | 6,437 | 6,344 | |
Total liabilities | 77,024 | 76,586 | |
Common stock (1,750.0 shares authorized; 279.6 and 295.9 shares issued and outstanding) | 22,614 | 22,172 | |
Retained earnings | 32,196 | 29,945 | |
Accumulated other comprehensive loss | (755) | (157) | |
Treasury stock, at cost (489.5 and 467.6 shares) | (30,834) | (28,362) | |
Total shareholders' equity | 23,221 | 23,598 | $ 24,836 |
Total liabilities and shareholders' equity | $ 100,245 | $ 100,184 | |
Common stock, shares authorized | 1,750 | 1,750 | |
Common stock, shares issued | 279.6 | 295.9 | |
Common stock, shares outstanding | 279.6 | 295.9 | |
Treasury stock, at cost, shares | 489.5 | 467.6 | |
Travelers [Member] | |||
Condensed Balance Sheet | |||
Fixed maturities, at fair value | $ 49 | $ 46 | |
Equity securities | 155 | 141 | |
Short-term securities | 1,627 | 1,546 | |
Investment in subsidiaries | 27,137 | 27,573 | |
Other assets | 68 | 58 | |
Total assets | 29,036 | 29,364 | |
Debt | 5,744 | 5,651 | |
Other liabilities | 82 | 127 | |
Total liabilities | 5,826 | 5,778 | |
Common stock (1,750.0 shares authorized; 279.6 and 295.9 shares issued and outstanding) | 22,614 | 22,172 | |
Retained earnings | 32,185 | 29,933 | |
Accumulated other comprehensive loss | (755) | (157) | |
Treasury stock, at cost (489.5 and 467.6 shares) | (30,834) | (28,362) | |
Total shareholders' equity | 23,210 | 23,586 | |
Total liabilities and shareholders' equity | $ 29,036 | $ 29,364 | |
Common stock, shares authorized | 1,750 | 1,750 | |
Common stock, shares issued | 279.6 | 295.9 | |
Common stock, shares outstanding | 279.6 | 295.9 | |
Treasury stock, at cost, shares | 489.5 | 467.6 |
Schedule II (details) - Cond121
Schedule II (details) - Condensed Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Statement of Cash Flows | |||||||||||
Net income | $ 943 | $ 716 | $ 664 | $ 691 | $ 866 | $ 928 | $ 812 | $ 833 | $ 3,014 | $ 3,439 | $ 3,692 |
Deferred federal income tax expense (benefit) | 110 | 117 | 121 | ||||||||
Other operating activities | 189 | 56 | 63 | ||||||||
Net cash provided by operating activities | 4,202 | 3,434 | 3,693 | ||||||||
Net purchases of short-term securities | (199) | (326) | (498) | ||||||||
Net cash provided by (used in) investing activities | (1,460) | 317 | 206 | ||||||||
Treasury stock acquired - share repurchase authorization | (2,400) | (3,150) | (3,275) | ||||||||
Treasury stock acquired - net employee share-based compensation | (72) | (74) | (57) | ||||||||
Dividends paid to shareholders | (757) | (739) | (729) | ||||||||
Payment of debt | (400) | (400) | |||||||||
Issuance of debt | 491 | 392 | |||||||||
Issuance of common stock - employee share options | 332 | 183 | 195 | ||||||||
Net cash used in financing activities | (2,806) | (3,733) | (3,809) | ||||||||
Net increase (decrease) in cash | (73) | 6 | 80 | ||||||||
Cash at beginning of year | 380 | 374 | 380 | 374 | 294 | ||||||
Cash at end of year | 307 | 380 | 307 | 380 | 374 | ||||||
Cash received during the year for taxes | (892) | (1,207) | (1,147) | ||||||||
Cash paid during the year for interest | 358 | 365 | 365 | ||||||||
Travelers [Member] | |||||||||||
Condensed Statement of Cash Flows | |||||||||||
Net income | 3,014 | 3,439 | 3,692 | ||||||||
Equity in net income of subsidiaries | (3,154) | (3,664) | (3,904) | ||||||||
Dividends received from consolidated subsidiaries | 2,998 | 3,833 | 4,071 | ||||||||
Capital received from subsidiaries | 3 | ||||||||||
Deferred federal income tax expense (benefit) | 12 | (6) | 51 | ||||||||
Change in income taxes payable | (48) | 51 | (87) | ||||||||
Other operating activities | 73 | 113 | (13) | ||||||||
Net cash provided by operating activities | 2,895 | 3,769 | 3,810 | ||||||||
Net purchases of short-term securities | (81) | (16) | (7) | ||||||||
Other investments, net | (8) | (20) | 5 | ||||||||
Net cash provided by (used in) investing activities | (89) | (36) | (2) | ||||||||
Treasury stock acquired - share repurchase authorization | (2,400) | (3,150) | (3,275) | ||||||||
Treasury stock acquired - net employee share-based compensation | (72) | (74) | (57) | ||||||||
Dividends paid to shareholders | (757) | (739) | (729) | ||||||||
Payment of debt | (400) | (400) | |||||||||
Issuance of debt | 491 | 392 | |||||||||
Issuance of common stock - employee share options | 332 | 183 | 195 | ||||||||
Other financing activities | 55 | 57 | |||||||||
Net cash used in financing activities | (2,806) | (3,733) | (3,809) | ||||||||
Net increase (decrease) in cash | (1) | ||||||||||
Cash at beginning of year | $ 2 | $ 2 | 2 | 2 | 3 | ||||||
Cash at end of year | $ 2 | $ 2 | 2 | 2 | 2 | ||||||
Cash received during the year for taxes | 132 | 209 | 136 | ||||||||
Cash paid during the year for interest | $ 311 | $ 318 | $ 318 |
Schedule II (details) - Guarant
Schedule II (details) - Guarantees Footnote | 12 Months Ended |
Dec. 31, 2016 | |
Schedule II | |
Schedule II Guarantees Footnote [Text Block] | 1. GUARANTEES The Travelers Companies, Inc. (TRV) fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033. TRV also |
Schedule II (details) - Guar123
Schedule II (details) - Guarantees Footnote (details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Guarantor obligations | ||
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 700 | |
7.75% Senior notes due April 15, 2026 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 200 | |
Interest rate (percent) | 7.75% | 7.75% |
6.375% Senior notes due March 15, 2033 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 500 | |
Interest rate (percent) | 6.375% | 6.375% |
Guarantees on payment of principal, premiums and interest on certain debt obligations [Member] | Travelers [Member] | 7.75% Senior notes due April 15, 2026 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 200 | |
Interest rate (percent) | 7.75% | |
Guarantees on payment of principal, premiums and interest on certain debt obligations [Member] | Travelers [Member] | 6.375% Senior notes due March 15, 2033 [Member] | ||
Guarantor obligations | ||
Amount of certain debt obligations of TPC that are unconditionally guaranteed by The Travelers Companies, Inc. | $ 500 | |
Interest rate (percent) | 6.375% |
Schedule III (details)
Schedule III (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule III | |||
Deferred acquisition costs | $ 1,923 | $ 1,849 | $ 1,835 |
Claims and claim adjustment expense reserves | 47,949 | 48,295 | 49,850 |
Unearned premiums | 12,329 | 11,971 | 11,839 |
Earned premiums | 24,534 | 23,874 | 23,713 |
Net investment income | 2,302 | 2,379 | 2,787 |
Claims and claim adjustment expenses | 15,070 | 13,723 | 13,870 |
Amortization of deferred acquisition costs | 3,985 | 3,885 | 3,882 |
Other operating expenses | 4,517 | 4,467 | 4,333 |
Net written premiums | 24,958 | 24,121 | 23,904 |
Business Insurance [Member] | |||
Schedule III | |||
Net written premiums | 13,900 | 13,774 | 13,677 |
Bond & Specialty Insurance [Member] | |||
Schedule III | |||
Net written premiums | 2,271 | 2,273 | 2,294 |
Personal Insurance [Member] | |||
Schedule III | |||
Net written premiums | 8,787 | 8,074 | 7,933 |
Reportable Segments [Member] | |||
Schedule III | |||
Deferred acquisition costs | 1,923 | 1,849 | 1,835 |
Claims and claim adjustment expense reserves | 47,929 | 48,272 | 49,824 |
Unearned premiums | 12,329 | 11,971 | 11,839 |
Earned premiums | 24,534 | 23,874 | 23,713 |
Net investment income | 2,302 | 2,379 | 2,787 |
Claims and claim adjustment expenses | 15,070 | 13,723 | 13,870 |
Amortization of deferred acquisition costs | 3,985 | 3,885 | 3,882 |
Other operating expenses | 4,123 | 4,063 | 3,933 |
Net written premiums | 24,958 | 24,121 | 23,904 |
Reportable Segments [Member] | Business Insurance [Member] | |||
Schedule III | |||
Deferred acquisition costs | 1,026 | 1,008 | 1,002 |
Claims and claim adjustment expense reserves | 39,555 | 39,983 | 40,713 |
Unearned premiums | 6,725 | 6,741 | 6,707 |
Earned premiums | 13,855 | 13,698 | 13,515 |
Net investment income | 1,701 | 1,757 | 2,072 |
Claims and claim adjustment expenses | 8,753 | 8,409 | 8,458 |
Amortization of deferred acquisition costs | 2,221 | 2,182 | 2,159 |
Other operating expenses | 2,554 | 2,505 | 2,350 |
Net written premiums | 13,900 | 13,774 | 13,677 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | |||
Schedule III | |||
Deferred acquisition costs | 246 | 240 | 237 |
Claims and claim adjustment expense reserves | 3,323 | 3,615 | 3,984 |
Unearned premiums | 1,444 | 1,437 | 1,448 |
Earned premiums | 2,260 | 2,267 | 2,275 |
Net investment income | 239 | 254 | 293 |
Claims and claim adjustment expenses | 633 | 719 | 603 |
Amortization of deferred acquisition costs | 421 | 418 | 417 |
Other operating expenses | 445 | 440 | 460 |
Net written premiums | 2,271 | 2,273 | 2,294 |
Reportable Segments [Member] | Personal Insurance [Member] | |||
Schedule III | |||
Deferred acquisition costs | 651 | 601 | 596 |
Claims and claim adjustment expense reserves | 5,051 | 4,674 | 5,127 |
Unearned premiums | 4,160 | 3,793 | 3,684 |
Earned premiums | 8,419 | 7,909 | 7,923 |
Net investment income | 362 | 368 | 422 |
Claims and claim adjustment expenses | 5,684 | 4,595 | 4,809 |
Amortization of deferred acquisition costs | 1,343 | 1,285 | 1,306 |
Other operating expenses | 1,124 | 1,118 | 1,123 |
Net written premiums | 8,787 | 8,074 | 7,933 |
Other [Member] | |||
Schedule III | |||
Claims and claim adjustment expense reserves | 20 | 23 | 26 |
Other operating expenses | $ 394 | $ 404 | $ 400 |
Schedule V (details)
Schedule V (details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance recoverables [Member] | |||
Schedule V [Roll Forward] | |||
Valuation and qualifying accounts, balance at beginning of period | $ 157 | $ 203 | $ 239 |
Valuation and qualifying accounts, deductions | 41 | 46 | 36 |
Valuation and qualifying accounts, balance at end of period | 116 | 157 | 203 |
Allowance for uncollectible premiums receivable from underwriting activities [Member] | |||
Schedule V [Roll Forward] | |||
Valuation and qualifying accounts, balance at beginning of period | 65 | 70 | 75 |
Valuation and qualifying accounts, charged to costs and expenses | 35 | 38 | 44 |
Valuation and qualifying accounts, deductions | 39 | 43 | 49 |
Valuation and qualifying accounts, balance at end of period | 61 | 65 | 70 |
Allowance for uncollectible deductibles [Member] | |||
Schedule V [Roll Forward] | |||
Valuation and qualifying accounts, balance at beginning of period | 35 | 36 | 39 |
Valuation and qualifying accounts, charged to costs and expenses | 5 | 3 | |
Valuation and qualifying accounts, deductions | 6 | 4 | 3 |
Valuation and qualifying accounts, balance at end of period | $ 34 | $ 35 | $ 36 |
Schedule VI (details)
Schedule VI (details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplementary Information Concerning Property-Casualty Insurance Operations | ||||
Deferred acquisition costs | $ 1,923 | $ 1,849 | $ 1,835 | |
Claims and claim adjustment expense reserves | 47,949 | 48,295 | 49,850 | |
Discount from reserves for unpaid claims | 1,083 | 1,066 | ||
Unearned premiums | 12,329 | 11,971 | 11,839 | |
Earned premiums | 24,534 | 23,874 | 23,713 | |
Net investment income | 2,302 | 2,379 | 2,787 | |
Amortization of deferred acquisition costs | 3,985 | 3,885 | 3,882 | |
Net written premiums | 24,958 | 24,121 | 23,904 | |
Property casualty [Member] | ||||
Supplementary Information Concerning Property-Casualty Insurance Operations | ||||
Deferred acquisition costs | 1,923 | 1,849 | 1,835 | |
Claims and claim adjustment expense reserves | 47,929 | 48,272 | 49,824 | $ 50,865 |
Discount from reserves for unpaid claims | 1,083 | 1,066 | 1,080 | |
Unearned premiums | 12,329 | 11,971 | 11,839 | |
Earned premiums | 24,534 | 23,874 | 23,713 | |
Net investment income | 2,302 | 2,379 | 2,787 | |
Claims and claim adjustment expenses incurred related to current year | 15,675 | 14,471 | 14,688 | |
Claims and claim adjustment expenses incurred related to prior year | (680) | (817) | (885) | |
Amortization of deferred acquisition costs | 3,985 | 3,885 | 3,882 | |
Paid claims and claim adjustment expenses | 14,796 | 14,474 | 14,066 | |
Net written premiums | $ 24,958 | $ 24,121 | $ 23,904 |