Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 17, 2017 | |
Document and Entity Information | ||
Registrant name | Travelers Companies, Inc. | |
Central index key | 86,312 | |
Document type | 10-Q | |
Document period end date | Jun. 30, 2017 | |
Amendment flag | false | |
Current fiscal year end date | --12-31 | |
Well-known seasoned issuer | Yes | |
Voluntary filers | No | |
Current reporting status | Yes | |
Filer category | Large Accelerated Filer | |
Common stock shares outstanding | 275,947,036 | |
Document fiscal year focus | 2,017 | |
Document fiscal period focus | Q2 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenues | |||||
Premiums | $ 6,351 | $ 6,067 | $ 12,534 | $ 12,048 | |
Net investment income | 598 | 549 | 1,208 | 1,093 | |
Fee income | 116 | 119 | 229 | 236 | |
Net realized investment gains | [1] | 80 | 19 | 85 | 10 |
Other revenues | 39 | 31 | 70 | 84 | |
Total revenues | 7,184 | 6,785 | 14,126 | 13,471 | |
Claims and expenses | |||||
Claims and claim adjustment expenses | 4,225 | 3,762 | 8,319 | 7,474 | |
Amortization of deferred acquisition costs | 1,032 | 989 | 2,035 | 1,960 | |
General and administrative expenses | 1,045 | 1,054 | 2,041 | 2,049 | |
Interest expense | 92 | 93 | 181 | 184 | |
Total claims and expenses | 6,394 | 5,898 | 12,576 | 11,667 | |
Income before income taxes | 790 | 887 | 1,550 | 1,804 | |
Income tax expense | 195 | 223 | 338 | 449 | |
Net income | $ 595 | $ 664 | $ 1,212 | $ 1,355 | |
Net income per share | |||||
Basic | $ 2.13 | $ 2.27 | $ 4.32 | $ 4.60 | |
Diluted | $ 2.11 | $ 2.24 | $ 4.28 | $ 4.55 | |
Weighted average number of common shares outstanding | |||||
Basic | 277.5 | 290.1 | 278.6 | 292.1 | |
Diluted | 280 | 293.6 | 281.2 | 295.6 | |
Cash dividends declared per common share | $ 0.72 | $ 0.67 | $ 1.39 | $ 1.28 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(6) million and $(32) million for the six months ended June 30, 2017 and 2016, respectively. Of total OTTI, credit losses of $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(7) million and $(22) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2017 and 2016, and $1 million and $(10) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in other comprehensive income as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidated Statement of Inco3
Consolidated Statement of Income Parentheticals (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statement of Income (Unaudited) | ||||
Total other-than-temporary impairment losses | $ (5) | $ (4) | $ (6) | $ (32) |
Other-than-temporary impairment, credit losses recognized in net realized investment gains | (5) | (4) | (7) | (22) |
Unrealized gains (losses) from other changes in total other-than-temporary impairments recognized in other comprehensive income as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | $ 0 | $ 0 | $ 1 | $ (10) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statement of Comprehensive Income (Unaudited) | ||||
Net income | $ 595 | $ 664 | $ 1,212 | $ 1,355 |
Other comprehensive income: | ||||
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | 327 | 879 | 471 | 1,593 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 2 | 12 | 2 | 17 |
Net changes in benefit plan assets and obligations | 17 | 18 | 34 | 34 |
Net changes in unrealized foreign currency translation | 48 | (35) | 89 | 68 |
Other comprehensive income before income taxes | 394 | 874 | 596 | 1,712 |
Income tax expense | 123 | 323 | 185 | 590 |
Other comprehensive income, net of taxes | 271 | 551 | 411 | 1,122 |
Comprehensive income | $ 866 | $ 1,215 | $ 1,623 | $ 2,477 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited at June 30, 2017) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Fixed maturities, available for sale, at fair value (amortized cost $60,482 and $59,650) | $ 61,907 | $ 60,515 | ||
Equity securities, available for sale, at fair value (cost $558 and $504) | 700 | 732 | ||
Real estate investments | 920 | 928 | ||
Short-term securities | 5,292 | 4,865 | ||
Other investments | 3,512 | 3,448 | ||
Total investments | 72,331 | 70,488 | ||
Cash | 328 | 307 | $ 265 | $ 380 |
Investment income accrued | 602 | 630 | ||
Premiums receivable | 7,345 | 6,722 | ||
Reinsurance recoverables | 8,150 | 8,287 | ||
Ceded unearned premiums | 665 | 589 | ||
Deferred acquisition costs | 2,051 | 1,923 | ||
Deferred taxes | 201 | 465 | ||
Contractholder receivables | 4,700 | 4,609 | ||
Goodwill | 3,589 | 3,580 | ||
Other intangible assets | 264 | 268 | ||
Other assets | 2,443 | 2,377 | ||
Total assets | 102,669 | 100,245 | ||
Liabilities | ||||
Claims and claim adjustment expense reserves | 48,574 | 47,949 | ||
Unearned premium reserves | 13,052 | 12,329 | ||
Contractholder payables | 4,700 | 4,609 | ||
Payables for reinsurance premiums | 364 | 273 | ||
Debt | 6,920 | 6,437 | ||
Other liabilities | 5,201 | 5,427 | ||
Total liabilities | 78,811 | 77,024 | ||
Shareholders' equity | ||||
Common stock (1,750.0 shares authorized; 275.9 and 279.6 shares issued and outstanding) | 22,781 | 22,614 | ||
Retained earnings | 33,016 | 32,196 | ||
Accumulated other comprehensive loss | (344) | (755) | ||
Treasury stock, at cost (495.7 and 489.5 shares) | (31,595) | (30,834) | ||
Total shareholders' equity | 23,858 | 23,221 | $ 24,714 | |
Total liabilities and shareholders' equity | $ 102,669 | $ 100,245 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals (Unaudited at June 30, 2017) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheet (Unaudited at June 30, 2017) | ||
Fixed maturities, available for sale, amortized cost | $ 60,482 | $ 59,650 |
Equity securities, available for sale, cost | $ 558 | $ 504 |
Common stock, shares authorized | 1,750 | 1,750 |
Common stock, shares issued | 275.9 | 279.6 |
Common stock, shares outstanding | 275.9 | 279.6 |
Treasury stock, at cost, shares | 495.7 | 489.5 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss), net of tax [Member] | Treasury stock, at cost [Member] | Common shares outstanding [Member] |
Shareholders' equity, beginning of year at Dec. 31, 2015 | $ 22,172 | $ 29,945 | $ (157) | $ (28,362) | ||
Shareholders' Equity [Rollforward] | ||||||
Employee share-based compensation | 95 | |||||
Compensation amortization under share-based plans and other changes | 82 | |||||
Net income | $ 1,355 | 1,355 | ||||
Dividends | (378) | |||||
Other | (1) | |||||
Other comprehensive income | 1,122 | 1,122 | ||||
Treasury stock acquired - share repurchase authorization | (1,100) | |||||
Net shares acquired related to employee share-based compensation plans | (59) | |||||
Shareholders' equity, end of period at Jun. 30, 2016 | 24,714 | 22,349 | 30,921 | 965 | (29,521) | |
Balance, beginning of year at Dec. 31, 2015 | 295.9 | |||||
Common shares outstanding | ||||||
Treasury stock acquired - share repurchase authorization | (10) | |||||
Net shares issued under employee share-based compensation plans | 2.4 | |||||
Balance, end of period at Jun. 30, 2016 | 288.3 | |||||
Shareholders' equity, beginning of year at Dec. 31, 2016 | 23,221 | 22,614 | 32,196 | (755) | (30,834) | |
Shareholders' Equity [Rollforward] | ||||||
Employee share-based compensation | 94 | |||||
Compensation amortization under share-based plans and other changes | 73 | |||||
Net income | 1,212 | 1,212 | ||||
Dividends | (391) | |||||
Other | (1) | |||||
Other comprehensive income | 411 | 411 | ||||
Treasury stock acquired - share repurchase authorization | (700) | (700) | ||||
Net shares acquired related to employee share-based compensation plans | (61) | (61) | ||||
Shareholders' equity, end of period at Jun. 30, 2017 | $ 23,858 | $ 22,781 | $ 33,016 | $ (344) | $ (31,595) | |
Balance, beginning of year at Dec. 31, 2016 | 279.6 | 279.6 | ||||
Common shares outstanding | ||||||
Treasury stock acquired - share repurchase authorization | (5.7) | (5.7) | ||||
Net shares issued under employee share-based compensation plans | 2 | |||||
Balance, end of period at Jun. 30, 2017 | 275.9 | 275.9 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash flows from operating activities | |||
Net income | $ 1,212 | $ 1,355 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net realized investment gains | [1] | (85) | (10) |
Depreciation and amortization | 409 | 413 | |
Deferred federal income tax expense | 106 | 75 | |
Amortization of deferred acquisition costs | 2,035 | 1,960 | |
Equity in income from other investments | (210) | (44) | |
Premiums receivable | (609) | (567) | |
Reinsurance recoverables | 157 | 316 | |
Deferred acquisition costs | (2,157) | (2,062) | |
Claims and claim adjustment expense reserves | 498 | (387) | |
Unearned premium reserves | 689 | 531 | |
Other operating activities | (460) | (287) | |
Net cash provided by operating activities | 1,585 | 1,293 | |
Cash flows from investing activities | |||
Proceeds from maturities of fixed maturities | 4,300 | 3,773 | |
Proceeds from sales of investments: | |||
Fixed maturities | 563 | 739 | |
Equity securities | 200 | 38 | |
Real estate investments | 20 | 69 | |
Other investments | 403 | 343 | |
Purchases of investments: | |||
Fixed maturities | (5,673) | (5,705) | |
Equity securities | (166) | (26) | |
Real estate investments | (26) | (20) | |
Other investments | (259) | (290) | |
Net (purchases) sales of short-term securities | (424) | 681 | |
Securities transactions in course of settlement | 170 | 461 | |
Other investing activities | (129) | (154) | |
Net cash used in investing activities | (1,021) | (91) | |
Cash flows from financing activities | |||
Treasury stock acquired - share repurchase authorization | (700) | (1,100) | |
Treasury stock acquired - net employee share-based compensation | (61) | (59) | |
Dividends paid to shareholders | (389) | (375) | |
Payment of debt | (207) | (400) | |
Issuance of debt | 689 | 491 | |
Issuance of common stock - employee share options | 118 | 129 | |
Net cash used in financing activities | (550) | (1,314) | |
Effect of exchange rate changes on cash | 7 | (3) | |
Net increase (decrease) in cash | 21 | (115) | |
Cash at beginning of year | 307 | 380 | |
Cash at end of period | 328 | 265 | |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 323 | 467 | |
Interest paid | $ 178 | $ 180 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(6) million and $(32) million for the six months ended June 30, 2017 and 2016, respectively. Of total OTTI, credit losses of $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(7) million and $(22) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2017 and 2016, and $1 million and $(10) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in other comprehensive income as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation and Accounting Policies disclosure | |
Basis of Presentation and Accounting Policies disclosure [Text Block] | 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the Company’s 2016 Annual Report) as updated by the Company’s Current Report on Form 8-K filed on June 20, 2017. The Form 8-K was filed to reclassify certain of the Company’s historical segment information to conform the presentation of such segment information to the manner in which the Company’s businesses have been managed beginning April 1, 2017 (as described in more detail below) and reflect the revised names and descriptions of certain businesses comprising these segments and other related changes. The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. On March 13, 2017, the Company announced an agreement to acquire Simply Business, a leading digital provider of insurance policies to small businesses in the United Kingdom, for total consideration of approximately $490 million, which includes the repayment of debt and other obligations at the completion of the transaction. The transaction is expected to close in the third quarter of 2017, subject to regulatory approvals and other customary closing conditions. The Company will use a portion of the net proceeds from the issuance of senior notes in May 2017 (described in more detail in note 8) and internal resources to fund this transaction. Adoption of Accounting Standards Investments — Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting In March 2016, the Financial Accounting Standards Board (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 was effective for reporting periods beginning after December 15, 2016, and was applied prospectively. The adoption of this guidance did not 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 can accelerate the repayment of principal on the debt instrument, a reporting entity does not need to assess whether the contingent event that triggers the ability to exercise the call (put) option is related to interest rates or credit risk in determining whether the option should be accounted for separately. The updated guidance was effective for reporting periods beginning after December 15, 2016. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Compensation — Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued updated guidance to improve the presentation of net periodic pension cost and net periodic post retirement cost (net benefit costs). Net benefit costs comprise several components that reflect different aspects of an employer’s financial arrangements as well as the cost of benefits provided to employees. The update requires that the employer service cost component be reported in the same lines as other employee compensation cost and that the other components (non-service costs) be presented separately from the service cost and outside of a subtotal of income from operations if one is presented. The update also allows only the service cost component to be eligible for capitalization in assets when applicable. The updated guidance is effective for reporting periods beginning after December 15, 2017. The update is to be applied retrospectively with respect to the presentation of service cost and non-service cost and prospectively with respect to applying the service cost only eligible for capitalization in assets guidance. Early adoption is permitted as of the first interim period of an annual period if an entity issues interim financial statements. The Company adopted the updated guidance effective January 1, 2017. See note 12 which has been expanded to disclose the amount of service cost and non-service cost components of net periodic benefit cost and the line items in the consolidated statement of income in which such amounts are reported. The updated guidance with respect to only service costs being eligible for capitalization in assets was not applicable. For information regarding accounting standards that the Company adopted during the years presented, see the “Adoption of Accounting Standards ” Compensation — Stock Compensation: Scope of Modification Accounting In May 2017, the FASB issued updated guidance related to a change to the terms or conditions (modification) of a share-based payment award. The updated guidance provides that an entity should account for the effects of a modification unless the fair value and vesting conditions of the modified award and the classification of the modified award (equity or liability instrument) are the same as the original award immediately before the modification. The updated guidance is effective for the quarter ending March 31, 2018. The update is to be applied prospectively to an award modified on or after the adoption date. Early adoption is permitted in any interim periods for which financial statements have not yet been made available for issuance. The Company adopted the updated guidance effective April 1, 2017. The adoption did not have an effect on the Company’s results of operations, financial position or liquidity. Accounting Standards Not Yet Adopted For information regarding accounting standards that the Company has not yet adopted, see the “Other Accounting Standards Not Yet Adopted ” Nature of Operations Effective April 1, 2017, the Company’s results are reported in the following three business segments — Business Insurance, Bond & Specialty Insurance and Personal Insurance, reflecting a change in the manner in which the Company’s businesses are managed as of that date, as well as the aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. While the segmentation of the Company’s domestic businesses is unchanged, the Company’s international businesses, which were previously managed and reported in total within the Business and International Insurance segment, are now disaggregated by product type among the three newly aligned reportable business segments. All prior periods presented have been reclassified to conform to this presentation. In connection with these changes, the Company has revised the names and descriptions of certain businesses comprising the Company’s segments and has reflected other related changes. The new reportable business segments are as follows: Business Insurance Business Insurance offers a broad array of property and casualty insurance and insurance related services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world as a corporate member of Lloyd’s. Business Insurance is comprised of Select Accounts, Middle Market, National Accounts, National Property and Other, and International. Business Insurance also includes the Special Liability Group (which manages the Company’s asbestos and environmental liabilities) and the assumed reinsurance and certain other runoff operations, which are collectively referred to as Business Insurance Other. Bond & Specialty Insurance Bond & Specialty Insurance provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers in the United States and certain specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil, utilizing various degrees of financially-based underwriting approaches. Personal Insurance Personal Insurance writes a broad range of property and casualty insurance covering individuals’ personal risks, primarily in the United States, as well as in Canada. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information disclosure | |
Segment Information disclosure [Text Block] | 2. SEGMENT INFORMATION The following tables summarize the components of the Company’s revenues, income and total assets by reportable business segments: (for the three months Business Bond & Specialty Personal Total 2017 Premiums $ 3,504 $ 575 $ 2,272 $ 6,351 Net investment income 447 56 95 598 Fee income 112 — 4 116 Other revenues 15 6 15 36 Total segment revenues (1) $ 4,078 $ 637 $ 2,386 $ 7,101 Segment income (1) $ 429 $ 163 $ 12 $ 604 2016 Premiums $ 3,439 $ 559 $ 2,069 $ 6,067 Net investment income 404 58 87 549 Fee income 115 — 4 119 Other revenues 8 5 15 28 Total segment revenues (1) $ 3,966 $ 622 $ 2,175 $ 6,763 Segment income (1) $ 401 $ 215 $ 95 $ 711 (1) (for the six months Business Bond & Specialty Personal Total 2017 Premiums $ 6,933 $ 1,130 $ 4,471 $ 12,534 Net investment income 900 117 191 1,208 Fee income 221 — 8 229 Other revenues 24 11 31 66 Total segment revenues (1) $ 8,078 $ 1,258 $ 4,701 $ 14,037 Segment income (1) $ 871 $ 308 $ 101 $ 1,280 2016 Premiums $ 6,853 $ 1,111 $ 4,084 $ 12,048 Net investment income 803 118 172 1,093 Fee income 229 — 7 236 Other revenues 38 9 31 78 Total segment revenues (1) $ 7,923 $ 1,238 $ 4,294 $ 13,455 Segment income (1) $ 848 $ 375 $ 247 $ 1,470 (1) Business Segment Reconciliations Three Months Ended Six Months Ended (in millions) 2017 2016 2017 2016 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 999 $ 987 $ 1,975 $ 1,968 Commercial automobile 521 503 1,027 994 Commercial property 443 442 878 879 General liability 498 485 989 967 Commercial multi-peril 797 786 1,571 1,568 Other 7 9 14 14 Total Domestic 3,265 3,212 6,454 6,390 International 239 227 479 463 Total Business Insurance 3,504 3,439 6,933 6,853 Bond & Specialty Insurance: Domestic: Fidelity and surety 245 239 479 469 General liability 239 235 474 469 Other 46 44 91 88 Total Domestic 530 518 1,044 1,026 International 45 41 86 85 Total Bond & Specialty Insurance 575 559 1,130 1,111 Personal Insurance: Domestic: Automobile 1,145 974 2,239 1,910 Homeowners and Other 977 944 1,932 1,882 Total Domestic 2,122 1,918 4,171 3,792 International 150 151 300 292 Total Personal Insurance 2,272 2,069 4,471 4,084 Total earned premiums 6,351 6,067 12,534 12,048 Net investment income 598 549 1,208 1,093 Fee income 116 119 229 236 Other revenues 36 28 66 78 Total segment revenues 7,101 6,763 14,037 13,455 Other revenues 3 3 4 6 Net realized investment gains 80 19 85 10 Total revenues $ 7,184 $ 6,785 $ 14,126 $ 13,471 Income reconciliation, net of tax Total segment income $ 604 $ 711 $ 1,280 $ 1,470 Interest Expense and Other (1) (61 ) (62 ) (123 ) (123 ) Core income 543 649 1,157 1,347 Net realized investment gains 52 15 55 8 Net income $ 595 $ 664 $ 1,212 $ 1,355 (1) (in millions) June 30, December 31, Asset reconciliation Business Insurance $ 77,653 $ 75,730 Bond & Specialty Insurance 8,998 8,726 Personal Insurance 15,666 15,426 Total segment assets 102,317 99,882 Other assets (1) 352 363 Total consolidated assets $ 102,669 $ 100,245 (1) |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,023 $ 10 $ 5 $ 2,028 Obligations of states, municipalities and political subdivisions: Local general obligation 14,010 410 79 14,341 Revenue 11,589 317 63 11,843 State general obligation 1,612 45 11 1,646 Pre-refunded 4,112 172 — 4,284 Total obligations of states, municipalities and political subdivisions 31,323 944 153 32,114 Debt securities issued by foreign governments 1,537 24 5 1,556 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,675 97 5 1,767 All other corporate bonds 23,835 589 77 24,347 Redeemable preferred stock 89 6 — 95 Total $ 60,482 $ 1,670 $ 245 $ 61,907 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 Pre-refunded bonds of $4.28 billion and $5.16 billion at June 30, 2017 and December 31, 2016, respectively, were bonds for which states or municipalities have established irrevocable trusts, almost exclusively comprised of U.S. Treasury securities and obligations of U.S. government and government agencies and authorities. These trusts were created to fund the payment of principal and interest due under the bonds. Proceeds from sales of fixed maturities classified as available for sale were $563 million and $739 million during the six months ended June 30, 2017 and 2016, respectively. Gross gains of $17 million and $46 million and gross losses of $4 million and $8 million were realized on those sales during the six months ended June 30, 2017 and 2016, respectively. Equity Securities The cost and fair value of investments in equity securities were as follows: Gross Unrealized Fair (at June 30, 2017, in millions) Cost Gains Losses Value Public common stock $ 443 $ 130 $ 6 $ 567 Non-redeemable preferred stock 115 23 5 133 Total $ 558 $ 153 $ 11 $ 700 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 Proceeds from sales of equity securities classified as available for sale were $200 million and $38 million during the six months ended June 30, 2017 and 2016, respectively. Gross gains of $88 million and $8 million and gross losses of $1 million and $2 million were realized on those sales during the six months ended June 30, 2017 and 2016, respectively. Unrealized Investment Losses The following tables summarize, for all investments in an unrealized loss position at June 30, 2017 and December 31, 2016, the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of notes to the consolidated financial statements in the Company’s 2016 Annual Report as updated by the Company’s Current Report on Form 8-K filed on June 20, 2017. Less than 12 months 12 months or longer Total (at June 30, 2017, 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 $ 1,342 $ 5 $ 5 $ — $ 1,347 $ 5 Obligations of states, municipalities and political subdivisions 6,088 142 179 11 6,267 153 Debt securities issued by foreign governments 432 5 — — 432 5 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 470 5 37 — 507 5 All other corporate bonds 4,980 66 279 11 5,259 77 Total fixed maturities 13,312 223 500 22 13,812 245 Equity securities Public common stock 150 3 14 3 164 6 Non-redeemable preferred stock — — 61 5 61 5 Total equity securities 150 3 75 8 225 11 Total $ 13,462 $ 226 $ 575 $ 30 $ 14,037 $ 256 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 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 Unrealized losses for all fixed maturities and equity securities reported at fair value for which fair value is less than 80% of amortized cost at June 30, 2017 totaled $1 million, Impairment Charges Impairment charges included in net realized investment gains in the consolidated statement of income were $5 million and $4 million for the three months ended June 30, 2017 and 2016, respectively, and $7 million and $22 million for the six months ended June 30, 2017 and 2016, respectively. The cumulative amount of credit losses on fixed maturities held at June 30, 2017 and 2016, that were recognized in the consolidated statement of income from other-than-temporary impairments (OTTI) and for which a portion of the OTTI was recognized in other comprehensive income (loss) in the consolidated balance sheet was $83 million and $88 million, respectively. These credit losses represent less than 1% of the fixed maturity portfolio on a pre-tax basis and less than 1% of shareholders’ equity on an after-tax basis at both dates. There were no significant changes in the credit component of OTTI during the six months ended June 30, 2017 and 2016 from that disclosed in note 3 of notes to the consolidated financial statements in the Company’s 2016 Annual Report as updated by the Company’s Current Report on Form 8-K filed on June 20, 2017. 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 June 30, 2017 and December 31, 2016, 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 for the three months and six months ended June 30, 2017 and 2016 were not significant. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
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 Company utilized a pricing service to estimate fair value measurements for approximately 98% of its fixed maturities at both June 30, 2017 and December 31, 2016. 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 $108 million and $99 million at June 30, 2017 and December 31, 2016, 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 $97 million and $85 million at June 30, 2017 and December 31, 2016, respectively. Due to the disclaimers on the quotes that indicate that the price is indicative only, the Company includes these fair value estimates in Level 3. For more information regarding the valuation of the Company’s fixed maturities, equity securities and other investments, see note 4 of notes to the consolidated financial statements in the Fair Value Hierarchy The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis. An investment transferred between levels during a period is transferred at its fair value as of the beginning of that period. (at June 30, 2017, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,028 $ 2,028 $ — $ — Obligations of states, municipalities and political subdivisions 32,114 — 32,109 5 Debt securities issued by foreign governments 1,556 — 1,556 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,767 — 1,735 32 All other corporate bonds 24,347 2 24,177 168 Redeemable preferred stock 95 3 92 — Total fixed maturities 61,907 2,033 59,669 205 Equity securities Public common stock 567 567 — — Non-redeemable preferred stock 133 61 72 — Total equity securities 700 628 72 — Other investments 54 18 — 36 Total $ 62,661 $ 2,679 $ 59,741 $ 241 (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 During the six months ended June 30, 2017 and the year ended December 31, 2016, the Company’s transfers between Level 1 and Level 2 were not significant. There was no significant activity in Level 3 of the hierarchy during the six months ended June 30, 2017 or the year ended December 31, 2016. 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 June 30, 2017, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 5,292 $ 5,292 $ 1,134 $ 4,124 $ 34 Financial liabilities: Debt $ 6,920 $ 8,023 $ — $ 8,023 $ — (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 $ — The Company utilized a pricing service to estimate fair value for approximately 95% and 98% of short-term securities at June 30, 2017 and December 31, 2016, respectively. For a description of the process and inputs used by the pricing service to estimate fair value, see the “Fixed Maturities” section in note 4 of notes to the consolidated financial statements in the Company’s 2016 Annual Report as updated by the Company’s Current Report on Form 8-K filed on June 20, 2017. The Company utilized a pricing service to estimate fair value for 100% of its debt at June 30, 2017 and December 31, 2016. The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the six months ended June 30, 2017 or year ended December 31, 2016. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Other Intangible Assets disclosure | |
Goodwill and Other Intangible Assets disclosure [Text Block] | 5. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Company’s goodwill by segment. Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates. (in millions) June 30, December 31, Business Insurance $ 2,229 $ 2,227 Bond & Specialty Insurance 550 549 Personal Insurance 784 778 Other 26 26 Total $ 3,589 $ 3,580 Other Intangible Assets The following tables present a summary of the Company’s other intangible assets by major asset class: (at June 30, 2017, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 163 $ 47 Not subject to amortization 217 — 217 Total $ 427 $ 163 $ 264 (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 (1) Amortization expense of intangible assets was $2 million for each of the three months ended June 30, 2017 and 2016, and $5 million for each of the six months ended June 30, 2017 and 2016. Intangible asset amortization expense is estimated to be $4 million for the remainder of 2017, $8 million in 2018, $7 million in 2019, $5 million in 2020 and $5 million in 2021. |
Insurance Claim Reserves
Insurance Claim Reserves | 6 Months Ended |
Jun. 30, 2017 | |
Insurance Claim Reserves disclosure | |
Insurance Claim Reserves disclosure [Text Block] | 6. INSURANCE CLAIM RESERVES Claims and claim adjustment expense reserves were as follows: (in millions) June 30, December 31, Property-casualty $ 48,556 $ 47,929 Accident and health 18 20 Total $ 48,574 $ 47,949 The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses for the six months ended June 30, 2017 and 2016: (for the six months ended June 30, in millions) 2017 2016 Claims and claim adjustment expense reserves at beginning of year $ 47,929 $ 48,272 Less reinsurance recoverables on unpaid losses 7,981 8,449 Net reserves at beginning of year 39,948 39,823 Estimated claims and claim adjustment expenses for claims arising in the current year 8,493 7,859 Estimated increase (decrease) in claims and claim adjustment expenses for claims arising in prior years (214 ) (418 ) Total increases 8,279 7,441 Claims and claim adjustment expense payments for claims arising in: Current year 2,699 2,454 Prior years 4,966 5,004 Total payments 7,665 7,458 Unrealized foreign exchange loss 117 36 Net reserves at end of period 40,679 39,842 Plus reinsurance recoverables on unpaid losses 7,877 8,089 Claims and claim adjustment expense reserves at end of period $ 48,556 $ 47,931 Gross claims and claim adjustment expense reserves at June 30, 2017 increased by $627 million from December 31, 2016, Reinsurance recoverables on unpaid losses at June 30, 2017 decreased by $104 million from December 31, 2016, primarily reflecting the impact of cash collections in the first six months of 2017, including the settlement of certain disputes as discussed in more detail in note 13. Prior Year Reserve Development The following disclosures regarding reserve development are on a “net of reinsurance” basis. For the six months ended June 30, 2017 and 2016, estimated claims and claim adjustment expenses incurred included $214 million and $418 million, respectively, of net favorable development for claims arising in prior years, including $284 million and $468 million, respectively, of net favorable prior year reserve development impacting the Company’s results of operations and $25 million of accretion of discount in each period. Business Insurance. Net favorable prior year reserve development in the first six months of 2017 totaled $186 million, primarily driven by better than expected loss experience in the segment’s domestic operations in (i) the workers’ compensation product line for multiple accident years, (ii) the general liability product line (excluding the increase to environmental reserves) for both primary and excess coverages for multiple accident years and (iii) the commercial multi-peril product line for liability coverages for multiple accident years, partially offset by (iv) net unfavorable prior year reserve development in the segment’s international operations in Europe due to the U.K. Ministry of Justice’s “Ogden” discount rate adjustment applied to lump sum bodily injury payouts. Net favorable development in the first six months of 2016 totaled $199 million, primarily driven by better than expected loss experience in the segment’s domestic operations in (i) the workers’ compensation product line for accident years 2006 and prior as well as accident year 2015, (ii) the general liability product line (excluding the increase to environmental reserves), related to both primary and excess coverages for accident years 2011, 2013 and 2015 and (iii) the commercial automobile product line for accident years 2010 and prior, as well as in the segment’s international operations in Bond & Specialty Insurance. Personal Insurance. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure | |
Other Comprehensive Income and Accumulated Other Comprehensive Income disclosure [Text Block] | 7. 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 six months ended June 30, 2017. Changes in Net Unrealized Gains on Net Benefit Plan (in millions, net of taxes) Having No Credit Having Credit Losses Assets and Net Unrealized Total Accumulated Balance, December 31, 2016 $ 528 $ 202 $ (703 ) $ (782 ) $ (755 ) Other comprehensive income (OCI) before reclassifications 365 1 — 83 449 Amounts reclassified from AOCI (61 ) — 23 — (38 ) Net OCI, current period 304 1 23 83 411 Balance, June 30, 2017 $ 832 $ 203 $ (680 ) $ (699 ) $ (344 ) The following table presents the pre-tax components of the Company’s other comprehensive income and the related income tax expense. Three Months Ended Six Months Ended (in millions) 2017 2016 2017 2016 Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income $ 327 $ 879 $ 471 $ 1,593 Income tax expense 116 305 167 552 Net of taxes 211 574 304 1,041 Having credit losses recognized in the consolidated statement of income 2 12 2 17 Income tax expense 1 4 1 6 Net of taxes 1 8 1 11 Net changes in benefit plan assets and obligations 17 18 34 34 Income tax expense 6 6 11 11 Net of taxes 11 12 23 23 Net changes in unrealized foreign currency translation 48 (35 ) 89 68 Income tax expense — 8 6 21 Net of taxes 48 (43 ) 83 47 Total other comprehensive income 394 874 596 1,712 Total income tax expense 123 323 185 590 Total other comprehensive income, net of taxes $ 271 $ 551 $ 411 $ 1,122 The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income. Three Months Ended Six Months Ended (in millions) 2017 2016 2017 2016 Reclassification adjustments related to unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (84 ) $ (24 ) $ (94 ) $ (35 ) Income tax expense (2) (30 ) (8 ) (33 ) (12 ) Net of taxes (54 ) (16 ) (61 ) (23 ) Having credit losses recognized in the consolidated statement of income (1) — 1 — 12 Income tax benefit (2) — — — 4 Net of taxes — 1 — 8 Reclassification adjustment related to benefit plan assets and obligations: Claims and claim adjustment expenses (3) 7 6 14 12 General and administrative expenses (3) 11 9 21 19 Total 18 15 35 31 Income tax benefit (2) 7 6 12 11 Net of taxes 11 9 23 20 Reclassification adjustment related to foreign currency translation (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Total reclassifications (66 ) (8 ) (59 ) 8 Total income tax (expense) benefit (23 ) (2 ) (21 ) 3 Total reclassifications, net of taxes $ (43 ) $ (6 ) $ (38 ) $ 5 (1) (2) (3) |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt disclosure | |
Debt disclosure [Text Block] | 8. DEBT Debt Issuance Debt Redemption. Commercial Paper. |
Common Share Repurchases
Common Share Repurchases | 6 Months Ended |
Jun. 30, 2017 | |
Common Share Repurchases disclosure | |
Common Share Repurchases disclosure [Text Block] | 9. COMMON SHARE REPURCHASES During the three months and six months ended June 30, 2017, the Company repurchased 3.8 million and 5.7 million shares, respectively, under its share repurchase authorization, for a total cost of $475 million and $700 million, respectively. The average cost per share repurchased was $123.04 and $122.33, respectively. In addition, On April 20, 2017, the Company’s Board of Directors approved a share repurchase authorization that added an additional $5.0 billion of repurchase capacity. At June 30, 2017, the Company had $5.23 billion of capacity remaining under its share repurchase authorization. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings per Share disclosure | |
Earnings per Share disclosure [Text Block] | 10. EARNINGS PER SHARE The following is a reconciliation of the net income and share data used in the basic and diluted earnings per share computations for the periods presented: Three Months Ended Six Months Ended (in millions, except per share amounts) 2017 2016 2017 2016 Basic and Diluted Net income, as reported $ 595 $ 664 $ 1,212 $ 1,355 Participating share-based awards — allocated income (5 ) (5 ) (9 ) (10 ) Net income available to common shareholders — basic and diluted $ 590 $ 659 $ 1,203 $ 1,345 Common Shares Basic Weighted average shares outstanding 277.5 290.1 278.6 292.1 Diluted Weighted average shares outstanding 277.5 290.1 278.6 292.1 Weighted average effects of dilutive securities — stock options and performance shares 2.5 3.5 2.6 3.5 Total 280.0 293.6 281.2 295.6 Net Income per Common Share Basic $ 2.13 $ 2.27 $ 4.32 $ 4.60 Diluted $ 2.11 $ 2.24 $ 4.28 $ 4.55 |
Share-Based Incentive Compensat
Share-Based Incentive Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Share-Based Incentive Compensation disclosure | |
Share-Based Incentive Compensation disclosure [Text Block] | 11. SHARE-BASED INCENTIVE COMPENSATION The following information relates to fully vested stock option awards at June 30, 2017: Stock Options Number Weighted Weighted Aggregate Vested at end of period (1) 5,999,122 $ 87.63 6.4 years $ 233 Exercisable at end of period 3,276,192 $ 69.02 4.6 years $ 188 (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. The total compensation cost for all share-based incentive compensation awards recognized in earnings was $31 million and $32 million for the three months ended June 30, 2017 and 2016, respectively, and $73 million and $82 million for the six months ended June 30, 2017 and 2016, respectively. The related tax benefits recognized in the consolidated statement of income were $10 million and $11 million for the three months ended June 30, 2017 and 2016, respectively, and $24 million and $28 million for the six months ended June 30, 2017 and 2016, respectively. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at June 30, 2017 was $186 million, which is expected to be recognized over a weighted-average period of 2.0 years. |
Pension Plans, Retirement Benef
Pension Plans, Retirement Benefits and Savings Plans | 6 Months Ended |
Jun. 30, 2017 | |
Pension Plans, Retirement Benefits and Savings Plans disclosure | |
Pension Plans, Retirement Benefits and Savings Plans disclosure [Text Block] | 12. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended June 30, 2017 and 2016. Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2017 2016 2017 2016 Net Periodic Benefit Cost: Service cost $ 30 $ 30 $ — $ — Non-service cost: Interest cost on benefit obligation 30 31 1 2 Expected return on plan assets (60 ) (58 ) — — Settlement — 1 — — Amortization of unrecognized: Prior service benefit — — (1 ) (1 ) Net actuarial loss 19 16 — — Total non-service cost (11 ) (10 ) — 1 Net periodic benefit cost $ 19 $ 20 $ — $ 1 The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the three months ended June 30, 2017 and 2016. Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2017 2016 2017 2016 Service Cost: Claims and claim adjustment expenses $ 12 $ 12 $ — $ — General and administrative expenses 18 18 — — Total service cost 30 30 — — Non-Service Cost: Claims and claim adjustment expenses (5 ) (5 ) — 1 General and administrative expenses (6 ) (5 ) — — Total non-service cost (11 ) (10 ) — 1 Net periodic benefit cost $ 19 $ 20 $ — $ 1 The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the six months ended June 30, 2017 and 2016. Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2017 2016 2017 2016 Net Periodic Benefit Cost: Service cost $ 60 $ 59 $ — $ — Non-service cost: Interest cost on benefit obligation 61 61 3 4 Expected return on plan assets (120 ) (115 ) — — Settlement — 1 — — Amortization of unrecognized: Prior service benefit — — (2 ) (2 ) Net actuarial loss 37 33 — — Total non-service cost (22 ) (20 ) 1 2 Net periodic benefit cost $ 38 $ 39 $ 1 $ 2 The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the six months ended June 30, 2017 and 2016. Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2017 2016 2017 2016 Service Cost: Claims and claim adjustment expenses $ 24 $ 24 $ — $ — General and administrative expenses 36 35 — — Total service cost 60 59 — — Non-Service Cost: Claims and claim adjustment expenses (9 ) (9 ) — 1 General and administrative expenses (13 ) (11 ) 1 1 Total non-service cost (22 ) (20 ) 1 2 Net periodic benefit cost $ 38 $ 39 $ 1 $ 2 |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies, Commitments and Guarantees disclosure | |
Contingencies, Commitments and Guarantees disclosure [Text Block] | 13. 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. 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 was included in “other revenues” in the consolidated statement of income for the year ended December 31, 2016. In connection with that settlement, 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. At March 31, 2017, the claim related to the remaining defendants totaled $71 million, comprising the $31 million of reinsurance recoverable plus interest amounting to $40 million as of that date. The interest was treated for accounting purposes as a gain contingency in accordance with FASB Topic 450, Contingencies On May 1, 2017, the Company agreed to a settlement of this dispute with the two remaining defendants, along with the settlement of several other disputes with these same parties. As a result of the settlement of all of these matters, the Company recorded an immaterial gain in “other revenues” in its consolidated statement of income for the three months ended June 30, 2017, and the reinsurance recoverable of $31 million in the Company’s balance sheet was fully satisfied. Other Commitments and Guarantees Commitments Investment Commitments Guarantees The maximum amount of the Company’s contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $358 million at June 30, 2017, of which $2 million was recognized on the balance sheet at that date. The maximum amount of the Company’s obligation for guarantees of certain investments and third-party loans related to certain investments that are quantifiable was $45 million at June 30, 2017, approximately $23 million of which is indemnified by a third party. The maximum amount of the Company’s obligation related to the guarantee of certain insurance policy obligations of a former insurance subsidiary was $480 million at June 30, 2017, all of which is indemnified by a third party. For more information regarding Company guarantees, see note 16 of notes to the consolidated financial statements in the Company’s 2016 Annual Report as updated by the Company’s Form 8-K filed on June 20, 2017. |
Consolidating Financial Stateme
Consolidating Financial Statements (Unaudited) | 6 Months Ended |
Jun. 30, 2017 | |
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] | 14. 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 June 30, 2017. 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 three months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 4,345 $ 2,006 $ — $ — $ 6,351 Net investment income 401 191 6 — 598 Fee income 116 — — — 116 Net realized investment gains (losses) (1) (4 ) 25 59 — 80 Other revenues 30 12 — (3 ) 39 Total revenues 4,888 2,234 65 (3 ) 7,184 Claims and expenses Claims and claim adjustment expenses 2,851 1,374 — — 4,225 Amortization of deferred acquisition costs 693 339 — — 1,032 General and administrative expenses 737 305 6 (3 ) 1,045 Interest expense 12 — 80 — 92 Total claims and expenses 4,293 2,018 86 (3 ) 6,394 Income (loss) before income taxes 595 216 (21 ) — 790 Income tax expense (benefit) 157 54 (16 ) — 195 Net income of subsidiaries — — 600 (600 ) — Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (2 ) $ (3 ) $ — $ — $ (5 ) OTTI losses recognized in net realized investment gains (losses) $ (2 ) $ (3 ) $ — $ — $ (5 ) OTTI losses recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 4,161 $ 1,906 $ — $ — $ 6,067 Net investment income 377 168 4 — 549 Fee income 119 — — — 119 Net realized investment gains (losses) (1) (1 ) 20 — — 19 Other revenues 33 1 — (3 ) 31 Total revenues 4,689 2,095 4 (3 ) 6,785 Claims and expenses Claims and claim adjustment expenses 2,575 1,187 — — 3,762 Amortization of deferred acquisition costs 666 323 — — 989 General and administrative expenses 743 313 1 (3 ) 1,054 Interest expense 12 — 81 — 93 Total claims and expenses 3,996 1,823 82 (3 ) 5,898 Income (loss) before income taxes 693 272 (78 ) — 887 Income tax expense (benefit) 191 69 (37 ) — 223 Net income of subsidiaries — — 705 (705 ) — Net income $ 502 $ 203 $ 664 $ (705 ) $ 664 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (3 ) $ (1 ) $ — $ — $ (4 ) OTTI losses recognized in net realized investment gains (losses) $ (3 ) $ (1 ) $ — $ — $ (4 ) OTTI gains (losses) recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 8,573 $ 3,961 $ — $ — $ 12,534 Net investment income 813 385 10 — 1,208 Fee income 229 — — — 229 Net realized investment gains (losses) (1) (8 ) 34 59 — 85 Other revenues 54 21 — (5 ) 70 Total revenues 9,661 4,401 69 (5 ) 14,126 Claims and expenses Claims and claim adjustment expenses 5,603 2,716 — — 8,319 Amortization of deferred acquisition costs 1,361 674 — — 2,035 General and administrative expenses 1,440 597 9 (5 ) 2,041 Interest expense 24 — 157 — 181 Total claims and expenses 8,428 3,987 166 (5 ) 12,576 Income (loss) before income taxes 1,233 414 (97 ) — 1,550 Income tax expense (benefit) 287 108 (57 ) — 338 Net income of subsidiaries — — 1,252 (1,252 ) — Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (2 ) $ (4 ) $ — $ — $ (6 ) OTTI losses recognized in net realized investment gains (losses) $ (3 ) $ (4 ) $ — $ — $ (7 ) OTTI gains recognized in OCI $ 1 $ — $ — $ — $ 1 CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 8,246 $ 3,802 $ — $ — $ 12,048 Net investment income 753 334 6 — 1,093 Fee income 236 — — — 236 Net realized investment gains (losses) (1) (17 ) 27 — — 10 Other revenues 81 17 — (14 ) 84 Total revenues 9,299 4,180 6 (14 ) 13,471 Claims and expenses Claims and claim adjustment expenses 5,095 2,379 — — 7,474 Amortization of deferred acquisition costs 1,316 644 — — 1,960 General and administrative expenses 1,447 611 5 (14 ) 2,049 Interest expense 24 — 160 — 184 Total claims and expenses 7,882 3,634 165 (14 ) 11,667 Income (loss) before income taxes 1,417 546 (159 ) — 1,804 Income tax expense (benefit) 390 138 (79 ) — 449 Net income of subsidiaries — — 1,435 (1,435 ) — Net income $ 1,027 $ 408 $ 1,355 $ (1,435 ) $ 1,355 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (17 ) $ (15 ) $ — $ — $ (32 ) OTTI losses recognized in net realized investment gains (losses) $ (12 ) $ (10 ) $ — $ — $ (22 ) OTTI losses recognized in OCI $ (5 ) $ (5 ) $ — $ — $ (10 ) CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the three months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 296 85 (54 ) — 327 Having credit losses recognized in the consolidated statement of income 1 1 — — 2 Net changes in benefit plan assets and obligations — (1 ) 18 — 17 Net changes in unrealized foreign currency translation 14 34 — — 48 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 311 119 (36 ) — 394 Income tax expense (benefit) 102 33 (12 ) — 123 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 209 86 (24 ) — 271 Other comprehensive income of subsidiaries — — 295 (295 ) — Other comprehensive income 209 86 271 (295 ) 271 Comprehensive income $ 647 $ 248 $ 866 $ (895 ) $ 866 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the three months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 502 $ 203 $ 664 $ (705 ) $ 664 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 570 306 3 — 879 Having credit losses recognized in the consolidated statement of income 6 6 — — 12 Net changes in benefit plan assets and obligations 18 19 (19 ) — 18 Net changes in unrealized foreign currency translation 25 (60 ) — — (35 ) Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 619 271 (16 ) — 874 Income tax expense (benefit) 216 113 (6 ) — 323 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 403 158 (10 ) — 551 Other comprehensive income of subsidiaries — — 561 (561 ) — Other comprehensive income 403 158 551 (561 ) 551 Comprehensive income $ 905 $ 361 $ 1,215 $ (1,266 ) $ 1,215 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 389 129 (47 ) — 471 Having credit losses recognized in the consolidated statement of income 2 — — — 2 Net changes in benefit plan assets and obligations — (1 ) 35 — 34 Net changes in unrealized foreign currency translation 39 50 — — 89 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 430 178 (12 ) — 596 Income tax expense (benefit) 139 49 (3 ) — 185 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 291 129 (9 ) — 411 Other comprehensive income of subsidiaries — — 420 (420 ) — Other comprehensive income 291 129 411 (420 ) 411 Comprehensive income $ 1,237 $ 435 $ 1,623 $ (1,672 ) $ 1,623 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the six months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 1,027 $ 408 $ 1,355 $ (1,435 ) $ 1,355 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 1,055 534 4 — 1,593 Having credit losses recognized in the consolidated statement of income 8 9 — — 17 Net changes in benefit plan assets and obligations 18 20 (4 ) — 34 Net changes in unrealized foreign currency translation 119 (51 ) — — 68 Other comprehensive income before income taxes and other comprehensive income of subsidiaries 1,200 512 — — 1,712 Income tax expense 397 192 1 — 590 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 803 320 (1 ) — 1,122 Other comprehensive income of subsidiaries — — 1,123 (1,123 ) — Other comprehensive income 803 320 1,122 (1,123 ) 1,122 Comprehensive income $ 1,830 $ 728 $ 2,477 $ (2,558 ) $ 2,477 CONSOLIDATING BALANCE SHEET (Unaudited) At June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $60,482) $ 43,029 $ 18,829 $ 49 $ — $ 61,907 Equity securities, available for sale, at fair value (cost $558) 176 357 167 — 700 Real estate investments 55 865 — — 920 Short-term securities 2,065 715 2,512 — 5,292 Other investments 2,612 899 1 — 3,512 Total investments 47,937 21,665 2,729 — 72,331 Cash 134 192 2 — 328 Investment income accrued 422 176 4 — 602 Premiums receivable 4,952 2,393 — — 7,345 Reinsurance recoverables 5,594 2,556 — — 8,150 Ceded unearned premiums 587 78 — — 665 Deferred acquisition costs 1,847 204 — — 2,051 Deferred taxes (43 ) 188 56 — 201 Contractholder receivables 3,759 941 — — 4,700 Goodwill 2,586 1,003 — — 3,589 Other intangible assets 202 62 — — 264 Investment in subsidiaries — — 27,451 (27,451 ) — Other assets 2,122 283 38 — 2,443 Total assets $ 70,099 $ 29,741 $ 30,280 $ (27,451 ) $ 102,669 Liabilities Claims and claim adjustment expense reserves $ 32,564 $ 16,010 $ — $ — $ 48,574 Unearned premium reserves 9,043 4,009 — — 13,052 Contractholder payables 3,759 941 — — 4,700 Payables for reinsurance premiums 214 150 — — 364 Debt 693 — 6,227 — 6,920 Other liabilities 3,956 1,040 205 — 5,201 Total liabilities 50,229 22,150 6,432 — 78,811 Shareholders’ equity Common stock (1,750.0 shares authorized; 275.9 shares issued and outstanding) — 390 22,781 (390 ) 22,781 Additional paid-in capital 11,634 6,499 — (18,133 ) — Retained earnings 7,917 706 33,006 (8,613 ) 33,016 Accumulated other comprehensive income (loss) 319 (4 ) (344 ) (315 ) (344 ) Treasury stock, at cost (495.7 shares) — — (31,595 ) — (31,595 ) Total shareholders’ equity 19,870 7,591 23,848 (27,451 ) 23,858 Total liabilities and shareholders’ equity $ 70,099 $ 29,741 $ 30,280 $ (27,451 ) $ 102,669 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 STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Net adjustments to reconcile net income to net cash provided by operating activities 224 31 223 (105 ) 373 Net cash provided by operating activities 1,170 337 1,435 (1,357 ) 1,585 Cash flows from investing activities Proceeds from maturities of fixed maturities 3,211 1,087 2 — 4,300 Proceeds from sales of investments: Fixed maturities 285 278 — — 563 Equity securities 4 75 121 — 200 Real estate investments — 20 — — 20 Other investments 294 109 — — 403 Purchases of investments: Fixed maturities (4,160 ) (1,511 ) (2 ) — (5,673 ) Equity securities (3 ) (41 ) (122 ) — (166 ) Real estate investments — (26 ) — — (26 ) Other investments (202 ) (57 ) — — (259 ) Net sales (purchases) of short-term securities 383 78 (885 ) — (424 ) Securities transactions in course of settlement 105 64 1 — 170 Other (135 ) 6 — — (129 ) Net cash provided by (used in) investing activities (218 ) 82 (885 ) — (1,021 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (700 ) — (700 ) Treasury stock acquired — net employee share-based compensation — — (61 ) — (61 ) Dividends paid to shareholders — — (389 ) — (389 ) Payment of debt — — (207 ) — (207 ) Issuance of debt — — 689 — 689 Issuance of common stock — employee share options — — 118 — 118 Dividends paid to parent company (961 ) (396 ) — 1,357 — Net cash used in financing activities (961 ) (396 ) (550 ) 1,357 (550 ) Effect of exchange rate changes on cash 2 5 — — 7 Net increase (decrease) in cash (7 ) 28 — — 21 Cash at beginning of year 141 164 2 — 307 Cash at end of period $ 134 $ 192 $ 2 $ — $ 328 Supplemental disclosure of cash flow information Income taxes paid (received) $ 336 $ 119 $ (132 ) $ — $ 323 Interest paid $ 24 $ — $ 154 $ — $ 178 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 1,027 $ 408 $ 1,355 $ (1,435 ) $ 1,355 Net adjustments to reconcile net income to net cash provided by (used in) operating activities (17 ) (222 ) 116 61 (62 ) Net cash provided by operating activities 1,010 186 1,471 (1,374 ) 1,293 Cash flows from investing activities Proceeds from maturities of fixed maturities 2,728 1,040 5 — 3,773 Proceeds from sales of investments: Fixed maturities 385 352 2 — 739 Equity securities 10 28 — — 38 Real estate investments — 69 — — 69 Other investments 233 110 — — 343 Purchases of investments: Fixed maturities (3,588 ) (2,108 ) (9 ) — (5,705 ) Equity securities (5 ) (19 ) (2 ) — (26 ) Real estate investments — (20 ) — — (20 ) Other investments (221 ) (69 ) — — (290 ) Net (purchases) sales of short-term securities 193 639 (151 ) — 681 Securities transactions in course of settlement 325 137 (1 ) — 461 Other (151 ) (3 ) — — (154 ) Net cash provided by (used in) investing activities (91 ) 156 (156 ) — (91 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (1,100 ) — (1,100 ) Treasury stock acquired — net employee share-based compensation — — (59 ) — (59 ) Dividends paid to shareholders — — (375 ) — (375 ) Payment of debt — — (400 ) — (400 ) Issuance of debt — — 491 — 491 Issuance of common stock — employee share options — — 129 — 129 Dividends paid to parent company (1,025 ) (349 ) — 1,374 — Net cash used in financing activities (1,025 ) (349 ) (1,314 ) 1,374 (1,314 ) Effect of exchange rate changes on cash 2 (5 ) — — (3 ) Net increase (decrease) in cash (104 ) (12 ) 1 — (115 ) Cash at beginning of year 225 153 2 — 380 Cash at end of period $ 121 $ 141 $ 3 $ — $ 265 Supplemental disclosure of cash flow information Income taxes paid (received) $ 398 $ 142 $ (73 ) $ — $ 467 Interest paid $ 24 $ — $ 156 $ — $ 180 |
Basis of Presentation and Acc23
Basis of Presentation and Accounting Policies (policies) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation and Accounting Policies disclosure | |
Accounting Policies, Basis of Presentation [Policy Text Block] | Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the Company’s 2016 Annual Report) as updated by the Company’s Current Report on Form 8-K filed on June 20, 2017. The Form 8-K was filed to reclassify certain of the Company’s historical segment information to conform the presentation of such segment information to the manner in which the Company’s businesses have been managed beginning April 1, 2017 (as described in more detail below) and reflect the revised names and descriptions of certain businesses comprising these segments and other related changes. The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. On March 13, 2017, the Company announced an agreement to acquire Simply Business, a leading digital provider of insurance policies to small businesses in the United Kingdom, for total consideration of approximately $490 million, which includes the repayment of debt and other obligations at the completion of the transaction. The transaction is expected to close in the third quarter of 2017, subject to regulatory approvals and other customary closing conditions. The Company will use a portion of the net proceeds from the issuance of senior notes in May 2017 (described in more detail in note 8) and internal resources to fund this transaction. |
Accounting Policies, Adoption of Accounting Standards [Policy Text Block] | Adoption of Accounting Standards Investments — Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting In March 2016, the Financial Accounting Standards Board (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 was effective for reporting periods beginning after December 15, 2016, and was applied prospectively. The adoption of this guidance did not 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 can accelerate the repayment of principal on the debt instrument, a reporting entity does not need to assess whether the contingent event that triggers the ability to exercise the call (put) option is related to interest rates or credit risk in determining whether the option should be accounted for separately. The updated guidance was effective for reporting periods beginning after December 15, 2016. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. Compensation — Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued updated guidance to improve the presentation of net periodic pension cost and net periodic post retirement cost (net benefit costs). Net benefit costs comprise several components that reflect different aspects of an employer’s financial arrangements as well as the cost of benefits provided to employees. The update requires that the employer service cost component be reported in the same lines as other employee compensation cost and that the other components (non-service costs) be presented separately from the service cost and outside of a subtotal of income from operations if one is presented. The update also allows only the service cost component to be eligible for capitalization in assets when applicable. The updated guidance is effective for reporting periods beginning after December 15, 2017. The update is to be applied retrospectively with respect to the presentation of service cost and non-service cost and prospectively with respect to applying the service cost only eligible for capitalization in assets guidance. Early adoption is permitted as of the first interim period of an annual period if an entity issues interim financial statements. The Company adopted the updated guidance effective January 1, 2017. See note 12 which has been expanded to disclose the amount of service cost and non-service cost components of net periodic benefit cost and the line items in the consolidated statement of income in which such amounts are reported. The updated guidance with respect to only service costs being eligible for capitalization in assets was not applicable. For information regarding accounting standards that the Company adopted during the years presented, see the “Adoption of Accounting Standards ” Compensation — Stock Compensation: Scope of Modification Accounting In May 2017, the FASB issued updated guidance related to a change to the terms or conditions (modification) of a share-based payment award. The updated guidance provides that an entity should account for the effects of a modification unless the fair value and vesting conditions of the modified award and the classification of the modified award (equity or liability instrument) are the same as the original award immediately before the modification. The updated guidance is effective for the quarter ending March 31, 2018. The update is to be applied prospectively to an award modified on or after the adoption date. Early adoption is permitted in any interim periods for which financial statements have not yet been made available for issuance. The Company adopted the updated guidance effective April 1, 2017. The adoption did not have an effect on the Company’s results of operations, financial position or liquidity. |
Segment Information (tables)
Segment Information (tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information disclosure | |
Company's revenues and income by segment [Table Text Block] | (for the three months Business Bond & Specialty Personal Total 2017 Premiums $ 3,504 $ 575 $ 2,272 $ 6,351 Net investment income 447 56 95 598 Fee income 112 — 4 116 Other revenues 15 6 15 36 Total segment revenues (1) $ 4,078 $ 637 $ 2,386 $ 7,101 Segment income (1) $ 429 $ 163 $ 12 $ 604 2016 Premiums $ 3,439 $ 559 $ 2,069 $ 6,067 Net investment income 404 58 87 549 Fee income 115 — 4 119 Other revenues 8 5 15 28 Total segment revenues (1) $ 3,966 $ 622 $ 2,175 $ 6,763 Segment income (1) $ 401 $ 215 $ 95 $ 711 (1) (for the six months Business Bond & Specialty Personal Total 2017 Premiums $ 6,933 $ 1,130 $ 4,471 $ 12,534 Net investment income 900 117 191 1,208 Fee income 221 — 8 229 Other revenues 24 11 31 66 Total segment revenues (1) $ 8,078 $ 1,258 $ 4,701 $ 14,037 Segment income (1) $ 871 $ 308 $ 101 $ 1,280 2016 Premiums $ 6,853 $ 1,111 $ 4,084 $ 12,048 Net investment income 803 118 172 1,093 Fee income 229 — 7 236 Other revenues 38 9 31 78 Total segment revenues (1) $ 7,923 $ 1,238 $ 4,294 $ 13,455 Segment income (1) $ 848 $ 375 $ 247 $ 1,470 (1) |
Business segment reconciliations of revenue and income, net of tax [Table Text Block] | Three Months Ended Six Months Ended (in millions) 2017 2016 2017 2016 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers’ compensation $ 999 $ 987 $ 1,975 $ 1,968 Commercial automobile 521 503 1,027 994 Commercial property 443 442 878 879 General liability 498 485 989 967 Commercial multi-peril 797 786 1,571 1,568 Other 7 9 14 14 Total Domestic 3,265 3,212 6,454 6,390 International 239 227 479 463 Total Business Insurance 3,504 3,439 6,933 6,853 Bond & Specialty Insurance: Domestic: Fidelity and surety 245 239 479 469 General liability 239 235 474 469 Other 46 44 91 88 Total Domestic 530 518 1,044 1,026 International 45 41 86 85 Total Bond & Specialty Insurance 575 559 1,130 1,111 Personal Insurance: Domestic: Automobile 1,145 974 2,239 1,910 Homeowners and Other 977 944 1,932 1,882 Total Domestic 2,122 1,918 4,171 3,792 International 150 151 300 292 Total Personal Insurance 2,272 2,069 4,471 4,084 Total earned premiums 6,351 6,067 12,534 12,048 Net investment income 598 549 1,208 1,093 Fee income 116 119 229 236 Other revenues 36 28 66 78 Total segment revenues 7,101 6,763 14,037 13,455 Other revenues 3 3 4 6 Net realized investment gains 80 19 85 10 Total revenues $ 7,184 $ 6,785 $ 14,126 $ 13,471 Income reconciliation, net of tax Total segment income $ 604 $ 711 $ 1,280 $ 1,470 Interest Expense and Other (1) (61 ) (62 ) (123 ) (123 ) Core income 543 649 1,157 1,347 Net realized investment gains 52 15 55 8 Net income $ 595 $ 664 $ 1,212 $ 1,355 (1) |
Asset reconciliation [Table Text Block] | (in millions) June 30, December 31, Asset reconciliation Business Insurance $ 77,653 $ 75,730 Bond & Specialty Insurance 8,998 8,726 Personal Insurance 15,666 15,426 Total segment assets 102,317 99,882 Other assets (1) 352 363 Total consolidated assets $ 102,669 $ 100,245 (1) |
Investments (tables)
Investments (tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments disclosure | |
Amortized cost and fair value of investments in fixed maturities [Table Text Block] | Amortized Gross Unrealized Fair (at June 30, 2017, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,023 $ 10 $ 5 $ 2,028 Obligations of states, municipalities and political subdivisions: Local general obligation 14,010 410 79 14,341 Revenue 11,589 317 63 11,843 State general obligation 1,612 45 11 1,646 Pre-refunded 4,112 172 — 4,284 Total obligations of states, municipalities and political subdivisions 31,323 944 153 32,114 Debt securities issued by foreign governments 1,537 24 5 1,556 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,675 97 5 1,767 All other corporate bonds 23,835 589 77 24,347 Redeemable preferred stock 89 6 — 95 Total $ 60,482 $ 1,670 $ 245 $ 61,907 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 |
Cost and fair value of investments in equity securities [Table Text Block] | Gross Unrealized Fair (at June 30, 2017, in millions) Cost Gains Losses Value Public common stock $ 443 $ 130 $ 6 $ 567 Non-redeemable preferred stock 115 23 5 133 Total $ 558 $ 153 $ 11 $ 700 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 |
Unrealized investment losses [Table Text Block] | Less than 12 months 12 months or longer Total (at June 30, 2017, 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 $ 1,342 $ 5 $ 5 $ — $ 1,347 $ 5 Obligations of states, municipalities and political subdivisions 6,088 142 179 11 6,267 153 Debt securities issued by foreign governments 432 5 — — 432 5 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 470 5 37 — 507 5 All other corporate bonds 4,980 66 279 11 5,259 77 Total fixed maturities 13,312 223 500 22 13,812 245 Equity securities Public common stock 150 3 14 3 164 6 Non-redeemable preferred stock — — 61 5 61 5 Total equity securities 150 3 75 8 225 11 Total $ 13,462 $ 226 $ 575 $ 30 $ 14,037 $ 256 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 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 |
Fair Value Measurements (tables
Fair Value Measurements (tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 on a recurring basis [Table Text Block] | (at June 30, 2017, in millions) Total Level 1 Level 2 Level 3 Invested assets: Fixed maturities U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 2,028 $ 2,028 $ — $ — Obligations of states, municipalities and political subdivisions 32,114 — 32,109 5 Debt securities issued by foreign governments 1,556 — 1,556 — Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 1,767 — 1,735 32 All other corporate bonds 24,347 2 24,177 168 Redeemable preferred stock 95 3 92 — Total fixed maturities 61,907 2,033 59,669 205 Equity securities Public common stock 567 567 — — Non-redeemable preferred stock 133 61 72 — Total equity securities 700 628 72 — Other investments 54 18 — 36 Total $ 62,661 $ 2,679 $ 59,741 $ 241 (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 |
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 June 30, 2017, in millions) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Short-term securities $ 5,292 $ 5,292 $ 1,134 $ 4,124 $ 34 Financial liabilities: Debt $ 6,920 $ 8,023 $ — $ 8,023 $ — (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 $ — |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Other Intangible Assets disclosure | |
Goodwill by segment [Table Text Block] | (in millions) June 30, December 31, Business Insurance $ 2,229 $ 2,227 Bond & Specialty Insurance 550 549 Personal Insurance 784 778 Other 26 26 Total $ 3,589 $ 3,580 |
Other intangible assets subject to amortization [Table Text Block] | (at June 30, 2017, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 163 $ 47 Not subject to amortization 217 — 217 Total $ 427 $ 163 $ 264 (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 (1) |
Other intangible assets not subject to amortization [Table Text Block] | (at June 30, 2017, in millions) Gross Accumulated Net Subject to amortization (1) $ 210 $ 163 $ 47 Not subject to amortization 217 — 217 Total $ 427 $ 163 $ 264 (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 (1) |
Insurance Claim Reserves (table
Insurance Claim Reserves (tables) | 6 Months Ended |
Jun. 30, 2017 | |
Insurance Claim Reserves disclosure | |
Claims and claim adjustment expense reserves [Table Text Block] | (in millions) June 30, December 31, Property-casualty $ 48,556 $ 47,929 Accident and health 18 20 Total $ 48,574 $ 47,949 |
Reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses [Table Text Block] | (for the six months ended June 30, in millions) 2017 2016 Claims and claim adjustment expense reserves at beginning of year $ 47,929 $ 48,272 Less reinsurance recoverables on unpaid losses 7,981 8,449 Net reserves at beginning of year 39,948 39,823 Estimated claims and claim adjustment expenses for claims arising in the current year 8,493 7,859 Estimated increase (decrease) in claims and claim adjustment expenses for claims arising in prior years (214 ) (418 ) Total increases 8,279 7,441 Claims and claim adjustment expense payments for claims arising in: Current year 2,699 2,454 Prior years 4,966 5,004 Total payments 7,665 7,458 Unrealized foreign exchange loss 117 36 Net reserves at end of period 40,679 39,842 Plus reinsurance recoverables on unpaid losses 7,877 8,089 Claims and claim adjustment expense reserves at end of period $ 48,556 $ 47,931 |
Other Comprehensive Income an29
Other Comprehensive Income and Accumulated Other Comprehensive Income (tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, net of taxes) Having No Credit Having Credit Losses Assets and Net Unrealized Total Accumulated Balance, December 31, 2016 $ 528 $ 202 $ (703 ) $ (782 ) $ (755 ) Other comprehensive income (OCI) before reclassifications 365 1 — 83 449 Amounts reclassified from AOCI (61 ) — 23 — (38 ) Net OCI, current period 304 1 23 83 411 Balance, June 30, 2017 $ 832 $ 203 $ (680 ) $ (699 ) $ (344 ) |
Pre-tax components of other comprehensive income and the related income tax expense for each component [Table Text Block] | Three Months Ended Six Months Ended (in millions) 2017 2016 2017 2016 Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income $ 327 $ 879 $ 471 $ 1,593 Income tax expense 116 305 167 552 Net of taxes 211 574 304 1,041 Having credit losses recognized in the consolidated statement of income 2 12 2 17 Income tax expense 1 4 1 6 Net of taxes 1 8 1 11 Net changes in benefit plan assets and obligations 17 18 34 34 Income tax expense 6 6 11 11 Net of taxes 11 12 23 23 Net changes in unrealized foreign currency translation 48 (35 ) 89 68 Income tax expense — 8 6 21 Net of taxes 48 (43 ) 83 47 Total other comprehensive income 394 874 596 1,712 Total income tax expense 123 323 185 590 Total other comprehensive income, net of taxes $ 271 $ 551 $ 411 $ 1,122 |
Pre-tax and related income tax (expense) benefit components of the amounts reclassified from accumulated other comprehensive income to the consolidated statement of income [Table Text Block] | Three Months Ended Six Months Ended (in millions) 2017 2016 2017 2016 Reclassification adjustments related to unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income (1) $ (84 ) $ (24 ) $ (94 ) $ (35 ) Income tax expense (2) (30 ) (8 ) (33 ) (12 ) Net of taxes (54 ) (16 ) (61 ) (23 ) Having credit losses recognized in the consolidated statement of income (1) — 1 — 12 Income tax benefit (2) — — — 4 Net of taxes — 1 — 8 Reclassification adjustment related to benefit plan assets and obligations: Claims and claim adjustment expenses (3) 7 6 14 12 General and administrative expenses (3) 11 9 21 19 Total 18 15 35 31 Income tax benefit (2) 7 6 12 11 Net of taxes 11 9 23 20 Reclassification adjustment related to foreign currency translation (1) — — — — Income tax benefit (2) — — — — Net of taxes — — — — Total reclassifications (66 ) (8 ) (59 ) 8 Total income tax (expense) benefit (23 ) (2 ) (21 ) 3 Total reclassifications, net of taxes $ (43 ) $ (6 ) $ (38 ) $ 5 (1) (2) (3) |
Earnings per Share (table)
Earnings per Share (table) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings per Share disclosure | |
Earnings per share reconciliation [Table Text Block] | Three Months Ended Six Months Ended (in millions, except per share amounts) 2017 2016 2017 2016 Basic and Diluted Net income, as reported $ 595 $ 664 $ 1,212 $ 1,355 Participating share-based awards — allocated income (5 ) (5 ) (9 ) (10 ) Net income available to common shareholders — basic and diluted $ 590 $ 659 $ 1,203 $ 1,345 Common Shares Basic Weighted average shares outstanding 277.5 290.1 278.6 292.1 Diluted Weighted average shares outstanding 277.5 290.1 278.6 292.1 Weighted average effects of dilutive securities — stock options and performance shares 2.5 3.5 2.6 3.5 Total 280.0 293.6 281.2 295.6 Net Income per Common Share Basic $ 2.13 $ 2.27 $ 4.32 $ 4.60 Diluted $ 2.11 $ 2.24 $ 4.28 $ 4.55 |
Share-Based Incentive Compens31
Share-Based Incentive Compensation (table) | 6 Months Ended |
Jun. 30, 2017 | |
Share-Based Incentive Compensation disclosure | |
Information for fully vested stock option awards [Table Text Block] | Stock Options Number Weighted Weighted Aggregate Vested at end of period (1) 5,999,122 $ 87.63 6.4 years $ 233 Exercisable at end of period 3,276,192 $ 69.02 4.6 years $ 188 (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. |
Pension Plans, Retirement Ben32
Pension Plans, Retirement Benefits and Savings Plans (tables) | 6 Months Ended |
Jun. 30, 2017 | |
Pension Plans, Retirement Benefits and Savings Plans disclosure | |
Summary of the components of net periodic benefit cost for the Company's pension and postretirement benefit plans recognized in the consolidated statement of income [Table Text Block] | Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2017 2016 2017 2016 Net Periodic Benefit Cost: Service cost $ 30 $ 30 $ — $ — Non-service cost: Interest cost on benefit obligation 30 31 1 2 Expected return on plan assets (60 ) (58 ) — — Settlement — 1 — — Amortization of unrecognized: Prior service benefit — — (1 ) (1 ) Net actuarial loss 19 16 — — Total non-service cost (11 ) (10 ) — 1 Net periodic benefit cost $ 19 $ 20 $ — $ 1 Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2017 2016 2017 2016 Net Periodic Benefit Cost: Service cost $ 60 $ 59 $ — $ — Non-service cost: Interest cost on benefit obligation 61 61 3 4 Expected return on plan assets (120 ) (115 ) — — Settlement — 1 — — Amortization of unrecognized: Prior service benefit — — (2 ) (2 ) Net actuarial loss 37 33 — — Total non-service cost (22 ) (20 ) 1 2 Net periodic benefit cost $ 38 $ 39 $ 1 $ 2 |
Consolidated statement of income line items impacted by service costs and non-service benefit costs [Table Text Block] | Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2017 2016 2017 2016 Service Cost: Claims and claim adjustment expenses $ 12 $ 12 $ — $ — General and administrative expenses 18 18 — — Total service cost 30 30 — — Non-Service Cost: Claims and claim adjustment expenses (5 ) (5 ) — 1 General and administrative expenses (6 ) (5 ) — — Total non-service cost (11 ) (10 ) — 1 Net periodic benefit cost $ 19 $ 20 $ — $ 1 Pension Plans Postretirement Benefit Plans (for the six months ended June 30, in millions) 2017 2016 2017 2016 Service Cost: Claims and claim adjustment expenses $ 24 $ 24 $ — $ — General and administrative expenses 36 35 — — Total service cost 60 59 — — Non-Service Cost: Claims and claim adjustment expenses (9 ) (9 ) — 1 General and administrative expenses (13 ) (11 ) 1 1 Total non-service cost (22 ) (20 ) 1 2 Net periodic benefit cost $ 38 $ 39 $ 1 $ 2 |
Consolidating Financial State33
Consolidating Financial Statements (Unaudited) (tables) | 6 Months Ended |
Jun. 30, 2017 | |
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries (Unaudited) disclosure | |
Consolidating Statement of Income (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 4,345 $ 2,006 $ — $ — $ 6,351 Net investment income 401 191 6 — 598 Fee income 116 — — — 116 Net realized investment gains (losses) (1) (4 ) 25 59 — 80 Other revenues 30 12 — (3 ) 39 Total revenues 4,888 2,234 65 (3 ) 7,184 Claims and expenses Claims and claim adjustment expenses 2,851 1,374 — — 4,225 Amortization of deferred acquisition costs 693 339 — — 1,032 General and administrative expenses 737 305 6 (3 ) 1,045 Interest expense 12 — 80 — 92 Total claims and expenses 4,293 2,018 86 (3 ) 6,394 Income (loss) before income taxes 595 216 (21 ) — 790 Income tax expense (benefit) 157 54 (16 ) — 195 Net income of subsidiaries — — 600 (600 ) — Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (2 ) $ (3 ) $ — $ — $ (5 ) OTTI losses recognized in net realized investment gains (losses) $ (2 ) $ (3 ) $ — $ — $ (5 ) OTTI losses recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 4,161 $ 1,906 $ — $ — $ 6,067 Net investment income 377 168 4 — 549 Fee income 119 — — — 119 Net realized investment gains (losses) (1) (1 ) 20 — — 19 Other revenues 33 1 — (3 ) 31 Total revenues 4,689 2,095 4 (3 ) 6,785 Claims and expenses Claims and claim adjustment expenses 2,575 1,187 — — 3,762 Amortization of deferred acquisition costs 666 323 — — 989 General and administrative expenses 743 313 1 (3 ) 1,054 Interest expense 12 — 81 — 93 Total claims and expenses 3,996 1,823 82 (3 ) 5,898 Income (loss) before income taxes 693 272 (78 ) — 887 Income tax expense (benefit) 191 69 (37 ) — 223 Net income of subsidiaries — — 705 (705 ) — Net income $ 502 $ 203 $ 664 $ (705 ) $ 664 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (3 ) $ (1 ) $ — $ — $ (4 ) OTTI losses recognized in net realized investment gains (losses) $ (3 ) $ (1 ) $ — $ — $ (4 ) OTTI gains (losses) recognized in OCI $ — $ — $ — $ — $ — CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 8,573 $ 3,961 $ — $ — $ 12,534 Net investment income 813 385 10 — 1,208 Fee income 229 — — — 229 Net realized investment gains (losses) (1) (8 ) 34 59 — 85 Other revenues 54 21 — (5 ) 70 Total revenues 9,661 4,401 69 (5 ) 14,126 Claims and expenses Claims and claim adjustment expenses 5,603 2,716 — — 8,319 Amortization of deferred acquisition costs 1,361 674 — — 2,035 General and administrative expenses 1,440 597 9 (5 ) 2,041 Interest expense 24 — 157 — 181 Total claims and expenses 8,428 3,987 166 (5 ) 12,576 Income (loss) before income taxes 1,233 414 (97 ) — 1,550 Income tax expense (benefit) 287 108 (57 ) — 338 Net income of subsidiaries — — 1,252 (1,252 ) — Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (2 ) $ (4 ) $ — $ — $ (6 ) OTTI losses recognized in net realized investment gains (losses) $ (3 ) $ (4 ) $ — $ — $ (7 ) OTTI gains recognized in OCI $ 1 $ — $ — $ — $ 1 CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the six months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Revenues Premiums $ 8,246 $ 3,802 $ — $ — $ 12,048 Net investment income 753 334 6 — 1,093 Fee income 236 — — — 236 Net realized investment gains (losses) (1) (17 ) 27 — — 10 Other revenues 81 17 — (14 ) 84 Total revenues 9,299 4,180 6 (14 ) 13,471 Claims and expenses Claims and claim adjustment expenses 5,095 2,379 — — 7,474 Amortization of deferred acquisition costs 1,316 644 — — 1,960 General and administrative expenses 1,447 611 5 (14 ) 2,049 Interest expense 24 — 160 — 184 Total claims and expenses 7,882 3,634 165 (14 ) 11,667 Income (loss) before income taxes 1,417 546 (159 ) — 1,804 Income tax expense (benefit) 390 138 (79 ) — 449 Net income of subsidiaries — — 1,435 (1,435 ) — Net income $ 1,027 $ 408 $ 1,355 $ (1,435 ) $ 1,355 (1) (in millions) TPC Other TRV Eliminations Consolidated Total OTTI losses $ (17 ) $ (15 ) $ — $ — $ (32 ) OTTI losses recognized in net realized investment gains (losses) $ (12 ) $ (10 ) $ — $ — $ (22 ) OTTI losses recognized in OCI $ (5 ) $ (5 ) $ — $ — $ (10 ) |
Consolidating Statement of Comprehensive Income (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the three months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 438 $ 162 $ 595 $ (600 ) $ 595 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 296 85 (54 ) — 327 Having credit losses recognized in the consolidated statement of income 1 1 — — 2 Net changes in benefit plan assets and obligations — (1 ) 18 — 17 Net changes in unrealized foreign currency translation 14 34 — — 48 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 311 119 (36 ) — 394 Income tax expense (benefit) 102 33 (12 ) — 123 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 209 86 (24 ) — 271 Other comprehensive income of subsidiaries — — 295 (295 ) — Other comprehensive income 209 86 271 (295 ) 271 Comprehensive income $ 647 $ 248 $ 866 $ (895 ) $ 866 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the three months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 502 $ 203 $ 664 $ (705 ) $ 664 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 570 306 3 — 879 Having credit losses recognized in the consolidated statement of income 6 6 — — 12 Net changes in benefit plan assets and obligations 18 19 (19 ) — 18 Net changes in unrealized foreign currency translation 25 (60 ) — — (35 ) Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 619 271 (16 ) — 874 Income tax expense (benefit) 216 113 (6 ) — 323 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 403 158 (10 ) — 551 Other comprehensive income of subsidiaries — — 561 (561 ) — Other comprehensive income 403 158 551 (561 ) 551 Comprehensive income $ 905 $ 361 $ 1,215 $ (1,266 ) $ 1,215 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 389 129 (47 ) — 471 Having credit losses recognized in the consolidated statement of income 2 — — — 2 Net changes in benefit plan assets and obligations — (1 ) 35 — 34 Net changes in unrealized foreign currency translation 39 50 — — 89 Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries 430 178 (12 ) — 596 Income tax expense (benefit) 139 49 (3 ) — 185 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 291 129 (9 ) — 411 Other comprehensive income of subsidiaries — — 420 (420 ) — Other comprehensive income 291 129 411 (420 ) 411 Comprehensive income $ 1,237 $ 435 $ 1,623 $ (1,672 ) $ 1,623 CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited) For the six months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Net income $ 1,027 $ 408 $ 1,355 $ (1,435 ) $ 1,355 Other comprehensive income (loss): Changes in net unrealized gains on investment securities: Having no credit losses recognized in the consolidated statement of income 1,055 534 4 — 1,593 Having credit losses recognized in the consolidated statement of income 8 9 — — 17 Net changes in benefit plan assets and obligations 18 20 (4 ) — 34 Net changes in unrealized foreign currency translation 119 (51 ) — — 68 Other comprehensive income before income taxes and other comprehensive income of subsidiaries 1,200 512 — — 1,712 Income tax expense 397 192 1 — 590 Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries 803 320 (1 ) — 1,122 Other comprehensive income of subsidiaries — — 1,123 (1,123 ) — Other comprehensive income 803 320 1,122 (1,123 ) 1,122 Comprehensive income $ 1,830 $ 728 $ 2,477 $ (2,558 ) $ 2,477 |
Consolidating Balance Sheet (Unaudited) [Table Text Block] | CONSOLIDATING BALANCE SHEET (Unaudited) At June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Assets Fixed maturities, available for sale, at fair value (amortized cost $60,482) $ 43,029 $ 18,829 $ 49 $ — $ 61,907 Equity securities, available for sale, at fair value (cost $558) 176 357 167 — 700 Real estate investments 55 865 — — 920 Short-term securities 2,065 715 2,512 — 5,292 Other investments 2,612 899 1 — 3,512 Total investments 47,937 21,665 2,729 — 72,331 Cash 134 192 2 — 328 Investment income accrued 422 176 4 — 602 Premiums receivable 4,952 2,393 — — 7,345 Reinsurance recoverables 5,594 2,556 — — 8,150 Ceded unearned premiums 587 78 — — 665 Deferred acquisition costs 1,847 204 — — 2,051 Deferred taxes (43 ) 188 56 — 201 Contractholder receivables 3,759 941 — — 4,700 Goodwill 2,586 1,003 — — 3,589 Other intangible assets 202 62 — — 264 Investment in subsidiaries — — 27,451 (27,451 ) — Other assets 2,122 283 38 — 2,443 Total assets $ 70,099 $ 29,741 $ 30,280 $ (27,451 ) $ 102,669 Liabilities Claims and claim adjustment expense reserves $ 32,564 $ 16,010 $ — $ — $ 48,574 Unearned premium reserves 9,043 4,009 — — 13,052 Contractholder payables 3,759 941 — — 4,700 Payables for reinsurance premiums 214 150 — — 364 Debt 693 — 6,227 — 6,920 Other liabilities 3,956 1,040 205 — 5,201 Total liabilities 50,229 22,150 6,432 — 78,811 Shareholders’ equity Common stock (1,750.0 shares authorized; 275.9 shares issued and outstanding) — 390 22,781 (390 ) 22,781 Additional paid-in capital 11,634 6,499 — (18,133 ) — Retained earnings 7,917 706 33,006 (8,613 ) 33,016 Accumulated other comprehensive income (loss) 319 (4 ) (344 ) (315 ) (344 ) Treasury stock, at cost (495.7 shares) — — (31,595 ) — (31,595 ) Total shareholders’ equity 19,870 7,591 23,848 (27,451 ) 23,858 Total liabilities and shareholders’ equity $ 70,099 $ 29,741 $ 30,280 $ (27,451 ) $ 102,669 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 Statement of Cash Flows (Unaudited) [Table Text Block] | CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2017 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 946 $ 306 $ 1,212 $ (1,252 ) $ 1,212 Net adjustments to reconcile net income to net cash provided by operating activities 224 31 223 (105 ) 373 Net cash provided by operating activities 1,170 337 1,435 (1,357 ) 1,585 Cash flows from investing activities Proceeds from maturities of fixed maturities 3,211 1,087 2 — 4,300 Proceeds from sales of investments: Fixed maturities 285 278 — — 563 Equity securities 4 75 121 — 200 Real estate investments — 20 — — 20 Other investments 294 109 — — 403 Purchases of investments: Fixed maturities (4,160 ) (1,511 ) (2 ) — (5,673 ) Equity securities (3 ) (41 ) (122 ) — (166 ) Real estate investments — (26 ) — — (26 ) Other investments (202 ) (57 ) — — (259 ) Net sales (purchases) of short-term securities 383 78 (885 ) — (424 ) Securities transactions in course of settlement 105 64 1 — 170 Other (135 ) 6 — — (129 ) Net cash provided by (used in) investing activities (218 ) 82 (885 ) — (1,021 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (700 ) — (700 ) Treasury stock acquired — net employee share-based compensation — — (61 ) — (61 ) Dividends paid to shareholders — — (389 ) — (389 ) Payment of debt — — (207 ) — (207 ) Issuance of debt — — 689 — 689 Issuance of common stock — employee share options — — 118 — 118 Dividends paid to parent company (961 ) (396 ) — 1,357 — Net cash used in financing activities (961 ) (396 ) (550 ) 1,357 (550 ) Effect of exchange rate changes on cash 2 5 — — 7 Net increase (decrease) in cash (7 ) 28 — — 21 Cash at beginning of year 141 164 2 — 307 Cash at end of period $ 134 $ 192 $ 2 $ — $ 328 Supplemental disclosure of cash flow information Income taxes paid (received) $ 336 $ 119 $ (132 ) $ — $ 323 Interest paid $ 24 $ — $ 154 $ — $ 178 CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) For the six months ended June 30, 2016 (in millions) TPC Other TRV Eliminations Consolidated Cash flows from operating activities Net income $ 1,027 $ 408 $ 1,355 $ (1,435 ) $ 1,355 Net adjustments to reconcile net income to net cash provided by (used in) operating activities (17 ) (222 ) 116 61 (62 ) Net cash provided by operating activities 1,010 186 1,471 (1,374 ) 1,293 Cash flows from investing activities Proceeds from maturities of fixed maturities 2,728 1,040 5 — 3,773 Proceeds from sales of investments: Fixed maturities 385 352 2 — 739 Equity securities 10 28 — — 38 Real estate investments — 69 — — 69 Other investments 233 110 — — 343 Purchases of investments: Fixed maturities (3,588 ) (2,108 ) (9 ) — (5,705 ) Equity securities (5 ) (19 ) (2 ) — (26 ) Real estate investments — (20 ) — — (20 ) Other investments (221 ) (69 ) — — (290 ) Net (purchases) sales of short-term securities 193 639 (151 ) — 681 Securities transactions in course of settlement 325 137 (1 ) — 461 Other (151 ) (3 ) — — (154 ) Net cash provided by (used in) investing activities (91 ) 156 (156 ) — (91 ) Cash flows from financing activities Treasury stock acquired — share repurchase authorization — — (1,100 ) — (1,100 ) Treasury stock acquired — net employee share-based compensation — — (59 ) — (59 ) Dividends paid to shareholders — — (375 ) — (375 ) Payment of debt — — (400 ) — (400 ) Issuance of debt — — 491 — 491 Issuance of common stock — employee share options — — 129 — 129 Dividends paid to parent company (1,025 ) (349 ) — 1,374 — Net cash used in financing activities (1,025 ) (349 ) (1,314 ) 1,374 (1,314 ) Effect of exchange rate changes on cash 2 (5 ) — — (3 ) Net increase (decrease) in cash (104 ) (12 ) 1 — (115 ) Cash at beginning of year 225 153 2 — 380 Cash at end of period $ 121 $ 141 $ 3 $ — $ 265 Supplemental disclosure of cash flow information Income taxes paid (received) $ 398 $ 142 $ (73 ) $ — $ 467 Interest paid $ 24 $ — $ 156 $ — $ 180 |
Basis of Presentation and Acc34
Basis of Presentation and Accounting Policies (details) $ in Millions | Mar. 13, 2017USD ($) |
Simply Business [Member] | |
Business Acquisition | |
Approximate consideration, including the repayment of debt and other obligations at the completion of the transaction, in announced acquisition expected to close in third quarter 2017 | $ 490 |
Basis of Presentation and Acc35
Basis of Presentation and Accounting Policies (details) - Reportable Segments | 6 Months Ended |
Jun. 30, 2017item | |
Basis of Presentation and Accounting Policies disclosure | |
Number of reportable business segments | 3 |
Segment Information (details)
Segment Information (details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Segment reporting information | |||||
Premiums | $ 6,351 | $ 6,067 | $ 12,534 | $ 12,048 | |
Net investment income | 598 | 549 | 1,208 | 1,093 | |
Fee income | 116 | 119 | 229 | 236 | |
Other revenues | 39 | 31 | 70 | 84 | |
Core income (loss) | 543 | 649 | 1,157 | 1,347 | |
Net realized investment gains | [1] | 80 | 19 | 85 | 10 |
Total revenues | 7,184 | 6,785 | 14,126 | 13,471 | |
Net realized investment gains, net of tax | 52 | 15 | 55 | 8 | |
Net income | 595 | 664 | 1,212 | 1,355 | |
Reportable Segments [Member] | |||||
Segment reporting information | |||||
Premiums | 6,351 | 6,067 | 12,534 | 12,048 | |
Net investment income | 598 | 549 | 1,208 | 1,093 | |
Fee income | 116 | 119 | 229 | 236 | |
Other revenues | 36 | 28 | 66 | 78 | |
Total segment revenues | 7,101 | 6,763 | 14,037 | 13,455 | |
Core income (loss) | 604 | 711 | 1,280 | 1,470 | |
Reportable Segments [Member] | Business Insurance [Member] | |||||
Segment reporting information | |||||
Premiums | 3,504 | 3,439 | 6,933 | 6,853 | |
Net investment income | 447 | 404 | 900 | 803 | |
Fee income | 112 | 115 | 221 | 229 | |
Other revenues | 15 | 8 | 24 | 38 | |
Total segment revenues | 4,078 | 3,966 | 8,078 | 7,923 | |
Core income (loss) | 429 | 401 | 871 | 848 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | |||||
Segment reporting information | |||||
Premiums | 3,265 | 3,212 | 6,454 | 6,390 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Workers' compensation [Member] | |||||
Segment reporting information | |||||
Premiums | 999 | 987 | 1,975 | 1,968 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Automobile [Member] | |||||
Segment reporting information | |||||
Premiums | 521 | 503 | 1,027 | 994 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial property [Member] | |||||
Segment reporting information | |||||
Premiums | 443 | 442 | 878 | 879 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | General liability [Member] | |||||
Segment reporting information | |||||
Premiums | 498 | 485 | 989 | 967 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Commercial multi-peril [Member] | |||||
Segment reporting information | |||||
Premiums | 797 | 786 | 1,571 | 1,568 | |
Reportable Segments [Member] | Business Insurance [Member] | Domestic [Member] | Other [Member] | |||||
Segment reporting information | |||||
Premiums | 7 | 9 | 14 | 14 | |
Reportable Segments [Member] | Business Insurance [Member] | International [Member] | |||||
Segment reporting information | |||||
Premiums | 239 | 227 | 479 | 463 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | |||||
Segment reporting information | |||||
Premiums | 575 | 559 | 1,130 | 1,111 | |
Net investment income | 56 | 58 | 117 | 118 | |
Other revenues | 6 | 5 | 11 | 9 | |
Total segment revenues | 637 | 622 | 1,258 | 1,238 | |
Core income (loss) | 163 | 215 | 308 | 375 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | |||||
Segment reporting information | |||||
Premiums | 530 | 518 | 1,044 | 1,026 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | General liability [Member] | |||||
Segment reporting information | |||||
Premiums | 239 | 235 | 474 | 469 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Fidelity and surety [Member] | |||||
Segment reporting information | |||||
Premiums | 245 | 239 | 479 | 469 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | Domestic [Member] | Other [Member] | |||||
Segment reporting information | |||||
Premiums | 46 | 44 | 91 | 88 | |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | International [Member] | |||||
Segment reporting information | |||||
Premiums | 45 | 41 | 86 | 85 | |
Reportable Segments [Member] | Personal Insurance [Member] | |||||
Segment reporting information | |||||
Premiums | 2,272 | 2,069 | 4,471 | 4,084 | |
Net investment income | 95 | 87 | 191 | 172 | |
Fee income | 4 | 4 | 8 | 7 | |
Other revenues | 15 | 15 | 31 | 31 | |
Total segment revenues | 2,386 | 2,175 | 4,701 | 4,294 | |
Core income (loss) | 12 | 95 | 101 | 247 | |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | |||||
Segment reporting information | |||||
Premiums | 2,122 | 1,918 | 4,171 | 3,792 | |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Automobile [Member] | |||||
Segment reporting information | |||||
Premiums | 1,145 | 974 | 2,239 | 1,910 | |
Reportable Segments [Member] | Personal Insurance [Member] | Domestic [Member] | Homeowners and Other [Member] | |||||
Segment reporting information | |||||
Premiums | 977 | 944 | 1,932 | 1,882 | |
Reportable Segments [Member] | Personal Insurance [Member] | International [Member] | |||||
Segment reporting information | |||||
Premiums | 150 | 151 | 300 | 292 | |
Other [Member] | |||||
Segment reporting information | |||||
Other revenues | 3 | 3 | 4 | 6 | |
Core income (loss) | (61) | (62) | (123) | (123) | |
After-tax interest expense | $ 60 | $ 60 | $ 118 | $ 120 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(6) million and $(32) million for the six months ended June 30, 2017 and 2016, respectively. Of total OTTI, credit losses of $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(7) million and $(22) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2017 and 2016, and $1 million and $(10) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in other comprehensive income as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Segment Information (details) -
Segment Information (details) - Assets by Segment - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets by segment | ||
Total assets | $ 102,669 | $ 100,245 |
Reportable Segments [Member] | ||
Assets by segment | ||
Total assets | 102,317 | 99,882 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Assets by segment | ||
Total assets | 77,653 | 75,730 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Assets by segment | ||
Total assets | 8,998 | 8,726 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Assets by segment | ||
Total assets | 15,666 | 15,426 |
Other assets [Member] | ||
Assets by segment | ||
Total assets | $ 352 | $ 363 |
Investments (details)
Investments (details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Investments disclosure | ||
Proceeds from sales of fixed maturities classified as available for sale | $ 563 | $ 739 |
Proceeds from sales of equity securities classified as available for sale | $ 200 | $ 38 |
Investments (details) - Investm
Investments (details) - Investment Information - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Investment disclosure details | |||||
Fixed maturities, amortized cost | $ 60,482 | $ 60,482 | $ 59,650 | ||
Gross unrealized gains | 1,670 | 1,670 | 1,369 | ||
Gross unrealized losses | 245 | 245 | 504 | ||
Fixed maturities, at fair value | 61,907 | 61,907 | 60,515 | ||
Equity securities, cost | 558 | 558 | 504 | ||
Gross unrealized gains | 153 | 153 | 236 | ||
Gross unrealized losses | 11 | 11 | 8 | ||
Equity securities, at fair value | 700 | 700 | 732 | ||
Continuous unrealized loss position less than 12 months, fair value | 13,462 | 13,462 | 18,310 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 226 | 226 | 482 | ||
Continuous unrealized loss position 12 months or longer, fair value | 575 | 575 | 561 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 30 | 30 | 30 | ||
Continuous unrealized loss position, total, fair value | 14,037 | 14,037 | 18,871 | ||
Continuous unrealized loss position, total, gross unrealized losses | 256 | 256 | 512 | ||
Unrealized losses for available-for-sale securities for which fair value is less than 80% of amortized cost, total | $ 1 | $ 1 | |||
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 pre-tax basis (less than) | 1.00% | 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% | 1.00% | |||
Impairment charges | $ 5 | $ 4 | $ 7 | $ 22 | |
Fixed maturities [Member] | |||||
Investment disclosure details | |||||
Gross realized gains | 17 | 46 | |||
Gross realized losses | 4 | 8 | |||
Continuous unrealized loss position less than 12 months, fair value | 13,312 | 13,312 | 18,263 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 223 | 223 | 480 | ||
Continuous unrealized loss position 12 months or longer, fair value | 500 | 500 | 492 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 22 | 22 | 24 | ||
Continuous unrealized loss position, total, fair value | 13,812 | 13,812 | 18,755 | ||
Continuous unrealized loss position, total, gross unrealized losses | 245 | 245 | 504 | ||
Cumulative OTTI credit losses recognized for securities held | $ 83 | $ 88 | $ 83 | $ 88 | |
Cumulative credit component of other-than-temporary impairments (OTTI) on fixed maturities recognized in the consolidated statement of income for which a portion of the OTTI was recognized in other comprehensive income (loss) for fixed maturities held, as a percentage of the fixed maturity portfolio on a pre-tax basis (less than) | 1.00% | 1.00% | 1.00% | 1.00% | |
Cumulative credit component of other-than-temporary impairments (OTTI) on fixed maturities recognized in the consolidated statement of income for which a portion of the OTTI was recognized in other comprehensive income (loss) for fixed maturities held, as a percentage of shareholders' equity on an after-tax basis (less than) | 1.00% | 1.00% | 1.00% | 1.00% | |
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | $ 2,023 | $ 2,023 | 2,031 | ||
Gross unrealized gains | 10 | 10 | 9 | ||
Gross unrealized losses | 5 | 5 | 5 | ||
Fixed maturities, at fair value | 2,028 | 2,028 | 2,035 | ||
Continuous unrealized loss position less than 12 months, fair value | 1,342 | 1,342 | 1,124 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 5 | 5 | 5 | ||
Continuous unrealized loss position 12 months or longer, fair value | 5 | 5 | |||
Continuous unrealized loss position, total, fair value | 1,347 | 1,347 | 1,124 | ||
Continuous unrealized loss position, total, gross unrealized losses | 5 | 5 | 5 | ||
Obligations of states, municipalities and political subdivisions [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 31,323 | 31,323 | 31,550 | ||
Gross unrealized gains | 944 | 944 | 712 | ||
Gross unrealized losses | 153 | 153 | 352 | ||
Fixed maturities, at fair value | 32,114 | 32,114 | 31,910 | ||
Continuous unrealized loss position less than 12 months, fair value | 6,088 | 6,088 | 9,781 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 142 | 142 | 352 | ||
Continuous unrealized loss position 12 months or longer, fair value | 179 | 179 | 12 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 11 | 11 | |||
Continuous unrealized loss position, total, fair value | 6,267 | 6,267 | 9,793 | ||
Continuous unrealized loss position, total, gross unrealized losses | 153 | 153 | 352 | ||
Obligations of states, municipalities and political subdivisions, local general obligation [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 14,010 | 14,010 | 13,955 | ||
Gross unrealized gains | 410 | 410 | 271 | ||
Gross unrealized losses | 79 | 79 | 182 | ||
Fixed maturities, at fair value | 14,341 | 14,341 | 14,044 | ||
Obligations of states, municipalities and political subdivisions, revenue [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 11,589 | 11,589 | 10,910 | ||
Gross unrealized gains | 317 | 317 | 215 | ||
Gross unrealized losses | 63 | 63 | 147 | ||
Fixed maturities, at fair value | 11,843 | 11,843 | 10,978 | ||
Obligations of states, municipalities and political subdivisions, state general obligation [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 1,612 | 1,612 | 1,717 | ||
Gross unrealized gains | 45 | 45 | 36 | ||
Gross unrealized losses | 11 | 11 | 22 | ||
Fixed maturities, at fair value | 1,646 | 1,646 | 1,731 | ||
Obligations of states, municipalities and political subdivisions, pre-refunded [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 4,112 | 4,112 | 4,968 | ||
Gross unrealized gains | 172 | 172 | 190 | ||
Gross unrealized losses | 1 | ||||
Fixed maturities, at fair value | 4,284 | 4,284 | 5,157 | ||
Debt securities issued by foreign governments [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 1,537 | 1,537 | 1,631 | ||
Gross unrealized gains | 24 | 24 | 34 | ||
Gross unrealized losses | 5 | 5 | 3 | ||
Fixed maturities, at fair value | 1,556 | 1,556 | 1,662 | ||
Continuous unrealized loss position less than 12 months, fair value | 432 | 432 | 360 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 5 | 5 | 3 | ||
Continuous unrealized loss position, total, fair value | 432 | 432 | 360 | ||
Continuous unrealized loss position, total, gross unrealized losses | 5 | 5 | 3 | ||
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 1,675 | 1,675 | 1,614 | ||
Gross unrealized gains | 97 | 97 | 100 | ||
Gross unrealized losses | 5 | 5 | 6 | ||
Fixed maturities, at fair value | 1,767 | 1,767 | 1,708 | ||
Continuous unrealized loss position less than 12 months, fair value | 470 | 470 | 528 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 5 | 5 | 5 | ||
Continuous unrealized loss position 12 months or longer, fair value | 37 | 37 | 43 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 1 | ||||
Continuous unrealized loss position, total, fair value | 507 | 507 | 571 | ||
Continuous unrealized loss position, total, gross unrealized losses | 5 | 5 | 6 | ||
All other corporate bonds [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 23,835 | 23,835 | 22,737 | ||
Gross unrealized gains | 589 | 589 | 508 | ||
Gross unrealized losses | 77 | 77 | 138 | ||
Fixed maturities, at fair value | 24,347 | 24,347 | 23,107 | ||
Continuous unrealized loss position less than 12 months, fair value | 4,980 | 4,980 | 6,470 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 66 | 66 | 115 | ||
Continuous unrealized loss position 12 months or longer, fair value | 279 | 279 | 437 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 11 | 11 | 23 | ||
Continuous unrealized loss position, total, fair value | 5,259 | 5,259 | 6,907 | ||
Continuous unrealized loss position, total, gross unrealized losses | 77 | 77 | 138 | ||
Redeemable preferred stock [Member] | |||||
Investment disclosure details | |||||
Fixed maturities, amortized cost | 89 | 89 | 87 | ||
Gross unrealized gains | 6 | 6 | 6 | ||
Fixed maturities, at fair value | 95 | 95 | 93 | ||
Equity securities [Member] | |||||
Investment disclosure details | |||||
Gross realized gains | 88 | $ 8 | |||
Gross realized losses | 1 | $ 2 | |||
Continuous unrealized loss position less than 12 months, fair value | 150 | 150 | 47 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 3 | 3 | 2 | ||
Continuous unrealized loss position 12 months or longer, fair value | 75 | 75 | 69 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 8 | 8 | 6 | ||
Continuous unrealized loss position, total, fair value | 225 | 225 | 116 | ||
Continuous unrealized loss position, total, gross unrealized losses | 11 | 11 | 8 | ||
Public common stock [Member] | |||||
Investment disclosure details | |||||
Equity securities, cost | 443 | 443 | 390 | ||
Gross unrealized gains | 130 | 130 | 216 | ||
Gross unrealized losses | 6 | 6 | 3 | ||
Equity securities, at fair value | 567 | 567 | 603 | ||
Continuous unrealized loss position less than 12 months, fair value | 150 | 150 | 45 | ||
Continuous unrealized loss position less than 12 months, gross unrealized losses | 3 | 3 | 2 | ||
Continuous unrealized loss position 12 months or longer, fair value | 14 | 14 | 10 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 3 | 3 | 1 | ||
Continuous unrealized loss position, total, fair value | 164 | 164 | 55 | ||
Continuous unrealized loss position, total, gross unrealized losses | 6 | 6 | 3 | ||
Non-redeemable preferred stock [Member] | |||||
Investment disclosure details | |||||
Equity securities, cost | 115 | 115 | 114 | ||
Gross unrealized gains | 23 | 23 | 20 | ||
Gross unrealized losses | 5 | 5 | 5 | ||
Equity securities, at fair value | 133 | 133 | 129 | ||
Continuous unrealized loss position less than 12 months, fair value | 2 | ||||
Continuous unrealized loss position 12 months or longer, fair value | 61 | 61 | 59 | ||
Continuous unrealized loss position 12 months or longer, gross unrealized losses | 5 | 5 | 5 | ||
Continuous unrealized loss position, total, fair value | 61 | 61 | 61 | ||
Continuous unrealized loss position, total, gross unrealized losses | $ 5 | $ 5 | $ 5 |
Investments (details) - Derivat
Investments (details) - Derivatives - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements disclosure | ||
Percent of fixed maturities for which a pricing service estimates fair value | 98.00% | 98.00% |
Fair value of the fixed maturities for which the Company used an internal pricing matrix | $ 108 | $ 99 |
Fair value of the fixed maturities for which the Company received a broker quote | $ 97 | $ 85 |
Percent of short-term securities for which a pricing service estimates fair value | 95.00% | 98.00% |
Percent of debt, including commercial paper, for which a pricing service estimates fair value | 100.00% | 100.00% |
Fair Value Measurements (deta42
Fair Value Measurements (details) - Fair Value Hierarchy - Recurring basis [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | $ 62,661 | $ 61,300 |
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 | 2,679 | 2,709 |
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 | 59,741 | 58,371 |
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 | 241 | 220 |
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 | 61,907 | 60,515 |
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 | 2,033 | 2,038 |
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 | 59,669 | 58,293 |
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 | 205 | 184 |
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 | 2,028 | 2,035 |
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 | 2,028 | 2,035 |
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 | 32,114 | 31,910 |
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 | 32,109 | 31,898 |
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 | 5 | 12 |
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 | 1,556 | 1,662 |
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 | 1,556 | 1,662 |
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 | 1,767 | 1,708 |
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 | 1,735 | 1,704 |
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 | 32 | 4 |
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 | 24,347 | 23,107 |
All other corporate bonds [Member] | Level 1 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 2 | |
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 | 24,177 | 22,939 |
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 | 168 |
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 | 95 | 93 |
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 | 92 | 90 |
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 | 700 | 732 |
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 | 628 | 654 |
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 | 72 | 78 |
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 | 567 | 603 |
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 | 567 | 603 |
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 | 133 | 129 |
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 | 61 | 51 |
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 | 72 | 78 |
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 | 54 | 53 |
Other investments [Member] | Level 1 [Member] | ||
Level within the fair value hierarchy at which the Company's financial assets are measured | ||
Total invested assets measured on a recurring basis | 18 | 17 |
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 | $ 36 |
Fair Value Measurements Footnot
Fair Value Measurements Footnote (details) - Financial Instruments - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Instruments | ||
Short-term securities | $ 5,292 | $ 4,865 |
Commercial paper amount | 0 | 100 |
Fair Value [Member] | ||
Financial Instruments | ||
Short-term securities | 5,292 | 4,865 |
Debt | 8,023 | 7,262 |
Commercial paper amount | 100 | |
Fair Value [Member] | Level 1 [Member] | ||
Financial Instruments | ||
Short-term securities | 1,134 | 1,223 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Instruments | ||
Short-term securities | 4,124 | 3,607 |
Debt | 8,023 | 7,262 |
Commercial paper amount | 100 | |
Fair Value [Member] | Level 3 [Member] | ||
Financial Instruments | ||
Short-term securities | 34 | 35 |
Carrying Value [Member] | ||
Financial Instruments | ||
Short-term securities | 5,292 | 4,865 |
Debt | $ 6,920 | 6,337 |
Commercial paper amount | $ 100 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets (details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill by segment | ||
Goodwill | $ 3,589 | $ 3,580 |
Reportable Segments [Member] | Business Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 2,229 | 2,227 |
Reportable Segments [Member] | Bond & Specialty Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 550 | 549 |
Reportable Segments [Member] | Personal Insurance [Member] | ||
Goodwill by segment | ||
Goodwill | 784 | 778 |
Other [Member] | ||
Goodwill by segment | ||
Goodwill | $ 26 | $ 26 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets (details) - Other Intangible Assets - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Goodwill and Other Intangible Assets disclosure | |||||
Intangible assets subject to amortization, gross carrying amount | $ 210 | $ 210 | $ 210 | ||
Intangible assets subject to amortization, accumulated amortization | 163 | 163 | 159 | ||
Intangible assets subject to amortization, net | 47 | 47 | 51 | ||
Intangible assets not subject to amortization | 217 | 217 | 217 | ||
Total other intangible assets, gross carrying amount | 427 | 427 | 427 | ||
Total other intangible assets, net | 264 | 264 | $ 268 | ||
Amortization expense of intangible assets | 2 | $ 2 | 5 | $ 5 | |
Estimated intangible asset amortization expense, remainder of 2017 | 4 | 4 | |||
Estimated intangible asset amortization expense, 2018 | 8 | 8 | |||
Estimated intangible asset amortization expense, 2019 | 7 | 7 | |||
Estimated intangible asset amortization expense, 2020 | 5 | 5 | |||
Estimated intangible asset amortization expense, 2021 | $ 5 | $ 5 |
Insurance Claim Reserves (detai
Insurance Claim Reserves (details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Insurance Claim Reserves disclosure | ||
Amount of increase in gross claims and claim adjustment expense reserves | $ 627 | |
Amount of decrease in reinsurance recoverables on unpaid losses | 104 | |
Accretion of discount | $ 25 | $ 25 |
Insurance Claim Reserves (det47
Insurance Claim Reserves (details) - Reserve Detail for Claims and Claim Adjustment Expenses - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
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 | $ 47,949 | |
Claims and claim adjustment expense reserves at end of period | 48,574 | |
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 | 47,929 | $ 48,272 |
Reinsurance recoverables on unpaid losses | 7,981 | 8,449 |
Net reserves at beginning of year | 39,948 | 39,823 |
Estimated claims and claim adjustment expenses for claims arising in the current year | 8,493 | 7,859 |
Estimated decrease in claims and claim adjustment expenses for claims arising in prior years | (214) | (418) |
Total increases | 8,279 | 7,441 |
Claims and claim adjustment expense payments for claims arising in current year | 2,699 | 2,454 |
Claims and claim adjustment expense payments for claims arising in prior years | 4,966 | 5,004 |
Total payments | 7,665 | 7,458 |
Unrealized foreign exchange loss | 117 | 36 |
Net reserves at end of period | 40,679 | 39,842 |
Reinsurance recoverables on unpaid losses | 7,877 | 8,089 |
Claims and claim adjustment expense reserves at end of period | 48,556 | $ 47,931 |
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 | 20 | |
Claims and claim adjustment expense reserves at end of period | $ 18 |
Insurance Claim Reserves (det48
Insurance Claim Reserves (details) - Prior Year Reserve Development - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | $ 284 | $ 468 | ||
Business Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | $ 125 | $ 125 | 186 | 199 |
Bond & Specialty Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | 78 | 159 | 92 | 225 |
Personal Insurance [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Net favorable prior year reserve development impacting the Company's results of operations | $ 0 | $ 4 | $ 6 | $ 44 |
Insurance Claim Reserves (det49
Insurance Claim Reserves (details) - Environmental Reserves - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Insurance [Member] | Environmental reserves [Member] | ||||
Liability for claims and claim adjustment expense | ||||
Increase to environmental reserves | $ 65 | $ 82 | $ 65 | $ 82 |
Other Comprehensive Income an50
Other Comprehensive Income and Accumulated Other Comprehensive Income (details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated other comprehensive income [Roll Forward] | ||||
Shareholders' equity, beginning of year | $ 23,221 | |||
Other comprehensive income, net of taxes | $ 271 | $ 551 | 411 | $ 1,122 |
Shareholders' equity, end of period | 23,858 | 24,714 | 23,858 | 24,714 |
Pre-tax components of other comprehensive income and related tax expense | ||||
Other comprehensive income before income taxes | 394 | 874 | 596 | 1,712 |
Income tax expense | 123 | 323 | 185 | 590 |
Other comprehensive income, net of taxes | 271 | 551 | 411 | 1,122 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Shareholders' equity, beginning of year | (755) | (157) | ||
Other comprehensive income before reclassifications | 449 | |||
Amounts reclassified from accumulated other comprehensive income | (38) | |||
Other comprehensive income, net of taxes | 271 | 551 | 411 | 1,122 |
Shareholders' equity, end of period | (344) | 965 | (344) | 965 |
Pre-tax components of other comprehensive income and related tax expense | ||||
Other comprehensive income before income taxes | 394 | 874 | 596 | 1,712 |
Income tax expense | 123 | 323 | 185 | 590 |
Other comprehensive income, net of taxes | 271 | 551 | 411 | 1,122 |
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 | 528 | |||
Other comprehensive income before reclassifications | 365 | |||
Amounts reclassified from accumulated other comprehensive income | (61) | |||
Other comprehensive income, net of taxes | 211 | 574 | 304 | 1,041 |
Shareholders' equity, end of period | 832 | 832 | ||
Pre-tax components of other comprehensive income and related tax expense | ||||
Other comprehensive income before income taxes | 327 | 879 | 471 | 1,593 |
Income tax expense | 116 | 305 | 167 | 552 |
Other comprehensive income, net of taxes | 211 | 574 | 304 | 1,041 |
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 | 202 | |||
Other comprehensive income before reclassifications | 1 | |||
Other comprehensive income, net of taxes | 1 | 8 | 1 | 11 |
Shareholders' equity, end of period | 203 | 203 | ||
Pre-tax components of other comprehensive income and related tax expense | ||||
Other comprehensive income before income taxes | 2 | 12 | 2 | 17 |
Income tax expense | 1 | 4 | 1 | 6 |
Other comprehensive income, net of taxes | 1 | 8 | 1 | 11 |
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Shareholders' equity, beginning of year | (703) | |||
Amounts reclassified from accumulated other comprehensive income | 23 | |||
Other comprehensive income, net of taxes | 11 | 12 | 23 | 23 |
Shareholders' equity, end of period | (680) | (680) | ||
Pre-tax components of other comprehensive income and related tax expense | ||||
Other comprehensive income before income taxes | 17 | 18 | 34 | 34 |
Income tax expense | 6 | 6 | 11 | 11 |
Other comprehensive income, net of taxes | 11 | 12 | 23 | 23 |
Net Unrealized Foreign Currency Translation [Member] | ||||
Accumulated other comprehensive income [Roll Forward] | ||||
Shareholders' equity, beginning of year | (782) | |||
Other comprehensive income before reclassifications | 83 | |||
Other comprehensive income, net of taxes | 48 | (43) | 83 | 47 |
Shareholders' equity, end of period | (699) | (699) | ||
Pre-tax components of other comprehensive income and related tax expense | ||||
Other comprehensive income before income taxes | 48 | (35) | 89 | 68 |
Income tax expense | 8 | 6 | 21 | |
Other comprehensive income, net of taxes | $ 48 | $ (43) | $ 83 | $ 47 |
Other Comprehensive Income an51
Other Comprehensive Income and Accumulated Other Comprehensive Income (details) - Reclassifications - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment impacting net realized investment gains on the income statement | [1] | $ (80) | $ (19) | $ (85) | $ (10) |
Reclassification adjustment impacting claims and claim adjustment expenses on the income statement | 4,225 | 3,762 | 8,319 | 7,474 | |
Reclassification adjustment impacting general and administrative expense on the income statement | 1,045 | 1,054 | 2,041 | 2,049 | |
Total reclassifications | (790) | (887) | (1,550) | (1,804) | |
Income tax (expense) benefit | (195) | (223) | (338) | (449) | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (595) | (664) | (1,212) | (1,355) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Total reclassifications | (66) | (8) | (59) | 8 | |
Income tax (expense) benefit | (23) | (2) | (21) | 3 | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (43) | (6) | (38) | 5 | |
Changes in Net Unrealized Gains on Investment Securities Having No Credit Losses Recognized in the Consolidated Statement of Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment impacting net realized investment gains on the income statement | (84) | (24) | (94) | (35) | |
Income tax (expense) benefit | (30) | (8) | (33) | (12) | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | (54) | (16) | (61) | (23) | |
Changes in Net Unrealized Gains on Investment Securities Having Credit Losses Recognized in the Consolidated Statement of Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment impacting net realized investment gains on the income statement | 1 | 12 | |||
Income tax (expense) benefit | 4 | ||||
Amounts reclassified from accumulated other comprehensive income, net of taxes | 1 | 8 | |||
Net Benefit Plan Assets and Obligations Recognized in Shareholders' Equity [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment impacting claims and claim adjustment expenses on the income statement | 7 | 6 | 14 | 12 | |
Reclassification adjustment impacting general and administrative expense on the income statement | 11 | 9 | 21 | 19 | |
Total reclassifications | 18 | 15 | 35 | 31 | |
Income tax (expense) benefit | 7 | 6 | 12 | 11 | |
Amounts reclassified from accumulated other comprehensive income, net of taxes | $ 11 | $ 9 | $ 23 | $ 20 | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(6) million and $(32) million for the six months ended June 30, 2017 and 2016, respectively. Of total OTTI, credit losses of $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(7) million and $(22) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2017 and 2016, and $1 million and $(10) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in other comprehensive income as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Debt (details)
Debt (details) - USD ($) $ in Millions | May 22, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument | |||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 689 | $ 491 | |
4.00% Senior notes due May 30, 2047 [Member] | |||
Debt Instrument | |||
Debt, principal amount | $ 700 | ||
Interest rate (percent) | 4.00% | ||
Net proceeds of issuance, after the deduction of the underwriting discount and expenses | $ 689 | ||
Percentage of principal amount at which redemption price may be set | 100.00% | ||
Basis points added to current treasury rate used in calculation of alternative redemption price | 0.15% |
Debt (details) - Payment
Debt (details) - Payment - USD ($) $ in Millions | Jun. 02, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Debt Instrument | ||||
Debt, principal amount repaid | $ 207 | $ 400 | ||
Commercial paper, amount outstanding | $ 0 | $ 100 | ||
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 [Member] | ||||
Debt Instrument | ||||
Debt, principal amount repaid | $ 107 | |||
Interest rate (percent) | 6.25% | |||
Percentage of principal amount at which redemption price was set | 100.00% |
Common Share Repurchases (detai
Common Share Repurchases (details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Apr. 20, 2017 | |
Common Share Repurchases disclosure | |||
Number of shares repurchased (in shares) | 3,800,000 | 5,700,000 | |
Cost of shares repurchased | $ 475 | $ 700 | |
Average cost per share repurchased | $ 123.04 | $ 122.33 | |
Number of shares acquired to cover tax withholding costs and exercise costs (in shares) | 1,803 | 500,000 | |
Cost of shares acquired to cover tax withholding costs and exercise costs | $ 0.2 | $ 61 | |
Additional share repurchase authorization | $ 5,000 | ||
Remaining capacity under share repurchase authorization | $ 5,230 | $ 5,230 |
Earnings per Share (details)
Earnings per Share (details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings per Share disclosure | ||||
Net income | $ 595 | $ 664 | $ 1,212 | $ 1,355 |
Participating share-based awards - allocated income | (5) | (5) | (9) | (10) |
Net income available to common shareholders -- basic | 590 | 659 | 1,203 | 1,345 |
Net income available to common shareholders -- diluted | $ 590 | $ 659 | $ 1,203 | $ 1,345 |
Weighted average shares outstanding, basic | 277.5 | 290.1 | 278.6 | 292.1 |
Weighted average effects of dilutive securities, stock options and performance shares (in shares) | 2.5 | 3.5 | 2.6 | 3.5 |
Weighted average shares outstanding, diluted | 280 | 293.6 | 281.2 | 295.6 |
Net income per common share, basic | $ 2.13 | $ 2.27 | $ 4.32 | $ 4.60 |
Net income per common share, diluted | $ 2.11 | $ 2.24 | $ 4.28 | $ 4.55 |
Share-Based Incentive Compens56
Share-Based Incentive Compensation (details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-Based Incentive Compensation disclosure | ||||
Stock options vested at end of period, number (in shares) | 5,999,122 | 5,999,122 | ||
Stock options vested at end of period, weighted average exercise price (per share) | $ 87.63 | $ 87.63 | ||
Stock options vested at end of period, weighted average contractual life remaining | 6 years 4 months 24 days | |||
Stock options vested at end of period, aggregate intrinsic value | $ 233 | $ 233 | ||
Stock options exercisable at end of period, number (in shares) | 3,276,192 | 3,276,192 | ||
Stock options exercisable at end of period, weighted average exercise price (per share) | $ 69.02 | $ 69.02 | ||
Stock options exercisable at end of period, weighted average contractual life remaining | 4 years 7 months 6 days | |||
Stock options exercisable at end of period, aggregate intrinsic value | $ 188 | $ 188 | ||
Total compensation cost recognized in earnings for all share-based incentive compensation awards | 31 | $ 32 | 73 | $ 82 |
Tax benefit recognized in earnings related to compensation costs | 10 | $ 11 | 24 | $ 28 |
Total unrecognized compensation cost related to all nonvested share-based incentive compensation awards | $ 186 | $ 186 | ||
Weighted-average period of recognition for unrecognized compensation cost (in years) | 2 years |
Pension Plans, Retirement Ben57
Pension Plans, Retirement Benefits and Savings Plans (details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Plans [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | $ 30 | $ 30 | $ 60 | $ 59 |
Interest cost on benefit obligation | 30 | 31 | 61 | 61 |
Expected return on plan assets | (60) | (58) | (120) | (115) |
Net periodic benefit cost, settlement | 1 | 1 | ||
Net periodic benefit cost, amortization of unrecognized net actuarial loss | 19 | 16 | 37 | 33 |
Total non-service cost | (11) | (10) | (22) | (20) |
Net periodic benefit cost | 19 | 20 | 38 | 39 |
Pension Plans [Member] | Claims and claim adjustment expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 12 | 12 | 24 | 24 |
Total non-service cost | (5) | (5) | (9) | (9) |
Pension Plans [Member] | General and administrative expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Service cost | 18 | 18 | 36 | 35 |
Total non-service cost | (6) | (5) | (13) | (11) |
Postretirement Benefit Plans [Member] | ||||
Defined benefit plan disclosure | ||||
Interest cost on benefit obligation | 1 | 2 | 3 | 4 |
Net periodic benefit cost, amortization of unrecognized prior service benefit | $ (1) | (1) | (2) | (2) |
Total non-service cost | 1 | 1 | 2 | |
Net periodic benefit cost | 1 | 1 | 2 | |
Postretirement Benefit Plans [Member] | Claims and claim adjustment expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Total non-service cost | $ 1 | 1 | ||
Postretirement Benefit Plans [Member] | General and administrative expenses [Member] | ||||
Defined benefit plan disclosure | ||||
Total non-service cost | $ 1 | $ 1 |
Contingencies, Commitments an58
Contingencies, Commitments and Guarantees (details) $ in Millions | 3 Months Ended | 79 Months Ended | |||||
Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($) | May 01, 2017item | Nov. 07, 2016USD ($)item | Nov. 06, 2016USD ($) | Aug. 17, 2010item | |
Gain Contingency | |||||||
Reinsurance recoverables | $ 8,287 | $ 8,150 | |||||
United States Fidelity & Guaranty Company v. American Re-Insurance Company, et al. [Member] | |||||||
Gain Contingency | |||||||
Number of discrete issues for which the Court of Appeals remanded the case for trial | item | 2 | ||||||
Number of reinsurer defendants | item | 2 | 3 | |||||
Number of reinsurers with whom the Company reached a settlement agreeement | item | 2 | 1 | |||||
Gain from payment received from settlement (pre-tax) | 126 | ||||||
Gain from payment received from settlement (after-tax) | $ 82 | ||||||
Reinsurance recoverables | $ 31 | $ 0 | $ 31 | $ 238 | |||
Total settlement amount | 71 | ||||||
Settlement amount, reinsurance recoverables | 31 | ||||||
Interest related to settlement award | $ 40 |
Contingencies, Commitments an59
Contingencies, Commitments and Guarantees (details) - Commitments - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Contingencies and Commitments disclosure | ||
Unfunded commitments to private equity limited partnerships and real estate partnerships | $ 1,580 | $ 1,600 |
Contingencies, Commitments an60
Contingencies, Commitments and Guarantees (details) - Guarantees $ in Millions | Jun. 30, 2017USD ($) |
Indemnifications related to the sale of businesses [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | $ 358 |
Amount recognized on balance sheet for contingent obligation | 2 |
Guarantees of certain investments and third-party loans [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | 45 |
Amount indemnified by a third party | 23 |
Guarantees of certain insurance policy obligations [Member] | |
Guarantor obligations | |
Maximum amount of contingent obligation | 480 |
Amount indemnified by a third party | $ 480 |
Consolidating Financial State61
Consolidating Financial Statements (Unaudited) (details) $ in Millions | Jun. 30, 2017USD ($) |
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 State62
Consolidating Financial Statements (details) - Consolidating Statement of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Consolidating Statement of Income | |||||
Premiums | $ 6,351 | $ 6,067 | $ 12,534 | $ 12,048 | |
Net investment income | 598 | 549 | 1,208 | 1,093 | |
Fee income | 116 | 119 | 229 | 236 | |
Net realized investment gains (losses) | [1] | 80 | 19 | 85 | 10 |
Other revenues | 39 | 31 | 70 | 84 | |
Total revenues | 7,184 | 6,785 | 14,126 | 13,471 | |
Claims and claim adjustment expenses | 4,225 | 3,762 | 8,319 | 7,474 | |
Amortization of deferred acquisition costs | 1,032 | 989 | 2,035 | 1,960 | |
General and administrative expenses | 1,045 | 1,054 | 2,041 | 2,049 | |
Interest expense | 92 | 93 | 181 | 184 | |
Total claims and expenses | 6,394 | 5,898 | 12,576 | 11,667 | |
Income before income taxes | 790 | 887 | 1,550 | 1,804 | |
Income tax expense (benefit) | 195 | 223 | 338 | 449 | |
Net income | 595 | 664 | 1,212 | 1,355 | |
Total other-than-temporary impairment losses | (5) | (4) | (6) | (32) | |
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (5) | (4) | (7) | (22) | |
Other-than-temporary impairment gains (losses) recognized in other comprehensive income | 0 | 0 | 1 | (10) | |
Reportable Legal Entities [Member] | TPC [Member] | |||||
Consolidating Statement of Income | |||||
Premiums | 4,345 | 4,161 | 8,573 | 8,246 | |
Net investment income | 401 | 377 | 813 | 753 | |
Fee income | 116 | 119 | 229 | 236 | |
Net realized investment gains (losses) | (4) | (1) | (8) | (17) | |
Other revenues | 30 | 33 | 54 | 81 | |
Total revenues | 4,888 | 4,689 | 9,661 | 9,299 | |
Claims and claim adjustment expenses | 2,851 | 2,575 | 5,603 | 5,095 | |
Amortization of deferred acquisition costs | 693 | 666 | 1,361 | 1,316 | |
General and administrative expenses | 737 | 743 | 1,440 | 1,447 | |
Interest expense | 12 | 12 | 24 | 24 | |
Total claims and expenses | 4,293 | 3,996 | 8,428 | 7,882 | |
Income before income taxes | 595 | 693 | 1,233 | 1,417 | |
Income tax expense (benefit) | 157 | 191 | 287 | 390 | |
Net income | 438 | 502 | 946 | 1,027 | |
Total other-than-temporary impairment losses | (2) | (3) | (2) | (17) | |
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (2) | (3) | (3) | (12) | |
Other-than-temporary impairment gains (losses) recognized in other comprehensive income | 1 | (5) | |||
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | |||||
Consolidating Statement of Income | |||||
Premiums | 2,006 | 1,906 | 3,961 | 3,802 | |
Net investment income | 191 | 168 | 385 | 334 | |
Net realized investment gains (losses) | 25 | 20 | 34 | 27 | |
Other revenues | 12 | 1 | 21 | 17 | |
Total revenues | 2,234 | 2,095 | 4,401 | 4,180 | |
Claims and claim adjustment expenses | 1,374 | 1,187 | 2,716 | 2,379 | |
Amortization of deferred acquisition costs | 339 | 323 | 674 | 644 | |
General and administrative expenses | 305 | 313 | 597 | 611 | |
Total claims and expenses | 2,018 | 1,823 | 3,987 | 3,634 | |
Income before income taxes | 216 | 272 | 414 | 546 | |
Income tax expense (benefit) | 54 | 69 | 108 | 138 | |
Net income | 162 | 203 | 306 | 408 | |
Total other-than-temporary impairment losses | (3) | (1) | (4) | (15) | |
Other-than-temporary impairment losses recognized in net realized investment gains (losses) | (3) | (1) | (4) | (10) | |
Other-than-temporary impairment gains (losses) recognized in other comprehensive income | (5) | ||||
Reportable Legal Entities [Member] | TRV [Member] | |||||
Consolidating Statement of Income | |||||
Net investment income | 6 | 4 | 10 | 6 | |
Net realized investment gains (losses) | 59 | 59 | |||
Total revenues | 65 | 4 | 69 | 6 | |
General and administrative expenses | 6 | 1 | 9 | 5 | |
Interest expense | 80 | 81 | 157 | 160 | |
Total claims and expenses | 86 | 82 | 166 | 165 | |
Income before income taxes | (21) | (78) | (97) | (159) | |
Income tax expense (benefit) | (16) | (37) | (57) | (79) | |
Net income of subsidiaries | 600 | 705 | 1,252 | 1,435 | |
Net income | 595 | 664 | 1,212 | 1,355 | |
Eliminations [Member] | |||||
Consolidating Statement of Income | |||||
Other revenues | (3) | (3) | (5) | (14) | |
Total revenues | (3) | (3) | (5) | (14) | |
General and administrative expenses | (3) | (3) | (5) | (14) | |
Total claims and expenses | (3) | (3) | (5) | (14) | |
Net income of subsidiaries | (600) | (705) | (1,252) | (1,435) | |
Net income | $ (600) | $ (705) | $ (1,252) | $ (1,435) | |
[1] | Total other-than-temporary impairment (OTTI) losses were $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(6) million and $(32) million for the six months ended June 30, 2017 and 2016, respectively. Of total OTTI, credit losses of $(5) million and $(4) million for the three months ended June 30, 2017 and 2016, respectively, and $(7) million and $(22) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million for each of the three months ended June 30, 2017 and 2016, and $1 million and $(10) million for the six months ended June 30, 2017 and 2016, respectively, were recognized in other comprehensive income as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income. |
Consolidating Financial State63
Consolidating Financial Statements (details) - Consolidating Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidating Statement of Comprehensive Income | ||||
Net income | $ 595 | $ 664 | $ 1,212 | $ 1,355 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | 327 | 879 | 471 | 1,593 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 2 | 12 | 2 | 17 |
Net changes in benefit plan assets and obligations | 17 | 18 | 34 | 34 |
Net changes in unrealized foreign currency translation | 48 | (35) | 89 | 68 |
Other comprehensive income before income taxes | 394 | 874 | 596 | 1,712 |
Income tax expense (benefit) | 123 | 323 | 185 | 590 |
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries | 271 | 551 | 411 | 1,122 |
Other comprehensive income, net of taxes | 271 | 551 | 411 | 1,122 |
Comprehensive income | 866 | 1,215 | 1,623 | 2,477 |
Reportable Legal Entities [Member] | TPC [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | 438 | 502 | 946 | 1,027 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | 296 | 570 | 389 | 1,055 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 1 | 6 | 2 | 8 |
Net changes in benefit plan assets and obligations | 18 | 18 | ||
Net changes in unrealized foreign currency translation | 14 | 25 | 39 | 119 |
Other comprehensive income before income taxes | 311 | 619 | 430 | 1,200 |
Income tax expense (benefit) | 102 | 216 | 139 | 397 |
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries | 209 | 403 | 291 | 803 |
Other comprehensive income, net of taxes | 209 | 403 | 291 | 803 |
Comprehensive income | 647 | 905 | 1,237 | 1,830 |
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | 162 | 203 | 306 | 408 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | 85 | 306 | 129 | 534 |
Changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income | 1 | 6 | 9 | |
Net changes in benefit plan assets and obligations | (1) | 19 | (1) | 20 |
Net changes in unrealized foreign currency translation | 34 | (60) | 50 | (51) |
Other comprehensive income before income taxes | 119 | 271 | 178 | 512 |
Income tax expense (benefit) | 33 | 113 | 49 | 192 |
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries | 86 | 158 | 129 | 320 |
Other comprehensive income, net of taxes | 86 | 158 | 129 | 320 |
Comprehensive income | 248 | 361 | 435 | 728 |
Reportable Legal Entities [Member] | TRV [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | 595 | 664 | 1,212 | 1,355 |
Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income | (54) | 3 | (47) | 4 |
Net changes in benefit plan assets and obligations | 18 | (19) | 35 | (4) |
Other comprehensive income before income taxes | (36) | (16) | (12) | |
Income tax expense (benefit) | (12) | (6) | (3) | 1 |
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries | (24) | (10) | (9) | (1) |
Other comprehensive income of subsidiaries | 295 | 561 | 420 | 1,123 |
Other comprehensive income, net of taxes | 271 | 551 | 411 | 1,122 |
Comprehensive income | 866 | 1,215 | 1,623 | 2,477 |
Eliminations [Member] | ||||
Consolidating Statement of Comprehensive Income | ||||
Net income | (600) | (705) | (1,252) | (1,435) |
Other comprehensive income of subsidiaries | (295) | (561) | (420) | (1,123) |
Other comprehensive income, net of taxes | (295) | (561) | (420) | (1,123) |
Comprehensive income | $ (895) | $ (1,266) | $ (1,672) | $ (2,558) |
Consolidating Financial State64
Consolidating Financial Statements (details) - Consolidating Balance Sheet (Unaudited) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | $ 61,907 | $ 60,515 | ||
Equity securities, available for sale, at fair value | 700 | 732 | ||
Real estate investments | 920 | 928 | ||
Short-term securities | 5,292 | 4,865 | ||
Other investments | 3,512 | 3,448 | ||
Total investments | 72,331 | 70,488 | ||
Cash | 328 | 307 | $ 265 | $ 380 |
Investment income accrued | 602 | 630 | ||
Premiums receivable | 7,345 | 6,722 | ||
Reinsurance recoverables | 8,150 | 8,287 | ||
Ceded unearned premiums | 665 | 589 | ||
Deferred acquisition costs | 2,051 | 1,923 | ||
Deferred taxes | 201 | 465 | ||
Contractholder receivables | 4,700 | 4,609 | ||
Goodwill | 3,589 | 3,580 | ||
Other intangible assets | 264 | 268 | ||
Other assets | 2,443 | 2,377 | ||
Total assets | 102,669 | 100,245 | ||
Claims and claim adjustment expense reserves | 48,574 | 47,949 | ||
Unearned premium reserves | 13,052 | 12,329 | ||
Contractholder payables | 4,700 | 4,609 | ||
Payables for reinsurance premiums | 364 | 273 | ||
Debt | 6,920 | 6,437 | ||
Other liabilities | 5,201 | 5,427 | ||
Total liabilities | 78,811 | 77,024 | ||
Common stock | 22,781 | 22,614 | ||
Retained earnings | 33,016 | 32,196 | ||
Accumulated other comprehensive income (loss) | (344) | (755) | ||
Treasury stock, at cost | (31,595) | (30,834) | ||
Total shareholders' equity | 23,858 | 23,221 | 24,714 | |
Total liabilities and shareholders' equity | 102,669 | 100,245 | ||
Fixed maturities, available for sale, amortized cost | 60,482 | 59,650 | ||
Equity securities, available for sale, cost | $ 558 | $ 504 | ||
Common stock, shares authorized | 1,750 | 1,750 | ||
Common stock, shares issued | 275.9 | 279.6 | ||
Common stock, shares outstanding | 275.9 | 279.6 | ||
Treasury stock, at cost, shares | 495.7 | 489.5 | ||
Reportable Legal Entities [Member] | TPC [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | $ 43,029 | $ 42,014 | ||
Equity securities, available for sale, at fair value | 176 | 169 | ||
Real estate investments | 55 | 56 | ||
Short-term securities | 2,065 | 2,447 | ||
Other investments | 2,612 | 2,569 | ||
Total investments | 47,937 | 47,255 | ||
Cash | 134 | 141 | 121 | 225 |
Investment income accrued | 422 | 441 | ||
Premiums receivable | 4,952 | 4,545 | ||
Reinsurance recoverables | 5,594 | 5,664 | ||
Ceded unearned premiums | 587 | 536 | ||
Deferred acquisition costs | 1,847 | 1,741 | ||
Deferred taxes | (43) | 216 | ||
Contractholder receivables | 3,759 | 3,656 | ||
Goodwill | 2,586 | 2,578 | ||
Other intangible assets | 202 | 202 | ||
Other assets | 2,122 | 1,973 | ||
Total assets | 70,099 | 68,948 | ||
Claims and claim adjustment expense reserves | 32,564 | 32,168 | ||
Unearned premium reserves | 9,043 | 8,575 | ||
Contractholder payables | 3,759 | 3,656 | ||
Payables for reinsurance premiums | 214 | 156 | ||
Debt | 693 | 693 | ||
Other liabilities | 3,956 | 4,106 | ||
Total liabilities | 50,229 | 49,354 | ||
Additional paid-in capital | 11,634 | 11,634 | ||
Retained earnings | 7,917 | 7,933 | ||
Accumulated other comprehensive income (loss) | 319 | 27 | ||
Total shareholders' equity | 19,870 | 19,594 | ||
Total liabilities and shareholders' equity | 70,099 | 68,948 | ||
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | 18,829 | 18,452 | ||
Equity securities, available for sale, at fair value | 357 | 408 | ||
Real estate investments | 865 | 872 | ||
Short-term securities | 715 | 791 | ||
Other investments | 899 | 878 | ||
Total investments | 21,665 | 21,401 | ||
Cash | 192 | 164 | 141 | 153 |
Investment income accrued | 176 | 183 | ||
Premiums receivable | 2,393 | 2,177 | ||
Reinsurance recoverables | 2,556 | 2,623 | ||
Ceded unearned premiums | 78 | 53 | ||
Deferred acquisition costs | 204 | 182 | ||
Deferred taxes | 188 | 224 | ||
Contractholder receivables | 941 | 953 | ||
Goodwill | 1,003 | 1,002 | ||
Other intangible assets | 62 | 66 | ||
Other assets | 283 | 370 | ||
Total assets | 29,741 | 29,398 | ||
Claims and claim adjustment expense reserves | 16,010 | 15,781 | ||
Unearned premium reserves | 4,009 | 3,754 | ||
Contractholder payables | 941 | 953 | ||
Payables for reinsurance premiums | 150 | 117 | ||
Other liabilities | 1,040 | 1,239 | ||
Total liabilities | 22,150 | 21,844 | ||
Common stock | 390 | 390 | ||
Additional paid-in capital | 6,499 | 6,499 | ||
Retained earnings | 706 | 797 | ||
Accumulated other comprehensive income (loss) | (4) | (132) | ||
Total shareholders' equity | 7,591 | 7,554 | ||
Total liabilities and shareholders' equity | 29,741 | 29,398 | ||
Reportable Legal Entities [Member] | TRV [Member] | ||||
Consolidating Balance Sheet | ||||
Fixed maturities, available for sale, at fair value | 49 | 49 | ||
Equity securities, available for sale, at fair value | 167 | 155 | ||
Short-term securities | 2,512 | 1,627 | ||
Other investments | 1 | 1 | ||
Total investments | 2,729 | 1,832 | ||
Cash | 2 | 2 | $ 3 | $ 2 |
Investment income accrued | 4 | 6 | ||
Deferred taxes | 56 | 25 | ||
Investment in subsidiaries | 27,451 | 27,137 | ||
Other assets | 38 | 34 | ||
Total assets | 30,280 | 29,036 | ||
Debt | 6,227 | 5,744 | ||
Other liabilities | 205 | 82 | ||
Total liabilities | 6,432 | 5,826 | ||
Common stock | 22,781 | 22,614 | ||
Retained earnings | 33,006 | 32,185 | ||
Accumulated other comprehensive income (loss) | (344) | (755) | ||
Treasury stock, at cost | (31,595) | (30,834) | ||
Total shareholders' equity | 23,848 | 23,210 | ||
Total liabilities and shareholders' equity | 30,280 | 29,036 | ||
Eliminations [Member] | ||||
Consolidating Balance Sheet | ||||
Investment in subsidiaries | (27,451) | (27,137) | ||
Total assets | (27,451) | (27,137) | ||
Common stock | (390) | (390) | ||
Additional paid-in capital | (18,133) | (18,133) | ||
Retained earnings | (8,613) | (8,719) | ||
Accumulated other comprehensive income (loss) | (315) | 105 | ||
Total shareholders' equity | (27,451) | (27,137) | ||
Total liabilities and shareholders' equity | $ (27,451) | $ (27,137) |
Consolidating Financial State65
Consolidating Financial Statements (details) - Consolidating Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidating Statement of Cash Flows | ||||
Net income | $ 595 | $ 664 | $ 1,212 | $ 1,355 |
Net adjustments to reconcile net income to net cash provided by (used in) operating activities | 373 | (62) | ||
Net cash provided by operating activities | 1,585 | 1,293 | ||
Proceeds from maturities of fixed maturities | 4,300 | 3,773 | ||
Proceeds from sales of investments, fixed maturities | 563 | 739 | ||
Proceeds from sales of investments, equity securities | 200 | 38 | ||
Proceeds from sales of investments, real estate investments | 20 | 69 | ||
Proceeds from sales of investments, other investments | 403 | 343 | ||
Purchases of investments, fixed maturities | (5,673) | (5,705) | ||
Purchases of investments, equity securities | (166) | (26) | ||
Purchases of investments, real estate investments | (26) | (20) | ||
Purchases of investments, other investments | (259) | (290) | ||
Net (purchases) sales of short-term securities | (424) | 681 | ||
Securities transactions in course of settlement | 170 | 461 | ||
Other investing activities | (129) | (154) | ||
Net cash used in investing activities | (1,021) | (91) | ||
Treasury stock acquired - share repurchase authorization | (700) | (1,100) | ||
Treasury stock acquired - net employee share-based compensation | (61) | (59) | ||
Dividends paid to shareholders | (389) | (375) | ||
Payment of debt | (207) | (400) | ||
Issuance of debt | 689 | 491 | ||
Issuance of common stock - employee share options | 118 | 129 | ||
Net cash used in financing activities | (550) | (1,314) | ||
Effect of exchange rate changes on cash | 7 | (3) | ||
Net increase (decrease) in cash | 21 | (115) | ||
Cash at beginning of year | 307 | 380 | ||
Cash at end of period | 328 | 265 | 328 | 265 |
Income taxes paid (received) | 323 | 467 | ||
Interest paid | 178 | 180 | ||
Reportable Legal Entities [Member] | TPC [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | 438 | 502 | 946 | 1,027 |
Net adjustments to reconcile net income to net cash provided by (used in) operating activities | 224 | (17) | ||
Net cash provided by operating activities | 1,170 | 1,010 | ||
Proceeds from maturities of fixed maturities | 3,211 | 2,728 | ||
Proceeds from sales of investments, fixed maturities | 285 | 385 | ||
Proceeds from sales of investments, equity securities | 4 | 10 | ||
Proceeds from sales of investments, other investments | 294 | 233 | ||
Purchases of investments, fixed maturities | (4,160) | (3,588) | ||
Purchases of investments, equity securities | (3) | (5) | ||
Purchases of investments, other investments | (202) | (221) | ||
Net (purchases) sales of short-term securities | 383 | 193 | ||
Securities transactions in course of settlement | 105 | 325 | ||
Other investing activities | (135) | (151) | ||
Net cash used in investing activities | (218) | (91) | ||
Dividends paid to parent company | (961) | (1,025) | ||
Net cash used in financing activities | (961) | (1,025) | ||
Effect of exchange rate changes on cash | 2 | 2 | ||
Net increase (decrease) in cash | (7) | (104) | ||
Cash at beginning of year | 141 | 225 | ||
Cash at end of period | 134 | 121 | 134 | 121 |
Income taxes paid (received) | 336 | 398 | ||
Interest paid | 24 | 24 | ||
Reportable Legal Entities [Member] | Other Subsidiaries [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | 162 | 203 | 306 | 408 |
Net adjustments to reconcile net income to net cash provided by (used in) operating activities | 31 | (222) | ||
Net cash provided by operating activities | 337 | 186 | ||
Proceeds from maturities of fixed maturities | 1,087 | 1,040 | ||
Proceeds from sales of investments, fixed maturities | 278 | 352 | ||
Proceeds from sales of investments, equity securities | 75 | 28 | ||
Proceeds from sales of investments, real estate investments | 20 | 69 | ||
Proceeds from sales of investments, other investments | 109 | 110 | ||
Purchases of investments, fixed maturities | (1,511) | (2,108) | ||
Purchases of investments, equity securities | (41) | (19) | ||
Purchases of investments, real estate investments | (26) | (20) | ||
Purchases of investments, other investments | (57) | (69) | ||
Net (purchases) sales of short-term securities | 78 | 639 | ||
Securities transactions in course of settlement | 64 | 137 | ||
Other investing activities | 6 | (3) | ||
Net cash used in investing activities | 82 | 156 | ||
Dividends paid to parent company | (396) | (349) | ||
Net cash used in financing activities | (396) | (349) | ||
Effect of exchange rate changes on cash | 5 | (5) | ||
Net increase (decrease) in cash | 28 | (12) | ||
Cash at beginning of year | 164 | 153 | ||
Cash at end of period | 192 | 141 | 192 | 141 |
Income taxes paid (received) | 119 | 142 | ||
Reportable Legal Entities [Member] | TRV [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | 595 | 664 | 1,212 | 1,355 |
Net adjustments to reconcile net income to net cash provided by (used in) operating activities | 223 | 116 | ||
Net cash provided by operating activities | 1,435 | 1,471 | ||
Proceeds from maturities of fixed maturities | 2 | 5 | ||
Proceeds from sales of investments, fixed maturities | 2 | |||
Proceeds from sales of investments, equity securities | 121 | |||
Purchases of investments, fixed maturities | (2) | (9) | ||
Purchases of investments, equity securities | (122) | (2) | ||
Net (purchases) sales of short-term securities | (885) | (151) | ||
Securities transactions in course of settlement | 1 | (1) | ||
Net cash used in investing activities | (885) | (156) | ||
Treasury stock acquired - share repurchase authorization | (700) | (1,100) | ||
Treasury stock acquired - net employee share-based compensation | (61) | (59) | ||
Dividends paid to shareholders | (389) | (375) | ||
Payment of debt | (207) | (400) | ||
Issuance of debt | 689 | 491 | ||
Issuance of common stock - employee share options | 118 | 129 | ||
Net cash used in financing activities | (550) | (1,314) | ||
Net increase (decrease) in cash | 1 | |||
Cash at beginning of year | 2 | 2 | ||
Cash at end of period | 2 | 3 | 2 | 3 |
Income taxes paid (received) | (132) | (73) | ||
Interest paid | 154 | 156 | ||
Eliminations [Member] | ||||
Consolidating Statement of Cash Flows | ||||
Net income | $ (600) | $ (705) | (1,252) | (1,435) |
Net adjustments to reconcile net income to net cash provided by (used in) operating activities | (105) | 61 | ||
Net cash provided by operating activities | (1,357) | (1,374) | ||
Dividends paid to parent company | 1,357 | 1,374 | ||
Net cash used in financing activities | $ 1,357 | $ 1,374 |