18. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
The following consolidating financial statements of the Company have been prepared pursuant to Rule 3-10 of Regulation S-X. These consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the consolidated financial statements. The Travelers Companies, Inc. has fully and unconditionally guaranteed certain debt obligations of TPC, which totaled $700 million at December 31, 2013.
Prior to the merger of TPC and SPC in 2004, TPC fully and unconditionally guaranteed the payment of all principal, premiums, if any, and interest on certain debt obligations of its wholly-owned subsidiary, Travelers Insurance Group Holdings, Inc. (TIGHI). Concurrent with the merger, The Travelers Companies, Inc. fully and unconditionally assumed such guarantee obligations of TPC. TPC is deemed to have no assets or operations independent of TIGHI. Consolidating financial information for TIGHI has not been presented herein because such financial information would be substantially the same as the financial information provided for TPC.
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
For the year ended December 31, 2013
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(2) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Revenues |
||||||||||||||||
|
Premiums |
$ | 15,262 | $ | 7,375 | $ | — | $ | — | $ | 22,637 | ||||||
|
Net investment income |
1,830 | 879 | 7 | — | 2,716 | |||||||||||
|
Fee income |
393 | 2 | — | — | 395 | |||||||||||
|
Net realized investment gains(1) |
126 | 38 | 2 | — | 166 | |||||||||||
|
Other revenues |
225 | 52 | — | — | 277 | |||||||||||
|
Total revenues |
17,836 | 8,346 | 9 | — | 26,191 | |||||||||||
|
Claims and expenses |
||||||||||||||||
|
Claims and claim adjustment expenses |
8,817 | 4,490 | — | — | 13,307 | |||||||||||
|
Amortization of deferred acquisition costs |
2,571 | 1,250 | — | — | 3,821 | |||||||||||
|
General and administrative expenses |
2,570 | 1,174 | 13 | — | 3,757 | |||||||||||
|
Interest expense |
53 | — | 308 | — | 361 | |||||||||||
|
Total claims and expenses |
14,011 | 6,914 | 321 | — | 21,246 | |||||||||||
|
Income (loss) before income taxes |
3,825 | 1,432 | (312 | ) | — | 4,945 | ||||||||||
|
Income tax expense (benefit) |
1,054 | 388 | (170 | ) | — | 1,272 | ||||||||||
|
Net income of subsidiaries |
— | — | 3,815 | (3,815 | ) | — | ||||||||||
|
Net income |
$ | 2,771 | $ | 1,044 | $ | 3,673 | $ | (3,815 | ) | $ | 3,673 | |||||
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(2) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Total OTTI gains (losses) |
$ | (8 | ) | $ | (2 | ) | $ | — | $ | — | $ | (10 | ) | |||
|
OTTI losses recognized in net realized investment gains |
$ | (10 | ) | $ | (5 | ) | $ | — | $ | — | $ | (15 | ) | |||
|
OTTI gains recognized in OCI |
$ | 2 | $ | 3 | $ | — | $ | — | $ | 5 | ||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
For the year ended December 31, 2012
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(2) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Revenues |
||||||||||||||||
|
Premiums |
$ | 15,158 | $ | 7,199 | $ | — | $ | — | $ | 22,357 | ||||||
|
Net investment income |
1,912 | 968 | 9 | — | 2,889 | |||||||||||
|
Fee income |
321 | 2 | — | — | 323 | |||||||||||
|
Net realized investment gains(1) |
29 | 22 | — | — | 51 | |||||||||||
|
Other revenues |
87 | 34 | (1 | ) | — | 120 | ||||||||||
|
Total revenues |
17,507 | 8,225 | 8 | — | 25,740 | |||||||||||
|
Claims and expenses |
||||||||||||||||
|
Claims and claim adjustment expenses |
9,908 | 4,768 | — | — | 14,676 | |||||||||||
|
Amortization of deferred acquisition costs |
2,636 | 1,274 | — | — | 3,910 | |||||||||||
|
General and administrative expenses |
2,445 | 1,161 | 4 | — | 3,610 | |||||||||||
|
Interest expense |
73 | — | 305 | — | 378 | |||||||||||
|
Total claims and expenses |
15,062 | 7,203 | 309 | — | 22,574 | |||||||||||
|
Income (loss) before income taxes |
2,445 | 1,022 | (301 | ) | — | 3,166 | ||||||||||
|
Income tax expense (benefit) |
588 | 224 | (119 | ) | — | 693 | ||||||||||
|
Net income of subsidiaries |
— | — | 2,655 | (2,655 | ) | — | ||||||||||
|
Net income |
$ | 1,857 | $ | 798 | $ | 2,473 | $ | (2,655 | ) | $ | 2,473 | |||||
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(2) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Total OTTI gains |
$ | 18 | $ | 9 | $ | — | $ | — | $ | 27 | ||||||
|
OTTI losses recognized in net realized investment gains |
$ | (9 | ) | $ | (6 | ) | $ | — | $ | — | $ | (15 | ) | |||
|
OTTI gains recognized in OCI |
$ | 27 | $ | 15 | $ | — | $ | — | $ | 42 | ||||||
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
For the year ended December 31, 2011
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(2) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Revenues |
||||||||||||||||
|
Premiums |
$ | 14,903 | $ | 7,187 | $ | — | $ | — | $ | 22,090 | ||||||
|
Net investment income |
1,933 | 938 | 8 | — | 2,879 | |||||||||||
|
Fee income |
294 | 2 | — | — | 296 | |||||||||||
|
Net realized investment gains (losses)(1) |
10 | 50 | (5 | ) | — | 55 | ||||||||||
|
Other revenues |
103 | 23 | — | — | 126 | |||||||||||
|
Total revenues |
17,243 | 8,200 | 3 | — | 25,446 | |||||||||||
|
Claims and expenses |
||||||||||||||||
|
Claims and claim adjustment expenses |
10,906 | 5,370 | — | — | 16,276 | |||||||||||
|
Amortization of deferred acquisition costs |
2,594 | 1,282 | — | — | 3,876 | |||||||||||
|
General and administrative expenses |
2,377 | 1,152 | 27 | — | 3,556 | |||||||||||
|
Interest expense |
73 | — | 313 | — | 386 | |||||||||||
|
Total claims and expenses |
15,950 | 7,804 | 340 | — | 24,094 | |||||||||||
|
Income (loss) before income taxes |
1,293 | 396 | (337 | ) | — | 1,352 | ||||||||||
|
Income tax expense (benefit) |
111 | 14 | (199 | ) | — | (74 | ) | |||||||||
|
Net income of subsidiaries |
— | — | 1,564 | (1,564 | ) | — | ||||||||||
|
Net income |
$ | 1,182 | $ | 382 | $ | 1,426 | $ | (1,564 | ) | $ | 1,426 | |||||
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(2) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Total OTTI gains |
$ | 15 | $ | 15 | $ | — | $ | — | $ | 30 | ||||||
|
OTTI losses recognized in net realized investment gains (losses) |
$ | (15 | ) | $ | (10 | ) | $ | — | $ | — | $ | (25 | ) | |||
|
OTTI gains recognized in OCI |
$ | 30 | $ | 25 | $ | — | $ | — | $ | 55 | ||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
For the year ended December 31, 2013
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Net income |
$ | 2,771 | $ | 1,044 | $ | 3,673 | $ | (3,815 | ) | $ | 3,673 | |||||
|
Other comprehensive income (loss): |
||||||||||||||||
|
Changes in net unrealized gains on investment securities: |
||||||||||||||||
|
Having no credit losses recognized in the consolidated statement of income |
(1,982 | ) | (771 | ) | 19 | — | (2,734 | ) | ||||||||
|
Having credit losses recognized in the consolidated statement of income |
4 | (1 | ) | — | — | 3 | ||||||||||
|
Net changes in benefit plan assets and obligations |
12 | 19 | 616 | — | 647 | |||||||||||
|
Net changes in unrealized foreign currency translation |
(92 | ) | (20 | ) | — | — | (112 | ) | ||||||||
|
Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries |
(2,058 | ) | (773 | ) | 635 | — | (2,196 | ) | ||||||||
|
Income tax expense (benefit) |
(719 | ) | (273 | ) | 222 | — | (770 | ) | ||||||||
|
Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries |
(1,339 | ) | (500 | ) | 413 | — | (1,426 | ) | ||||||||
|
Other comprehensive loss of subsidiaries |
— | — | (1,839 | ) | 1,839 | — | ||||||||||
|
Other comprehensive loss |
(1,339 | ) | (500 | ) | (1,426 | ) | 1,839 | (1,426 | ) | |||||||
|
Comprehensive income |
$ | 1,432 | $ | 544 | $ | 2,247 | $ | (1,976 | ) | $ | 2,247 | |||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
For the year ended December 31, 2012
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Net income |
$ | 1,857 | $ | 798 | $ | 2,473 | $ | (2,655 | ) | $ | 2,473 | |||||
|
Other comprehensive income: |
||||||||||||||||
|
Changes in net unrealized gains on investment securities: |
||||||||||||||||
|
Having no credit losses recognized in the consolidated statement of income |
248 | 23 | 10 | — | 281 | |||||||||||
|
Having credit losses recognized in the consolidated statement of income |
57 | 24 | — | — | 81 | |||||||||||
|
Net changes in benefit plan assets and obligations |
(6 | ) | (5 | ) | (58 | ) | — | (69 | ) | |||||||
|
Net changes in unrealized foreign currency translation |
(19 | ) | 62 | — | — | 43 | ||||||||||
|
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries |
280 | 104 | (48 | ) | — | 336 | ||||||||||
|
Income tax expense (benefit) |
101 | 21 | (17 | ) | — | 105 | ||||||||||
|
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries |
179 | 83 | (31 | ) | — | 231 | ||||||||||
|
Other comprehensive income of subsidiaries |
— | — | 262 | (262 | ) | — | ||||||||||
|
Other comprehensive income |
179 | 83 | 231 | (262 | ) | 231 | ||||||||||
|
Comprehensive income |
$ | 2,036 | $ | 881 | $ | 2,704 | $ | (2,917 | ) | $ | 2,704 | |||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
For the year ended December 31, 2011
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Net income |
$ | 1,182 | $ | 382 | $ | 1,426 | $ | (1,564 | ) | $ | 1,426 | |||||
|
Other comprehensive income: |
||||||||||||||||
|
Changes in net unrealized gains on investment securities: |
||||||||||||||||
|
Having no credit losses recognized in the consolidated statement of income |
1,100 | 472 | (2 | ) | — | 1,570 | ||||||||||
|
Having credit losses recognized in the consolidated statement of income |
(10 | ) | 14 | — | — | 4 | ||||||||||
|
Net changes in benefit plan assets and obligations |
(5 | ) | 1 | (303 | ) | — | (307 | ) | ||||||||
|
Net changes in unrealized foreign currency translation |
(76 | ) | (14 | ) | — | — | (90 | ) | ||||||||
|
Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries |
1,009 | 473 | (305 | ) | — | 1,177 | ||||||||||
|
Income tax expense (benefit) |
356 | 177 | (106 | ) | — | 427 | ||||||||||
|
Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries |
653 | 296 | (199 | ) | — | 750 | ||||||||||
|
Other comprehensive income of subsidiaries |
— | — | 949 | (949 | ) | — | ||||||||||
|
Other comprehensive income |
653 | 296 | 750 | (949 | ) | 750 | ||||||||||
|
Comprehensive income |
$ | 1,835 | $ | 678 | $ | 2,176 | $ | (2,513 | ) | $ | 2,176 | |||||
CONSOLIDATING BALANCE SHEET (Unaudited)
At December 31, 2013
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Assets |
||||||||||||||||
|
Fixed maturities, available for sale, at fair value (amortized cost $62,196) |
$ | 43,720 | $ | 20,199 | $ | 37 | $ | — | $ | 63,956 | ||||||
|
Equity securities, available for sale, at fair value (cost $686) |
329 | 484 | 130 | — | 943 | |||||||||||
|
Real estate investments |
33 | 905 | — | — | 938 | |||||||||||
|
Short-term securities |
1,867 | 492 | 1,523 | — | 3,882 | |||||||||||
|
Other investments |
2,450 | 990 | 1 | — | 3,441 | |||||||||||
|
Total investments |
48,399 | 23,070 | 1,691 | — | 73,160 | |||||||||||
|
Cash |
137 | 154 | 3 | — | 294 | |||||||||||
|
Investment income accrued |
499 | 231 | 4 | — | 734 | |||||||||||
|
Premiums receivable |
4,124 | 2,001 | — | — | 6,125 | |||||||||||
|
Reinsurance recoverables |
6,292 | 3,421 | — | — | 9,713 | |||||||||||
|
Ceded unearned premiums |
712 | 89 | — | — | 801 | |||||||||||
|
Deferred acquisition costs |
1,570 | 234 | — | — | 1,804 | |||||||||||
|
Deferred taxes |
279 | 86 | (62 | ) | — | 303 | ||||||||||
|
Contractholder receivables |
3,179 | 1,149 | — | — | 4,328 | |||||||||||
|
Goodwill |
2,619 | 1,015 | — | — | 3,634 | |||||||||||
|
Other intangible assets |
250 | 101 | — | — | 351 | |||||||||||
|
Investment in subsidiaries |
— | — | 28,616 | (28,616 | ) | — | ||||||||||
|
Other assets |
2,010 | 357 | 198 | — | 2,565 | |||||||||||
|
Total assets |
$ | 70,070 | $ | 31,908 | $ | 30,450 | $ | (28,616 | ) | $ | 103,812 | |||||
|
Liabilities |
||||||||||||||||
|
Claims and claim adjustment expense reserves |
$ | 33,506 | $ | 17,389 | $ | — | $ | — | $ | 50,895 | ||||||
|
Unearned premium reserves |
8,188 | 3,662 | — | — | 11,850 | |||||||||||
|
Contractholder payables |
3,179 | 1,149 | — | — | 4,328 | |||||||||||
|
Payables for reinsurance premiums |
127 | 171 | — | — | 298 | |||||||||||
|
Debt |
692 | — | 5,654 | — | 6,346 | |||||||||||
|
Other liabilities |
4,109 | 1,180 | 10 | — | 5,299 | |||||||||||
|
Total liabilities |
49,801 | 23,551 | 5,664 | — | 79,016 | |||||||||||
|
Shareholders' equity |
||||||||||||||||
|
Common stock (1,750.0 shares authorized; 353.5 shares issued and outstanding) |
— | 390 | 21,500 | (390 | ) | 21,500 | ||||||||||
|
Additional paid-in capital |
11,634 | 6,502 | — | (18,136 | ) | — | ||||||||||
|
Retained earnings |
7,868 | 1,042 | 24,281 | (8,900 | ) | 24,291 | ||||||||||
|
Accumulated other comprehensive income |
767 | 423 | 810 | (1,190 | ) | 810 | ||||||||||
|
Treasury stock, at cost (401.5 shares) |
— | — | (21,805 | ) | — | (21,805 | ) | |||||||||
|
Total shareholders' equity |
20,269 | 8,357 | 24,786 | (28,616 | ) | 24,796 | ||||||||||
|
Total liabilities and shareholders' equity |
$ | 70,070 | $ | 31,908 | $ | 30,450 | $ | (28,616 | ) | $ | 103,812 | |||||
CONSOLIDATING BALANCE SHEET (Unaudited)
At December 31, 2012
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Assets |
||||||||||||||||
|
Fixed maturities, available for sale, at fair value (amortized cost $60,829) |
$ | 44,336 | $ | 21,019 | $ | 38 | $ | — | $ | 65,393 | ||||||
|
Equity securities, available for sale, at fair value (cost $462) |
153 | 386 | 106 | — | 645 | |||||||||||
|
Real estate investments |
33 | 850 | — | — | 883 | |||||||||||
|
Short-term securities |
1,187 | 338 | 1,958 | — | 3,483 | |||||||||||
|
Other investments |
2,443 | 990 | 1 | — | 3,434 | |||||||||||
|
Total investments |
48,152 | 23,583 | 2,103 | — | 73,838 | |||||||||||
|
Cash |
177 | 151 | 2 | — | 330 | |||||||||||
|
Investment income accrued |
507 | 240 | 5 | — | 752 | |||||||||||
|
Premiums receivable |
3,944 | 1,928 | — | — | 5,872 | |||||||||||
|
Reinsurance recoverables |
7,112 | 3,600 | — | — | 10,712 | |||||||||||
|
Ceded unearned premiums |
698 | 158 | — | — | 856 | |||||||||||
|
Deferred acquisition costs |
1,560 | 232 | — | — | 1,792 | |||||||||||
|
Contractholder receivables |
3,540 | 1,266 | — | — | 4,806 | |||||||||||
|
Goodwill |
2,411 | 954 | — | — | 3,365 | |||||||||||
|
Other intangible assets |
268 | 113 | — | — | 381 | |||||||||||
|
Investment in subsidiaries |
— | — | 28,562 | (28,562 | ) | — | ||||||||||
|
Other assets |
1,930 | 286 | 18 | — | 2,234 | |||||||||||
|
Total assets |
$ | 70,299 | $ | 32,511 | $ | 30,690 | $ | (28,562 | ) | $ | 104,938 | |||||
|
Liabilities |
||||||||||||||||
|
Claims and claim adjustment expense reserves |
$ | 33,598 | $ | 17,324 | $ | — | $ | — | $ | 50,922 | ||||||
|
Unearned premium reserves |
7,751 | 3,490 | — | — | 11,241 | |||||||||||
|
Contractholder payables |
3,540 | 1,266 | — | — | 4,806 | |||||||||||
|
Payables for reinsurance premiums |
151 | 195 | — | — | 346 | |||||||||||
|
Deferred taxes |
316 | 123 | (101 | ) | — | 338 | ||||||||||
|
Debt |
1,191 | — | 5,159 | — | 6,350 | |||||||||||
|
Other liabilities |
4,107 | 1,186 | 237 | — | 5,530 | |||||||||||
|
Total liabilities |
50,654 | 23,584 | 5,295 | — | 79,533 | |||||||||||
|
Shareholders' equity |
||||||||||||||||
|
Common stock (1,750.0 shares authorized; 377.4 shares issued and outstanding) |
— | 390 | 21,161 | (390 | ) | 21,161 | ||||||||||
|
Additional paid-in capital |
11,135 | 6,501 | — | (17,636 | ) | — | ||||||||||
|
Retained earnings |
6,404 | 1,113 | 21,342 | (7,507 | ) | 21,352 | ||||||||||
|
Accumulated other comprehensive income |
2,106 | 923 | 2,236 | (3,029 | ) | 2,236 | ||||||||||
|
Treasury stock, at cost (372.3 shares) |
— | — | (19,344 | ) | — | (19,344 | ) | |||||||||
|
Total shareholders' equity |
19,645 | 8,927 | 25,395 | (28,562 | ) | 25,405 | ||||||||||
|
Total liabilities and shareholders' equity |
$ | 70,299 | $ | 32,511 | $ | 30,690 | $ | (28,562 | ) | $ | 104,938 | |||||
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the twelve months ended December 31, 2013
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Cash flows from operating activities |
||||||||||||||||
|
Net income |
$ | 2,771 | $ | 1,044 | $ | 3,673 | $ | (3,815 | ) | $ | 3,673 | |||||
|
Net adjustments to reconcile net income to net cash provided by operating activities |
(497 | ) | 413 | (1,665 | ) | 1,892 | 143 | |||||||||
|
Net cash provided by operating activities |
2,274 | 1,457 | 2,008 | (1,923 | ) | 3,816 | ||||||||||
|
Cash flows from investing activities |
||||||||||||||||
|
Proceeds from maturities of fixed maturities |
5,484 | 2,419 | 1 | — | 7,904 | |||||||||||
|
Proceeds from sales of investments: |
||||||||||||||||
|
Fixed maturities |
989 | 641 | 5 | — | 1,635 | |||||||||||
|
Equity securities |
45 | 41 | — | — | 86 | |||||||||||
|
Real estate investments |
— | 18 | — | — | 18 | |||||||||||
|
Other investments |
489 | 273 | — | — | 762 | |||||||||||
|
Purchases of investments: |
||||||||||||||||
|
Fixed maturities |
(6,260 | ) | (3,201 | ) | (6 | ) | — | (9,467 | ) | |||||||
|
Equity securities |
(21 | ) | (34 | ) | (2 | ) | — | (57 | ) | |||||||
|
Real estate investments |
(1 | ) | (106 | ) | — | — | (107 | ) | ||||||||
|
Other investments |
(320 | ) | (126 | ) | — | — | (446 | ) | ||||||||
|
Net sales (purchases) of short-term securities |
(272 | ) | (52 | ) | 435 | — | 111 | |||||||||
|
Securities transactions in course of settlement |
(2 | ) | 24 | (1 | ) | — | 21 | |||||||||
|
Acquisition, net of cash acquired |
(773 | ) | (224 | ) | — | (997 | ) | |||||||||
|
Other |
(365 | ) | (8 | ) | — | — | (373 | ) | ||||||||
|
Net cash provided by (used in) investing activities |
(1,007 | ) | (335 | ) | 432 | — | (910 | ) | ||||||||
|
Cash flows from financing activities |
||||||||||||||||
|
Payment of debt |
(500 | ) | — | — | — | (500 | ) | |||||||||
|
Issuance of debt |
— | — | 494 | — | 494 | |||||||||||
|
Dividends paid to shareholders |
— | — | (729 | ) | — | (729 | ) | |||||||||
|
Issuance of common stock—employee share options |
— | — | 206 | — | 206 | |||||||||||
|
Treasury stock acquired—share repurchase authorization |
— | — | (2,400 | ) | — | (2,400 | ) | |||||||||
|
Treasury stock acquired—net employee share-based compensation |
— | — | (61 | ) | — | (61 | ) | |||||||||
|
Excess tax benefits from share-based payment arrangements |
— | — | 51 | — | 51 | |||||||||||
|
Dividends paid to parent company |
(1,307 | ) | (1,116 | ) | — | 2,423 | — | |||||||||
|
Capital contributions, loans and other transactions between subsidiaries |
500 | — | — | (500 | ) | — | ||||||||||
|
Net cash used in financing activities |
(1,307 | ) | (1,116 | ) | (2,439 | ) | 1,923 | (2,939 | ) | |||||||
|
Effect of exchange rate changes on cash |
— | (3 | ) | — | — | (3 | ) | |||||||||
|
Net increase (decrease) in cash |
(40 | ) | 3 | 1 | — | (36 | ) | |||||||||
|
Cash at beginning of year |
177 | 151 | 2 | — | 330 | |||||||||||
|
Cash at end of year |
$ | 137 | $ | 154 | $ | 3 | $ | — | $ | 294 | ||||||
|
Supplemental disclosure of cash flow information |
||||||||||||||||
|
Income taxes paid (received) |
$ | 942 | $ | 325 | $ | (210 | ) | $ | — | $ | 1,057 | |||||
|
Interest paid |
$ | 60 | $ | — | $ | 295 | $ | — | $ | 355 | ||||||
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the twelve months ended December 31, 2012
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Cash flows from operating activities |
||||||||||||||||
|
Net income |
$ | 1,857 | $ | 798 | $ | 2,473 | $ | (2,655 | ) | $ | 2,473 | |||||
|
Net adjustments to reconcile net income to net cash provided by operating activities |
715 | 7 | (700 | ) | 735 | 757 | ||||||||||
|
Net cash provided by operating activities |
2,572 | 805 | 1,773 | (1,920 | ) | 3,230 | ||||||||||
|
Cash flows from investing activities |
||||||||||||||||
|
Proceeds from maturities of fixed maturities |
5,905 | 2,462 | 2 | — | 8,369 | |||||||||||
|
Proceeds from sales of investments: |
||||||||||||||||
|
Fixed maturities |
730 | 355 | 2 | — | 1,087 | |||||||||||
|
Equity securities |
21 | 16 | — | — | 37 | |||||||||||
|
Real estate investments |
— | 53 | — | — | 53 | |||||||||||
|
Other investments |
555 | 280 | — | — | 835 | |||||||||||
|
Purchases of investments: |
||||||||||||||||
|
Fixed maturities |
(7,361 | ) | (3,077 | ) | (9 | ) | — | (10,447 | ) | |||||||
|
Equity securities |
(18 | ) | (28 | ) | (2 | ) | — | (48 | ) | |||||||
|
Real estate investments |
— | (95 | ) | — | — | (95 | ) | |||||||||
|
Other investments |
(371 | ) | (163 | ) | — | — | (534 | ) | ||||||||
|
Net sales (purchases) of short-term securities |
(308 | ) | 44 | 381 | — | 117 | ||||||||||
|
Securities transactions in course of settlement |
14 | (36 | ) | (1 | ) | — | (23 | ) | ||||||||
|
Other |
(323 | ) | — | — | — | (323 | ) | |||||||||
|
Net cash provided by (used in) investing activities |
(1,156 | ) | (189 | ) | 373 | — | (972 | ) | ||||||||
|
Cash flows from financing activities |
||||||||||||||||
|
Payment of debt |
— | — | (258 | ) | — | (258 | ) | |||||||||
|
Dividends paid to shareholders |
— | — | (694 | ) | — | (694 | ) | |||||||||
|
Issuance of common stock—employee share options |
— | — | 295 | — | 295 | |||||||||||
|
Treasury stock acquired—share repurchase authorization |
— | — | (1,474 | ) | — | (1,474 | ) | |||||||||
|
Treasury stock acquired—net employee share-based compensation |
— | — | (53 | ) | — | (53 | ) | |||||||||
|
Excess tax benefits from share-based payment arrangements |
— | — | 38 | — | 38 | |||||||||||
|
Dividends paid to parent company |
(1,353 | ) | (567 | ) | — | 1,920 | — | |||||||||
|
Net cash used in financing activities |
(1,353 | ) | (567 | ) | (2,146 | ) | 1,920 | (2,146 | ) | |||||||
|
Effect of exchange rate changes on cash |
— | 4 | — | — | 4 | |||||||||||
|
Net increase in cash |
63 | 53 | — | — | 116 | |||||||||||
|
Cash at beginning of year |
114 | 98 | 2 | — | 214 | |||||||||||
|
Cash at end of year |
$ | 177 | $ | 151 | $ | 2 | $ | — | $ | 330 | ||||||
|
Supplemental disclosure of cash flow information |
||||||||||||||||
|
Income taxes paid (received) |
$ | 287 | $ | 108 | $ | (207 | ) | $ | — | $ | 188 | |||||
|
Interest paid |
$ | 73 | $ | — | $ | 302 | $ | — | $ | 375 | ||||||
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
For the twelve months ended December 31, 2011
|
(in millions) |
TPC | Other Subsidiaries |
Travelers(1) | Eliminations | Consolidated | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Cash flows from operating activities |
||||||||||||||||
|
Net income |
$ | 1,182 | $ | 382 | $ | 1,426 | $ | (1,564 | ) | $ | 1,426 | |||||
|
Net adjustments to reconcile net income to net cash provided by operating activities |
736 | 98 | 635 | (726 | ) | 743 | ||||||||||
|
Net cash provided by operating activities |
1,918 | 480 | 2,061 | (2,290 | ) | 2,169 | ||||||||||
|
Cash flows from investing activities |
||||||||||||||||
|
Proceeds from maturities of fixed maturities |
4,902 | 2,502 | — | — | 7,404 | |||||||||||
|
Proceeds from sales of investments: |
||||||||||||||||
|
Fixed maturities |
720 | 440 | 1 | — | 1,161 | |||||||||||
|
Equity securities |
82 | 53 | — | — | 135 | |||||||||||
|
Real estate investments |
1 | — | — | — | 1 | |||||||||||
|
Other investments |
343 | 251 | — | — | 594 | |||||||||||
|
Purchases of investments: |
||||||||||||||||
|
Fixed maturities |
(5,714 | ) | (2,978 | ) | (12 | ) | — | (8,704 | ) | |||||||
|
Equity securities |
(30 | ) | (71 | ) | (30 | ) | — | (131 | ) | |||||||
|
Real estate investments |
(24 | ) | (42 | ) | — | — | (66 | ) | ||||||||
|
Other investments |
(711 | ) | (178 | ) | — | — | (889 | ) | ||||||||
|
Net sales of short-term securities |
717 | 25 | 1,276 | — | 2,018 | |||||||||||
|
Securities transactions in course of settlement |
(46 | ) | 46 | — | — | — | ||||||||||
|
Other |
(351 | ) | (20 | ) | — | — | (371 | ) | ||||||||
|
Net cash provided by (used in) investing activities |
(111 | ) | 28 | 1,235 | — | 1,152 | ||||||||||
|
Cash flows from financing activities |
||||||||||||||||
|
Payment of debt |
— | (8 | ) | — | — | (8 | ) | |||||||||
|
Dividends paid to shareholders |
— | — | (665 | ) | — | (665 | ) | |||||||||
|
Issuance of common stock—employee share options |
— | — | 314 | — | 314 | |||||||||||
|
Treasury stock acquired—share repurchase authorization |
— | — | (2,919 | ) | — | (2,919 | ) | |||||||||
|
Treasury stock acquired—net employee share-based compensation |
— | — | (46 | ) | — | (46 | ) | |||||||||
|
Excess tax benefits from share-based payment arrangements |
— | — | 18 | — | 18 | |||||||||||
|
Dividends paid to parent company |
(1,779 | ) | (521 | ) | — | 2,300 | — | |||||||||
|
Capital contributions, loans and other transactions between subsidiaries |
— | 10 | — | (10 | ) | — | ||||||||||
|
Net cash used in financing activities |
(1,779 | ) | (519 | ) | (3,298 | ) | 2,290 | (3,306 | ) | |||||||
|
Effect of exchange rate changes on cash |
— | (1 | ) | — | — | (1 | ) | |||||||||
|
Net increase (decrease) in cash |
28 | (12 | ) | (2 | ) | — | 14 | |||||||||
|
Cash at beginning of year |
86 | 110 | 4 | — | 200 | |||||||||||
|
Cash at end of year |
$ | 114 | $ | 98 | $ | 2 | $ | — | $ | 214 | ||||||
|
Supplemental disclosure of cash flow information |
||||||||||||||||
|
Income taxes paid (received) |
$ | 206 | $ | 109 | $ | (97 | ) | $ | — | $ | 218 | |||||
|
Interest paid |
$ | 73 | $ | — | $ | 309 | $ | — | $ | 382 | ||||||