Travelers 2003 Annual Report Download - page 83

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81
(1) On October 1, 2001, Travelers purchased The Northland Company and its subsidiaries (Northland) from Citigroup. On
October 3, 2001, Citigroup contributed the capital stock of Associates Insurance Company (Associates) to Travelers.
During April 2000, TPC completed a cash tender offer and acquired all of Travelers Insurance Group Holdings Inc.’s
(TIGHI) outstanding shares of common stock that were not already owned by TPC for approximately $2.413 billion
financed by a loan from Citigroup. On May 31, 2000, Travelers acquired the surety business of Reliance Group
Holdings, Inc. (Reliance Surety). Includes amounts related to Northland, Associates, the remainder of TIGHI and
Reliance Surety from their dates of acquisition.
(2) Cumulative effect of changes in accounting principles, net of tax (1) for the year ended December 31, 2002 consists of a
loss of $242.6 million as a result of a change in accounting for goodwill and other intangible assets; (2) for the year ended
December 31, 2001 includes a gain of $4.5 million as a result of a change in accounting for derivative instruments and
hedging activities and a loss of $1.3 million as a result of a change in accounting for securitized financial assets; and (3)
for the year ended December 31, 1999 includes a loss of $135.0 million as a result of a change in accounting for
insurance-related assessments and a gain of $22.9 million as a result of a change in accounting for insurance and
reinsurance contracts that do not transfer insurance risk.
(3) Total liabilities include minority interest liabilities of $104.6 million, $87.0 million and $1.368 billion at December 31,
2003, 2002 and 1999, respectively.
(4) In March 2002, Travelers issued common stock through its Initial Public Offering (IPO). See note 1 to the Consolidated
Financial Statements.
(5) Dividends per common share reflect the recapitalization effected as part of Travelers corporate reorganization. See note 1
to the Consolidated Financial Statements. During 2002, Travelers paid dividends of $5.095 billion in the form of a note
payable and $158.0 million in cash to Citigroup, its then sole shareholder. During 2001, Travelers paid dividends of
$526.0 million to Citigroup, its then sole shareholder.