Travelers 2003 Annual Report Download - page 86

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84
INDEPENDENT AUDITORS’ REPORT
The Board of Directors and Shareholders
Travelers Property Casualty Corp.:
We have audited the accompanying consolidated balance sheet of Travelers Property Casualty Corp. and subsidiaries
as of December 31, 2003 and 2002, and the related consolidated statements of income (loss), changes in shareholders’
equity and cash flows for each of the years in the three-year period ended December 31, 2003. These consolidated
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion
on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of Travelers Property Casualty Corp. and subsidiaries as of December 31, 2003 and 2002, and the
results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2003,
in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1 to the consolidated financial statements, the Company changed its method of accounting for
goodwill and other intangible assets in 2002 and its methods of accounting for derivative instruments and hedging
activities and for securitized financial assets in 2001.
Hartford, Connecticut
January 28, 2004