Travelers 2004 Annual Report Download - page 180

THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
12. SHAREHOLDERS’ EQUITY AND DIVIDEND AVAILABILITY, Continued
Connecticut Insurance Department for Connecticut-domiciled subsidiaries and the Minnesota Department of
Commerce for Minnesota-domiciled subsidiaries. The Company received $2.09 billion of dividends from its
insurance subsidiaries in 2004.
Statutory Net Income and Surplus
Statutory net income (loss) of the Company’s insurance subsidiaries was $1.58 billion, $1.95 billion, and
$(974) million for the years ended December 31, 2004, 2003 and 2002, respectively. Statutory capital and surplus
of the Company’s insurance subsidiaries was $15.11 billion and $8.44 billion at December 31, 2004 and 2003,
respectively.
Accumulated Other Changes in Equity from Nonowner Sources, Net of Tax
Changes in each component of Accumulated Other Changes in Equity from Nonowner Sources were as
follows:
(at and for the year ended December 31, in millions)
Net Unrealized
Gains (Losses)
on Investment
Securities
Minimum
Pension
Liability
Adjustment Other (1)
Accumulated
Other Changes
in Equity from
Nonowner
Sources
Balance, December 31, 2001 ............................. $ 256 $— $(15) $ 241
Net change in unrealized gains on investment securities, net of tax
and minority interest of $297 ........................... 575 — — 575
Less: Reclassification adjustment for net realized gains included
in net income, net of tax and minority interest of $(48) ....... (99) — — (99)
Change in minimum pension liability adjustment, net of tax of
$(37) .............................................. — (68) — (68)
Change in other, net of tax of $10 .......................... — — 8 8
Current period change ............................... 476 (68) 8 416
Balance, December 31, 2002 ............................. 732 (68) (7) 657
Net change in unrealized gains on investment securities, net of tax
and minority interest of $200 ........................... 349 — — 349
Less: Reclassification adjustment for net realized gains included
in net income, net of tax and minority interest of $(17) ....... (21) — — (21)
Change in minimum pension liability adjustment, net of tax of
$33................................................ — 62 — 62
Change in other, net of tax of $18 .......................... — — 39 39
Current period change ............................... 328 62 39 429
Balance, December 31, 2003 ............................. 1,060 (6) 32 1,086
Net change in unrealized gains on investment securities, net of tax
and minority interest of $(109) .......................... (220) — — (220)
Less: Reclassification adjustment for net realized losses included
in net income, net of tax and minority interest of $11 ........ 28 — — 28
Change in other, net of tax of $(4) ......................... — — 58 58
Current period change ............................... (192) — 58 (134)
Balance, December 31, 2004 ............................. $ 868 $ (6) $ 90 $ 952
(1) Includes foreign currency translation adjustments, changes in value of private equity securities and the
cumulative effect of the change in accounting for derivative instruments and hedging activities.
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