Travelers 2004 Annual Report Download - page 205

THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
20. NONCASH INVESTING AND FINANCING ACTIVITIES
There were no significant noncash financing or investing activities for the years ended December 31, 2004
and 2003 other than the acquisition of SPC (See note 2). In 2002, TPC paid dividends of $5.10 billion to
Citigroup in the form of notes payable. These notes were all repaid during 2002.
21. CONSOLIDATING FINANCIAL STATEMENTS OF THE ST. PAUL TRAVELERS COMPANIES,
INC. AND SUBSIDIARIES
The following consolidating financial statements of the Company and its subsidiaries 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
St. Paul Travelers Companies, Inc. has fully and unconditionally guaranteed certain debt obligations of TPC, its
wholly-owned subsidiary, which totaled $2.64 billion as of December 31, 2004.
Prior to the merger, TPC fully and unconditionally guaranteed the payment of all principal, premiums, if
any, and interest on certain debt obligations of its wholly-owned subsidiary TIGHI. The St. Paul Travelers
Companies, Inc. has fully and unconditionally guaranteed 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, 2004
(in millions) TPC
Other
Subsidiaries
St. Paul
Travelers (1) Eliminations Consolidated
Revenues
Premiums .................................. $13,682 $ 5,356 $ — $ — $19,038
Net investment income ....................... 2,063 594 6 — 2,663
Fee income ................................. 682 24 — — 706
Asset management ........................... — 390 — — 390
Net realized investment gains (losses) ........... 175 (139) (75) — (39)
Other revenues .............................. 130 53 3 (10) 176
Total revenues ......................... 16,732 6,278 (66) (10) 22,934
Claims and expenses
Claims and claim adjustment expenses ........... 9,266 6,173 — — 15,439
Amortization of deferred acquisition costs ........ 2,188 790 — — 2,978
General and administrative expenses ............ 1,955 1,142 52 (4) 3,145
Interest expense ............................. 143 8 99 (6) 244
Total claims and expenses ................ 13,552 8,113 151 (10) 21,806
Income (loss) before income taxes and minority
interest ................................. 3,180 (1,835) (217) — 1,128
Income tax expense (benefit) ................... 856 (646) (72) — 138
Equity in earnings of subsidiaries, net of tax ...... — (1) 1,100 (1,099) —
Minority interest, net of tax .................... 10 25 — — 35
Net income (loss) ........................... $ 2,314 $(1,215) $ 955 $(1,099) $ 955
(1) The St. Paul Travelers Companies, Inc., excluding its subsidiaries.
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