Travelers 2004 Annual Report Download - page 227

SCHEDULE III
THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
Supplementary Insurance Information
2002-2004
(in millions)
Segment
Deferred
Policy
Acquisition
Costs
Claims and
Claim
Adjustment
Expense
Reserves
Unearned
Premiums
Premium
Revenue
Net
Investment
Income (a)
Claims and
Claim
Adjustment
Expenses
Amortization
of Deferred
Acquisition
Costs
Other
Operating
Expenses (b)
Premiums
Written
2004 Commercial ............................... $ 607 $41,552 $ 4,606 $ 8,667 $1,708 $ 7,243 $1,289 $1,532 $ 8,213 Specialty ................................. 504 13,829 3,948 4,791 507 4,941 748 828 4,794 Personal .................................. 448 3,603 2,756 5,580 442 3,255 941 536 5,929 Total—Reportable Segments ................. 1,559 58,984 11,310 19,038 2,657 15,439 2,978 2,896 18,936
Other .................................... — 86 — — 6 — — 493 —
Consolidated .............................. $1,559 $59,070 $11,310 $19,038 $2,663 $15,439 $2,978 $3,389 $18,936 2003 Commercial ............................... $ 470 $28,746 $ 3,958 $ 6,552 $1,324 $ 5,170 $ 971 $ 990 $ 6,862 Specialty ................................. 119 2,428 714 1,171 183 613 213 222 1,258 Personal .................................. 376 3,300 2,439 4,822 361 3,335 800 420 5,081 Total—Reportable Segments ................. 965 34,474 7,111 12,545 1,868 9,118 1,984 1,632 13,201 Other .................................... — 99 — — 1 — — 176 — Consolidated .............................. $ 965 $34,573 $ 7,111 $12,545 $1,869 $ 9,118 $1,984 $1,808 $13,201 2002 Commercial ............................... $ 437 $28,092 $ 3,664 $ 5,831 $1,307 $ 7,400 $ 889 $ 835 $ 6,330 Specialty ................................. 104 2,502 629 970 188 532 184 199 1,040 Personal .................................. 332 3,034 2,167 4,354 385 3,207 737 388 4,575 Total—Reportable Segments ................. 873 33,628 6,460 11,155 1,880 11,139 1,810 1,422 11,945 Other .................................... — 108 — — 1 — — 159 — Consolidated .............................. $ 873 $33,736 $ 6,460 $11,155 $1,881 $11,139 $1,810 $1,581 $11,945 (a) Beginning in the second quarter of 2004, the Company developed a methodology to allocate net investment income and invested assets to the identified segments. See
note 1 to the consolidated financial statements for further discussion of this methodology. In 2002 and 2003, net investment income for each segment was accounted for separately, except for the portion earned on the investment of shareholders’ equity, which was allocated based on assigned capital.
(b) Expense allocations are determined in accordance with prescribed statutory accounting practices. These practices make a reasonable allocation of all expenses to those
product lines with which they are associated.
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