Travelers 2005 Annual Report Download - page 195

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
183
12. SHAREHOLDERS’ EQUITY AND DIVIDEND AVAILABILITY (Continued)
Statutory Net Income and Surplus
Statutory net income of the Company’s insurance subsidiaries was $2.92 billion, $1.58 billion, and
$1.95 billion for the years ended December 31, 2005, 2004 and 2003, respectively. Statutory capital and
surplus of the Company’s insurance subsidiaries was $17.81 billion and $15.11 billion at December 31, 2005
and 2004, 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 Equityfrom
Nonowner
Sources
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.......................... 3286239429
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 $(85)............. (168)——(168)
Less: Reclassification adjustment for net realized gains
included in net income, net of tax and minority
interest of $(13). ................................. (24) — — (24)
Change in other, net of tax of $(4) .................... ——58 58
Current period change.......................... (192)—58 (134)
Balance, December 31, 2004 ......................... 868 (6) 90 952
Net change in unrealized gains on investment securities,
net of tax and minority interest of $(298)............ (515) — — (515)
Less: Reclassification adjustment for net realized gains
included innet income, netof tax of$(13) ........... (26) — — (26)
Change in minimum pension liability adjustment, net of
tax of $(4) ....................................... — (8) — (8)
Change in other, net of tax of $3 ..................... — — (52 ) (52)
Current period change.......................... (541) (8) (52 ) (601)
Balance, December 31, 2005......................... $327 $(14) $38$351
(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.