Travelers 2005 Annual Report Download - page 222

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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21. CONSOLIDATING FINANCIAL STATEMENTS O F THE ST. PAUL TRAVELERS
COMPANIES, INC. AND SUBSIDIARIES
The following consolidating financial statements of the Company 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 ofaccounting 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, 2005.
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.
The amounts shown in the “TPC” and “Other Subsidiaries” columns in the following consolidating
financial statements are not directly comparable between 2005 and 2004. During2005, the Company
combined the previously separate St. Paul Insurance Group and Travelers Property Casualty reinsurance
pools, forming the new St. Paul Travelers Reinsurance Pool effective July 1, 2005, retroactive to January 1,
2005. As a result, the “TPC” and “Other Subsidiaries” columns of the consolidating financial statements
for 2005 reflect the impact of allocations of revenues, losses and expenses made pursuant to the respective
entities’ participation level in the newly combined pool.