Travelers 2005 Annual Report Download - page 75

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Item 6.SELECTED FINANCIAL DATA
All data in the following table for the years 2001 through 2003 represent historical data for TPC. For
accounting purposes, the merger of SPC and TPC was accounted for as a reverse acquisition with TPC treated as
the accounting acquirer. Accordingly, this transaction was accounted for as a purchase businesscombination,
using TPC’s historical financial information and applying fair value estimates to the acquired assets, liabilities
and commitments of SPC as of April 1, 2004. Historical results are not necessarily indicative of results to be
expected in the future.
At and for the year ended December 31,(1)
2005 2004 2003 2002 2001
(in millions, except per share amounts)
Total revenues...................................................... $ 24,365 $ 22,544 $ 15,139 $ 14,270 $ 12,231
Income from continuing operations before cumulative effect of changes in
accounting principles............................................... $ 2,061$ 867 $1,696 $216 $1,062
Cumulative effect of changes in accounting principles, net of tax(2) ............. —— — (243)3
Income (loss) from discontinued operations............................... (439) 88 — ——
Net income (loss) .................................................... $ 1,622$ 955 $1,696 $ (27) $ 1,065
Total investments.................................................... $ 68,287 $ 64,368 $ 38,653 $ 38,425 $ 32,619
Total assets......................................................... 113,187111,246 64,872 64,138 57,778
Claims and claimadjustment expense reserves............................. 61,090 59,070 34,573 33,736 30,737
Total debt .......................................................... 5,8506,313 2,675 2,5442,078
Total liabilities(3).................................................... 90,884 90,045 52,885 53,100 46,192
Company-obligated mandatorily redeemable securities of subsidiary trusts holding
solely junior subordinated debt securitiesof TIGHI. ...................... —— — 900900
Total shareholders’ equity ............................................. 22,303 21,201 11,987 10,137 10,686
Basic earnings (loss) per share:(4)
Income from continuing operations before cumulative effect of changes in
accounting principles............................................... $ 3.04 $ 1.42 $3.91 $ 0.52 $ 3.18
Cumulative effect of changes in accou nting principles, net of tax ............... —— — (0.59)0.02
Income (loss) from discontinued operations(5) ............................. (0.65)0.14 — ——
Reported net income (loss) ............................................ 2.39 1.56 3.91 (0.07)3.20
Goodwill amortization ................................................ —— — —0.21
Adjusted earnings (loss) per share ....................................... $ 2.39 $ 1.56 $3.91 $ (0.07)$ 3.41
Diluted earnings (loss) per share:(4)
Income from continuing operations before cumulative effect of changes in
accounting principles............................................... $ 2.95 $ 1.40 $3.80 $ 0.52 $ 3.18
Cumulative effect of changes in accounting principles, net of tax ............... —— — (0.59)0.02
Income (loss) from discontinued operations(5) ............................. (0.62)0.13 — ——
Reported net income (loss) ............................................ 2.33 1.53 3.80 (0.07)3.20
Goodwill amortization ................................................ —— — —0.21
Adjusted earnings (loss) per share ....................................... $ 2.33 $ 1.53 $3.80 $ (0.07)$ 3.41
Year-end common shares outstanding(4)(6) ............................... 693.4670.3 435.8 435.1333.3
Per common share data:
Cash dividends(4)(7)................................................. $ 0.91 $ 1.16 $0.65 $ 12.07$ 1.22
Book value(4)....................................................... $ 31.94$ 31.35 $27.51 $ 23.30 $ 32.07
(1)On April 1, 2004, Travelers Property Casualty Corp. (TPC) merged with a subsidiary of The St. Paul Companies, Inc. (SPC), as
a result of which TPC became a wholly-owned subsidiary of SPC and SPC changed its name to The St. Paul Travelers
Companies, Inc.On October 1, 2001, TPC purchased The Northland Company and its subsidiaries (Northland) from Citigroup.
On October 3, 2001, Citigroup contributed the capital stock of Commercial Guaranty Casualty Insurance Company to TPC.
(2) Cumulative effect of changes in accounting principles, net of tax (1) for the year ended December 31, 2002 consisted of a loss of
$243 million as a result of a change in accounting for goodwill and other intangible assets; and (2) for the year ended
December 31,2001 included a gain of $5 million as a resultof a change in accounting for derivative instruments and hedging
activities and a loss of $2 million as a result of a change in accounting for securitized financial assets.
(3) Total liabilities includeminority interest liabilities of $14 million, $20 million, $105 million and $87 million at December 31,
2005,2004, 2003 and 2002, respectively.