Travelers 2006 Annual Report Download - page 246

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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21. CONSOLIDATING FINANCIAL STATEMENTS OF THE 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 of accounting as the consolidated financial statements.
The Travelers Companies, Inc. has fully and unconditionally guaranteed certain debt obligations of TPC,
its wholly-owned subsidiary, which totaled $2.49 billion as of December 31, 2006.
Prior to the merger, TPC fully and unconditionally guaranteed the payment of all principal,
premiums, if any, and interest on certaindebtobligations of its wholly-owned subsidiary TIGHI. The
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 beenpresented hereinbecause suchfinancial information would be
substantiallythe same as the financial informatio n 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. During 2005, the Company
combined the previously separate St. Paul Insurance Group and Travelers Property Casualty reinsurance
pools, forming the new 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.