Travelers 2006 Annual Report Download - page 79

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Item 6.SELECTED FINANCIAL DATA
All data in the following table for 2002 and 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 business combination,
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)
2006 2005 2004 2003 2002
(in millions, except per share amounts)
Total revenues...................................... $ 25,090 $ 24,365 $ 22,544 $ 15,139 $ 14,270
Income from continuing operations before cumulative
effect of change inaccounting principles............... $ 4,208 $ 2,061 $ 867 $ 1,696 $ 216
Cumulative effect of change in accounting principles, net
of tax(2).......................................... —— — — (243)
Income (loss) from discontinued operations .............. —(439)88 — —
Net income (loss).................................... $ 4,208 $ 1,622 $ 955 $ 1,696 $ (27 )
Total investments.................................... $ 72,268 $ 68,287 $ 64,368 $ 38,653 $ 38,425
Total assets......................................... 113,761 113,187 111,246 64,872 64,138
Claims and claim adjustment expense reserves ............ 59,288 61,090 59,070 34,573 33,736
Total debt .......................................... 5,760 5,850 6,313 2,675 2,544
Total liabilities ...................................... 88,626 90,884 90,045 52,885 53,100
Company-obligated mandatorily redeemable securities of
subsidiary trusts holding solely junior subordinated debt
securities of TIGHI ................................ —— — — 900
Total shareholders’ equity ............................. 25,135 22,303 21,201 11,987 10,137
Basic earnings (loss) per share:(3)
Income from continuing operations before cumulative
effect of change inaccounting principles............... $ 6.12 $ 3.04 $ 1.42 $ 3.91 $ 0.52
Cumulative effect of change in accounting principles, net
of tax ............................................ —— — — (0.59)
Income (loss) from discontinued operations(4) ........... —(0.65)0.14 — —
Net income (loss).................................... 6.12 2.39 1.56 3.91 (0.07)
Diluted earnings (loss) per share:(3)
Income from continuing operations before cumulative
effect of change inaccounting principles............... $ 5.91 $ 2.95 $ 1.40 $ 3.80 $ 0.52
Cumulative effect of change in accounting principles, net
of tax ............................................ —— — — (0.59)
Income (loss) from discontinued operations(4) ........... —(0.62)0.13 — —
Net income (loss).................................... 5.91 2.33 1.53 3.80 (0.07)
Year-endcommon shares outstanding(3)(5).............. 678.3 693.4 670.3 435.8 435.1
Per common share data:
Cash dividends(3)(6)................................. $ 1.01 $ 0.91 $ 1.16 $ 0.65 $ 12.07
Book value(3) ....................................... $ 36.86 $ 31.94 $ 31.35 $ 27.51 $ 23.30
(1)OnApril 1, 2004, Travelers Property Casualty Corp. (TPC) merged with a subsidiary of The St. Paul
Companies, Inc. (SPC), asa result of which TPC became a wholly-owned subsidiary of SPC and SPC changed its
name to The St. Paul Travelers Companies, Inc. On February 26, 2007, the name of the Company was changed to
The Travelers Companies, Inc.
(2)Cumulative effect of change in accounting principles, net of tax consisted of a loss of $243 million as a result of a
change in accounting for goodwill and other intangible assets.