Travelers 2007 Annual Report Download - page 184

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2. SEGMENT INFORMATION (Continued)
Business Segment Reconciliations
(at and for the year ended December 31, in millions) 2007 2006 2005
Revenue reconciliation
Earned premiums
Business Insurance:
Commercial multi-peril ............................................ $ 3,087 $ 3,056 $ 2,958
Workers’ compensation ............................................ 2,221 1,970 2,015
Commercial automobile ............................................ 2,026 1,999 2,144
Property ...................................................... 1,989 1,901 1,860
General liability ................................................. 1,917 1,929 2,075
Other ....................................................... 43 21 64
Total Business Insurance .......................................... 11,283 10,876 11,116
Financial, Professional & International Insurance:
Fidelity and surety ............................................... 1,070 1,093 1,053
General liability ................................................. 951 1,005 912
International ................................................... 1,231 1,101 1,126
Other ....................................................... 132 122 106
Total Financial, Professional & International Insurance ....................... 3,384 3,321 3,197
Personal Insurance:
Automobile .................................................... 3,692 3,672 3,428
Homeowners and other ............................................ 3,111 2,891 2,600
Total Personal Insurance .......................................... 6,803 6,563 6,028
Total earned premiums ........................................... 21,470 20,760 20,341
Net investment income ............................................... 3,761 3,515 3,158
Fee income ....................................................... 508 591 664
Other revenues .................................................... 143 164 180
Total operating revenues for reportable segments ............................... 25,882 25,030 24,343
Interest Expense and Other ............................................ (19) 49 5
Net realized investment gains ........................................... 154 11 17
Total consolidated revenues .......................................... $26,017 $25,090 $24,365
Income reconciliation, net of tax
Total operating income for reportable segments ................................ $ 4,709 $ 4,363 $ 2,210
Interest Expense and Other(1) ........................................... (209) (163) (184)
Total operating income from continuing operations ........................... 4,500 4,200 2,026
Net realized investment gains ........................................... 101 835
Total income from continuing operations ................................. 4,601 4,208 2,061
Discontinued operations ............................................... —— (439)
Total consolidated net income ........................................ $ 4,601 $ 4,208 $ 1,622
(1) The primary component of Interest Expense and Other is after-tax interest expense of $224 million, $207 million and
$186 million in 2007, 2006 and 2005, respectively. The 2007 total also includes an after-tax loss of $25 million related to the
Company’s redemption of its 4.5% contingently convertible debentures. The 2006 total also includes a $27 million after-tax
gain on the redemption of the Company’s $593 million, 7.60% subordinated debentures. See note 7.
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