Travelers 2008 Annual Report Download - page 212

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. REINSURANCE (Continued)
for that program year. The Company has had no terrorism-related losses since the Program was
established. Because the Acts are relatively new and their interpretation is untested, there may be
uncertainty as to how they will be applied to specific circumstances. Further, given the unpredictable
frequency and severity of terrorism losses, as well as the limited terrorism coverage in the Company’s
own reinsurance program, future losses from acts of terrorism, particularly those involving nuclear,
biological, chemical or radiological events, could be material to the Company’s operating results,
financial position and/or liquidity in future periods. The Company will continue to manage this type of
catastrophic risk by monitoring and controlling terrorism risk aggregations to the best of its ability.
6. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The following table presents the carrying amount of the Company’s goodwill by segment at
December 31, 2008 and 2007:
(in millions) 2008 2007
Business Insurance ................................................. $2,168 $2,168
Financial, Professional & International Insurance ........................... 556 555
Personal Insurance ................................................. 613 613
Other .......................................................... 29 30
Total ......................................................... $3,366 $3,366
Other Intangible Assets
The following presents a summary of other intangible assets by major asset class at December 31,
2008 and 2007:
Gross
Carrying Accumulated
(at December 31, 2008, in millions) Amount Amortization Net
Intangibles subject to amortization
Customer-related ......................................... $1,036 $751 $285
Fair value adjustment on claims and claim adjustment expense reserves
and reinsurance recoverables(1) ............................. 191 4 187
Total intangible assets subject to amortization ................... 1,227 755 472
Intangible assets not subject to amortization ..................... 216 — 216
Total other intangible assets ................................ $1,443 $755 $688
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