Travelers 2008 Annual Report Download - page 251

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. CONTINGENCIES, COMMITMENTS AND GUARANTEES (Continued)
following the closing, and in certain cases obligations arising from undisclosed liabilities, adverse
reserve development, imposition of additional taxes due to either a change in the tax law or an adverse
interpretation of the tax law, or certain named litigation. Such indemnification provisions generally
survive for periods ranging from 12 months following the applicable closing date to the expiration of
the relevant statutes of limitations, or in some cases agreed upon term limitations. Certain of these
contingent obligations are subject to deductibles which have to be incurred by the obligee before the
Company is obligated to make payments. At December 31, 2008, the maximum amount of the
Company’s contingent obligation for those indemnifications that are quantifiable related to sales of
business entities was $2.10 billion. The carrying value of these obligations at December 31, 2008 was
$58 million.
16. NONCASH INVESTING AND FINANCING ACTIVITIES
There were no significant noncash financing or investing activities during the years ended
December 31, 2008, 2007 and 2006.
17. 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 $1.19 billion at December 31, 2008.
Prior to the merger, TPC fully and unconditionally guaranteed the payment of all principal,
premiums, if any, and interest on certain debt obligations 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 been presented herein because such financial information would be
substantially the same as the financial information provided for TPC.
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