Travelers 2009 Annual Report Download - page 217

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The following table presents the carrying amount of the Company’s goodwill by segment at
December 31, 2009 and 2008:
(in millions) 2009 2008
Business Insurance................................................. $2,168 $2,168
Financial, Professional & International Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 557 556
Personal Insurance................................................. 613 613
Other .......................................................... 27 29
Total ......................................................... $3,365 $3,366
Other Intangible Assets
The following presents a summary of the Company’s other intangible assets by major asset class at
December 31, 2009 and 2008:
Gross
Carrying Accumulated
(at December 31, 2009, in millions) Amount Amortization Net
Intangibles subject to amortization
Customer-related ......................................... $ 935 $722 $213
Fair value adjustment on claims and claim adjustment expense reserves
and reinsurance recoverables(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 32 159
Total intangible assets subject to amortization . . . . . . . . . . . . . . . . . . . 1,126 754 372
Intangible assets not subject to amortization ..................... 216 — 216
Total other intangible assets................................ $1,342 $754 $588
Gross
Carrying Accumulated
(at December 31, 2008, in millions) Amount Amortization Net
Intangibles subject to amortization
Customer-related ......................................... $ 935 $650 $285
Fair value adjustment on claims and claim adjustment expense reserves
and reinsurance recoverables(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 4 187
Total intangible assets subject to amortization . . . . . . . . . . . . . . . . . . . 1,126 654 472
Intangible assets not subject to amortization ..................... 216 — 216
Total other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,342 $654 $688
(1) The fair value adjustment of $191 million was recorded in connection with the merger of The
St. Paul Companies, Inc. and Travelers Property Casualty Corp. in 2004 and was based on
management’s estimate of nominal claims and claim adjustment expense reserves and reinsurance
recoverables (after adjusting for conformity with the acquirer’s accounting policy on discounting of
workers’ compensation reserves), expected payment patterns, the April 1, 2004 U.S. Treasury spot
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