Travelers 2009 Annual Report Download - page 256

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. CONTINGENCIES, COMMITMENTS AND GUARANTEES (Continued)
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. The maximum amount of the Company’s contingent
obligation for indemnifications that are quantifiable was $1.40 billion at December 31, 2009, of which
$12 million was recognized on the balance sheet at that date. These amounts resulted from
indemnifications that were provided in connection with the sales of business entities.
16. NONCASH INVESTING AND FINANCING ACTIVITIES
There were no significant noncash financing or investing activities during the years ended
December 31, 2009, 2008 and 2007.
17. SUBSEQUENT EVENTS
There were no subsequent events requiring adjustment to the financial statements or disclosure
through February 18, 2010, the date that the Company’s financial statements were issued.
18. 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, 2009.
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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