Travelers 2009 Annual Report Download - page 79

Court of Appeals for the Third Circuit. Oral argument before the Third Circuit took place on April 21,
2009. The parties continue to await a ruling from the Third Circuit. Additional individual actions have
been brought in state and federal courts against the Company involving allegations similar to those in
In re Insurance Brokerage Antitrust Litigation, and further actions may be brought. The Company
believes that all of these lawsuits have no merit and intends to defend vigorously.
Other—In addition to those described above, the Company is involved in numerous lawsuits, not
involving asbestos and environmental claims, arising mostly in the ordinary course of business
operations, either as a liability insurer defending third-party claims brought against policyholders or as
an insurer defending claims brought against it relating to coverage or the Company’s business practices.
While the ultimate resolution of these legal proceedings could be material to the Company’s results of
operations in a future period, in the opinion of the Company’s management, none would likely have a
material adverse effect on the Company’s financial position or liquidity.
The Company previously reported that it sought guidance from the Division of Corporation
Finance of the SEC with respect to the appropriate purchase accounting treatment for certain second
quarter 2004 adjustments totaling $1.63 billion. See ‘‘Management’s Discussion and Analysis of
Financial Condition and Results of Operations—Other Matters.’’ After discussion with the staff of the
Division of Corporate Finance and the Company’s independent auditors, the Company continues to
believe that its accounting treatment for these adjustments is appropriate. On May 3, 2006, the
Company received a letter from the Division of Enforcement of the SEC advising the Company that it
is conducting an inquiry relating to the second quarter 2004 adjustments and the April 1, 2004 merger
of SPC and TPC. The Company cooperated with the requests for information.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE.
EXECUTIVE OFFICERS OF THE REGISTRANT
Information about the Company’s executive officers is incorporated by reference from Part III,
Item 10 of this Report.
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