Travelers 2010 Annual Report Download - page 158

Goodwill and Other Intangible Assets Impairments
See note 1 of notes to the Company’s consolidated financial statements for a discussion of
impairments of goodwill and other intangible assets.
OTHER UNCERTAINTIES
For a discussion of other risks and uncertainties that could impact the Company’s results of
operations or financial position, see note 15 of notes to the Company’s consolidated financial
statements and ‘‘Item 1A—Risk Factors.’’
FUTURE APPLICATION OF ACCOUNTING STANDARDS
See note 1 of notes to the Company’s consolidated financial statements for a discussion of recently
issued accounting standards updates.
The Company is currently required to prepare its financial statements in accordance with U.S.
Generally Accepted Accounting Principles (GAAP), as promulgated by the Financial Accounting
Standards Board (FASB). During 2008, the Securities and Exchange Commission (SEC) issued a
proposed Roadmap for comment for the potential use in filings with the SEC of financial statements
for U.S. issuers prepared in accordance with International Financial Reporting Standards (IFRS), as
promulgated by the International Accounting Standards Board (IASB), instead of in accordance with
GAAP. The Roadmap contains milestones that, if achieved, may lead the SEC to decide in 2011 to
require the use of IFRS for large accelerated filers, including the Company. In March 2010, the SEC
reaffirmed its support for a single set of high quality, global standards and acknowledged that IFRS
may be best positioned to accomplish this goal. Additionally, the SEC established a Work Plan for its
staff to evaluate whether, when and how IFRS should be incorporated into the U.S. financial reporting
system. Under the Work Plan, the SEC staff will evaluate several key issues related to a possible
convergence to IFRS. The SEC is expected to re-deliberate the proposed Roadmap during 2011 taking
into consideration the comments received from constituents as well as the result of the staff’s Work
Plan. The IASB and the FASB are in the process of developing a global insurance standard that
involves methodologies for valuing insurance contract liabilities that may be significantly different from
the methodologies required by current GAAP. The FASB and the IASB have also embarked on a
long-term project to converge GAAP and IFRS. The Company is not able to predict whether it will
choose to, or be required to, adopt IFRS or how the adoption of IFRS (or the convergence of GAAP
and IFRS, including the project for valuing insurance contract liabilities) may impact the Company’s
financial statements in the future.
FORWARD-LOOKING STATEMENTS
This report contains, and management may make, certain ‘‘forward-looking statements’’ within the
meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements
of historical facts, may be forward-looking statements. Words such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘likely,’’
‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘projects,’’ ‘‘believes,’’ ‘‘estimates’’ and similar expressions
are used to identify these forward-looking statements. Specifically, statements about the Company’s
share repurchase plans and statements about the potential impact of investment markets and other
economic conditions on the Company’s investment portfolio and underwriting results, among others,
are forward looking, and the Company may also make forward-looking statements about, among other
things:
• its results of operations and financial condition (including, among other things, premium volume,
premium rates, net and operating income, investment income and performance, return on equity,
and expected current returns and combined ratios);
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