Travelers 2011 Annual Report Download - page 214

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. GOODWILL AND OTHER INTANGIBLE ASSETS (Continued)
The following presents a summary of the Company’s amortization expense for other intangible
assets by major asset class:
(for the year ended December 31, in millions) 2011 2010 2009
Customer-related ................................................. $47 $61 $ 72
Fair value adjustment on claims and claim adjustment expense reserves and
reinsurance recoverables .......................................... 22 25 28
Total amortization expense ........................................ $69 $86 $100
Intangible asset amortization expense is estimated to be $52 million in 2012, $45 million in 2013,
$43 million in 2014, $23 million in 2015 and $9 million in 2016.
7. INSURANCE CLAIM RESERVES
Claims and claim adjustment expense reserves were as follows:
(at December 31, in millions) 2011 2010
Property-casualty ................................................. $51,353 $51,537
Accident and health .............................................. 66 69
Total ........................................................ $51,419 $51,606
The following table presents a reconciliation of beginning and ending property casualty reserve
balances for claims and claim adjustment expenses:
(at and for the year ended December 31, in millions) 2011 2010 2009
Claims and claim adjustment expense reserves at beginning of year ..... $51,537 $53,529 $55,121
Less reinsurance recoverables on unpaid losses ................... 11,282 12,588 13,809
Net reserves at beginning of year .......................... 40,255 40,941 41,312
Estimated claims and claim adjustment expenses for claims arising in the
current year ........................................... 16,937 14,452 13,681
Estimated decrease in claims and claim adjustment expenses for claims
arising in prior years ..................................... (842) (1,417) (1,449)
Total increases ........................................ 16,095 13,035 12,232
Claims and claim adjustment expense payments for claims arising in:
Current year ........................................... 7,751 5,949 5,399
Prior years ............................................ 7,653 7,748 7,519
Total payments ....................................... 15,404 13,697 12,918
Unrealized foreign exchange (gain) loss ......................... (27) (24) 315
Net reserves at end of year .............................. 40,919 40,255 40,941
Plus reinsurance recoverables on unpaid losses .................... 10,434 11,282 12,588
Claims and claim adjustment expense reserves at end of year ......... $51,353 $51,537 $53,529
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