Travelers 2012 Annual Report Download - page 171

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)
For the year ended December 31, 2012 2011 2010
Revenues
Premiums .............................................. $22,357 $22,090 $21,432
Net investment income ..................................... 2,889 2,879 3,059
Fee income ............................................. 323 296 287
Net realized investment gains(1) .............................. 51 55 264
Other revenues .......................................... 120 126 70
Total revenues ...................................... 25,740 25,446 25,112
Claims and expenses
Claims and claim adjustment expenses .......................... 14,676 16,276 13,210
Amortization of deferred acquisition costs ....................... 3,910 3,876 3,802
General and administrative expenses ........................... 3,610 3,556 3,406
Interest expense .......................................... 378 386 388
Total claims and expenses ............................. 22,574 24,094 20,806
Income before income taxes ................................ 3,166 1,352 4,306
Income tax expense (benefit) ................................ 693 (74) 1,090
Net income ............................................ $ 2,473 $ 1,426 $ 3,216
Net income per share
Basic .............................................. $ 6.35 $ 3.40 $ 6.69
Diluted ............................................. $ 6.30 $ 3.36 $ 6.62
Weighted average number of common shares outstanding
Basic .............................................. 386.2 415.8 476.5
Diluted ............................................. 389.8 420.5 482.5
(1) Total other-than-temporary impairment (OTTI) gains were $27 million, $30 million and $7 million
for the years ended December 31, 2012, 2011 and 2010, respectively. Of total OTTI, credit losses
of $(15) million, $(25) million and $(26) million for the years ended December 31, 2012, 2011 and
2010, respectively, were recognized in net realized investment gains. In addition, unrealized gains
from other changes in total OTTI of $42 million, $55 million and $33 million for the years ended
December 31, 2012, 2011 and 2010, respectively, were recognized in other comprehensive income
as part of changes in net unrealized gains on investment securities having credit losses recognized
in the consolidated statement of income.
The accompanying notes are an integral part of the consolidated financial statements.
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