Travelers 2013 Annual Report Download - page 122

Debt Securities Issued by Foreign Governments
The following table shows the geographic distribution of the Company’s long-term fixed maturity
investments in debt securities issued by foreign governments at December 31, 2013.
Carrying Average Credit
(at December 31, 2013, in millions) Value Quality(1)
Foreign Government:
Canada ...................................... $1,350 Aaa
United Kingdom ............................... 971 Aaa/Aa1
Norway ..................................... 97 Aaa
All Others(2)(3) ............................... 159 Aaa/Aa1
Total ...................................... $2,577 Aaa/Aa1
(1) Rated using external rating agencies or by the Company when a public rating does not
exist. Ratings shown are the higher of the rating of the underlying issuer or the insurer in
the case of securities enhanced by third-party insurance for the payment of principal and
interest in the event of issuer default.
(2) The Company does not have direct exposure to sovereign debt issued by the Republic of
Ireland, Italy, Greece, Portugal or Spain.
(3) No other country accounted for 2.5% or more of total debt securities issued by foreign
governments.
The following table shows the Company’s Eurozone exposure at December 31, 2013 to all debt
securities issued by foreign governments, financial companies, sovereign corporations (including
sovereign banks) whose securities are backed by the respective country’s government and all other
corporate securities (comprised of industrial corporations and utility companies) which could be
affected if economic conditions deteriorated due to a prolonged recession.
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