Travelers 2013 Annual Report Download - page 169

The FASB and the IASB also continue to deliberate the three remaining projects intended to bring
convergence between GAAP and IFRS for revenue recognition, accounting for financial instruments,
and leasing. The revenue recognition project is largely converged and the Boards are expected to issue
final guidance in the first half of 2014, while the Boards currently have different positions on certain
key aspects of the financial instrument project (the classification and measurement and impairment).
Both Boards intend to complete their financial instrument project during the first half of 2014. The
timing of the leasing project is not known at this time.
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 potential convergence of GAAP and IFRS, including the joint
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, expected margin improvement, potential returns, future pension plan
contributions and 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, loss costs, return
on equity, and expected current returns and combined ratios);
• the sufficiency of the Company’s asbestos and other reserves;
• the impact of emerging claims issues as well as other insurance and non-insurance litigation;
• the cost and availability of reinsurance coverage;
• catastrophe losses;
• the impact of investment, economic and underwriting market conditions;
• strategic initiatives, including initiatives, such as in Personal Insurance, to improve profitability
and competitiveness; and
• the impact of its merger and acquisition transactions, including the acquisition of Dominion.
The Company cautions investors that such statements are subject to risks and uncertainties, many
of which are difficult to predict and generally beyond the Company’s control, that could cause actual
results to differ materially from those expressed in, or implied or projected by, the forward-looking
information and statements.
For a discussion of some of the factors that could cause actual results to differ, see ‘‘Item 1A—
Risk Factors’’ and ‘‘Item 7—Management’s Discussion and Analysis of Financial Condition and Results
of Operations—Critical Accounting Estimates.’’
The Company’s forward-looking statements speak only as of the date of this report or as of the
date they are made, and the Company undertakes no obligation to update its forward-looking
statements.
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