Travelers 2013 Annual Report Download - page 215

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. REINSURANCE (Continued)
The following is a summary of reinsurance financial data reflected in the consolidated statement of
income:
(for the year ended December 31, in millions) 2013 2012 2011
Written premiums
Direct ................................................ $23,952 $23,612 $23,218
Assumed .............................................. 705 697 669
Ceded ................................................ (1,890) (1,862) (1,700)
Total net written premiums ............................... $22,767 $22,447 $22,187
Earned premiums
Direct ................................................ $23,891 $23,507 $23,144
Assumed .............................................. 717 693 643
Ceded ................................................ (1,971) (1,843) (1,697)
Total net earned premiums ............................... $22,637 $22,357 $22,090
Percentage of assumed earned premiums to net earned premiums .... 3.2% 3.1% 2.9%
Ceded claims and claim adjustment expenses incurred ............ $ 1,019 $ 1,357 $ 737
Ceded premiums included the premiums paid for coverage provided by the Company’s catastrophe
bonds.
Reinsurance recoverables include amounts recoverable on both paid and unpaid claims and were
as follows:
(at December 31, in millions) 2013 2012
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment
expenses ...................................................... $4,707 $ 5,256
Allowance for uncollectible reinsurance ................................. (239) (258)
Net reinsurance recoverables ......................................... 4,468 4,998
Mandatory pools and associations ..................................... 1,897 2,549
Structured settlements .............................................. 3,348 3,165
Total reinsurance recoverables ........................................ $9,713 $10,712
Terrorism Risk Insurance Program
The Terrorism Risk Insurance Program is a Federal program administered by the Department of
the Treasury that provides for a system of shared public and private compensation for certain insured
losses resulting from certified acts of terrorism. The current program has been authorized through
2014. Several bills have been introduced in Congress to extend the current program beyond
December 31, 2014.
In order for a loss to be covered under the program (subject losses), the loss must meet certain
aggregate industry loss minimums and must be the result of an event that is certified as an act of
terrorism by the U.S. Secretary of the Treasury, in concurrence with the Secretary of State and the
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