Travelers 2013 Annual Report Download - page 226

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. INSURANCE CLAIM RESERVES (Continued)
There are also risks which impact the estimation of ultimate costs for catastrophes. For example,
the estimation of reserves related to hurricanes can be affected by the inability of the Company and its
insureds to access portions of the impacted areas, the complexity of factors contributing to the losses,
the legal and regulatory uncertainties and the nature of the information available to establish the
reserves. Complex factors include, but are not limited to: determining whether damage was caused by
flooding versus wind; evaluating general liability and pollution exposures; estimating additional living
expenses; the impact of demand surge; the potential impact of changing climate conditions, including
higher frequency and severity of weather-related events; infrastructure disruption; fraud; the effect of
mold damage and business income interruption costs; and reinsurance collectibility. The timing of a
catastrophe’s occurrence, such as at or near the end of a reporting period, can also affect the
information available to us in estimating reserves for that reporting period. The estimates related to
catastrophes are adjusted as actual claims emerge.
8. DEBT
Debt outstanding was as follows:
(at December 31, in millions) 2013 2012
Short-term:
Commercial paper ................................................. $ 100 $ 100
5.00% Senior notes due March 15, 2013 ................................. —500
Total short-term debt ............................................. 100 600
Long-term:
5.50% Senior notes due December 1, 2015 ............................... 400 400
6.25% Senior notes due June 20, 2016 ................................... 400 400
5.75% Senior notes due December 15, 2017 ............................... 450 450
5.80% Senior notes due May 15, 2018 ................................... 500 500
5.90% Senior notes due June 2, 2019 .................................... 500 500
3.90% Senior notes due November 1, 2020 ............................... 500 500
7.75% Senior notes due April 15, 2026 .................................. 200 200
7.625% Junior subordinated debentures due December 15, 2027 ................ 125 125
6.375% Senior notes due March 15, 2033 ................................. 500 500
6.75% Senior notes due June 20, 2036 ................................... 400 400
6.25% Senior notes due June 15, 2037 ................................... 800 800
5.35% Senior notes due November 1, 2040 ............................... 750 750
4.60% Senior notes due August 1, 2043 .................................. 500 —
8.50% Junior subordinated debentures due December 15, 2045 ................. 56 56
8.312% Junior subordinated debentures due July 1, 2046 ..................... 73 73
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 .... 107 107
Total long-term debt .............................................. 6,261 5,761
Total debt principal ............................................... 6,361 6,361
Unamortized fair value adjustment ..................................... 51 52
Unamortized debt issuance costs ....................................... (66) (63)
Total debt ...................................................... $6,346 $6,350
216