Travelers 2013 Annual Report Download - page 231

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. SHAREHOLDERS’ EQUITY AND DIVIDEND AVAILABILITY (Continued)
Common shares acquired are reported as treasury stock in the consolidated balance sheet.
Dividend Availability
The Company’s U.S. insurance subsidiaries, domiciled principally in the state of Connecticut, are
subject to various regulatory restrictions that limit the maximum amount of dividends available to be
paid by each insurance subsidiary to its respective parent company without prior approval of insurance
regulatory authorities. A maximum of $3.33 billion is available by the end of 2014 for such dividends to
the holding company, TRV, without prior approval of the Connecticut Insurance Department. The
Company may choose to accelerate the timing within 2014 and/or increase the amount of dividends
from its insurance subsidiaries in 2014, which could result in certain dividends being subject to approval
by the Connecticut Insurance Department.
TRV is not dependent on dividends or other forms of repatriation from its foreign operations to
support its liquidity needs. The undistributed earnings of the Company’s foreign operations are not
material and are intended to be permanently reinvested in those operations.
TRV and its two non-insurance holding company subsidiaries received $2.90 billion of dividends in
2013, all of which were received from their U.S. insurance subsidiaries.
Statutory Net Income and Policyholder Surplus
Statutory net income of the Company’s domestic and international insurance subsidiaries was
$4.18 billion, $2.84 billion and $1.50 billion for the years ended December 31, 2013, 2012 and 2011,
respectively. Policyholder surplus of the Company’s domestic and international insurance subsidiaries
was $21.12 billion and $20.05 billion at December 31, 2013 and 2012, respectively.
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