Travelers 2014 Annual Report Download - page 207

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. REINSURANCE (Continued)
covered by state guaranty associations. In the event that the life insurance company fails to make the required annuity payments, the Company
would be required to make such payments.
The following is a summary of reinsurance financial data reflected in the consolidated statement of income:
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:
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 program expired at the end of 2014
but was reauthorized, with some adjustments to its provisions, in January 2015 for six years through December 31, 2020.
206
(for the year ended December 31, in millions)
2014
2013
2012
Written premiums
Direct
$
24,844
$
23,952
$
23,612
Assumed
788
705
697
Ceded
(1,728
)
(1,890
)
(1,862
)
Total net written premiums
$
23,904
$
22,767
$
22,447
Earned premiums
Direct
$
24,810
$
23,891
$
23,507
Assumed
743
717
693
Ceded
(1,840
)
(1,971
)
(1,843
)
Total net earned premiums
$
23,713
$
22,637
$
22,357
Percentage of assumed earned premiums to net earned
premiums
3.1
%
3.2
%
3.1
%
Ceded claims and claim adjustment expenses incurred
$
953
$
1,019
$
1,357
(at December 31, in millions)
2014
2013
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment
expenses
$
4,270
$
4,707
Allowance for uncollectible reinsurance
(203
)
(239
)
Net reinsurance recoverables
4,067
4,468
Mandatory pools and associations
1,909
1,897
Structured settlements
3,284
3,348
Total reinsurance recoverables
$
9,260
$
9,713