Travelers 2014 Annual Report Download - page 210

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. GOODWILL AND OTHER INTANGIBLE ASSETS (Continued)
The following presents a summary of the Company's amortization expense for other intangible assets by major asset class:
Intangible asset amortization expense is estimated to be $26 million in 2015, $10 million in 2016, $9 million in 2017, $7 million in 2018 and
$6 million in 2019.
7. INSURANCE CLAIM RESERVES
Claims and claim adjustment expense reserves were as follows:
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would, if reserves ran off as expected, produce results that yielded the assumed cost - of - capital on the capital supporting the
loss reserves. The fair value adjustments are reported as other intangible assets on the consolidated balance sheet, and the
amounts measured in accordance with the acquirer's accounting policies for insurance contracts have been reported as part
of the claims and claim adjustment expense reserves and reinsurance recoverables. The intangible assets are being
recognized into income over the expected payment pattern. Because the time value of money and the risk adjustment (cost of
capital) components of the intangible assets run off at different rates, the amount recognized in income may be a net benefit
in some periods and a net expense in other periods. Additionally, $5 million of contract
- related intangibles were recorded
related to operating leases in connection with the acquisition of Dominion in 2013.
(for the year ended December 31, in millions)
2014
2013
2012
Customer - related
$
32
$
31
$
33
Fair value adjustment on claims and claim adjustment expense reserves,
reinsurance recoverables and other contract
- related intangibles
14
15
19
Total amortization expense
$
46
$
46
$
52
(at December 31, in millions)
2014
2013
Property - casualty
$
49,824
$
50,865
Accident and health
26
30
Total
$
49,850
$
50,895