Travelers 2014 Annual Report Download - page 243

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
The following table presents the changes in the Level 3 fair value category for the years ended December 31, 2014 and 2013.
Other Postretirement Benefit Plan
The Company's overall investment strategy is to achieve a mix of approximately 35% to 65% of investments for long
- term growth and 35% to
60% for near
- term insurance payments with a wide diversification of asset types, fund strategies and fund managers. The current target allocations
for plan assets are 25% to 75% fixed income securities, with the remainder allocated to short
- term securities. Fixed income securities include
corporate bonds of companies from diversified industries, mortgage
- backed securities and U.S. Treasuries.
Fair Value—Other Postretirement Benefit Plan
The Company's other postretirement benefit plan had financial assets of $16 million and $17 million at December 31, 2014 and 2013,
respectively, which are measured at fair value on a recurring basis. The assets are primarily corporate bonds and short
- term securities, and
categorized as level 2 in the fair value hierarchy.
242
Other
Investments
(at and for the year ended December 31, in millions)
2014
2013
Balance at beginning of year
$
4
$
6
Actual return on plan assets:
Relating to assets still held
—
1
Relating to assets sold during the year
—
—
Purchases, sales, settlements and maturities:
Purchases
—
—
Sales
(2
)
(3
)
Settlements/maturities
—
—
Gross transfers into Level 3
—
—
Gross transfers out of Level 3
—
—
Balance at end of year
$
2
$
4