Travelers 2014 Annual Report Download - page 248

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
16. CONTINGENCIES, COMMITMENTS AND GUARANTEES (Continued)
Other Commitments and Guarantees
Commitments
Investment Commitments—The Company has unfunded commitments to private equity limited partnerships and real estate partnerships in
which it invests. These commitments totaled $1.63 billion and $1.52 billion at December 31, 2014 and 2013, respectively.
Guarantees
In the ordinary course of selling businesses to third parties, the Company has agreed to indemnify purchasers for losses arising out of
breaches of representations and warranties with respect to the businesses being sold, covenants and obligations of the Company and/or its
subsidiaries following the closing and, in certain cases, obligations arising from certain liabilities, adverse reserve development and imposition of
additional taxes due to either a change in the tax law or an adverse interpretation of the tax law. Such indemnification provisions generally are
applicable from the closing date to the expiration of the relevant statutes of limitations, although, in some cases, there may be agreed upon term
limitations or no term limitations. Certain of these contingent obligations are subject to deductibles which have to be incurred by the obligee before
the Company is obligated to make payments. The maximum amount of the Company's contingent obligation for indemnifications related to the sale
of businesses that are quantifiable was $462 million at December 31, 2014, of which $8 million was recognized on the balance sheet at that date.
The Company also has contingent obligations for guarantees related to certain investments, third
- party loans related to certain investments,
certain insurance policy obligations of former insurance subsidiaries, and various other indemnifications. The Company also provides standard
indemnifications to service providers in the normal course of business. The indemnification clauses are often standard contractual terms. Certain of
these guarantees and indemnifications have no stated or notional amounts or limitation to the maximum potential future payments, and,
accordingly, the Company is unable to develop an estimate of the maximum potential payments for such arrangements. The maximum amount of the
Company's obligation for guarantees of certain investments and third
- party loans related to certain investments that are quantifiable was
$150 million at December 31, 2014, approximately $75 million of which is indemnified by a third party. The maximum amount of the Company's
obligation related to the guarantee of certain insurance policy obligations of a former insurance subsidiary was $480 million at December 31, 2014,
all of which is indemnified by a third party.
17. NONCASH INVESTING AND FINANCING ACTIVITIES
There were no material noncash financing or investing activities during the years ended December 31, 2014, 2013 and 2012.
18. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
The following consolidating financial statements of the Company have been prepared pursuant to Rule 3
- 10 of Regulation S - X. These
consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the
consolidated financial statements. The Travelers Companies, Inc. has fully and unconditionally guaranteed certain debt obligations of TPC, which
totaled $700 million at December 31, 2014.
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