Travelers 2014 Annual Report Download - page 249

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Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES (Continued)
Prior to the merger of TPC and SPC in 2004, TPC fully and unconditionally guaranteed the payment of all principal, premiums, if any, and
interest on certain debt obligations of its wholly
-
owned subsidiary, Travelers Insurance Group Holdings, Inc. (TIGHI). Concurrent with the merger,
The Travelers Companies, Inc. fully and unconditionally assumed such guarantee obligations of TPC. TPC is deemed to have no assets or
operations independent of TIGHI. Consolidating financial information for TIGHI has not been presented herein because such financial information
would be substantially the same as the financial information provided for TPC.
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
For the year ended December 31, 2014
248
(in millions)
TPC
Other
Subsidiaries
Travelers(2)
Eliminations
Consolidated
Revenues
Premiums
$
16,097
$
7,616
$
—
$
—
$
23,713
Net investment income
1,874
907
6
—
2,787
Fee income
436
2
—
—
438
Net realized investment gains(1)
12
64
3
—
79
Other revenues
125
20
—
—
145
Total revenues
18,544
8,609
9
—
27,162
Claims and expenses
Claims and claim adjustment
expenses
9,274
4,596
—
—
13,870
Amortization of deferred
acquisition costs
2,604
1,278
—
—
3,882
General and administrative
expenses
2,743
1,194
15
—
3,952
Interest expense
48
—
321
—
369
Total claims and expenses
14,669
7,068
336
—
22,073
Income (loss) before income
taxes
3,875
1,541
(327
)
—
5,089
Income tax expense (benefit)
1,095
417
(115
)
—
1,397
Net income of subsidiaries
—
—
3,904
(3,904
)
—
Net income
$
2,780
$
1,124
$
3,692
$
(3,904
)
$
3,692
(1)
Total other
-
than
-
temporary impairments (OTTI) for the year ended December 31, 2014, and the amounts comprising total
OTTI that were recognized in net realized investment gains and in other comprehensive income (OCI), were as follows:
(in millions)
TPC
Other
Subsidiaries
Travelers(2)
Eliminations
Consolidated
Total OTTI losses
$
(16
)
$
(6
)
$
—
$
—
$
(
22
)
OTTI losses recognized in net
realized investment gains
$
(19
)
$
(7
)
$
—
$
—
$
(
26
)
OTTI gains recognized in OCI
$
3
$
1
$
—
$
—
$
4
(2)
The Travelers Companies, Inc., excluding its subsidiaries.