Travelers 2014 Annual Report Download - page 81

Table of Contents
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is a discussion and analysis of the Company's financial condition and results of operations.
On November 1, 2013, the Company acquired all of the issued and outstanding shares of Dominion for an aggregate purchase price of
approximately $1.035 billion. The results of operations of the acquired business are reported in the Company's Business and International
Insurance segment from the closing date.
FINANCIAL HIGHLIGHTS
2014 Consolidated Results of Operations
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Net income of $3.69 billion, or $10.82 per share basic and $10.70 per share diluted
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Net earned premiums of $23.71 billion
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Catastrophe losses of $709 million ($462 million after - tax)
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Net favorable prior year reserve development of $941 million ($616 million after - tax)
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Combined ratio of 89.0%
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Net investment income of $2.79 billion ($2.22 billion after - tax)
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Operating cash flows of $3.69 billion
2014 Consolidated Financial Condition
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Total investments of $73.26 billion; fixed maturities and short - term securities comprise 93% of total investments
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Total assets of $103.08 billion
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Total debt of $6.35 billion, resulting in a debt - to - total capital ratio of 20.4% (21.7% excluding net unrealized investment gains, net of
tax)
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Repurchased 35.1 million common shares for a total cost of $3.28 billion under the publicly - announced share repurchase
authorization
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Shareholders' equity of $24.84 billion
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Net unrealized investment gains of $3.01 billion ($1.97 billion after - tax)
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Book value per common share of $77.08
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Holding company liquidity of $1.59 billion
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