Travelers 2014 Annual Report Download - page 85

Table of Contents
remaining $70 million of other net realized gains in 2014 were primarily driven by $32 million of net realized investment gains related to fixed maturity
investments, $24 million of net realized investment gains related to equity securities, $8 million of net realized investment gains related to other
investments and $6 million of net realized investment gains from real estate sales.
Other net realized gains in 2013 of $181 million were primarily driven by $115 million of net realized gains associated with U.S. Treasury futures
contracts, which require daily mark
- to - market settlement and are used from time to time to shorten the duration of the Company's fixed maturity
investment portfolio. The remaining $66 million of other net realized investment gains in 2013 were primarily driven by $41 million of net realized
investment gains related to fixed maturity investments, $15 million of net realized investment gains related to equity securities and $10 million of net
realized investment gains related to other investments.
Other net realized investment gains in 2012 of $66 million were primarily driven by $61 million of net realized investment gains related to fixed
maturity investments, $19 million of net realized investment gains related to real estate and $8 million of net realized investment gains related to
equity securities. These net realized investment gains were partially offset by $14 million of net realized investment losses associated with U.S.
Treasury futures contracts and $8 million of net realized investment losses related to other investments.
Other Revenues
The amount of other revenues in all years presented primarily consisted of installment premium charges. Other revenues in 2013 also included
a $91 million gain from the settlement of a legal proceeding, which is discussed in more detail in note 16 of notes to the consolidated financial
statements, and a $20 million gain from the sale of renewal rights related to the Company's National Flood Insurance Program business.
Claims and Expenses
Claims and Claim Adjustment Expenses
Claims and claim adjustment expenses in 2014 were $13.87 billion, $563 million or 4% higher than in 2013, primarily reflecting (i) the impact of the
acquisition of Dominion, (ii) the impact of loss cost trends, (iii) higher non
- catastrophe weather - related losses, (iv) higher catastrophe losses and
(v) a higher level of what the Company defines as large losses, partially offset by (vi) the impact of lower volumes of insured exposures (excluding
the impact of the acquisition of Dominion) and (vii) higher net favorable prior year reserve development. Catastrophe losses in 2014 included
multiple wind and hail storms in several regions of the United States and a winter storm in the Mid
- Atlantic, Midwestern and Southeastern regions
of the United States. Catastrophe losses in 2013 resulted from multiple tornado, wind and hail storms in several regions of the United States, as well
as floods in Alberta, Canada and Storm Xaver in the United Kingdom. Factors contributing to net favorable prior year reserve development in each
segment are discussed in more detail in note 7 of notes to the Company's consolidated financial statements.
Claims and claim adjustment expenses in 2013 were $13.31 billion, $1.37 billion or 9% lower than in 2012, primarily reflecting (i) a decline in
catastrophe losses and (ii) the impact of lower volumes of insured exposures (excluding the impact of the acquisition of Dominion), partially offset
by (iii) the impact of loss cost trends, (iv) the impact of the acquisition of Dominion and (v) lower net favorable prior year reserve development.
Catastrophe losses in 2012 primarily resulted from Storm Sandy, as well as multiple tornado, wind and hail storms in several regions of the United
States. Net favorable prior year reserve development in 2013 was reduced by a $42 million charge that was precipitated by legislation in New York
enacted during the first quarter of 2013 related to the New York Fund for Reopened Cases for workers' compensation. Factors contributing to net
favorable prior year reserve
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