Travelers 2015 Annual Report Download - page 157

different model for impairments of debt financial instruments than the IASB and is expected to issue a
final update, Financial Instruments—Credit Losses, in 2016.
Accounting for Leases: Both the FASB and IASB have been working on the accounting for leases
project. The FASB has concluded that a dual approach for lessee accounting (operating and finance
leases) is appropriate and is expected to issue a new standard shortly, while the IASB has issued a
standard that uses a single model approach (finance lease). Accordingly these two models will have
differences in income statement presentation.
As a result of these actions, the FASB and IASB will have different insurance, financial instrument
and lease accounting standards that could result in the Company having to apply accounting standards
for its consolidated financial statements that are different from the accounting standard used for local
reporting in foreign jurisdictions.
FORWARD-LOOKING STATEMENTS
This report contains, and management may make, certain ‘‘forward-looking statements’’ within the
meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements
of historical facts, may be forward-looking statements. Words such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘likely,’’
‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘projects,’’ ‘‘believes,’’ ‘‘estimates’’ and similar expressions
are used to identify these forward-looking statements. These statements include, among other things,
the Company’s statements about:
• the Company’s outlook and its future results of operations and financial condition (including,
among other things, premium volume, premium rates, margins, net and operating income,
investment income and performance, loss costs, return on equity, and expected current returns
and combined ratios);
• share repurchase plans;
• future pension plan contributions;
• the sufficiency of the Company’s asbestos and other reserves;
• the impact of emerging claims issues as well as other insurance and non-insurance litigation;
• the cost and availability of reinsurance coverage;
• catastrophe losses;
• the impact of investment, economic (including rapid changes in commodity prices, such as a
significant decline in oil and gas prices, as well as fluctuations in foreign currency exchange
rates) and underwriting market conditions; and
• strategic initiatives to improve profitability and competitiveness.
The Company cautions investors that such statements are subject to risks and uncertainties, many
of which are difficult to predict and generally beyond the Company’s control, that could cause actual
results to differ materially from those expressed in, or implied or projected by, the forward-looking
information and statements.
For a discussion of some of the factors that could cause actual results to differ, see ‘‘Item 1A—
Risk Factors’’ and ‘‘Item 7—Management’s Discussion and Analysis of Financial Condition and Results
of Operations.’’
The Company’s forward-looking statements speak only as of the date of this report or as of the
date they are made, and the Company undertakes no obligation to update its forward-looking
statements.
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