Travelers 2015 Annual Report Download - page 220

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. SHAREHOLDERS’ EQUITY AND DIVIDEND AVAILABILITY (Continued)
from its insurance subsidiaries in 2016, which could result in certain dividends being subject to approval
by the Connecticut Insurance Department.
In addition to the regulatory restrictions on the availability of dividends that can be paid by the
Company’s U.S. insurance subsidiaries, the maximum amount of dividends that may be paid to the
Company’s shareholders is limited, to a lesser degree, by certain covenants contained in its line of
credit agreement with a syndicate of financial institutions that require the Company to maintain a
minimum consolidated net worth as described in note 8.
TRV is not dependent on dividends or other forms of repatriation from its foreign operations to
support its liquidity needs. The undistributed earnings of the Company’s foreign operations are not
material and are intended to be permanently reinvested in those operations.
TRV and its two non-insurance holding company subsidiaries received dividends of $3.75 billion,
$4.10 billion and $2.90 billion from their U.S. insurance subsidiaries in 2015, 2014 and 2013,
respectively.
For the years ended December 31, 2015, 2014 and 2013, TRV declared cash dividends per common
share of $2.38, $2.15 and $1.96, respectively, and paid cash dividends of $739 million, $729 million and
$729 milllion, respectively.
Statutory Net Income and Statutory Capital and Surplus
Statutory net income of the Company’s domestic and international insurance subsidiaries was
$3.80 billion, $3.97 billion and $4.18 billion for the years ended December 31, 2015, 2014 and 2013,
respectively. Statutory capital and surplus of the Company’s domestic and international insurance
subsidiaries was $20.57 billion and $21.05 billion at December 31, 2015 and 2014, respectively.
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