Travelers 2015 Annual Report Download - page 245

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND
SUBSIDIARIES (Continued)
unconditionally guaranteed certain debt obligations of Travelers Property Casualty Corp. (TPC), which
totaled $700 million at December 31, 2015.
Prior to the merger of TPC and The St. Paul Companies, Inc. 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, TRV 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, 2015
Other
(in millions) TPC Subsidiaries TRV Eliminations Consolidated
Revenues
Premiums .......................... $16,254 $7,620 $ — $ — $23,874
Net investment income ................. 1,612 760 7 — 2,379
Fee income ......................... 445 — — — 445
Net realized investment gains (losses)(1) .... 13 (11) 1 — 3
Other revenues ...................... 78 21 — — 99
Total revenues ..................... 18,402 8,390 8 — 26,800
Claims and expenses
Claims and claim adjustment expenses ...... 9,208 4,515 — — 13,723
Amortization of deferred acquisition costs . . . 2,627 1,258 — — 3,885
General and administrative expenses ....... 2,838 1,225 16 — 4,079
Interest expense ...................... 48 — 325 — 373
Total claims and expenses ............. 14,721 6,998 341 — 22,060
Income (loss) before income taxes ....... 3,681 1,392 (333) — 4,740
Income tax expense (benefit) ............ 1,015 394 (108) — 1,301
Net income of subsidiaries .............. — — 3,664 (3,664) —
Net income ........................ $ 2,666 $ 998 $3,439 $(3,664) $ 3,439
(1) Total other-than-temporary impairments (OTTI) for the year ended December 31, 2015, and the
amounts comprising total OTTI that were recognized in net realized investment gains (losses) and
in other comprehensive income (OCI), were as follows:
Other
(in millions) TPC Subsidiaries TRV Eliminations Consolidated
Total OTTI losses ......................... $(19) $(35) $— $— $(54)
OTTI losses recognized in net realized investment
gains ................................. $(18) $(34) $— $— $(52)
OTTI losses recognized in OCI ............... $ (1) $ (1) $— $— $ (2)
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