Travelers 2015 Annual Report Download - page 78

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
2015 Consolidated Results of Operations
• Net income of $3.44 billion, or $10.99 per share basic and $10.88 per share diluted
• Net earned premiums of $23.87 billion
• Catastrophe losses of $514 million ($338 million after-tax)
• Net favorable prior year reserve development of $941 million ($617 million after-tax)
• Combined ratio of 88.3%
• Net investment income of $2.38 billion ($1.91 billion after-tax)
• Operating cash flows of $3.43 billion
2015 Consolidated Financial Condition
• Total investments of $70.47 billion; fixed maturities and short-term securities comprise 93% of
total investments
• Total assets of $100.18 billion
• Total debt of $6.34 billion, resulting in a debt-to-total capital ratio of 21.2% (22.1% excluding
net unrealized investment gains, net of tax)
• Repurchased 30.3 million common shares for total cost of $3.22 billion and paid $739 million of
dividends to shareholders
• Shareholders’ equity of $23.60 billion
• Net unrealized investment gains of $1.97 billion ($1.29 billion after-tax)
• Book value per common share of $79.75
• Holding company liquidity of $1.63 billion
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