1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
\nBasis of Presentation
\nThe consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. Certain reclassifications have been made to the 2015 and 2014 financial statements to conform to the 2016 presentation. All material intercompany transactions and balances have been eliminated.
\nAdoption of Accounting Standards
\nCompensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period
\nIn June 2014, the Financial Accounting Standards Board (FASB) issued updated guidance to resolve diversity in practice concerning employee share-based payments that contain performance targets that could be achieved after the requisite service period. The updated guidance requires that a performance target that affects vesting and that can be achieved after the requisite service period be treated as a performance condition. As such, the performance target that affects vesting should not be reflected in estimating the fair value of the award at the grant date. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which service has been rendered. If the performance target becomes probable of being achieved before the end of the service period, the remaining unrecognized compensation cost for which requisite service has not yet been rendered is recognized prospectively over the remaining service period. The total amount of compensation cost recognized during and after the service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nPresentation of Financial Statements: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern
\nIn August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity's ability to continue as a going concern and when an entity must disclose certain relevant conditions and events. The new guidance requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). The new guidance allows the entity to consider the mitigating effects of management's plans that will alleviate the substantial doubt and requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans. If conditions or events raise substantial doubt that is not alleviated, an entity should disclose that there is substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations and management's plans that are intended to mitigate those conditions. The updated guidance was effective for annual periods ending after December 15, 2016, and interim and annual periods thereafter. The adoption of this guidance did not have any effect on the Company's results of operations, financial position or liquidity.
\nDerivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity
\nIn November 2014, the FASB issued updated guidance to clarify when the separation of certain embedded derivative features in a hybrid financial instrument that is issued in the form of a share is required. That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract. Specifically, the updated guidance clarifies that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract.
\nFurthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nConsolidation: Amendments to the Consolidation Analysis
\nIn February 2015, the FASB issued updated guidance that makes targeted amendments to the current consolidation accounting guidance. The update is in response to accounting complexity concerns, particularly from the asset management industry. The guidance simplifies consolidation accounting by reducing the number of approaches to consolidation, provides a scope exception to registered money market funds and similar unregistered money market funds and ends the indefinite deferral granted to investment companies from applying the variable interest entity guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nInterest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs
\nIn April 2015, the FASB issued updated guidance to clarify the required presentation of debt issuance costs. The updated guidance requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the recognized debt liability, consistent with the treatment of debt discounts. Amortization of debt issuance costs is to be reported as interest expense. The recognition and measurement guidance for debt issuance costs are not affected by the updated guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The updated guidance is consistent with the Company's accounting policy and its adoption did not have any effect on the Company's results of operations, financial position or liquidity.
\nBusiness Combinations: Simplifying the Accounting for Measurement-Period Adjustments
\nIn September 2015, the FASB issued updated guidance regarding business combinations that requires an acquirer to recognize post-close measurement adjustments for provisional amounts in the period the adjustment amounts are determined rather than retrospectively. The acquirer is also required to recognize, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the provisional amount, calculated as if the accounting had been completed at the acquisition date. The updated guidance is to be applied prospectively effective for reporting periods beginning after December 15, 2015. In connection with business combinations which have already been completed, the adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nCompensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting
\nIn March 2016, the FASB issued updated guidance to simplify several aspects of accounting for share-based payment transactions as follows:
\nAccounting for Income Taxes
\nUnder current accounting guidance, if the deduction for a share-based payment award for tax purposes exceeds, or is less than, the compensation cost recognized for financial reporting purposes, the resulting excess tax benefit, or tax deficiency, is reported as part of additional paid-in capital. Under the updated guidance, these excess tax benefits, or tax deficiencies, are reported as part of income tax expense or benefit in the income statement. The updated guidance also removes the requirement to delay recognition of any excess tax benefit when there are no current taxes payable to which the benefit would be applied. The tax-related cash flows resulting from share-based payments are to be included with other income tax cash flows as an operating activity rather than being reported separately as a financing activity.
\nForfeitures
\nThe updated guidance permits an entity to make an accounting policy election to either account for forfeitures when they occur or continue to apply the current method of accruing the compensation cost based on the number of awards that are expected to vest.
\nMinimum Statutory Tax Withholding Requirements
\nThe updated guidance changes the threshold amount an entity can withhold for taxes when settling an equity award and still qualify for equity classification. A company can withhold up to the maximum statutory tax rates in the employees' applicable jurisdiction rather than withholding up to the employers' minimum statutory withholding requirement. The update also clarifies that all cash payments made to taxing authorities on behalf of employees for withheld shares are to be presented in financing activities on the statement of cash flows.
\nTransition
\nThe updated guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted in any interim period; if early adoption is elected, the entity must adopt all of the amendments in the same reporting period and reflect any adjustments as of the beginning of the fiscal year.
\nThe Company adopted the updated guidance effective January 1, 2016. With respect to the forfeiture accounting policy election, the Company elected to retain its policy of accruing the compensation cost based on the number of awards that are expected to vest. The adoption did not result in any cumulative effect adjustments or restatement and did not have a material effect on the Company's results of operations, financial position or liquidity.
\nOther Accounting Standards Not Yet Adopted
\nRevenue from Contracts with Customers
\nIn May 2014, the FASB issued updated guidance to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's fee income related to providing claims and policy management services as well as claim and loss prevention services will be subject to this updated guidance.
\nThe updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation.
\nThe updated guidance is effective for the quarter ending March 31, 2018. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity.
\nFinancial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities
\nIn January 2016, the FASB issued updated guidance to address the recognition, measurement, presentation, and disclosure of certain financial instruments. The updated guidance requires equity investments, except those accounted for under the equity method of accounting, that have readily determinable fair value to be measured at fair value with changes in fair value recognized in net income. Equity investments that do not have readily determinable fair values may be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The updated guidance is effective for the quarter ending March 31, 2018 and will require recognition of a cumulative effect adjustment at adoption. Based on the equity investments currently held by the Company, there would not be a material effect on the Company's results of operations, financial position or liquidity if the new guidance were able to be adopted in the current accounting period. The impact on the Company's results of operations, financial position or liquidity at the date of adoption of the updated guidance will be determined by the equity investments held by the Company and the economic conditions at that time.
\nLeases
\nIn February 2016, the FASB issued updated guidance to require lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than 12 months. The updated guidance retains the two classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record the right-to-use asset and the lease liability based upon the present value of cash flows. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-to-use asset. Operating leases will recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is not significantly changed by the updated guidance. The updated guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the financial statements.
\nThe updated guidance is effective for reporting periods beginning after December 15, 2018, and will require that the earliest comparative period presented include the measurement and recognition of existing leases with an adjustment to equity as if the updated guidance had always been applied. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity.
\nInvestments—Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting
\nIn March 2016, the FASB issued updated guidance that eliminates the requirement to retroactively apply the equity method of accounting when an investment that was previously accounted for using another method of accounting becomes qualified to apply the equity method due to an increase in the level of ownership interest or degree of influence. If the investment was previously accounted for as an available-for-sale security, any related unrealized gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for the equity method is recognized through earnings. The updated guidance is effective for reporting periods beginning after December 15, 2016, and is to be applied prospectively. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity.
\nDerivatives and Hedging: Contingent Put and Call Options in Debt Instruments
\nIn March 2016, the FASB issued updated guidance clarifying that when a call (put) option in a debt instrument is contingently exercisable, the event that triggers the ability to exercise the option is considered to be clearly and closely related to the debt instrument (i.e., the economic characteristics and risks of the option are related to interest rates or credit risks) and the entity does not have to assess whether the option should be accounted for separately. The updated guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity.
\nFinancial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments
\nIn June 2016, the FASB issued updated guidance for the accounting for credit losses for financial instruments. The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (e.g. reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected.
\nThe updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security's amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists.
\nThe updated guidance is effective for reporting periods beginning after December 15, 2019. Early adoption is permitted for reporting periods beginning after December 15, 2018. Based on the financial instruments currently held by the Company, there would not be a material effect on the Company's results of operations, financial position or liquidity if the new guidance were able to be adopted in the current accounting period. The impact on the Company's results of operations, financial position or liquidity at the date of adoption of the updated guidance will be determined by the financial instruments held by the Company and the economic conditions at that time.
\nIntangibles—Goodwill and Other
\nIn January 2017, the FASB issued updated guidance that eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge by comparing a reporting unit's fair value with its carrying amount and recognizing an impairment charge for the excess of the carrying amount over estimated fair value (i.e., Step 1 of current guidance). The implied fair value of goodwill is currently determined in Step 2 by deducting the fair value of all assets and liabilities of the reporting unit (determined in the same manner as a business combination) from the reporting unit's fair value as determined in Step 1 (including any corporate-level assets or liabilities that were included in the determination of the carrying amount and fair value of the reporting unit in Step 1). The updated guidance requires an entity to perform its annual, or interim, impairment test by either: (1) an initial qualitative assessment of factors (such as changes in management, key personnel, strategy, key technology or customers) that may impact a reporting unit's fair value and lead to the determination that it is more likely than not that the reporting unit's fair value is less than its carrying value, including goodwill (consistent with current guidance), or (2) applying Step 1.
\nThe updated guidance is effective for reporting periods beginning after December 15, 2019 and is to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity.
\nAccounting Policies
\nInvestments
\nFixed Maturity and Equity Securities
\nFixed maturities include bonds, notes and redeemable preferred stocks. Fixed maturities, including instruments subject to securities lending agreements, are classified as available for sale and are reported at fair value, with unrealized investment gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Equity securities, which include public common and non-redeemable preferred stocks, are classified as available for sale and are reported at fair value with unrealized gains and losses, net of income taxes, charged or credited directly to other comprehensive income.
\nReal Estate Investments
\nThe Company's real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. Real estate is recorded on the purchase date at the purchase price, which generally represents fair value, and is supported by internal analysis or external appraisals that use discounted cash flow analyses and other acceptable valuation techniques. Real estate held for investment purposes is subsequently carried at cost less accumulated depreciation.
\nBuildings are depreciated on a straight-line basis over the shorter of the expected useful life of the building or 39 years. Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell.
\nShort-term Securities
\nShort-term securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value.
\nOther Investments
\nInvestments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships
\nThe Company uses the equity method of accounting for investments in private equity limited partnerships, hedge funds and real estate partnerships. The partnerships and the hedge funds generally report investments on their balance sheet at fair value. The financial statements prepared by the investee are received by the Company on a lag basis, with the lag period generally dependent upon the type of underlying investments. The private equity and real estate partnerships provide financial information quarterly which is generally available to investors, including the Company, within three to six months following the date of the reporting period. The hedge funds provide financial information monthly, which is generally available to investors within one month following the date of the reporting period. The Company regularly requests financial information from the partnerships prior to the receipt of the partnerships' financial statements and records any material information obtained from these requests in its consolidated financial statements.
\nOther
\nAlso included in other investments are non-public common equities, preferred equities and derivatives. Non-public common equities and preferred equities are reported at fair value with changes in fair value, net of income taxes, charged or credited directly to other comprehensive income. The Company's derivative financial instruments are carried at fair value, with the changes in fair value reflected in the consolidated statement of income in net realized investment gains (losses). For a further discussion of the derivatives used by the Company, see note 3.
\nNet Investment Income
\nInvestment income from fixed maturities is recognized based on the constant effective yield method which includes an adjustment for estimated principal pre-payments, if any. The effective yield used to determine amortization for fixed maturities subject to prepayment risk (e.g., asset-backed, loan-backed and structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows, which are obtained from a widely-accepted securities data provider. The adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for non-highly rated prepayable fixed maturities are accounted for using the prospective method. Dividends on equity securities (including those with transfer restrictions) are recognized in income when declared. Rental income on real estate is recognized on a straight-line basis over the lease term. See the section titled: Real Estate in note 3 for further discussion. Investments in private equity limited partnerships, hedge funds, real estate partnerships and joint ventures are accounted for using the equity method of accounting, whereby the Company's share of the investee's earnings or losses in the fund is reported in net investment income.
\nAccrual of income is suspended on non-securitized fixed maturities that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only when payments are received. Investments included in the consolidated balance sheet that were not income-producing for the preceding 12 months were not material.
\nFor fixed maturities where the Company records an other-than-temporary impairment, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. For fixed maturities where the Company expects a recovery in value, not necessarily to par, the constant effective yield method is utilized, and the investment is amortized to the expected recovery amount.
\nInvestment Gains and Losses
\nNet realized investment gains and losses are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Included in net realized investment gains (losses) are other-than-temporary impairment losses on invested assets other than those investments accounted for using the equity method of accounting as described in the \"Investment Impairments\" section that follows.
\nInvestment Impairments
\nThe Company conducts a periodic review to identify and evaluate invested assets having other-than-temporary impairments. Some of the factors considered in identifying other-than-temporary impairments include: (1) for fixed maturity investments, whether the Company intends to sell the investment or whether it is more likely than not that the Company will be required to sell the investment prior to an anticipated recovery in value; (2) for non-fixed maturity investments, the Company's ability and intent to retain the investment for a reasonable period of time sufficient to allow for an anticipated recovery in value; (3) the likelihood of the recoverability of principal and interest for fixed maturity securities (i.e., whether there is a credit loss) or cost for equity securities; (4) the length of time and extent to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities; and (5) the financial condition, near-term and long-term prospects for the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices.
\nOther-Than-Temporary Impairments of Fixed Maturities and Equity Securities
\nFor fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component in net realized investment gains (losses). The impairment related to all other factors is reported in other comprehensive income.
\nFor equity securities (including public common and non-redeemable preferred stock) and for fixed maturity investments the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount of the impairment is included in net realized investment gains (losses).
\nUpon recognizing an other-than-temporary impairment, the new cost basis of the investment is the previous amortized cost basis less the other-than-temporary impairment recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value; however, for fixed maturity investments the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining expected life of the investment.
\nDetermination of Credit Loss—Fixed Maturities
\nThe Company determines the credit loss component of fixed maturity investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater than the present value of the expected cash flows, the difference is considered a credit loss and recognized in net realized investment gains (losses).
\nFor non-structured fixed maturities (U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, obligations of states, municipalities and political subdivisions, debt securities issued by foreign governments and certain corporate debt), the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. The determination of recovery value incorporates an issuer valuation assumption utilizing one or a combination of valuation methods as deemed appropriate by the Company. The Company determines the undiscounted recovery value by allocating the estimated value of the issuer to the Company's assessment of the priority of claims. The present value of the cash flows is determined by applying the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment) and an estimated recovery time frame. Generally, that time frame for securities for which the issuer is in bankruptcy is 12 months. For securities for which the issuer is financially troubled but not in bankruptcy, that time frame is generally 24 months. Included in the present value calculation are expected principal and interest payments; however, for securities for which the issuer is classified as bankrupt or in default, the present value calculation assumes no interest payments and a single recovery amount.
\nIn estimating the recovery value, significant judgment is involved in the development of assumptions relating to a myriad of factors related to the issuer including, but not limited to, revenue, margin and earnings projections, the likely market or liquidation values of assets, potential additional debt to be incurred pre- or post-bankruptcy/restructuring, the ability to shift existing or new debt to different priority layers, the amount of restructuring/bankruptcy expenses, the size and priority of unfunded pension obligations, litigation or other contingent claims, the treatment of intercompany claims and the likely outcome with respect to inter-creditor conflicts.
\nFor structured fixed maturity securities (primarily residential and commercial mortgage-backed securities and asset-backed securities), the Company estimates the present value of the security by projecting future cash flows of the assets underlying the securitization, allocating the flows to the various tranches based on the structure of the securitization and determining the present value of the cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). The Company incorporates levels of delinquencies, defaults and severities as well as credit attributes of the remaining assets in the securitization, along with other economic data, to arrive at its best estimate of the parameters applied to the assets underlying the securitization. In order to project cash flows, the following assumptions are applied to the assets underlying the securitization: (1) voluntary prepayment rates, (2) default rates and (3) loss severity. The key assumptions made for the Prime, Alt-A and first-lien Sub-Prime mortgage-backed securities at December 31, 2016 were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016) \n | \n\n | Prime | \n\n | Alt-A | \n\n | Sub-Prime | \n
|---|---|---|---|---|---|---|
| \n Voluntary prepayment rates \n | \n\n | 0% - 35% | \n\n | 4% - 15% | \n\n | 3% - 12% | \n
| \n Percentage of remaining pool liquidated due to defaults \n | \n\n | 0% - 46% | \n\n | 20% - 73% | \n\n | 22% - 52% | \n
| \n Loss severity \n | \n\n | 30% - 65% | \n\n | 42% - 90% | \n\n | 75% - 110% | \n
Real Estate Investments
\nOn at least an annual basis, the Company obtains independent appraisals for substantially all of its real estate investments. In addition, the carrying value of all real estate investments is reviewed for impairment on a quarterly basis or when events or changes in circumstances indicate that the carrying amount may not be recoverable. The review for impairment considers the valuation from the independent appraisal, when applicable, and incorporates an estimate of the undiscounted cash flows expected to result from the use and eventual disposition of the real estate property. An impairment loss is recognized if the expected future undiscounted cash flows are less than the carrying value of the real estate property. The impairment loss is the amount by which the carrying amount exceeds fair value.
\nOther Investments
\nInvestments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships
\nThe Company reviews its investments in private equity limited partnerships, hedge funds and real estate partnerships for impairment no less frequently than quarterly and monitors the performance throughout the year through discussions with the managers/general partners. If the Company becomes aware of an impairment of a partnership's investments at the balance sheet date prior to receiving the partnership's financial statements, it will recognize an impairment by recording a reduction in the carrying value of the partnership with a corresponding charge to net investment income.
\nChanges in Intent to Sell Temporarily Impaired Assets
\nThe Company may, from time to time, sell invested assets subsequent to the balance sheet date that it did not intend to sell at the balance sheet date. Conversely, the Company may not sell invested assets that it asserted that it intended to sell at the balance sheet date. Such changes in intent are due to events occurring subsequent to the balance sheet date. The types of events that may result in a change in intent include, but are not limited to, significant changes in the economic facts and circumstances related to the invested asset (e.g., a downgrade or upgrade from a rating agency), significant unforeseen changes in liquidity needs, or changes in tax laws or the regulatory environment.
\nSecurities Lending
\nThe Company has engaged in securities lending activities from which it generates net investment income by lending certain of its investments to other institutions for short periods of time. Borrowers of these securities provide collateral equal to at least 102% of the market value of the loaned securities plus accrued interest. This collateral is held by a third-party custodian, and the Company has the right to access the collateral only in the event that the institution borrowing the Company's securities is in default under the lending agreement. Therefore, the Company does not recognize the receipt of the collateral held by the third-party custodian or the obligation to return the collateral. The loaned securities remain a recorded asset of the Company. The Company accepts only cash as collateral for securities on loan and restricts the manner in which that cash is invested.
\nReinsurance Recoverables
\nAmounts recoverable from reinsurers are estimated in a manner consistent with the associated claim liability. The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance recoverables. The allowance is based upon the Company's ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. Amounts deemed to be uncollectible, including amounts due from known insolvent reinsurers, are written off against the allowance for estimated uncollectible reinsurance recoverables. Any subsequent collections of amounts previously written off are reported as part of claims and claim adjustment expenses. The Company evaluates and monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to minimize its exposure to significant losses from reinsurer insolvencies.
\nDeferred Acquisition Costs
\nIncremental direct costs of acquired, new and renewal insurance contracts, consisting of commissions (other than contingent commissions) and premium-related taxes, are capitalized and charged to expense pro rata over the contract periods in which the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income and, if not, are charged to expense. Future investment income attributable to related premiums is taken into account in measuring the recoverability of the carrying value of this asset. All other acquisition expenses are charged to operations as incurred.
\nContractholder Receivables and Payables
\nUnder certain workers' compensation insurance contracts with deductible features, the Company is obligated to pay the claimant for the full amount of the claim. The Company is subsequently reimbursed by the policyholder for the deductible amount. These amounts are included on a gross basis in the consolidated balance sheet in contractholder payables and contractholder receivables, respectively.
\nGoodwill and Other Intangible Assets
\nThe Company performs a review, on at least an annual basis, of goodwill held by the reporting units which are the Company's three operating and reportable segments: Business and International Insurance; Bond & Specialty Insurance; and Personal Insurance. The Company estimates the fair value of its reporting units and compares it to their carrying value, including goodwill. If the carrying values of the reporting units were to exceed their fair value, the amount of the impairment would be calculated and goodwill adjusted accordingly.
\nThe Company uses a discounted cash flow model to estimate the fair value of its reporting units. The discounted cash flow model is an income approach to valuation that is based on a detailed cash flow analysis for deriving a current fair value of reporting units and is representative of the Company's reporting units' current and expected future financial performance. The discount rate assumptions reflect the Company's assessment of the risks inherent in the projected future cash flows and the Company's weighted-average cost of capital, and are compared against available market data for reasonableness.
\nOther indefinite-lived intangible assets held by the Company are also reviewed for impairment on at least an annual basis. The classification of the asset as indefinite-lived is reassessed and an impairment is recognized if the carrying amount of the asset exceeds its fair value.
\nIntangible assets that are deemed to have a finite useful life are amortized over their useful lives. The carrying amount of intangible assets with a finite useful life is regularly reviewed for indicators of impairment in value. Impairment is recognized only if the carrying amount of the intangible asset is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the fair value of the asset.
\nAs a result of the reviews performed for the years ended December 31, 2016, 2015 and 2014, the Company determined that the estimated fair value substantially exceeded the respective carrying value of its reporting units for those years and that goodwill was not impaired. The Company also determined during its reviews for each year that its other indefinite-lived intangible assets and finite-lived intangible assets were not impaired.
\nClaims and Claim Adjustment Expense Reserves
\nClaims and claim adjustment expense reserves represent estimates for the ultimate cost of unpaid reported and unreported claims incurred and related expenses. The reserves are adjusted regularly based upon experience. Included in the claims and claim adjustment expense reserves in the consolidated balance sheet are reserves for long-term disability and annuity claim payments, primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, that are discounted to the present value of estimated future payments.
\nThe Company performs a continuing review of its claims and claim adjustment expense reserves, including its reserving techniques and the impact of reinsurance. The reserves are also reviewed regularly by qualified actuaries employed by the Company. Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are included in the results of operations in the period in which the estimates are changed. Such changes in estimates could occur in a future period and may be material to the Company's results of operations and financial position in such period.
\nOther Liabilities
\nIncluded in other liabilities in the consolidated balance sheet is the Company's estimate of its liability for guaranty fund and other insurance-related assessments. The liability for expected state guaranty fund and other premium-based assessments is recognized as the Company writes or becomes obligated to write or renew the premiums on which the assessments are expected to be based. The liability for loss-based assessments is recognized as the related losses are incurred. At December 31, 2016 and 2015, the Company had a liability of $242 million and $241 million, respectively, for guaranty fund and other insurance-related assessments and related recoverables of $16 million and $18 million, respectively. The liability for such assessments and the related recoverables are not discounted for the time value of money. The loss-based assessments are expected to be paid over a period ranging from one year to the life expectancy of certain workers' compensation claimants and the recoveries are expected to occur over the same period of time.
\nAlso included in other liabilities is an accrual for policyholder dividends. Certain insurance contracts, primarily workers' compensation, are participating whereby dividends are paid to policyholders in accordance with contract provisions. Net written premiums for participating dividend policies were approximately 1%, 2% and 1% of total net written premiums for the years ended December 31, 2016, 2015 and 2014, respectively. Policyholder dividends are accrued against earnings using best available estimates of amounts to be paid. The liability accrued for policyholder dividends totaled $62 million and $57 million at December 31, 2016 and 2015, respectively.
\nTreasury Stock
\nThe cost of common stock repurchased by the Company is reported as treasury stock and represents authorized and unissued shares of the Company under the Minnesota Business Corporation Act.
\nStatutory Accounting Practices
\nThe Company's U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. The State of Connecticut requires insurers domiciled in Connecticut to prepare their statutory financial statements in accordance with National Association of Insurance Commissioners' (NAIC) statutory accounting practices.
\nPermitted statutory accounting practices are those practices that differ either from state-prescribed statutory accounting practices or NAIC statutory accounting practices.
\nThe Company does not apply any statutory accounting practices that would be considered a prescribed or permitted statutory accounting practice that differs from NAIC statutory accounting practices.
\nThe Company's non-U.S. insurance subsidiaries file financial statements prepared in accordance with the regulatory reporting requirements of their respective local jurisdiction.
\nPremiums and Unearned Premium Reserves
\nPremiums are recognized as revenues pro rata over the policy period. Unearned premium reserves represent the unexpired portion of policy premiums. Accrued retrospective premiums are included in premium balances receivable. Premium balances receivable are reported net of an allowance for estimated uncollectible premium amounts.
\nCeded premiums are charged to income over the applicable term of the various reinsurance contracts with third party reinsurers. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers and are reported as part of other assets.
\nFee Income
\nFee income includes servicing fees from carriers and revenues from large deductible policies and service contracts and is recognized pro rata over the contract or policy periods.
\nOther Revenues
\nOther revenues include revenues from premium installment charges, which are recognized as collected, revenues of noninsurance subsidiaries other than fee income and gains and losses on dispositions of assets and redemption of debt, and other miscellaneous revenues including a gain recognized as a result of the settlement of a reinsurance dispute.
\nIncome Taxes
\nThe Company recognizes deferred income tax assets and liabilities for the expected future tax effects attributable to temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized.
\nForeign Currency Translation
\nThe Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency, and the resulting foreign exchange gains or losses are reflected in earnings. Functional currency amounts are then translated into U.S. dollars. The foreign currency remeasurement and translation are calculated using current exchange rates for items reported in the balance sheets and average exchange rates for items recorded in earnings. The change in unrealized foreign currency translation gain or loss during the year, net of tax, is a component of other comprehensive income.
\nShare-Based Compensation
\nThe Company has an employee stock incentive compensation plan that permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, deferred stock, stock units, performance awards and other share-based or share-denominated awards with respect to the Company's common stock.
\nCompensation cost is measured based on the grant-date fair value of an award, utilizing the assumptions discussed in note 13. Compensation cost is recognized for financial reporting purposes over the period in which the employee is required to provide service in exchange for the award (generally the vesting period). In connection with certain share-based awards, participants are entitled to receive dividends during the vesting period, either in cash or dividend equivalent shares, commensurate with the dividends paid to common shareholders. Dividends and dividend equivalent shares on awards that are expected to vest are recorded in retained earnings. Dividends paid on awards that are not expected to vest as part of the Company's forfeiture estimate are recorded as compensation expense.
\nNature of Operations
\nThe Company is organized into three reportable business segments: Business and International Insurance; Bond & Specialty Insurance; and Personal Insurance. These segments reflect the manner in which the Company's businesses are currently managed and represent the aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. The specific business segments are as follows:
\nBusiness and International Insurance
\nBusiness and International Insurance offers a broad array of property and casualty insurance and insurance related services to its clients, primarily in the United States and in Canada, as well as in the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world as a corporate member of Lloyd's. Business and International Insurance is organized as follows:
\nDomestic
\nInternational
\nInternational also includes results from J. Malucelli Participações em Seguros e Resseguros S.A. (JMalucelli) and J. Malucelli Latam S.A. in Brazil. The Company owns 49.5% of both JMalucelli, a market leader in surety coverages in Brazil, and J. Malucelli Latam S.A., which in September 2015 acquired a majority interest in JMalucelli Travelers Seguros S.A., a Colombian start-up surety provider. These joint venture investments are accounted for using the equity method and are included in \"other investments\" on the consolidated balance sheet. Also, as a result of a transaction that was completed in October 2015 with Paraná Banco S.A., the Company's joint venture partner in Brazil, the Company acquired 100% of the common stock of Travelers Participações em Seguros Brasil S.A., which comprises JMalucelli's former property and casualty insurance business other than surety. The Company consolidates this investment in its financial statements and includes Paraná Banco S.A.'s preferred stock interest in \"other liabilities.\"
\nBusiness and International Insurance also includes the Special Liability Group (which manages the Company's asbestos and environmental liabilities) and the assumed reinsurance and certain other runoff operations, which are collectively referred to as Business and International Insurance Other.
\nBond & Specialty Insurance
\nBond & Specialty Insurance provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to a wide range of primarily domestic customers, utilizing various degrees of financially-based underwriting approaches. The range of coverages includes performance, payment and commercial surety and fidelity bonds for construction and general commercial enterprises; management liability coverages including directors and officers liability, employee dishonesty, employment practices liability, fiduciary liability and cyber risk for public corporations, private companies and not-for-profit organizations; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; and management liability, professional liability, property, workers' compensation, auto and general liability for financial institutions.
\nPersonal Insurance
\nPersonal Insurance writes a broad range of property and casualty insurance covering individuals' personal risks. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.
\nAutomobile policies provide coverage for liability to others for both bodily injury and property damage, uninsured motorist protection, and for physical damage to an insured's own vehicle from collision, fire, flood, hail and theft. In addition, many states require policies to provide first-party personal injury protection, frequently referred to as no-fault coverage.
\nHomeowners policies provide protection against losses to dwellings and contents from a variety of perils (excluding flooding) as well as coverage for personal liability. The Company writes homeowners insurance for dwellings, condominiums and tenants, and rental properties. The Company also writes coverage for boats and yachts and valuable personal items such as jewelry, and also writes coverages for umbrella liability, identity fraud, and weddings and special events.
\n2. SEGMENT INFORMATION
\nThe accounting policies used to prepare the segment reporting data for the Company's three reportable business segments are the same as those described in the Summary of Significant Accounting Policies in note 1.
\nExcept as described below for certain legal entities, the Company allocates its invested assets and the related net investment income to its reportable business segments. Pre-tax net investment income is allocated based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment. For investable funds, a benchmark investment yield is developed that reflects the estimated duration of the loss reserves' future cash flows, the interest rate environment at the time the losses were incurred and A+ rated corporate debt instrument yields. For capital, a benchmark investment yield is developed that reflects the average yield on the total investment portfolio. The benchmark investment yields are applied to each segment's investable funds and capital, respectively, to produce a total notional investment income by segment. The Company's actual net investment income is allocated to each segment in proportion to the respective segment's notional investment income to total notional investment income. There are certain legal entities within the Company that are dedicated to specific reportable business segments. The invested assets and related net investment income from these legal entities are reported in the applicable business segment and are not allocated among the other business segments.
\nThe cost of the Company's catastrophe treaty program is included in the Company's ceded premiums and is allocated among reportable business segments based on an estimate of actual market reinsurance pricing using expected losses calculated by the Company's catastrophe model, adjusted for any experience adjustments.
\nThe following tables summarize the components of the Company's operating revenues, operating income, net written premiums and total assets by reportable business segments.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | Business and \nInternational \nInsurance | \n\n | Bond & \nSpecialty \nInsurance | \n\n | Personal \nInsurance | \n\n | Total \nReportable \nSegments | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n14,620 | \n\n | $ | \n2,088 | \n\n | $ | \n7,826 | \n\n | $ | \n24,534 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,763 | \n\n | \n | 210 | \n\n | \n | 329 | \n\n | \n | 2,302 | \n\n |
| \n Fee income \n | \n\n | \n | 442 | \n\n | \n | — | \n\n | \n | 16 | \n\n | \n | 458 | \n\n |
| \n Other revenues \n | \n\n | \n | 176 | \n\n | \n | 20 | \n\n | \n | 56 | \n\n | \n | 252 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues(1) \n | \n\n | $ | \n17,001 | \n\n | $ | \n2,318 | \n\n | $ | \n8,227 | \n\n | $ | \n27,546 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amortization and depreciation \n | \n\n | $ | \n2,956 | \n\n | $ | \n457 | \n\n | $ | \n1,391 | \n\n | $ | \n4,804 | \n\n |
| \n Income tax expense \n | \n\n | \n | 659 | \n\n | \n | 307 | \n\n | \n | 191 | \n\n | \n | 1,157 | \n\n |
| \n Operating income(1) \n | \n\n | \n | 2,048 | \n\n | \n | 653 | \n\n | \n | 510 | \n\n | \n | 3,211 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Premiums \n | \n\n | $ | \n14,521 | \n\n | $ | \n2,085 | \n\n | $ | \n7,268 | \n\n | $ | \n23,874 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,824 | \n\n | \n | 223 | \n\n | \n | 332 | \n\n | \n | 2,379 | \n\n |
| \n Fee income \n | \n\n | \n | 445 | \n\n | \n | — | \n\n | \n | 15 | \n\n | \n | 460 | \n\n |
| \n Other revenues \n | \n\n | \n | 23 | \n\n | \n | 22 | \n\n | \n | 48 | \n\n | \n | 93 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues(1) \n | \n\n | $ | \n16,813 | \n\n | $ | \n2,330 | \n\n | $ | \n7,663 | \n\n | $ | \n26,806 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amortization and depreciation \n | \n\n | $ | \n2,907 | \n\n | $ | \n467 | \n\n | $ | \n1,322 | \n\n | $ | \n4,696 | \n\n |
| \n Income tax expense \n | \n\n | \n | 769 | \n\n | \n | 272 | \n\n | \n | 402 | \n\n | \n | 1,443 | \n\n |
| \n Operating income(1) \n | \n\n | \n | 2,170 | \n\n | \n | 633 | \n\n | \n | 889 | \n\n | \n | 3,692 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Premiums \n | \n\n | $ | \n14,512 | \n\n | $ | \n2,076 | \n\n | $ | \n7,125 | \n\n | $ | \n23,713 | \n\n |
| \n Net investment income \n | \n\n | \n | 2,156 | \n\n | \n | 252 | \n\n | \n | 379 | \n\n | \n | 2,787 | \n\n |
| \n Fee income \n | \n\n | \n | 438 | \n\n | \n | — | \n\n | \n | 12 | \n\n | \n | 450 | \n\n |
| \n Other revenues \n | \n\n | \n | 46 | \n\n | \n | 19 | \n\n | \n | 80 | \n\n | \n | 145 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues(1) \n | \n\n | $ | \n17,152 | \n\n | $ | \n2,347 | \n\n | $ | \n7,596 | \n\n | $ | \n27,095 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amortization and depreciation \n | \n\n | $ | \n2,909 | \n\n | $ | \n482 | \n\n | $ | \n1,347 | \n\n | $ | \n4,738 | \n\n |
| \n Income tax expense \n | \n\n | \n | 798 | \n\n | \n | 348 | \n\n | \n | 366 | \n\n | \n | 1,512 | \n\n |
| \n Operating income(1) \n | \n\n | \n | 2,347 | \n\n | \n | 727 | \n\n | \n | 824 | \n\n | \n | 3,898 | \n\n |
Net written premiums by market were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Business and International Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Domestic: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Select Accounts \n | \n\n | $ | \n2,729 | \n\n | $ | \n2,716 | \n\n | $ | \n2,707 | \n\n |
| \n Middle Market \n | \n\n | \n | 6,463 | \n\n | \n | 6,302 | \n\n | \n | 6,077 | \n\n |
| \n National Accounts \n | \n\n | \n | 1,058 | \n\n | \n | 1,048 | \n\n | \n | 1,047 | \n\n |
| \n First Party \n | \n\n | \n | 1,601 | \n\n | \n | 1,564 | \n\n | \n | 1,579 | \n\n |
| \n Specialized Distribution \n | \n\n | \n | 1,094 | \n\n | \n | 1,111 | \n\n | \n | 1,074 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Domestic \n | \n\n | \n | 12,945 | \n\n | \n | 12,741 | \n\n | \n | 12,484 | \n\n |
| \n International \n | \n\n | \n | 1,730 | \n\n | \n | 1,842 | \n\n | \n | 2,152 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Business and International Insurance \n | \n\n | \n | 14,675 | \n\n | \n | 14,583 | \n\n | \n | 14,636 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Bond & Specialty Insurance \n | \n\n | \n | 2,099 | \n\n | \n | 2,081 | \n\n | \n | 2,103 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Personal Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Automobile \n | \n\n | \n | 4,327 | \n\n | \n | 3,700 | \n\n | \n | 3,390 | \n\n |
| \n Homeowners and Other \n | \n\n | \n | 3,857 | \n\n | \n | 3,757 | \n\n | \n | 3,775 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Personal Insurance \n | \n\n | \n | 8,184 | \n\n | \n | 7,457 | \n\n | \n | 7,165 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated net written premiums \n | \n\n | $ | \n24,958 | \n\n | $ | \n24,121 | \n\n | $ | \n23,904 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Business Segment Reconciliations
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenue reconciliation \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Earned premiums \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Business and International Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Domestic: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Workers' compensation \n | \n\n | $ | \n3,969 | \n\n | $ | \n3,867 | \n\n | $ | \n3,711 | \n\n |
| \n Commercial automobile \n | \n\n | \n | 2,010 | \n\n | \n | 1,922 | \n\n | \n | 1,900 | \n\n |
| \n Commercial property \n | \n\n | \n | 1,769 | \n\n | \n | 1,766 | \n\n | \n | 1,747 | \n\n |
| \n General liability \n | \n\n | \n | 1,977 | \n\n | \n | 1,898 | \n\n | \n | 1,834 | \n\n |
| \n Commercial multi-peril \n | \n\n | \n | 3,148 | \n\n | \n | 3,133 | \n\n | \n | 3,071 | \n\n |
| \n Other \n | \n\n | \n | 31 | \n\n | \n | 39 | \n\n | \n | 42 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Domestic \n | \n\n | \n | 12,904 | \n\n | \n | 12,625 | \n\n | \n | 12,305 | \n\n |
| \n International \n | \n\n | \n | 1,716 | \n\n | \n | 1,896 | \n\n | \n | 2,207 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Business and International Insurance \n | \n\n | \n | 14,620 | \n\n | \n | 14,521 | \n\n | \n | 14,512 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Bond & Specialty Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fidelity and surety \n | \n\n | \n | 962 | \n\n | \n | 954 | \n\n | \n | 936 | \n\n |
| \n General liability \n | \n\n | \n | 946 | \n\n | \n | 955 | \n\n | \n | 963 | \n\n |
| \n Other \n | \n\n | \n | 180 | \n\n | \n | 176 | \n\n | \n | 177 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Bond & Specialty Insurance \n | \n\n | \n | 2,088 | \n\n | \n | 2,085 | \n\n | \n | 2,076 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Personal Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Automobile \n | \n\n | \n | 4,013 | \n\n | \n | 3,512 | \n\n | \n | 3,316 | \n\n |
| \n Homeowners and Other \n | \n\n | \n | 3,813 | \n\n | \n | 3,756 | \n\n | \n | 3,809 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Personal Insurance \n | \n\n | \n | 7,826 | \n\n | \n | 7,268 | \n\n | \n | 7,125 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total earned premiums \n | \n\n | \n | 24,534 | \n\n | \n | 23,874 | \n\n | \n | 23,713 | \n\n |
| \n Net investment income \n | \n\n | \n | 2,302 | \n\n | \n | 2,379 | \n\n | \n | 2,787 | \n\n |
| \n Fee income \n | \n\n | \n | 458 | \n\n | \n | 460 | \n\n | \n | 450 | \n\n |
| \n Other revenues \n | \n\n | \n | 252 | \n\n | \n | 93 | \n\n | \n | 145 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues for reportable segments \n | \n\n | \n | 27,546 | \n\n | \n | 26,806 | \n\n | \n | 27,095 | \n\n |
| \n Other revenues \n | \n\n | \n | 11 | \n\n | \n | 6 | \n\n | \n | — | \n\n |
| \n Net realized investment gains \n | \n\n | \n | 68 | \n\n | \n | 3 | \n\n | \n | 79 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated revenues \n | \n\n | $ | \n27,625 | \n\n | $ | \n26,815 | \n\n | $ | \n27,174 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income reconciliation, net of tax \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Total operating income for reportable segments \n | \n\n | $ | \n3,211 | \n\n | $ | \n3,692 | \n\n | $ | \n3,898 | \n\n |
| \n Interest Expense and Other(1) \n | \n\n | \n | (244 | \n) | \n\n | (255 | \n) | \n\n | (257 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating income \n | \n\n | \n | 2,967 | \n\n | \n | 3,437 | \n\n | \n | 3,641 | \n\n |
| \n Net realized investment gains \n | \n\n | \n | 47 | \n\n | \n | 2 | \n\n | \n | 51 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated net income \n | \n\n | $ | \n3,014 | \n\n | $ | \n3,439 | \n\n | $ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Asset reconciliation: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Business and International Insurance \n | \n\n | $ | \n79,468 | \n\n | $ | \n79,692 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | 7,296 | \n\n | \n | 7,360 | \n\n |
| \n Personal Insurance \n | \n\n | \n | 13,118 | \n\n | \n | 12,748 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total assets for reportable segments \n | \n\n | \n | 99,882 | \n\n | \n | 99,800 | \n\n |
| \n Other assets(1) \n | \n\n | \n | 363 | \n\n | \n | 384 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated assets \n | \n\n | $ | \n100,245 | \n\n | $ | \n100,184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
Enterprise-Wide Disclosures
\nThe Company does not have revenue from transactions with a single customer amounting to 10 percent or more of its revenues.
\nThe following table presents revenues of the Company's operations based on location:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n U.S. \n | \n\n | $ | \n25,904 | \n\n | $ | \n25,127 | \n\n | $ | \n25,103 | \n\n |
| \n Non-U.S.: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Canada \n | \n\n | \n | 1,154 | \n\n | \n | 1,202 | \n\n | \n | 1,474 | \n\n |
| \n Other Non-U.S. \n | \n\n | \n | 567 | \n\n | \n | 486 | \n\n | \n | 597 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Non-U.S. \n | \n\n | \n | 1,721 | \n\n | \n | 1,688 | \n\n | \n | 2,071 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | $ | \n27,625 | \n\n | $ | \n26,815 | \n\n | $ | \n27,174 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
3. INVESTMENTS
\nFixed Maturities
\nThe amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross Unrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Amortized Cost | \n\n | Fair \nValue | \n\n | ||||||||
| \n (at December 31, 2016, in millions) \n | \n\n | Gains | \n\n | Losses | \n\n | ||||||||
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,031 | \n\n | $ | \n9 | \n\n | $ | \n5 | \n\n | $ | \n2,035 | \n\n |
| \n Obligations of states, municipalities and political subdivisions: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Local general obligation \n | \n\n | \n | 13,955 | \n\n | \n | 271 | \n\n | \n | 182 | \n\n | \n | 14,044 | \n\n |
| \n Revenue \n | \n\n | \n | 10,910 | \n\n | \n | 215 | \n\n | \n | 147 | \n\n | \n | 10,978 | \n\n |
| \n State general obligation \n | \n\n | \n | 1,717 | \n\n | \n | 36 | \n\n | \n | 22 | \n\n | \n | 1,731 | \n\n |
| \n Pre-refunded \n | \n\n | \n | 4,968 | \n\n | \n | 190 | \n\n | \n | 1 | \n\n | \n | 5,157 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total obligations of states, municipalities and political subdivisions \n | \n\n | \n | 31,550 | \n\n | \n | 712 | \n\n | \n | 352 | \n\n | \n | 31,910 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,631 | \n\n | \n | 34 | \n\n | \n | 3 | \n\n | \n | 1,662 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,614 | \n\n | \n | 100 | \n\n | \n | 6 | \n\n | \n | 1,708 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 22,737 | \n\n | \n | 508 | \n\n | \n | 138 | \n\n | \n | 23,107 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 87 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 93 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n59,650 | \n\n | $ | \n1,369 | \n\n | $ | \n504 | \n\n | $ | \n60,515 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross Unrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Amortized \nCost | \n\n | Fair \nValue | \n\n | ||||||||
| \n (at December 31, 2015, in millions) \n | \n\n | Gains | \n\n | Losses | \n\n | ||||||||
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,202 | \n\n | $ | \n8 | \n\n | $ | \n16 | \n\n | $ | \n2,194 | \n\n |
| \n Obligations of states, municipalities and political subdivisions: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Local general obligation \n | \n\n | \n | 12,744 | \n\n | \n | 577 | \n\n | \n | 3 | \n\n | \n | 13,318 | \n\n |
| \n Revenue \n | \n\n | \n | 9,492 | \n\n | \n | 472 | \n\n | \n | 4 | \n\n | \n | 9,960 | \n\n |
| \n State general obligation \n | \n\n | \n | 1,978 | \n\n | \n | 97 | \n\n | \n | 2 | \n\n | \n | 2,073 | \n\n |
| \n Pre-refunded \n | \n\n | \n | 5,813 | \n\n | \n | 247 | \n\n | \n | — | \n\n | \n | 6,060 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total obligations of states, municipalities and political subdivisions \n | \n\n | \n | 30,027 | \n\n | \n | 1,393 | \n\n | \n | 9 | \n\n | \n | 31,411 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,829 | \n\n | \n | 45 | \n\n | \n | 1 | \n\n | \n | 1,873 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,863 | \n\n | \n | 124 | \n\n | \n | 6 | \n\n | \n | 1,981 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 22,854 | \n\n | \n | 523 | \n\n | \n | 288 | \n\n | \n | 23,089 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 103 | \n\n | \n | 7 | \n\n | \n | — | \n\n | \n | 110 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n58,878 | \n\n | $ | \n2,100 | \n\n | $ | \n320 | \n\n | $ | \n60,658 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The amortized cost and fair value of fixed maturities by contractual maturity follow. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Amortized \nCost | \n\n | Fair \nValue | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Due in one year or less \n | \n\n | $ | \n5,619 | \n\n | $ | \n5,677 | \n\n |
| \n Due after 1 year through 5 years \n | \n\n | \n | 16,417 | \n\n | \n | 16,926 | \n\n |
| \n Due after 5 years through 10 years \n | \n\n | \n | 14,258 | \n\n | \n | 14,449 | \n\n |
| \n Due after 10 years \n | \n\n | \n | 21,742 | \n\n | \n | 21,755 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | 58,036 | \n\n | \n | 58,807 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,614 | \n\n | \n | 1,708 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n59,650 | \n\n | $ | \n60,515 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
Pre-refunded bonds of $5.16 billion and $6.06 billion at December 31, 2016 and 2015, respectively, were bonds for which states or municipalities have established irrevocable trusts, almost exclusively comprised of U.S. Treasury securities, which were created to satisfy their responsibility for payments of principal and interest.
\nThe Company's fixed maturity investment portfolio at December 31, 2016 and 2015 included $1.71 billion and $1.98 billion, respectively, of residential mortgage-backed securities, which include pass-through securities and collateralized mortgage obligations (CMOs). Included in the totals at December 31, 2016 and 2015 were $563 million and $676 million, respectively, of GNMA, FNMA, FHLMC (excluding FHA project loans) and Canadian government guaranteed residential mortgage-backed pass-through securities classified as available for sale. Also included in those totals were residential CMOs classified as available for sale with a fair value of $1.15 billion and $1.30 billion at December 31, 2016 and 2015, respectively. Approximately 51% and 48% of the Company's CMO holdings at December 31, 2016 and 2015, respectively, were guaranteed by or fully collateralized by securities issued by GNMA, FNMA or FHLMC. The average credit rating of the $566 million and $683 million of non-guaranteed CMO holdings at December 31, 2016 and 2015, respectively, was \"Baa2\" at both dates. The average credit rating of all of the above securities was \"Aa2\" and \"Aa3\" at December 31, 2016 and 2015, respectively.
\nAt December 31, 2016 and 2015, the Company held commercial mortgage-backed securities (CMBS, including FHA project loans) of $938 million and $865 million, respectively, which are included in \"All other corporate bonds\" in the tables above. At December 31, 2016 and 2015, approximately $290 million and $303 million of these securities, respectively, or the loans backing such securities, contained guarantees by the U.S. government or a government-sponsored enterprise. The average credit rating of the $648 million and $562 million of non-guaranteed securities at December 31, 2016 and 2015, respectively, was \"Aaa\" at both dates. The CMBS portfolio is supported by loans that are diversified across economic sectors and geographical areas. The average credit rating of the CMBS portfolio was \"Aaa\" at both December 31, 2016 and 2015.
\nAt December 31, 2016 and 2015, the Company had $286 million and $269 million, respectively, of securities on loan as part of a tri-party lending agreement.
\nProceeds from sales of fixed maturities classified as available for sale were $1.42 billion, $1.95 billion and $1.05 billion in 2016, 2015 and 2014, respectively. Gross gains of $79 million, $95 million and $44 million and gross losses of $20 million, $14 million and $12 million were realized on those sales in 2016, 2015 and 2014, respectively.
\nAt December 31, 2016 and 2015, the Company's insurance subsidiaries had $4.56 billion and $4.68 billion, respectively, of securities on deposit at financial institutions in certain states pursuant to the respective states' insurance regulatory requirements. Funds deposited with third parties to be used as collateral to secure various liabilities on behalf of insureds, cedants and other creditors had a fair value of $35 million and $28 million at December 31, 2016 and 2015, respectively. Other investments pledged as collateral securing outstanding letters of credit had a fair value of $3 million and $21 million at December 31, 2016 and 2015, respectively. In addition, the Company utilized a Lloyd's trust deposit at December 31, 2016 and 2015, whereby owned securities with a fair value of approximately $97 million and $140 million, respectively, held by an insurance subsidiary were pledged into a Lloyd's trust account to support capital requirements for the Company's operations at Lloyd's.
\nEquity Securities
\nThe cost and fair value of investments in equity securities were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross \nUnrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at December 31, 2016, in millions) \n | \n\n | Cost | \n\n | Gains | \n\n | Losses | \n\n | Fair Value | \n\n | ||||
| \n Public common stock \n | \n\n | $ | \n390 | \n\n | $ | \n216 | \n\n | $ | \n3 | \n\n | $ | \n603 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 114 | \n\n | \n | 20 | \n\n | \n | 5 | \n\n | \n | 129 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n504 | \n\n | $ | \n236 | \n\n | $ | \n8 | \n\n | $ | \n732 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross \nUnrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | | \n\n | Fair \nValue | \n\n | ||||||||
| \n (at December 31, 2015, in millions) \n | \n\n | Cost | \n\n | Gains | \n\n | Losses | \n\n | ||||||
| \n Public common stock \n | \n\n | $ | \n386 | \n\n | $ | \n164 | \n\n | $ | \n7 | \n\n | $ | \n543 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 142 | \n\n | \n | 26 | \n\n | \n | 6 | \n\n | \n | 162 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n528 | \n\n | $ | \n190 | \n\n | $ | \n13 | \n\n | $ | \n705 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Proceeds from sales of equity securities classified as available for sale were $92 million, $59 million and $158 million in 2016, 2015 and 2014, respectively. Gross gains of $17 million, $16 million and $27 million and gross losses of $3 million, $10 million and $3 million were realized on those sales in 2016, 2015 and 2014, respectively.
\nReal Estate
\nThe Company's real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. The Company negotiates commercial leases with individual tenants through unrelated, licensed real estate brokers. Negotiated terms and conditions include, among others, rental rates, length of lease period and improvements to the premises to be provided by the landlord.
\nProceeds from the sale of real estate investments were $69 million, $31 million and $15 million in 2016, 2015 and 2014, respectively. Gross gains of $7 million, $4 million and $6 million were realized on those sales in 2016, 2015 and 2014, respectively, and there were no gross losses. Accumulated depreciation on real estate held for investment purposes was $332 million and $320 million at December 31, 2016 and 2015, respectively.
\nFuture minimum rental income on operating leases relating to the Company's real estate properties is expected to be $84 million, $74 million, $62 million, $46 million and $34 million for 2017, 2018, 2019, 2020 and 2021, respectively, and $45 million for 2022 and thereafter.
\nShort-term Securities
\nThe Company's short-term securities consist of Aaa-rated registered money market funds, U.S. Treasury securities, high-quality commercial paper (primarily A1/P1) and high-quality corporate securities purchased within a year to their maturity with a combined average of 80 days to maturity at December 31, 2016. The amortized cost of these securities, which totaled $4.87 billion and $4.67 billion at December 31, 2016 and 2015, respectively, approximated their fair value.
\nVariable Interest Entities
\nEntities which do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (VIE). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis.
\nThe Company is a passive investor in limited partner equity interests issued by third party VIEs. These include certain of the Company's investments in private equity limited partnerships, hedge funds and real estate partnerships where the Company is not related to the general partner. These investments are generally accounted for under the equity method and reported in the Company's consolidated balance sheet as other investments unless the Company is deemed the primary beneficiary. These equity interests generally cannot be redeemed. Distributions from these investments are received by the Company as a result of liquidation of the underlying investments of the funds and/or as income distribution. The Company's maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company's consolidated balance sheet and any unfunded commitment. Neither the carrying amounts nor the unfunded commitments related to these VIEs are material.
\nUnrealized Investment Losses
\nThe following tables summarize, for all investments in an unrealized loss position at December 31, 2016 and 2015, the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1, in determining whether such investments are other-than-temporarily impaired.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Less than 12 months | \n\n | 12 months or longer | \n\n | Total | \n\n | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at December 31, 2016, in millions) \n | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | ||||||
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n1,124 | \n\n | $ | \n5 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n1,124 | \n\n | $ | \n5 | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 9,781 | \n\n | \n | 352 | \n\n | \n | 12 | \n\n | \n | — | \n\n | \n | 9,793 | \n\n | \n | 352 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 360 | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 360 | \n\n | \n | 3 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 528 | \n\n | \n | 5 | \n\n | \n | 43 | \n\n | \n | 1 | \n\n | \n | 571 | \n\n | \n | 6 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 6,470 | \n\n | \n | 115 | \n\n | \n | 437 | \n\n | \n | 23 | \n\n | \n | 6,907 | \n\n | \n | 138 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 18,263 | \n\n | \n | 480 | \n\n | \n | 492 | \n\n | \n | 24 | \n\n | \n | 18,755 | \n\n | \n | 504 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 45 | \n\n | \n | 2 | \n\n | \n | 10 | \n\n | \n | 1 | \n\n | \n | 55 | \n\n | \n | 3 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 59 | \n\n | \n | 5 | \n\n | \n | 61 | \n\n | \n | 5 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 47 | \n\n | \n | 2 | \n\n | \n | 69 | \n\n | \n | 6 | \n\n | \n | 116 | \n\n | \n | 8 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n18,310 | \n\n | $ | \n482 | \n\n | $ | \n561 | \n\n | $ | \n30 | \n\n | $ | \n18,871 | \n\n | $ | \n512 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Less than 12 months | \n\n | 12 months or longer | \n\n | Total | \n\n | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at December 31, 2015, in millions) \n | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | ||||||
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n1,820 | \n\n | $ | \n15 | \n\n | $ | \n28 | \n\n | $ | \n1 | \n\n | $ | \n1,848 | \n\n | $ | \n16 | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 928 | \n\n | \n | 7 | \n\n | \n | 142 | \n\n | \n | 2 | \n\n | \n | 1,070 | \n\n | \n | 9 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 172 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 172 | \n\n | \n | 1 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 473 | \n\n | \n | 4 | \n\n | \n | 57 | \n\n | \n | 2 | \n\n | \n | 530 | \n\n | \n | 6 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 7,725 | \n\n | \n | 197 | \n\n | \n | 710 | \n\n | \n | 91 | \n\n | \n | 8,435 | \n\n | \n | 288 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 8 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 8 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 11,126 | \n\n | \n | 224 | \n\n | \n | 937 | \n\n | \n | 96 | \n\n | \n | 12,063 | \n\n | \n | 320 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 48 | \n\n | \n | 6 | \n\n | \n | 33 | \n\n | \n | 1 | \n\n | \n | 81 | \n\n | \n | 7 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 47 | \n\n | \n | 3 | \n\n | \n | 38 | \n\n | \n | 3 | \n\n | \n | 85 | \n\n | \n | 6 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 95 | \n\n | \n | 9 | \n\n | \n | 71 | \n\n | \n | 4 | \n\n | \n | 166 | \n\n | \n | 13 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n11,221 | \n\n | $ | \n233 | \n\n | $ | \n1,008 | \n\n | $ | \n100 | \n\n | $ | \n12,229 | \n\n | $ | \n333 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The following table summarizes, for all fixed maturities and equity securities reported at fair value for which fair value is less than 80% of amortized cost at December 31, 2016, the gross unrealized investment loss by length of time those securities have continuously been in an unrealized loss position of greater than 20% of amortized cost:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Period For Which Fair Value Is Less Than 80% of Amortized Cost | \n\n | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (in millions) \n | \n\n | 3 Months \nor Less | \n\n | Greater Than \n3 Months, \n6 Months \nor Less | \n\n | Greater Than \n6 Months, \n12 Months \nor Less | \n\n | Greater Than \n12 Months | \n\n | Total | \n\n | |||||
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Mortgage-backed securities \n | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Other \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| \n Equity securities \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n2 | \n\n | $ | \n4 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
These unrealized losses at December 31, 2016 represented less than 1% of the combined fixed maturity and equity security portfolios on a pre-tax basis and less than 1% of shareholders' equity on an after-tax basis.
\nImpairment Charges
\nImpairment charges included in net realized investment gains in the consolidated statement of income were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 15 | \n\n | \n | 13 | \n\n | \n | 15 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 15 | \n\n | \n | 13 | \n\n | \n | 16 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 9 | \n\n | \n | 37 | \n\n | \n | 9 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 12 | \n\n | \n | 37 | \n\n | \n | 9 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments \n | \n\n | \n | 2 | \n\n | \n | 2 | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n29 | \n\n | $ | \n52 | \n\n | $ | \n26 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The following tables present the cumulative amount of and the changes during the year in credit losses on fixed maturities held at December 31, 2016 and 2015, that were recognized in the consolidated statement of income from other-than-temporary impairments (OTTI) and for which a portion of the OTTI was recognized in other comprehensive income (loss) in the consolidated balance sheet.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Year ended December 31, 2016 \n\n(in millions) | \n\n | Cumulative \nOTTI Credit \nLosses \nRecognized for \nSecurities Held, \nBeginning of \nPeriod | \n\n | Additions for \nOTTI Securities \nWhere No \nCredit Losses \nWere \nPreviously \nRecognized | \n\n | Additions for \nOTTI Securities \nWhere Credit \nLosses Have \nBeen \nPreviously \nRecognized | \n\n | Reductions \nDue to \nSales/Defaults \nof Credit- \nImpaired \nSecurities | \n\n | Adjustments to \nBook Value \nof Credit- \nImpaired \nSecurities due \nto Changes in \nCash Flows | \n\n | Cumulative OTTI \nCredit Losses \nRecognized for \nSecurities Still \nHeld, End of \nPeriod | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | $ | \n32 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n(1 | \n) | \n$ | \n31 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 51 | \n\n | \n | 13 | \n\n | \n | — | \n\n | \n | (7 | \n) | \n\n | (3 | \n) | \n\n | 54 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | $ | \n83 | \n\n | $ | \n13 | \n\n | $ | \n— | \n\n | $ | \n(7 | \n) | \n$ | \n(4 | \n) | \n$ | \n85 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Year ended December 31, 2015 \n\n(in millions) | \n\n | Cumulative \nOTTI Credit \nLosses \nRecognized for \nSecurities Held, \nBeginning of \nPeriod | \n\n | Additions for \nOTTI Securities \nWhere No \nCredit Losses \nWere \nPreviously \nRecognized | \n\n | Additions for \nOTTI Securities \nWhere Credit \nLosses Have \nBeen \nPreviously \nRecognized | \n\n | Reductions \nDue to \nSales/Defaults \nof Credit- \nImpaired \nSecurities | \n\n | Adjustments to \nBook Value \nof Credit- \nImpaired \nSecurities due \nto Changes in \nCash Flows | \n\n | Cumulative OTTI \nCredit Losses \nRecognized for \nSecurities Still \nHeld, End of \nPeriod | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | $ | \n40 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n(6 | \n) | \n$ | \n(2 | \n) | \n$ | \n32 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 59 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | (4 | \n) | \n\n | (6 | \n) | \n\n | 51 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | $ | \n99 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n(10 | \n) | \n$ | \n(8 | \n) | \n$ | \n83 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Concentrations and Credit Quality
\nConcentrations of credit risk arise from exposure to counterparties that are engaged in similar activities and have similar economic characteristics that could cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Company seeks to mitigate credit risk by actively monitoring the creditworthiness of counterparties, obtaining collateral as deemed appropriate and applying controls that include credit approvals, limits of credit exposure and other monitoring procedures.
\nAt December 31, 2016, other than U.S. Treasury securities and obligations of U.S. government and government agencies and authorities, the Company was not exposed to any concentration of credit risk of a single issuer greater than 5% of the Company's shareholders' equity. At December 31, 2015, other than U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, and obligations of the Canadian government, the Company was not exposed to any concentration of credit risk of a single issuer greater than 5% of the Company's shareholders' equity.
\nIncluded in fixed maturities are below investment grade securities totaling $1.76 billion and $1.71 billion at December 31, 2016 and 2015, respectively. The Company defines its below investment grade securities as those securities rated below investment grade by external rating agencies, or the equivalent by the Company when a public rating does not exist. Such securities include below investment grade bonds that are publicly traded and certain other privately issued bonds that are classified as below investment grade loans.
\nNet Investment Income
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Gross investment income \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | $ | \n1,981 | \n\n | $ | \n2,091 | \n\n | $ | \n2,244 | \n\n |
| \n Equity securities \n | \n\n | \n | 37 | \n\n | \n | 39 | \n\n | \n | 40 | \n\n |
| \n Short-term securities \n | \n\n | \n | 29 | \n\n | \n | 12 | \n\n | \n | 9 | \n\n |
| \n Real estate investments \n | \n\n | \n | 51 | \n\n | \n | 48 | \n\n | \n | 44 | \n\n |
| \n Other investments \n | \n\n | \n | 242 | \n\n | \n | 230 | \n\n | \n | 489 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Gross investment income \n | \n\n | \n | 2,340 | \n\n | \n | 2,420 | \n\n | \n | 2,826 | \n\n |
| \n Investment expenses \n | \n\n | \n | 38 | \n\n | \n | 41 | \n\n | \n | 39 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net investment income \n | \n\n | $ | \n2,302 | \n\n | $ | \n2,379 | \n\n | $ | \n2,787 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Changes in net unrealized gains on investment securities that are included as a separate component of other comprehensive income (loss) were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Changes in net unrealized investment gains \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | $ | \n(915 | \n) | \n$ | \n(893 | \n) | \n$ | \n913 | \n\n |
| \n Equity securities \n | \n\n | \n | 51 | \n\n | \n | (143 | \n) | \n\n | 63 | \n\n |
| \n Other investments \n | \n\n | \n | 2 | \n\n | \n | 2 | \n\n | \n | 2 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in net pre-tax unrealized gains on investment securities \n | \n\n | \n | (862 | \n) | \n\n | (1,034 | \n) | \n\n | 978 | \n\n |
| \n Related tax expense (benefit) \n | \n\n | \n | (303 | \n) | \n\n | (357 | \n) | \n\n | 334 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in net unrealized gains on investment securities \n | \n\n | \n | (559 | \n) | \n\n | (677 | \n) | \n\n | 644 | \n\n |
| \n Balance, beginning of year \n | \n\n | \n | 1,289 | \n\n | \n | 1,966 | \n\n | \n | 1,322 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, end of year \n | \n\n | $ | \n730 | \n\n | $ | \n1,289 | \n\n | $ | \n1,966 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Derivative Financial Instruments
\nFrom time to time, the Company enters into U.S. Treasury note futures contracts to modify the effective duration of specific assets within the investment portfolio. U.S. Treasury futures contracts require a daily mark-to-market and settlement with the broker. At both December 31, 2016 and 2015, the Company had $400 million notional value of open U.S. Treasury futures contracts. Net realized investment losses related to U.S. Treasury futures contracts in 2016, 2015 and 2014 were not significant.
\nThe Company also sells a small amount of U.S. equity index put option contracts that are settled for cash upon their expiration or when they are rolled over. Net realized investment losses related to these derivatives in 2016, 2015 and 2014 were not significant.
\n4. FAIR VALUE MEASUREMENTS
\nThe Company's estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company's significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows:
\nValuation of Investments Reported at Fair Value in Financial Statements
\nThe fair value of a financial instrument is the estimated amount at which the instrument could be exchanged in an orderly transaction between knowledgeable, unrelated, willing parties, i.e., not in a forced transaction. The estimated fair value of a financial instrument may differ from the amount that could be realized if the security was sold in an immediate sale, e.g., a forced transaction. Additionally, the valuation of investments is more subjective when markets are less liquid due to the lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction would occur.
\nFor investments that have quoted market prices in active markets, the Company uses the unadjusted quoted market prices as fair value and includes these prices in the amounts disclosed in Level 1 of the hierarchy. The Company receives the quoted market prices from third party, nationally recognized pricing services. When quoted market prices are unavailable, the Company utilizes these pricing services to determine an estimate of fair value. The fair value estimates provided from these pricing services are included in the amount disclosed in Level 2 of the hierarchy. If quoted market prices and an estimate from a pricing service are unavailable, the Company produces an estimate of fair value based on internally developed valuation techniques, which, depending on the level of observable market inputs, will render the fair value estimate as Level 2 or Level 3. The Company bases all of its estimates of fair value for assets on the bid price as it represents what a third-party market participant would be willing to pay in an arm's length transaction.
\nFixed Maturities
\nThe Company utilized a pricing service to estimate fair value measurements for approximately 98% of its fixed maturities at both December 31, 2016 and 2015. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturities other than U.S. Treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, the pricing service uses an Option Adjusted Spread model to develop prepayment and interest rate scenarios.
\nThe pricing service evaluates each asset class based on relevant market information, relevant credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary.
\nThe pricing service utilized by the Company has indicated that it will only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If the pricing service discontinues pricing an investment, the Company would be required to produce an estimate of fair value using some of the same methodologies as the pricing service but would have to make assumptions for any market-based inputs that were unavailable due to market conditions. The Company reviews the estimates of fair value provided by the pricing service and compares the estimates to the Company's knowledge of the market to determine if the estimates obtained are representative of the prices in the market. In addition, the Company has periodic discussions with the pricing service to discuss and understand any changes in process and their responsiveness to changes occurring in the markets. The Company also monitors all monthly price changes and further evaluates any securities whose value changed more than 10% from the prior month. The Company has implemented various other processes including randomly selecting purchased or sold securities and comparing execution prices to the estimates from the pricing service as well as reviewing securities whose valuation did not change from their previous valuation (stale price review). The Company also uses a second independent pricing service to further test the primary pricing service's valuation of the Company's fixed maturity portfolio. These processes have not highlighted any significant issues with the fair value estimates received from the primary pricing service.
\nThe fair value estimates of most fixed maturity investments are based on observable market information rather than market quotes. Accordingly, the estimates of fair value for such fixed maturities, other than U.S. Treasury securities, provided by the pricing service are included in the amount disclosed in Level 2 of the hierarchy. The estimated fair value of U.S. Treasury securities is included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices.
\nThe Company also holds certain fixed maturity investments which are not priced by the pricing service and, accordingly, estimates the fair value of such fixed maturities using an internal matrix that is based on market information regarding interest rates, credit spreads and liquidity. The underlying source data for calculating the matrix of credit spreads relative to the U.S. Treasury curve are the BofA Merrill Lynch U.S. Corporate Index and the BofA Merrill Lynch High Yield BB Rated Index. The Company includes the fair value estimates of these corporate bonds in Level 2, since all significant inputs are market observable.
\nWhile the vast majority of the Company's fixed maturities are included in Level 2, the Company holds a number of municipal bonds and corporate bonds which are not valued by the pricing service and estimates the fair value of these bonds using an internal pricing matrix with some unobservable inputs that are significant to the valuation. Due to the limited amount of observable market information, the Company includes the fair value estimates for these particular bonds in Level 3. The fair value of the fixed maturities for which the Company used an internal pricing matrix was $99 million and $101 million at December 31, 2016 and 2015, respectively. Additionally, the Company holds a small amount of other fixed maturity investments that have characteristics that make them unsuitable for matrix pricing. For these fixed maturities, the Company obtains a quote from a broker (primarily the market maker). The fair value of the fixed maturities for which the Company received a broker quote was $85 million and $117 million at December 31, 2016 and 2015, respectively. Due to the disclaimers on the quotes that indicate that the price is indicative only, the Company includes these fair value estimates in Level 3.
\nEquity Securities—Public Common Stock and Non-Redeemable Preferred Stock
\nFor public common stock and non-redeemable preferred stocks, the Company receives prices from pricing services that are based on observable market transactions and includes these estimates in the amount disclosed in Level 1. When current market quotes in active markets are unavailable for certain non-redeemable preferred stocks held by the Company, the Company receives an estimate of fair value from the pricing services. The services utilize similar methodologies to price the non-redeemable preferred stocks as they do for the fixed maturities. The Company includes the fair value estimate for these non-redeemable preferred stocks in the amount disclosed in Level 2.
\nOther Investments
\nThe Company holds investments in various publicly-traded securities which are reported in other investments. These investments include mutual funds and other small holdings. The $17 million and $18 million fair value of these investments at December 31, 2016 and 2015, respectively, was disclosed in Level 1. At December 31, 2016 and 2015, the Company held investments in non-public common and preferred equity securities, with fair value estimates of $36 million and $38 million, respectively, reported in other investments, where the fair value estimate is determined either internally or by an external fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the Company includes the total fair value estimate for all of these investments at December 31, 2016 and 2015 in the amount disclosed in Level 3.
\nDerivatives
\nAt December 31, 2015, the Company held $2 million of convertible bonds containing embedded conversion options that are valued separately from the host bond contract in the amount disclosed in Level 2—fixed maturities. At December 31, 2016, the Company held no such convertible bonds.
\nFair Value Hierarchy
\nThe following tables present the level within the fair value hierarchy at which the Company's financial assets and financial liabilities are measured on a recurring basis. An investment transferred between levels during a period is transferred at its fair value as of the beginning of that period.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,035 | \n\n | $ | \n2,035 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 31,910 | \n\n | \n | — | \n\n | \n | 31,898 | \n\n | \n | 12 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,662 | \n\n | \n | — | \n\n | \n | 1,662 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,708 | \n\n | \n | — | \n\n | \n | 1,704 | \n\n | \n | 4 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 23,107 | \n\n | \n | — | \n\n | \n | 22,939 | \n\n | \n | 168 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 93 | \n\n | \n | 3 | \n\n | \n | 90 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 60,515 | \n\n | \n | 2,038 | \n\n | \n | 58,293 | \n\n | \n | 184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 603 | \n\n | \n | 603 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 129 | \n\n | \n | 51 | \n\n | \n | 78 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 732 | \n\n | \n | 654 | \n\n | \n | 78 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments \n | \n\n | \n | 53 | \n\n | \n | 17 | \n\n | \n | — | \n\n | \n | 36 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n61,300 | \n\n | $ | \n2,709 | \n\n | $ | \n58,371 | \n\n | $ | \n220 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,194 | \n\n | $ | \n2,194 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 31,411 | \n\n | \n | — | \n\n | \n | 31,398 | \n\n | \n | 13 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,873 | \n\n | \n | — | \n\n | \n | 1,873 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,981 | \n\n | \n | — | \n\n | \n | 1,957 | \n\n | \n | 24 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 23,089 | \n\n | \n | — | \n\n | \n | 22,915 | \n\n | \n | 174 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 110 | \n\n | \n | 3 | \n\n | \n | 100 | \n\n | \n | 7 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 60,658 | \n\n | \n | 2,197 | \n\n | \n | 58,243 | \n\n | \n | 218 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 543 | \n\n | \n | 543 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 162 | \n\n | \n | 55 | \n\n | \n | 107 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 705 | \n\n | \n | 598 | \n\n | \n | 107 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments \n | \n\n | \n | 56 | \n\n | \n | 18 | \n\n | \n | — | \n\n | \n | 38 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n61,419 | \n\n | $ | \n2,813 | \n\n | $ | \n58,350 | \n\n | $ | \n256 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
During the years ended December 31, 2016 and 2015, the Company's transfers between Level 1 and Level 2 were not significant.
\nThe following tables present the changes in the Level 3 fair value category for the years ended December 31, 2016 and 2015.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | Fixed \nMaturities | \n\n | Other \nInvestments | \n\n | Total | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Balance at December 31, 2015 \n | \n\n | $ | \n218 | \n\n | $ | \n38 | \n\n | $ | \n256 | \n\n |
| \n Total realized and unrealized investment gains (losses): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Reported in net realized investment gains(1) \n | \n\n | \n | 3 | \n\n | \n | 5 | \n\n | \n | 8 | \n\n |
| \n Reported in increases in other comprehensive income \n | \n\n | \n | 2 | \n\n | \n | 3 | \n\n | \n | 5 | \n\n |
| \n Purchases, sales and settlements/maturities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Purchases \n | \n\n | \n | 123 | \n\n | \n | — | \n\n | \n | 123 | \n\n |
| \n Sales \n | \n\n | \n | (19 | \n) | \n\n | (10 | \n) | \n\n | (29 | \n) | \n
| \n Settlements/maturities \n | \n\n | \n | (66 | \n) | \n\n | — | \n\n | \n | (66 | \n) | \n
| \n Gross transfers into Level 3 \n | \n\n | \n | 19 | \n\n | \n | — | \n\n | \n | 19 | \n\n |
| \n Gross transfers out of Level 3 \n | \n\n | \n | (96 | \n) | \n\n | — | \n\n | \n | (96 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance at December 31, 2016 \n | \n\n | $ | \n184 | \n\n | $ | \n36 | \n\n | $ | \n220 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date \n | \n\n | $ | \n— | \n\n | $ | \n(2 | \n) | \n$ | \n(2 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | Fixed \nMaturities | \n\n | Other \nInvestments | \n\n | Total | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Balance at December 31, 2014 \n | \n\n | $ | \n232 | \n\n | $ | \n36 | \n\n | $ | \n268 | \n\n |
| \n Total realized and unrealized investment gains (losses): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Reported in net realized investment gains(1) \n | \n\n | \n | 1 | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| \n Reported in increases (decreases) in other comprehensive income \n | \n\n | \n | (4 | \n) | \n\n | 1 | \n\n | \n | (3 | \n) | \n
| \n Purchases, sales and settlements/maturities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Purchases \n | \n\n | \n | 202 | \n\n | \n | 1 | \n\n | \n | 203 | \n\n |
| \n Sales \n | \n\n | \n | (7 | \n) | \n\n | (2 | \n) | \n\n | (9 | \n) | \n
| \n Settlements/maturities \n | \n\n | \n | (41 | \n) | \n\n | — | \n\n | \n | (41 | \n) | \n
| \n Gross transfers into Level 3 \n | \n\n | \n | 21 | \n\n | \n | — | \n\n | \n | 21 | \n\n |
| \n Gross transfers out of Level 3 \n | \n\n | \n | (186 | \n) | \n\n | — | \n\n | \n | (186 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance at December 31, 2015 \n | \n\n | $ | \n218 | \n\n | $ | \n38 | \n\n | $ | \n256 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date \n | \n\n | $ | \n— | \n\n | $ | \n(1 | \n) | \n$ | \n(1 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Financial Instruments Disclosed, But Not Carried, At Fair Value
\nThe following tables present the carrying value and fair value of the Company's financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Carrying \nValue | \n\n | Fair \nValue | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Financial assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Short-term securities \n | \n\n | $ | \n4,865 | \n\n | $ | \n4,865 | \n\n | $ | \n1,223 | \n\n | $ | \n3,607 | \n\n | $ | \n35 | \n\n |
| \n Financial liabilities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Debt \n | \n\n | $ | \n6,337 | \n\n | $ | \n7,262 | \n\n | $ | \n— | \n\n | $ | \n7,262 | \n\n | $ | \n— | \n\n |
| \n Commercial paper \n | \n\n | \n | 100 | \n\n | \n | 100 | \n\n | \n | — | \n\n | \n | 100 | \n\n | \n | — | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Carrying \nValue | \n\n | Fair \nValue | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Financial assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Short-term securities \n | \n\n | $ | \n4,671 | \n\n | $ | \n4,671 | \n\n | $ | \n1,685 | \n\n | $ | \n2,958 | \n\n | $ | \n28 | \n\n |
| \n Financial liabilities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Debt \n | \n\n | $ | \n6,244 | \n\n | $ | \n7,180 | \n\n | $ | \n— | \n\n | $ | \n7,180 | \n\n | $ | \n— | \n\n |
| \n Commercial paper \n | \n\n | \n | 100 | \n\n | \n | 100 | \n\n | \n | — | \n\n | \n | 100 | \n\n | \n | — | \n\n |
The Company utilized a pricing service to estimate fair value for approximately 98% and 99% of short-term securities at December 31, 2016 and 2015, respectively. A description of the process and inputs used by the pricing service to estimate fair value is discussed in the \"Fixed Maturities\" section above. Estimates of fair value for U.S. Treasury securities and money market funds are based on market quotations received from the pricing service and are disclosed in Level 1 of the hierarchy. The fair value of other short-term fixed maturity securities is estimated by the pricing service using observable market inputs and is disclosed in Level 2 of the hierarchy. For short-term securities where an estimate is not obtained from the pricing service, the carrying value approximates fair value and is included in Level 3 of the hierarchy.
\nThe Company utilized a pricing service to estimate fair value for 100% of its debt, including commercial paper, at December 31, 2016 and 2015. The pricing service utilizes market quotations for debt that have quoted prices in active markets. Since fixed maturities other than U.S. Treasury securities generally do not trade on a daily basis, the fair value estimates are based on market observable inputs and disclosed in Level 2 of the hierarchy.
\nThe Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the years ended December 31, 2016 and 2015.
\n5. REINSURANCE
\nThe Company's consolidated financial statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) the Company has underwritten to other insurance companies who agree to share these risks. The primary purpose of ceded reinsurance is to protect the Company, at a cost, from losses in excess of the amount it is prepared to accept and to protect the Company's capital. Reinsurance is placed on both a quota-share and excess-of-loss basis. Ceded reinsurance arrangements do not discharge the Company as the primary insurer, except for instances where the primary policy or policies have been novated, such as in certain structured settlement agreements.
\nThe Company utilizes a corporate catastrophe excess-of-loss reinsurance treaty with unaffiliated reinsurers to manage its exposure to losses resulting from catastrophes and to protect its capital. In addition to the coverage provided under this treaty, the Company also utilizes catastrophe bonds to protect against certain weather-related and earthquake losses in the Northeastern United States, and a Northeast catastrophe reinsurance treaty to protect against losses resulting from weather-related and earthquake catastrophes in the Northeastern United States. The Company also utilizes excess-of-loss treaties to protect against earthquake losses up to a certain threshold in Business and International Insurance (for certain markets) and for Personal Insurance, and several reinsurance treaties specific to its international operations.
\nThe Company monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to evaluate the collectability of amounts due from reinsurers and as a basis for determining the reinsurers with which the Company conducts ongoing business. In addition, in the ordinary course of business, the Company may become involved in coverage disputes with its reinsurers. Some of these disputes could result in lawsuits and arbitrations brought by or against the reinsurers to determine the Company's rights and obligations under the various reinsurance agreements. The Company employs dedicated specialists and strategies to manage reinsurance collections and disputes.
\nIncluded in reinsurance recoverables are amounts related to involuntary reinsurance arrangements. The Company is required to participate in various involuntary reinsurance arrangements through assumed reinsurance, principally with regard to residual market mechanisms in workers' compensation and automobile insurance, as well as homeowners' insurance in certain coastal areas. In addition, the Company provides services for several of these involuntary arrangements (mandatory pools and associations) under which it writes such residual market business directly, then cedes 100% of this business to the mandatory pool. Such participations and servicing arrangements are arranged to mitigate credit risk to the Company, as any ceded balances are jointly backed by all the pool members.
\nAlso included in reinsurance recoverables are amounts related to certain structured settlements. Structured settlements are annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers' compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the structured settlement is included in reinsurance recoverables and the related claim cost is included in the liability for claims and claim adjustment expense reserves, as the Company retains the contingent liability to the claimant. If it is expected that the life insurance company is not able to pay, the Company would recognize an impairment of the related reinsurance recoverable if, and to the extent, the purchased annuities are not covered by state guaranty associations. In the event that the life insurance company fails to make the required annuity payments, the Company would be required to make such payments.
\nThe following is a summary of reinsurance financial data reflected in the consolidated statement of income:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Written premiums \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Direct \n | \n\n | $ | \n25,567 | \n\n | $ | \n24,939 | \n\n | $ | \n24,844 | \n\n |
| \n Assumed \n | \n\n | \n | 928 | \n\n | \n | 843 | \n\n | \n | 788 | \n\n |
| \n Ceded \n | \n\n | \n | (1,537 | \n) | \n\n | (1,661 | \n) | \n\n | (1,728 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total net written premiums \n | \n\n | $ | \n24,958 | \n\n | $ | \n24,121 | \n\n | $ | \n23,904 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Earned premiums \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Direct \n | \n\n | $ | \n25,262 | \n\n | $ | \n24,740 | \n\n | $ | \n24,810 | \n\n |
| \n Assumed \n | \n\n | \n | 875 | \n\n | \n | 814 | \n\n | \n | 743 | \n\n |
| \n Ceded \n | \n\n | \n | (1,603 | \n) | \n\n | (1,680 | \n) | \n\n | (1,840 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total net earned premiums \n | \n\n | $ | \n24,534 | \n\n | $ | \n23,874 | \n\n | $ | \n23,713 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Percentage of assumed earned premiums to net earned premiums \n | \n\n | \n | 3.6 | \n% | \n\n | 3.4 | \n% | \n\n | 3.1 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Ceded claims and claim adjustment expenses incurred \n | \n\n | $ | \n762 | \n\n | $ | \n1,034 | \n\n | $ | \n953 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Ceded premiums include the premiums paid for coverage provided by the Company's catastrophe bonds.
\nReinsurance recoverables include amounts recoverable on both paid and unpaid claims and claim adjustment expenses and were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses \n | \n\n | $ | \n3,181 | \n\n | $ | \n3,848 | \n\n |
| \n Allowance for uncollectible reinsurance \n | \n\n | \n | (116 | \n) | \n\n | (157 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net reinsurance recoverables \n | \n\n | \n | 3,065 | \n\n | \n | 3,691 | \n\n |
| \n Mandatory pools and associations \n | \n\n | \n | 2,054 | \n\n | \n | 2,015 | \n\n |
| \n Structured settlements \n | \n\n | \n | 3,168 | \n\n | \n | 3,204 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total reinsurance recoverables \n | \n\n | $ | \n8,287 | \n\n | $ | \n8,910 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
Terrorism Risk Insurance Program
\nThe Terrorism Risk Insurance Program is a Federal program administered by the Department of the Treasury authorized through December 31, 2020 that provides for a system of shared public and private compensation for certain insured losses resulting from certified acts of terrorism.
\nIn order for a loss to be covered under the program (subject losses), the loss must meet certain aggregate industry loss minimums and must be the result of an event that is certified as an act of terrorism by the U.S. Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General of the United States. The annual aggregate industry loss minimum under the program is $140 million for 2017, but will increase over the life of the program to $200 million by December 31, 2020. The program excludes from participation the following types of insurance: Federal crop insurance, private mortgage insurance, financial guaranty insurance, medical malpractice insurance, health or life insurance, flood insurance, reinsurance, commercial automobile, professional liability (other than directors and officers'), surety, burglary and theft, and farm-owners multi-peril. In the case of a war declared by Congress, only workers' compensation losses are covered by the program. All commercial property and casualty insurers licensed in the United States are generally required to participate in the program. Under the program, a participating insurer, in exchange for making terrorism insurance available, is entitled to be reimbursed by the Federal Government for 83% of subject losses in 2017, after an insurer deductible, subject to an annual cap. This reimbursement percentage will decrease over the remaining four-year life of the program to 80% of subject losses by December 31, 2020.
\nThe deductible for any calendar year is equal to 20% of the insurer's direct earned premiums for covered lines for the preceding calendar year. The Company's estimated deductible under the program is $2.45 billion for 2017. The annual cap limits the amount of aggregate subject losses for all participating insurers to $100 billion. Once subject losses have reached the $100 billion aggregate during a program year, participating insurers will not be liable under the program for additional covered terrorism losses for that program year. There have been no terrorism-related losses that have triggered program coverage since the program was established. Since the law is untested, there is substantial uncertainty as to how it will be applied if an act of terrorism is certified under the program. It is also possible that future legislative action could change or eliminate the program. Further, given the unpredictable frequency and severity of terrorism losses, as well as the limited terrorism coverage in the Company's own reinsurance program, future losses from acts of terrorism, particularly involving nuclear, biological, chemical or radiological events, could be material to the Company's operating results, financial position and/or liquidity in future periods. In addition, the Company may not have sufficient resources to respond to claims arising from a high frequency of high severity natural catastrophes and/or of man-made catastrophic events involving conventional means. While the Company seeks to manage its exposure to man-made catastrophic events involving conventional means, the Company may not have sufficient resources to respond to claims arising out of one or more man-made catastrophic events involving nuclear, biological, chemical or radiological means.
\n6. GOODWILL AND OTHER INTANGIBLE ASSETS
\nGoodwill
\nThe following table presents the carrying amount of the Company's goodwill by segment:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Business and International Insurance(1) \n | \n\n | $ | \n2,446 | \n\n | $ | \n2,439 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | 496 | \n\n | \n | 496 | \n\n |
| \n Personal Insurance \n | \n\n | \n | 612 | \n\n | \n | 612 | \n\n |
| \n Other \n | \n\n | \n | 26 | \n\n | \n | 26 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n3,580 | \n\n | $ | \n3,573 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
Other Intangible Assets
\nThe following tables present a summary of the Company's other intangible assets by major asset class:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Gross \nCarrying \nAmount | \n\n | Accumulated \nAmortization | \n\n | Net | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Subject to amortization(1) \n | \n\n | $ | \n210 | \n\n | $ | \n159 | \n\n | $ | \n51 | \n\n |
| \n Not subject to amortization \n | \n\n | \n | 217 | \n\n | \n | — | \n\n | \n | 217 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n427 | \n\n | $ | \n159 | \n\n | $ | \n268 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Gross \nCarrying \nAmount | \n\n | Accumulated \nAmortization | \n\n | Net | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Subject to amortization(1) \n | \n\n | $ | \n210 | \n\n | $ | \n148 | \n\n | $ | \n62 | \n\n |
| \n Not subject to amortization \n | \n\n | \n | 217 | \n\n | \n | — | \n\n | \n | 217 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n427 | \n\n | $ | \n148 | \n\n | $ | \n279 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Amortization expense of intangible assets was $11 million, $26 million and $46 million for the years ended December 31, 2016, 2015 and 2014, respectively. Intangible asset amortization expense is estimated to be $9 million in 2017, $8 million in 2018, $6 million in 2019, $5 million in 2020 and $5 million in 2021.
\n7. INSURANCE CLAIM RESERVES
\nClaims and claim adjustment expense reserves were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Property-casualty \n | \n\n | $ | \n47,929 | \n\n | $ | \n48,272 | \n\n |
| \n Accident and health \n | \n\n | \n | 20 | \n\n | \n | 23 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n47,949 | \n\n | $ | \n48,295 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Claims and claim adjustment expense reserves at beginning of year \n | \n\n | $ | \n48,272 | \n\n | $ | \n49,824 | \n\n | $ | \n50,865 | \n\n |
| \n Less reinsurance recoverables on unpaid losses \n | \n\n | \n | 8,449 | \n\n | \n | 8,788 | \n\n | \n | 9,280 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net reserves at beginning of year \n | \n\n | \n | 39,823 | \n\n | \n | 41,036 | \n\n | \n | 41,585 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Estimated claims and claim adjustment expenses for claims arising in the current year \n | \n\n | \n | 15,675 | \n\n | \n | 14,471 | \n\n | \n | 14,688 | \n\n |
| \n Estimated decrease in claims and claim adjustment expenses for claims arising in prior years \n | \n\n | \n | (680 | \n) | \n\n | (817 | \n) | \n\n | (885 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total increases \n | \n\n | \n | 14,995 | \n\n | \n | 13,654 | \n\n | \n | 13,803 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and claim adjustment expense payments for claims arising in: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Current year \n | \n\n | \n | 6,220 | \n\n | \n | 5,725 | \n\n | \n | 5,895 | \n\n |
| \n Prior years \n | \n\n | \n | 8,576 | \n\n | \n | 8,749 | \n\n | \n | 8,171 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total payments \n | \n\n | \n | 14,796 | \n\n | \n | 14,474 | \n\n | \n | 14,066 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Acquisition(1) \n | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | — | \n\n |
| \n Unrealized foreign exchange gain \n | \n\n | \n | (74 | \n) | \n\n | (395 | \n) | \n\n | (286 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net reserves at end of year \n | \n\n | \n | 39,948 | \n\n | \n | 39,823 | \n\n | \n | 41,036 | \n\n |
| \n Plus reinsurance recoverables on unpaid losses \n | \n\n | \n | 7,981 | \n\n | \n | 8,449 | \n\n | \n | 8,788 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and claim adjustment expense reserves at end of year \n | \n\n | $ | \n47,929 | \n\n | $ | \n48,272 | \n\n | $ | \n49,824 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Gross claims and claim adjustment expense reserves at December 31, 2016 decreased by $343 million from December 31, 2015. This decrease primarily reflected the impacts of (i) payments related to operations in runoff, including the Company's $524 million payment related to the settlement of the PPG Industries, Inc. litigation and (ii) net favorable prior year reserve development, partially offset by the impacts of (iii) higher volumes of insured exposures and (iv) loss cost trends for the current accident year. Gross claims and claim adjustment expense reserves at December 31, 2015 decreased by $1.55 billion from December 31, 2014. This decrease primarily reflected the impacts of (i) payments related to operations in runoff, including a $579 million payment related to the settlement of the Asbestos Direct Action Litigation as described in more detail in note 16, (ii) net favorable prior year reserve development and (iii) changes in foreign currency exchange rates, partially offset by (iv) the impact of loss cost trends for the current accident year.
\nReinsurance recoverables on unpaid losses at December 31, 2016 decreased by $468 million from December 31, 2015, primarily reflecting the impact of cash collections in 2016, including the settlement of a reinsurance dispute which is discussed in more detail in note 16. Reinsurance recoverables on unpaid losses at December 31, 2015 decreased by $339 million from December 31, 2014, primarily reflecting the impact of cash collections in 2015.
\nIncluded in the claims and claim adjustment expense reserves are reserves for long-term disability and annuity claim payments, primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, that are discounted to the present value of the estimated future payments. The discount rate used was 5% at both December 31, 2016 and 2015. Total reserves net of the discount were $2.17 billion and $2.13 billion, and the related amount of discount was $1.08 billion and $1.07 billion, at December 31, 2016 and 2015, respectively. Accretion of the discount is reported as part of \"claims and claim adjustment expenses\" in the Consolidated Statement of Income.
\nPrior Year Reserve Development
\nThe following disclosures regarding reserve development are on a \"net of reinsurance\" basis.
\n2016.
\nIn 2016, estimated claims and claim adjustment expenses incurred included $680 million of net favorable development for claims arising in prior years, including $771 million of net favorable prior year reserve development impacting the Company's results of operations and $50 million of accretion of discount.
\nBusiness and International Insurance. Net favorable prior year reserve development in 2016 totaled $484 million, primarily driven by better than expected loss experience in the Company's domestic operations in (i) the workers' compensation product line for accident years 2006 and prior as well as accident years 2009, 2013 and 2015 and (ii) the general liability product line (excluding an increase to asbestos and environmental reserves discussed below), related to both primary and excess coverages for accident years 2007 and prior, accident year 2009 and accident years 2011 through 2015, as well as in the Company's international operations in Europe and Canada. These factors contributing to net favorable prior year reserve development in 2016 were partially offset by $225 million and $82 million increases to asbestos and environmental reserves, respectively, which are discussed in further detail in the \"Asbestos and Environmental Reserves\" section below.
\nBond & Specialty Insurance. Net favorable prior year reserve development in 2016 totaled $326 million, primarily driven by better than expected loss experience in (i) the fidelity and surety product line for accident years 2009 through 2015 and (ii) the general liability product line for accident years 2006 through 2011.
\nPersonal Insurance. Net unfavorable prior year reserve development in 2016 totaled $39 million, primarily driven by worse than expected loss experience in the automobile product line for bodily injury coverages for the 2015 accident year.
\n2015.
\nIn 2015, estimated claims and claim adjustment expenses incurred included $817 million of net favorable development for claims arising in prior years, including $941 million of net favorable prior year reserve development impacting the Company's results of operations and $51 million of accretion of discount.
\nBusiness and International Insurance. Net favorable prior year reserve development in 2015 totaled $405 million, primarily driven by better than expected loss experience in the Company's domestic operations in (i) the general liability product line (excluding increases to asbestos and environmental reserves discussed below), for both primary and excess coverages for accident years 2005 through 2013, (ii) the workers' compensation line of business for accident years 2006 and prior, (iii) the property product line related to catastrophe losses for accident years 2011, 2012 and 2014 and non-catastrophe losses for accident years 2013 and 2014, as well as in the Company's operations in Canada and at Lloyd's. These factors contributing to net favorable prior year reserve development in 2015 were partially offset by $224 million and $72 million increases to asbestos and environmental reserves, respectively, which are discussed in further detail in the \"Asbestos and Environmental Reserves\" section below.
\nBond & Specialty Insurance. Net favorable prior year reserve development in 2015 totaled $258 million, primarily driven by better than expected loss experience in the fidelity and surety product line for accident years 2008 through 2014, which was partially driven by a reduction in outstanding exposures related to the financial crisis that commenced in 2007.
\nPersonal Insurance. Net favorable prior year reserve development in 2015 totaled $278 million, primarily driven by better than expected loss experience in (i) the Homeowners and Other product line for liability coverages for accident years 2011 through 2014, for non-catastrophe weather-related losses and non-weather-related losses for accident year 2014 and (ii) the Automobile product line for liability coverages for accident years 2012 through 2014.
\n2014.
\nIn 2014, estimated claims and claim adjustment expenses incurred included $885 million of net favorable development for claims arising in prior years, including $941 million of net favorable prior year reserve development impacting the Company's results of operations and $50 million of accretion of discount.
\nBusiness and International Insurance. Net favorable prior year reserve development in 2014 totaled $322 million, primarily driven by (i) better than expected loss experience in the Company's domestic operations in the general liability product line (excluding increases to asbestos and environmental reserves discussed below), primarily related to excess coverages for accident years 2008 through 2012, (ii) a $162 million benefit resulting from better than expected loss experience related to, and the commutation of reinsurance treaties associated with, a workers' compensation reinsurance pool for accident years 1996 and prior, and better than expected loss experience in the Company's domestic operations in (iii) the property product line for accident years 2010 through 2013, including catastrophe losses from Storm Sandy for accident year 2012 and (iv) the commercial auto product line for accident years 2011 and 2012. These factors contributing to net favorable prior year reserve development in 2014 were partially offset by (i) $250 million and $87 million increases to asbestos and environmental reserves, respectively, which are discussed in further detail in the \"Asbestos and Environmental Reserves\" section below, (ii) an increase in unallocated loss adjustment expense reserves of $77 million for interest awarded as part of damages pursuant to a court decision in the third quarter of 2014 related to a legal matter, which is discussed in more detail in the \"Settlement of Asbestos Direct Action Litigation\" section of note 16 and (iii) higher than expected loss experience for liability coverages in the commercial multi-peril product line for accident years 2010 through 2013.
\nBond & Specialty Insurance. Net favorable prior year reserve development in 2014 totaled $450 million, primarily driven by better than expected loss experience in the contract surety product line for accident years 2012 and prior.
\nPersonal Insurance. Net favorable prior year reserve development in 2014 totaled $169 million, primarily driven by better than expected loss experience in the Homeowners and Other product line for (i) non-catastrophe weather-related losses for accident year 2013 and (ii) catastrophe losses for accident years 2011 through 2013.
\nClaims Development
\nThe following is a summary of claims and claim adjustment expense reserves, including certain components, for the Company's major product lines by reporting segment at December 31, 2016.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n At December 31, 2016 (in millions) \n | \n\n | Net Undiscounted \nClaims and Claim \nAdjustment Expense \nReserves | \n\n | Discount \n(Net of \nReinsurance) | \n\n | Subtotal: \nNet Claims and \nAllocated Claim \nAdjustment \nExpense Reserves | \n\n | Reinsurance \nRecoverables on \nUnpaid Losses | \n\n | Claims and \nClaim \nAdjustment \nExpense \nReserves | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Business and International Insurance \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n General liability \n | \n\n | $ | \n7,034 | \n\n | $ | \n(168 | \n) | \n$ | \n6,866 | \n\n | $ | \n712 | \n\n | $ | \n7,578 | \n\n |
| \n Commercial property \n | \n\n | \n | 866 | \n\n | \n | — | \n\n | \n | 866 | \n\n | \n | 194 | \n\n | \n | 1,060 | \n\n |
| \n Commercial multi-peril \n | \n\n | \n | 3,414 | \n\n | \n | — | \n\n | \n | 3,414 | \n\n | \n | 81 | \n\n | \n | 3,495 | \n\n |
| \n Commercial automobile \n | \n\n | \n | 2,270 | \n\n | \n | — | \n\n | \n | 2,270 | \n\n | \n | 256 | \n\n | \n | 2,526 | \n\n |
| \n Workers' compensation(1) \n | \n\n | \n | 15,439 | \n\n | \n | (832 | \n) | \n\n | 14,607 | \n\n | \n | 729 | \n\n | \n | 15,336 | \n\n |
| \n International—Canada \n | \n\n | \n | 1,482 | \n\n | \n | — | \n\n | \n | 1,482 | \n\n | \n | 157 | \n\n | \n | 1,639 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n General liability \n | \n\n | \n | 2,042 | \n\n | \n | — | \n\n | \n | 2,042 | \n\n | \n | 82 | \n\n | \n | 2,124 | \n\n |
| \n Fidelity and surety \n | \n\n | \n | 450 | \n\n | \n | — | \n\n | \n | 450 | \n\n | \n | 17 | \n\n | \n | 467 | \n\n |
| \n Personal Insurance \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Automobile \n | \n\n | \n | 2,277 | \n\n | \n | — | \n\n | \n | 2,277 | \n\n | \n | 465 | \n\n | \n | 2,742 | \n\n |
| \n Homeowners (excluding Other) \n | \n\n | \n | 742 | \n\n | \n | — | \n\n | \n | 742 | \n\n | \n | 2 | \n\n | \n | 744 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Subtotal—claims and allocated claim adjustment expenses for the products presented in the development tables below \n | \n\n | \n | 36,016 | \n\n | \n | (1,000 | \n) | \n\n | 35,016 | \n\n | \n | 2,695 | \n\n | \n | 37,711 | \n\n |
| \n Other insurance contracts(2) \n | \n\n | \n | 2,955 | \n\n | \n | (3 | \n) | \n\n | 2,952 | \n\n | \n | 2,058 | \n\n | \n | 5,010 | \n\n |
| \n Unallocated loss adjustment expense reserves \n | \n\n | \n | 1,936 | \n\n | \n | — | \n\n | \n | 1,936 | \n\n | \n | 40 | \n\n | \n | 1,976 | \n\n |
| \n Structured settlements(3) \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,168 | \n\n | \n | 3,168 | \n\n |
| \n Other \n | \n\n | \n | 44 | \n\n | \n | — | \n\n | \n | 44 | \n\n | \n | 20 | \n\n | \n | 64 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total property-casualty \n | \n\n | \n | 40,951 | \n\n | \n | (1,003 | \n) | \n\n | 39,948 | \n\n | \n | 7,981 | \n\n | \n | 47,929 | \n\n |
| \n Accident and health \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 20 | \n\n | \n | 20 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n40,951 | \n\n | $ | \n(1,003 | \n) | \n$ | \n39,948 | \n\n | $ | \n8,001 | \n\n | $ | \n47,949 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The claim development tables that follow present, by accident year, incurred and cumulative paid claims and allocated claim adjustment expense on a historical basis. This claim development information is presented on an undiscounted, net of reinsurance basis for ten years, or the number of years for which claims incurred typically remain outstanding if less than ten years. The claim development tables also provide the historical average annual percentage payout of incurred claims by age, net of reinsurance, as supplementary information (identified as unaudited in the tables below). The claim development information reflects the acquisition of The Dominion of Canada General Insurance Company (Dominion) in November 2013 on a retrospective basis (includes Dominion data for years prior to the Company's acquisition of Dominion).
\nBusiness and International Insurance
\nGeneral Liability
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,136 | \n\n | $ | \n1,162 | \n\n | $ | \n1,087 | \n\n | $ | \n1,089 | \n\n | $ | \n968 | \n\n | $ | \n919 | \n\n | $ | \n888 | \n\n | $ | \n883 | \n\n | $ | \n865 | \n\n | \n | \n | $ | \n824 | \n\n | $ | \n78 | \n\n | \n | 23,840 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,143 | \n\n | \n | 1,209 | \n\n | \n | 1,222 | \n\n | \n | 1,079 | \n\n | \n | 1,041 | \n\n | \n | 994 | \n\n | \n | 946 | \n\n | \n | 931 | \n\n | \n | \n | \n | 935 | \n\n | \n | 88 | \n\n | \n | 25,385 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,060 | \n\n | \n | 1,071 | \n\n | \n | 1,028 | \n\n | \n | 960 | \n\n | \n | 869 | \n\n | \n | 837 | \n\n | \n | 809 | \n\n | \n | \n | \n | 796 | \n\n | \n | 95 | \n\n | \n | 25,457 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,028 | \n\n | \n | 1,031 | \n\n | \n | 1,021 | \n\n | \n | 959 | \n\n | \n | 927 | \n\n | \n | 912 | \n\n | \n | \n | \n | 918 | \n\n | \n | 108 | \n\n | \n | 27,678 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,004 | \n\n | \n | 1,074 | \n\n | \n | 1,065 | \n\n | \n | 998 | \n\n | \n | 972 | \n\n | \n | \n | \n | 935 | \n\n | \n | 146 | \n\n | \n | 27,210 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 989 | \n\n | \n | 985 | \n\n | \n | 935 | \n\n | \n | 913 | \n\n | \n | \n | \n | 892 | \n\n | \n | 184 | \n\n | \n | 24,384 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 965 | \n\n | \n | 975 | \n\n | \n | 958 | \n\n | \n | \n | \n | 940 | \n\n | \n | 256 | \n\n | \n | 21,836 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 976 | \n\n | \n | 989 | \n\n | \n | \n | \n | 983 | \n\n | \n | 438 | \n\n | \n | 20,926 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 998 | \n\n | \n | \n | \n | 956 | \n\n | \n | 592 | \n\n | \n | 18,771 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,075 | \n\n | \n | 908 | \n\n | \n | 13,810 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n9,254 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n32 | \n\n | $ | \n134 | \n\n | $ | \n316 | \n\n | $ | \n467 | \n\n | $ | \n549 | \n\n | $ | \n632 | \n\n | $ | \n682 | \n\n | $ | \n697 | \n\n | $ | \n713 | \n\n | \n | \n | $ | \n726 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 35 | \n\n | \n | 154 | \n\n | \n | 359 | \n\n | \n | 497 | \n\n | \n | 615 | \n\n | \n | 694 | \n\n | \n | 734 | \n\n | \n | 759 | \n\n | \n | \n | \n | 799 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 167 | \n\n | \n | 314 | \n\n | \n | 446 | \n\n | \n | 543 | \n\n | \n | 613 | \n\n | \n | 643 | \n\n | \n | \n | \n | 667 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 139 | \n\n | \n | 324 | \n\n | \n | 487 | \n\n | \n | 629 | \n\n | \n | 702 | \n\n | \n | \n | \n | 756 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 47 | \n\n | \n | 187 | \n\n | \n | 355 | \n\n | \n | 539 | \n\n | \n | 660 | \n\n | \n | \n | \n | 725 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 32 | \n\n | \n | 150 | \n\n | \n | 295 | \n\n | \n | 489 | \n\n | \n | \n | \n | 589 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 175 | \n\n | \n | 363 | \n\n | \n | \n | \n | 498 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 37 | \n\n | \n | 163 | \n\n | \n | \n | \n | 321 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 36 | \n\n | \n | \n | \n | 137 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n5,253 | \n\n | $ | \n4,001 | \n\n | $ | \n3,033 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n7,034 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 3.9 | \n% | \n\n | 13.3 | \n% | \n\n | 19.1 | \n% | \n\n | 17.6 | \n% | \n\n | 12.4 | \n% | \n\n | 8.4 | \n% | \n\n | 5.0 | \n% | \n\n | 2.5 | \n% | \n\n | 3.1 | \n% | \n\n | 1.6 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Property
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n1,054 | \n\n | $ | \n988 | \n\n | $ | \n924 | \n\n | $ | \n889 | \n\n | \n | \n | $ | \n895 | \n\n | $ | \n13 | \n\n | \n | 28,183 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 789 | \n\n | \n | 755 | \n\n | \n | 737 | \n\n | \n | \n | \n | 731 | \n\n | \n | 10 | \n\n | \n | 22,141 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 936 | \n\n | \n | 860 | \n\n | \n | \n | \n | 836 | \n\n | \n | 15 | \n\n | \n | 21,490 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 786 | \n\n | \n | \n | \n | 750 | \n\n | \n | 28 | \n\n | \n | 19,859 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 896 | \n\n | \n | 131 | \n\n | \n | 19,327 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n4,108 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n453 | \n\n | $ | \n770 | \n\n | $ | \n845 | \n\n | $ | \n865 | \n\n | \n | \n | $ | \n872 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 389 | \n\n | \n | 610 | \n\n | \n | 683 | \n\n | \n | \n | \n | 703 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 464 | \n\n | \n | 710 | \n\n | \n | \n | \n | 775 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 376 | \n\n | \n | \n | \n | 615 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 441 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n3,406 | \n\n | $ | \n702 | \n\n | $ | \n164 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n866 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 51.7 | \n% | \n\n | 31.8 | \n% | \n\n | 8.7 | \n% | \n\n | 2.5 | \n% | \n\n | 0.8 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Multi-Peril
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,490 | \n\n | $ | \n1,430 | \n\n | $ | \n1,364 | \n\n | $ | \n1,402 | \n\n | $ | \n1,398 | \n\n | $ | \n1,375 | \n\n | $ | \n1,373 | \n\n | $ | \n1,369 | \n\n | $ | \n1,376 | \n\n | \n | \n | $ | \n1,369 | \n\n | $ | \n51 | \n\n | \n | 96,767 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,725 | \n\n | \n | 1,674 | \n\n | \n | 1,683 | \n\n | \n | 1,688 | \n\n | \n | 1,674 | \n\n | \n | 1,684 | \n\n | \n | 1,674 | \n\n | \n | 1,688 | \n\n | \n | \n | \n | 1,681 | \n\n | \n | 47 | \n\n | \n | 108,382 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,484 | \n\n | \n | 1,506 | \n\n | \n | 1,501 | \n\n | \n | 1,498 | \n\n | \n | 1,511 | \n\n | \n | 1,514 | \n\n | \n | 1,514 | \n\n | \n | \n | \n | 1,509 | \n\n | \n | 42 | \n\n | \n | 103,198 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,711 | \n\n | \n | 1,826 | \n\n | \n | 1,832 | \n\n | \n | 1,861 | \n\n | \n | 1,895 | \n\n | \n | 1,892 | \n\n | \n | \n | \n | 1,898 | \n\n | \n | 51 | \n\n | \n | 111,586 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,235 | \n\n | \n | 2,244 | \n\n | \n | 2,269 | \n\n | \n | 2,286 | \n\n | \n | 2,296 | \n\n | \n | \n | \n | 2,287 | \n\n | \n | 66 | \n\n | \n | 125,358 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,885 | \n\n | \n | 1,883 | \n\n | \n | 1,903 | \n\n | \n | 1,888 | \n\n | \n | \n | \n | 1,888 | \n\n | \n | 88 | \n\n | \n | 104,419 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,615 | \n\n | \n | 1,623 | \n\n | \n | 1,620 | \n\n | \n | \n | \n | 1,609 | \n\n | \n | 122 | \n\n | \n | 82,936 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,663 | \n\n | \n | 1,627 | \n\n | \n | \n | \n | 1,625 | \n\n | \n | 193 | \n\n | \n | 76,833 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,568 | \n\n | \n | \n | \n | 1,625 | \n\n | \n | 354 | \n\n | \n | 68,278 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,662 | \n\n | \n | 658 | \n\n | \n | 56,471 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n17,153 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n498 | \n\n | $ | \n824 | \n\n | $ | \n982 | \n\n | $ | \n1,110 | \n\n | $ | \n1,208 | \n\n | $ | \n1,256 | \n\n | $ | \n1,278 | \n\n | $ | \n1,296 | \n\n | $ | \n1,307 | \n\n | \n | \n | $ | \n1,312 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 712 | \n\n | \n | 1,103 | \n\n | \n | 1,264 | \n\n | \n | 1,396 | \n\n | \n | 1,490 | \n\n | \n | 1,551 | \n\n | \n | 1,581 | \n\n | \n | 1,602 | \n\n | \n | \n | \n | 1,617 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 603 | \n\n | \n | 958 | \n\n | \n | 1,121 | \n\n | \n | 1,264 | \n\n | \n | 1,360 | \n\n | \n | 1,408 | \n\n | \n | 1,436 | \n\n | \n | \n | \n | 1,449 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 709 | \n\n | \n | 1,180 | \n\n | \n | 1,395 | \n\n | \n | 1,579 | \n\n | \n | 1,698 | \n\n | \n | 1,763 | \n\n | \n | \n | \n | 1,798 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,060 | \n\n | \n | 1,573 | \n\n | \n | 1,803 | \n\n | \n | 1,979 | \n\n | \n | 2,088 | \n\n | \n | \n | \n | 2,156 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 795 | \n\n | \n | 1,246 | \n\n | \n | 1,424 | \n\n | \n | 1,590 | \n\n | \n | \n | \n | 1,699 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 644 | \n\n | \n | 987 | \n\n | \n | 1,167 | \n\n | \n | \n | \n | 1,304 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 628 | \n\n | \n | 956 | \n\n | \n | \n | \n | 1,154 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 595 | \n\n | \n | \n | \n | 970 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 585 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n14,044 | \n\n | $ | \n3,109 | \n\n | $ | \n305 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n3,414 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 39.5 | \n% | \n\n | 22.9 | \n% | \n\n | 10.8 | \n% | \n\n | 8.8 | \n% | \n\n | 6.0 | \n% | \n\n | 3.3 | \n% | \n\n | 1.8 | \n% | \n\n | 1.1 | \n% | \n\n | 0.9 | \n% | \n\n | 0.4 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Automobile
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n1,294 | \n\n | $ | \n1,350 | \n\n | $ | \n1,327 | \n\n | $ | \n1,325 | \n\n | \n | \n | $ | \n1,337 | \n\n | $ | \n35 | \n\n | \n | 214,780 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,235 | \n\n | \n | 1,236 | \n\n | \n | 1,240 | \n\n | \n | \n | \n | 1,245 | \n\n | \n | 67 | \n\n | \n | 197,041 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,165 | \n\n | \n | 1,166 | \n\n | \n | \n | \n | 1,168 | \n\n | \n | 131 | \n\n | \n | 184,067 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,198 | \n\n | \n | \n | \n | 1,215 | \n\n | \n | 246 | \n\n | \n | 179,963 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,290 | \n\n | \n | 516 | \n\n | \n | 173,790 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n6,255 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n467 | \n\n | $ | \n753 | \n\n | $ | \n960 | \n\n | $ | \n1,134 | \n\n | \n | \n | $ | \n1,235 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 435 | \n\n | \n | 675 | \n\n | \n | 884 | \n\n | \n | \n | \n | 1,039 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 397 | \n\n | \n | 618 | \n\n | \n | \n | \n | 821 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 409 | \n\n | \n | \n | \n | 658 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 416 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n4,169 | \n\n | $ | \n2,086 | \n\n | $ | \n184 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,270 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 34.0 | \n% | \n\n | 20.0 | \n% | \n\n | 16.6 | \n% | \n\n | 12.7 | \n% | \n\n | 7.6 | \n% | \n\n | \n | \n | \n | \n | \n |
Workers' Compensation
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,554 | \n\n | $ | \n1,519 | \n\n | $ | \n1,484 | \n\n | $ | \n1,448 | \n\n | $ | \n1,390 | \n\n | $ | \n1,373 | \n\n | $ | \n1,358 | \n\n | $ | \n1,340 | \n\n | $ | \n1,328 | \n\n | \n | \n | $ | \n1,341 | \n\n | $ | \n217 | \n\n | \n | 103,064 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,714 | \n\n | \n | 1,745 | \n\n | \n | 1,734 | \n\n | \n | 1,683 | \n\n | \n | 1,639 | \n\n | \n | 1,634 | \n\n | \n | 1,621 | \n\n | \n | 1,617 | \n\n | \n | \n | \n | 1,617 | \n\n | \n | 237 | \n\n | \n | 107,565 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,799 | \n\n | \n | 1,778 | \n\n | \n | 1,746 | \n\n | \n | 1,753 | \n\n | \n | 1,753 | \n\n | \n | 1,766 | \n\n | \n | 1,775 | \n\n | \n | \n | \n | 1,750 | \n\n | \n | 272 | \n\n | \n | 104,229 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,886 | \n\n | \n | 2,042 | \n\n | \n | 2,035 | \n\n | \n | 2,056 | \n\n | \n | 2,049 | \n\n | \n | 2,052 | \n\n | \n | \n | \n | 2,055 | \n\n | \n | 354 | \n\n | \n | 116,837 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,284 | \n\n | \n | 2,303 | \n\n | \n | 2,347 | \n\n | \n | 2,350 | \n\n | \n | 2,379 | \n\n | \n | \n | \n | 2,385 | \n\n | \n | 430 | \n\n | \n | 135,061 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,447 | \n\n | \n | 2,456 | \n\n | \n | 2,457 | \n\n | \n | 2,456 | \n\n | \n | \n | \n | 2,445 | \n\n | \n | 519 | \n\n | \n | 133,417 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,553 | \n\n | \n | 2,545 | \n\n | \n | 2,540 | \n\n | \n | \n | \n | 2,506 | \n\n | \n | 651 | \n\n | \n | 128,111 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,554 | \n\n | \n | 2,553 | \n\n | \n | \n | \n | 2,547 | \n\n | \n | 839 | \n\n | \n | 123,110 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,644 | \n\n | \n | \n | \n | 2,585 | \n\n | \n | 1,142 | \n\n | \n | 120,681 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,768 | \n\n | \n | 1,651 | \n\n | \n | 108,357 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n21,999 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n216 | \n\n | $ | \n450 | \n\n | $ | \n589 | \n\n | $ | \n683 | \n\n | $ | \n747 | \n\n | $ | \n802 | \n\n | $ | \n845 | \n\n | $ | \n880 | \n\n | $ | \n910 | \n\n | \n | \n | $ | \n936 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 274 | \n\n | \n | 571 | \n\n | \n | 752 | \n\n | \n | 875 | \n\n | \n | 961 | \n\n | \n | 1,036 | \n\n | \n | 1,088 | \n\n | \n | 1,130 | \n\n | \n | \n | \n | 1,162 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 288 | \n\n | \n | 623 | \n\n | \n | 828 | \n\n | \n | 961 | \n\n | \n | 1,065 | \n\n | \n | 1,137 | \n\n | \n | 1,193 | \n\n | \n | \n | \n | 1,235 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 341 | \n\n | \n | 750 | \n\n | \n | 978 | \n\n | \n | 1,133 | \n\n | \n | 1,246 | \n\n | \n | 1,321 | \n\n | \n | \n | \n | 1,385 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 420 | \n\n | \n | 911 | \n\n | \n | 1,185 | \n\n | \n | 1,365 | \n\n | \n | 1,487 | \n\n | \n | \n | \n | 1,583 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 443 | \n\n | \n | 940 | \n\n | \n | 1,217 | \n\n | \n | 1,394 | \n\n | \n | \n | \n | 1,536 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 458 | \n\n | \n | 954 | \n\n | \n | 1,237 | \n\n | \n | \n | \n | 1,413 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 455 | \n\n | \n | 944 | \n\n | \n | \n | \n | 1,224 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 430 | \n\n | \n | \n | \n | 893 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 421 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n11,788 | \n\n | $ | \n10,211 | \n\n | $ | \n5,228 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n15,439 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 17.0 | \n% | \n\n | 19.2 | \n% | \n\n | 11.2 | \n% | \n\n | 7.4 | \n% | \n\n | 5.4 | \n% | \n\n | 4.1 | \n% | \n\n | 3.2 | \n% | \n\n | 2.5 | \n% | \n\n | 2.1 | \n% | \n\n | 1.9 | \n% | \n\n | \n | \n | \n | \n | \n |
International—Canada
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n632 | \n\n | $ | \n626 | \n\n | $ | \n616 | \n\n | $ | \n608 | \n\n | $ | \n607 | \n\n | $ | \n609 | \n\n | $ | \n611 | \n\n | $ | \n608 | \n\n | $ | \n601 | \n\n | \n | \n | $ | \n597 | \n\n | $ | \n4 | \n\n | \n | 66,327 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 681 | \n\n | \n | 685 | \n\n | \n | 670 | \n\n | \n | 665 | \n\n | \n | 658 | \n\n | \n | 655 | \n\n | \n | 651 | \n\n | \n | 646 | \n\n | \n | \n | \n | 642 | \n\n | \n | 5 | \n\n | \n | 71,803 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 724 | \n\n | \n | 718 | \n\n | \n | 707 | \n\n | \n | 714 | \n\n | \n | 714 | \n\n | \n | 702 | \n\n | \n | 696 | \n\n | \n | \n | \n | 690 | \n\n | \n | 13 | \n\n | \n | 71,671 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 715 | \n\n | \n | 722 | \n\n | \n | 721 | \n\n | \n | 735 | \n\n | \n | 724 | \n\n | \n | 715 | \n\n | \n | \n | \n | 706 | \n\n | \n | 20 | \n\n | \n | 71,437 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 723 | \n\n | \n | 696 | \n\n | \n | 686 | \n\n | \n | 682 | \n\n | \n | 678 | \n\n | \n | \n | \n | 669 | \n\n | \n | 30 | \n\n | \n | 72,063 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 664 | \n\n | \n | 642 | \n\n | \n | 631 | \n\n | \n | 611 | \n\n | \n | \n | \n | 616 | \n\n | \n | 50 | \n\n | \n | 67,320 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 723 | \n\n | \n | 717 | \n\n | \n | 701 | \n\n | \n | \n | \n | 685 | \n\n | \n | 56 | \n\n | \n | 71,183 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 665 | \n\n | \n | 678 | \n\n | \n | \n | \n | 682 | \n\n | \n | 83 | \n\n | \n | 67,935 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 597 | \n\n | \n | \n | \n | 610 | \n\n | \n | 112 | \n\n | \n | 58,238 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 612 | \n\n | \n | 102 | \n\n | \n | 54,948 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n6,509 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n228 | \n\n | $ | \n355 | \n\n | $ | \n410 | \n\n | $ | \n450 | \n\n | $ | \n488 | \n\n | $ | \n524 | \n\n | $ | \n547 | \n\n | $ | \n561 | \n\n | $ | \n570 | \n\n | \n | \n | $ | \n578 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 256 | \n\n | \n | 406 | \n\n | \n | 460 | \n\n | \n | 501 | \n\n | \n | 543 | \n\n | \n | 579 | \n\n | \n | 603 | \n\n | \n | 616 | \n\n | \n | \n | \n | 622 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 274 | \n\n | \n | 419 | \n\n | \n | 479 | \n\n | \n | 525 | \n\n | \n | 573 | \n\n | \n | 608 | \n\n | \n | 630 | \n\n | \n | \n | \n | 648 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 258 | \n\n | \n | 403 | \n\n | \n | 465 | \n\n | \n | 522 | \n\n | \n | 573 | \n\n | \n | 615 | \n\n | \n | \n | \n | 641 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 253 | \n\n | \n | 380 | \n\n | \n | 432 | \n\n | \n | 481 | \n\n | \n | 538 | \n\n | \n | \n | \n | 571 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 225 | \n\n | \n | 336 | \n\n | \n | 389 | \n\n | \n | 435 | \n\n | \n | \n | \n | 482 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 260 | \n\n | \n | 388 | \n\n | \n | 439 | \n\n | \n | \n | \n | 494 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 252 | \n\n | \n | 382 | \n\n | \n | \n | \n | 445 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 228 | \n\n | \n | \n | \n | 346 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 295 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n5,122 | \n\n | $ | \n1,387 | \n\n | $ | \n95 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n1,482 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 38.9 | \n% | \n\n | 20.0 | \n% | \n\n | 8.5 | \n% | \n\n | 7.2 | \n% | \n\n | 7.2 | \n% | \n\n | 5.5 | \n% | \n\n | 3.6 | \n% | \n\n | 2.3 | \n% | \n\n | 1.2 | \n% | \n\n | 1.4 | \n% | \n\n | \n | \n | \n | \n | \n |
The incurred and paid amounts have been translated from the local currency to U.S. dollars using the December 31, 2016 spot rate for all years presented in the table above in order to isolate changes in foreign exchange rates from loss development.
\nBond & Specialty Insurance
\nGeneral Liability
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n584 | \n\n | $ | \n571 | \n\n | $ | \n638 | \n\n | $ | \n582 | \n\n | $ | \n551 | \n\n | $ | \n511 | \n\n | $ | \n479 | \n\n | $ | \n467 | \n\n | $ | \n462 | \n\n | \n | \n | $ | \n454 | \n\n | $ | \n4 | \n\n | \n | 11,018 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 579 | \n\n | \n | 769 | \n\n | \n | 743 | \n\n | \n | 697 | \n\n | \n | 716 | \n\n | \n | 712 | \n\n | \n | 672 | \n\n | \n | 643 | \n\n | \n | \n | \n | 631 | \n\n | \n | 24 | \n\n | \n | 6,463 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 592 | \n\n | \n | 624 | \n\n | \n | 665 | \n\n | \n | 686 | \n\n | \n | 680 | \n\n | \n | 660 | \n\n | \n | 655 | \n\n | \n | \n | \n | 641 | \n\n | \n | 24 | \n\n | \n | 6,287 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 571 | \n\n | \n | 612 | \n\n | \n | 679 | \n\n | \n | 679 | \n\n | \n | 661 | \n\n | \n | 668 | \n\n | \n | \n | \n | 653 | \n\n | \n | 18 | \n\n | \n | 5,655 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 565 | \n\n | \n | 596 | \n\n | \n | 639 | \n\n | \n | 632 | \n\n | \n | 601 | \n\n | \n | \n | \n | 545 | \n\n | \n | 34 | \n\n | \n | 5,191 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 538 | \n\n | \n | 591 | \n\n | \n | 614 | \n\n | \n | 605 | \n\n | \n | \n | \n | 601 | \n\n | \n | 137 | \n\n | \n | 4,824 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 510 | \n\n | \n | 565 | \n\n | \n | 606 | \n\n | \n | \n | \n | 630 | \n\n | \n | 204 | \n\n | \n | 4,371 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 549 | \n\n | \n | 571 | \n\n | \n | \n | \n | 563 | \n\n | \n | 232 | \n\n | \n | 4,182 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 528 | \n\n | \n | \n | \n | 524 | \n\n | \n | 272 | \n\n | \n | 3,814 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 512 | \n\n | \n | 405 | \n\n | \n | 2,676 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n5,754 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n35 | \n\n | $ | \n134 | \n\n | $ | \n229 | \n\n | $ | \n303 | \n\n | $ | \n357 | \n\n | $ | \n373 | \n\n | $ | \n393 | \n\n | $ | \n400 | \n\n | $ | \n410 | \n\n | \n | \n | $ | \n415 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 47 | \n\n | \n | 157 | \n\n | \n | 281 | \n\n | \n | 387 | \n\n | \n | 471 | \n\n | \n | 529 | \n\n | \n | 562 | \n\n | \n | 579 | \n\n | \n | \n | \n | 590 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 36 | \n\n | \n | 167 | \n\n | \n | 310 | \n\n | \n | 390 | \n\n | \n | 460 | \n\n | \n | 497 | \n\n | \n | 563 | \n\n | \n | \n | \n | 592 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 33 | \n\n | \n | 152 | \n\n | \n | 291 | \n\n | \n | 396 | \n\n | \n | 482 | \n\n | \n | 565 | \n\n | \n | \n | \n | 597 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 33 | \n\n | \n | 143 | \n\n | \n | 249 | \n\n | \n | 324 | \n\n | \n | 414 | \n\n | \n | \n | \n | 447 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | 160 | \n\n | \n | 255 | \n\n | \n | 342 | \n\n | \n | \n | \n | 383 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 34 | \n\n | \n | 154 | \n\n | \n | 252 | \n\n | \n | \n | \n | 352 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | 150 | \n\n | \n | \n | \n | 239 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | \n | \n | 141 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 30 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n3,786 | \n\n | $ | \n1,968 | \n\n | $ | \n74 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,042 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 6.3 | \n% | \n\n | 19.7 | \n% | \n\n | 18.8 | \n% | \n\n | 15.1 | \n% | \n\n | 12.1 | \n% | \n\n | 7.5 | \n% | \n\n | 6.2 | \n% | \n\n | 3.0 | \n% | \n\n | 1.9 | \n% | \n\n | 1.1 | \n% | \n\n | \n | \n | \n | \n | \n |
Fidelity and Surety
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n255 | \n\n | $ | \n262 | \n\n | $ | \n249 | \n\n | $ | \n175 | \n\n | \n | \n | $ | \n140 | \n\n | $ | \n9 | \n\n | \n | 1,148 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 240 | \n\n | \n | 246 | \n\n | \n | 199 | \n\n | \n | \n | \n | 146 | \n\n | \n | 6 | \n\n | \n | 1,006 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 223 | \n\n | \n | 212 | \n\n | \n | \n | \n | 165 | \n\n | \n | 32 | \n\n | \n | 992 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 217 | \n\n | \n | \n | \n | 191 | \n\n | \n | 79 | \n\n | \n | 768 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 226 | \n\n | \n | 128 | \n\n | \n | 595 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n868 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n42 | \n\n | $ | \n108 | \n\n | $ | \n124 | \n\n | $ | \n110 | \n\n | \n | \n | $ | \n111 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 37 | \n\n | \n | 113 | \n\n | \n | 128 | \n\n | \n | \n | \n | 131 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 58 | \n\n | \n | 96 | \n\n | \n | \n | \n | 111 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 32 | \n\n | \n | \n | \n | 75 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 54 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n482 | \n\n | $ | \n386 | \n\n | $ | \n64 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n450 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 26.1 | \n% | \n\n | 36.2 | \n% | \n\n | 10.1 | \n% | \n\n | (3.6)%(1 | \n) | \n\n | 0.8 | \n% | \n\n | \n | \n | \n | \n | \n |
Personal Insurance
\nAutomobile
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n2,417 | \n\n | $ | \n2,454 | \n\n | $ | \n2,448 | \n\n | $ | \n2,432 | \n\n | \n | \n | $ | \n2,428 | \n\n | $ | \n15 | \n\n | \n | 793,669 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 2,108 | \n\n | \n | 2,095 | \n\n | \n | 2,049 | \n\n | \n | \n | \n | 2,044 | \n\n | \n | 36 | \n\n | \n | 694,650 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 2,014 | \n\n | \n | 1,994 | \n\n | \n | \n | \n | 1,981 | \n\n | \n | 75 | \n\n | \n | 669,990 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,186 | \n\n | \n | \n | \n | 2,244 | \n\n | \n | 224 | \n\n | \n | 755,762 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,779 | \n\n | \n | 646 | \n\n | \n | 839,962 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n11,476 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n1,503 | \n\n | $ | \n1,983 | \n\n | $ | \n2,189 | \n\n | $ | \n2,311 | \n\n | \n | \n | $ | \n2,376 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,251 | \n\n | \n | 1,628 | \n\n | \n | 1,814 | \n\n | \n | \n | \n | 1,935 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,193 | \n\n | \n | 1,564 | \n\n | \n | \n | \n | 1,763 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,319 | \n\n | \n | \n | \n | 1,768 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,610 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n9,452 | \n\n | $ | \n2,024 | \n\n | $ | \n253 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,277 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 60.0 | \n% | \n\n | 19.2 | \n% | \n\n | 9.2 | \n% | \n\n | 5.5 | \n% | \n\n | 2.7 | \n% | \n\n | \n | \n | \n | \n | \n |
Homeowners (excluding Other)
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n2,136 | \n\n | $ | \n2,056 | \n\n | $ | \n2,029 | \n\n | $ | \n2,018 | \n\n | \n | \n | $ | \n2,019 | \n\n | $ | \n1 | \n\n | \n | 259,006 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,488 | \n\n | \n | 1,397 | \n\n | \n | 1,365 | \n\n | \n | \n | \n | 1,375 | \n\n | \n | 4 | \n\n | \n | 149,373 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,515 | \n\n | \n | 1,450 | \n\n | \n | \n | \n | 1,453 | \n\n | \n | 9 | \n\n | \n | 151,517 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,438 | \n\n | \n | \n | \n | 1,454 | \n\n | \n | 28 | \n\n | \n | 144,367 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,556 | \n\n | \n | 307 | \n\n | \n | 129,630 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | Total | \n\n | \n | \n | $ | \n7,857 | \n\n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n1,508 | \n\n | $ | \n1,901 | \n\n | $ | \n1,964 | \n\n | $ | \n1,993 | \n\n | \n | \n | $ | \n2,008 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 994 | \n\n | \n | 1,269 | \n\n | \n | 1,317 | \n\n | \n | \n | \n | 1,344 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,053 | \n\n | \n | 1,338 | \n\n | \n | \n | \n | 1,402 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 994 | \n\n | \n | \n | \n | 1,333 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,049 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n7,136 | \n\n | $ | \n721 | \n\n | $ | \n21 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n742 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 71.1 | \n% | \n\n | 20.6 | \n% | \n\n | 3.7 | \n% | \n\n | 1.7 | \n% | \n\n | 0.7 | \n% | \n\n | \n | \n | \n | \n | \n |
Methodology for Estimating Incurred But Not Reported (IBNR) Reserves
\nClaims and claim adjustment expense reserves represent management's estimate of the ultimate liability for unpaid losses and loss adjustment expenses for claims that have been reported and claims that have been incurred but not yet reported as of the balance sheet date. Claims and claim adjustment expense reserves do not represent an exact calculation of the liability, but instead represent management estimates, primarily utilizing actuarial expertise and projection methods that develop estimates for the ultimate cost of claims and claim adjustment expenses. Because the establishment of claims and claims adjustment expense reserves is an inherently uncertain process involving estimates and judgment, currently estimated claims and claim adjustment expense reserves may change. The Company reflects changes to the reserves in the results of operations in the period the estimates are changed.
\nCumulative amounts paid and case reserves held as of the balance sheet date are subtracted from the estimate of the ultimate cost of claims and claim adjustment expenses to derive incurred but not reported (IBNR) reserves. Accordingly, IBNR reserves include the cost of unreported claims, development on known claims and re-opened claims. This approach to estimating IBNR reserves has been in place for many years, with no material changes in methodology in the past year.
\nDetailed claim data is typically insufficient to produce a reliable indication of the initial estimate for ultimate claims and claim adjustment expenses for an accident year. As a result, the initial estimate for an accident year is generally based on an exposure-based method using either the loss ratio projection or the expected loss method. The loss ratio projection method, which is typically used for guaranteed cost business, develops an initial estimate of ultimate claims and claim adjustment expenses for an accident year by multiplying earned premium for the accident year by a projected loss ratio. The projected loss ratio is determined by analyzing prior period experience, and adjusting for loss cost trends, rate level differences, mix of business changes and other known or observed factors influencing the accident year relative to prior accident years. The expected loss method, which is typically used for loss sensitive business, develops an initial estimate of ultimate claims and claim adjustment expenses for an accident year by analyzing exposures by account.
\nFor prior accident years, the following estimation and analysis methods are principally used by the Company's actuaries to estimate the ultimate cost of claims and claim adjustment expenses. These estimation and analysis methods are typically referred to as conventional actuarial methods.
\nWhile these are the principal methods utilized, the Company's actuaries have available to them the full range of actuarial methods developed by the casualty actuarial profession. The Company's actuaries are also continually monitoring developments within the profession for advances in existing techniques or the creation of new techniques that might improve current and future estimates. Most actuarial methods assume that past patterns demonstrated in the data will repeat themselves in the future. For certain reserve components where this assumption may not hold, such as asbestos and environmental reserves, conventional actuarial methods are not utilized by the Company.
\nMethodology for Determining Cumulative Number of Reported Claims
\nA claim file is created when the Company is notified of an actual demand for payment, notified of an event that may lead to a demand for payment or when it is determined that a demand for payment could possibly lead to a future demand for payment on another coverage on the same policy or on another policy. Claim files are generally created for a policy at the claimant by coverage level, depending on the particular facts and circumstances of the underlying event.
\nFor Business and International Insurance and for Personal Insurance, claim file information is summarized such that the Company generally recognizes one count for each policy claim event by internal regulatory line of business, regardless of the number of claimants or coverages involved. The claims counts are then accumulated and reported by product line. While the methodology is generally consistent within each segment for the product lines displayed, there are some minor differences between and within segments. For Bond & Specialty Insurance, the Company recognizes one count per coverage per policy claim event.
\nFor purposes of the claims development tables above, claims reported for direct business are counted even if they eventually close with no loss payment, except in the case of (i) deductible business, where the claim is not counted until the case incurred claim estimate is above the deductible, and (ii) International-Canada reported claim counts where claims closed with no loss payment are not counted. Note that claims with zero claim dollars may still generate some level of claim adjustment expenses. Claim counts for assumed business are included only to the extent such counts are available. The Company generally does not receive claim count information for which the underlying claim activity is handled by others, including pools and associations. The Company does not generate claim counts for ceded business. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables above.
\nThe Company cautions against using the summarized claim count information provided in this disclosure in attempting to project ultimate loss payouts by product line. The Company generally finds claim count data to be useful only on a more granular basis than the aggregated basis disclosed in the claim development tables above, as the risks, average values and other dynamics of the claim process can vary materially by the cause of loss and coverage within product line. For example, in Personal Automobile, the introduction of a new roadside assistance coverage feature several years ago resulted in a significant increase in claim counts with a low average claim cost. For this reason the Company varies its approach to, and in many cases the level of aggregation for, counting claims for internal analysis purposes depending on the particular granular analysis performed.
\nAsbestos and Environmental Reserves
\nAt December 31, 2016 and 2015, the Company's claims and claim adjustment expense reserves included $1.71 billion and $2.17 billion, respectively, for asbestos and environmental-related claims, net of reinsurance.
\nIt is difficult to estimate the reserves for asbestos and environmental-related claims due to the vagaries of court coverage decisions, plaintiffs' expanded theories of liability, the risks inherent in complex litigation and other uncertainties, including, without limitation, those which are set forth below.
\nAsbestos Reserves. Because each policyholder presents different liability and coverage issues, the Company generally reviews the exposure presented by each policyholder at least annually. Among the factors which the Company may consider in the course of this review are: available insurance coverage, including the role of any umbrella or excess insurance the Company has issued to the policyholder; limits and deductibles; an analysis of the policyholder's potential liability; the jurisdictions involved; past and anticipated future claim activity and loss development on pending claims; past settlement values of similar claims; allocated claim adjustment expense; potential role of other insurance; the role, if any, of non-asbestos claims or potential non-asbestos claims in any resolution process; and applicable coverage defenses or determinations, if any, including the determination as to whether or not an asbestos claim is a products/completed operation claim subject to an aggregate limit and the available coverage, if any, for that claim.
\nIn the third quarter of 2016, the Company completed its annual in-depth asbestos claim review, including a review of active policyholders and litigation cases for potential product and \"non-product\" liability, and noted the continuation of the following trends:
\nIn the Home Office and Field Office category, which accounts for the vast majority of policyholders with active asbestos-related claims, the number of policyholders tendering asbestos claims for the first time, the number of policyholders with open asbestos claims and both gross and net asbestos-related payments declined slightly when compared to 2015. Payments on behalf of policyholders in this category continue to be influenced by the high level of litigation activity in a limited number of jurisdictions where individuals alleging serious asbestos-related injury, primarily mesothelioma, continue to target defendants who were not traditionally primary targets of asbestos litigation.
\nThe Company's quarterly asbestos reserve reviews include an analysis of exposure and claim payment patterns by policyholder category, as well as recent settlements, policyholder bankruptcies, judicial rulings and legislative actions. The Company also analyzes developing payment patterns among policyholders in the Home Office and Field Office, and Assumed Reinsurance and Other categories as well as projected reinsurance billings and recoveries. In addition, the Company reviews its historical gross and net loss and expense paid experience, year-by-year, to assess any emerging trends, fluctuations, or characteristics suggested by the aggregate paid activity. Conventional actuarial methods are not utilized to establish asbestos reserves nor have the Company's evaluations resulted in any way of determining a meaningful average asbestos defense or indemnity payment.
\nThe completion of these reviews and analyses in 2016, 2015 and 2014 resulted in $225 million, $224 million and $250 million increases, respectively, in the Company's net asbestos reserves. In each year, the reserve increases were primarily driven by increases in the Company's estimate of projected settlement and defense costs related to a broad number of policyholders in the Home Office category due to a higher than previously anticipated level of litigation activity surrounding mesothelioma claims. This increase in the estimate of projected settlement and defense costs resulted from payment trends that continue to be higher than previously anticipated due to the impact of the current litigation environment discussed above. Over the past decade, the property and casualty insurance industry, including the Company, has experienced net unfavorable prior year reserve development with regard to asbestos reserves, but the Company believes that over that period there has been a reduction in the volatility associated with the Company's overall asbestos exposure as the overall asbestos environment has evolved from one dominated by exposure to significant litigation risks, particularly coverage disputes relating to policyholders in bankruptcy who were asserting that their claims were not subject to the aggregate limits contained in their policies, to an environment primarily driven by a frequency of litigation related to individuals with mesothelioma. The Company's overall view of the current underlying asbestos environment is essentially unchanged from recent periods and there remains a high degree of uncertainty with respect to future exposure to asbestos claims.
\nNet asbestos paid loss and loss expenses in 2016, 2015 and 2014 were $708 million, $770 million and $242 million, respectively. Net payments in 2016 included the payment of the $518 million settlement amounts related to PPG Industries, Inc. Net payments in 2015 included the payment of the $502 million settlement amounts related to the Settlement of Asbestos Direct Action Litigation as described in more detail in note 16. Approximately 69%, 69% and 8% of total net paid losses in 2016, 2015 and 2014, respectively, related to policyholders with whom the Company had entered into settlement agreements limiting the Company's liability.
\nEnvironmental Reserves. In establishing environmental reserves, the Company evaluates the exposure presented by each policyholder and the anticipated cost of resolution, if any. In the course of this analysis, the Company generally considers the probable liability, available coverage and relevant judicial interpretations. In addition, the Company considers the many variables presented, such as: the nature of the alleged activities of the policyholder at each site; the number of sites; the total number of potentially responsible parties at each site; the nature of the alleged environmental harm and the corresponding remedy at each site; the nature of government enforcement activities at each site; the ownership and general use of each site; the overall nature of the insurance relationship between the Company and the policyholder, including the role of any umbrella or excess insurance the Company has issued to the policyholder; the involvement of other insurers; the potential for other available coverage, including the number of years of coverage; the role, if any, of non-environmental claims or potential non-environmental claims in any resolution process; and the applicable law in each jurisdiction. The evaluation of the exposure presented by a policyholder can change as information concerning that policyholder and the many variables presented is developed. Conventional actuarial methods are not used to estimate these reserves.
\nThe Company continues to receive notices from policyholders tendering claims for the first time, frequently under policies issued prior to the mid-1980s. These policyholders continue to present smaller exposures, have fewer sites and are lower tier defendants. Further, in many instances, clean-up costs have been reduced because regulatory agencies are willing to accept risk-based site analyses and more efficient clean-up technologies. Over the past several years, the Company has experienced generally favorable trends in the number of new policyholders tendering environmental claims for the first time and in the number of pending declaratory judgment actions relating to environmental matters. However, the degree to which those favorable trends have continued has been less than anticipated. In addition, reserve development on existing environmental claims has been greater than anticipated, driven by claims and legal developments in a limited number of jurisdictions. As a result of these factors, in 2016, 2015 and 2014, the Company increased its net environmental reserves by $82 million, $72 million and $87 million, respectively.
\nAsbestos and Environmental Reserves. As a result of the processes and procedures discussed above, management believes that the reserves carried for asbestos and environmental claims are appropriately established based upon known facts, current law and management's judgment. However, the uncertainties surrounding the final resolution of these claims continue, and it is difficult to determine the ultimate exposure for asbestos and environmental claims and related litigation. As a result, these reserves are subject to revision as new information becomes available and as claims develop. The continuing uncertainties include, without limitation, the risks and lack of predictability inherent in complex litigation, any impact from the bankruptcy protection sought by various asbestos producers and other asbestos defendants, a further increase or decrease in the cost to resolve, and/or the number of, asbestos and environmental claims beyond that which is anticipated, the emergence of a greater number of asbestos claims than anticipated as a result of extended life expectancies resulting from medical advances and lifestyle improvements, the role of any umbrella or excess policies the Company has issued, the resolution or adjudication of disputes pertaining to the amount of available coverage for asbestos and environmental claims in a manner inconsistent with the Company's previous assessment of these claims, the number and outcome of direct actions against the Company, future developments pertaining to the Company's ability to recover reinsurance for asbestos and environmental claims and the unavailability of other insurance sources potentially available to policyholders, whether through exhaustion of policy limits or through the insolvency of other participating insurers. In addition, uncertainties arise from the insolvency or bankruptcy of policyholders and other defendants. It is also not possible to predict changes in the legal, regulatory and legislative environment and their impact on the future development of asbestos and environmental claims. This environment could be affected by changes in applicable legislation and future court and regulatory decisions and interpretations, including the outcome of legal challenges to legislative and/or judicial reforms establishing medical criteria for the pursuit of asbestos claims. It is also difficult to predict the ultimate outcome of complex coverage disputes until settlement negotiations near completion and significant legal questions are resolved or, failing settlement, until the dispute is adjudicated. This is particularly the case with policyholders in bankruptcy where negotiations often involve a large number of claimants and other parties and require court approval to be effective. As part of its continuing analysis of asbestos and environmental reserves, the Company continues to study the implications of these and other developments.
\nBecause of the uncertainties set forth above, additional liabilities may arise for amounts in excess of the Company's current reserves. In addition, the Company's estimate of claims and claim adjustment expenses may change. These additional liabilities or increases in estimates, or a range of either, cannot now be reasonably estimated and could result in income statement charges that could be material to the Company's operating results in future periods.
\nCatastrophe Exposure
\nThe Company has geographic exposure to catastrophe losses, which can be caused by a variety of events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also result from terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical, radiological, cyber-attacks, explosions and infrastructure failures. The incidence and severity of catastrophes are inherently unpredictable. The extent of losses from a catastrophe is a function of both the total amount of insured exposure in the area affected by the event and the severity of the event. Most catastrophes are restricted to small geographic areas; however, hurricanes and earthquakes may produce significant damage in larger areas, especially those that are heavily populated. The Company generally seeks to mitigate its exposure to catastrophes through individual risk selection and the purchase of catastrophe reinsurance.
\nThere are also risks which impact the estimation of ultimate costs for catastrophes. For example, the estimation of reserves related to hurricanes can be affected by the inability of the Company and its insureds to access portions of the impacted areas, the complexity of factors contributing to the losses, the legal and regulatory uncertainties and the nature of the information available to establish the reserves. Complex factors include, but are not limited to: determining whether damage was caused by flooding versus wind; evaluating general liability and pollution exposures; estimating additional living expenses; the impact of demand surge; the potential impact of changing climate conditions, including higher frequency and severity of weather-related events; infrastructure disruption; fraud; the effect of mold damage and business income interruption costs; and reinsurance collectibility. The timing of a catastrophe's occurrence, such as at or near the end of a reporting period, can also affect the information available to the Company in estimating reserves for that reporting period. The estimates related to catastrophes are adjusted as actual claims emerge.
\n8. DEBT
\nDebt outstanding was as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Short-term: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Commercial paper \n | \n\n | $ | \n100 | \n\n | $ | \n100 | \n\n |
| \n 5.75% Senior notes due December 15, 2017 \n | \n\n | \n | 450 | \n\n | \n | — | \n\n |
| \n 6.25% Senior notes due June 20, 2016 \n | \n\n | \n | — | \n\n | \n | 400 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total short-term debt \n | \n\n | \n | 550 | \n\n | \n | 500 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Long-term: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n 5.75% Senior notes due December 15, 2017 \n | \n\n | \n | — | \n\n | \n | 450 | \n\n |
| \n 5.80% Senior notes due May 15, 2018 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 5.90% Senior notes due June 2, 2019 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 3.90% Senior notes due November 1, 2020 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 7.75% Senior notes due April 15, 2026 \n | \n\n | \n | 200 | \n\n | \n | 200 | \n\n |
| \n 7.625% Junior subordinated debentures due December 15, 2027 \n | \n\n | \n | 125 | \n\n | \n | 125 | \n\n |
| \n 6.375% Senior notes due March 15, 2033 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 6.75% Senior notes due June 20, 2036 \n | \n\n | \n | 400 | \n\n | \n | 400 | \n\n |
| \n 6.25% Senior notes due June 15, 2037 \n | \n\n | \n | 800 | \n\n | \n | 800 | \n\n |
| \n 5.35% Senior notes due November 1, 2040 \n | \n\n | \n | 750 | \n\n | \n | 750 | \n\n |
| \n 4.60% Senior notes due August 1, 2043 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 4.30% Senior notes due August 25, 2045 \n | \n\n | \n | 400 | \n\n | \n | 400 | \n\n |
| \n 8.50% Junior subordinated debentures due December 15, 2045 \n | \n\n | \n | 56 | \n\n | \n | 56 | \n\n |
| \n 3.75% Senior notes dues May 15, 2046 \n | \n\n | \n | 500 | \n\n | \n | — | \n\n |
| \n 8.312% Junior subordinated debentures due July 1, 2046 \n | \n\n | \n | 73 | \n\n | \n | 73 | \n\n |
| \n 6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 \n | \n\n | \n | 107 | \n\n | \n | 107 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total long-term debt \n | \n\n | \n | 5,911 | \n\n | \n | 5,861 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total debt principal \n | \n\n | \n | 6,461 | \n\n | \n | 6,361 | \n\n |
| \n Unamortized fair value adjustment \n | \n\n | \n | 47 | \n\n | \n | 49 | \n\n |
| \n Unamortized debt issuance costs \n | \n\n | \n | (71 | \n) | \n\n | (66 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total debt \n | \n\n | $ | \n6,437 | \n\n | $ | \n6,344 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
2016 Debt Issuance. On May 11, 2016, the Company issued $500 million aggregate principal amount of 3.75% senior notes that will mature on May 15, 2046. The net proceeds of the issuance, after the deduction of underwriting and other expenses, totaled approximately $491 million. Interest on the senior notes is payable semi-annually in arrears on May 15 and November 15. Prior to November 15, 2045, the senior notes may be redeemed, in whole or in part, at the Company's option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest on any senior notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30- day months) at the then current Treasury Rate (as defined in the senior notes), plus 20 basis points. On or after November 15, 2045, the senior notes may be redeemed, in whole or in part, at the Company's option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any senior notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
\n2016 Debt Repayment. On June 20, 2016, the Company's $400 million, 6.25% senior notes matured and were fully paid.
\n2015 Debt Issuance. On August 25, 2015, the Company issued $400 million aggregate principal amount of 4.30% senior notes that will mature on August 25, 2045. The net proceeds of the issuance, after original issuance discount and the deduction of underwriting expenses and commissions and other expenses, totaled approximately $392 million. Interest on the senior notes is payable semi-annually in arrears on February 25 and August 25. Prior to February 25, 2045, the senior notes may be redeemed, in whole or in part, at the Company's option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest on any senior notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate (as defined in the senior notes), plus 25 basis points. On or after February 25, 2045, the senior notes may be redeemed, in whole or in part, at the Company's option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any senior notes to be redeemed.
\n2015 Debt Repayment. On December 1, 2015, the Company's $400 million, 5.50% senior notes matured and were fully paid.
\nDescription of Debt
\nCommercial Paper—The Company maintains an $800 million commercial paper program, supported by a $1.0 billion bank credit agreement that expires on June 7, 2018. (See \"Credit Agreement\" discussion that follows.) Interest rates on commercial paper issued in 2016 ranged from 0.35% to 0.55%, and in 2015 ranged from 0.09% to 0.30%.
\nSenior Notes—The Company's various senior debt issues are unsecured obligations that rank equally with one another. Interest payments are made semi-annually. The Company generally may redeem some or all of the notes prior to maturity in accordance with terms unique to each debt instrument.
\nJunior Subordinated Debentures—The Company's $107 million remaining aggregate principal amount of 6.25% fixed-to-floating rate debentures bear interest at an annual rate of 6.25% from the date of issuance to, but excluding, March 15, 2017, payable semi-annually in arrears on March 15 and September 15. From and including March 15, 2017, the debentures will bear interest at an annual rate equal to three-month LIBOR plus 2.215%, payable quarterly on March 15, June 15, September 15 and December 15 of each year. The Company can redeem the debentures at its option, in whole or in part, at any time on or after March 15, 2017 at a redemption price of 100% of the principal amount being redeemed plus accrued but unpaid interest. The Company can redeem the debentures at its option prior to March 15, 2017 (a) in whole at any time or in part from time to time or (b) in whole, but not in part, in the event of certain tax or rating agency events relating to the debentures, at a redemption price equal to the greater of 100% of the principal amount being redeemed and the applicable make-whole amount, in each case plus any accrued and unpaid interest.
\nThe Company has the right, on one or more occasions, to defer the payment of interest on the debentures. The Company will not be required to settle deferred interest until it has deferred interest for five consecutive years or, if earlier, made a payment of current interest during a deferral period. The Company may defer interest for up to ten consecutive years without giving rise to an event of default. Deferred interest will accumulate additional interest at an annual rate equal to the annual interest rate then applicable to the debentures.
\nThe debentures have a final maturity date of March 15, 2067 and a scheduled maturity date of March 15, 2037. The Company can redeem the debentures at its option any time (as described above) using any source of funds, including cash. If the Company chooses not to redeem the debentures, then during the 180-day period ending not more than 15 and not less than ten business days prior to the scheduled maturity date, the Company will be required to use commercially reasonable efforts to sell enough qualifying capital securities to permit repayment of the debentures at the scheduled maturity date. If any debentures remain outstanding after the scheduled maturity date, unless and until the Company redeems the debentures (as described above) using any source of funds, including cash, the Company shall be required to use its commercially reasonable efforts on a quarterly basis to raise sufficient proceeds from the sale of qualifying capital securities to permit the repayment in full of the debentures. If there are remaining debentures at the final maturity date, the Company is required to redeem the debentures using any source of funds. Qualifying capital securities are securities (other than common stock, qualifying warrants, mandatorily convertible preferred stock, debt exchangeable for common equity, and debt exchangeable for preferred equity) which generally are treated by the ratings agencies as having similar equity content to the debentures.
\nThe Company's three other junior subordinated debenture instruments are all similar in nature to each other. Three separate business trusts issued preferred securities to investors and used the proceeds to purchase the Company's subordinated debentures. Interest on each of the instruments is paid semi-annually.
\nThe Company's consolidated balance sheet includes the debt instruments acquired in a business acquisition, which were recorded at fair value as of the acquisition date. The resulting fair value adjustment is being amortized over the remaining life of the respective debt instruments using the effective-interest method. The amortization of the fair value adjustment reduced interest expense by $2 million and $1 million for the years ended December 31, 2016 and 2015, respectively.
\nThe following table presents merger-related unamortized fair value adjustments and the related effective interest rate:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | | \n\n | Unamortized \nFair Value \nPurchase \nAdjustment at \nDecember 31, | \n\n | | \n\n | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | | \n\n | | \n\n | Effective \nInterest Rate \nto Maturity | \n\n | |||||||||
| \n (in millions) \n | \n\n | Issue Rate | \n\n | Maturity Date | \n\n | 2016 | \n\n | 2015 | \n\n | |||||||
| \n Subordinated debentures \n | \n\n | \n | 7.625 | \n% | \n\n | Dec. 2027 | \n\n | $ | \n14 | \n\n | $ | \n15 | \n\n | \n | 6.147 | \n% | \n
| \n\n | \n\n | \n | 8.500 | \n% | \n\n | Dec. 2045 | \n\n | \n | 15 | \n\n | \n | 15 | \n\n | \n | 6.362 | \n% | \n
| \n\n | \n\n | \n | 8.312 | \n% | \n\n | Jul. 2046 | \n\n | \n | 18 | \n\n | \n | 19 | \n\n | \n | 6.362 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | \n | \n | \n | \n | $ | \n47 | \n\n | $ | \n49 | \n\n | \n | \n | \n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The Travelers Companies, Inc. fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and Travelers Insurance Group Holdings Inc. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033.
\nMaturities—The amount of debt obligations, other than commercial paper, that become due in each of the next five years is as follows: 2017, $450 million; 2018, $500 million; 2019, $500 million; 2020, $500 million; and 2021, $0.
\nCredit Agreement
\nThe Company is party to a five-year, $1.0 billion revolving credit agreement with a syndicate of financial institutions that expires on June 7, 2018. Pursuant to the credit agreement covenants, the Company must maintain a minimum consolidated net worth, defined as shareholders' equity determined in accordance with GAAP plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital) less goodwill and other intangible assets, of $13.73 billion. In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change in control, which is defined to include the acquisition of 35% or more of the Company's voting stock and certain changes in the composition of the Company's board of directors. At December 31, 2016, the Company was in compliance with these covenants. Generally, the cost of borrowing under this agreement will range from LIBOR plus 87.5 basis points to LIBOR plus 150 basis points, depending on the Company's credit ratings. At December 31, 2016, that cost would have been LIBOR plus 112.5 basis points, had there been any amounts outstanding under the credit agreement. This credit agreement also supports the Company's commercial paper program.
\nShelf Registration
\nIn June 2016, the Company filed with the Securities and Exchange Commission a universal shelf registration statement that expires on June 17, 2019 for the potential offering and sale of securities to replace the Company's previous universal registration statement that had expired three years after its effective date. The Company may offer these securities from time to time at prices and on other terms to be determined at the time of offering.
\n9. SHAREHOLDERS' EQUITY AND DIVIDEND AVAILABILITY
\nAuthorized Shares
\nThe number of authorized shares of the Company is 1.755 billion, consisting of five million of preferred stock, 1.745 billion shares of voting common stock and five million undesignated shares. The Company's Articles of Incorporation authorize the Board of Directors to establish, from the undesignated shares, one or more classes and series of shares, and to further designate the type of shares and terms thereof.
\nPreferred Stock
\nThe Company's Articles of Incorporation provide authority to issue up to five million shares of preferred stock.
\nCommon Stock
\nThe Company is governed by the Minnesota Business Corporation Act. All authorized shares of voting common stock have no par value. Shares of common stock reacquired are considered authorized and unissued shares.
\nTreasury Stock
\nThe Company's Board of Directors has approved common share repurchase authorizations under which repurchases may be made from time to time in the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, in private transactions or otherwise. The authorizations do not have a stated expiration date. The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including the Company's financial position, earnings, share price, catastrophe losses, maintaining capital levels commensurate with the Company's desired ratings from independent rating agencies, funding of the Company's qualified pension plan, capital requirements of the Company's operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions and other factors. The following table summarizes repurchase activity in 2016 and remaining repurchase capacity at December 31, 2016.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions, except per share amounts) \n\nQuarterly Period Ending | \n\n | Number of \nshares \npurchased | \n\n | Cost of \nshares \nrepurchased | \n\n | Average price \npaid per share | \n\n | Remaining capacity \nunder share repurchase \nauthorization | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n March 31, 2016 \n | \n\n | \n | 5.1 | \n\n | $ | \n550 | \n\n | $ | \n108.46 | \n\n | $ | \n2,784 | \n\n |
| \n June 30, 2016 \n | \n\n | \n | 4.9 | \n\n | \n | 550 | \n\n | \n | 112.12 | \n\n | \n | 2,234 | \n\n |
| \n September 30, 2016 \n | \n\n | \n | 4.7 | \n\n | \n | 550 | \n\n | \n | 117.25 | \n\n | \n | 1,684 | \n\n |
| \n December 31, 2016 \n | \n\n | \n | 6.6 | \n\n | \n | 750 | \n\n | \n | 113.54 | \n\n | \n | 934 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | 21.3 | \n\n | $ | \n2,400 | \n\n | \n | 112.82 | \n\n | \n | 934 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The Company's Amended and Restated 2004 Stock Incentive Plan and the Amended and Restated 2014 Stock Incentive Plan provide settlement alternatives to employees in which the Company retains shares to cover payroll withholding taxes in connection with the vesting of restricted stock unit awards and performance share awards, and to cover the price of certain stock options that were exercised. During the years ended December 31, 2016 and 2015, the Company acquired $72 million and $74 million, respectively, of its common stock under these plans.
\nCommon shares acquired are reported as treasury stock in the consolidated balance sheet.
\nDividend Availability
\nThe Company's U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are subject to various regulatory restrictions that limit the maximum amount of dividends available to be paid by each insurance subsidiary to its respective parent company without prior approval of insurance regulatory authorities. A maximum of $3.69 billion is available by the end of 2017 for such dividends to the holding company, TRV, without prior approval of the Connecticut Insurance Department. The Company may choose to accelerate the timing within 2017 and/or increase the amount of dividends from its insurance subsidiaries in 2017, which could result in certain dividends being subject to approval by the Connecticut Insurance Department.
\nIn 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.
\nTRV 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.
\nTRV and its two non-insurance holding company subsidiaries received dividends of $3.05 billion, $3.75 billion and $4.10 billion from their U.S. insurance subsidiaries in 2016, 2015 and 2014, respectively.
\nFor the years ended December 31, 2016, 2015 and 2014, TRV declared cash dividends per common share of $2.62, $2.38 and $2.15, respectively, and paid cash dividends of $757 million, $739 million and $729 million, respectively.
\nStatutory Net Income and Statutory Capital and Surplus
\nStatutory net income of the Company's domestic and international insurance subsidiaries was $3.20 billion, $3.80 billion and $3.97 billion for the years ended December 31, 2016, 2015 and 2014, respectively. Statutory capital and surplus of the Company's domestic and international insurance subsidiaries was $20.76 billion and $20.57 billion at December 31, 2016 and 2015, respectively.
\n10. OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME
\nThe following table presents the changes in the Company's accumulated other comprehensive income (AOCI) for the years ended December 31, 2016, 2015 and 2014.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Changes in Net Unrealized Gains on \nInvestment Securities | \n\n | | \n\n | | \n\n | | \n\n | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Net Benefit Plan \nAssets and \nObligations \nRecognized in \nShareholders' Equity | \n\n | Net \nUnrealized \nForeign \nCurrency \nTranslation | \n\n | Total \nAccumulated \nOther \nComprehensive \nIncome (Loss) | \n\n | |||||||||
| \n (in millions) \n | \n\n | Having No Credit \nLosses Recognized in \nthe Consolidated \nStatement of Income | \n\n | Having Credit Losses \nRecognized in the \nConsolidated \nStatement of Income | \n\n | |||||||||||
| \n Balance, December 31, 2013 \n | \n\n | $ | \n1,125 | \n\n | $ | \n197 | \n\n | $ | \n(431 | \n) | \n$ | \n(81 | \n) | \n$ | \n810 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss) (OCI) before reclassifications \n | \n\n | \n | 667 | \n\n | \n | (2 | \n) | \n\n | (363 | \n) | \n\n | (250 | \n) | \n\n | 52 | \n\n |
| \n Amounts reclassified from AOCI \n | \n\n | \n | (24 | \n) | \n\n | 3 | \n\n | \n | 39 | \n\n | \n | — | \n\n | \n | 18 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net OCI, current period \n | \n\n | \n | 643 | \n\n | \n | 1 | \n\n | \n | (324 | \n) | \n\n | (250 | \n) | \n\n | 70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, December 31, 2014 \n | \n\n | \n | 1,768 | \n\n | \n | 198 | \n\n | \n | (755 | \n) | \n\n | (331 | \n) | \n\n | 880 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n OCI before reclassifications \n | \n\n | \n | (641 | \n) | \n\n | (11 | \n) | \n\n | (18 | \n) | \n\n | (419 | \n) | \n\n | (1,089 | \n) | \n
| \n Amounts reclassified from AOCI \n | \n\n | \n | (27 | \n) | \n\n | 2 | \n\n | \n | 60 | \n\n | \n | 17 | \n\n | \n | 52 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net OCI, current period \n | \n\n | \n | (668 | \n) | \n\n | (9 | \n) | \n\n | 42 | \n\n | \n | (402 | \n) | \n\n | (1,037 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, December 31, 2015 \n | \n\n | \n | 1,100 | \n\n | \n | 189 | \n\n | \n | (713 | \n) | \n\n | (733 | \n) | \n\n | (157 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n OCI before reclassifications \n | \n\n | \n | (530 | \n) | \n\n | 4 | \n\n | \n | (30 | \n) | \n\n | (49 | \n) | \n\n | (605 | \n) | \n
| \n Amounts reclassified from AOCI \n | \n\n | \n | (42 | \n) | \n\n | 9 | \n\n | \n | 40 | \n\n | \n | — | \n\n | \n | 7 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net OCI, current period \n | \n\n | \n | (572 | \n) | \n\n | 13 | \n\n | \n | 10 | \n\n | \n | (49 | \n) | \n\n | (598 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, December 31, 2016 \n | \n\n | $ | \n528 | \n\n | $ | \n202 | \n\n | $ | \n(703 | \n) | \n$ | \n(782 | \n) | \n$ | \n(755 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The following table presents the pre-tax components of the Company's other comprehensive income (loss) and the related income tax expense (benefit).
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | $ | \n(883 | \n) | \n$ | \n(1,020 | \n) | \n$ | \n976 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | (311 | \n) | \n\n | (352 | \n) | \n\n | 333 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | (572 | \n) | \n\n | (668 | \n) | \n\n | 643 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | 21 | \n\n | \n | (14 | \n) | \n\n | 2 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 8 | \n\n | \n | (5 | \n) | \n\n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 13 | \n\n | \n | (9 | \n) | \n\n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | 16 | \n\n | \n | 66 | \n\n | \n | (494 | \n) | \n
| \n Income tax expense (benefit) \n | \n\n | \n | 6 | \n\n | \n | 24 | \n\n | \n | (170 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 10 | \n\n | \n | 42 | \n\n | \n | (324 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | (41 | \n) | \n\n | (461 | \n) | \n\n | (289 | \n) | \n
| \n Income tax expense (benefit) \n | \n\n | \n | 8 | \n\n | \n | (59 | \n) | \n\n | (39 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | (49 | \n) | \n\n | (402 | \n) | \n\n | (250 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other comprehensive income (loss) \n | \n\n | \n | (887 | \n) | \n\n | (1,429 | \n) | \n\n | 195 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense (benefit) \n | \n\n | \n | (289 | \n) | \n\n | (392 | \n) | \n\n | 125 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other comprehensive income (loss), net of taxes \n | \n\n | $ | \n(598 | \n) | \n$ | \n(1,037 | \n) | \n$ | \n70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company's AOCI to the Company's consolidated statement of income.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Reclassification adjustments related to unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income(1) \n | \n\n | $ | \n(64 | \n) | \n$ | \n(42 | \n) | \n$ | \n(36 | \n) | \n
| \n Income tax expense(2) \n | \n\n | \n | (22 | \n) | \n\n | (15 | \n) | \n\n | (12 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | (42 | \n) | \n\n | (27 | \n) | \n\n | (24 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Having credit losses recognized in the consolidated statement of income(1) \n | \n\n | \n | 13 | \n\n | \n | 2 | \n\n | \n | 4 | \n\n |
| \n Income tax benefit(2) \n | \n\n | \n | 4 | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 9 | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Reclassification adjustment related to benefit plan assets and obligations(3) \n | \n\n | \n | 62 | \n\n | \n | 93 | \n\n | \n | 60 | \n\n |
| \n Income tax benefit(2) \n | \n\n | \n | 22 | \n\n | \n | 33 | \n\n | \n | 21 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 40 | \n\n | \n | 60 | \n\n | \n | 39 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Reclassification adjustment related to foreign currency translation(1) \n | \n\n | \n | — | \n\n | \n | 26 | \n\n | \n | — | \n\n |
| \n Income tax benefit(2) \n | \n\n | \n | — | \n\n | \n | 9 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | — | \n\n | \n | 17 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total reclassifications \n | \n\n | \n | 11 | \n\n | \n | 79 | \n\n | \n | 28 | \n\n |
| \n Total income tax benefit \n | \n\n | \n | 4 | \n\n | \n | 27 | \n\n | \n | 10 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total reclassifications, net of taxes \n | \n\n | $ | \n7 | \n\n | $ | \n52 | \n\n | $ | \n18 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
11. EARNINGS PER SHARE
\nBasic earnings per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities.
\nThe following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions, except per share amounts) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Basic and Diluted \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income, as reported \n | \n\n | $ | \n3,014 | \n\n | $ | \n3,439 | \n\n | $ | \n3,692 | \n\n |
| \n Participating share-based awards—allocated income \n | \n\n | \n | (22 | \n) | \n\n | (25 | \n) | \n\n | (27 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income available to common shareholders—basic and diluted \n | \n\n | $ | \n2,992 | \n\n | $ | \n3,414 | \n\n | $ | \n3,665 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Common Shares \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Weighted average shares outstanding \n | \n\n | \n | 288.1 | \n\n | \n | 310.6 | \n\n | \n | 338.8 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Diluted \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Weighted average shares outstanding \n | \n\n | \n | 288.1 | \n\n | \n | 310.6 | \n\n | \n | 338.8 | \n\n |
| \n Weighted average effects of dilutive securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Stock options and performance shares \n | \n\n | \n | 2.9 | \n\n | \n | 3.3 | \n\n | \n | 3.7 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | 291.0 | \n\n | \n | 313.9 | \n\n | \n | 342.5 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income Per Common Share \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | $ | \n10.39 | \n\n | $ | \n10.99 | \n\n | $ | \n10.82 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Diluted \n | \n\n | $ | \n10.28 | \n\n | $ | \n10.88 | \n\n | $ | \n10.70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
12. INCOME TAXES
\nThe following table presents the components of income tax expense included in the amounts reported in the Company's consolidated financial statements:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Composition of income tax expense included in the consolidated statement of income \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Current expense: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Federal \n | \n\n | $ | \n899 | \n\n | $ | \n1,144 | \n\n | $ | \n1,216 | \n\n |
| \n Foreign \n | \n\n | \n | 21 | \n\n | \n | 29 | \n\n | \n | 28 | \n\n |
| \n State \n | \n\n | \n | 8 | \n\n | \n | 9 | \n\n | \n | 10 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total current tax expense \n | \n\n | \n | 928 | \n\n | \n | 1,182 | \n\n | \n | 1,254 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Deferred expense: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Federal \n | \n\n | \n | 110 | \n\n | \n | 117 | \n\n | \n | 121 | \n\n |
| \n Foreign \n | \n\n | \n | 1 | \n\n | \n | 2 | \n\n | \n | 22 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total deferred tax expense \n | \n\n | \n | 111 | \n\n | \n | 119 | \n\n | \n | 143 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense included in the consolidated statement of income \n | \n\n | \n | 1,039 | \n\n | \n | 1,301 | \n\n | \n | 1,397 | \n\n |
| \n Composition of income tax expense (benefit) included in shareholders' equity \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Expense (benefit) relating to share-based compensation, the changes in unrealized gain on investments, unrealized loss on foreign exchange and other items in other comprehensive income \n | \n\n | \n | (289 | \n) | \n\n | (448 | \n) | \n\n | 68 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense included in the consolidated financial statements \n | \n\n | $ | \n750 | \n\n | $ | \n853 | \n\n | $ | \n1,465 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The following is a reconciliation of income tax expense at the U.S. federal statutory income tax rate to the income tax expense reported in the Company's consolidated statement of income:
\n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Income before income taxes \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. \n | \n\n | $ | \n3,946 | \n\n | $ | \n4,621 | \n\n | $ | \n4,899 | \n\n |
| \n Foreign \n | \n\n | \n | 107 | \n\n | \n | 119 | \n\n | \n | 190 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income before income taxes \n | \n\n | \n | 4,053 | \n\n | \n | 4,740 | \n\n | \n | 5,089 | \n\n |
| \n Effective tax rate \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Statutory tax rate \n | \n\n | \n | 35 | \n% | \n\n | 35 | \n% | \n\n | 35 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Expected federal income tax expense \n | \n\n | \n | 1,419 | \n\n | \n | 1,659 | \n\n | \n | 1,781 | \n\n |
| \n Tax effect of: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Nontaxable investment income \n | \n\n | \n | (323 | \n) | \n\n | (345 | \n) | \n\n | (379 | \n) | \n
| \n Other, net \n | \n\n | \n | (57 | \n) | \n\n | (13 | \n) | \n\n | (5 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense \n | \n\n | $ | \n1,039 | \n\n | $ | \n1,301 | \n\n | $ | \n1,397 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effective tax rate \n | \n\n | \n | 26 | \n% | \n\n | 27 | \n% | \n\n | 27 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The Company paid income taxes of $892 million, $1.21 billion and $1.15 billion during the years ended December 31, 2016, 2015 and 2014, respectively. The current income tax payable was $72 million and $50 million at December 31, 2016 and 2015, respectively, and was included in other liabilities in the consolidated balance sheet.
\nThe net deferred tax asset comprises the tax effects of temporary differences related to the following assets and liabilities:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Deferred tax assets \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expense reserves \n | \n\n | $ | \n664 | \n\n | $ | \n691 | \n\n |
| \n Unearned premium reserves \n | \n\n | \n | 760 | \n\n | \n | 731 | \n\n |
| \n Compensation-related liabilities \n | \n\n | \n | 268 | \n\n | \n | 326 | \n\n |
| \n Other \n | \n\n | \n | 272 | \n\n | \n | 320 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total gross deferred tax assets \n | \n\n | \n | 1,964 | \n\n | \n | 2,068 | \n\n |
| \n Less: valuation allowance \n | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Adjusted gross deferred tax assets \n | \n\n | \n | 1,961 | \n\n | \n | 2,068 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Deferred tax liabilities \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Deferred acquisition costs \n | \n\n | \n | 604 | \n\n | \n | 580 | \n\n |
| \n Investments \n | \n\n | \n | 592 | \n\n | \n | 867 | \n\n |
| \n Internally developed software \n | \n\n | \n | 157 | \n\n | \n | 134 | \n\n |
| \n Other \n | \n\n | \n | 143 | \n\n | \n | 191 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total gross deferred tax liabilities \n | \n\n | \n | 1,496 | \n\n | \n | 1,772 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net deferred tax asset \n | \n\n | $ | \n465 | \n\n | $ | \n296 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
If the Company determines that any of its deferred tax assets will not result in future tax benefits, a valuation allowance must be established for the portion of these assets that are not expected to be realized. The valuation allowance increased by $3 million in 2016 relating to the Company's consolidated Brazilian subsidiary. Based upon a review of the Company's anticipated future taxable income, and also including all other available evidence, both positive and negative, the Company's management concluded that it is more likely than not that the net deferred tax assets will be realized.
\nFor tax return purposes, as of December 31, 2016, the Company had net operating loss (NOL) carryforwards in Brazil and the United Kingdom. The amount and timing of realizing the benefits of NOL carryforwards depend on future taxable income and limitations imposed by tax laws. Only the benefits of the United Kingdom NOL carryforwards have been recognized in the consolidated financial statements and are included in net deferred tax assets. The NOL amounts by jurisdiction and year of expiration are as follows:
\n\n| \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | Amount | \n\n | Year of \nexpiration | \n|
|---|---|---|---|---|---|
| \n Brazil \n | \n\n | $ | \n8 | \n\n | None | \n
| \n United Kingdom \n | \n\n | $ | \n106 | \n\n | None | \n
U.S. income taxes have not been recognized on $358 million of the Company's foreign operations' undistributed earnings as of December 31, 2016, as such earnings are intended to be permanently reinvested in those operations. Furthermore, any taxes paid to foreign governments on these earnings may be used as credits against the U.S. tax on any dividend distributions from such earnings.
\nThe following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2016 and 2015:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Balance at January 1 \n | \n\n | $ | \n16 | \n\n | $ | \n23 | \n\n |
| \n Additions for tax positions of prior years \n | \n\n | \n | 3 | \n\n | \n | 2 | \n\n |
| \n Reductions for tax positions of prior years \n | \n\n | \n | (6 | \n) | \n\n | (9 | \n) | \n
| \n Additions based on tax positions related to current year \n | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance at December 31 \n | \n\n | $ | \n13 | \n\n | $ | \n16 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
Included in the balances at December 31, 2016 and 2015 were $7 million and $4 million, respectively, of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. Also included in the balances at those dates were $6 million and $12 million, respectively, of tax positions for which the ultimate deductibility is certain, but for which there is uncertainty about the timing of deductibility. The timing of such deductibility would not affect the annual effective tax rate.
\nThe Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in income taxes. During the years ended December 31, 2016, 2015 and 2014, the Company recognized approximately $31 million, $(32) million and $31 million in interest, respectively. The Company had approximately $57 million and $26 million accrued for the payment of interest at December 31, 2016 and 2015, respectively.
\nThe IRS is conducting an examination of the Company's U.S. income tax returns for 2013 and 2014. The Company does not expect any significant changes to its liability for unrecognized tax benefits during the next twelve months.
\n13. SHARE-BASED INCENTIVE COMPENSATION
\nThe Company has a share-based incentive compensation plan, The Travelers Companies, Inc. Amended and Restated 2014 Stock Incentive Plan (the 2014 Incentive Plan), the purposes of which are to align the interests of the Company's non-employee directors, executive officers and other employees with those of the Company's shareholders and to attract and retain personnel by providing incentives in the form of share-based awards. The 2014 Incentive Plan permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, deferred stock units, performance awards and other share-based or share-denominated awards with respect to the Company's common stock. The Company has a policy of issuing new shares to settle the exercise of stock option awards and the vesting of other equity awards.
\nIn connection with the adoption of the 2014 Incentive Plan, The Travelers Companies, Inc. Amended and Restated 2004 Stock Incentive Plan, as amended (the 2004 Incentive Plan) was terminated, joining several other legacy share-based incentive compensation plans that had been terminated in prior years (together, the legacy plans). Outstanding grants were not affected by the termination of the legacy plans. The 2014 Incentive Plan is currently the only plan pursuant to which future stock-based awards may be granted.
\nThe number of shares of the Company's common stock initially authorized for grant under the 2014 Incentive Plan was 10 million shares. In May 2016, the Company's shareholders authorized an additional 4.4 million shares of the Company's common stock for grant under the 2014 Incentive Plan. The following are not counted towards the combined 14.4 million shares available and will be available for future grants under the 2014 Incentive Plan: (i) shares of common stock subject to awards that expire unexercised, that are forfeited, terminated or canceled, that are settled in cash or other forms of property, or otherwise do not result in the issuance of shares of common stock, in whole or in part; (ii) shares that are used to pay the exercise price of stock options and shares used to pay withholding taxes on awards generally; and (iii) shares purchased by the Company on the open market using cash option exercise proceeds; provided, however, that the increase in the number of shares of common stock available for grant pursuant to such market purchases shall not be greater than the number that could be repurchased at fair market value on the date of exercise of the stock option giving rise to such option proceeds. In addition, the 14.4 million shares authorized by shareholders for issuance under the 2014 Incentive Plan will be increased by any shares subject to awards under the 2004 Incentive Plan that were outstanding as of May 27, 2014 and subsequently expire, are forfeited, cancelled, settled in cash or otherwise terminate without the issuance of shares.
\nThe Company also has a compensation program for non-employee directors (the Director Compensation Program). Under the Director Compensation Program, non-employee directors' compensation consists of an annual retainer, a deferred stock award, committee chair fees and a lead director fee. Each non-employee director may choose to receive all or a portion of his or her annual retainer in the form of cash or deferred stock units which vest upon grant. The annual deferred stock awards vest in full one day prior to the date of the Company's annual meeting of shareholders occurring in the year following the year of the grant date, subject to continued service. The deferred stock awards, including dividend equivalents, accumulate until distribution either in a lump sum six months after termination of service as a director or, if the director so elects, in annual installments beginning at least six months following termination of service as a director. The deferred stock units issued under the Director Compensation Program are awarded under the 2014 Incentive Plan.
\nStock Option Awards
\nStock option awards granted to eligible officers and key employees have a ten-year term. Prior to January 1, 2007, stock options were granted with an exercise price equal to the fair market value of the Company's common stock on the day preceding the date of grant. Beginning January 1, 2007, all stock options are granted with an exercise price equal to the closing price of the Company's common stock on the date of grant. The stock options granted generally vest upon meeting certain years of service criteria. Except as the Compensation Committee of the board of directors may allow in the future, stock options cannot be sold or transferred by the participant. Stock options outstanding under the 2014 Incentive Plan and the 2004 Incentive Plan generally vest three years after grant date (cliff vest).
\nThe fair value of each option award is estimated on the date of grant by application of a variation of the Black-Scholes option pricing model using the assumptions noted in the following table. The expected term of newly granted stock options is the time to vest plus half the remaining time to expiration. This considers the vesting restriction and represents an even pattern of exercise behavior over the remaining term. The expected volatility assumption is based on the historical volatility of the Company's common stock for the same period as the estimated option term based on the mid-month of the option grant. The expected dividend is based upon the Company's current quarter dividend annualized and assumed to be constant over the expected option term. The risk-free interest rate for each option is the interpolated market yield for the mid-month of the option grant on a U.S. Treasury bill with a term comparable to the expected option term of the granted stock option. The following table provides information about options granted:
\n\n| \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31,) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n
|---|---|---|---|---|---|---|
| \n Assumptions used in estimating fair value of options on grant date \n | \n\n | \n | \n | \n | \n | \n |
| \n Expected term of stock options \n | \n\n | 5 - 6 years | \n\n | 6 years | \n\n | 6 years | \n
| \n Expected volatility of Company's stock \n | \n\n | 15.14% - 16.80% | \n\n | 19.29% | \n\n | 27.2% - 27.5% | \n
| \n Weighted average volatility \n | \n\n | 16.79% | \n\n | 19.29% | \n\n | 27.5% | \n
| \n Expected annual dividend per share \n | \n\n | $2.44 - $2.68 | \n\n | $2.20 | \n\n | $2.00 - $2.20 | \n
| \n Risk-free rate \n | \n\n | 1.36% - 2.23% | \n\n | 1.31% | \n\n | 1.81% - 1.82% | \n
| \n Additional information \n | \n\n | \n | \n | \n | \n | \n |
| \n Weighted average grant-date fair value of options granted (per share) \n | \n\n | $13.29 | \n\n | $15.78 | \n\n | $17.22 | \n
| \n Total intrinsic value of options exercised during the year (in millions) \n | \n\n | $167 | \n\n | $120 | \n\n | $117 | \n
| | \n | \n | \n | \n | \n | \n | \n
A summary of stock option activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2016 is as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Stock Options \n | \n\n | Number | \n\n | Weighted \nAverage \nExercise \nPrice | \n\n | Weighted \nAverage \nContractual \nLife \nRemaining | \n\n | Aggregate \nIntrinsic \nValue \n($ in millions) | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Outstanding, beginning of year \n | \n\n | \n | 9,864,255 | \n\n | $ | \n74.48 | \n\n | \n | \n | \n | \n | \n |
| \n Original grants \n | \n\n | \n | 2,847,398 | \n\n | \n | 106.21 | \n\n | \n | \n | \n | \n | \n |
| \n Exercised \n | \n\n | \n | (4,069,532 | \n) | \n\n | 69.13 | \n\n | \n | \n | \n | \n | \n |
| \n Forfeited or expired \n | \n\n | \n | (82,085 | \n) | \n\n | 97.44 | \n\n | \n | \n | \n | \n | \n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Outstanding, end of year \n | \n\n | \n | 8,560,036 | \n\n | $ | \n87.36 | \n\n | 6.8 years | \n\n | $ | \n300 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Vested at end of year(1) \n | \n\n | \n | 5,588,061 | \n\n | $ | \n80.74 | \n\n | 6.0 years | \n\n | $ | \n233 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Exercisable at end of year \n | \n\n | \n | 3,007,663 | \n\n | $ | \n65.18 | \n\n | 4.2 years | \n\n | $ | \n172 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
On February 9, 2017, the Company, under the 2014 Incentive Plan, granted 2,106,022 stock option awards with an exercise price of $118.78 per share. The fair value attributable to the stock option awards on the date of grant was $16.15 per share.
\nRestricted Stock Units, Deferred Stock Units and Performance Share Award Programs
\nThe Company issues restricted stock unit awards to eligible officers and key employees under the Equity Awards program established pursuant to the 2014 Incentive Plan. A restricted stock unit represents the right to receive a share of common stock. These restricted stock unit awards are granted at market price, generally vest three years from the date of grant, do not have voting rights and the underlying shares of common stock are not issued until the vesting criteria is satisfied. In addition, the Company's board of directors can be issued deferred stock units from (i) an annual award; (ii) deferred compensation (in lieu of cash retainer); and (iii) dividend equivalents earned on outstanding deferred compensation.
\nThe Company also has a Performance Share Awards Program established pursuant to the 2004 Incentive Plan and which continues pursuant to the 2014 Incentive Plan. Under the program, the Company may issue performance share awards to certain employees of the Company who hold positions of Vice President (or its equivalent) or above. The performance share awards provide the recipient the right to earn shares of the Company's common stock based upon the Company's attainment of certain performance goals and the recipient meeting certain years of service criteria. The performance goals for performance share awards are based on the Company's adjusted return on equity over a three-year performance period. Vesting of performance shares is contingent upon the Company attaining the relevant performance period minimum threshold return on equity and the recipient meeting certain years of service criteria, generally three years for full vesting, subject to proration for certain termination conditions. If the performance period return on equity is below the minimum threshold, none of the performance shares will vest. If performance meets or exceeds the minimum performance threshold, a range of performance shares will vest (50% to 150% for awards granted in 2015, 2016 and 2017), depending on the actual return on equity attained.
\nThe fair value of restricted stock units, deferred stock units and performance shares is measured at the market price of the Company stock at date of grant. Under terms of the 2014 Incentive Plan, holders of deferred stock units and performance shares may receive dividend equivalents.
\nThe total fair value of shares that vested during the years ended December 31, 2016, 2015 and 2014 was $175 million, $179 million and $147 million, respectively.
\nA summary of restricted stock units, deferred stock units and performance share activity under the 2014 Incentive Plan and the legacy plans as of and for the year ended December 31, 2016 is as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Restricted and Deferred Stock \nUnits | \n\n | Performance Shares | \n\n | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Other Equity Instruments \n | \n\n | Number | \n\n | Weighted Average \nGrant-Date \nFair Value | \n\n | Number | \n\n | Weighted Average \nGrant-Date \nFair Value | \n\n | ||||
| \n Nonvested, beginning of year \n | \n\n | \n | 1,435,958 | \n\n | $ | \n88.35 | \n\n | \n | 1,101,989 | \n\n | $ | \n91.27 | \n\n |
| \n Granted \n | \n\n | \n | 676,736 | \n\n | \n | 106.93 | \n\n | \n | 476,411 | \n\n | \n | 106.03 | \n\n |
| \n Vested \n | \n\n | \n | (667,650 | \n)(1) | \n\n | 86.85 | \n\n | \n | (818,360 | \n)(2) | \n\n | 84.43 | \n\n |
| \n Forfeited \n | \n\n | \n | (68,552 | \n) | \n\n | 97.82 | \n\n | \n | (63,495 | \n) | \n\n | 100.02 | \n\n |
| \n Performance-based adjustment \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 100,073 | \n(3) | \n\n | 88.22 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Nonvested, end of year \n | \n\n | \n | 1,376,492 | \n\n | $ | \n97.75 | \n\n | \n | 796,618 | \n\n | $ | \n106.03 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
In addition to the nonvested shares presented in the above table, there are related nonvested dividend equivalent shares. The number of nonvested dividend equivalent shares related to deferred stock units was 396 at the beginning of the year and 408 at the end of the year and the number of nonvested dividend equivalent shares related to performance shares was 40,663 at the beginning of the year and 28,480 at the end of the year. The dividend equivalent shares are subject to the same vesting terms as the deferred stock units and performance shares.
\nOn February 9, 2017, the Company, under the 2014 Incentive Plan, granted 960,515 common stock awards in the form of restricted stock units, deferred stock units and performance share awards to participating officers, non-employee directors and other key employees. The restricted stock units and deferred stock units totaled 567,006 shares while the performance share awards totaled 393,509 shares. The fair value per share attributable to the common stock awards on the date of grant was $118.78.
\nShare-Based Compensation Cost Recognition
\nThe amount of compensation cost for awards subject to a service condition is based on the number of shares expected to be issued and is recognized over the time period for which service is to be provided (requisite service period). Awards granted to retiree-eligible employees or to employees who become retiree-eligible before an award's vesting date are considered to have met the requisite service condition. The compensation cost for awards subject to a performance condition is based upon the probable outcome of the performance condition, which on the grant date reflects an estimate of attaining 100% of the performance shares granted. The compensation cost reflects an estimated annual forfeiture rate from 3.0% to 4.0% over the requisite service period of the awards. That estimate is revised if subsequent information indicates that the actual number of instruments expected to vest is likely to differ from previous estimates. Compensation costs for awards are recognized on a straight-line basis over the requisite service period. For awards that have graded vesting terms, the compensation cost is recognized on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in substance, multiple awards. The total compensation cost for all share-based incentive compensation awards recognized in earnings for the years ended December 31, 2016, 2015 and 2014 was $155 million, $141 million and $138 million, respectively. Included in these amounts are compensation cost adjustments of $11 million, $8 million and $14 million, for the years ended December 31, 2016, 2015 and 2014, respectively, that reflected the cost associated with the updated estimate of performance shares due to attaining certain performance levels from the date of the initial grant of the performance awards. The related tax benefits recognized in earnings were $52 million, $47 million and $47 million for the years ended December 31, 2016, 2015 and 2014, respectively.
\nAt December 31, 2016, there was $124 million of total unrecognized compensation cost related to all nonvested share-based incentive compensation awards. This includes stock options, restricted and deferred stock units and performance shares granted under the 2014 Incentive Plan and the 2004 Incentive Plan. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.7 years. Cash received from the exercise of employee stock options under share-based compensation plans totaled $332 million and $183 million in 2016 and 2015, respectively. The tax benefit for tax deductions from employee stock options exercised during 2016 and 2015 totaled $58 million and $41 million, respectively.
\n14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS
\nThe Company sponsors a qualified non-contributory defined benefit pension plan (the qualified domestic pension plan), which covers substantially all U.S. domestic employees and provides benefits under a cash balance formula, except that employees satisfying certain age and service requirements remain covered by a prior final average pay formula. In addition, the Company sponsors a nonqualified defined benefit pension plan which covers certain highly-compensated employees, pension plans for employees of its foreign subsidiaries, and a postretirement health and life insurance benefit plan for employees satisfying certain age and service requirements and for certain retirees.
\nObligations and Funded Status
\nThe following tables summarize the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company's benefit plans. The Company uses a December 31 measurement date for its pension and postretirement benefit plans.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Qualified \nDomestic \nPension Plan | \n\n | Nonqualified \nand Foreign \nPension Plans | \n\n | Total | \n\n | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2016 | \n\n | 2015 | \n\n | 2016 | \n\n | 2015 | \n\n | ||||||
| \n Change in projected benefit obligation: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Benefit obligation at beginning of year \n | \n\n | $ | \n3,250 | \n\n | $ | \n3,385 | \n\n | $ | \n228 | \n\n | $ | \n227 | \n\n | $ | \n3,478 | \n\n | $ | \n3,612 | \n\n |
| \n Benefits earned \n | \n\n | \n | 111 | \n\n | \n | 124 | \n\n | \n | 7 | \n\n | \n | 7 | \n\n | \n | 118 | \n\n | \n | 131 | \n\n |
| \n Interest cost on benefit obligation \n | \n\n | \n | 114 | \n\n | \n | 135 | \n\n | \n | 8 | \n\n | \n | 9 | \n\n | \n | 122 | \n\n | \n | 144 | \n\n |
| \n Actuarial loss (gain) \n | \n\n | \n | 54 | \n\n | \n | (203 | \n) | \n\n | 15 | \n\n | \n | 2 | \n\n | \n | 69 | \n\n | \n | (201 | \n) | \n
| \n Benefits paid \n | \n\n | \n | (162 | \n) | \n\n | (191 | \n) | \n\n | (15 | \n) | \n\n | (8 | \n) | \n\n | (177 | \n) | \n\n | (199 | \n) | \n
| \n Settlement \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n |
| \n Foreign currency exchange rate change \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (15 | \n) | \n\n | (9 | \n) | \n\n | (15 | \n) | \n\n | (9 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Benefit obligation at end of year \n | \n\n | $ | \n3,367 | \n\n | $ | \n3,250 | \n\n | $ | \n225 | \n\n | $ | \n228 | \n\n | $ | \n3,592 | \n\n | $ | \n3,478 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in plan assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fair value of plan assets at beginning of year \n | \n\n | $ | \n3,127 | \n\n | $ | \n3,235 | \n\n | $ | \n115 | \n\n | $ | \n122 | \n\n | $ | \n3,242 | \n\n | $ | \n3,357 | \n\n |
| \n Actual return on plan assets \n | \n\n | \n | 222 | \n\n | \n | (17 | \n) | \n\n | 11 | \n\n | \n | 3 | \n\n | \n | 233 | \n\n | \n | (14 | \n) | \n
| \n Company contributions \n | \n\n | \n | 200 | \n\n | \n | 100 | \n\n | \n | 14 | \n\n | \n | 7 | \n\n | \n | 214 | \n\n | \n | 107 | \n\n |
| \n Benefits paid \n | \n\n | \n | (162 | \n) | \n\n | (191 | \n) | \n\n | (15 | \n) | \n\n | (8 | \n) | \n\n | (177 | \n) | \n\n | (199 | \n) | \n
| \n Settlement \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n |
| \n Foreign currency exchange rate change \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (16 | \n) | \n\n | (9 | \n) | \n\n | (16 | \n) | \n\n | (9 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Fair value of plan assets at end of year \n | \n\n | \n | 3,387 | \n\n | \n | 3,127 | \n\n | \n | 106 | \n\n | \n | 115 | \n\n | \n | 3,493 | \n\n | \n | 3,242 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Funded status of plan at end of year \n | \n\n | $ | \n20 | \n\n | $ | \n(123 | \n) | \n$ | \n(119 | \n) | \n$ | \n(113 | \n) | \n$ | \n(99 | \n) | \n$ | \n(236 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in the consolidated balance sheet consist of: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Accrued over-funded benefit plan assets \n | \n\n | $ | \n20 | \n\n | $ | \n— | \n\n | $ | \n5 | \n\n | $ | \n4 | \n\n | $ | \n25 | \n\n | $ | \n4 | \n\n |
| \n Accrued under-funded benefit plan liabilities \n | \n\n | \n | — | \n\n | \n | (123 | \n) | \n\n | (124 | \n) | \n\n | (117 | \n) | \n\n | (124 | \n) | \n\n | (240 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n20 | \n\n | $ | \n(123 | \n) | \n$ | \n(119 | \n) | \n$ | \n(113 | \n) | \n$ | \n(99 | \n) | \n$ | \n(236 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in accumulated other comprehensive income consist of: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net actuarial loss \n | \n\n | $ | \n1,072 | \n\n | $ | \n1,079 | \n\n | $ | \n55 | \n\n | $ | \n52 | \n\n | $ | \n1,127 | \n\n | $ | \n1,131 | \n\n |
| \n Prior service benefit \n | \n\n | \n | (6 | \n) | \n\n | (8 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (6 | \n) | \n\n | (8 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n1,066 | \n\n | $ | \n1,071 | \n\n | $ | \n55 | \n\n | $ | \n52 | \n\n | $ | \n1,121 | \n\n | $ | \n1,123 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Postretirement \nBenefit Plans | \n\n | ||||
|---|---|---|---|---|---|---|---|
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
| \n Change in projected benefit obligation: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Benefit obligation at beginning of year \n | \n\n | $ | \n233 | \n\n | $ | \n255 | \n\n |
| \n Benefits earned \n | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Interest cost on benefit obligation \n | \n\n | \n | 8 | \n\n | \n | 10 | \n\n |
| \n Actuarial gain \n | \n\n | \n | (17 | \n) | \n\n | (3 | \n) | \n
| \n Benefits paid \n | \n\n | \n | (11 | \n) | \n\n | (13 | \n) | \n
| \n Plan amendments \n | \n\n | \n | — | \n\n | \n | (11 | \n) | \n
| \n Foreign currency exchange rate change \n | \n\n | \n | 1 | \n\n | \n | (5 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Benefit obligation at end of year \n | \n\n | $ | \n214 | \n\n | $ | \n233 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in plan assets: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Fair value of plan assets at beginning of year \n | \n\n | $ | \n15 | \n\n | $ | \n16 | \n\n |
| \n Actual return on plan assets \n | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Company contributions \n | \n\n | \n | 10 | \n\n | \n | 12 | \n\n |
| \n Benefits paid \n | \n\n | \n | (11 | \n) | \n\n | (13 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Fair value of plan assets at end of year \n | \n\n | \n | 14 | \n\n | \n | 15 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Funded status of plan at end of year \n | \n\n | $ | \n(200 | \n) | \n$ | \n(218 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in the consolidated balance sheet consist of: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Accrued under-funded benefit plan liability \n | \n\n | $ | \n(200 | \n) | \n$ | \n(218 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in accumulated other comprehensive income consist of: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Net actuarial (gain) loss \n | \n\n | $ | \n(13 | \n) | \n$ | \n4 | \n\n |
| \n Prior service benefit \n | \n\n | \n | (31 | \n) | \n\n | (35 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n(44 | \n) | \n$ | \n(31 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
The total accumulated benefit obligation for the Company's defined benefit pension plans was $3.48 billion and $3.37 billion at December 31, 2016 and 2015, respectively. The qualified domestic pension plan accounted for $3.26 billion and $3.15 billion of the total accumulated benefit obligation at December 31, 2016 and 2015, respectively, whereas the nonqualified and foreign plans accounted for $0.22 billion of the total accumulated benefit obligation at both December 31, 2016 and 2015.
\nFor pension plans with an accumulated benefit obligation in excess of plan assets, the aggregate projected benefit obligation was $0.2 billion and $3.47 billion at December 31, 2016 and 2015, respectively, and the aggregate accumulated benefit obligation was $0.2 billion and $3.36 billion at December 31, 2016 and 2015, respectively. The fair value of plan assets for the above plans was $0.1 billion and $3.23 billion at December 31, 2016 and 2015, respectively.
\nThe Company has discretion regarding whether to provide additional funding and when to provide such funding to its qualified domestic pension plan. In 2016, 2015 and 2014, there were no required contributions to the qualified domestic pension plan. In 2016, 2015 and 2014, the Company voluntarily made contributions totaling $200 million, $100 million and $200 million, respectively, to the qualified domestic pension plan. There is no required contribution to the qualified domestic pension plan during 2017, and the Company has not determined whether or not additional funding will be made during 2017. With respect to the Company's foreign pension plans, there are no significant required contributions in 2017.
\nThe following table summarizes the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to the benefit plans.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Pension Plans | \n\n | Postretirement \nBenefit Plans | \n\n | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | ||||||
| \n Net Periodic Benefit Cost: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Service cost \n | \n\n | $ | \n118 | \n\n | $ | \n131 | \n\n | $ | \n110 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Interest cost on benefit obligation \n | \n\n | \n | 122 | \n\n | \n | 144 | \n\n | \n | 150 | \n\n | \n | 8 | \n\n | \n | 10 | \n\n | \n | 10 | \n\n |
| \n Expected return on plan assets \n | \n\n | \n | (230 | \n) | \n\n | (230 | \n) | \n\n | (218 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Curtailment \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (1 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Settlement \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Amortization of unrecognized: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Prior service benefit \n | \n\n | \n | (1 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | (3 | \n) | \n\n | (3 | \n) | \n\n | (2 | \n) | \n
| \n Net actuarial loss (gain) \n | \n\n | \n | 66 | \n\n | \n | 96 | \n\n | \n | 65 | \n\n | \n | — | \n\n | \n | 1 | \n\n | \n | (3 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net periodic benefit cost \n | \n\n | $ | \n76 | \n\n | $ | \n140 | \n\n | $ | \n108 | \n\n | $ | \n5 | \n\n | $ | \n8 | \n\n | $ | \n5 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other Changes in Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Prior service benefit \n | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n(8 | \n) | \n$ | \n— | \n\n | $ | \n(11 | \n) | \n$ | \n— | \n\n |
| \n Net actuarial loss (gain) \n | \n\n | \n | 66 | \n\n | \n | 43 | \n\n | \n | 516 | \n\n | \n | (17 | \n) | \n\n | (3 | \n) | \n\n | 50 | \n\n |
| \n Foreign currency exchange rate change \n | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Curtailment \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Settlement \n | \n\n | \n | (1 | \n) | \n\n | — | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Amortization of prior service benefit \n | \n\n | \n | 1 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 3 | \n\n | \n | 3 | \n\n | \n | 2 | \n\n |
| \n Amortization of net actuarial gain (loss) \n | \n\n | \n | (66 | \n) | \n\n | (96 | \n) | \n\n | (65 | \n) | \n\n | — | \n\n | \n | (1 | \n) | \n\n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other changes recognized in other comprehensive income \n | \n\n | \n | (2 | \n) | \n\n | (52 | \n) | \n\n | 439 | \n\n | \n | (13 | \n) | \n\n | (12 | \n) | \n\n | 55 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other changes recognized in net periodic benefit cost and other comprehensive income \n | \n\n | $ | \n74 | \n\n | $ | \n88 | \n\n | $ | \n547 | \n\n | $ | \n(8 | \n) | \n$ | \n(4 | \n) | \n$ | \n60 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
In 2016, the Company began using a full yield-curve approach in the estimation of the service and interest cost components of net periodic benefit costs for its qualified and nonqualified domestic pension plans and its domestic postretirement benefit plans. The full yield curve approach applies the specific spot rates along the yield curve that the Company used to determine its projected benefit obligation at the beginning of the year to the projected cash flows related to service and interest costs. Previously, the Company estimated these service and interest cost components by applying a single weighted-average discount rate derived from this yield curve. This change was made to provide a better estimate of the service and interest cost components of net periodic benefit costs, consistent with the methodology used to estimate the projected benefit obligation for each of the benefit plans.
\nThis change did not affect the measurement of the Company's total benefit obligations as the change in the service cost and interest cost is completely offset in the actuarial (gain) loss reported for the period. The change reduced the service and interest cost components of net periodic benefit costs for 2016 by $6 million and $30 million, respectively, and resulted in an $0.08 increase in diluted net income per share for 2016. The weighted average discount rates that were used to measure service and interest costs during 2016 were 4.77% and 3.64%, respectively, for the domestic qualified pension plan, 4.53% and 3.47%, respectively, for the domestic nonqualified pension plan and 0.00% and 3.53%, respectively, for the domestic postretirement benefit plan. The discount rate associated with the service cost component of the domestic postretirement benefit plan is zero as it is a closed plan and all participants are fully vested. Under the Company's prior estimation approach, the weighted average discount rate for both the service and interest cost components would have been 4.50% for the domestic qualified pension plan, 4.37% for the domestic nonqualified pension plan and 4.35% for the domestic postretirement benefit plan. The Company accounted for this change as a change in estimate, and accordingly, recognized the effect prospectively beginning in 2016.
\nFor the defined benefit pension plans, the estimated net actuarial loss that will be reclassified (amortized) from accumulated other comprehensive income into net income as part of net periodic benefit cost over the next fiscal year is $75 million and the estimated prior service benefit to be amortized over the next fiscal year is $1 million. For the postretirement benefit plans, the estimated net actuarial gain that will be reclassified (amortized) from accumulated other comprehensive income into net income as part of net periodic benefit cost over the next fiscal year is less than $1 million, and the estimated prior service benefit to be amortized over the next fiscal year is $3 million.
\nAssumptions and Health Care Cost Trend Rate Sensitivity
\nThe following table summarizes assumptions used with regard to the Company's qualified and nonqualified domestic pension plans and the domestic postretirement benefit plans.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at and for the year ended December 31,) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Assumptions used to determine benefit obligations \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Discount rate: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Qualified domestic pension plan \n | \n\n | \n | 4.23 | \n% | \n\n | 4.50 | \n% | \n
| \n Nonqualified domestic pension plan \n | \n\n | \n | 4.15 | \n% | \n\n | 4.37 | \n% | \n
| \n Domestic postretirement benefit plan \n | \n\n | \n | 4.10 | \n% | \n\n | 4.35 | \n% | \n
| \n Future compensation increase rate \n | \n\n | \n | 4.00 | \n% | \n\n | 4.00 | \n% | \n
| \n Assumptions used to determine net periodic benefit cost \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Discount rate: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Qualified domestic pension plan: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Service cost \n | \n\n | \n | 4.77 | \n% | \n\n | 4.10 | \n% | \n
| \n Interest cost \n | \n\n | \n | 3.64 | \n% | \n\n | 4.10 | \n% | \n
| \n Nonqualified domestic pension plan: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Service cost \n | \n\n | \n | 4.53 | \n% | \n\n | 4.10 | \n% | \n
| \n Interest cost \n | \n\n | \n | 3.47 | \n% | \n\n | 4.10 | \n% | \n
| \n Domestic postretirement benefit plan: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Interest cost \n | \n\n | \n | 3.53 | \n% | \n\n | 4.10 | \n% | \n
| \n Expected long-term rate of return on assets: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Pension plan \n | \n\n | \n | 7.00 | \n% | \n\n | 7.25 | \n% | \n
| \n Postretirement benefit plan \n | \n\n | \n | 4.00 | \n% | \n\n | 4.00 | \n% | \n
| \n Assumed health care cost trend rates \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Following year: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Medical (before age 65) \n | \n\n | \n | 6.50 | \n% | \n\n | 6.75 | \n% | \n
| \n Medical (age 65 and older) \n | \n\n | \n | 7.25 | \n% | \n\n | 7.50 | \n% | \n
| \n Rate to which the cost trend rate is assumed to decline (ultimate trend rate) \n | \n\n | \n | \n5.00 | \n\n% | \n\n | \n5.00 | \n\n% | \n
| \n Year that the rate reaches the ultimate trend rate: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Medical (before age 65) \n | \n\n | \n | 2022 | \n\n | \n | 2022 | \n\n |
| \n Medical (age 65 and older) \n | \n\n | \n | 2025 | \n\n | \n | 2025 | \n\n |
The discount rate assumption used to determine the benefit obligation is based on a yield-curve approach. Under this approach, individual spot rates from the yield curve of a hypothetical portfolio of high quality fixed maturity corporate bonds (rated Aa) available at the year-end valuation date, for which the timing and amount of cash outflows correspond with the timing and amount of the estimated benefit payouts of the Company's benefit plan, are applied to expected future benefits payments in measuring the projected benefit obligation. The discount rate assumption used to determine benefit obligations disclosed above represents the weighted average of the individual spot rates.
\nThe discount rate assumption used to determine the net periodic benefit cost is the single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the year.
\nIn choosing the expected long-term rate of return on plan assets, the Company selected the rate that was set as the return objective by the Company's Benefit Plans Investment Committee, which had considered the historical returns of equity and fixed maturity markets in conjunction with prevailing economic and financial market conditions.
\nAs an indicator of sensitivity, increasing the assumed health care cost trend rate by 1% would have increased the accumulated postretirement benefit obligation by $20 million at December 31, 2016, and the aggregate of the service and interest cost components of net postretirement benefit expense by $1 million for the year ended December 31, 2016. Decreasing the assumed health care cost trend rate by 1% would have decreased the accumulated postretirement benefit obligation at December 31, 2016 by $17 million and the aggregate of the service and interest cost components of net postretirement benefit expense by $1 million for the year ended December 31, 2016.
\nThe assumptions made for the Company's foreign pension and foreign postretirement benefit plans are not materially different from those of the Company's qualified domestic pension plan and the domestic postretirement benefit plan.
\nPlan Assets
\nThe qualified domestic pension plan assets are invested for the exclusive benefit of the plan participants and beneficiaries and are intended, over time, to satisfy the benefit obligations under the plan. Risk tolerance is established through consideration of plan liabilities, plan funded status and corporate financial position. The asset mix guidelines have been established and are reviewed quarterly. These guidelines are intended to serve as tools to facilitate the investment of plan assets to maximize long-term total return and the ongoing oversight of the plan's investment performance. Investment risk is measured and monitored on an ongoing basis through daily and monthly investment portfolio reviews, annual liability measurements and periodic asset/liability studies.
\nThe Company's overall investment strategy for the qualified domestic pension plan is to achieve a mix of approximately 85% to 90% of investments for long-term growth and 10% to 15% for near-term benefit payments with a diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 55% to 65% equity securities and 20% to 40% fixed income securities, with the remainder allocated to short-term securities. Equity securities primarily include investments in large, medium and small-cap companies primarily located in the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, U.S. Treasury securities and debt securities issued by foreign governments. Other investments include two private equity funds held by the Company's qualified defined benefit pension plan. One private equity fund is focused on financial companies, and the other is focused on real estate-related investments.
\nAssets of the Company's foreign pension plans are not significant.
\nFair Value Measurement—Pension Plans and Other Postretirement Benefit Assets
\nFor a discussion of the methods employed by the Company to measure the fair value of invested assets, see note 4. The following discussion of fair value measurements applies exclusively to the Company's pension plans and other postretirement benefit assets.
\nFair value estimates for equity and bond mutual funds held by the pension plans reflect prices received from an external pricing service that are based on observable market transactions. These estimates are included in Level 1.
\nShort-term securities are carried at fair value which approximates cost plus accrued interest or amortized discount. The fair value or market value of these is periodically compared to this amortized cost and is based on significant observable inputs as determined by an external pricing service. Accordingly, the estimates of fair value for such short-term securities, other than U.S. Treasury securities and money market mutual funds, provided by an external pricing service are included in the amount disclosed in Level 2 of the hierarchy. The estimated fair value of U.S. Treasury securities and money market mutual funds is included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices.
\nFair Value Hierarchy—Pension Plans
\nThe following tables present the level within the fair value hierarchy at which the financial assets of the Company's pension plans are measured on a recurring basis.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | $ | \n9 | \n\n | $ | \n— | \n\n | $ | \n9 | \n\n | $ | \n— | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 14 | \n\n | \n | — | \n\n | \n | 14 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 12 | \n\n | \n | — | \n\n | \n | 12 | \n\n | \n | — | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 511 | \n\n | \n | — | \n\n | \n | 511 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 546 | \n\n | \n | — | \n\n | \n | 546 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Mutual funds \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Equity mutual funds \n | \n\n | \n | 1,285 | \n\n | \n | 1,278 | \n\n | \n | 7 | \n\n | \n | — | \n\n |
| \n Bond mutual funds \n | \n\n | \n | 641 | \n\n | \n | 638 | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total mutual funds \n | \n\n | \n | 1,926 | \n\n | \n | 1,916 | \n\n | \n | 10 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | 747 | \n\n | \n | 747 | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments(1) \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash and short-term securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities \n | \n\n | \n | 45 | \n\n | \n | 45 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Money market mutual funds \n | \n\n | \n | 20 | \n\n | \n | 19 | \n\n | \n | 1 | \n\n | \n | — | \n\n |
| \n Other \n | \n\n | \n | 208 | \n\n | \n | 28 | \n\n | \n | 180 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total cash and short-term securities \n | \n\n | \n | 273 | \n\n | \n | 92 | \n\n | \n | 181 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n3,493 | \n\n | $ | \n2,755 | \n\n | $ | \n737 | \n\n | $ | \n1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The balance of Level 3 fair value investments was $1 million at December 31, 2016 and the change in balance from the prior year was insignificant.
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | $ | \n17 | \n\n | $ | \n— | \n\n | $ | \n17 | \n\n | $ | \n— | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 16 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 16 | \n\n | \n | — | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 491 | \n\n | \n | — | \n\n | \n | 491 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 540 | \n\n | \n | — | \n\n | \n | 540 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Mutual funds \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Equity mutual funds \n | \n\n | \n | 1,237 | \n\n | \n | 1,231 | \n\n | \n | 6 | \n\n | \n | — | \n\n |
| \n Bond mutual funds \n | \n\n | \n | 649 | \n\n | \n | 646 | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total mutual funds \n | \n\n | \n | 1,886 | \n\n | \n | 1,877 | \n\n | \n | 9 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | 625 | \n\n | \n | 624 | \n\n | \n | 1 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments(1) \n | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash and short-term securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities \n | \n\n | \n | 25 | \n\n | \n | 25 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Money market mutual funds \n | \n\n | \n | 23 | \n\n | \n | 19 | \n\n | \n | 4 | \n\n | \n | — | \n\n |
| \n Other \n | \n\n | \n | 141 | \n\n | \n | 20 | \n\n | \n | 121 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total cash and short-term securities \n | \n\n | \n | 189 | \n\n | \n | 64 | \n\n | \n | 125 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n3,242 | \n\n | $ | \n2,565 | \n\n | $ | \n675 | \n\n | $ | \n2 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The balance of Level 3 fair value investments was $2 million at December 31, 2015 and the change in balance from the prior year was insignificant.
\nOther Postretirement Benefit Plans
\nThe Company's overall investment strategy is to achieve a mix of approximately 35% to 65% of investments for long-term growth and 35% to 60% for near-term insurance payments with a wide diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 25% to 75% fixed income securities, with the remainder allocated to short-term securities. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities and U.S. Treasuries.
\nFair Value—Other Postretirement Benefit Plans
\nThe Company's other postretirement benefit plans had financial assets of $14 million and $15 million at December 31, 2016 and 2015, respectively, which are measured at fair value on a recurring basis. The assets are primarily corporate bonds and short-term securities and categorized as level 2 in the fair value hierarchy.
\nEstimated Future Benefit Payments
\nThe following table presents the estimated benefits expected to be paid by the Company's pension and postretirement benefit plans for the next ten years (reflecting estimated future employee service).
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Benefits Expected to be Paid | \n\n | ||||
|---|---|---|---|---|---|---|---|
| \n (in millions) \n | \n\n | Pension Plans | \n\n | Postretirement \nBenefit Plans | \n\n | ||
| \n 2017 \n | \n\n | $ | \n230 | \n\n | $ | \n13 | \n\n |
| \n 2018 \n | \n\n | \n | 240 | \n\n | \n | 14 | \n\n |
| \n 2019 \n | \n\n | \n | 247 | \n\n | \n | 14 | \n\n |
| \n 2020 \n | \n\n | \n | 253 | \n\n | \n | 14 | \n\n |
| \n 2021 \n | \n\n | \n | 258 | \n\n | \n | 14 | \n\n |
| \n 2022 through 2026 \n | \n\n | \n | 1,327 | \n\n | \n | 71 | \n\n |
Savings Plan
\nThe Company has a savings plan, The Travelers 401(k) Savings Plan (the Savings Plan), in which substantially all U.S. domestic Company employees are eligible to participate. Under the Savings Plan, the Company matches employee contributions up to 5% of eligible pay, with a maximum annual match of $6,000 which becomes 100% vested after three years of service. The Company's matching contribution is made in cash and invested according to the employee's current investment elections and can be reinvested into other investment options in accordance with the terms of the plan. The Company's non-U.S. employees participate in separate savings plans. The total expense related to all of the savings plans was $114 million, $109 million and $103 million for the years ended December 31, 2016, 2015 and 2014, respectively.
\nAll common shares held by the Savings Plan are considered outstanding for basic and diluted EPS computations and dividends paid on all shares are charged to retained earnings.
\n15. LEASES
\nRent expense was $197 million, $202 million and $215 million in 2016, 2015 and 2014, respectively.
\nFuture minimum annual rental payments under noncancellable operating leases for 2017, 2018, 2019, 2020 and 2021 are $147 million, $118 million, $100 million, $80 million and $60 million, respectively, and $100 million for 2022 and thereafter. Future sublease rental income aggregating approximately $4 million will partially offset these commitments.
\n16. CONTINGENCIES, COMMITMENTS AND GUARANTEES
\nContingencies
\nThe major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or to which any of the Company's properties is subject are described below.
\nAsbestos and Environmental Claims and Litigation
\nIn the ordinary course of its insurance business, the Company has received and continues to receive claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos- and environmental-related exposures that are the subject of related coverage litigation. The Company is defending asbestos- and environmental-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and aggressive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. Currently, it is not possible to predict legal outcomes and their impact on the future development of claims and litigation relating to asbestos and environmental claims. Any such development will be affected by future court decisions and interpretations, as well as changes in applicable legislation. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company's current insurance reserves. In addition, the Company's estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or increases in estimates, or a range of either, cannot now be reasonably estimated and could result in income statement charges that could be material to the Company's results of operations in future periods.
\nSettlement of Asbestos Direct Action Litigation
\nIn 2001 and 2002, a number of lawsuits, including two purported class action suits, were filed against certain subsidiaries of the Company (collectively or individually, Travelers) and other insurers in state courts in West Virginia, Massachusetts and Hawaii. The plaintiffs alleged that the insurer defendants had inappropriately handled and settled asbestos claims in violation of those states' statutes regulating insurance claims handling and/or those states' common law. In all these suits, the plaintiffs sought to reopen large numbers of settled asbestos claims and to impose liability for damages, including punitive damages, directly on insurers. These suits are collectively referred to as the Statutory Actions.
\nPlaintiffs also filed complaints during 2001 and 2002 in State Courts in West Virginia, Texas and Ohio, and occasionally in other jurisdictions, against Travelers and other insurers, alleging that the insurers breached alleged duties to individuals allegedly exposed to asbestos products. The plaintiffs sought damages for personal injuries and wrongful death, including punitive damages. These suits are collectively referred to as the Common Law Actions.
\nIn response to these claims, Travelers moved to enjoin the Statutory Actions and the Common Law Actions in the federal bankruptcy court that had presided over the bankruptcy of its former policyholder Johns-Manville Corporation on the ground that the suits violated injunctions entered in connection with confirmation of the Johns-Manville bankruptcy (the 1986 Orders). The bankruptcy court issued a temporary restraining order and referred the parties to mediation, which resulted in settlements of the Statutory Actions and the Common Law Actions (the Settlements). The Settlements were contingent upon, among other contingencies, a final order confirming that the 1986 Orders enjoined the Statutory Actions and the Common Law Actions as well as related contribution claims against Travelers (the Clarifying Order).
\nNumerous proceedings took place in the bankruptcy, district and appellate courts concerning the entry of the Clarifying Order and approval of the Settlements and their effect on other parties.
\nIn 2009, the United States Supreme Court affirmed the bankruptcy court's entry of the Clarifying Order enjoining the Statutory Actions and the Common Law Actions. The Supreme Court remanded the case to the lower courts to consider any properly preserved objections. Following resolution, after remand, of one remaining objection (regarding potential contribution claims against the Company), and entry of a final judgment by the bankruptcy court approving the Settlements, Travelers made payment of $579 million to the plaintiffs in January 2015, comprising $502 million provided under the terms of the Settlements, plus pre-judgment and post-judgment interest totaling $77 million. The payment was fully accrued in the Company's financial statements at December 31, 2014.
\nOther Proceedings Not Arising Under Insurance Contracts or Reinsurance Agreements
\nThe Company is involved in other lawsuits, including lawsuits alleging extra-contractual damages relating to insurance contracts or reinsurance agreements, that do not arise under insurance contracts or reinsurance agreements. The legal costs associated with such lawsuits are expensed in the period in which the costs are incurred. Based upon currently available information, the Company does not believe it is reasonably possible that any such lawsuit or related lawsuits would be material to the Company's results of operations or would have a material adverse effect on the Company's financial position or liquidity.
\nGain Contingency
\nOn August 17, 2010, in a reinsurance dispute in New York state court captioned United States Fidelity & Guaranty Company v. American Re-Insurance Company, et al., the trial court granted summary judgment for United States Fidelity and Guaranty Company (USF&G), a subsidiary of the Company, and denied summary judgment for the reinsurers. The Court of Appeals largely affirmed the entry of summary judgment, but remanded two discrete issues for trial. Thereafter, the reinsurers filed a motion with the trial court to change venue, and the trial court denied the motion.
\nOn November 7, 2016, the Company agreed to a settlement with one of the three defendants then remaining in this dispute. The Company received payment under the settlement in the fourth quarter of 2016 and, as a result, recognized a $126 million pre-tax ($82 million after-tax) gain in the fourth quarter, which is included in \"other revenues\" in the consolidated statement of income. The reinsurance recoverable balance related to this case was reduced from approximately $238 million to approximately $31 million in the Company's consolidated balance sheet.
\nOn December 22, 2016, the Appellate Court, First Department affirmed the denial of the reinsurers' motion to change venue and a trial is set to proceed on May 1, 2017 with regard to the remaining two defendants—both of which are subsidiaries of the same company. At December 31, 2016, the claim related to the remaining defendants totaled $69 million, comprising $31 million of a reinsurance recoverable plus interest amounting to $38 million as of that date. Interest will continue to accrue at an annual rate of 9% until the amounts owed by the remaining defendants are paid, though the reinsurers still party to the case contested that interest is owed in a brief filed on June 6, 2016. The interest that would be owed as part of any judgment ultimately entered in favor of the Company related to the remaining defendants is treated for accounting purposes as a gain contingency in accordance with FASB Topic 450, Contingencies, and accordingly has not been recognized in the Company's consolidated financial statements.
\nOther Commitments and Guarantees
\nCommitments
\nInvestment Commitments—The Company has unfunded commitments to private equity limited partnerships and real estate partnerships in which it invests. These commitments totaled $1.60 billion and $1.71 billion at December 31, 2016 and 2015, respectively.
\nGuarantees
\nIn the ordinary course of selling businesses to third parties, the Company has agreed to indemnify purchasers for losses arising out of breaches of representations and warranties with respect to the businesses being sold, covenants and obligations of the Company and/or its subsidiaries and, in certain cases, obligations arising from certain liabilities. Such indemnification provisions generally are applicable from the closing date to the expiration of the relevant statutes of limitations, although, in some cases, there may be agreed upon term limitations or no term limitations. Certain of these contingent obligations are subject to deductibles which have to be incurred by the obligee before the Company is obligated to make payments. The maximum amount of the Company's contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $358 million at December 31, 2016, of which $2 million was recognized on the balance sheet at that date.
\nThe Company also has contingent obligations for guarantees related to certain investments, third-party loans related to certain investments, certain insurance policy obligations of former insurance subsidiaries and various other indemnifications. The Company also provides standard indemnifications to service providers in the normal course of business. The indemnification clauses are often standard contractual terms. The maximum amount of the Company's obligation for guarantees of certain investments and third-party loans related to certain investments that are quantifiable was $150 million at December 31, 2016, approximately $75 million of which is indemnified by a third party. The maximum amount of the Company's obligation related to the guarantee of certain insurance policy obligations of a former insurance subsidiary was $480 million at December 31, 2016, all of which is indemnified by a third party.
\nCertain of the guarantees and indemnifications described above have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, the Company is unable to provide an estimate of the maximum potential payments for such arrangements.
\n17. NONCASH INVESTING AND FINANCING ACTIVITIES
\nThere were no material noncash financing or investing activities during the years ended December 31, 2016, 2015 and 2014.
\n18. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
\nThe following consolidating financial statements of the Company have been prepared pursuant to Rule 3-10 of Regulation S-X. These consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the consolidated financial statements. The Travelers Companies, Inc. (excluding its subsidiaries, TRV) has fully and unconditionally guaranteed certain debt obligations of Travelers Property Casualty Corp. (TPC), which totaled $700 million at December 31, 2016.
\nPrior 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.
\nCONSOLIDATING STATEMENT OF INCOME (Unaudited)
\nFor the year ended December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenues \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n16,788 | \n\n | $ | \n7,746 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n24,534 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,569 | \n\n | \n | 720 | \n\n | \n | 13 | \n\n | \n | — | \n\n | \n | 2,302 | \n\n |
| \n Fee income \n | \n\n | \n | 458 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 458 | \n\n |
| \n Net realized investment gains (losses)(1) \n | \n\n | \n | 30 | \n\n | \n | 39 | \n\n | \n | (1 | \n) | \n\n | — | \n\n | \n | 68 | \n\n |
| \n Other revenues \n | \n\n | \n | 248 | \n\n | \n | 36 | \n\n | \n | — | \n\n | \n | (21 | \n) | \n\n | 263 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | \n | 19,093 | \n\n | \n | 8,541 | \n\n | \n | 12 | \n\n | \n | (21 | \n) | \n\n | 27,625 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and expenses \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expenses \n | \n\n | \n | 10,232 | \n\n | \n | 4,838 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 15,070 | \n\n |
| \n Amortization of deferred acquisition costs \n | \n\n | \n | 2,702 | \n\n | \n | 1,283 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,985 | \n\n |
| \n General and administrative expenses \n | \n\n | \n | 2,928 | \n\n | \n | 1,242 | \n\n | \n | 5 | \n\n | \n | (21 | \n) | \n\n | 4,154 | \n\n |
| \n Interest expense \n | \n\n | \n | 48 | \n\n | \n | — | \n\n | \n | 315 | \n\n | \n | — | \n\n | \n | 363 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total claims and expenses \n | \n\n | \n | 15,910 | \n\n | \n | 7,363 | \n\n | \n | 320 | \n\n | \n | (21 | \n) | \n\n | 23,572 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income (loss) before income taxes \n | \n\n | \n | 3,183 | \n\n | \n | 1,178 | \n\n | \n | (308 | \n) | \n\n | — | \n\n | \n | 4,053 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 999 | \n\n | \n | 208 | \n\n | \n | (168 | \n) | \n\n | — | \n\n | \n | 1,039 | \n\n |
| \n Net income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,154 | \n\n | \n | (3,154 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n2,184 | \n\n | $ | \n970 | \n\n | $ | \n3,014 | \n\n | $ | \n(3,154 | \n) | \n$ | \n3,014 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total OTTI losses \n | \n\n | $ | \n(19 | \n) | \n$ | \n(20 | \n) | \n$ | \n(1 | \n) | \n$ | \n— | \n\n | $ | \n(40 | \n) | \n
| \n OTTI losses recognized in net realized investment gains (losses) \n | \n\n | $ | \n(13 | \n) | \n$ | \n(15 | \n) | \n$ | \n(1 | \n) | \n$ | \n— | \n\n | $ | \n(29 | \n) | \n
| \n OTTI losses recognized in OCI \n | \n\n | $ | \n(6 | \n) | \n$ | \n(5 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(11 | \n) | \n
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
\nFor the year ended December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenues \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n16,254 | \n\n | $ | \n7,620 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n23,874 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,612 | \n\n | \n | 760 | \n\n | \n | 7 | \n\n | \n | — | \n\n | \n | 2,379 | \n\n |
| \n Fee income \n | \n\n | \n | 460 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 460 | \n\n |
| \n Net realized investment gains (losses)(1) \n | \n\n | \n | 13 | \n\n | \n | (11 | \n) | \n\n | 1 | \n\n | \n | — | \n\n | \n | 3 | \n\n |
| \n Other revenues \n | \n\n | \n | 78 | \n\n | \n | 21 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 99 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | \n | 18,417 | \n\n | \n | 8,390 | \n\n | \n | 8 | \n\n | \n | — | \n\n | \n | 26,815 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and expenses \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expenses \n | \n\n | \n | 9,208 | \n\n | \n | 4,515 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 13,723 | \n\n |
| \n Amortization of deferred acquisition costs \n | \n\n | \n | 2,627 | \n\n | \n | 1,258 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,885 | \n\n |
| \n General and administrative expenses \n | \n\n | \n | 2,853 | \n\n | \n | 1,225 | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 4,094 | \n\n |
| \n Interest expense \n | \n\n | \n | 48 | \n\n | \n | — | \n\n | \n | 325 | \n\n | \n | — | \n\n | \n | 373 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total claims and expenses \n | \n\n | \n | 14,736 | \n\n | \n | 6,998 | \n\n | \n | 341 | \n\n | \n | — | \n\n | \n | 22,075 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income (loss) before income taxes \n | \n\n | \n | 3,681 | \n\n | \n | 1,392 | \n\n | \n | (333 | \n) | \n\n | — | \n\n | \n | 4,740 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 1,015 | \n\n | \n | 394 | \n\n | \n | (108 | \n) | \n\n | — | \n\n | \n | 1,301 | \n\n |
| \n Net income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,664 | \n\n | \n | (3,664 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n2,666 | \n\n | $ | \n998 | \n\n | $ | \n3,439 | \n\n | $ | \n(3,664 | \n) | \n$ | \n3,439 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total OTTI losses \n | \n\n | $ | \n(19 | \n) | \n$ | \n(35 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(54 | \n) | \n
| \n OTTI losses recognized in net realized investment gains (losses) \n | \n\n | $ | \n(18 | \n) | \n$ | \n(34 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(52 | \n) | \n
| \n OTTI losses recognized in OCI \n | \n\n | $ | \n(1 | \n) | \n$ | \n(1 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(2 | \n) | \n
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
\nFor the year ended December 31, 2014
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenues \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n16,097 | \n\n | $ | \n7,616 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n23,713 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,874 | \n\n | \n | 907 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 2,787 | \n\n |
| \n Fee income \n | \n\n | \n | 448 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 450 | \n\n |
| \n Net realized investment gains(1) \n | \n\n | \n | 12 | \n\n | \n | 64 | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | 79 | \n\n |
| \n Other revenues \n | \n\n | \n | 125 | \n\n | \n | 20 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 145 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | \n | 18,556 | \n\n | \n | 8,609 | \n\n | \n | 9 | \n\n | \n | — | \n\n | \n | 27,174 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and expenses \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expenses \n | \n\n | \n | 9,274 | \n\n | \n | 4,596 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 13,870 | \n\n |
| \n Amortization of deferred acquisition costs \n | \n\n | \n | 2,604 | \n\n | \n | 1,278 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,882 | \n\n |
| \n General and administrative expenses \n | \n\n | \n | 2,755 | \n\n | \n | 1,194 | \n\n | \n | 15 | \n\n | \n | — | \n\n | \n | 3,964 | \n\n |
| \n Interest expense \n | \n\n | \n | 48 | \n\n | \n | — | \n\n | \n | 321 | \n\n | \n | — | \n\n | \n | 369 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total claims and expenses \n | \n\n | \n | 14,681 | \n\n | \n | 7,068 | \n\n | \n | 336 | \n\n | \n | — | \n\n | \n | 22,085 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income (loss) before income taxes \n | \n\n | \n | 3,875 | \n\n | \n | 1,541 | \n\n | \n | (327 | \n) | \n\n | — | \n\n | \n | 5,089 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 1,095 | \n\n | \n | 417 | \n\n | \n | (115 | \n) | \n\n | — | \n\n | \n | 1,397 | \n\n |
| \n Net income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,904 | \n\n | \n | (3,904 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n2,780 | \n\n | $ | \n1,124 | \n\n | $ | \n3,692 | \n\n | $ | \n(3,904 | \n) | \n$ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total OTTI losses \n | \n\n | $ | \n(16 | \n) | \n$ | \n(6 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(22 | \n) | \n
| \n OTTI losses recognized in net realized investment gains \n | \n\n | $ | \n(19 | \n) | \n$ | \n(7 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(26 | \n) | \n
| \n OTTI gains recognized in OCI \n | \n\n | $ | \n3 | \n\n | $ | \n1 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n4 | \n\n |
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
\nFor the year ended December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Net income \n | \n\n | $ | \n2,184 | \n\n | $ | \n970 | \n\n | $ | \n3,014 | \n\n | $ | \n(3,154 | \n) | \n$ | \n3,014 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | \n | (696 | \n) | \n\n | (198 | \n) | \n\n | 11 | \n\n | \n | — | \n\n | \n | (883 | \n) | \n
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | 11 | \n\n | \n | 10 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 21 | \n\n |
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | 25 | \n\n | \n | 11 | \n\n | \n | (20 | \n) | \n\n | — | \n\n | \n | 16 | \n\n |
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | 73 | \n\n | \n | (114 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (41 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss before income taxes and other comprehensive loss of subsidiaries \n | \n\n | \n | (587 | \n) | \n\n | (291 | \n) | \n\n | (9 | \n) | \n\n | — | \n\n | \n | (887 | \n) | \n
| \n Income tax benefit \n | \n\n | \n | (222 | \n) | \n\n | (66 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | (289 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss, net of taxes, before other comprehensive loss of subsidiaries \n | \n\n | \n | (365 | \n) | \n\n | (225 | \n) | \n\n | (8 | \n) | \n\n | — | \n\n | \n | (598 | \n) | \n
| \n Other comprehensive loss of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (590 | \n) | \n\n | 590 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss \n | \n\n | \n | (365 | \n) | \n\n | (225 | \n) | \n\n | (598 | \n) | \n\n | 590 | \n\n | \n | (598 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Comprehensive income \n | \n\n | $ | \n1,819 | \n\n | $ | \n745 | \n\n | $ | \n2,416 | \n\n | $ | \n(2,564 | \n) | \n$ | \n2,416 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
\nFor the year ended December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Net income \n | \n\n | $ | \n2,666 | \n\n | $ | \n998 | \n\n | $ | \n3,439 | \n\n | $ | \n(3,664 | \n) | \n$ | \n3,439 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | \n | (610 | \n) | \n\n | (407 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | (1,020 | \n) | \n
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | (12 | \n) | \n\n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (14 | \n) | \n
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 64 | \n\n | \n | — | \n\n | \n | 66 | \n\n |
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | (306 | \n) | \n\n | (155 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (461 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries \n | \n\n | \n | (926 | \n) | \n\n | (564 | \n) | \n\n | 61 | \n\n | \n | — | \n\n | \n | (1,429 | \n) | \n
| \n Income tax expense (benefit) \n | \n\n | \n | (257 | \n) | \n\n | (156 | \n) | \n\n | 21 | \n\n | \n | — | \n\n | \n | (392 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries \n | \n\n | \n | (669 | \n) | \n\n | (408 | \n) | \n\n | 40 | \n\n | \n | — | \n\n | \n | (1,037 | \n) | \n
| \n Other comprehensive loss of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (1,077 | \n) | \n\n | 1,077 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss \n | \n\n | \n | (669 | \n) | \n\n | (408 | \n) | \n\n | (1,037 | \n) | \n\n | 1,077 | \n\n | \n | (1,037 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Comprehensive income \n | \n\n | $ | \n1,997 | \n\n | $ | \n590 | \n\n | $ | \n2,402 | \n\n | $ | \n(2,587 | \n) | \n$ | \n2,402 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
\nFor the year ended December 31, 2014
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Net income \n | \n\n | $ | \n2,780 | \n\n | $ | \n1,124 | \n\n | $ | \n3,692 | \n\n | $ | \n(3,904 | \n) | \n$ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | \n | 681 | \n\n | \n | 289 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 976 | \n\n |
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | 9 | \n\n | \n | (7 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n |
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | (15 | \n) | \n\n | (8 | \n) | \n\n | (471 | \n) | \n\n | — | \n\n | \n | (494 | \n) | \n
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | (173 | \n) | \n\n | (116 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (289 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries \n | \n\n | \n | 502 | \n\n | \n | 158 | \n\n | \n | (465 | \n) | \n\n | — | \n\n | \n | 195 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 207 | \n\n | \n | 81 | \n\n | \n | (163 | \n) | \n\n | — | \n\n | \n | 125 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries \n | \n\n | \n | 295 | \n\n | \n | 77 | \n\n | \n | (302 | \n) | \n\n | — | \n\n | \n | 70 | \n\n |
| \n Other comprehensive income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 372 | \n\n | \n | (372 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income \n | \n\n | \n | 295 | \n\n | \n | 77 | \n\n | \n | 70 | \n\n | \n | (372 | \n) | \n\n | 70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Comprehensive income \n | \n\n | $ | \n3,075 | \n\n | $ | \n1,201 | \n\n | $ | \n3,762 | \n\n | $ | \n(4,276 | \n) | \n$ | \n3,762 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING BALANCE SHEET (Unaudited)
\nAt December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Assets \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities, available for sale, at fair value (amortized cost $59,650) \n | \n\n | $ | \n42,014 | \n\n | $ | \n18,452 | \n\n | $ | \n49 | \n\n | $ | \n— | \n\n | $ | \n60,515 | \n\n |
| \n Equity securities, available for sale, at fair value (cost $504) \n | \n\n | \n | 169 | \n\n | \n | 408 | \n\n | \n | 155 | \n\n | \n | — | \n\n | \n | 732 | \n\n |
| \n Real estate investments \n | \n\n | \n | 56 | \n\n | \n | 872 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 928 | \n\n |
| \n Short-term securities \n | \n\n | \n | 2,447 | \n\n | \n | 791 | \n\n | \n | 1,627 | \n\n | \n | — | \n\n | \n | 4,865 | \n\n |
| \n Other investments \n | \n\n | \n | 2,569 | \n\n | \n | 878 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 3,448 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total investments \n | \n\n | \n | 47,255 | \n\n | \n | 21,401 | \n\n | \n | 1,832 | \n\n | \n | — | \n\n | \n | 70,488 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash \n | \n\n | \n | 141 | \n\n | \n | 164 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 307 | \n\n |
| \n Investment income accrued \n | \n\n | \n | 441 | \n\n | \n | 183 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 630 | \n\n |
| \n Premiums receivable \n | \n\n | \n | 4,545 | \n\n | \n | 2,177 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 6,722 | \n\n |
| \n Reinsurance recoverables \n | \n\n | \n | 5,664 | \n\n | \n | 2,623 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 8,287 | \n\n |
| \n Ceded unearned premiums \n | \n\n | \n | 536 | \n\n | \n | 53 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 589 | \n\n |
| \n Deferred acquisition costs \n | \n\n | \n | 1,741 | \n\n | \n | 182 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1,923 | \n\n |
| \n Deferred taxes \n | \n\n | \n | 216 | \n\n | \n | 224 | \n\n | \n | 25 | \n\n | \n | — | \n\n | \n | 465 | \n\n |
| \n Contractholder receivables \n | \n\n | \n | 3,656 | \n\n | \n | 953 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,609 | \n\n |
| \n Goodwill \n | \n\n | \n | 2,578 | \n\n | \n | 1,002 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,580 | \n\n |
| \n Other intangible assets \n | \n\n | \n | 202 | \n\n | \n | 66 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 268 | \n\n |
| \n Investment in subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 27,137 | \n\n | \n | (27,137 | \n) | \n\n | — | \n\n |
| \n Other assets \n | \n\n | \n | 1,973 | \n\n | \n | 370 | \n\n | \n | 34 | \n\n | \n | — | \n\n | \n | 2,377 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total assets \n | \n\n | $ | \n68,948 | \n\n | $ | \n29,398 | \n\n | $ | \n29,036 | \n\n | $ | \n(27,137 | \n) | \n$ | \n100,245 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Liabilities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expense reserves \n | \n\n | $ | \n32,168 | \n\n | $ | \n15,781 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n47,949 | \n\n |
| \n Unearned premium reserves \n | \n\n | \n | 8,575 | \n\n | \n | 3,754 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 12,329 | \n\n |
| \n Contractholder payables \n | \n\n | \n | 3,656 | \n\n | \n | 953 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,609 | \n\n |
| \n Payables for reinsurance premiums \n | \n\n | \n | 156 | \n\n | \n | 117 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 273 | \n\n |
| \n Debt \n | \n\n | \n | 693 | \n\n | \n | — | \n\n | \n | 5,744 | \n\n | \n | — | \n\n | \n | 6,437 | \n\n |
| \n Other liabilities \n | \n\n | \n | 4,106 | \n\n | \n | 1,239 | \n\n | \n | 82 | \n\n | \n | — | \n\n | \n | 5,427 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities \n | \n\n | \n | 49,354 | \n\n | \n | 21,844 | \n\n | \n | 5,826 | \n\n | \n | — | \n\n | \n | 77,024 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Shareholders' equity \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Common stock (1,750.0 shares authorized; 279.6 shares issued and outstanding) \n | \n\n | \n | — | \n\n | \n | 390 | \n\n | \n | 22,614 | \n\n | \n | (390 | \n) | \n\n | 22,614 | \n\n |
| \n Additional paid-in capital \n | \n\n | \n | 11,634 | \n\n | \n | 6,499 | \n\n | \n | — | \n\n | \n | (18,133 | \n) | \n\n | — | \n\n |
| \n Retained earnings \n | \n\n | \n | 7,933 | \n\n | \n | 797 | \n\n | \n | 32,185 | \n\n | \n | (8,719 | \n) | \n\n | 32,196 | \n\n |
| \n Accumulated other comprehensive income (loss) \n | \n\n | \n | 27 | \n\n | \n | (132 | \n) | \n\n | (755 | \n) | \n\n | 105 | \n\n | \n | (755 | \n) | \n
| \n Treasury stock, at cost (489.5 shares) \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (30,834 | \n) | \n\n | — | \n\n | \n | (30,834 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total shareholders' equity \n | \n\n | \n | 19,594 | \n\n | \n | 7,554 | \n\n | \n | 23,210 | \n\n | \n | (27,137 | \n) | \n\n | 23,221 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities and shareholders' equity \n | \n\n | $ | \n68,948 | \n\n | $ | \n29,398 | \n\n | $ | \n29,036 | \n\n | $ | \n(27,137 | \n) | \n$ | \n100,245 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING BALANCE SHEET (Unaudited)
\nAt December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Assets \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities, available for sale, at fair value (amortized cost $58,878) \n | \n\n | $ | \n42,289 | \n\n | $ | \n18,323 | \n\n | $ | \n46 | \n\n | $ | \n— | \n\n | $ | \n60,658 | \n\n |
| \n Equity securities, available for sale, at fair value (cost $528) \n | \n\n | \n | 189 | \n\n | \n | 375 | \n\n | \n | 141 | \n\n | \n | — | \n\n | \n | 705 | \n\n |
| \n Real estate investments \n | \n\n | \n | 56 | \n\n | \n | 933 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 989 | \n\n |
| \n Short-term securities \n | \n\n | \n | 1,947 | \n\n | \n | 1,178 | \n\n | \n | 1,546 | \n\n | \n | — | \n\n | \n | 4,671 | \n\n |
| \n Other investments \n | \n\n | \n | 2,516 | \n\n | \n | 930 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 3,447 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total investments \n | \n\n | \n | 46,997 | \n\n | \n | 21,739 | \n\n | \n | 1,734 | \n\n | \n | — | \n\n | \n | 70,470 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash \n | \n\n | \n | 225 | \n\n | \n | 153 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 380 | \n\n |
| \n Investment income accrued \n | \n\n | \n | 453 | \n\n | \n | 185 | \n\n | \n | 4 | \n\n | \n | — | \n\n | \n | 642 | \n\n |
| \n Premiums receivable \n | \n\n | \n | 4,336 | \n\n | \n | 2,101 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 6,437 | \n\n |
| \n Reinsurance recoverables \n | \n\n | \n | 5,849 | \n\n | \n | 3,061 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 8,910 | \n\n |
| \n Ceded unearned premiums \n | \n\n | \n | 610 | \n\n | \n | 46 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 656 | \n\n |
| \n Deferred acquisition costs \n | \n\n | \n | 1,660 | \n\n | \n | 189 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1,849 | \n\n |
| \n Deferred taxes \n | \n\n | \n | 178 | \n\n | \n | 83 | \n\n | \n | 35 | \n\n | \n | — | \n\n | \n | 296 | \n\n |
| \n Contractholder receivables \n | \n\n | \n | 3,387 | \n\n | \n | 987 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,374 | \n\n |
| \n Goodwill \n | \n\n | \n | 2,573 | \n\n | \n | 1,000 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,573 | \n\n |
| \n Other intangible assets \n | \n\n | \n | 203 | \n\n | \n | 76 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 279 | \n\n |
| \n Investment in subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 27,573 | \n\n | \n | (27,573 | \n) | \n\n | — | \n\n |
| \n Other assets \n | \n\n | \n | 1,958 | \n\n | \n | 344 | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 2,318 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total assets \n | \n\n | $ | \n68,429 | \n\n | $ | \n29,964 | \n\n | $ | \n29,364 | \n\n | $ | \n(27,573 | \n) | \n$ | \n100,184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Liabilities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expense reserves \n | \n\n | $ | \n31,965 | \n\n | $ | \n16,330 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n48,295 | \n\n |
| \n Unearned premium reserves \n | \n\n | \n | 8,335 | \n\n | \n | 3,636 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 11,971 | \n\n |
| \n Contractholder payables \n | \n\n | \n | 3,387 | \n\n | \n | 987 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,374 | \n\n |
| \n Payables for reinsurance premiums \n | \n\n | \n | 175 | \n\n | \n | 121 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 296 | \n\n |
| \n Debt \n | \n\n | \n | 693 | \n\n | \n | — | \n\n | \n | 5,651 | \n\n | \n | — | \n\n | \n | 6,344 | \n\n |
| \n Other liabilities \n | \n\n | \n | 3,958 | \n\n | \n | 1,221 | \n\n | \n | 127 | \n\n | \n | — | \n\n | \n | 5,306 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities \n | \n\n | \n | 48,513 | \n\n | \n | 22,295 | \n\n | \n | 5,778 | \n\n | \n | — | \n\n | \n | 76,586 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Shareholders' equity \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Common stock (1,750.0 shares authorized; 295.9 shares issued and outstanding) \n | \n\n | \n | — | \n\n | \n | 390 | \n\n | \n | 22,172 | \n\n | \n | (390 | \n) | \n\n | 22,172 | \n\n |
| \n Additional paid-in capital \n | \n\n | \n | 11,634 | \n\n | \n | 6,499 | \n\n | \n | — | \n\n | \n | (18,133 | \n) | \n\n | — | \n\n |
| \n Retained earnings \n | \n\n | \n | 7,888 | \n\n | \n | 688 | \n\n | \n | 29,933 | \n\n | \n | (8,564 | \n) | \n\n | 29,945 | \n\n |
| \n Accumulated other comprehensive income (loss) \n | \n\n | \n | 394 | \n\n | \n | 92 | \n\n | \n | (157 | \n) | \n\n | (486 | \n) | \n\n | (157 | \n) | \n
| \n Treasury stock, at cost (467.6 shares) \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (28,362 | \n) | \n\n | — | \n\n | \n | (28,362 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total shareholders' equity \n | \n\n | \n | 19,916 | \n\n | \n | 7,669 | \n\n | \n | 23,586 | \n\n | \n | (27,573 | \n) | \n\n | 23,598 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities and shareholders' equity \n | \n\n | $ | \n68,429 | \n\n | $ | \n29,964 | \n\n | $ | \n29,364 | \n\n | $ | \n(27,573 | \n) | \n$ | \n100,184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
\nFor the year ended December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Cash flows from operating activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income \n | \n\n | $ | \n2,184 | \n\n | $ | \n970 | \n\n | $ | \n3,014 | \n\n | $ | \n(3,154 | \n) | \n$ | \n3,014 | \n\n |
| \n Net adjustments to reconcile net income to net cash provided by operating activities \n | \n\n | \n | 1,085 | \n\n | \n | 66 | \n\n | \n | (119 | \n) | \n\n | 156 | \n\n | \n | 1,188 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by operating activities \n | \n\n | \n | 3,269 | \n\n | \n | 1,036 | \n\n | \n | 2,895 | \n\n | \n | (2,998 | \n) | \n\n | 4,202 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from investing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Proceeds from maturities of fixed maturities \n | \n\n | \n | 6,589 | \n\n | \n | 2,380 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 8,975 | \n\n |
| \n Proceeds from sales of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | 768 | \n\n | \n | 647 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 1,417 | \n\n |
| \n Equity securities \n | \n\n | \n | 47 | \n\n | \n | 45 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 92 | \n\n |
| \n Real estate investments \n | \n\n | \n | — | \n\n | \n | 69 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 69 | \n\n |
| \n Other investments \n | \n\n | \n | 586 | \n\n | \n | 253 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 839 | \n\n |
| \n Purchases of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | (7,921 | \n) | \n\n | (3,676 | \n) | \n\n | (12 | \n) | \n\n | — | \n\n | \n | (11,609 | \n) | \n
| \n Equity securities \n | \n\n | \n | (6 | \n) | \n\n | (42 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | (51 | \n) | \n
| \n Real estate investments \n | \n\n | \n | (1 | \n) | \n\n | (47 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (48 | \n) | \n
| \n Other investments \n | \n\n | \n | (453 | \n) | \n\n | (127 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (580 | \n) | \n
| \n Net sales (purchases) of short-term securities \n | \n\n | \n | (501 | \n) | \n\n | 383 | \n\n | \n | (81 | \n) | \n\n | — | \n\n | \n | (199 | \n) | \n
| \n Securities transactions in course of settlement \n | \n\n | \n | 12 | \n\n | \n | (32 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | (21 | \n) | \n
| \n Other \n | \n\n | \n | (334 | \n) | \n\n | (10 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (344 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in investing activities \n | \n\n | \n | (1,214 | \n) | \n\n | (157 | \n) | \n\n | (89 | \n) | \n\n | — | \n\n | \n | (1,460 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from financing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Treasury stock acquired—share repurchase authorization \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (2,400 | \n) | \n\n | — | \n\n | \n | (2,400 | \n) | \n
| \n Treasury stock acquired—net employee share-based compensation \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (72 | \n) | \n\n | — | \n\n | \n | (72 | \n) | \n
| \n Dividends paid to shareholders \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (757 | \n) | \n\n | — | \n\n | \n | (757 | \n) | \n
| \n Payment of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (400 | \n) | \n\n | — | \n\n | \n | (400 | \n) | \n
| \n Issuance of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 491 | \n\n | \n | — | \n\n | \n | 491 | \n\n |
| \n Issuance of common stock—employee share options \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 332 | \n\n | \n | — | \n\n | \n | 332 | \n\n |
| \n Dividends paid to parent company \n | \n\n | \n | (2,140 | \n) | \n\n | (858 | \n) | \n\n | — | \n\n | \n | 2,998 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in financing activities \n | \n\n | \n | (2,140 | \n) | \n\n | (858 | \n) | \n\n | (2,806 | \n) | \n\n | 2,998 | \n\n | \n | (2,806 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effect of exchange rate changes on cash \n | \n\n | \n | 1 | \n\n | \n | (10 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (9 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net increase (decrease) in cash \n | \n\n | \n | (84 | \n) | \n\n | 11 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (73 | \n) | \n
| \n Cash at beginning of year \n | \n\n | \n | 225 | \n\n | \n | 153 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 380 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash at end of year \n | \n\n | $ | \n141 | \n\n | $ | \n164 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n307 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Supplemental disclosure of cash flow information \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Income taxes paid (received) \n | \n\n | $ | \n737 | \n\n | $ | \n287 | \n\n | $ | \n(132 | \n) | \n$ | \n— | \n\n | $ | \n892 | \n\n |
| \n Interest paid \n | \n\n | $ | \n47 | \n\n | $ | \n— | \n\n | $ | \n311 | \n\n | $ | \n— | \n\n | $ | \n358 | \n\n |
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
\nFor the year ended December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Cash flows from operating activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income \n | \n\n | $ | \n2,666 | \n\n | $ | \n998 | \n\n | $ | \n3,439 | \n\n | $ | \n(3,664 | \n) | \n$ | \n3,439 | \n\n |
| \n Net adjustments to reconcile net income to net cash provided by operating activities \n | \n\n | \n | (577 | \n) | \n\n | 414 | \n\n | \n | 330 | \n\n | \n | (172 | \n) | \n\n | (5 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by operating activities \n | \n\n | \n | 2,089 | \n\n | \n | 1,412 | \n\n | \n | 3,769 | \n\n | \n | (3,836 | \n) | \n\n | 3,434 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from investing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Proceeds from maturities of fixed maturities \n | \n\n | \n | 7,543 | \n\n | \n | 3,563 | \n\n | \n | 10 | \n\n | \n | — | \n\n | \n | 11,116 | \n\n |
| \n Proceeds from sales of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | 1,227 | \n\n | \n | 723 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1,950 | \n\n |
| \n Equity securities \n | \n\n | \n | 25 | \n\n | \n | 34 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 59 | \n\n |
| \n Real estate investments \n | \n\n | \n | — | \n\n | \n | 31 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 31 | \n\n |
| \n Other investments \n | \n\n | \n | 503 | \n\n | \n | 210 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 713 | \n\n |
| \n Purchases of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | (8,276 | \n) | \n\n | (3,787 | \n) | \n\n | (27 | \n) | \n\n | — | \n\n | \n | (12,090 | \n) | \n
| \n Equity securities \n | \n\n | \n | (3 | \n) | \n\n | (43 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | (49 | \n) | \n
| \n Real estate investments \n | \n\n | \n | (1 | \n) | \n\n | (122 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (123 | \n) | \n
| \n Other investments \n | \n\n | \n | (423 | \n) | \n\n | (111 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (534 | \n) | \n
| \n Net sales (purchases) of short-term securities \n | \n\n | \n | 179 | \n\n | \n | (489 | \n) | \n\n | (16 | \n) | \n\n | — | \n\n | \n | (326 | \n) | \n
| \n Securities transactions in course of settlement \n | \n\n | \n | (52 | \n) | \n\n | (61 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (113 | \n) | \n
| \n Acquisition, net of cash acquired \n | \n\n | \n | (13 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (13 | \n) | \n
| \n Other \n | \n\n | \n | (343 | \n) | \n\n | 39 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (304 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by (used in) investing activities \n | \n\n | \n | 366 | \n\n | \n | (13 | \n) | \n\n | (36 | \n) | \n\n | — | \n\n | \n | 317 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from financing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Treasury stock acquired—share repurchase authorization \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3,150 | \n) | \n\n | — | \n\n | \n | (3,150 | \n) | \n
| \n Treasury stock acquired—net employee share-based compensation \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (74 | \n) | \n\n | — | \n\n | \n | (74 | \n) | \n
| \n Dividends paid to shareholders \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (739 | \n) | \n\n | — | \n\n | \n | (739 | \n) | \n
| \n Payment of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (400 | \n) | \n\n | — | \n\n | \n | (400 | \n) | \n
| \n Issuance of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 392 | \n\n | \n | — | \n\n | \n | 392 | \n\n |
| \n Issuance of common stock—employee share options \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 183 | \n\n | \n | — | \n\n | \n | 183 | \n\n |
| \n Excess tax benefits from share-based payment arrangements \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 55 | \n\n | \n | — | \n\n | \n | 55 | \n\n |
| \n Dividends paid to parent company \n | \n\n | \n | (2,450 | \n) | \n\n | (1,383 | \n) | \n\n | — | \n\n | \n | 3,833 | \n\n | \n | — | \n\n |
| \n Capital contributions, loans and other transactions between subsidiaries \n | \n\n | \n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in financing activities \n | \n\n | \n | (2,450 | \n) | \n\n | (1,386 | \n) | \n\n | (3,733 | \n) | \n\n | 3,836 | \n\n | \n | (3,733 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effect of exchange rate changes on cash \n | \n\n | \n | (1 | \n) | \n\n | (11 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (12 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net increase in cash \n | \n\n | \n | 4 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 6 | \n\n |
| \n Cash at beginning of year \n | \n\n | \n | 221 | \n\n | \n | 151 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 374 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash at end of year \n | \n\n | $ | \n225 | \n\n | $ | \n153 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n380 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Supplemental disclosure of cash flow information \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Income taxes paid (received) \n | \n\n | $ | \n1,032 | \n\n | $ | \n384 | \n\n | $ | \n(209 | \n) | \n$ | \n— | \n\n | $ | \n1,207 | \n\n |
| \n Interest paid \n | \n\n | $ | \n47 | \n\n | $ | \n— | \n\n | $ | \n318 | \n\n | $ | \n— | \n\n | $ | \n365 | \n\n |
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
\nFor the year ended December 31, 2014
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Cash flows from operating activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income \n | \n\n | $ | \n2,780 | \n\n | $ | \n1,124 | \n\n | $ | \n3,692 | \n\n | $ | \n(3,904 | \n) | \n$ | \n3,692 | \n\n |
| \n Net adjustments to reconcile net income to net cash provided by operating activities \n | \n\n | \n | 343 | \n\n | \n | (293 | \n) | \n\n | 118 | \n\n | \n | (167 | \n) | \n\n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by operating activities \n | \n\n | \n | 3,123 | \n\n | \n | 831 | \n\n | \n | 3,810 | \n\n | \n | (4,071 | \n) | \n\n | 3,693 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from investing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Proceeds from maturities of fixed maturities \n | \n\n | \n | 6,625 | \n\n | \n | 4,258 | \n\n | \n | 11 | \n\n | \n | — | \n\n | \n | 10,894 | \n\n |
| \n Proceeds from sales of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | 595 | \n\n | \n | 453 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 1,049 | \n\n |
| \n Equity securities \n | \n\n | \n | 111 | \n\n | \n | 43 | \n\n | \n | 4 | \n\n | \n | — | \n\n | \n | 158 | \n\n |
| \n Real estate investments \n | \n\n | \n | 1 | \n\n | \n | 14 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 15 | \n\n |
| \n Other investments \n | \n\n | \n | 477 | \n\n | \n | 378 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 855 | \n\n |
| \n Purchases of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | (6,856 | \n) | \n\n | (4,465 | \n) | \n\n | (4 | \n) | \n\n | — | \n\n | \n | (11,325 | \n) | \n
| \n Equity securities \n | \n\n | \n | (3 | \n) | \n\n | (42 | \n) | \n\n | (7 | \n) | \n\n | — | \n\n | \n | (52 | \n) | \n
| \n Real estate investments \n | \n\n | \n | (22 | \n) | \n\n | (26 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (48 | \n) | \n
| \n Other investments \n | \n\n | \n | (405 | \n) | \n\n | (149 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (554 | \n) | \n
| \n Net purchases of short-term securities \n | \n\n | \n | (268 | \n) | \n\n | (223 | \n) | \n\n | (7 | \n) | \n\n | — | \n\n | \n | (498 | \n) | \n
| \n Securities transactions in course of settlement \n | \n\n | \n | 44 | \n\n | \n | 38 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 82 | \n\n |
| \n Acquisition, net of cash acquired \n | \n\n | \n | (9 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | \n | \n | \n | (12 | \n) | \n
| \n Other \n | \n\n | \n | (350 | \n) | \n\n | (8 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (358 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by (used in) investing activities \n | \n\n | \n | (60 | \n) | \n\n | 268 | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | 206 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from financing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Treasury stock acquired—share repurchase authorization \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3,275 | \n) | \n\n | — | \n\n | \n | (3,275 | \n) | \n
| \n Treasury stock acquired—net employee share-based compensation \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (57 | \n) | \n\n | — | \n\n | \n | (57 | \n) | \n
| \n Dividends paid to shareholders \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (729 | \n) | \n\n | — | \n\n | \n | (729 | \n) | \n
| \n Issuance of common stock—employee share options \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 195 | \n\n | \n | — | \n\n | \n | 195 | \n\n |
| \n Excess tax benefits from share-based payment arrangements \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 57 | \n\n | \n | — | \n\n | \n | 57 | \n\n |
| \n Dividends paid to parent company \n | \n\n | \n | (2,978 | \n) | \n\n | (1,093 | \n) | \n\n | — | \n\n | \n | 4,071 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in financing activities \n | \n\n | \n | (2,978 | \n) | \n\n | (1,093 | \n) | \n\n | (3,809 | \n) | \n\n | 4,071 | \n\n | \n | (3,809 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effect of exchange rate changes on cash \n | \n\n | \n | (1 | \n) | \n\n | (9 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (10 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net increase (decrease) in cash \n | \n\n | \n | 84 | \n\n | \n | (3 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | 80 | \n\n |
| \n Cash at beginning of year \n | \n\n | \n | 137 | \n\n | \n | 154 | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | 294 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash at end of year \n | \n\n | $ | \n221 | \n\n | $ | \n151 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n374 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Supplemental disclosure of cash flow information \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Income taxes paid (received) \n | \n\n | $ | \n947 | \n\n | $ | \n336 | \n\n | $ | \n(136 | \n) | \n$ | \n— | \n\n | $ | \n1,147 | \n\n |
| \n Interest paid \n | \n\n | $ | \n47 | \n\n | $ | \n— | \n\n | $ | \n318 | \n\n | $ | \n— | \n\n | $ | \n365 | \n\n |
19. SELECTED QUARTERLY FINANCIAL DATA (Unaudited)
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2016 (in millions, except per share amounts) \n | \n\n | First \nQuarter | \n\n | Second \nQuarter | \n\n | Third \nQuarter | \n\n | Fourth \nQuarter | \n\n | Total | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total revenues \n | \n\n | $ | \n6,686 | \n\n | $ | \n6,785 | \n\n | $ | \n6,961 | \n\n | $ | \n7,193 | \n\n | $ | \n27,625 | \n\n |
| \n Total expenses \n | \n\n | \n | 5,769 | \n\n | \n | 5,898 | \n\n | \n | 6,014 | \n\n | \n | 5,891 | \n\n | \n | 23,572 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income before income taxes \n | \n\n | \n | 917 | \n\n | \n | 887 | \n\n | \n | 947 | \n\n | \n | 1,302 | \n\n | \n | 4,053 | \n\n |
| \n Income tax expense \n | \n\n | \n | 226 | \n\n | \n | 223 | \n\n | \n | 231 | \n\n | \n | 359 | \n\n | \n | 1,039 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n691 | \n\n | $ | \n664 | \n\n | $ | \n716 | \n\n | $ | \n943 | \n\n | $ | \n3,014 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income per share(1): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | $ | \n2.33 | \n\n | $ | \n2.27 | \n\n | $ | \n2.48 | \n\n | $ | \n3.32 | \n\n | $ | \n10.39 | \n\n |
| \n Diluted \n | \n\n | \n | 2.30 | \n\n | \n | 2.24 | \n\n | \n | 2.45 | \n\n | \n | 3.28 | \n\n | \n | 10.28 | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2015 (in millions, except per share amounts) \n | \n\n | First \nQuarter | \n\n | Second \nQuarter | \n\n | Third \nQuarter | \n\n | Fourth \nQuarter | \n\n | Total | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total revenues \n | \n\n | $ | \n6,629 | \n\n | $ | \n6,710 | \n\n | $ | \n6,798 | \n\n | $ | \n6,678 | \n\n | $ | \n26,815 | \n\n |
| \n Total expenses \n | \n\n | \n | 5,481 | \n\n | \n | 5,634 | \n\n | \n | 5,491 | \n\n | \n | 5,469 | \n\n | \n | 22,075 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income before income taxes \n | \n\n | \n | 1,148 | \n\n | \n | 1,076 | \n\n | \n | 1,307 | \n\n | \n | 1,209 | \n\n | \n | 4,740 | \n\n |
| \n Income tax expense \n | \n\n | \n | 315 | \n\n | \n | 264 | \n\n | \n | 379 | \n\n | \n | 343 | \n\n | \n | 1,301 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n833 | \n\n | $ | \n812 | \n\n | $ | \n928 | \n\n | $ | \n866 | \n\n | $ | \n3,439 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income per share(1): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | $ | \n2.58 | \n\n | $ | \n2.56 | \n\n | $ | \n3.00 | \n\n | $ | \n2.87 | \n\n | $ | \n10.99 | \n\n |
| \n Diluted \n | \n\n | \n | 2.55 | \n\n | \n | 2.53 | \n\n | \n | 2.97 | \n\n | \n | 2.83 | \n\n | \n | 10.88 | \n\n |
SCHEDULE II
\nTHE TRAVELERS COMPANIES, INC.
\n(Parent Company Only)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
\n(in millions)
CONDENSED STATEMENT OF INCOME
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n For the year ended December 31, \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenues \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net investment income \n | \n\n | $ | \n13 | \n\n | $ | \n7 | \n\n | $ | \n6 | \n\n |
| \n Net realized investment gains (losses)(1) \n | \n\n | \n | (1 | \n) | \n\n | 1 | \n\n | \n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | \n | 12 | \n\n | \n | 8 | \n\n | \n | 9 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Expenses \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Interest \n | \n\n | \n | 315 | \n\n | \n | 325 | \n\n | \n | 321 | \n\n |
| \n Other \n | \n\n | \n | 5 | \n\n | \n | 16 | \n\n | \n | 15 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total expenses \n | \n\n | \n | 320 | \n\n | \n | 341 | \n\n | \n | 336 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Loss before income taxes and net income of subsidiaries \n | \n\n | \n | (308 | \n) | \n\n | (333 | \n) | \n\n | (327 | \n) | \n
| \n Income tax benefit \n | \n\n | \n | (168 | \n) | \n\n | (108 | \n) | \n\n | (115 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Loss before net income of subsidiaries \n | \n\n | \n | (140 | \n) | \n\n | (225 | \n) | \n\n | (212 | \n) | \n
| \n Net income of subsidiaries \n | \n\n | \n | 3,154 | \n\n | \n | 3,664 | \n\n | \n | 3,904 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n3,014 | \n\n | $ | \n3,439 | \n\n | $ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto.
\nSCHEDULE II
\nTHE TRAVELERS COMPANIES, INC.
\n(Parent Company Only)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
\n(in millions)
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n For the year ended December 31, \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Consolidated net income \n | \n\n | $ | \n3,014 | \n\n | $ | \n3,439 | \n\n | $ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss)—parent company: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Changes in net unrealized gains on investment securities having no credit losses recognized in the consolidated statement of income \n | \n\n | \n | 11 | \n\n | \n | (3 | \n) | \n\n | 6 | \n\n |
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | (20 | \n) | \n\n | 64 | \n\n | \n | (471 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss) before income taxes and other comprehensive income (loss) of subsidiaries \n | \n\n | \n | (9 | \n) | \n\n | 61 | \n\n | \n | (465 | \n) | \n
| \n Income tax expense (benefit) \n | \n\n | \n | (1 | \n) | \n\n | 21 | \n\n | \n | (163 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss), net of taxes, before other comprehensive income (loss) of subsidiaries \n | \n\n | \n | (8 | \n) | \n\n | 40 | \n\n | \n | (302 | \n) | \n
| \n Other comprehensive income (loss) of subsidiaries \n | \n\n | \n | (590 | \n) | \n\n | (1,077 | \n) | \n\n | 372 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Consolidated other comprehensive income (loss) \n | \n\n | \n | (598 | \n) | \n\n | (1,037 | \n) | \n\n | 70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Consolidated comprehensive income \n | \n\n | $ | \n2,416 | \n\n | $ | \n2,402 | \n\n | $ | \n3,762 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto.
\nSCHEDULE II
\nTHE TRAVELERS COMPANIES, INC.
\n(Parent Company Only)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
\n(in millions)
CONDENSED BALANCE SHEET
\n\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n At December 31, \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Assets \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | $ | \n49 | \n\n | $ | \n46 | \n\n |
| \n Equity securities \n | \n\n | \n | 155 | \n\n | \n | 141 | \n\n |
| \n Short-term securities \n | \n\n | \n | 1,627 | \n\n | \n | 1,546 | \n\n |
| \n Investment in subsidiaries \n | \n\n | \n | 27,137 | \n\n | \n | 27,573 | \n\n |
| \n Other assets \n | \n\n | \n | 68 | \n\n | \n | 58 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total assets \n | \n\n | $ | \n29,036 | \n\n | $ | \n29,364 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Liabilities \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Debt \n | \n\n | $ | \n5,744 | \n\n | $ | \n5,651 | \n\n |
| \n Other liabilities \n | \n\n | \n | 82 | \n\n | \n | 127 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities \n | \n\n | \n | 5,826 | \n\n | \n | 5,778 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Shareholders' equity \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Common stock (1,750.0 shares authorized, 279.6 and 295.9 shares issued and outstanding) \n | \n\n | \n | 22,614 | \n\n | \n | 22,172 | \n\n |
| \n Retained earnings \n | \n\n | \n | 32,185 | \n\n | \n | 29,933 | \n\n |
| \n Accumulated other comprehensive loss \n | \n\n | \n | (755 | \n) | \n\n | (157 | \n) | \n
| \n Treasury stock, at cost (489.5 and 467.6 shares) \n | \n\n | \n | (30,834 | \n) | \n\n | (28,362 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total shareholders' equity \n | \n\n | \n | 23,210 | \n\n | \n | 23,586 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities and shareholders' equity \n | \n\n | $ | \n29,036 | \n\n | $ | \n29,364 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto.
\nSCHEDULE II
\nTHE TRAVELERS COMPANIES, INC.
\n(Parent Company Only)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
\n(in millions)
CONDENSED STATEMENT OF CASH FLOWS
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n For the year ended December 31, \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Cash flows from operating activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income \n | \n\n | $ | \n3,014 | \n\n | $ | \n3,439 | \n\n | $ | \n3,692 | \n\n |
| \n Adjustments to reconcile net income to net cash provided by operating activities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Equity in net income of subsidiaries \n | \n\n | \n | (3,154 | \n) | \n\n | (3,664 | \n) | \n\n | (3,904 | \n) | \n
| \n Dividends received from consolidated subsidiaries \n | \n\n | \n | 2,998 | \n\n | \n | 3,833 | \n\n | \n | 4,071 | \n\n |
| \n Capital received from subsidiaries \n | \n\n | \n | — | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| \n Deferred federal income tax expense (benefit) \n | \n\n | \n | 12 | \n\n | \n | (6 | \n) | \n\n | 51 | \n\n |
| \n Change in income taxes payable \n | \n\n | \n | (48 | \n) | \n\n | 51 | \n\n | \n | (87 | \n) | \n
| \n Other \n | \n\n | \n | 73 | \n\n | \n | 113 | \n\n | \n | (13 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by operating activities \n | \n\n | \n | 2,895 | \n\n | \n | 3,769 | \n\n | \n | 3,810 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from investing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net purchases of short-term securities \n | \n\n | \n | (81 | \n) | \n\n | (16 | \n) | \n\n | (7 | \n) | \n
| \n Other investments, net \n | \n\n | \n | (8 | \n) | \n\n | (20 | \n) | \n\n | 5 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in investing activities \n | \n\n | \n | (89 | \n) | \n\n | (36 | \n) | \n\n | (2 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from financing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Treasury stock acquired—share repurchase authorization \n | \n\n | \n | (2,400 | \n) | \n\n | (3,150 | \n) | \n\n | (3,275 | \n) | \n
| \n Treasury stock acquired—net employee share-based compensation \n | \n\n | \n | (72 | \n) | \n\n | (74 | \n) | \n\n | (57 | \n) | \n
| \n Dividends paid to shareholders \n | \n\n | \n | (757 | \n) | \n\n | (739 | \n) | \n\n | (729 | \n) | \n
| \n Payment of debt \n | \n\n | \n | (400 | \n) | \n\n | (400 | \n) | \n\n | — | \n\n |
| \n Issuance of debt \n | \n\n | \n | 491 | \n\n | \n | 392 | \n\n | \n | — | \n\n |
| \n Issuance of common stock—employee share options \n | \n\n | \n | 332 | \n\n | \n | 183 | \n\n | \n | 195 | \n\n |
| \n Other \n | \n\n | \n | — | \n\n | \n | 55 | \n\n | \n | 57 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in financing activities \n | \n\n | \n | (2,806 | \n) | \n\n | (3,733 | \n) | \n\n | (3,809 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net decrease in cash \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (1 | \n) | \n
| \n Cash at beginning of year \n | \n\n | \n | 2 | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash at end of year \n | \n\n | $ | \n2 | \n\n | $ | \n2 | \n\n | $ | \n2 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Supplemental disclosure of cash flow information \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Cash received during the year for taxes \n | \n\n | $ | \n132 | \n\n | $ | \n209 | \n\n | $ | \n136 | \n\n |
| \n Cash paid during the year for interest \n | \n\n | $ | \n311 | \n\n | $ | \n318 | \n\n | $ | \n318 | \n\n |
The condensed financial statements should be read in conjunction with the notes to the condensed financial information of the registrant, as well as the consolidated financial statements and notes thereto.
\nSCHEDULE II
\nTHE TRAVELERS COMPANIES, INC.
\n(Parent Company Only)
NOTES TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT
\n1. GUARANTEES
\nThe Travelers Companies, Inc. (TRV) fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033.
\nTRV also has contingent obligations for guarantees in connection with the selling of businesses to third parties and various indemnifications including indemnifications to service providers in the normal course of business. The guarantees and indemnification clauses are often standard contractual terms and include indemnifications for breaches of representations and warranties and in some cases obligations arising from certain liabilities. The terms of these provisions vary in duration and nature. Certain of the guarantees and indemnifications described above have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, TRV is unable to provide an estimate of the maximum potential payments for such arrangements.
\nSCHEDULE III
\nTHE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
\nSupplementary Insurance Information
\n2014-2016
\n(in millions)
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Segment \n | \n\n | Deferred \nAcquisition \nCosts | \n\n | Claims and \nClaim \nAdjustment \nExpense \nReserves | \n\n | Unearned \nPremiums | \n\n | Earned \nPremiums | \n\n | Net \nInvestment \nIncome(1) | \n\n | Claims and \nClaim \nAdjustment \nExpenses | \n\n | Amortization \nof Deferred \nAcquisition \nCosts | \n\n | Other \nOperating \nExpenses(2) | \n\n | Net \nWritten \nPremiums | \n\n | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Business and International Insurance \n | \n\n | $ | \n1,093 | \n\n | $ | \n41,006 | \n\n | $ | \n7,134 | \n\n | $ | \n14,620 | \n\n | $ | \n1,763 | \n\n | $ | \n9,190 | \n\n | $ | \n2,358 | \n\n | $ | \n2,746 | \n\n | $ | \n14,675 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | 232 | \n\n | \n | 2,944 | \n\n | \n | 1,308 | \n\n | \n | 2,088 | \n\n | \n | 210 | \n\n | \n | 572 | \n\n | \n | 397 | \n\n | \n | 389 | \n\n | \n | 2,099 | \n\n |
| \n Personal Insurance \n | \n\n | \n | 598 | \n\n | \n | 3,979 | \n\n | \n | 3,887 | \n\n | \n | 7,826 | \n\n | \n | 329 | \n\n | \n | 5,308 | \n\n | \n | 1,230 | \n\n | \n | 988 | \n\n | \n | 8,184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total—Reportable Segments \n | \n\n | \n | 1,923 | \n\n | \n | 47,929 | \n\n | \n | 12,329 | \n\n | \n | 24,534 | \n\n | \n | 2,302 | \n\n | \n | 15,070 | \n\n | \n | 3,985 | \n\n | \n | 4,123 | \n\n | \n | 24,958 | \n\n |
| \n Other \n | \n\n | \n | — | \n\n | \n | 20 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 394 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Consolidated \n | \n\n | $ | \n1,923 | \n\n | $ | \n47,949 | \n\n | $ | \n12,329 | \n\n | $ | \n24,534 | \n\n | $ | \n2,302 | \n\n | $ | \n15,070 | \n\n | $ | \n3,985 | \n\n | $ | \n4,517 | \n\n | $ | \n24,958 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Business and International Insurance \n | \n\n | $ | \n1,072 | \n\n | $ | \n41,563 | \n\n | $ | \n7,147 | \n\n | $ | \n14,521 | \n\n | $ | \n1,824 | \n\n | $ | \n8,859 | \n\n | $ | \n2,329 | \n\n | $ | \n2,686 | \n\n | $ | \n14,583 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | 225 | \n\n | \n | 3,157 | \n\n | \n | 1,292 | \n\n | \n | 2,085 | \n\n | \n | 223 | \n\n | \n | 643 | \n\n | \n | 393 | \n\n | \n | 389 | \n\n | \n | 2,081 | \n\n |
| \n Personal Insurance \n | \n\n | \n | 552 | \n\n | \n | 3,552 | \n\n | \n | 3,532 | \n\n | \n | 7,268 | \n\n | \n | 332 | \n\n | \n | 4,221 | \n\n | \n | 1,163 | \n\n | \n | 988 | \n\n | \n | 7,457 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total—Reportable Segments \n | \n\n | \n | 1,849 | \n\n | \n | 48,272 | \n\n | \n | 11,971 | \n\n | \n | 23,874 | \n\n | \n | 2,379 | \n\n | \n | 13,723 | \n\n | \n | 3,885 | \n\n | \n | 4,063 | \n\n | \n | 24,121 | \n\n |
| \n Other \n | \n\n | \n | — | \n\n | \n | 23 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 404 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Consolidated \n | \n\n | $ | \n1,849 | \n\n | $ | \n48,295 | \n\n | $ | \n11,971 | \n\n | $ | \n23,874 | \n\n | $ | \n2,379 | \n\n | $ | \n13,723 | \n\n | $ | \n3,885 | \n\n | $ | \n4,467 | \n\n | $ | \n24,121 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Business and International Insurance \n | \n\n | $ | \n1,080 | \n\n | $ | \n42,700 | \n\n | $ | \n7,208 | \n\n | $ | \n14,512 | \n\n | $ | \n2,156 | \n\n | $ | \n9,145 | \n\n | $ | \n2,321 | \n\n | $ | \n2,541 | \n\n | $ | \n14,636 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | 222 | \n\n | \n | 3,435 | \n\n | \n | 1,286 | \n\n | \n | 2,076 | \n\n | \n | 252 | \n\n | \n | 481 | \n\n | \n | 388 | \n\n | \n | 403 | \n\n | \n | 2,103 | \n\n |
| \n Personal Insurance \n | \n\n | \n | 533 | \n\n | \n | 3,689 | \n\n | \n | 3,345 | \n\n | \n | 7,125 | \n\n | \n | 379 | \n\n | \n | 4,244 | \n\n | \n | 1,173 | \n\n | \n | 989 | \n\n | \n | 7,165 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total—Reportable Segments \n | \n\n | \n | 1,835 | \n\n | \n | 49,824 | \n\n | \n | 11,839 | \n\n | \n | 23,713 | \n\n | \n | 2,787 | \n\n | \n | 13,870 | \n\n | \n | 3,882 | \n\n | \n | 3,933 | \n\n | \n | 23,904 | \n\n |
| \n Other \n | \n\n | \n | — | \n\n | \n | 26 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 400 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Consolidated \n | \n\n | $ | \n1,835 | \n\n | $ | \n49,850 | \n\n | $ | \n11,839 | \n\n | $ | \n23,713 | \n\n | $ | \n2,787 | \n\n | $ | \n13,870 | \n\n | $ | \n3,882 | \n\n | $ | \n4,333 | \n\n | $ | \n23,904 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
SCHEDULE V
\nTHE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
\nValuation and Qualifying Accounts
\n(in millions)
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Balance at \nbeginning of \nperiod | \n\n | Charged to \ncosts and \nexpenses | \n\n | Charged to \nother \naccounts | \n\n | Deductions(1) | \n\n | Balance \nat end of \nperiod | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Reinsurance recoverables \n | \n\n | $ | \n157 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n41 | \n\n | $ | \n116 | \n\n |
| \n Allowance for uncollectible: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums receivable from underwriting activities \n | \n\n | $ | \n65 | \n\n | $ | \n35 | \n\n | $ | \n— | \n\n | $ | \n39 | \n\n | $ | \n61 | \n\n |
| \n Deductibles \n | \n\n | $ | \n35 | \n\n | $ | \n5 | \n\n | $ | \n— | \n\n | $ | \n6 | \n\n | $ | \n34 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Reinsurance recoverables \n | \n\n | $ | \n203 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n46 | \n\n | $ | \n157 | \n\n |
| \n Allowance for uncollectible: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums receivable from underwriting activities \n | \n\n | $ | \n70 | \n\n | $ | \n38 | \n\n | $ | \n— | \n\n | $ | \n43 | \n\n | $ | \n65 | \n\n |
| \n Deductibles \n | \n\n | $ | \n36 | \n\n | $ | \n3 | \n\n | $ | \n— | \n\n | $ | \n4 | \n\n | $ | \n35 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Reinsurance recoverables \n | \n\n | $ | \n239 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n36 | \n\n | $ | \n203 | \n\n |
| \n Allowance for uncollectible: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums receivable from underwriting activities \n | \n\n | $ | \n75 | \n\n | $ | \n44 | \n\n | $ | \n— | \n\n | $ | \n49 | \n\n | $ | \n70 | \n\n |
| \n Deductibles \n | \n\n | $ | \n39 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n3 | \n\n | $ | \n36 | \n\n |
\n
SCHEDULE VI
\nTHE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
\nSupplementary Information Concerning Property-Casualty Insurance Operations(1)
\n2014-2016
\n(in millions)
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | Claims and \nClaim \nAdjustment \nExpenses \nIncurred \nRelated to: | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | Paid \nClaims \nand \nClaim \nAdjustment \nExpenses | \n\n | | \n\n | |||||||||||||||
| | \n\n | | \n\n | | \n\n | Discount From \nReserves for \nUnpaid \nClaims(3) | \n\n | | \n\n | | \n\n | | \n\n | Amortization \nof Deferred \nAcquisition \nCosts | \n\n | | \n\n | |||||||||||||||||
| \n Affiliation with Registrant(2) \n | \n\n | Deferred \nAcquisition \nCosts | \n\n | Claims and \nClaim Adjustment \nExpense Reserves | \n\n | Unearned \nPremiums | \n\n | Earned \nPremiums | \n\n | Net \nInvestment \nIncome | \n\n | Current \nYear | \n\n | Prior \nYear | \n\n | Net \nWritten \nPremiums | \n\n | |||||||||||||||||
| \n 2016 \n | \n\n | $ | \n1,923 | \n\n | $ | \n47,929 | \n\n | $ | \n1,083 | \n\n | $ | \n12,329 | \n\n | $ | \n24,534 | \n\n | $ | \n2,302 | \n\n | $ | \n15,675 | \n\n | $ | \n(680 | \n) | \n$ | \n3,985 | \n\n | $ | \n14,796 | \n\n | $ | \n24,958 | \n\n |
| \n 2015 \n | \n\n | $ | \n1,849 | \n\n | $ | \n48,272 | \n\n | $ | \n1,066 | \n\n | $ | \n11,971 | \n\n | $ | \n23,874 | \n\n | $ | \n2,379 | \n\n | $ | \n14,471 | \n\n | $ | \n(817 | \n) | \n$ | \n3,885 | \n\n | $ | \n14,474 | \n\n | $ | \n24,121 | \n\n |
| \n 2014 \n | \n\n | $ | \n1,835 | \n\n | $ | \n49,824 | \n\n | $ | \n1,080 | \n\n | $ | \n11,839 | \n\n | $ | \n23,713 | \n\n | $ | \n2,787 | \n\n | $ | \n14,688 | \n\n | $ | \n(885 | \n) | \n$ | \n3,882 | \n\n | $ | \n14,066 | \n\n | $ | \n23,904 | \n\n |
Basis of Presentation
\nThe consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. Certain reclassifications have been made to the 2015 and 2014 financial statements to conform to the 2016 presentation. All material intercompany transactions and balances have been eliminated.
\nAdoption of Accounting Standards
\nCompensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period
\nIn June 2014, the Financial Accounting Standards Board (FASB) issued updated guidance to resolve diversity in practice concerning employee share-based payments that contain performance targets that could be achieved after the requisite service period. The updated guidance requires that a performance target that affects vesting and that can be achieved after the requisite service period be treated as a performance condition. As such, the performance target that affects vesting should not be reflected in estimating the fair value of the award at the grant date. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which service has been rendered. If the performance target becomes probable of being achieved before the end of the service period, the remaining unrecognized compensation cost for which requisite service has not yet been rendered is recognized prospectively over the remaining service period. The total amount of compensation cost recognized during and after the service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nPresentation of Financial Statements: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern
\nIn August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity's ability to continue as a going concern and when an entity must disclose certain relevant conditions and events. The new guidance requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). The new guidance allows the entity to consider the mitigating effects of management's plans that will alleviate the substantial doubt and requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans. If conditions or events raise substantial doubt that is not alleviated, an entity should disclose that there is substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations and management's plans that are intended to mitigate those conditions. The updated guidance was effective for annual periods ending after December 15, 2016, and interim and annual periods thereafter. The adoption of this guidance did not have any effect on the Company's results of operations, financial position or liquidity.
\nDerivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity
\nIn November 2014, the FASB issued updated guidance to clarify when the separation of certain embedded derivative features in a hybrid financial instrument that is issued in the form of a share is required. That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract. Specifically, the updated guidance clarifies that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract.
\nFurthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nConsolidation: Amendments to the Consolidation Analysis
\nIn February 2015, the FASB issued updated guidance that makes targeted amendments to the current consolidation accounting guidance. The update is in response to accounting complexity concerns, particularly from the asset management industry. The guidance simplifies consolidation accounting by reducing the number of approaches to consolidation, provides a scope exception to registered money market funds and similar unregistered money market funds and ends the indefinite deferral granted to investment companies from applying the variable interest entity guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nInterest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs
\nIn April 2015, the FASB issued updated guidance to clarify the required presentation of debt issuance costs. The updated guidance requires that debt issuance costs be presented in the balance sheet as a direct reduction from the carrying amount of the recognized debt liability, consistent with the treatment of debt discounts. Amortization of debt issuance costs is to be reported as interest expense. The recognition and measurement guidance for debt issuance costs are not affected by the updated guidance. The updated guidance was effective for reporting periods beginning after December 15, 2015. The updated guidance is consistent with the Company's accounting policy and its adoption did not have any effect on the Company's results of operations, financial position or liquidity.
\nBusiness Combinations: Simplifying the Accounting for Measurement-Period Adjustments
\nIn September 2015, the FASB issued updated guidance regarding business combinations that requires an acquirer to recognize post-close measurement adjustments for provisional amounts in the period the adjustment amounts are determined rather than retrospectively. The acquirer is also required to recognize, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the provisional amount, calculated as if the accounting had been completed at the acquisition date. The updated guidance is to be applied prospectively effective for reporting periods beginning after December 15, 2015. In connection with business combinations which have already been completed, the adoption of this guidance did not have a material effect on the Company's results of operations, financial position or liquidity.
\nCompensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting
\nIn March 2016, the FASB issued updated guidance to simplify several aspects of accounting for share-based payment transactions as follows:
\nAccounting for Income Taxes
\nUnder current accounting guidance, if the deduction for a share-based payment award for tax purposes exceeds, or is less than, the compensation cost recognized for financial reporting purposes, the resulting excess tax benefit, or tax deficiency, is reported as part of additional paid-in capital. Under the updated guidance, these excess tax benefits, or tax deficiencies, are reported as part of income tax expense or benefit in the income statement. The updated guidance also removes the requirement to delay recognition of any excess tax benefit when there are no current taxes payable to which the benefit would be applied. The tax-related cash flows resulting from share-based payments are to be included with other income tax cash flows as an operating activity rather than being reported separately as a financing activity.
\nForfeitures
\nThe updated guidance permits an entity to make an accounting policy election to either account for forfeitures when they occur or continue to apply the current method of accruing the compensation cost based on the number of awards that are expected to vest.
\nMinimum Statutory Tax Withholding Requirements
\nThe updated guidance changes the threshold amount an entity can withhold for taxes when settling an equity award and still qualify for equity classification. A company can withhold up to the maximum statutory tax rates in the employees' applicable jurisdiction rather than withholding up to the employers' minimum statutory withholding requirement. The update also clarifies that all cash payments made to taxing authorities on behalf of employees for withheld shares are to be presented in financing activities on the statement of cash flows.
\nTransition
\nThe updated guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted in any interim period; if early adoption is elected, the entity must adopt all of the amendments in the same reporting period and reflect any adjustments as of the beginning of the fiscal year.
\nThe Company adopted the updated guidance effective January 1, 2016. With respect to the forfeiture accounting policy election, the Company elected to retain its policy of accruing the compensation cost based on the number of awards that are expected to vest. The adoption did not result in any cumulative effect adjustments or restatement and did not have a material effect on the Company's results of operations, financial position or liquidity.
\nInvestments
\nFixed Maturity and Equity Securities
\nFixed maturities include bonds, notes and redeemable preferred stocks. Fixed maturities, including instruments subject to securities lending agreements, are classified as available for sale and are reported at fair value, with unrealized investment gains and losses, net of income taxes, charged or credited directly to other comprehensive income. Equity securities, which include public common and non-redeemable preferred stocks, are classified as available for sale and are reported at fair value with unrealized gains and losses, net of income taxes, charged or credited directly to other comprehensive income.
\nReal Estate Investments
\nThe Company's real estate investments include warehouses, office buildings and other commercial land and properties that are directly owned. Real estate is recorded on the purchase date at the purchase price, which generally represents fair value, and is supported by internal analysis or external appraisals that use discounted cash flow analyses and other acceptable valuation techniques. Real estate held for investment purposes is subsequently carried at cost less accumulated depreciation.
\nBuildings are depreciated on a straight-line basis over the shorter of the expected useful life of the building or 39 years. Real estate held for sale is carried at lower of cost or fair value, less estimated costs to sell.
\nShort-term Securities
\nShort-term securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value.
\nOther Investments
\nInvestments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships
\nThe Company uses the equity method of accounting for investments in private equity limited partnerships, hedge funds and real estate partnerships. The partnerships and the hedge funds generally report investments on their balance sheet at fair value. The financial statements prepared by the investee are received by the Company on a lag basis, with the lag period generally dependent upon the type of underlying investments. The private equity and real estate partnerships provide financial information quarterly which is generally available to investors, including the Company, within three to six months following the date of the reporting period. The hedge funds provide financial information monthly, which is generally available to investors within one month following the date of the reporting period. The Company regularly requests financial information from the partnerships prior to the receipt of the partnerships' financial statements and records any material information obtained from these requests in its consolidated financial statements.
\nOther
\nAlso included in other investments are non-public common equities, preferred equities and derivatives. Non-public common equities and preferred equities are reported at fair value with changes in fair value, net of income taxes, charged or credited directly to other comprehensive income. The Company's derivative financial instruments are carried at fair value, with the changes in fair value reflected in the consolidated statement of income in net realized investment gains (losses). For a further discussion of the derivatives used by the Company, see note 3.
\nNet Investment Income
\nInvestment income from fixed maturities is recognized based on the constant effective yield method which includes an adjustment for estimated principal pre-payments, if any. The effective yield used to determine amortization for fixed maturities subject to prepayment risk (e.g., asset-backed, loan-backed and structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows, which are obtained from a widely-accepted securities data provider. The adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for non-highly rated prepayable fixed maturities are accounted for using the prospective method. Dividends on equity securities (including those with transfer restrictions) are recognized in income when declared. Rental income on real estate is recognized on a straight-line basis over the lease term. See the section titled: Real Estate in note 3 for further discussion. Investments in private equity limited partnerships, hedge funds, real estate partnerships and joint ventures are accounted for using the equity method of accounting, whereby the Company's share of the investee's earnings or losses in the fund is reported in net investment income.
\nAccrual of income is suspended on non-securitized fixed maturities that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only when payments are received. Investments included in the consolidated balance sheet that were not income-producing for the preceding 12 months were not material.
\nFor fixed maturities where the Company records an other-than-temporary impairment, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. For fixed maturities where the Company expects a recovery in value, not necessarily to par, the constant effective yield method is utilized, and the investment is amortized to the expected recovery amount.
\nInvestment Gains and Losses
\nNet realized investment gains and losses are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Included in net realized investment gains (losses) are other-than-temporary impairment losses on invested assets other than those investments accounted for using the equity method of accounting as described in the \"Investment Impairments\" section that follows.
\nInvestment Impairments
\nThe Company conducts a periodic review to identify and evaluate invested assets having other-than-temporary impairments. Some of the factors considered in identifying other-than-temporary impairments include: (1) for fixed maturity investments, whether the Company intends to sell the investment or whether it is more likely than not that the Company will be required to sell the investment prior to an anticipated recovery in value; (2) for non-fixed maturity investments, the Company's ability and intent to retain the investment for a reasonable period of time sufficient to allow for an anticipated recovery in value; (3) the likelihood of the recoverability of principal and interest for fixed maturity securities (i.e., whether there is a credit loss) or cost for equity securities; (4) the length of time and extent to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities; and (5) the financial condition, near-term and long-term prospects for the issuer, including the relevant industry conditions and trends, and implications of rating agency actions and offering prices.
\nOther-Than-Temporary Impairments of Fixed Maturities and Equity Securities
\nFor fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component in net realized investment gains (losses). The impairment related to all other factors is reported in other comprehensive income.
\nFor equity securities (including public common and non-redeemable preferred stock) and for fixed maturity investments the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount of the impairment is included in net realized investment gains (losses).
\nUpon recognizing an other-than-temporary impairment, the new cost basis of the investment is the previous amortized cost basis less the other-than-temporary impairment recognized in net realized investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair value; however, for fixed maturity investments the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining expected life of the investment.
\nDetermination of Credit Loss—Fixed Maturities
\nThe Company determines the credit loss component of fixed maturity investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater than the present value of the expected cash flows, the difference is considered a credit loss and recognized in net realized investment gains (losses).
\nFor non-structured fixed maturities (U.S. Treasury securities, obligations of U.S. government and government agencies and authorities, obligations of states, municipalities and political subdivisions, debt securities issued by foreign governments and certain corporate debt), the estimate of expected cash flows is determined by projecting a recovery value and a recovery time frame and assessing whether further principal and interest will be received. The determination of recovery value incorporates an issuer valuation assumption utilizing one or a combination of valuation methods as deemed appropriate by the Company. The Company determines the undiscounted recovery value by allocating the estimated value of the issuer to the Company's assessment of the priority of claims. The present value of the cash flows is determined by applying the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment) and an estimated recovery time frame. Generally, that time frame for securities for which the issuer is in bankruptcy is 12 months. For securities for which the issuer is financially troubled but not in bankruptcy, that time frame is generally 24 months. Included in the present value calculation are expected principal and interest payments; however, for securities for which the issuer is classified as bankrupt or in default, the present value calculation assumes no interest payments and a single recovery amount.
\nIn estimating the recovery value, significant judgment is involved in the development of assumptions relating to a myriad of factors related to the issuer including, but not limited to, revenue, margin and earnings projections, the likely market or liquidation values of assets, potential additional debt to be incurred pre- or post-bankruptcy/restructuring, the ability to shift existing or new debt to different priority layers, the amount of restructuring/bankruptcy expenses, the size and priority of unfunded pension obligations, litigation or other contingent claims, the treatment of intercompany claims and the likely outcome with respect to inter-creditor conflicts.
\nFor structured fixed maturity securities (primarily residential and commercial mortgage-backed securities and asset-backed securities), the Company estimates the present value of the security by projecting future cash flows of the assets underlying the securitization, allocating the flows to the various tranches based on the structure of the securitization and determining the present value of the cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). The Company incorporates levels of delinquencies, defaults and severities as well as credit attributes of the remaining assets in the securitization, along with other economic data, to arrive at its best estimate of the parameters applied to the assets underlying the securitization. In order to project cash flows, the following assumptions are applied to the assets underlying the securitization: (1) voluntary prepayment rates, (2) default rates and (3) loss severity. The key assumptions made for the Prime, Alt-A and first-lien Sub-Prime mortgage-backed securities at December 31, 2016 were as follows:
\n\n| \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016) \n | \n\n | Prime | \n\n | Alt-A | \n\n | Sub-Prime | \n
|---|---|---|---|---|---|---|
| \n Voluntary prepayment rates \n | \n\n | 0% - 35% | \n\n | 4% - 15% | \n\n | 3% - 12% | \n
| \n Percentage of remaining pool liquidated due to defaults \n | \n\n | 0% - 46% | \n\n | 20% - 73% | \n\n | 22% - 52% | \n
| \n Loss severity \n | \n\n | 30% - 65% | \n\n | 42% - 90% | \n\n | 75% - 110% | \n
Real Estate Investments
\nOn at least an annual basis, the Company obtains independent appraisals for substantially all of its real estate investments. In addition, the carrying value of all real estate investments is reviewed for impairment on a quarterly basis or when events or changes in circumstances indicate that the carrying amount may not be recoverable. The review for impairment considers the valuation from the independent appraisal, when applicable, and incorporates an estimate of the undiscounted cash flows expected to result from the use and eventual disposition of the real estate property. An impairment loss is recognized if the expected future undiscounted cash flows are less than the carrying value of the real estate property. The impairment loss is the amount by which the carrying amount exceeds fair value.
\nOther Investments
\nInvestments in Private Equity Limited Partnerships, Hedge Funds and Real Estate Partnerships
\nThe Company reviews its investments in private equity limited partnerships, hedge funds and real estate partnerships for impairment no less frequently than quarterly and monitors the performance throughout the year through discussions with the managers/general partners. If the Company becomes aware of an impairment of a partnership's investments at the balance sheet date prior to receiving the partnership's financial statements, it will recognize an impairment by recording a reduction in the carrying value of the partnership with a corresponding charge to net investment income.
\nChanges in Intent to Sell Temporarily Impaired Assets
\nThe Company may, from time to time, sell invested assets subsequent to the balance sheet date that it did not intend to sell at the balance sheet date. Conversely, the Company may not sell invested assets that it asserted that it intended to sell at the balance sheet date. Such changes in intent are due to events occurring subsequent to the balance sheet date. The types of events that may result in a change in intent include, but are not limited to, significant changes in the economic facts and circumstances related to the invested asset (e.g., a downgrade or upgrade from a rating agency), significant unforeseen changes in liquidity needs, or changes in tax laws or the regulatory environment.
\nSecurities Lending
\nThe Company has engaged in securities lending activities from which it generates net investment income by lending certain of its investments to other institutions for short periods of time. Borrowers of these securities provide collateral equal to at least 102% of the market value of the loaned securities plus accrued interest. This collateral is held by a third-party custodian, and the Company has the right to access the collateral only in the event that the institution borrowing the Company's securities is in default under the lending agreement. Therefore, the Company does not recognize the receipt of the collateral held by the third-party custodian or the obligation to return the collateral. The loaned securities remain a recorded asset of the Company. The Company accepts only cash as collateral for securities on loan and restricts the manner in which that cash is invested.
\nReinsurance Recoverables
\nAmounts recoverable from reinsurers are estimated in a manner consistent with the associated claim liability. The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance recoverables. The allowance is based upon the Company's ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. Amounts deemed to be uncollectible, including amounts due from known insolvent reinsurers, are written off against the allowance for estimated uncollectible reinsurance recoverables. Any subsequent collections of amounts previously written off are reported as part of claims and claim adjustment expenses. The Company evaluates and monitors the financial condition of its reinsurers under voluntary reinsurance arrangements to minimize its exposure to significant losses from reinsurer insolvencies.
\nDeferred Acquisition Costs
\nIncremental direct costs of acquired, new and renewal insurance contracts, consisting of commissions (other than contingent commissions) and premium-related taxes, are capitalized and charged to expense pro rata over the contract periods in which the related premiums are earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income and, if not, are charged to expense. Future investment income attributable to related premiums is taken into account in measuring the recoverability of the carrying value of this asset. All other acquisition expenses are charged to operations as incurred.
\nContractholder Receivables and Payables
\nUnder certain workers' compensation insurance contracts with deductible features, the Company is obligated to pay the claimant for the full amount of the claim. The Company is subsequently reimbursed by the policyholder for the deductible amount. These amounts are included on a gross basis in the consolidated balance sheet in contractholder payables and contractholder receivables, respectively.
\nGoodwill and Other Intangible Assets
\nThe Company performs a review, on at least an annual basis, of goodwill held by the reporting units which are the Company's three operating and reportable segments: Business and International Insurance; Bond & Specialty Insurance; and Personal Insurance. The Company estimates the fair value of its reporting units and compares it to their carrying value, including goodwill. If the carrying values of the reporting units were to exceed their fair value, the amount of the impairment would be calculated and goodwill adjusted accordingly.
\nThe Company uses a discounted cash flow model to estimate the fair value of its reporting units. The discounted cash flow model is an income approach to valuation that is based on a detailed cash flow analysis for deriving a current fair value of reporting units and is representative of the Company's reporting units' current and expected future financial performance. The discount rate assumptions reflect the Company's assessment of the risks inherent in the projected future cash flows and the Company's weighted-average cost of capital, and are compared against available market data for reasonableness.
\nOther indefinite-lived intangible assets held by the Company are also reviewed for impairment on at least an annual basis. The classification of the asset as indefinite-lived is reassessed and an impairment is recognized if the carrying amount of the asset exceeds its fair value.
\nIntangible assets that are deemed to have a finite useful life are amortized over their useful lives. The carrying amount of intangible assets with a finite useful life is regularly reviewed for indicators of impairment in value. Impairment is recognized only if the carrying amount of the intangible asset is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the fair value of the asset.
\nAs a result of the reviews performed for the years ended December 31, 2016, 2015 and 2014, the Company determined that the estimated fair value substantially exceeded the respective carrying value of its reporting units for those years and that goodwill was not impaired. The Company also determined during its reviews for each year that its other indefinite-lived intangible assets and finite-lived intangible assets were not impaired.
\nClaims and Claim Adjustment Expense Reserves
\nClaims and claim adjustment expense reserves represent estimates for the ultimate cost of unpaid reported and unreported claims incurred and related expenses. The reserves are adjusted regularly based upon experience. Included in the claims and claim adjustment expense reserves in the consolidated balance sheet are reserves for long-term disability and annuity claim payments, primarily arising from workers' compensation insurance and workers' compensation excess insurance policies, that are discounted to the present value of estimated future payments.
\nThe Company performs a continuing review of its claims and claim adjustment expense reserves, including its reserving techniques and the impact of reinsurance. The reserves are also reviewed regularly by qualified actuaries employed by the Company. Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are included in the results of operations in the period in which the estimates are changed. Such changes in estimates could occur in a future period and may be material to the Company's results of operations and financial position in such period.
\nOther Liabilities
\nIncluded in other liabilities in the consolidated balance sheet is the Company's estimate of its liability for guaranty fund and other insurance-related assessments. The liability for expected state guaranty fund and other premium-based assessments is recognized as the Company writes or becomes obligated to write or renew the premiums on which the assessments are expected to be based. The liability for loss-based assessments is recognized as the related losses are incurred. At December 31, 2016 and 2015, the Company had a liability of $242 million and $241 million, respectively, for guaranty fund and other insurance-related assessments and related recoverables of $16 million and $18 million, respectively. The liability for such assessments and the related recoverables are not discounted for the time value of money. The loss-based assessments are expected to be paid over a period ranging from one year to the life expectancy of certain workers' compensation claimants and the recoveries are expected to occur over the same period of time.
\nAlso included in other liabilities is an accrual for policyholder dividends. Certain insurance contracts, primarily workers' compensation, are participating whereby dividends are paid to policyholders in accordance with contract provisions. Net written premiums for participating dividend policies were approximately 1%, 2% and 1% of total net written premiums for the years ended December 31, 2016, 2015 and 2014, respectively. Policyholder dividends are accrued against earnings using best available estimates of amounts to be paid. The liability accrued for policyholder dividends totaled $62 million and $57 million at December 31, 2016 and 2015, respectively.
\nTreasury Stock
\nThe cost of common stock repurchased by the Company is reported as treasury stock and represents authorized and unissued shares of the Company under the Minnesota Business Corporation Act.
\nStatutory Accounting Practices
\nThe Company's U.S. insurance subsidiaries, domiciled principally in the State of Connecticut, are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of the states of domicile. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in a particular state. The State of Connecticut requires insurers domiciled in Connecticut to prepare their statutory financial statements in accordance with National Association of Insurance Commissioners' (NAIC) statutory accounting practices.
\nPermitted statutory accounting practices are those practices that differ either from state-prescribed statutory accounting practices or NAIC statutory accounting practices.
\nThe Company does not apply any statutory accounting practices that would be considered a prescribed or permitted statutory accounting practice that differs from NAIC statutory accounting practices.
\nThe Company's non-U.S. insurance subsidiaries file financial statements prepared in accordance with the regulatory reporting requirements of their respective local jurisdiction.
\nPremiums and Unearned Premium Reserves
\nPremiums are recognized as revenues pro rata over the policy period. Unearned premium reserves represent the unexpired portion of policy premiums. Accrued retrospective premiums are included in premium balances receivable. Premium balances receivable are reported net of an allowance for estimated uncollectible premium amounts.
\nCeded premiums are charged to income over the applicable term of the various reinsurance contracts with third party reinsurers. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers and are reported as part of other assets.
\nFee Income
\nFee income includes servicing fees from carriers and revenues from large deductible policies and service contracts and is recognized pro rata over the contract or policy periods.
\nOther Revenues
\nOther revenues include revenues from premium installment charges, which are recognized as collected, revenues of noninsurance subsidiaries other than fee income and gains and losses on dispositions of assets and redemption of debt, and other miscellaneous revenues including a gain recognized as a result of the settlement of a reinsurance dispute.
\nIncome Taxes
\nThe Company recognizes deferred income tax assets and liabilities for the expected future tax effects attributable to temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or some portion of the deferred tax assets will not be realized.
\nForeign Currency Translation
\nThe Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency, and the resulting foreign exchange gains or losses are reflected in earnings. Functional currency amounts are then translated into U.S. dollars. The foreign currency remeasurement and translation are calculated using current exchange rates for items reported in the balance sheets and average exchange rates for items recorded in earnings. The change in unrealized foreign currency translation gain or loss during the year, net of tax, is a component of other comprehensive income.
\nShare-Based Compensation
\nThe Company has an employee stock incentive compensation plan that permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, deferred stock, stock units, performance awards and other share-based or share-denominated awards with respect to the Company's common stock.
\nCompensation cost is measured based on the grant-date fair value of an award, utilizing the assumptions discussed in note 13. Compensation cost is recognized for financial reporting purposes over the period in which the employee is required to provide service in exchange for the award (generally the vesting period). In connection with certain share-based awards, participants are entitled to receive dividends during the vesting period, either in cash or dividend equivalent shares, commensurate with the dividends paid to common shareholders. Dividends and dividend equivalent shares on awards that are expected to vest are recorded in retained earnings. Dividends paid on awards that are not expected to vest as part of the Company's forfeiture estimate are recorded as compensation expense.
\n| \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016) \n | \n\n | Prime | \n\n | Alt-A | \n\n | Sub-Prime | \n
|---|---|---|---|---|---|---|
| \n Voluntary prepayment rates \n | \n\n | 0% - 35% | \n\n | 4% - 15% | \n\n | 3% - 12% | \n
| \n Percentage of remaining pool liquidated due to defaults \n | \n\n | 0% - 46% | \n\n | 20% - 73% | \n\n | 22% - 52% | \n
| \n Loss severity \n | \n\n | 30% - 65% | \n\n | 42% - 90% | \n\n | 75% - 110% | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | Business and \nInternational \nInsurance | \n\n | Bond & \nSpecialty \nInsurance | \n\n | Personal \nInsurance | \n\n | Total \nReportable \nSegments | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n14,620 | \n\n | $ | \n2,088 | \n\n | $ | \n7,826 | \n\n | $ | \n24,534 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,763 | \n\n | \n | 210 | \n\n | \n | 329 | \n\n | \n | 2,302 | \n\n |
| \n Fee income \n | \n\n | \n | 442 | \n\n | \n | — | \n\n | \n | 16 | \n\n | \n | 458 | \n\n |
| \n Other revenues \n | \n\n | \n | 176 | \n\n | \n | 20 | \n\n | \n | 56 | \n\n | \n | 252 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues(1) \n | \n\n | $ | \n17,001 | \n\n | $ | \n2,318 | \n\n | $ | \n8,227 | \n\n | $ | \n27,546 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amortization and depreciation \n | \n\n | $ | \n2,956 | \n\n | $ | \n457 | \n\n | $ | \n1,391 | \n\n | $ | \n4,804 | \n\n |
| \n Income tax expense \n | \n\n | \n | 659 | \n\n | \n | 307 | \n\n | \n | 191 | \n\n | \n | 1,157 | \n\n |
| \n Operating income(1) \n | \n\n | \n | 2,048 | \n\n | \n | 653 | \n\n | \n | 510 | \n\n | \n | 3,211 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Premiums \n | \n\n | $ | \n14,521 | \n\n | $ | \n2,085 | \n\n | $ | \n7,268 | \n\n | $ | \n23,874 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,824 | \n\n | \n | 223 | \n\n | \n | 332 | \n\n | \n | 2,379 | \n\n |
| \n Fee income \n | \n\n | \n | 445 | \n\n | \n | — | \n\n | \n | 15 | \n\n | \n | 460 | \n\n |
| \n Other revenues \n | \n\n | \n | 23 | \n\n | \n | 22 | \n\n | \n | 48 | \n\n | \n | 93 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues(1) \n | \n\n | $ | \n16,813 | \n\n | $ | \n2,330 | \n\n | $ | \n7,663 | \n\n | $ | \n26,806 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amortization and depreciation \n | \n\n | $ | \n2,907 | \n\n | $ | \n467 | \n\n | $ | \n1,322 | \n\n | $ | \n4,696 | \n\n |
| \n Income tax expense \n | \n\n | \n | 769 | \n\n | \n | 272 | \n\n | \n | 402 | \n\n | \n | 1,443 | \n\n |
| \n Operating income(1) \n | \n\n | \n | 2,170 | \n\n | \n | 633 | \n\n | \n | 889 | \n\n | \n | 3,692 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Premiums \n | \n\n | $ | \n14,512 | \n\n | $ | \n2,076 | \n\n | $ | \n7,125 | \n\n | $ | \n23,713 | \n\n |
| \n Net investment income \n | \n\n | \n | 2,156 | \n\n | \n | 252 | \n\n | \n | 379 | \n\n | \n | 2,787 | \n\n |
| \n Fee income \n | \n\n | \n | 438 | \n\n | \n | — | \n\n | \n | 12 | \n\n | \n | 450 | \n\n |
| \n Other revenues \n | \n\n | \n | 46 | \n\n | \n | 19 | \n\n | \n | 80 | \n\n | \n | 145 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues(1) \n | \n\n | $ | \n17,152 | \n\n | $ | \n2,347 | \n\n | $ | \n7,596 | \n\n | $ | \n27,095 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amortization and depreciation \n | \n\n | $ | \n2,909 | \n\n | $ | \n482 | \n\n | $ | \n1,347 | \n\n | $ | \n4,738 | \n\n |
| \n Income tax expense \n | \n\n | \n | 798 | \n\n | \n | 348 | \n\n | \n | 366 | \n\n | \n | 1,512 | \n\n |
| \n Operating income(1) \n | \n\n | \n | 2,347 | \n\n | \n | 727 | \n\n | \n | 824 | \n\n | \n | 3,898 | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Business and International Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Domestic: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Select Accounts \n | \n\n | $ | \n2,729 | \n\n | $ | \n2,716 | \n\n | $ | \n2,707 | \n\n |
| \n Middle Market \n | \n\n | \n | 6,463 | \n\n | \n | 6,302 | \n\n | \n | 6,077 | \n\n |
| \n National Accounts \n | \n\n | \n | 1,058 | \n\n | \n | 1,048 | \n\n | \n | 1,047 | \n\n |
| \n First Party \n | \n\n | \n | 1,601 | \n\n | \n | 1,564 | \n\n | \n | 1,579 | \n\n |
| \n Specialized Distribution \n | \n\n | \n | 1,094 | \n\n | \n | 1,111 | \n\n | \n | 1,074 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Domestic \n | \n\n | \n | 12,945 | \n\n | \n | 12,741 | \n\n | \n | 12,484 | \n\n |
| \n International \n | \n\n | \n | 1,730 | \n\n | \n | 1,842 | \n\n | \n | 2,152 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Business and International Insurance \n | \n\n | \n | 14,675 | \n\n | \n | 14,583 | \n\n | \n | 14,636 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Bond & Specialty Insurance \n | \n\n | \n | 2,099 | \n\n | \n | 2,081 | \n\n | \n | 2,103 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Personal Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Automobile \n | \n\n | \n | 4,327 | \n\n | \n | 3,700 | \n\n | \n | 3,390 | \n\n |
| \n Homeowners and Other \n | \n\n | \n | 3,857 | \n\n | \n | 3,757 | \n\n | \n | 3,775 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Personal Insurance \n | \n\n | \n | 8,184 | \n\n | \n | 7,457 | \n\n | \n | 7,165 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated net written premiums \n | \n\n | $ | \n24,958 | \n\n | $ | \n24,121 | \n\n | $ | \n23,904 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Asset reconciliation: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Business and International Insurance \n | \n\n | $ | \n79,468 | \n\n | $ | \n79,692 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | 7,296 | \n\n | \n | 7,360 | \n\n |
| \n Personal Insurance \n | \n\n | \n | 13,118 | \n\n | \n | 12,748 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total assets for reportable segments \n | \n\n | \n | 99,882 | \n\n | \n | 99,800 | \n\n |
| \n Other assets(1) \n | \n\n | \n | 363 | \n\n | \n | 384 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated assets \n | \n\n | $ | \n100,245 | \n\n | $ | \n100,184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n U.S. \n | \n\n | $ | \n25,904 | \n\n | $ | \n25,127 | \n\n | $ | \n25,103 | \n\n |
| \n Non-U.S.: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Canada \n | \n\n | \n | 1,154 | \n\n | \n | 1,202 | \n\n | \n | 1,474 | \n\n |
| \n Other Non-U.S. \n | \n\n | \n | 567 | \n\n | \n | 486 | \n\n | \n | 597 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Non-U.S. \n | \n\n | \n | 1,721 | \n\n | \n | 1,688 | \n\n | \n | 2,071 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | $ | \n27,625 | \n\n | $ | \n26,815 | \n\n | $ | \n27,174 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross Unrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Amortized Cost | \n\n | Fair \nValue | \n\n | ||||||||
| \n (at December 31, 2016, in millions) \n | \n\n | Gains | \n\n | Losses | \n\n | ||||||||
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,031 | \n\n | $ | \n9 | \n\n | $ | \n5 | \n\n | $ | \n2,035 | \n\n |
| \n Obligations of states, municipalities and political subdivisions: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Local general obligation \n | \n\n | \n | 13,955 | \n\n | \n | 271 | \n\n | \n | 182 | \n\n | \n | 14,044 | \n\n |
| \n Revenue \n | \n\n | \n | 10,910 | \n\n | \n | 215 | \n\n | \n | 147 | \n\n | \n | 10,978 | \n\n |
| \n State general obligation \n | \n\n | \n | 1,717 | \n\n | \n | 36 | \n\n | \n | 22 | \n\n | \n | 1,731 | \n\n |
| \n Pre-refunded \n | \n\n | \n | 4,968 | \n\n | \n | 190 | \n\n | \n | 1 | \n\n | \n | 5,157 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total obligations of states, municipalities and political subdivisions \n | \n\n | \n | 31,550 | \n\n | \n | 712 | \n\n | \n | 352 | \n\n | \n | 31,910 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,631 | \n\n | \n | 34 | \n\n | \n | 3 | \n\n | \n | 1,662 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,614 | \n\n | \n | 100 | \n\n | \n | 6 | \n\n | \n | 1,708 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 22,737 | \n\n | \n | 508 | \n\n | \n | 138 | \n\n | \n | 23,107 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 87 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 93 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n59,650 | \n\n | $ | \n1,369 | \n\n | $ | \n504 | \n\n | $ | \n60,515 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross Unrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Amortized \nCost | \n\n | Fair \nValue | \n\n | ||||||||
| \n (at December 31, 2015, in millions) \n | \n\n | Gains | \n\n | Losses | \n\n | ||||||||
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,202 | \n\n | $ | \n8 | \n\n | $ | \n16 | \n\n | $ | \n2,194 | \n\n |
| \n Obligations of states, municipalities and political subdivisions: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Local general obligation \n | \n\n | \n | 12,744 | \n\n | \n | 577 | \n\n | \n | 3 | \n\n | \n | 13,318 | \n\n |
| \n Revenue \n | \n\n | \n | 9,492 | \n\n | \n | 472 | \n\n | \n | 4 | \n\n | \n | 9,960 | \n\n |
| \n State general obligation \n | \n\n | \n | 1,978 | \n\n | \n | 97 | \n\n | \n | 2 | \n\n | \n | 2,073 | \n\n |
| \n Pre-refunded \n | \n\n | \n | 5,813 | \n\n | \n | 247 | \n\n | \n | — | \n\n | \n | 6,060 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total obligations of states, municipalities and political subdivisions \n | \n\n | \n | 30,027 | \n\n | \n | 1,393 | \n\n | \n | 9 | \n\n | \n | 31,411 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,829 | \n\n | \n | 45 | \n\n | \n | 1 | \n\n | \n | 1,873 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,863 | \n\n | \n | 124 | \n\n | \n | 6 | \n\n | \n | 1,981 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 22,854 | \n\n | \n | 523 | \n\n | \n | 288 | \n\n | \n | 23,089 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 103 | \n\n | \n | 7 | \n\n | \n | — | \n\n | \n | 110 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n58,878 | \n\n | $ | \n2,100 | \n\n | $ | \n320 | \n\n | $ | \n60,658 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Amortized \nCost | \n\n | Fair \nValue | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Due in one year or less \n | \n\n | $ | \n5,619 | \n\n | $ | \n5,677 | \n\n |
| \n Due after 1 year through 5 years \n | \n\n | \n | 16,417 | \n\n | \n | 16,926 | \n\n |
| \n Due after 5 years through 10 years \n | \n\n | \n | 14,258 | \n\n | \n | 14,449 | \n\n |
| \n Due after 10 years \n | \n\n | \n | 21,742 | \n\n | \n | 21,755 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | 58,036 | \n\n | \n | 58,807 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,614 | \n\n | \n | 1,708 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n59,650 | \n\n | $ | \n60,515 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross \nUnrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at December 31, 2016, in millions) \n | \n\n | Cost | \n\n | Gains | \n\n | Losses | \n\n | Fair Value | \n\n | ||||
| \n Public common stock \n | \n\n | $ | \n390 | \n\n | $ | \n216 | \n\n | $ | \n3 | \n\n | $ | \n603 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 114 | \n\n | \n | 20 | \n\n | \n | 5 | \n\n | \n | 129 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n504 | \n\n | $ | \n236 | \n\n | $ | \n8 | \n\n | $ | \n732 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | Gross \nUnrealized | \n\n | | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | | \n\n | Fair \nValue | \n\n | ||||||||
| \n (at December 31, 2015, in millions) \n | \n\n | Cost | \n\n | Gains | \n\n | Losses | \n\n | ||||||
| \n Public common stock \n | \n\n | $ | \n386 | \n\n | $ | \n164 | \n\n | $ | \n7 | \n\n | $ | \n543 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 142 | \n\n | \n | 26 | \n\n | \n | 6 | \n\n | \n | 162 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n528 | \n\n | $ | \n190 | \n\n | $ | \n13 | \n\n | $ | \n705 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Less than 12 months | \n\n | 12 months or longer | \n\n | Total | \n\n | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at December 31, 2016, in millions) \n | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | ||||||
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n1,124 | \n\n | $ | \n5 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n1,124 | \n\n | $ | \n5 | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 9,781 | \n\n | \n | 352 | \n\n | \n | 12 | \n\n | \n | — | \n\n | \n | 9,793 | \n\n | \n | 352 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 360 | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 360 | \n\n | \n | 3 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 528 | \n\n | \n | 5 | \n\n | \n | 43 | \n\n | \n | 1 | \n\n | \n | 571 | \n\n | \n | 6 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 6,470 | \n\n | \n | 115 | \n\n | \n | 437 | \n\n | \n | 23 | \n\n | \n | 6,907 | \n\n | \n | 138 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 18,263 | \n\n | \n | 480 | \n\n | \n | 492 | \n\n | \n | 24 | \n\n | \n | 18,755 | \n\n | \n | 504 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 45 | \n\n | \n | 2 | \n\n | \n | 10 | \n\n | \n | 1 | \n\n | \n | 55 | \n\n | \n | 3 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 59 | \n\n | \n | 5 | \n\n | \n | 61 | \n\n | \n | 5 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 47 | \n\n | \n | 2 | \n\n | \n | 69 | \n\n | \n | 6 | \n\n | \n | 116 | \n\n | \n | 8 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n18,310 | \n\n | $ | \n482 | \n\n | $ | \n561 | \n\n | $ | \n30 | \n\n | $ | \n18,871 | \n\n | $ | \n512 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Less than 12 months | \n\n | 12 months or longer | \n\n | Total | \n\n | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at December 31, 2015, in millions) \n | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | Fair \nValue | \n\n | Gross \nUnrealized \nLosses | \n\n | ||||||
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n1,820 | \n\n | $ | \n15 | \n\n | $ | \n28 | \n\n | $ | \n1 | \n\n | $ | \n1,848 | \n\n | $ | \n16 | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 928 | \n\n | \n | 7 | \n\n | \n | 142 | \n\n | \n | 2 | \n\n | \n | 1,070 | \n\n | \n | 9 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 172 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 172 | \n\n | \n | 1 | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 473 | \n\n | \n | 4 | \n\n | \n | 57 | \n\n | \n | 2 | \n\n | \n | 530 | \n\n | \n | 6 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 7,725 | \n\n | \n | 197 | \n\n | \n | 710 | \n\n | \n | 91 | \n\n | \n | 8,435 | \n\n | \n | 288 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 8 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 8 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 11,126 | \n\n | \n | 224 | \n\n | \n | 937 | \n\n | \n | 96 | \n\n | \n | 12,063 | \n\n | \n | 320 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 48 | \n\n | \n | 6 | \n\n | \n | 33 | \n\n | \n | 1 | \n\n | \n | 81 | \n\n | \n | 7 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 47 | \n\n | \n | 3 | \n\n | \n | 38 | \n\n | \n | 3 | \n\n | \n | 85 | \n\n | \n | 6 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 95 | \n\n | \n | 9 | \n\n | \n | 71 | \n\n | \n | 4 | \n\n | \n | 166 | \n\n | \n | 13 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n11,221 | \n\n | $ | \n233 | \n\n | $ | \n1,008 | \n\n | $ | \n100 | \n\n | $ | \n12,229 | \n\n | $ | \n333 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Period For Which Fair Value Is Less Than 80% of Amortized Cost | \n\n | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (in millions) \n | \n\n | 3 Months \nor Less | \n\n | Greater Than \n3 Months, \n6 Months \nor Less | \n\n | Greater Than \n6 Months, \n12 Months \nor Less | \n\n | Greater Than \n12 Months | \n\n | Total | \n\n | |||||
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Mortgage-backed securities \n | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Other \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| \n Equity securities \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n2 | \n\n | $ | \n4 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Year ended December 31, 2016 \n\n(in millions) | \n\n | Cumulative \nOTTI Credit \nLosses \nRecognized for \nSecurities Held, \nBeginning of \nPeriod | \n\n | Additions for \nOTTI Securities \nWhere No \nCredit Losses \nWere \nPreviously \nRecognized | \n\n | Additions for \nOTTI Securities \nWhere Credit \nLosses Have \nBeen \nPreviously \nRecognized | \n\n | Reductions \nDue to \nSales/Defaults \nof Credit- \nImpaired \nSecurities | \n\n | Adjustments to \nBook Value \nof Credit- \nImpaired \nSecurities due \nto Changes in \nCash Flows | \n\n | Cumulative OTTI \nCredit Losses \nRecognized for \nSecurities Still \nHeld, End of \nPeriod | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | $ | \n32 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n(1 | \n) | \n$ | \n31 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 51 | \n\n | \n | 13 | \n\n | \n | — | \n\n | \n | (7 | \n) | \n\n | (3 | \n) | \n\n | 54 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | $ | \n83 | \n\n | $ | \n13 | \n\n | $ | \n— | \n\n | $ | \n(7 | \n) | \n$ | \n(4 | \n) | \n$ | \n85 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Year ended December 31, 2015 \n\n(in millions) | \n\n | Cumulative \nOTTI Credit \nLosses \nRecognized for \nSecurities Held, \nBeginning of \nPeriod | \n\n | Additions for \nOTTI Securities \nWhere No \nCredit Losses \nWere \nPreviously \nRecognized | \n\n | Additions for \nOTTI Securities \nWhere Credit \nLosses Have \nBeen \nPreviously \nRecognized | \n\n | Reductions \nDue to \nSales/Defaults \nof Credit- \nImpaired \nSecurities | \n\n | Adjustments to \nBook Value \nof Credit- \nImpaired \nSecurities due \nto Changes in \nCash Flows | \n\n | Cumulative OTTI \nCredit Losses \nRecognized for \nSecurities Still \nHeld, End of \nPeriod | \n\n | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | $ | \n40 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n(6 | \n) | \n$ | \n(2 | \n) | \n$ | \n32 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 59 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | (4 | \n) | \n\n | (6 | \n) | \n\n | 51 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | $ | \n99 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n(10 | \n) | \n$ | \n(8 | \n) | \n$ | \n83 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Gross investment income \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | $ | \n1,981 | \n\n | $ | \n2,091 | \n\n | $ | \n2,244 | \n\n |
| \n Equity securities \n | \n\n | \n | 37 | \n\n | \n | 39 | \n\n | \n | 40 | \n\n |
| \n Short-term securities \n | \n\n | \n | 29 | \n\n | \n | 12 | \n\n | \n | 9 | \n\n |
| \n Real estate investments \n | \n\n | \n | 51 | \n\n | \n | 48 | \n\n | \n | 44 | \n\n |
| \n Other investments \n | \n\n | \n | 242 | \n\n | \n | 230 | \n\n | \n | 489 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Gross investment income \n | \n\n | \n | 2,340 | \n\n | \n | 2,420 | \n\n | \n | 2,826 | \n\n |
| \n Investment expenses \n | \n\n | \n | 38 | \n\n | \n | 41 | \n\n | \n | 39 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net investment income \n | \n\n | $ | \n2,302 | \n\n | $ | \n2,379 | \n\n | $ | \n2,787 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Changes in net unrealized investment gains \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | $ | \n(915 | \n) | \n$ | \n(893 | \n) | \n$ | \n913 | \n\n |
| \n Equity securities \n | \n\n | \n | 51 | \n\n | \n | (143 | \n) | \n\n | 63 | \n\n |
| \n Other investments \n | \n\n | \n | 2 | \n\n | \n | 2 | \n\n | \n | 2 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in net pre-tax unrealized gains on investment securities \n | \n\n | \n | (862 | \n) | \n\n | (1,034 | \n) | \n\n | 978 | \n\n |
| \n Related tax expense (benefit) \n | \n\n | \n | (303 | \n) | \n\n | (357 | \n) | \n\n | 334 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in net unrealized gains on investment securities \n | \n\n | \n | (559 | \n) | \n\n | (677 | \n) | \n\n | 644 | \n\n |
| \n Balance, beginning of year \n | \n\n | \n | 1,289 | \n\n | \n | 1,966 | \n\n | \n | 1,322 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, end of year \n | \n\n | $ | \n730 | \n\n | $ | \n1,289 | \n\n | $ | \n1,966 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,035 | \n\n | $ | \n2,035 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 31,910 | \n\n | \n | — | \n\n | \n | 31,898 | \n\n | \n | 12 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,662 | \n\n | \n | — | \n\n | \n | 1,662 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,708 | \n\n | \n | — | \n\n | \n | 1,704 | \n\n | \n | 4 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 23,107 | \n\n | \n | — | \n\n | \n | 22,939 | \n\n | \n | 168 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 93 | \n\n | \n | 3 | \n\n | \n | 90 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 60,515 | \n\n | \n | 2,038 | \n\n | \n | 58,293 | \n\n | \n | 184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 603 | \n\n | \n | 603 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 129 | \n\n | \n | 51 | \n\n | \n | 78 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 732 | \n\n | \n | 654 | \n\n | \n | 78 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments \n | \n\n | \n | 53 | \n\n | \n | 17 | \n\n | \n | — | \n\n | \n | 36 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n61,300 | \n\n | $ | \n2,709 | \n\n | $ | \n58,371 | \n\n | $ | \n220 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n2,194 | \n\n | $ | \n2,194 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | 31,411 | \n\n | \n | — | \n\n | \n | 31,398 | \n\n | \n | 13 | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 1,873 | \n\n | \n | — | \n\n | \n | 1,873 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 1,981 | \n\n | \n | — | \n\n | \n | 1,957 | \n\n | \n | 24 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 23,089 | \n\n | \n | — | \n\n | \n | 22,915 | \n\n | \n | 174 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | 110 | \n\n | \n | 3 | \n\n | \n | 100 | \n\n | \n | 7 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 60,658 | \n\n | \n | 2,197 | \n\n | \n | 58,243 | \n\n | \n | 218 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 543 | \n\n | \n | 543 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 162 | \n\n | \n | 55 | \n\n | \n | 107 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 705 | \n\n | \n | 598 | \n\n | \n | 107 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments \n | \n\n | \n | 56 | \n\n | \n | 18 | \n\n | \n | — | \n\n | \n | 38 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n61,419 | \n\n | $ | \n2,813 | \n\n | $ | \n58,350 | \n\n | $ | \n256 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | Fixed \nMaturities | \n\n | Other \nInvestments | \n\n | Total | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Balance at December 31, 2015 \n | \n\n | $ | \n218 | \n\n | $ | \n38 | \n\n | $ | \n256 | \n\n |
| \n Total realized and unrealized investment gains (losses): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Reported in net realized investment gains(1) \n | \n\n | \n | 3 | \n\n | \n | 5 | \n\n | \n | 8 | \n\n |
| \n Reported in increases in other comprehensive income \n | \n\n | \n | 2 | \n\n | \n | 3 | \n\n | \n | 5 | \n\n |
| \n Purchases, sales and settlements/maturities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Purchases \n | \n\n | \n | 123 | \n\n | \n | — | \n\n | \n | 123 | \n\n |
| \n Sales \n | \n\n | \n | (19 | \n) | \n\n | (10 | \n) | \n\n | (29 | \n) | \n
| \n Settlements/maturities \n | \n\n | \n | (66 | \n) | \n\n | — | \n\n | \n | (66 | \n) | \n
| \n Gross transfers into Level 3 \n | \n\n | \n | 19 | \n\n | \n | — | \n\n | \n | 19 | \n\n |
| \n Gross transfers out of Level 3 \n | \n\n | \n | (96 | \n) | \n\n | — | \n\n | \n | (96 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance at December 31, 2016 \n | \n\n | $ | \n184 | \n\n | $ | \n36 | \n\n | $ | \n220 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date \n | \n\n | $ | \n— | \n\n | $ | \n(2 | \n) | \n$ | \n(2 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | Fixed \nMaturities | \n\n | Other \nInvestments | \n\n | Total | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Balance at December 31, 2014 \n | \n\n | $ | \n232 | \n\n | $ | \n36 | \n\n | $ | \n268 | \n\n |
| \n Total realized and unrealized investment gains (losses): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Reported in net realized investment gains(1) \n | \n\n | \n | 1 | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| \n Reported in increases (decreases) in other comprehensive income \n | \n\n | \n | (4 | \n) | \n\n | 1 | \n\n | \n | (3 | \n) | \n
| \n Purchases, sales and settlements/maturities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Purchases \n | \n\n | \n | 202 | \n\n | \n | 1 | \n\n | \n | 203 | \n\n |
| \n Sales \n | \n\n | \n | (7 | \n) | \n\n | (2 | \n) | \n\n | (9 | \n) | \n
| \n Settlements/maturities \n | \n\n | \n | (41 | \n) | \n\n | — | \n\n | \n | (41 | \n) | \n
| \n Gross transfers into Level 3 \n | \n\n | \n | 21 | \n\n | \n | — | \n\n | \n | 21 | \n\n |
| \n Gross transfers out of Level 3 \n | \n\n | \n | (186 | \n) | \n\n | — | \n\n | \n | (186 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance at December 31, 2015 \n | \n\n | $ | \n218 | \n\n | $ | \n38 | \n\n | $ | \n256 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amount of total realized investment gains (losses) for the period included in the consolidated statement of income attributable to changes in the fair value of assets still held at the reporting date \n | \n\n | $ | \n— | \n\n | $ | \n(1 | \n) | \n$ | \n(1 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Carrying \nValue | \n\n | Fair \nValue | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Financial assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Short-term securities \n | \n\n | $ | \n4,865 | \n\n | $ | \n4,865 | \n\n | $ | \n1,223 | \n\n | $ | \n3,607 | \n\n | $ | \n35 | \n\n |
| \n Financial liabilities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Debt \n | \n\n | $ | \n6,337 | \n\n | $ | \n7,262 | \n\n | $ | \n— | \n\n | $ | \n7,262 | \n\n | $ | \n— | \n\n |
| \n Commercial paper \n | \n\n | \n | 100 | \n\n | \n | 100 | \n\n | \n | — | \n\n | \n | 100 | \n\n | \n | — | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Carrying \nValue | \n\n | Fair \nValue | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Financial assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Short-term securities \n | \n\n | $ | \n4,671 | \n\n | $ | \n4,671 | \n\n | $ | \n1,685 | \n\n | $ | \n2,958 | \n\n | $ | \n28 | \n\n |
| \n Financial liabilities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Debt \n | \n\n | $ | \n6,244 | \n\n | $ | \n7,180 | \n\n | $ | \n— | \n\n | $ | \n7,180 | \n\n | $ | \n— | \n\n |
| \n Commercial paper \n | \n\n | \n | 100 | \n\n | \n | 100 | \n\n | \n | — | \n\n | \n | 100 | \n\n | \n | — | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Written premiums \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Direct \n | \n\n | $ | \n25,567 | \n\n | $ | \n24,939 | \n\n | $ | \n24,844 | \n\n |
| \n Assumed \n | \n\n | \n | 928 | \n\n | \n | 843 | \n\n | \n | 788 | \n\n |
| \n Ceded \n | \n\n | \n | (1,537 | \n) | \n\n | (1,661 | \n) | \n\n | (1,728 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total net written premiums \n | \n\n | $ | \n24,958 | \n\n | $ | \n24,121 | \n\n | $ | \n23,904 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Earned premiums \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Direct \n | \n\n | $ | \n25,262 | \n\n | $ | \n24,740 | \n\n | $ | \n24,810 | \n\n |
| \n Assumed \n | \n\n | \n | 875 | \n\n | \n | 814 | \n\n | \n | 743 | \n\n |
| \n Ceded \n | \n\n | \n | (1,603 | \n) | \n\n | (1,680 | \n) | \n\n | (1,840 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total net earned premiums \n | \n\n | $ | \n24,534 | \n\n | $ | \n23,874 | \n\n | $ | \n23,713 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Percentage of assumed earned premiums to net earned premiums \n | \n\n | \n | 3.6 | \n% | \n\n | 3.4 | \n% | \n\n | 3.1 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Ceded claims and claim adjustment expenses incurred \n | \n\n | $ | \n762 | \n\n | $ | \n1,034 | \n\n | $ | \n953 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses \n | \n\n | $ | \n3,181 | \n\n | $ | \n3,848 | \n\n |
| \n Allowance for uncollectible reinsurance \n | \n\n | \n | (116 | \n) | \n\n | (157 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net reinsurance recoverables \n | \n\n | \n | 3,065 | \n\n | \n | 3,691 | \n\n |
| \n Mandatory pools and associations \n | \n\n | \n | 2,054 | \n\n | \n | 2,015 | \n\n |
| \n Structured settlements \n | \n\n | \n | 3,168 | \n\n | \n | 3,204 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total reinsurance recoverables \n | \n\n | $ | \n8,287 | \n\n | $ | \n8,910 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Business and International Insurance(1) \n | \n\n | $ | \n2,446 | \n\n | $ | \n2,439 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | 496 | \n\n | \n | 496 | \n\n |
| \n Personal Insurance \n | \n\n | \n | 612 | \n\n | \n | 612 | \n\n |
| \n Other \n | \n\n | \n | 26 | \n\n | \n | 26 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n3,580 | \n\n | $ | \n3,573 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Gross \nCarrying \nAmount | \n\n | Accumulated \nAmortization | \n\n | Net | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Subject to amortization(1) \n | \n\n | $ | \n210 | \n\n | $ | \n159 | \n\n | $ | \n51 | \n\n |
| \n Not subject to amortization \n | \n\n | \n | 217 | \n\n | \n | — | \n\n | \n | 217 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n427 | \n\n | $ | \n159 | \n\n | $ | \n268 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Gross \nCarrying \nAmount | \n\n | Accumulated \nAmortization | \n\n | Net | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Subject to amortization(1) \n | \n\n | $ | \n210 | \n\n | $ | \n148 | \n\n | $ | \n62 | \n\n |
| \n Not subject to amortization \n | \n\n | \n | 217 | \n\n | \n | — | \n\n | \n | 217 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n427 | \n\n | $ | \n148 | \n\n | $ | \n279 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Gross \nCarrying \nAmount | \n\n | Accumulated \nAmortization | \n\n | Net | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Subject to amortization(1) \n | \n\n | $ | \n210 | \n\n | $ | \n159 | \n\n | $ | \n51 | \n\n |
| \n Not subject to amortization \n | \n\n | \n | 217 | \n\n | \n | — | \n\n | \n | 217 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n427 | \n\n | $ | \n159 | \n\n | $ | \n268 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Gross \nCarrying \nAmount | \n\n | Accumulated \nAmortization | \n\n | Net | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Subject to amortization(1) \n | \n\n | $ | \n210 | \n\n | $ | \n148 | \n\n | $ | \n62 | \n\n |
| \n Not subject to amortization \n | \n\n | \n | 217 | \n\n | \n | — | \n\n | \n | 217 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n427 | \n\n | $ | \n148 | \n\n | $ | \n279 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Property-casualty \n | \n\n | $ | \n47,929 | \n\n | $ | \n48,272 | \n\n |
| \n Accident and health \n | \n\n | \n | 20 | \n\n | \n | 23 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n47,949 | \n\n | $ | \n48,295 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Claims and claim adjustment expense reserves at beginning of year \n | \n\n | $ | \n48,272 | \n\n | $ | \n49,824 | \n\n | $ | \n50,865 | \n\n |
| \n Less reinsurance recoverables on unpaid losses \n | \n\n | \n | 8,449 | \n\n | \n | 8,788 | \n\n | \n | 9,280 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net reserves at beginning of year \n | \n\n | \n | 39,823 | \n\n | \n | 41,036 | \n\n | \n | 41,585 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Estimated claims and claim adjustment expenses for claims arising in the current year \n | \n\n | \n | 15,675 | \n\n | \n | 14,471 | \n\n | \n | 14,688 | \n\n |
| \n Estimated decrease in claims and claim adjustment expenses for claims arising in prior years \n | \n\n | \n | (680 | \n) | \n\n | (817 | \n) | \n\n | (885 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total increases \n | \n\n | \n | 14,995 | \n\n | \n | 13,654 | \n\n | \n | 13,803 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and claim adjustment expense payments for claims arising in: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Current year \n | \n\n | \n | 6,220 | \n\n | \n | 5,725 | \n\n | \n | 5,895 | \n\n |
| \n Prior years \n | \n\n | \n | 8,576 | \n\n | \n | 8,749 | \n\n | \n | 8,171 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total payments \n | \n\n | \n | 14,796 | \n\n | \n | 14,474 | \n\n | \n | 14,066 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Acquisition(1) \n | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | — | \n\n |
| \n Unrealized foreign exchange gain \n | \n\n | \n | (74 | \n) | \n\n | (395 | \n) | \n\n | (286 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net reserves at end of year \n | \n\n | \n | 39,948 | \n\n | \n | 39,823 | \n\n | \n | 41,036 | \n\n |
| \n Plus reinsurance recoverables on unpaid losses \n | \n\n | \n | 7,981 | \n\n | \n | 8,449 | \n\n | \n | 8,788 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and claim adjustment expense reserves at end of year \n | \n\n | $ | \n47,929 | \n\n | $ | \n48,272 | \n\n | $ | \n49,824 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n At December 31, 2016 (in millions) \n | \n\n | Net Undiscounted \nClaims and Claim \nAdjustment Expense \nReserves | \n\n | Discount \n(Net of \nReinsurance) | \n\n | Subtotal: \nNet Claims and \nAllocated Claim \nAdjustment \nExpense Reserves | \n\n | Reinsurance \nRecoverables on \nUnpaid Losses | \n\n | Claims and \nClaim \nAdjustment \nExpense \nReserves | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Business and International Insurance \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n General liability \n | \n\n | $ | \n7,034 | \n\n | $ | \n(168 | \n) | \n$ | \n6,866 | \n\n | $ | \n712 | \n\n | $ | \n7,578 | \n\n |
| \n Commercial property \n | \n\n | \n | 866 | \n\n | \n | — | \n\n | \n | 866 | \n\n | \n | 194 | \n\n | \n | 1,060 | \n\n |
| \n Commercial multi-peril \n | \n\n | \n | 3,414 | \n\n | \n | — | \n\n | \n | 3,414 | \n\n | \n | 81 | \n\n | \n | 3,495 | \n\n |
| \n Commercial automobile \n | \n\n | \n | 2,270 | \n\n | \n | — | \n\n | \n | 2,270 | \n\n | \n | 256 | \n\n | \n | 2,526 | \n\n |
| \n Workers' compensation(1) \n | \n\n | \n | 15,439 | \n\n | \n | (832 | \n) | \n\n | 14,607 | \n\n | \n | 729 | \n\n | \n | 15,336 | \n\n |
| \n International—Canada \n | \n\n | \n | 1,482 | \n\n | \n | — | \n\n | \n | 1,482 | \n\n | \n | 157 | \n\n | \n | 1,639 | \n\n |
| \n Bond & Specialty Insurance \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n General liability \n | \n\n | \n | 2,042 | \n\n | \n | — | \n\n | \n | 2,042 | \n\n | \n | 82 | \n\n | \n | 2,124 | \n\n |
| \n Fidelity and surety \n | \n\n | \n | 450 | \n\n | \n | — | \n\n | \n | 450 | \n\n | \n | 17 | \n\n | \n | 467 | \n\n |
| \n Personal Insurance \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Automobile \n | \n\n | \n | 2,277 | \n\n | \n | — | \n\n | \n | 2,277 | \n\n | \n | 465 | \n\n | \n | 2,742 | \n\n |
| \n Homeowners (excluding Other) \n | \n\n | \n | 742 | \n\n | \n | — | \n\n | \n | 742 | \n\n | \n | 2 | \n\n | \n | 744 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Subtotal—claims and allocated claim adjustment expenses for the products presented in the development tables below \n | \n\n | \n | 36,016 | \n\n | \n | (1,000 | \n) | \n\n | 35,016 | \n\n | \n | 2,695 | \n\n | \n | 37,711 | \n\n |
| \n Other insurance contracts(2) \n | \n\n | \n | 2,955 | \n\n | \n | (3 | \n) | \n\n | 2,952 | \n\n | \n | 2,058 | \n\n | \n | 5,010 | \n\n |
| \n Unallocated loss adjustment expense reserves \n | \n\n | \n | 1,936 | \n\n | \n | — | \n\n | \n | 1,936 | \n\n | \n | 40 | \n\n | \n | 1,976 | \n\n |
| \n Structured settlements(3) \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,168 | \n\n | \n | 3,168 | \n\n |
| \n Other \n | \n\n | \n | 44 | \n\n | \n | — | \n\n | \n | 44 | \n\n | \n | 20 | \n\n | \n | 64 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total property-casualty \n | \n\n | \n | 40,951 | \n\n | \n | (1,003 | \n) | \n\n | 39,948 | \n\n | \n | 7,981 | \n\n | \n | 47,929 | \n\n |
| \n Accident and health \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 20 | \n\n | \n | 20 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n40,951 | \n\n | $ | \n(1,003 | \n) | \n$ | \n39,948 | \n\n | $ | \n8,001 | \n\n | $ | \n47,949 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
Business and International Insurance
\nGeneral Liability
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,136 | \n\n | $ | \n1,162 | \n\n | $ | \n1,087 | \n\n | $ | \n1,089 | \n\n | $ | \n968 | \n\n | $ | \n919 | \n\n | $ | \n888 | \n\n | $ | \n883 | \n\n | $ | \n865 | \n\n | \n | \n | $ | \n824 | \n\n | $ | \n78 | \n\n | \n | 23,840 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,143 | \n\n | \n | 1,209 | \n\n | \n | 1,222 | \n\n | \n | 1,079 | \n\n | \n | 1,041 | \n\n | \n | 994 | \n\n | \n | 946 | \n\n | \n | 931 | \n\n | \n | \n | \n | 935 | \n\n | \n | 88 | \n\n | \n | 25,385 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,060 | \n\n | \n | 1,071 | \n\n | \n | 1,028 | \n\n | \n | 960 | \n\n | \n | 869 | \n\n | \n | 837 | \n\n | \n | 809 | \n\n | \n | \n | \n | 796 | \n\n | \n | 95 | \n\n | \n | 25,457 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,028 | \n\n | \n | 1,031 | \n\n | \n | 1,021 | \n\n | \n | 959 | \n\n | \n | 927 | \n\n | \n | 912 | \n\n | \n | \n | \n | 918 | \n\n | \n | 108 | \n\n | \n | 27,678 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,004 | \n\n | \n | 1,074 | \n\n | \n | 1,065 | \n\n | \n | 998 | \n\n | \n | 972 | \n\n | \n | \n | \n | 935 | \n\n | \n | 146 | \n\n | \n | 27,210 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 989 | \n\n | \n | 985 | \n\n | \n | 935 | \n\n | \n | 913 | \n\n | \n | \n | \n | 892 | \n\n | \n | 184 | \n\n | \n | 24,384 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 965 | \n\n | \n | 975 | \n\n | \n | 958 | \n\n | \n | \n | \n | 940 | \n\n | \n | 256 | \n\n | \n | 21,836 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 976 | \n\n | \n | 989 | \n\n | \n | \n | \n | 983 | \n\n | \n | 438 | \n\n | \n | 20,926 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 998 | \n\n | \n | \n | \n | 956 | \n\n | \n | 592 | \n\n | \n | 18,771 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,075 | \n\n | \n | 908 | \n\n | \n | 13,810 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n9,254 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n32 | \n\n | $ | \n134 | \n\n | $ | \n316 | \n\n | $ | \n467 | \n\n | $ | \n549 | \n\n | $ | \n632 | \n\n | $ | \n682 | \n\n | $ | \n697 | \n\n | $ | \n713 | \n\n | \n | \n | $ | \n726 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 35 | \n\n | \n | 154 | \n\n | \n | 359 | \n\n | \n | 497 | \n\n | \n | 615 | \n\n | \n | 694 | \n\n | \n | 734 | \n\n | \n | 759 | \n\n | \n | \n | \n | 799 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 167 | \n\n | \n | 314 | \n\n | \n | 446 | \n\n | \n | 543 | \n\n | \n | 613 | \n\n | \n | 643 | \n\n | \n | \n | \n | 667 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 139 | \n\n | \n | 324 | \n\n | \n | 487 | \n\n | \n | 629 | \n\n | \n | 702 | \n\n | \n | \n | \n | 756 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 47 | \n\n | \n | 187 | \n\n | \n | 355 | \n\n | \n | 539 | \n\n | \n | 660 | \n\n | \n | \n | \n | 725 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 32 | \n\n | \n | 150 | \n\n | \n | 295 | \n\n | \n | 489 | \n\n | \n | \n | \n | 589 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 175 | \n\n | \n | 363 | \n\n | \n | \n | \n | 498 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 37 | \n\n | \n | 163 | \n\n | \n | \n | \n | 321 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 36 | \n\n | \n | \n | \n | 137 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n5,253 | \n\n | $ | \n4,001 | \n\n | $ | \n3,033 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n7,034 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 3.9 | \n% | \n\n | 13.3 | \n% | \n\n | 19.1 | \n% | \n\n | 17.6 | \n% | \n\n | 12.4 | \n% | \n\n | 8.4 | \n% | \n\n | 5.0 | \n% | \n\n | 2.5 | \n% | \n\n | 3.1 | \n% | \n\n | 1.6 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Property
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n1,054 | \n\n | $ | \n988 | \n\n | $ | \n924 | \n\n | $ | \n889 | \n\n | \n | \n | $ | \n895 | \n\n | $ | \n13 | \n\n | \n | 28,183 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 789 | \n\n | \n | 755 | \n\n | \n | 737 | \n\n | \n | \n | \n | 731 | \n\n | \n | 10 | \n\n | \n | 22,141 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 936 | \n\n | \n | 860 | \n\n | \n | \n | \n | 836 | \n\n | \n | 15 | \n\n | \n | 21,490 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 786 | \n\n | \n | \n | \n | 750 | \n\n | \n | 28 | \n\n | \n | 19,859 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 896 | \n\n | \n | 131 | \n\n | \n | 19,327 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n4,108 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n453 | \n\n | $ | \n770 | \n\n | $ | \n845 | \n\n | $ | \n865 | \n\n | \n | \n | $ | \n872 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 389 | \n\n | \n | 610 | \n\n | \n | 683 | \n\n | \n | \n | \n | 703 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 464 | \n\n | \n | 710 | \n\n | \n | \n | \n | 775 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 376 | \n\n | \n | \n | \n | 615 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 441 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n3,406 | \n\n | $ | \n702 | \n\n | $ | \n164 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n866 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 51.7 | \n% | \n\n | 31.8 | \n% | \n\n | 8.7 | \n% | \n\n | 2.5 | \n% | \n\n | 0.8 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Multi-Peril
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,490 | \n\n | $ | \n1,430 | \n\n | $ | \n1,364 | \n\n | $ | \n1,402 | \n\n | $ | \n1,398 | \n\n | $ | \n1,375 | \n\n | $ | \n1,373 | \n\n | $ | \n1,369 | \n\n | $ | \n1,376 | \n\n | \n | \n | $ | \n1,369 | \n\n | $ | \n51 | \n\n | \n | 96,767 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,725 | \n\n | \n | 1,674 | \n\n | \n | 1,683 | \n\n | \n | 1,688 | \n\n | \n | 1,674 | \n\n | \n | 1,684 | \n\n | \n | 1,674 | \n\n | \n | 1,688 | \n\n | \n | \n | \n | 1,681 | \n\n | \n | 47 | \n\n | \n | 108,382 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,484 | \n\n | \n | 1,506 | \n\n | \n | 1,501 | \n\n | \n | 1,498 | \n\n | \n | 1,511 | \n\n | \n | 1,514 | \n\n | \n | 1,514 | \n\n | \n | \n | \n | 1,509 | \n\n | \n | 42 | \n\n | \n | 103,198 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,711 | \n\n | \n | 1,826 | \n\n | \n | 1,832 | \n\n | \n | 1,861 | \n\n | \n | 1,895 | \n\n | \n | 1,892 | \n\n | \n | \n | \n | 1,898 | \n\n | \n | 51 | \n\n | \n | 111,586 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,235 | \n\n | \n | 2,244 | \n\n | \n | 2,269 | \n\n | \n | 2,286 | \n\n | \n | 2,296 | \n\n | \n | \n | \n | 2,287 | \n\n | \n | 66 | \n\n | \n | 125,358 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,885 | \n\n | \n | 1,883 | \n\n | \n | 1,903 | \n\n | \n | 1,888 | \n\n | \n | \n | \n | 1,888 | \n\n | \n | 88 | \n\n | \n | 104,419 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,615 | \n\n | \n | 1,623 | \n\n | \n | 1,620 | \n\n | \n | \n | \n | 1,609 | \n\n | \n | 122 | \n\n | \n | 82,936 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,663 | \n\n | \n | 1,627 | \n\n | \n | \n | \n | 1,625 | \n\n | \n | 193 | \n\n | \n | 76,833 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,568 | \n\n | \n | \n | \n | 1,625 | \n\n | \n | 354 | \n\n | \n | 68,278 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,662 | \n\n | \n | 658 | \n\n | \n | 56,471 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n17,153 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n498 | \n\n | $ | \n824 | \n\n | $ | \n982 | \n\n | $ | \n1,110 | \n\n | $ | \n1,208 | \n\n | $ | \n1,256 | \n\n | $ | \n1,278 | \n\n | $ | \n1,296 | \n\n | $ | \n1,307 | \n\n | \n | \n | $ | \n1,312 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 712 | \n\n | \n | 1,103 | \n\n | \n | 1,264 | \n\n | \n | 1,396 | \n\n | \n | 1,490 | \n\n | \n | 1,551 | \n\n | \n | 1,581 | \n\n | \n | 1,602 | \n\n | \n | \n | \n | 1,617 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 603 | \n\n | \n | 958 | \n\n | \n | 1,121 | \n\n | \n | 1,264 | \n\n | \n | 1,360 | \n\n | \n | 1,408 | \n\n | \n | 1,436 | \n\n | \n | \n | \n | 1,449 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 709 | \n\n | \n | 1,180 | \n\n | \n | 1,395 | \n\n | \n | 1,579 | \n\n | \n | 1,698 | \n\n | \n | 1,763 | \n\n | \n | \n | \n | 1,798 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,060 | \n\n | \n | 1,573 | \n\n | \n | 1,803 | \n\n | \n | 1,979 | \n\n | \n | 2,088 | \n\n | \n | \n | \n | 2,156 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 795 | \n\n | \n | 1,246 | \n\n | \n | 1,424 | \n\n | \n | 1,590 | \n\n | \n | \n | \n | 1,699 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 644 | \n\n | \n | 987 | \n\n | \n | 1,167 | \n\n | \n | \n | \n | 1,304 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 628 | \n\n | \n | 956 | \n\n | \n | \n | \n | 1,154 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 595 | \n\n | \n | \n | \n | 970 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 585 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n14,044 | \n\n | $ | \n3,109 | \n\n | $ | \n305 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n3,414 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 39.5 | \n% | \n\n | 22.9 | \n% | \n\n | 10.8 | \n% | \n\n | 8.8 | \n% | \n\n | 6.0 | \n% | \n\n | 3.3 | \n% | \n\n | 1.8 | \n% | \n\n | 1.1 | \n% | \n\n | 0.9 | \n% | \n\n | 0.4 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Automobile
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n1,294 | \n\n | $ | \n1,350 | \n\n | $ | \n1,327 | \n\n | $ | \n1,325 | \n\n | \n | \n | $ | \n1,337 | \n\n | $ | \n35 | \n\n | \n | 214,780 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,235 | \n\n | \n | 1,236 | \n\n | \n | 1,240 | \n\n | \n | \n | \n | 1,245 | \n\n | \n | 67 | \n\n | \n | 197,041 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,165 | \n\n | \n | 1,166 | \n\n | \n | \n | \n | 1,168 | \n\n | \n | 131 | \n\n | \n | 184,067 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,198 | \n\n | \n | \n | \n | 1,215 | \n\n | \n | 246 | \n\n | \n | 179,963 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,290 | \n\n | \n | 516 | \n\n | \n | 173,790 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n6,255 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n467 | \n\n | $ | \n753 | \n\n | $ | \n960 | \n\n | $ | \n1,134 | \n\n | \n | \n | $ | \n1,235 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 435 | \n\n | \n | 675 | \n\n | \n | 884 | \n\n | \n | \n | \n | 1,039 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 397 | \n\n | \n | 618 | \n\n | \n | \n | \n | 821 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 409 | \n\n | \n | \n | \n | 658 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 416 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n4,169 | \n\n | $ | \n2,086 | \n\n | $ | \n184 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,270 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 34.0 | \n% | \n\n | 20.0 | \n% | \n\n | 16.6 | \n% | \n\n | 12.7 | \n% | \n\n | 7.6 | \n% | \n\n | \n | \n | \n | \n | \n |
Workers' Compensation
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,554 | \n\n | $ | \n1,519 | \n\n | $ | \n1,484 | \n\n | $ | \n1,448 | \n\n | $ | \n1,390 | \n\n | $ | \n1,373 | \n\n | $ | \n1,358 | \n\n | $ | \n1,340 | \n\n | $ | \n1,328 | \n\n | \n | \n | $ | \n1,341 | \n\n | $ | \n217 | \n\n | \n | 103,064 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,714 | \n\n | \n | 1,745 | \n\n | \n | 1,734 | \n\n | \n | 1,683 | \n\n | \n | 1,639 | \n\n | \n | 1,634 | \n\n | \n | 1,621 | \n\n | \n | 1,617 | \n\n | \n | \n | \n | 1,617 | \n\n | \n | 237 | \n\n | \n | 107,565 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,799 | \n\n | \n | 1,778 | \n\n | \n | 1,746 | \n\n | \n | 1,753 | \n\n | \n | 1,753 | \n\n | \n | 1,766 | \n\n | \n | 1,775 | \n\n | \n | \n | \n | 1,750 | \n\n | \n | 272 | \n\n | \n | 104,229 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,886 | \n\n | \n | 2,042 | \n\n | \n | 2,035 | \n\n | \n | 2,056 | \n\n | \n | 2,049 | \n\n | \n | 2,052 | \n\n | \n | \n | \n | 2,055 | \n\n | \n | 354 | \n\n | \n | 116,837 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,284 | \n\n | \n | 2,303 | \n\n | \n | 2,347 | \n\n | \n | 2,350 | \n\n | \n | 2,379 | \n\n | \n | \n | \n | 2,385 | \n\n | \n | 430 | \n\n | \n | 135,061 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,447 | \n\n | \n | 2,456 | \n\n | \n | 2,457 | \n\n | \n | 2,456 | \n\n | \n | \n | \n | 2,445 | \n\n | \n | 519 | \n\n | \n | 133,417 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,553 | \n\n | \n | 2,545 | \n\n | \n | 2,540 | \n\n | \n | \n | \n | 2,506 | \n\n | \n | 651 | \n\n | \n | 128,111 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,554 | \n\n | \n | 2,553 | \n\n | \n | \n | \n | 2,547 | \n\n | \n | 839 | \n\n | \n | 123,110 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,644 | \n\n | \n | \n | \n | 2,585 | \n\n | \n | 1,142 | \n\n | \n | 120,681 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,768 | \n\n | \n | 1,651 | \n\n | \n | 108,357 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n21,999 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n216 | \n\n | $ | \n450 | \n\n | $ | \n589 | \n\n | $ | \n683 | \n\n | $ | \n747 | \n\n | $ | \n802 | \n\n | $ | \n845 | \n\n | $ | \n880 | \n\n | $ | \n910 | \n\n | \n | \n | $ | \n936 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 274 | \n\n | \n | 571 | \n\n | \n | 752 | \n\n | \n | 875 | \n\n | \n | 961 | \n\n | \n | 1,036 | \n\n | \n | 1,088 | \n\n | \n | 1,130 | \n\n | \n | \n | \n | 1,162 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 288 | \n\n | \n | 623 | \n\n | \n | 828 | \n\n | \n | 961 | \n\n | \n | 1,065 | \n\n | \n | 1,137 | \n\n | \n | 1,193 | \n\n | \n | \n | \n | 1,235 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 341 | \n\n | \n | 750 | \n\n | \n | 978 | \n\n | \n | 1,133 | \n\n | \n | 1,246 | \n\n | \n | 1,321 | \n\n | \n | \n | \n | 1,385 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 420 | \n\n | \n | 911 | \n\n | \n | 1,185 | \n\n | \n | 1,365 | \n\n | \n | 1,487 | \n\n | \n | \n | \n | 1,583 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 443 | \n\n | \n | 940 | \n\n | \n | 1,217 | \n\n | \n | 1,394 | \n\n | \n | \n | \n | 1,536 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 458 | \n\n | \n | 954 | \n\n | \n | 1,237 | \n\n | \n | \n | \n | 1,413 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 455 | \n\n | \n | 944 | \n\n | \n | \n | \n | 1,224 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 430 | \n\n | \n | \n | \n | 893 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 421 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n11,788 | \n\n | $ | \n10,211 | \n\n | $ | \n5,228 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n15,439 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 17.0 | \n% | \n\n | 19.2 | \n% | \n\n | 11.2 | \n% | \n\n | 7.4 | \n% | \n\n | 5.4 | \n% | \n\n | 4.1 | \n% | \n\n | 3.2 | \n% | \n\n | 2.5 | \n% | \n\n | 2.1 | \n% | \n\n | 1.9 | \n% | \n\n | \n | \n | \n | \n | \n |
International—Canada
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n632 | \n\n | $ | \n626 | \n\n | $ | \n616 | \n\n | $ | \n608 | \n\n | $ | \n607 | \n\n | $ | \n609 | \n\n | $ | \n611 | \n\n | $ | \n608 | \n\n | $ | \n601 | \n\n | \n | \n | $ | \n597 | \n\n | $ | \n4 | \n\n | \n | 66,327 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 681 | \n\n | \n | 685 | \n\n | \n | 670 | \n\n | \n | 665 | \n\n | \n | 658 | \n\n | \n | 655 | \n\n | \n | 651 | \n\n | \n | 646 | \n\n | \n | \n | \n | 642 | \n\n | \n | 5 | \n\n | \n | 71,803 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 724 | \n\n | \n | 718 | \n\n | \n | 707 | \n\n | \n | 714 | \n\n | \n | 714 | \n\n | \n | 702 | \n\n | \n | 696 | \n\n | \n | \n | \n | 690 | \n\n | \n | 13 | \n\n | \n | 71,671 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 715 | \n\n | \n | 722 | \n\n | \n | 721 | \n\n | \n | 735 | \n\n | \n | 724 | \n\n | \n | 715 | \n\n | \n | \n | \n | 706 | \n\n | \n | 20 | \n\n | \n | 71,437 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 723 | \n\n | \n | 696 | \n\n | \n | 686 | \n\n | \n | 682 | \n\n | \n | 678 | \n\n | \n | \n | \n | 669 | \n\n | \n | 30 | \n\n | \n | 72,063 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 664 | \n\n | \n | 642 | \n\n | \n | 631 | \n\n | \n | 611 | \n\n | \n | \n | \n | 616 | \n\n | \n | 50 | \n\n | \n | 67,320 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 723 | \n\n | \n | 717 | \n\n | \n | 701 | \n\n | \n | \n | \n | 685 | \n\n | \n | 56 | \n\n | \n | 71,183 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 665 | \n\n | \n | 678 | \n\n | \n | \n | \n | 682 | \n\n | \n | 83 | \n\n | \n | 67,935 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 597 | \n\n | \n | \n | \n | 610 | \n\n | \n | 112 | \n\n | \n | 58,238 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 612 | \n\n | \n | 102 | \n\n | \n | 54,948 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n6,509 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n228 | \n\n | $ | \n355 | \n\n | $ | \n410 | \n\n | $ | \n450 | \n\n | $ | \n488 | \n\n | $ | \n524 | \n\n | $ | \n547 | \n\n | $ | \n561 | \n\n | $ | \n570 | \n\n | \n | \n | $ | \n578 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 256 | \n\n | \n | 406 | \n\n | \n | 460 | \n\n | \n | 501 | \n\n | \n | 543 | \n\n | \n | 579 | \n\n | \n | 603 | \n\n | \n | 616 | \n\n | \n | \n | \n | 622 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 274 | \n\n | \n | 419 | \n\n | \n | 479 | \n\n | \n | 525 | \n\n | \n | 573 | \n\n | \n | 608 | \n\n | \n | 630 | \n\n | \n | \n | \n | 648 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 258 | \n\n | \n | 403 | \n\n | \n | 465 | \n\n | \n | 522 | \n\n | \n | 573 | \n\n | \n | 615 | \n\n | \n | \n | \n | 641 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 253 | \n\n | \n | 380 | \n\n | \n | 432 | \n\n | \n | 481 | \n\n | \n | 538 | \n\n | \n | \n | \n | 571 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 225 | \n\n | \n | 336 | \n\n | \n | 389 | \n\n | \n | 435 | \n\n | \n | \n | \n | 482 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 260 | \n\n | \n | 388 | \n\n | \n | 439 | \n\n | \n | \n | \n | 494 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 252 | \n\n | \n | 382 | \n\n | \n | \n | \n | 445 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 228 | \n\n | \n | \n | \n | 346 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 295 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n5,122 | \n\n | $ | \n1,387 | \n\n | $ | \n95 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n1,482 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 38.9 | \n% | \n\n | 20.0 | \n% | \n\n | 8.5 | \n% | \n\n | 7.2 | \n% | \n\n | 7.2 | \n% | \n\n | 5.5 | \n% | \n\n | 3.6 | \n% | \n\n | 2.3 | \n% | \n\n | 1.2 | \n% | \n\n | 1.4 | \n% | \n\n | \n | \n | \n | \n | \n |
The incurred and paid amounts have been translated from the local currency to U.S. dollars using the December 31, 2016 spot rate for all years presented in the table above in order to isolate changes in foreign exchange rates from loss development.
\nBond & Specialty Insurance
\nGeneral Liability
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n584 | \n\n | $ | \n571 | \n\n | $ | \n638 | \n\n | $ | \n582 | \n\n | $ | \n551 | \n\n | $ | \n511 | \n\n | $ | \n479 | \n\n | $ | \n467 | \n\n | $ | \n462 | \n\n | \n | \n | $ | \n454 | \n\n | $ | \n4 | \n\n | \n | 11,018 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 579 | \n\n | \n | 769 | \n\n | \n | 743 | \n\n | \n | 697 | \n\n | \n | 716 | \n\n | \n | 712 | \n\n | \n | 672 | \n\n | \n | 643 | \n\n | \n | \n | \n | 631 | \n\n | \n | 24 | \n\n | \n | 6,463 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 592 | \n\n | \n | 624 | \n\n | \n | 665 | \n\n | \n | 686 | \n\n | \n | 680 | \n\n | \n | 660 | \n\n | \n | 655 | \n\n | \n | \n | \n | 641 | \n\n | \n | 24 | \n\n | \n | 6,287 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 571 | \n\n | \n | 612 | \n\n | \n | 679 | \n\n | \n | 679 | \n\n | \n | 661 | \n\n | \n | 668 | \n\n | \n | \n | \n | 653 | \n\n | \n | 18 | \n\n | \n | 5,655 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 565 | \n\n | \n | 596 | \n\n | \n | 639 | \n\n | \n | 632 | \n\n | \n | 601 | \n\n | \n | \n | \n | 545 | \n\n | \n | 34 | \n\n | \n | 5,191 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 538 | \n\n | \n | 591 | \n\n | \n | 614 | \n\n | \n | 605 | \n\n | \n | \n | \n | 601 | \n\n | \n | 137 | \n\n | \n | 4,824 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 510 | \n\n | \n | 565 | \n\n | \n | 606 | \n\n | \n | \n | \n | 630 | \n\n | \n | 204 | \n\n | \n | 4,371 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 549 | \n\n | \n | 571 | \n\n | \n | \n | \n | 563 | \n\n | \n | 232 | \n\n | \n | 4,182 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 528 | \n\n | \n | \n | \n | 524 | \n\n | \n | 272 | \n\n | \n | 3,814 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 512 | \n\n | \n | 405 | \n\n | \n | 2,676 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n5,754 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n35 | \n\n | $ | \n134 | \n\n | $ | \n229 | \n\n | $ | \n303 | \n\n | $ | \n357 | \n\n | $ | \n373 | \n\n | $ | \n393 | \n\n | $ | \n400 | \n\n | $ | \n410 | \n\n | \n | \n | $ | \n415 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 47 | \n\n | \n | 157 | \n\n | \n | 281 | \n\n | \n | 387 | \n\n | \n | 471 | \n\n | \n | 529 | \n\n | \n | 562 | \n\n | \n | 579 | \n\n | \n | \n | \n | 590 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 36 | \n\n | \n | 167 | \n\n | \n | 310 | \n\n | \n | 390 | \n\n | \n | 460 | \n\n | \n | 497 | \n\n | \n | 563 | \n\n | \n | \n | \n | 592 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 33 | \n\n | \n | 152 | \n\n | \n | 291 | \n\n | \n | 396 | \n\n | \n | 482 | \n\n | \n | 565 | \n\n | \n | \n | \n | 597 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 33 | \n\n | \n | 143 | \n\n | \n | 249 | \n\n | \n | 324 | \n\n | \n | 414 | \n\n | \n | \n | \n | 447 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | 160 | \n\n | \n | 255 | \n\n | \n | 342 | \n\n | \n | \n | \n | 383 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 34 | \n\n | \n | 154 | \n\n | \n | 252 | \n\n | \n | \n | \n | 352 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | 150 | \n\n | \n | \n | \n | 239 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | \n | \n | 141 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 30 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n3,786 | \n\n | $ | \n1,968 | \n\n | $ | \n74 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,042 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 6.3 | \n% | \n\n | 19.7 | \n% | \n\n | 18.8 | \n% | \n\n | 15.1 | \n% | \n\n | 12.1 | \n% | \n\n | 7.5 | \n% | \n\n | 6.2 | \n% | \n\n | 3.0 | \n% | \n\n | 1.9 | \n% | \n\n | 1.1 | \n% | \n\n | \n | \n | \n | \n | \n |
Fidelity and Surety
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n255 | \n\n | $ | \n262 | \n\n | $ | \n249 | \n\n | $ | \n175 | \n\n | \n | \n | $ | \n140 | \n\n | $ | \n9 | \n\n | \n | 1,148 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 240 | \n\n | \n | 246 | \n\n | \n | 199 | \n\n | \n | \n | \n | 146 | \n\n | \n | 6 | \n\n | \n | 1,006 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 223 | \n\n | \n | 212 | \n\n | \n | \n | \n | 165 | \n\n | \n | 32 | \n\n | \n | 992 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 217 | \n\n | \n | \n | \n | 191 | \n\n | \n | 79 | \n\n | \n | 768 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 226 | \n\n | \n | 128 | \n\n | \n | 595 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n868 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n42 | \n\n | $ | \n108 | \n\n | $ | \n124 | \n\n | $ | \n110 | \n\n | \n | \n | $ | \n111 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 37 | \n\n | \n | 113 | \n\n | \n | 128 | \n\n | \n | \n | \n | 131 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 58 | \n\n | \n | 96 | \n\n | \n | \n | \n | 111 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 32 | \n\n | \n | \n | \n | 75 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 54 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n482 | \n\n | $ | \n386 | \n\n | $ | \n64 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n450 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 26.1 | \n% | \n\n | 36.2 | \n% | \n\n | 10.1 | \n% | \n\n | (3.6)%(1 | \n) | \n\n | 0.8 | \n% | \n\n | \n | \n | \n | \n | \n |
Personal Insurance
\nAutomobile
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n2,417 | \n\n | $ | \n2,454 | \n\n | $ | \n2,448 | \n\n | $ | \n2,432 | \n\n | \n | \n | $ | \n2,428 | \n\n | $ | \n15 | \n\n | \n | 793,669 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 2,108 | \n\n | \n | 2,095 | \n\n | \n | 2,049 | \n\n | \n | \n | \n | 2,044 | \n\n | \n | 36 | \n\n | \n | 694,650 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 2,014 | \n\n | \n | 1,994 | \n\n | \n | \n | \n | 1,981 | \n\n | \n | 75 | \n\n | \n | 669,990 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,186 | \n\n | \n | \n | \n | 2,244 | \n\n | \n | 224 | \n\n | \n | 755,762 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,779 | \n\n | \n | 646 | \n\n | \n | 839,962 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n11,476 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n1,503 | \n\n | $ | \n1,983 | \n\n | $ | \n2,189 | \n\n | $ | \n2,311 | \n\n | \n | \n | $ | \n2,376 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,251 | \n\n | \n | 1,628 | \n\n | \n | 1,814 | \n\n | \n | \n | \n | 1,935 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,193 | \n\n | \n | 1,564 | \n\n | \n | \n | \n | 1,763 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,319 | \n\n | \n | \n | \n | 1,768 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,610 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n9,452 | \n\n | $ | \n2,024 | \n\n | $ | \n253 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,277 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 60.0 | \n% | \n\n | 19.2 | \n% | \n\n | 9.2 | \n% | \n\n | 5.5 | \n% | \n\n | 2.7 | \n% | \n\n | \n | \n | \n | \n | \n |
Homeowners (excluding Other)
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n2,136 | \n\n | $ | \n2,056 | \n\n | $ | \n2,029 | \n\n | $ | \n2,018 | \n\n | \n | \n | $ | \n2,019 | \n\n | $ | \n1 | \n\n | \n | 259,006 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,488 | \n\n | \n | 1,397 | \n\n | \n | 1,365 | \n\n | \n | \n | \n | 1,375 | \n\n | \n | 4 | \n\n | \n | 149,373 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,515 | \n\n | \n | 1,450 | \n\n | \n | \n | \n | 1,453 | \n\n | \n | 9 | \n\n | \n | 151,517 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,438 | \n\n | \n | \n | \n | 1,454 | \n\n | \n | 28 | \n\n | \n | 144,367 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,556 | \n\n | \n | 307 | \n\n | \n | 129,630 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | Total | \n\n | \n | \n | $ | \n7,857 | \n\n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n1,508 | \n\n | $ | \n1,901 | \n\n | $ | \n1,964 | \n\n | $ | \n1,993 | \n\n | \n | \n | $ | \n2,008 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 994 | \n\n | \n | 1,269 | \n\n | \n | 1,317 | \n\n | \n | \n | \n | 1,344 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,053 | \n\n | \n | 1,338 | \n\n | \n | \n | \n | 1,402 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 994 | \n\n | \n | \n | \n | 1,333 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,049 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n7,136 | \n\n | $ | \n721 | \n\n | $ | \n21 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n742 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 71.1 | \n% | \n\n | 20.6 | \n% | \n\n | 3.7 | \n% | \n\n | 1.7 | \n% | \n\n | 0.7 | \n% | \n\n | \n | \n | \n | \n | \n |
Business and International Insurance
\nGeneral Liability
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,136 | \n\n | $ | \n1,162 | \n\n | $ | \n1,087 | \n\n | $ | \n1,089 | \n\n | $ | \n968 | \n\n | $ | \n919 | \n\n | $ | \n888 | \n\n | $ | \n883 | \n\n | $ | \n865 | \n\n | \n | \n | $ | \n824 | \n\n | $ | \n78 | \n\n | \n | 23,840 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,143 | \n\n | \n | 1,209 | \n\n | \n | 1,222 | \n\n | \n | 1,079 | \n\n | \n | 1,041 | \n\n | \n | 994 | \n\n | \n | 946 | \n\n | \n | 931 | \n\n | \n | \n | \n | 935 | \n\n | \n | 88 | \n\n | \n | 25,385 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,060 | \n\n | \n | 1,071 | \n\n | \n | 1,028 | \n\n | \n | 960 | \n\n | \n | 869 | \n\n | \n | 837 | \n\n | \n | 809 | \n\n | \n | \n | \n | 796 | \n\n | \n | 95 | \n\n | \n | 25,457 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,028 | \n\n | \n | 1,031 | \n\n | \n | 1,021 | \n\n | \n | 959 | \n\n | \n | 927 | \n\n | \n | 912 | \n\n | \n | \n | \n | 918 | \n\n | \n | 108 | \n\n | \n | 27,678 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,004 | \n\n | \n | 1,074 | \n\n | \n | 1,065 | \n\n | \n | 998 | \n\n | \n | 972 | \n\n | \n | \n | \n | 935 | \n\n | \n | 146 | \n\n | \n | 27,210 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 989 | \n\n | \n | 985 | \n\n | \n | 935 | \n\n | \n | 913 | \n\n | \n | \n | \n | 892 | \n\n | \n | 184 | \n\n | \n | 24,384 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 965 | \n\n | \n | 975 | \n\n | \n | 958 | \n\n | \n | \n | \n | 940 | \n\n | \n | 256 | \n\n | \n | 21,836 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 976 | \n\n | \n | 989 | \n\n | \n | \n | \n | 983 | \n\n | \n | 438 | \n\n | \n | 20,926 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 998 | \n\n | \n | \n | \n | 956 | \n\n | \n | 592 | \n\n | \n | 18,771 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,075 | \n\n | \n | 908 | \n\n | \n | 13,810 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n9,254 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n32 | \n\n | $ | \n134 | \n\n | $ | \n316 | \n\n | $ | \n467 | \n\n | $ | \n549 | \n\n | $ | \n632 | \n\n | $ | \n682 | \n\n | $ | \n697 | \n\n | $ | \n713 | \n\n | \n | \n | $ | \n726 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 35 | \n\n | \n | 154 | \n\n | \n | 359 | \n\n | \n | 497 | \n\n | \n | 615 | \n\n | \n | 694 | \n\n | \n | 734 | \n\n | \n | 759 | \n\n | \n | \n | \n | 799 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 167 | \n\n | \n | 314 | \n\n | \n | 446 | \n\n | \n | 543 | \n\n | \n | 613 | \n\n | \n | 643 | \n\n | \n | \n | \n | 667 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 139 | \n\n | \n | 324 | \n\n | \n | 487 | \n\n | \n | 629 | \n\n | \n | 702 | \n\n | \n | \n | \n | 756 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 47 | \n\n | \n | 187 | \n\n | \n | 355 | \n\n | \n | 539 | \n\n | \n | 660 | \n\n | \n | \n | \n | 725 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 32 | \n\n | \n | 150 | \n\n | \n | 295 | \n\n | \n | 489 | \n\n | \n | \n | \n | 589 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 175 | \n\n | \n | 363 | \n\n | \n | \n | \n | 498 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 37 | \n\n | \n | 163 | \n\n | \n | \n | \n | 321 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 36 | \n\n | \n | \n | \n | 137 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 35 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n5,253 | \n\n | $ | \n4,001 | \n\n | $ | \n3,033 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n7,034 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 3.9 | \n% | \n\n | 13.3 | \n% | \n\n | 19.1 | \n% | \n\n | 17.6 | \n% | \n\n | 12.4 | \n% | \n\n | 8.4 | \n% | \n\n | 5.0 | \n% | \n\n | 2.5 | \n% | \n\n | 3.1 | \n% | \n\n | 1.6 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Property
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n1,054 | \n\n | $ | \n988 | \n\n | $ | \n924 | \n\n | $ | \n889 | \n\n | \n | \n | $ | \n895 | \n\n | $ | \n13 | \n\n | \n | 28,183 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 789 | \n\n | \n | 755 | \n\n | \n | 737 | \n\n | \n | \n | \n | 731 | \n\n | \n | 10 | \n\n | \n | 22,141 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 936 | \n\n | \n | 860 | \n\n | \n | \n | \n | 836 | \n\n | \n | 15 | \n\n | \n | 21,490 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 786 | \n\n | \n | \n | \n | 750 | \n\n | \n | 28 | \n\n | \n | 19,859 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 896 | \n\n | \n | 131 | \n\n | \n | 19,327 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n4,108 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n453 | \n\n | $ | \n770 | \n\n | $ | \n845 | \n\n | $ | \n865 | \n\n | \n | \n | $ | \n872 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 389 | \n\n | \n | 610 | \n\n | \n | 683 | \n\n | \n | \n | \n | 703 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 464 | \n\n | \n | 710 | \n\n | \n | \n | \n | 775 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 376 | \n\n | \n | \n | \n | 615 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 441 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n3,406 | \n\n | $ | \n702 | \n\n | $ | \n164 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n866 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 51.7 | \n% | \n\n | 31.8 | \n% | \n\n | 8.7 | \n% | \n\n | 2.5 | \n% | \n\n | 0.8 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Multi-Peril
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,490 | \n\n | $ | \n1,430 | \n\n | $ | \n1,364 | \n\n | $ | \n1,402 | \n\n | $ | \n1,398 | \n\n | $ | \n1,375 | \n\n | $ | \n1,373 | \n\n | $ | \n1,369 | \n\n | $ | \n1,376 | \n\n | \n | \n | $ | \n1,369 | \n\n | $ | \n51 | \n\n | \n | 96,767 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,725 | \n\n | \n | 1,674 | \n\n | \n | 1,683 | \n\n | \n | 1,688 | \n\n | \n | 1,674 | \n\n | \n | 1,684 | \n\n | \n | 1,674 | \n\n | \n | 1,688 | \n\n | \n | \n | \n | 1,681 | \n\n | \n | 47 | \n\n | \n | 108,382 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,484 | \n\n | \n | 1,506 | \n\n | \n | 1,501 | \n\n | \n | 1,498 | \n\n | \n | 1,511 | \n\n | \n | 1,514 | \n\n | \n | 1,514 | \n\n | \n | \n | \n | 1,509 | \n\n | \n | 42 | \n\n | \n | 103,198 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,711 | \n\n | \n | 1,826 | \n\n | \n | 1,832 | \n\n | \n | 1,861 | \n\n | \n | 1,895 | \n\n | \n | 1,892 | \n\n | \n | \n | \n | 1,898 | \n\n | \n | 51 | \n\n | \n | 111,586 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,235 | \n\n | \n | 2,244 | \n\n | \n | 2,269 | \n\n | \n | 2,286 | \n\n | \n | 2,296 | \n\n | \n | \n | \n | 2,287 | \n\n | \n | 66 | \n\n | \n | 125,358 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,885 | \n\n | \n | 1,883 | \n\n | \n | 1,903 | \n\n | \n | 1,888 | \n\n | \n | \n | \n | 1,888 | \n\n | \n | 88 | \n\n | \n | 104,419 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,615 | \n\n | \n | 1,623 | \n\n | \n | 1,620 | \n\n | \n | \n | \n | 1,609 | \n\n | \n | 122 | \n\n | \n | 82,936 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,663 | \n\n | \n | 1,627 | \n\n | \n | \n | \n | 1,625 | \n\n | \n | 193 | \n\n | \n | 76,833 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,568 | \n\n | \n | \n | \n | 1,625 | \n\n | \n | 354 | \n\n | \n | 68,278 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,662 | \n\n | \n | 658 | \n\n | \n | 56,471 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n17,153 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n498 | \n\n | $ | \n824 | \n\n | $ | \n982 | \n\n | $ | \n1,110 | \n\n | $ | \n1,208 | \n\n | $ | \n1,256 | \n\n | $ | \n1,278 | \n\n | $ | \n1,296 | \n\n | $ | \n1,307 | \n\n | \n | \n | $ | \n1,312 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 712 | \n\n | \n | 1,103 | \n\n | \n | 1,264 | \n\n | \n | 1,396 | \n\n | \n | 1,490 | \n\n | \n | 1,551 | \n\n | \n | 1,581 | \n\n | \n | 1,602 | \n\n | \n | \n | \n | 1,617 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 603 | \n\n | \n | 958 | \n\n | \n | 1,121 | \n\n | \n | 1,264 | \n\n | \n | 1,360 | \n\n | \n | 1,408 | \n\n | \n | 1,436 | \n\n | \n | \n | \n | 1,449 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 709 | \n\n | \n | 1,180 | \n\n | \n | 1,395 | \n\n | \n | 1,579 | \n\n | \n | 1,698 | \n\n | \n | 1,763 | \n\n | \n | \n | \n | 1,798 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,060 | \n\n | \n | 1,573 | \n\n | \n | 1,803 | \n\n | \n | 1,979 | \n\n | \n | 2,088 | \n\n | \n | \n | \n | 2,156 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 795 | \n\n | \n | 1,246 | \n\n | \n | 1,424 | \n\n | \n | 1,590 | \n\n | \n | \n | \n | 1,699 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 644 | \n\n | \n | 987 | \n\n | \n | 1,167 | \n\n | \n | \n | \n | 1,304 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 628 | \n\n | \n | 956 | \n\n | \n | \n | \n | 1,154 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 595 | \n\n | \n | \n | \n | 970 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 585 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n14,044 | \n\n | $ | \n3,109 | \n\n | $ | \n305 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n3,414 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 39.5 | \n% | \n\n | 22.9 | \n% | \n\n | 10.8 | \n% | \n\n | 8.8 | \n% | \n\n | 6.0 | \n% | \n\n | 3.3 | \n% | \n\n | 1.8 | \n% | \n\n | 1.1 | \n% | \n\n | 0.9 | \n% | \n\n | 0.4 | \n% | \n\n | \n | \n | \n | \n | \n |
Commercial Automobile
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n1,294 | \n\n | $ | \n1,350 | \n\n | $ | \n1,327 | \n\n | $ | \n1,325 | \n\n | \n | \n | $ | \n1,337 | \n\n | $ | \n35 | \n\n | \n | 214,780 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,235 | \n\n | \n | 1,236 | \n\n | \n | 1,240 | \n\n | \n | \n | \n | 1,245 | \n\n | \n | 67 | \n\n | \n | 197,041 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,165 | \n\n | \n | 1,166 | \n\n | \n | \n | \n | 1,168 | \n\n | \n | 131 | \n\n | \n | 184,067 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,198 | \n\n | \n | \n | \n | 1,215 | \n\n | \n | 246 | \n\n | \n | 179,963 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,290 | \n\n | \n | 516 | \n\n | \n | 173,790 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n6,255 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n467 | \n\n | $ | \n753 | \n\n | $ | \n960 | \n\n | $ | \n1,134 | \n\n | \n | \n | $ | \n1,235 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 435 | \n\n | \n | 675 | \n\n | \n | 884 | \n\n | \n | \n | \n | 1,039 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 397 | \n\n | \n | 618 | \n\n | \n | \n | \n | 821 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 409 | \n\n | \n | \n | \n | 658 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 416 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n4,169 | \n\n | $ | \n2,086 | \n\n | $ | \n184 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,270 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 34.0 | \n% | \n\n | 20.0 | \n% | \n\n | 16.6 | \n% | \n\n | 12.7 | \n% | \n\n | 7.6 | \n% | \n\n | \n | \n | \n | \n | \n |
Workers' Compensation
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n1,554 | \n\n | $ | \n1,519 | \n\n | $ | \n1,484 | \n\n | $ | \n1,448 | \n\n | $ | \n1,390 | \n\n | $ | \n1,373 | \n\n | $ | \n1,358 | \n\n | $ | \n1,340 | \n\n | $ | \n1,328 | \n\n | \n | \n | $ | \n1,341 | \n\n | $ | \n217 | \n\n | \n | 103,064 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 1,714 | \n\n | \n | 1,745 | \n\n | \n | 1,734 | \n\n | \n | 1,683 | \n\n | \n | 1,639 | \n\n | \n | 1,634 | \n\n | \n | 1,621 | \n\n | \n | 1,617 | \n\n | \n | \n | \n | 1,617 | \n\n | \n | 237 | \n\n | \n | 107,565 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,799 | \n\n | \n | 1,778 | \n\n | \n | 1,746 | \n\n | \n | 1,753 | \n\n | \n | 1,753 | \n\n | \n | 1,766 | \n\n | \n | 1,775 | \n\n | \n | \n | \n | 1,750 | \n\n | \n | 272 | \n\n | \n | 104,229 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,886 | \n\n | \n | 2,042 | \n\n | \n | 2,035 | \n\n | \n | 2,056 | \n\n | \n | 2,049 | \n\n | \n | 2,052 | \n\n | \n | \n | \n | 2,055 | \n\n | \n | 354 | \n\n | \n | 116,837 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,284 | \n\n | \n | 2,303 | \n\n | \n | 2,347 | \n\n | \n | 2,350 | \n\n | \n | 2,379 | \n\n | \n | \n | \n | 2,385 | \n\n | \n | 430 | \n\n | \n | 135,061 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,447 | \n\n | \n | 2,456 | \n\n | \n | 2,457 | \n\n | \n | 2,456 | \n\n | \n | \n | \n | 2,445 | \n\n | \n | 519 | \n\n | \n | 133,417 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,553 | \n\n | \n | 2,545 | \n\n | \n | 2,540 | \n\n | \n | \n | \n | 2,506 | \n\n | \n | 651 | \n\n | \n | 128,111 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,554 | \n\n | \n | 2,553 | \n\n | \n | \n | \n | 2,547 | \n\n | \n | 839 | \n\n | \n | 123,110 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,644 | \n\n | \n | \n | \n | 2,585 | \n\n | \n | 1,142 | \n\n | \n | 120,681 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,768 | \n\n | \n | 1,651 | \n\n | \n | 108,357 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n21,999 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n216 | \n\n | $ | \n450 | \n\n | $ | \n589 | \n\n | $ | \n683 | \n\n | $ | \n747 | \n\n | $ | \n802 | \n\n | $ | \n845 | \n\n | $ | \n880 | \n\n | $ | \n910 | \n\n | \n | \n | $ | \n936 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 274 | \n\n | \n | 571 | \n\n | \n | 752 | \n\n | \n | 875 | \n\n | \n | 961 | \n\n | \n | 1,036 | \n\n | \n | 1,088 | \n\n | \n | 1,130 | \n\n | \n | \n | \n | 1,162 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 288 | \n\n | \n | 623 | \n\n | \n | 828 | \n\n | \n | 961 | \n\n | \n | 1,065 | \n\n | \n | 1,137 | \n\n | \n | 1,193 | \n\n | \n | \n | \n | 1,235 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 341 | \n\n | \n | 750 | \n\n | \n | 978 | \n\n | \n | 1,133 | \n\n | \n | 1,246 | \n\n | \n | 1,321 | \n\n | \n | \n | \n | 1,385 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 420 | \n\n | \n | 911 | \n\n | \n | 1,185 | \n\n | \n | 1,365 | \n\n | \n | 1,487 | \n\n | \n | \n | \n | 1,583 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 443 | \n\n | \n | 940 | \n\n | \n | 1,217 | \n\n | \n | 1,394 | \n\n | \n | \n | \n | 1,536 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 458 | \n\n | \n | 954 | \n\n | \n | 1,237 | \n\n | \n | \n | \n | 1,413 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 455 | \n\n | \n | 944 | \n\n | \n | \n | \n | 1,224 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 430 | \n\n | \n | \n | \n | 893 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 421 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n11,788 | \n\n | $ | \n10,211 | \n\n | $ | \n5,228 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n15,439 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 17.0 | \n% | \n\n | 19.2 | \n% | \n\n | 11.2 | \n% | \n\n | 7.4 | \n% | \n\n | 5.4 | \n% | \n\n | 4.1 | \n% | \n\n | 3.2 | \n% | \n\n | 2.5 | \n% | \n\n | 2.1 | \n% | \n\n | 1.9 | \n% | \n\n | \n | \n | \n | \n | \n |
International—Canada
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n632 | \n\n | $ | \n626 | \n\n | $ | \n616 | \n\n | $ | \n608 | \n\n | $ | \n607 | \n\n | $ | \n609 | \n\n | $ | \n611 | \n\n | $ | \n608 | \n\n | $ | \n601 | \n\n | \n | \n | $ | \n597 | \n\n | $ | \n4 | \n\n | \n | 66,327 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 681 | \n\n | \n | 685 | \n\n | \n | 670 | \n\n | \n | 665 | \n\n | \n | 658 | \n\n | \n | 655 | \n\n | \n | 651 | \n\n | \n | 646 | \n\n | \n | \n | \n | 642 | \n\n | \n | 5 | \n\n | \n | 71,803 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 724 | \n\n | \n | 718 | \n\n | \n | 707 | \n\n | \n | 714 | \n\n | \n | 714 | \n\n | \n | 702 | \n\n | \n | 696 | \n\n | \n | \n | \n | 690 | \n\n | \n | 13 | \n\n | \n | 71,671 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 715 | \n\n | \n | 722 | \n\n | \n | 721 | \n\n | \n | 735 | \n\n | \n | 724 | \n\n | \n | 715 | \n\n | \n | \n | \n | 706 | \n\n | \n | 20 | \n\n | \n | 71,437 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 723 | \n\n | \n | 696 | \n\n | \n | 686 | \n\n | \n | 682 | \n\n | \n | 678 | \n\n | \n | \n | \n | 669 | \n\n | \n | 30 | \n\n | \n | 72,063 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 664 | \n\n | \n | 642 | \n\n | \n | 631 | \n\n | \n | 611 | \n\n | \n | \n | \n | 616 | \n\n | \n | 50 | \n\n | \n | 67,320 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 723 | \n\n | \n | 717 | \n\n | \n | 701 | \n\n | \n | \n | \n | 685 | \n\n | \n | 56 | \n\n | \n | 71,183 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 665 | \n\n | \n | 678 | \n\n | \n | \n | \n | 682 | \n\n | \n | 83 | \n\n | \n | 67,935 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 597 | \n\n | \n | \n | \n | 610 | \n\n | \n | 112 | \n\n | \n | 58,238 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 612 | \n\n | \n | 102 | \n\n | \n | 54,948 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n6,509 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n228 | \n\n | $ | \n355 | \n\n | $ | \n410 | \n\n | $ | \n450 | \n\n | $ | \n488 | \n\n | $ | \n524 | \n\n | $ | \n547 | \n\n | $ | \n561 | \n\n | $ | \n570 | \n\n | \n | \n | $ | \n578 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 256 | \n\n | \n | 406 | \n\n | \n | 460 | \n\n | \n | 501 | \n\n | \n | 543 | \n\n | \n | 579 | \n\n | \n | 603 | \n\n | \n | 616 | \n\n | \n | \n | \n | 622 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 274 | \n\n | \n | 419 | \n\n | \n | 479 | \n\n | \n | 525 | \n\n | \n | 573 | \n\n | \n | 608 | \n\n | \n | 630 | \n\n | \n | \n | \n | 648 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 258 | \n\n | \n | 403 | \n\n | \n | 465 | \n\n | \n | 522 | \n\n | \n | 573 | \n\n | \n | 615 | \n\n | \n | \n | \n | 641 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 253 | \n\n | \n | 380 | \n\n | \n | 432 | \n\n | \n | 481 | \n\n | \n | 538 | \n\n | \n | \n | \n | 571 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 225 | \n\n | \n | 336 | \n\n | \n | 389 | \n\n | \n | 435 | \n\n | \n | \n | \n | 482 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 260 | \n\n | \n | 388 | \n\n | \n | 439 | \n\n | \n | \n | \n | 494 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 252 | \n\n | \n | 382 | \n\n | \n | \n | \n | 445 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 228 | \n\n | \n | \n | \n | 346 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 295 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n5,122 | \n\n | $ | \n1,387 | \n\n | $ | \n95 | \n\n | |||||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n1,482 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 38.9 | \n% | \n\n | 20.0 | \n% | \n\n | 8.5 | \n% | \n\n | 7.2 | \n% | \n\n | 7.2 | \n% | \n\n | 5.5 | \n% | \n\n | 3.6 | \n% | \n\n | 2.3 | \n% | \n\n | 1.2 | \n% | \n\n | 1.4 | \n% | \n\n | \n | \n | \n | \n | \n |
The incurred and paid amounts have been translated from the local currency to U.S. dollars using the December 31, 2016 spot rate for all years presented in the table above in order to isolate changes in foreign exchange rates from loss development.
\nBond & Specialty Insurance
\nGeneral Liability
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | 2007 | \n\n | 2008 | \n\n | 2009 | \n\n | 2010 | \n\n | 2011 | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||
| \n\n | \n\n | Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2007 \n | \n\n | $ | \n584 | \n\n | $ | \n571 | \n\n | $ | \n638 | \n\n | $ | \n582 | \n\n | $ | \n551 | \n\n | $ | \n511 | \n\n | $ | \n479 | \n\n | $ | \n467 | \n\n | $ | \n462 | \n\n | \n | \n | $ | \n454 | \n\n | $ | \n4 | \n\n | \n | 11,018 | \n\n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 579 | \n\n | \n | 769 | \n\n | \n | 743 | \n\n | \n | 697 | \n\n | \n | 716 | \n\n | \n | 712 | \n\n | \n | 672 | \n\n | \n | 643 | \n\n | \n | \n | \n | 631 | \n\n | \n | 24 | \n\n | \n | 6,463 | \n\n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 592 | \n\n | \n | 624 | \n\n | \n | 665 | \n\n | \n | 686 | \n\n | \n | 680 | \n\n | \n | 660 | \n\n | \n | 655 | \n\n | \n | \n | \n | 641 | \n\n | \n | 24 | \n\n | \n | 6,287 | \n\n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 571 | \n\n | \n | 612 | \n\n | \n | 679 | \n\n | \n | 679 | \n\n | \n | 661 | \n\n | \n | 668 | \n\n | \n | \n | \n | 653 | \n\n | \n | 18 | \n\n | \n | 5,655 | \n\n |
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 565 | \n\n | \n | 596 | \n\n | \n | 639 | \n\n | \n | 632 | \n\n | \n | 601 | \n\n | \n | \n | \n | 545 | \n\n | \n | 34 | \n\n | \n | 5,191 | \n\n |
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 538 | \n\n | \n | 591 | \n\n | \n | 614 | \n\n | \n | 605 | \n\n | \n | \n | \n | 601 | \n\n | \n | 137 | \n\n | \n | 4,824 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 510 | \n\n | \n | 565 | \n\n | \n | 606 | \n\n | \n | \n | \n | 630 | \n\n | \n | 204 | \n\n | \n | 4,371 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 549 | \n\n | \n | 571 | \n\n | \n | \n | \n | 563 | \n\n | \n | 232 | \n\n | \n | 4,182 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 528 | \n\n | \n | \n | \n | 524 | \n\n | \n | 272 | \n\n | \n | 3,814 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 512 | \n\n | \n | 405 | \n\n | \n | 2,676 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n5,754 | \n\n | \n | \n | \n | \n | \n | \n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance \n | \n\n | \n | \n | \n | \n | \n | \n\n | ||||||||||||||||||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | ||||||||||||||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2007 \n | \n\n | $ | \n35 | \n\n | $ | \n134 | \n\n | $ | \n229 | \n\n | $ | \n303 | \n\n | $ | \n357 | \n\n | $ | \n373 | \n\n | $ | \n393 | \n\n | $ | \n400 | \n\n | $ | \n410 | \n\n | \n | \n | $ | \n415 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2008 \n | \n\n | \n | \n | \n | \n | 47 | \n\n | \n | 157 | \n\n | \n | 281 | \n\n | \n | 387 | \n\n | \n | 471 | \n\n | \n | 529 | \n\n | \n | 562 | \n\n | \n | 579 | \n\n | \n | \n | \n | 590 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2009 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 36 | \n\n | \n | 167 | \n\n | \n | 310 | \n\n | \n | 390 | \n\n | \n | 460 | \n\n | \n | 497 | \n\n | \n | 563 | \n\n | \n | \n | \n | 592 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2010 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 33 | \n\n | \n | 152 | \n\n | \n | 291 | \n\n | \n | 396 | \n\n | \n | 482 | \n\n | \n | 565 | \n\n | \n | \n | \n | 597 | \n\n | \n | Liability for Claims | \n\n | |||
| \n 2011 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 33 | \n\n | \n | 143 | \n\n | \n | 249 | \n\n | \n | 324 | \n\n | \n | 414 | \n\n | \n | \n | \n | 447 | \n\n | \n | And Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | 160 | \n\n | \n | 255 | \n\n | \n | 342 | \n\n | \n | \n | \n | 383 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 34 | \n\n | \n | 154 | \n\n | \n | 252 | \n\n | \n | \n | \n | 352 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | 150 | \n\n | \n | \n | \n | 239 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 38 | \n\n | \n | \n | \n | 141 | \n\n | \n | 2007 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 30 | \n\n | \n | 2016 | \n\n | \n | 2007 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Total | \n\n | \n | \n | $ | \n3,786 | \n\n | $ | \n1,968 | \n\n | $ | \n74 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,042 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | ||||||||||||||||||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | 6 | \n\n | 7 | \n\n | 8 | \n\n | 9 | \n\n | 10 | \n\n | | \n\n | | \n\n | ||||||||||||
| \n\n | \n\n | \n | 6.3 | \n% | \n\n | 19.7 | \n% | \n\n | 18.8 | \n% | \n\n | 15.1 | \n% | \n\n | 12.1 | \n% | \n\n | 7.5 | \n% | \n\n | 6.2 | \n% | \n\n | 3.0 | \n% | \n\n | 1.9 | \n% | \n\n | 1.1 | \n% | \n\n | \n | \n | \n | \n | \n |
Fidelity and Surety
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n255 | \n\n | $ | \n262 | \n\n | $ | \n249 | \n\n | $ | \n175 | \n\n | \n | \n | $ | \n140 | \n\n | $ | \n9 | \n\n | \n | 1,148 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 240 | \n\n | \n | 246 | \n\n | \n | 199 | \n\n | \n | \n | \n | 146 | \n\n | \n | 6 | \n\n | \n | 1,006 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 223 | \n\n | \n | 212 | \n\n | \n | \n | \n | 165 | \n\n | \n | 32 | \n\n | \n | 992 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 217 | \n\n | \n | \n | \n | 191 | \n\n | \n | 79 | \n\n | \n | 768 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 226 | \n\n | \n | 128 | \n\n | \n | 595 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n868 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n42 | \n\n | $ | \n108 | \n\n | $ | \n124 | \n\n | $ | \n110 | \n\n | \n | \n | $ | \n111 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 37 | \n\n | \n | 113 | \n\n | \n | 128 | \n\n | \n | \n | \n | 131 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 58 | \n\n | \n | 96 | \n\n | \n | \n | \n | 111 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 32 | \n\n | \n | \n | \n | 75 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 54 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n482 | \n\n | $ | \n386 | \n\n | $ | \n64 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n450 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 26.1 | \n% | \n\n | 36.2 | \n% | \n\n | 10.1 | \n% | \n\n | (3.6)%(1 | \n) | \n\n | 0.8 | \n% | \n\n | \n | \n | \n | \n | \n |
Personal Insurance
\nAutomobile
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n2,417 | \n\n | $ | \n2,454 | \n\n | $ | \n2,448 | \n\n | $ | \n2,432 | \n\n | \n | \n | $ | \n2,428 | \n\n | $ | \n15 | \n\n | \n | 793,669 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 2,108 | \n\n | \n | 2,095 | \n\n | \n | 2,049 | \n\n | \n | \n | \n | 2,044 | \n\n | \n | 36 | \n\n | \n | 694,650 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 2,014 | \n\n | \n | 1,994 | \n\n | \n | \n | \n | 1,981 | \n\n | \n | 75 | \n\n | \n | 669,990 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,186 | \n\n | \n | \n | \n | 2,244 | \n\n | \n | 224 | \n\n | \n | 755,762 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2,779 | \n\n | \n | 646 | \n\n | \n | 839,962 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n11,476 | \n\n | \n | \n | \n | \n | \n | \n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n1,503 | \n\n | $ | \n1,983 | \n\n | $ | \n2,189 | \n\n | $ | \n2,311 | \n\n | \n | \n | $ | \n2,376 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,251 | \n\n | \n | 1,628 | \n\n | \n | 1,814 | \n\n | \n | \n | \n | 1,935 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,193 | \n\n | \n | 1,564 | \n\n | \n | \n | \n | 1,763 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,319 | \n\n | \n | \n | \n | 1,768 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,610 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n9,452 | \n\n | $ | \n2,024 | \n\n | $ | \n253 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n2,277 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 60.0 | \n% | \n\n | 19.2 | \n% | \n\n | 9.2 | \n% | \n\n | 5.5 | \n% | \n\n | 2.7 | \n% | \n\n | \n | \n | \n | \n | \n |
Homeowners (excluding Other)
\n\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | (dollars in millions) | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | | \n\n | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n\n | \n\n | \n For the Years Ended December 31, \n | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | 2012 | \n\n | 2013 | \n\n | 2014 | \n\n | 2015 | \n\n | \n | \n | 2016 | \n\n | \n | \n | \n | \n | \n | \n | |||||
| \n\n | \n\n | Incurred Claims and Allocated Claims \nAdjustment Expenses, Net of Reinsurance | \n\n | \n | \n | \n | \n | \n | \n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | IBNR | \n\n | \n | Cumulative | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Reserves | \n\n | \n | Number of | \n\n |
| \n\n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Dec. 31, | \n\n | \n | Reported | \n\n |
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 2016 | \n\n | \n | Claims | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2012 \n | \n\n | $ | \n2,136 | \n\n | $ | \n2,056 | \n\n | $ | \n2,029 | \n\n | $ | \n2,018 | \n\n | \n | \n | $ | \n2,019 | \n\n | $ | \n1 | \n\n | \n | 259,006 | \n\n |
| \n 2013 \n | \n\n | \n | \n | \n | \n | 1,488 | \n\n | \n | 1,397 | \n\n | \n | 1,365 | \n\n | \n | \n | \n | 1,375 | \n\n | \n | 4 | \n\n | \n | 149,373 | \n\n |
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,515 | \n\n | \n | 1,450 | \n\n | \n | \n | \n | 1,453 | \n\n | \n | 9 | \n\n | \n | 151,517 | \n\n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,438 | \n\n | \n | \n | \n | 1,454 | \n\n | \n | 28 | \n\n | \n | 144,367 | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,556 | \n\n | \n | 307 | \n\n | \n | 129,630 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | Total | \n\n | \n | \n | $ | \n7,857 | \n\n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n Cumulative Paid Claims and Allocated Claim | \n\n | \n | \n | \n | \n | \n | \n\n | |||||||||||||||
| \n\n | \n\n | \n | Unaudited | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | |||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Accident Year \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | Liability for Claims \nAnd Allocated Claim | \n\n | |||
| \n 2012 \n | \n\n | $ | \n1,508 | \n\n | $ | \n1,901 | \n\n | $ | \n1,964 | \n\n | $ | \n1,993 | \n\n | \n | \n | $ | \n2,008 | \n\n | \n | Adjustment Expenses, | \n\n | |||
| \n 2013 \n | \n\n | \n | \n | \n | \n | 994 | \n\n | \n | 1,269 | \n\n | \n | 1,317 | \n\n | \n | \n | \n | 1,344 | \n\n | \n | Net of Reinsurance | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n 2014 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | 1,053 | \n\n | \n | 1,338 | \n\n | \n | \n | \n | 1,402 | \n\n | \n | \n | \n | \n | \n | \n |
| \n 2015 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 994 | \n\n | \n | \n | \n | 1,333 | \n\n | \n | 2012 - | \n\n | \n | Before | \n\n |
| \n 2016 \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | 1,049 | \n\n | \n | 2016 | \n\n | \n | 2012 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | $ | \n7,136 | \n\n | $ | \n721 | \n\n | $ | \n21 | \n\n | ||||||||||||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n\n | \n | \n | \n | \nTotal net liability | \n\n | \n$ | \n\n742 | \n\n | |||
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Average Annual Percentage Payout of \nIncurred Claims by Age, Net of Reinsurance | \n\n | | \n\n | | \n\n | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Unaudited | \n\n | | \n\n | | \n\n | |||||||||||||||
| \n Years \n | \n\n | 1 | \n\n | 2 | \n\n | 3 | \n\n | 4 | \n\n | 5 | \n\n | | \n\n | | \n\n | |||||||
| \n\n | \n\n | \n | 71.1 | \n% | \n\n | 20.6 | \n% | \n\n | 3.7 | \n% | \n\n | 1.7 | \n% | \n\n | 0.7 | \n% | \n\n | \n | \n | \n | \n | \n |
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Short-term: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Commercial paper \n | \n\n | $ | \n100 | \n\n | $ | \n100 | \n\n |
| \n 5.75% Senior notes due December 15, 2017 \n | \n\n | \n | 450 | \n\n | \n | — | \n\n |
| \n 6.25% Senior notes due June 20, 2016 \n | \n\n | \n | — | \n\n | \n | 400 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total short-term debt \n | \n\n | \n | 550 | \n\n | \n | 500 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Long-term: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n 5.75% Senior notes due December 15, 2017 \n | \n\n | \n | — | \n\n | \n | 450 | \n\n |
| \n 5.80% Senior notes due May 15, 2018 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 5.90% Senior notes due June 2, 2019 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 3.90% Senior notes due November 1, 2020 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 7.75% Senior notes due April 15, 2026 \n | \n\n | \n | 200 | \n\n | \n | 200 | \n\n |
| \n 7.625% Junior subordinated debentures due December 15, 2027 \n | \n\n | \n | 125 | \n\n | \n | 125 | \n\n |
| \n 6.375% Senior notes due March 15, 2033 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 6.75% Senior notes due June 20, 2036 \n | \n\n | \n | 400 | \n\n | \n | 400 | \n\n |
| \n 6.25% Senior notes due June 15, 2037 \n | \n\n | \n | 800 | \n\n | \n | 800 | \n\n |
| \n 5.35% Senior notes due November 1, 2040 \n | \n\n | \n | 750 | \n\n | \n | 750 | \n\n |
| \n 4.60% Senior notes due August 1, 2043 \n | \n\n | \n | 500 | \n\n | \n | 500 | \n\n |
| \n 4.30% Senior notes due August 25, 2045 \n | \n\n | \n | 400 | \n\n | \n | 400 | \n\n |
| \n 8.50% Junior subordinated debentures due December 15, 2045 \n | \n\n | \n | 56 | \n\n | \n | 56 | \n\n |
| \n 3.75% Senior notes dues May 15, 2046 \n | \n\n | \n | 500 | \n\n | \n | — | \n\n |
| \n 8.312% Junior subordinated debentures due July 1, 2046 \n | \n\n | \n | 73 | \n\n | \n | 73 | \n\n |
| \n 6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 \n | \n\n | \n | 107 | \n\n | \n | 107 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total long-term debt \n | \n\n | \n | 5,911 | \n\n | \n | 5,861 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total debt principal \n | \n\n | \n | 6,461 | \n\n | \n | 6,361 | \n\n |
| \n Unamortized fair value adjustment \n | \n\n | \n | 47 | \n\n | \n | 49 | \n\n |
| \n Unamortized debt issuance costs \n | \n\n | \n | (71 | \n) | \n\n | (66 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total debt \n | \n\n | $ | \n6,437 | \n\n | $ | \n6,344 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | | \n\n | | \n\n | Unamortized \nFair Value \nPurchase \nAdjustment at \nDecember 31, | \n\n | | \n\n | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | | \n\n | | \n\n | Effective \nInterest Rate \nto Maturity | \n\n | |||||||||
| \n (in millions) \n | \n\n | Issue Rate | \n\n | Maturity Date | \n\n | 2016 | \n\n | 2015 | \n\n | |||||||
| \n Subordinated debentures \n | \n\n | \n | 7.625 | \n% | \n\n | Dec. 2027 | \n\n | $ | \n14 | \n\n | $ | \n15 | \n\n | \n | 6.147 | \n% | \n
| \n\n | \n\n | \n | 8.500 | \n% | \n\n | Dec. 2045 | \n\n | \n | 15 | \n\n | \n | 15 | \n\n | \n | 6.362 | \n% | \n
| \n\n | \n\n | \n | 8.312 | \n% | \n\n | Jul. 2046 | \n\n | \n | 18 | \n\n | \n | 19 | \n\n | \n | 6.362 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | \n | \n | \n | \n | \n | $ | \n47 | \n\n | $ | \n49 | \n\n | \n | \n | \n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions, except per share amounts) \n\nQuarterly Period Ending | \n\n | Number of \nshares \npurchased | \n\n | Cost of \nshares \nrepurchased | \n\n | Average price \npaid per share | \n\n | Remaining capacity \nunder share repurchase \nauthorization | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n March 31, 2016 \n | \n\n | \n | 5.1 | \n\n | $ | \n550 | \n\n | $ | \n108.46 | \n\n | $ | \n2,784 | \n\n |
| \n June 30, 2016 \n | \n\n | \n | 4.9 | \n\n | \n | 550 | \n\n | \n | 112.12 | \n\n | \n | 2,234 | \n\n |
| \n September 30, 2016 \n | \n\n | \n | 4.7 | \n\n | \n | 550 | \n\n | \n | 117.25 | \n\n | \n | 1,684 | \n\n |
| \n December 31, 2016 \n | \n\n | \n | 6.6 | \n\n | \n | 750 | \n\n | \n | 113.54 | \n\n | \n | 934 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | 21.3 | \n\n | $ | \n2,400 | \n\n | \n | 112.82 | \n\n | \n | 934 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Changes in Net Unrealized Gains on \nInvestment Securities | \n\n | | \n\n | | \n\n | | \n\n | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | \n\n | Net Benefit Plan \nAssets and \nObligations \nRecognized in \nShareholders' Equity | \n\n | Net \nUnrealized \nForeign \nCurrency \nTranslation | \n\n | Total \nAccumulated \nOther \nComprehensive \nIncome (Loss) | \n\n | |||||||||
| \n (in millions) \n | \n\n | Having No Credit \nLosses Recognized in \nthe Consolidated \nStatement of Income | \n\n | Having Credit Losses \nRecognized in the \nConsolidated \nStatement of Income | \n\n | |||||||||||
| \n Balance, December 31, 2013 \n | \n\n | $ | \n1,125 | \n\n | $ | \n197 | \n\n | $ | \n(431 | \n) | \n$ | \n(81 | \n) | \n$ | \n810 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss) (OCI) before reclassifications \n | \n\n | \n | 667 | \n\n | \n | (2 | \n) | \n\n | (363 | \n) | \n\n | (250 | \n) | \n\n | 52 | \n\n |
| \n Amounts reclassified from AOCI \n | \n\n | \n | (24 | \n) | \n\n | 3 | \n\n | \n | 39 | \n\n | \n | — | \n\n | \n | 18 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net OCI, current period \n | \n\n | \n | 643 | \n\n | \n | 1 | \n\n | \n | (324 | \n) | \n\n | (250 | \n) | \n\n | 70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, December 31, 2014 \n | \n\n | \n | 1,768 | \n\n | \n | 198 | \n\n | \n | (755 | \n) | \n\n | (331 | \n) | \n\n | 880 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n OCI before reclassifications \n | \n\n | \n | (641 | \n) | \n\n | (11 | \n) | \n\n | (18 | \n) | \n\n | (419 | \n) | \n\n | (1,089 | \n) | \n
| \n Amounts reclassified from AOCI \n | \n\n | \n | (27 | \n) | \n\n | 2 | \n\n | \n | 60 | \n\n | \n | 17 | \n\n | \n | 52 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net OCI, current period \n | \n\n | \n | (668 | \n) | \n\n | (9 | \n) | \n\n | 42 | \n\n | \n | (402 | \n) | \n\n | (1,037 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, December 31, 2015 \n | \n\n | \n | 1,100 | \n\n | \n | 189 | \n\n | \n | (713 | \n) | \n\n | (733 | \n) | \n\n | (157 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n OCI before reclassifications \n | \n\n | \n | (530 | \n) | \n\n | 4 | \n\n | \n | (30 | \n) | \n\n | (49 | \n) | \n\n | (605 | \n) | \n
| \n Amounts reclassified from AOCI \n | \n\n | \n | (42 | \n) | \n\n | 9 | \n\n | \n | 40 | \n\n | \n | — | \n\n | \n | 7 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net OCI, current period \n | \n\n | \n | (572 | \n) | \n\n | 13 | \n\n | \n | 10 | \n\n | \n | (49 | \n) | \n\n | (598 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance, December 31, 2016 \n | \n\n | $ | \n528 | \n\n | $ | \n202 | \n\n | $ | \n(703 | \n) | \n$ | \n(782 | \n) | \n$ | \n(755 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | $ | \n(883 | \n) | \n$ | \n(1,020 | \n) | \n$ | \n976 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | (311 | \n) | \n\n | (352 | \n) | \n\n | 333 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | (572 | \n) | \n\n | (668 | \n) | \n\n | 643 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | 21 | \n\n | \n | (14 | \n) | \n\n | 2 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 8 | \n\n | \n | (5 | \n) | \n\n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 13 | \n\n | \n | (9 | \n) | \n\n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | 16 | \n\n | \n | 66 | \n\n | \n | (494 | \n) | \n
| \n Income tax expense (benefit) \n | \n\n | \n | 6 | \n\n | \n | 24 | \n\n | \n | (170 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 10 | \n\n | \n | 42 | \n\n | \n | (324 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | (41 | \n) | \n\n | (461 | \n) | \n\n | (289 | \n) | \n
| \n Income tax expense (benefit) \n | \n\n | \n | 8 | \n\n | \n | (59 | \n) | \n\n | (39 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | (49 | \n) | \n\n | (402 | \n) | \n\n | (250 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other comprehensive income (loss) \n | \n\n | \n | (887 | \n) | \n\n | (1,429 | \n) | \n\n | 195 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense (benefit) \n | \n\n | \n | (289 | \n) | \n\n | (392 | \n) | \n\n | 125 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other comprehensive income (loss), net of taxes \n | \n\n | $ | \n(598 | \n) | \n$ | \n(1,037 | \n) | \n$ | \n70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Reclassification adjustments related to unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income(1) \n | \n\n | $ | \n(64 | \n) | \n$ | \n(42 | \n) | \n$ | \n(36 | \n) | \n
| \n Income tax expense(2) \n | \n\n | \n | (22 | \n) | \n\n | (15 | \n) | \n\n | (12 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | (42 | \n) | \n\n | (27 | \n) | \n\n | (24 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Having credit losses recognized in the consolidated statement of income(1) \n | \n\n | \n | 13 | \n\n | \n | 2 | \n\n | \n | 4 | \n\n |
| \n Income tax benefit(2) \n | \n\n | \n | 4 | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 9 | \n\n | \n | 2 | \n\n | \n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Reclassification adjustment related to benefit plan assets and obligations(3) \n | \n\n | \n | 62 | \n\n | \n | 93 | \n\n | \n | 60 | \n\n |
| \n Income tax benefit(2) \n | \n\n | \n | 22 | \n\n | \n | 33 | \n\n | \n | 21 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | 40 | \n\n | \n | 60 | \n\n | \n | 39 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Reclassification adjustment related to foreign currency translation(1) \n | \n\n | \n | — | \n\n | \n | 26 | \n\n | \n | — | \n\n |
| \n Income tax benefit(2) \n | \n\n | \n | — | \n\n | \n | 9 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net of taxes \n | \n\n | \n | — | \n\n | \n | 17 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total reclassifications \n | \n\n | \n | 11 | \n\n | \n | 79 | \n\n | \n | 28 | \n\n |
| \n Total income tax benefit \n | \n\n | \n | 4 | \n\n | \n | 27 | \n\n | \n | 10 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total reclassifications, net of taxes \n | \n\n | $ | \n7 | \n\n | $ | \n52 | \n\n | $ | \n18 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions, except per share amounts) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Basic and Diluted \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income, as reported \n | \n\n | $ | \n3,014 | \n\n | $ | \n3,439 | \n\n | $ | \n3,692 | \n\n |
| \n Participating share-based awards—allocated income \n | \n\n | \n | (22 | \n) | \n\n | (25 | \n) | \n\n | (27 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income available to common shareholders—basic and diluted \n | \n\n | $ | \n2,992 | \n\n | $ | \n3,414 | \n\n | $ | \n3,665 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Common Shares \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Weighted average shares outstanding \n | \n\n | \n | 288.1 | \n\n | \n | 310.6 | \n\n | \n | 338.8 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Diluted \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Weighted average shares outstanding \n | \n\n | \n | 288.1 | \n\n | \n | 310.6 | \n\n | \n | 338.8 | \n\n |
| \n Weighted average effects of dilutive securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Stock options and performance shares \n | \n\n | \n | 2.9 | \n\n | \n | 3.3 | \n\n | \n | 3.7 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | \n | 291.0 | \n\n | \n | 313.9 | \n\n | \n | 342.5 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income Per Common Share \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | $ | \n10.39 | \n\n | $ | \n10.99 | \n\n | $ | \n10.82 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Diluted \n | \n\n | $ | \n10.28 | \n\n | $ | \n10.88 | \n\n | $ | \n10.70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Composition of income tax expense included in the consolidated statement of income \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Current expense: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Federal \n | \n\n | $ | \n899 | \n\n | $ | \n1,144 | \n\n | $ | \n1,216 | \n\n |
| \n Foreign \n | \n\n | \n | 21 | \n\n | \n | 29 | \n\n | \n | 28 | \n\n |
| \n State \n | \n\n | \n | 8 | \n\n | \n | 9 | \n\n | \n | 10 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total current tax expense \n | \n\n | \n | 928 | \n\n | \n | 1,182 | \n\n | \n | 1,254 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Deferred expense: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Federal \n | \n\n | \n | 110 | \n\n | \n | 117 | \n\n | \n | 121 | \n\n |
| \n Foreign \n | \n\n | \n | 1 | \n\n | \n | 2 | \n\n | \n | 22 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total deferred tax expense \n | \n\n | \n | 111 | \n\n | \n | 119 | \n\n | \n | 143 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense included in the consolidated statement of income \n | \n\n | \n | 1,039 | \n\n | \n | 1,301 | \n\n | \n | 1,397 | \n\n |
| \n Composition of income tax expense (benefit) included in shareholders' equity \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Expense (benefit) relating to share-based compensation, the changes in unrealized gain on investments, unrealized loss on foreign exchange and other items in other comprehensive income \n | \n\n | \n | (289 | \n) | \n\n | (448 | \n) | \n\n | 68 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense included in the consolidated financial statements \n | \n\n | $ | \n750 | \n\n | $ | \n853 | \n\n | $ | \n1,465 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Income before income taxes \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. \n | \n\n | $ | \n3,946 | \n\n | $ | \n4,621 | \n\n | $ | \n4,899 | \n\n |
| \n Foreign \n | \n\n | \n | 107 | \n\n | \n | 119 | \n\n | \n | 190 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income before income taxes \n | \n\n | \n | 4,053 | \n\n | \n | 4,740 | \n\n | \n | 5,089 | \n\n |
| \n Effective tax rate \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Statutory tax rate \n | \n\n | \n | 35 | \n% | \n\n | 35 | \n% | \n\n | 35 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Expected federal income tax expense \n | \n\n | \n | 1,419 | \n\n | \n | 1,659 | \n\n | \n | 1,781 | \n\n |
| \n Tax effect of: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Nontaxable investment income \n | \n\n | \n | (323 | \n) | \n\n | (345 | \n) | \n\n | (379 | \n) | \n
| \n Other, net \n | \n\n | \n | (57 | \n) | \n\n | (13 | \n) | \n\n | (5 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total income tax expense \n | \n\n | $ | \n1,039 | \n\n | $ | \n1,301 | \n\n | $ | \n1,397 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effective tax rate \n | \n\n | \n | 26 | \n% | \n\n | 27 | \n% | \n\n | 27 | \n% | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Deferred tax assets \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expense reserves \n | \n\n | $ | \n664 | \n\n | $ | \n691 | \n\n |
| \n Unearned premium reserves \n | \n\n | \n | 760 | \n\n | \n | 731 | \n\n |
| \n Compensation-related liabilities \n | \n\n | \n | 268 | \n\n | \n | 326 | \n\n |
| \n Other \n | \n\n | \n | 272 | \n\n | \n | 320 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total gross deferred tax assets \n | \n\n | \n | 1,964 | \n\n | \n | 2,068 | \n\n |
| \n Less: valuation allowance \n | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Adjusted gross deferred tax assets \n | \n\n | \n | 1,961 | \n\n | \n | 2,068 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Deferred tax liabilities \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Deferred acquisition costs \n | \n\n | \n | 604 | \n\n | \n | 580 | \n\n |
| \n Investments \n | \n\n | \n | 592 | \n\n | \n | 867 | \n\n |
| \n Internally developed software \n | \n\n | \n | 157 | \n\n | \n | 134 | \n\n |
| \n Other \n | \n\n | \n | 143 | \n\n | \n | 191 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total gross deferred tax liabilities \n | \n\n | \n | 1,496 | \n\n | \n | 1,772 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net deferred tax asset \n | \n\n | $ | \n465 | \n\n | $ | \n296 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | Amount | \n\n | Year of \nexpiration | \n|
|---|---|---|---|---|---|
| \n Brazil \n | \n\n | $ | \n8 | \n\n | None | \n
| \n United Kingdom \n | \n\n | $ | \n106 | \n\n | None | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Balance at January 1 \n | \n\n | $ | \n16 | \n\n | $ | \n23 | \n\n |
| \n Additions for tax positions of prior years \n | \n\n | \n | 3 | \n\n | \n | 2 | \n\n |
| \n Reductions for tax positions of prior years \n | \n\n | \n | (6 | \n) | \n\n | (9 | \n) | \n
| \n Additions based on tax positions related to current year \n | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Balance at December 31 \n | \n\n | $ | \n13 | \n\n | $ | \n16 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n\n | \n\n\n | \n\n\n | \n\n\n | \n\n\n | \n\n\n | \n\n\n | \n
| \n (for the year ended December 31,) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n
|---|---|---|---|---|---|---|
| \n Assumptions used in estimating fair value of options on grant date \n | \n\n | \n | \n | \n | \n | \n |
| \n Expected term of stock options \n | \n\n | 5 - 6 years | \n\n | 6 years | \n\n | 6 years | \n
| \n Expected volatility of Company's stock \n | \n\n | 15.14% - 16.80% | \n\n | 19.29% | \n\n | 27.2% - 27.5% | \n
| \n Weighted average volatility \n | \n\n | 16.79% | \n\n | 19.29% | \n\n | 27.5% | \n
| \n Expected annual dividend per share \n | \n\n | $2.44 - $2.68 | \n\n | $2.20 | \n\n | $2.00 - $2.20 | \n
| \n Risk-free rate \n | \n\n | 1.36% - 2.23% | \n\n | 1.31% | \n\n | 1.81% - 1.82% | \n
| \n\n | \n\n\n | \n\n\n | \n\n\n | \n\n\n | \n\n\n | \n\n\n | \n
| \n (for the year ended December 31,) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n
|---|---|---|---|---|---|---|
| \n Additional information \n | \n\n | \n | \n | \n | \n | \n |
| \n Weighted average grant-date fair value of options granted (per share) \n | \n\n | $13.29 | \n\n | $15.78 | \n\n | $17.22 | \n
| \n Total intrinsic value of options exercised during the year (in millions) \n | \n\n | $167 | \n\n | $120 | \n\n | $117 | \n
| | \n\n | | \n\n | | \n\n | | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Stock Options \n | \n\n | Number | \n\n | Weighted \nAverage \nExercise \nPrice | \n\n | Weighted \nAverage \nContractual \nLife \nRemaining | \n\n | Aggregate \nIntrinsic \nValue \n($ in millions) | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Outstanding, beginning of year \n | \n\n | \n | 9,864,255 | \n\n | $ | \n74.48 | \n\n | \n | \n | \n | \n | \n |
| \n Original grants \n | \n\n | \n | 2,847,398 | \n\n | \n | 106.21 | \n\n | \n | \n | \n | \n | \n |
| \n Exercised \n | \n\n | \n | (4,069,532 | \n) | \n\n | 69.13 | \n\n | \n | \n | \n | \n | \n |
| \n Forfeited or expired \n | \n\n | \n | (82,085 | \n) | \n\n | 97.44 | \n\n | \n | \n | \n | \n | \n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Outstanding, end of year \n | \n\n | \n | 8,560,036 | \n\n | $ | \n87.36 | \n\n | 6.8 years | \n\n | $ | \n300 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Vested at end of year(1) \n | \n\n | \n | 5,588,061 | \n\n | $ | \n80.74 | \n\n | 6.0 years | \n\n | $ | \n233 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Exercisable at end of year \n | \n\n | \n | 3,007,663 | \n\n | $ | \n65.18 | \n\n | 4.2 years | \n\n | $ | \n172 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Restricted and Deferred Stock \nUnits | \n\n | Performance Shares | \n\n | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Other Equity Instruments \n | \n\n | Number | \n\n | Weighted Average \nGrant-Date \nFair Value | \n\n | Number | \n\n | Weighted Average \nGrant-Date \nFair Value | \n\n | ||||
| \n Nonvested, beginning of year \n | \n\n | \n | 1,435,958 | \n\n | $ | \n88.35 | \n\n | \n | 1,101,989 | \n\n | $ | \n91.27 | \n\n |
| \n Granted \n | \n\n | \n | 676,736 | \n\n | \n | 106.93 | \n\n | \n | 476,411 | \n\n | \n | 106.03 | \n\n |
| \n Vested \n | \n\n | \n | (667,650 | \n)(1) | \n\n | 86.85 | \n\n | \n | (818,360 | \n)(2) | \n\n | 84.43 | \n\n |
| \n Forfeited \n | \n\n | \n | (68,552 | \n) | \n\n | 97.82 | \n\n | \n | (63,495 | \n) | \n\n | 100.02 | \n\n |
| \n Performance-based adjustment \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 100,073 | \n(3) | \n\n | 88.22 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Nonvested, end of year \n | \n\n | \n | 1,376,492 | \n\n | $ | \n97.75 | \n\n | \n | 796,618 | \n\n | $ | \n106.03 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Qualified \nDomestic \nPension Plan | \n\n | Nonqualified \nand Foreign \nPension Plans | \n\n | Total | \n\n | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2016 | \n\n | 2015 | \n\n | 2016 | \n\n | 2015 | \n\n | ||||||
| \n Change in projected benefit obligation: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Benefit obligation at beginning of year \n | \n\n | $ | \n3,250 | \n\n | $ | \n3,385 | \n\n | $ | \n228 | \n\n | $ | \n227 | \n\n | $ | \n3,478 | \n\n | $ | \n3,612 | \n\n |
| \n Benefits earned \n | \n\n | \n | 111 | \n\n | \n | 124 | \n\n | \n | 7 | \n\n | \n | 7 | \n\n | \n | 118 | \n\n | \n | 131 | \n\n |
| \n Interest cost on benefit obligation \n | \n\n | \n | 114 | \n\n | \n | 135 | \n\n | \n | 8 | \n\n | \n | 9 | \n\n | \n | 122 | \n\n | \n | 144 | \n\n |
| \n Actuarial loss (gain) \n | \n\n | \n | 54 | \n\n | \n | (203 | \n) | \n\n | 15 | \n\n | \n | 2 | \n\n | \n | 69 | \n\n | \n | (201 | \n) | \n
| \n Benefits paid \n | \n\n | \n | (162 | \n) | \n\n | (191 | \n) | \n\n | (15 | \n) | \n\n | (8 | \n) | \n\n | (177 | \n) | \n\n | (199 | \n) | \n
| \n Settlement \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n |
| \n Foreign currency exchange rate change \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (15 | \n) | \n\n | (9 | \n) | \n\n | (15 | \n) | \n\n | (9 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Benefit obligation at end of year \n | \n\n | $ | \n3,367 | \n\n | $ | \n3,250 | \n\n | $ | \n225 | \n\n | $ | \n228 | \n\n | $ | \n3,592 | \n\n | $ | \n3,478 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in plan assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fair value of plan assets at beginning of year \n | \n\n | $ | \n3,127 | \n\n | $ | \n3,235 | \n\n | $ | \n115 | \n\n | $ | \n122 | \n\n | $ | \n3,242 | \n\n | $ | \n3,357 | \n\n |
| \n Actual return on plan assets \n | \n\n | \n | 222 | \n\n | \n | (17 | \n) | \n\n | 11 | \n\n | \n | 3 | \n\n | \n | 233 | \n\n | \n | (14 | \n) | \n
| \n Company contributions \n | \n\n | \n | 200 | \n\n | \n | 100 | \n\n | \n | 14 | \n\n | \n | 7 | \n\n | \n | 214 | \n\n | \n | 107 | \n\n |
| \n Benefits paid \n | \n\n | \n | (162 | \n) | \n\n | (191 | \n) | \n\n | (15 | \n) | \n\n | (8 | \n) | \n\n | (177 | \n) | \n\n | (199 | \n) | \n
| \n Settlement \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n |
| \n Foreign currency exchange rate change \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (16 | \n) | \n\n | (9 | \n) | \n\n | (16 | \n) | \n\n | (9 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Fair value of plan assets at end of year \n | \n\n | \n | 3,387 | \n\n | \n | 3,127 | \n\n | \n | 106 | \n\n | \n | 115 | \n\n | \n | 3,493 | \n\n | \n | 3,242 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Funded status of plan at end of year \n | \n\n | $ | \n20 | \n\n | $ | \n(123 | \n) | \n$ | \n(119 | \n) | \n$ | \n(113 | \n) | \n$ | \n(99 | \n) | \n$ | \n(236 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in the consolidated balance sheet consist of: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Accrued over-funded benefit plan assets \n | \n\n | $ | \n20 | \n\n | $ | \n— | \n\n | $ | \n5 | \n\n | $ | \n4 | \n\n | $ | \n25 | \n\n | $ | \n4 | \n\n |
| \n Accrued under-funded benefit plan liabilities \n | \n\n | \n | — | \n\n | \n | (123 | \n) | \n\n | (124 | \n) | \n\n | (117 | \n) | \n\n | (124 | \n) | \n\n | (240 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n20 | \n\n | $ | \n(123 | \n) | \n$ | \n(119 | \n) | \n$ | \n(113 | \n) | \n$ | \n(99 | \n) | \n$ | \n(236 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in accumulated other comprehensive income consist of: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net actuarial loss \n | \n\n | $ | \n1,072 | \n\n | $ | \n1,079 | \n\n | $ | \n55 | \n\n | $ | \n52 | \n\n | $ | \n1,127 | \n\n | $ | \n1,131 | \n\n |
| \n Prior service benefit \n | \n\n | \n | (6 | \n) | \n\n | (8 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (6 | \n) | \n\n | (8 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n1,066 | \n\n | $ | \n1,071 | \n\n | $ | \n55 | \n\n | $ | \n52 | \n\n | $ | \n1,121 | \n\n | $ | \n1,123 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Postretirement \nBenefit Plans | \n\n | ||||
|---|---|---|---|---|---|---|---|
| \n (at and for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
| \n Change in projected benefit obligation: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Benefit obligation at beginning of year \n | \n\n | $ | \n233 | \n\n | $ | \n255 | \n\n |
| \n Benefits earned \n | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Interest cost on benefit obligation \n | \n\n | \n | 8 | \n\n | \n | 10 | \n\n |
| \n Actuarial gain \n | \n\n | \n | (17 | \n) | \n\n | (3 | \n) | \n
| \n Benefits paid \n | \n\n | \n | (11 | \n) | \n\n | (13 | \n) | \n
| \n Plan amendments \n | \n\n | \n | — | \n\n | \n | (11 | \n) | \n
| \n Foreign currency exchange rate change \n | \n\n | \n | 1 | \n\n | \n | (5 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Benefit obligation at end of year \n | \n\n | $ | \n214 | \n\n | $ | \n233 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Change in plan assets: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Fair value of plan assets at beginning of year \n | \n\n | $ | \n15 | \n\n | $ | \n16 | \n\n |
| \n Actual return on plan assets \n | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Company contributions \n | \n\n | \n | 10 | \n\n | \n | 12 | \n\n |
| \n Benefits paid \n | \n\n | \n | (11 | \n) | \n\n | (13 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Fair value of plan assets at end of year \n | \n\n | \n | 14 | \n\n | \n | 15 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Funded status of plan at end of year \n | \n\n | $ | \n(200 | \n) | \n$ | \n(218 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in the consolidated balance sheet consist of: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Accrued under-funded benefit plan liability \n | \n\n | $ | \n(200 | \n) | \n$ | \n(218 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Amounts recognized in accumulated other comprehensive income consist of: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Net actuarial (gain) loss \n | \n\n | $ | \n(13 | \n) | \n$ | \n4 | \n\n |
| \n Prior service benefit \n | \n\n | \n | (31 | \n) | \n\n | (35 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n(44 | \n) | \n$ | \n(31 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Pension Plans | \n\n | Postretirement \nBenefit Plans | \n\n | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | ||||||
| \n Net Periodic Benefit Cost: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Service cost \n | \n\n | $ | \n118 | \n\n | $ | \n131 | \n\n | $ | \n110 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Interest cost on benefit obligation \n | \n\n | \n | 122 | \n\n | \n | 144 | \n\n | \n | 150 | \n\n | \n | 8 | \n\n | \n | 10 | \n\n | \n | 10 | \n\n |
| \n Expected return on plan assets \n | \n\n | \n | (230 | \n) | \n\n | (230 | \n) | \n\n | (218 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Curtailment \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (1 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Settlement \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Amortization of unrecognized: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Prior service benefit \n | \n\n | \n | (1 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | (3 | \n) | \n\n | (3 | \n) | \n\n | (2 | \n) | \n
| \n Net actuarial loss (gain) \n | \n\n | \n | 66 | \n\n | \n | 96 | \n\n | \n | 65 | \n\n | \n | — | \n\n | \n | 1 | \n\n | \n | (3 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net periodic benefit cost \n | \n\n | $ | \n76 | \n\n | $ | \n140 | \n\n | $ | \n108 | \n\n | $ | \n5 | \n\n | $ | \n8 | \n\n | $ | \n5 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other Changes in Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Prior service benefit \n | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n(8 | \n) | \n$ | \n— | \n\n | $ | \n(11 | \n) | \n$ | \n— | \n\n |
| \n Net actuarial loss (gain) \n | \n\n | \n | 66 | \n\n | \n | 43 | \n\n | \n | 516 | \n\n | \n | (17 | \n) | \n\n | (3 | \n) | \n\n | 50 | \n\n |
| \n Foreign currency exchange rate change \n | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Curtailment \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Settlement \n | \n\n | \n | (1 | \n) | \n\n | — | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Amortization of prior service benefit \n | \n\n | \n | 1 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 3 | \n\n | \n | 3 | \n\n | \n | 2 | \n\n |
| \n Amortization of net actuarial gain (loss) \n | \n\n | \n | (66 | \n) | \n\n | (96 | \n) | \n\n | (65 | \n) | \n\n | — | \n\n | \n | (1 | \n) | \n\n | 3 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other changes recognized in other comprehensive income \n | \n\n | \n | (2 | \n) | \n\n | (52 | \n) | \n\n | 439 | \n\n | \n | (13 | \n) | \n\n | (12 | \n) | \n\n | 55 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total other changes recognized in net periodic benefit cost and other comprehensive income \n | \n\n | $ | \n74 | \n\n | $ | \n88 | \n\n | $ | \n547 | \n\n | $ | \n(8 | \n) | \n$ | \n(4 | \n) | \n$ | \n60 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at and for the year ended December 31,) \n | \n\n | 2016 | \n\n | 2015 | \n\n | ||
|---|---|---|---|---|---|---|---|
| \n Assumptions used to determine benefit obligations \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Discount rate: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Qualified domestic pension plan \n | \n\n | \n | 4.23 | \n% | \n\n | 4.50 | \n% | \n
| \n Nonqualified domestic pension plan \n | \n\n | \n | 4.15 | \n% | \n\n | 4.37 | \n% | \n
| \n Domestic postretirement benefit plan \n | \n\n | \n | 4.10 | \n% | \n\n | 4.35 | \n% | \n
| \n Future compensation increase rate \n | \n\n | \n | 4.00 | \n% | \n\n | 4.00 | \n% | \n
| \n Assumptions used to determine net periodic benefit cost \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Discount rate: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Qualified domestic pension plan: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Service cost \n | \n\n | \n | 4.77 | \n% | \n\n | 4.10 | \n% | \n
| \n Interest cost \n | \n\n | \n | 3.64 | \n% | \n\n | 4.10 | \n% | \n
| \n Nonqualified domestic pension plan: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Service cost \n | \n\n | \n | 4.53 | \n% | \n\n | 4.10 | \n% | \n
| \n Interest cost \n | \n\n | \n | 3.47 | \n% | \n\n | 4.10 | \n% | \n
| \n Domestic postretirement benefit plan: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Interest cost \n | \n\n | \n | 3.53 | \n% | \n\n | 4.10 | \n% | \n
| \n Expected long-term rate of return on assets: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Pension plan \n | \n\n | \n | 7.00 | \n% | \n\n | 7.25 | \n% | \n
| \n Postretirement benefit plan \n | \n\n | \n | 4.00 | \n% | \n\n | 4.00 | \n% | \n
| \n Assumed health care cost trend rates \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Following year: \n | \n\n | \n | \n | \n | \n | \n | \n |
| \n Medical (before age 65) \n | \n\n | \n | 6.50 | \n% | \n\n | 6.75 | \n% | \n
| \n Medical (age 65 and older) \n | \n\n | \n | 7.25 | \n% | \n\n | 7.50 | \n% | \n
| \n Rate to which the cost trend rate is assumed to decline (ultimate trend rate) \n | \n\n | \n | \n5.00 | \n\n% | \n\n | \n5.00 | \n\n% | \n
| \n Year that the rate reaches the ultimate trend rate: \n | \n\n | \n | \n | \n\n | \n | \n | \n\n |
| \n Medical (before age 65) \n | \n\n | \n | 2022 | \n\n | \n | 2022 | \n\n |
| \n Medical (age 65 and older) \n | \n\n | \n | 2025 | \n\n | \n | 2025 | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2016, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | $ | \n9 | \n\n | $ | \n— | \n\n | $ | \n9 | \n\n | $ | \n— | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 14 | \n\n | \n | — | \n\n | \n | 14 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 12 | \n\n | \n | — | \n\n | \n | 12 | \n\n | \n | — | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 511 | \n\n | \n | — | \n\n | \n | 511 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 546 | \n\n | \n | — | \n\n | \n | 546 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Mutual funds \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Equity mutual funds \n | \n\n | \n | 1,285 | \n\n | \n | 1,278 | \n\n | \n | 7 | \n\n | \n | — | \n\n |
| \n Bond mutual funds \n | \n\n | \n | 641 | \n\n | \n | 638 | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total mutual funds \n | \n\n | \n | 1,926 | \n\n | \n | 1,916 | \n\n | \n | 10 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | 747 | \n\n | \n | 747 | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments(1) \n | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash and short-term securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities \n | \n\n | \n | 45 | \n\n | \n | 45 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Money market mutual funds \n | \n\n | \n | 20 | \n\n | \n | 19 | \n\n | \n | 1 | \n\n | \n | — | \n\n |
| \n Other \n | \n\n | \n | 208 | \n\n | \n | 28 | \n\n | \n | 180 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total cash and short-term securities \n | \n\n | \n | 273 | \n\n | \n | 92 | \n\n | \n | 181 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n3,493 | \n\n | $ | \n2,755 | \n\n | $ | \n737 | \n\n | $ | \n1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (at December 31, 2015, in millions) \n | \n\n | Total | \n\n | Level 1 | \n\n | Level 2 | \n\n | Level 3 | \n\n | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Invested assets: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | $ | \n17 | \n\n | $ | \n— | \n\n | $ | \n17 | \n\n | $ | \n— | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 16 | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 16 | \n\n | \n | — | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 491 | \n\n | \n | — | \n\n | \n | 491 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 540 | \n\n | \n | — | \n\n | \n | 540 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Mutual funds \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Equity mutual funds \n | \n\n | \n | 1,237 | \n\n | \n | 1,231 | \n\n | \n | 6 | \n\n | \n | — | \n\n |
| \n Bond mutual funds \n | \n\n | \n | 649 | \n\n | \n | 646 | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total mutual funds \n | \n\n | \n | 1,886 | \n\n | \n | 1,877 | \n\n | \n | 9 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | 625 | \n\n | \n | 624 | \n\n | \n | 1 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments(1) \n | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash and short-term securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities \n | \n\n | \n | 25 | \n\n | \n | 25 | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Money market mutual funds \n | \n\n | \n | 23 | \n\n | \n | 19 | \n\n | \n | 4 | \n\n | \n | — | \n\n |
| \n Other \n | \n\n | \n | 141 | \n\n | \n | 20 | \n\n | \n | 121 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total cash and short-term securities \n | \n\n | \n | 189 | \n\n | \n | 64 | \n\n | \n | 125 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n3,242 | \n\n | $ | \n2,565 | \n\n | $ | \n675 | \n\n | $ | \n2 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n |
| | \n\n | Benefits Expected to be Paid | \n\n | ||||
|---|---|---|---|---|---|---|---|
| \n (in millions) \n | \n\n | Pension Plans | \n\n | Postretirement \nBenefit Plans | \n\n | ||
| \n 2017 \n | \n\n | $ | \n230 | \n\n | $ | \n13 | \n\n |
| \n 2018 \n | \n\n | \n | 240 | \n\n | \n | 14 | \n\n |
| \n 2019 \n | \n\n | \n | 247 | \n\n | \n | 14 | \n\n |
| \n 2020 \n | \n\n | \n | 253 | \n\n | \n | 14 | \n\n |
| \n 2021 \n | \n\n | \n | 258 | \n\n | \n | 14 | \n\n |
| \n 2022 through 2026 \n | \n\n | \n | 1,327 | \n\n | \n | 71 | \n\n |
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
\nFor the year ended December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenues \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n16,788 | \n\n | $ | \n7,746 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n24,534 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,569 | \n\n | \n | 720 | \n\n | \n | 13 | \n\n | \n | — | \n\n | \n | 2,302 | \n\n |
| \n Fee income \n | \n\n | \n | 458 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 458 | \n\n |
| \n Net realized investment gains (losses)(1) \n | \n\n | \n | 30 | \n\n | \n | 39 | \n\n | \n | (1 | \n) | \n\n | — | \n\n | \n | 68 | \n\n |
| \n Other revenues \n | \n\n | \n | 248 | \n\n | \n | 36 | \n\n | \n | — | \n\n | \n | (21 | \n) | \n\n | 263 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | \n | 19,093 | \n\n | \n | 8,541 | \n\n | \n | 12 | \n\n | \n | (21 | \n) | \n\n | 27,625 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and expenses \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expenses \n | \n\n | \n | 10,232 | \n\n | \n | 4,838 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 15,070 | \n\n |
| \n Amortization of deferred acquisition costs \n | \n\n | \n | 2,702 | \n\n | \n | 1,283 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,985 | \n\n |
| \n General and administrative expenses \n | \n\n | \n | 2,928 | \n\n | \n | 1,242 | \n\n | \n | 5 | \n\n | \n | (21 | \n) | \n\n | 4,154 | \n\n |
| \n Interest expense \n | \n\n | \n | 48 | \n\n | \n | — | \n\n | \n | 315 | \n\n | \n | — | \n\n | \n | 363 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total claims and expenses \n | \n\n | \n | 15,910 | \n\n | \n | 7,363 | \n\n | \n | 320 | \n\n | \n | (21 | \n) | \n\n | 23,572 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income (loss) before income taxes \n | \n\n | \n | 3,183 | \n\n | \n | 1,178 | \n\n | \n | (308 | \n) | \n\n | — | \n\n | \n | 4,053 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 999 | \n\n | \n | 208 | \n\n | \n | (168 | \n) | \n\n | — | \n\n | \n | 1,039 | \n\n |
| \n Net income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,154 | \n\n | \n | (3,154 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n2,184 | \n\n | $ | \n970 | \n\n | $ | \n3,014 | \n\n | $ | \n(3,154 | \n) | \n$ | \n3,014 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total OTTI losses \n | \n\n | $ | \n(19 | \n) | \n$ | \n(20 | \n) | \n$ | \n(1 | \n) | \n$ | \n— | \n\n | $ | \n(40 | \n) | \n
| \n OTTI losses recognized in net realized investment gains (losses) \n | \n\n | $ | \n(13 | \n) | \n$ | \n(15 | \n) | \n$ | \n(1 | \n) | \n$ | \n— | \n\n | $ | \n(29 | \n) | \n
| \n OTTI losses recognized in OCI \n | \n\n | $ | \n(6 | \n) | \n$ | \n(5 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(11 | \n) | \n
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
\nFor the year ended December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenues \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n16,254 | \n\n | $ | \n7,620 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n23,874 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,612 | \n\n | \n | 760 | \n\n | \n | 7 | \n\n | \n | — | \n\n | \n | 2,379 | \n\n |
| \n Fee income \n | \n\n | \n | 460 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 460 | \n\n |
| \n Net realized investment gains (losses)(1) \n | \n\n | \n | 13 | \n\n | \n | (11 | \n) | \n\n | 1 | \n\n | \n | — | \n\n | \n | 3 | \n\n |
| \n Other revenues \n | \n\n | \n | 78 | \n\n | \n | 21 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 99 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | \n | 18,417 | \n\n | \n | 8,390 | \n\n | \n | 8 | \n\n | \n | — | \n\n | \n | 26,815 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and expenses \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expenses \n | \n\n | \n | 9,208 | \n\n | \n | 4,515 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 13,723 | \n\n |
| \n Amortization of deferred acquisition costs \n | \n\n | \n | 2,627 | \n\n | \n | 1,258 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,885 | \n\n |
| \n General and administrative expenses \n | \n\n | \n | 2,853 | \n\n | \n | 1,225 | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 4,094 | \n\n |
| \n Interest expense \n | \n\n | \n | 48 | \n\n | \n | — | \n\n | \n | 325 | \n\n | \n | — | \n\n | \n | 373 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total claims and expenses \n | \n\n | \n | 14,736 | \n\n | \n | 6,998 | \n\n | \n | 341 | \n\n | \n | — | \n\n | \n | 22,075 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income (loss) before income taxes \n | \n\n | \n | 3,681 | \n\n | \n | 1,392 | \n\n | \n | (333 | \n) | \n\n | — | \n\n | \n | 4,740 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 1,015 | \n\n | \n | 394 | \n\n | \n | (108 | \n) | \n\n | — | \n\n | \n | 1,301 | \n\n |
| \n Net income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,664 | \n\n | \n | (3,664 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n2,666 | \n\n | $ | \n998 | \n\n | $ | \n3,439 | \n\n | $ | \n(3,664 | \n) | \n$ | \n3,439 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total OTTI losses \n | \n\n | $ | \n(19 | \n) | \n$ | \n(35 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(54 | \n) | \n
| \n OTTI losses recognized in net realized investment gains (losses) \n | \n\n | $ | \n(18 | \n) | \n$ | \n(34 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(52 | \n) | \n
| \n OTTI losses recognized in OCI \n | \n\n | $ | \n(1 | \n) | \n$ | \n(1 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(2 | \n) | \n
CONSOLIDATING STATEMENT OF INCOME (Unaudited)
\nFor the year ended December 31, 2014
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenues \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Premiums \n | \n\n | $ | \n16,097 | \n\n | $ | \n7,616 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n23,713 | \n\n |
| \n Net investment income \n | \n\n | \n | 1,874 | \n\n | \n | 907 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 2,787 | \n\n |
| \n Fee income \n | \n\n | \n | 448 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 450 | \n\n |
| \n Net realized investment gains(1) \n | \n\n | \n | 12 | \n\n | \n | 64 | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | 79 | \n\n |
| \n Other revenues \n | \n\n | \n | 125 | \n\n | \n | 20 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 145 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total revenues \n | \n\n | \n | 18,556 | \n\n | \n | 8,609 | \n\n | \n | 9 | \n\n | \n | — | \n\n | \n | 27,174 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Claims and expenses \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expenses \n | \n\n | \n | 9,274 | \n\n | \n | 4,596 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 13,870 | \n\n |
| \n Amortization of deferred acquisition costs \n | \n\n | \n | 2,604 | \n\n | \n | 1,278 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,882 | \n\n |
| \n General and administrative expenses \n | \n\n | \n | 2,755 | \n\n | \n | 1,194 | \n\n | \n | 15 | \n\n | \n | — | \n\n | \n | 3,964 | \n\n |
| \n Interest expense \n | \n\n | \n | 48 | \n\n | \n | — | \n\n | \n | 321 | \n\n | \n | — | \n\n | \n | 369 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total claims and expenses \n | \n\n | \n | 14,681 | \n\n | \n | 7,068 | \n\n | \n | 336 | \n\n | \n | — | \n\n | \n | 22,085 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income (loss) before income taxes \n | \n\n | \n | 3,875 | \n\n | \n | 1,541 | \n\n | \n | (327 | \n) | \n\n | — | \n\n | \n | 5,089 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 1,095 | \n\n | \n | 417 | \n\n | \n | (115 | \n) | \n\n | — | \n\n | \n | 1,397 | \n\n |
| \n Net income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,904 | \n\n | \n | (3,904 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n2,780 | \n\n | $ | \n1,124 | \n\n | $ | \n3,692 | \n\n | $ | \n(3,904 | \n) | \n$ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total OTTI losses \n | \n\n | $ | \n(16 | \n) | \n$ | \n(6 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(22 | \n) | \n
| \n OTTI losses recognized in net realized investment gains \n | \n\n | $ | \n(19 | \n) | \n$ | \n(7 | \n) | \n$ | \n— | \n\n | $ | \n— | \n\n | $ | \n(26 | \n) | \n
| \n OTTI gains recognized in OCI \n | \n\n | $ | \n3 | \n\n | $ | \n1 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n4 | \n\n |
\n
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
\nFor the year ended December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Net income \n | \n\n | $ | \n2,184 | \n\n | $ | \n970 | \n\n | $ | \n3,014 | \n\n | $ | \n(3,154 | \n) | \n$ | \n3,014 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | \n | (696 | \n) | \n\n | (198 | \n) | \n\n | 11 | \n\n | \n | — | \n\n | \n | (883 | \n) | \n
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | 11 | \n\n | \n | 10 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 21 | \n\n |
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | 25 | \n\n | \n | 11 | \n\n | \n | (20 | \n) | \n\n | — | \n\n | \n | 16 | \n\n |
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | 73 | \n\n | \n | (114 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (41 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss before income taxes and other comprehensive loss of subsidiaries \n | \n\n | \n | (587 | \n) | \n\n | (291 | \n) | \n\n | (9 | \n) | \n\n | — | \n\n | \n | (887 | \n) | \n
| \n Income tax benefit \n | \n\n | \n | (222 | \n) | \n\n | (66 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | (289 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss, net of taxes, before other comprehensive loss of subsidiaries \n | \n\n | \n | (365 | \n) | \n\n | (225 | \n) | \n\n | (8 | \n) | \n\n | — | \n\n | \n | (598 | \n) | \n
| \n Other comprehensive loss of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (590 | \n) | \n\n | 590 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss \n | \n\n | \n | (365 | \n) | \n\n | (225 | \n) | \n\n | (598 | \n) | \n\n | 590 | \n\n | \n | (598 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Comprehensive income \n | \n\n | $ | \n1,819 | \n\n | $ | \n745 | \n\n | $ | \n2,416 | \n\n | $ | \n(2,564 | \n) | \n$ | \n2,416 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
\nFor the year ended December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Net income \n | \n\n | $ | \n2,666 | \n\n | $ | \n998 | \n\n | $ | \n3,439 | \n\n | $ | \n(3,664 | \n) | \n$ | \n3,439 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | \n | (610 | \n) | \n\n | (407 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | (1,020 | \n) | \n
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | (12 | \n) | \n\n | (2 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (14 | \n) | \n
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 64 | \n\n | \n | — | \n\n | \n | 66 | \n\n |
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | (306 | \n) | \n\n | (155 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (461 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss) before income taxes and other comprehensive loss of subsidiaries \n | \n\n | \n | (926 | \n) | \n\n | (564 | \n) | \n\n | 61 | \n\n | \n | — | \n\n | \n | (1,429 | \n) | \n
| \n Income tax expense (benefit) \n | \n\n | \n | (257 | \n) | \n\n | (156 | \n) | \n\n | 21 | \n\n | \n | — | \n\n | \n | (392 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss), net of taxes, before other comprehensive loss of subsidiaries \n | \n\n | \n | (669 | \n) | \n\n | (408 | \n) | \n\n | 40 | \n\n | \n | — | \n\n | \n | (1,037 | \n) | \n
| \n Other comprehensive loss of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (1,077 | \n) | \n\n | 1,077 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive loss \n | \n\n | \n | (669 | \n) | \n\n | (408 | \n) | \n\n | (1,037 | \n) | \n\n | 1,077 | \n\n | \n | (1,037 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Comprehensive income \n | \n\n | $ | \n1,997 | \n\n | $ | \n590 | \n\n | $ | \n2,402 | \n\n | $ | \n(2,587 | \n) | \n$ | \n2,402 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
\nFor the year ended December 31, 2014
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Net income \n | \n\n | $ | \n2,780 | \n\n | $ | \n1,124 | \n\n | $ | \n3,692 | \n\n | $ | \n(3,904 | \n) | \n$ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Changes in net unrealized gains on investment securities: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Having no credit losses recognized in the consolidated statement of income \n | \n\n | \n | 681 | \n\n | \n | 289 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 976 | \n\n |
| \n Having credit losses recognized in the consolidated statement of income \n | \n\n | \n | 9 | \n\n | \n | (7 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | 2 | \n\n |
| \n Net changes in benefit plan assets and obligations \n | \n\n | \n | (15 | \n) | \n\n | (8 | \n) | \n\n | (471 | \n) | \n\n | — | \n\n | \n | (494 | \n) | \n
| \n Net changes in unrealized foreign currency translation \n | \n\n | \n | (173 | \n) | \n\n | (116 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (289 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss) before income taxes and other comprehensive income of subsidiaries \n | \n\n | \n | 502 | \n\n | \n | 158 | \n\n | \n | (465 | \n) | \n\n | — | \n\n | \n | 195 | \n\n |
| \n Income tax expense (benefit) \n | \n\n | \n | 207 | \n\n | \n | 81 | \n\n | \n | (163 | \n) | \n\n | — | \n\n | \n | 125 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income (loss), net of taxes, before other comprehensive income of subsidiaries \n | \n\n | \n | 295 | \n\n | \n | 77 | \n\n | \n | (302 | \n) | \n\n | — | \n\n | \n | 70 | \n\n |
| \n Other comprehensive income of subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 372 | \n\n | \n | (372 | \n) | \n\n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other comprehensive income \n | \n\n | \n | 295 | \n\n | \n | 77 | \n\n | \n | 70 | \n\n | \n | (372 | \n) | \n\n | 70 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Comprehensive income \n | \n\n | $ | \n3,075 | \n\n | $ | \n1,201 | \n\n | $ | \n3,762 | \n\n | $ | \n(4,276 | \n) | \n$ | \n3,762 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
\n
CONSOLIDATING BALANCE SHEET (Unaudited)
\nAt December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Assets \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities, available for sale, at fair value (amortized cost $59,650) \n | \n\n | $ | \n42,014 | \n\n | $ | \n18,452 | \n\n | $ | \n49 | \n\n | $ | \n— | \n\n | $ | \n60,515 | \n\n |
| \n Equity securities, available for sale, at fair value (cost $504) \n | \n\n | \n | 169 | \n\n | \n | 408 | \n\n | \n | 155 | \n\n | \n | — | \n\n | \n | 732 | \n\n |
| \n Real estate investments \n | \n\n | \n | 56 | \n\n | \n | 872 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 928 | \n\n |
| \n Short-term securities \n | \n\n | \n | 2,447 | \n\n | \n | 791 | \n\n | \n | 1,627 | \n\n | \n | — | \n\n | \n | 4,865 | \n\n |
| \n Other investments \n | \n\n | \n | 2,569 | \n\n | \n | 878 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 3,448 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total investments \n | \n\n | \n | 47,255 | \n\n | \n | 21,401 | \n\n | \n | 1,832 | \n\n | \n | — | \n\n | \n | 70,488 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash \n | \n\n | \n | 141 | \n\n | \n | 164 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 307 | \n\n |
| \n Investment income accrued \n | \n\n | \n | 441 | \n\n | \n | 183 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 630 | \n\n |
| \n Premiums receivable \n | \n\n | \n | 4,545 | \n\n | \n | 2,177 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 6,722 | \n\n |
| \n Reinsurance recoverables \n | \n\n | \n | 5,664 | \n\n | \n | 2,623 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 8,287 | \n\n |
| \n Ceded unearned premiums \n | \n\n | \n | 536 | \n\n | \n | 53 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 589 | \n\n |
| \n Deferred acquisition costs \n | \n\n | \n | 1,741 | \n\n | \n | 182 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1,923 | \n\n |
| \n Deferred taxes \n | \n\n | \n | 216 | \n\n | \n | 224 | \n\n | \n | 25 | \n\n | \n | — | \n\n | \n | 465 | \n\n |
| \n Contractholder receivables \n | \n\n | \n | 3,656 | \n\n | \n | 953 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,609 | \n\n |
| \n Goodwill \n | \n\n | \n | 2,578 | \n\n | \n | 1,002 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,580 | \n\n |
| \n Other intangible assets \n | \n\n | \n | 202 | \n\n | \n | 66 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 268 | \n\n |
| \n Investment in subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 27,137 | \n\n | \n | (27,137 | \n) | \n\n | — | \n\n |
| \n Other assets \n | \n\n | \n | 1,973 | \n\n | \n | 370 | \n\n | \n | 34 | \n\n | \n | — | \n\n | \n | 2,377 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total assets \n | \n\n | $ | \n68,948 | \n\n | $ | \n29,398 | \n\n | $ | \n29,036 | \n\n | $ | \n(27,137 | \n) | \n$ | \n100,245 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Liabilities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expense reserves \n | \n\n | $ | \n32,168 | \n\n | $ | \n15,781 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n47,949 | \n\n |
| \n Unearned premium reserves \n | \n\n | \n | 8,575 | \n\n | \n | 3,754 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 12,329 | \n\n |
| \n Contractholder payables \n | \n\n | \n | 3,656 | \n\n | \n | 953 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,609 | \n\n |
| \n Payables for reinsurance premiums \n | \n\n | \n | 156 | \n\n | \n | 117 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 273 | \n\n |
| \n Debt \n | \n\n | \n | 693 | \n\n | \n | — | \n\n | \n | 5,744 | \n\n | \n | — | \n\n | \n | 6,437 | \n\n |
| \n Other liabilities \n | \n\n | \n | 4,106 | \n\n | \n | 1,239 | \n\n | \n | 82 | \n\n | \n | — | \n\n | \n | 5,427 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities \n | \n\n | \n | 49,354 | \n\n | \n | 21,844 | \n\n | \n | 5,826 | \n\n | \n | — | \n\n | \n | 77,024 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Shareholders' equity \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Common stock (1,750.0 shares authorized; 279.6 shares issued and outstanding) \n | \n\n | \n | — | \n\n | \n | 390 | \n\n | \n | 22,614 | \n\n | \n | (390 | \n) | \n\n | 22,614 | \n\n |
| \n Additional paid-in capital \n | \n\n | \n | 11,634 | \n\n | \n | 6,499 | \n\n | \n | — | \n\n | \n | (18,133 | \n) | \n\n | — | \n\n |
| \n Retained earnings \n | \n\n | \n | 7,933 | \n\n | \n | 797 | \n\n | \n | 32,185 | \n\n | \n | (8,719 | \n) | \n\n | 32,196 | \n\n |
| \n Accumulated other comprehensive income (loss) \n | \n\n | \n | 27 | \n\n | \n | (132 | \n) | \n\n | (755 | \n) | \n\n | 105 | \n\n | \n | (755 | \n) | \n
| \n Treasury stock, at cost (489.5 shares) \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (30,834 | \n) | \n\n | — | \n\n | \n | (30,834 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total shareholders' equity \n | \n\n | \n | 19,594 | \n\n | \n | 7,554 | \n\n | \n | 23,210 | \n\n | \n | (27,137 | \n) | \n\n | 23,221 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities and shareholders' equity \n | \n\n | $ | \n68,948 | \n\n | $ | \n29,398 | \n\n | $ | \n29,036 | \n\n | $ | \n(27,137 | \n) | \n$ | \n100,245 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
CONSOLIDATING BALANCE SHEET (Unaudited)
\nAt December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Assets \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities, available for sale, at fair value (amortized cost $58,878) \n | \n\n | $ | \n42,289 | \n\n | $ | \n18,323 | \n\n | $ | \n46 | \n\n | $ | \n— | \n\n | $ | \n60,658 | \n\n |
| \n Equity securities, available for sale, at fair value (cost $528) \n | \n\n | \n | 189 | \n\n | \n | 375 | \n\n | \n | 141 | \n\n | \n | — | \n\n | \n | 705 | \n\n |
| \n Real estate investments \n | \n\n | \n | 56 | \n\n | \n | 933 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 989 | \n\n |
| \n Short-term securities \n | \n\n | \n | 1,947 | \n\n | \n | 1,178 | \n\n | \n | 1,546 | \n\n | \n | — | \n\n | \n | 4,671 | \n\n |
| \n Other investments \n | \n\n | \n | 2,516 | \n\n | \n | 930 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 3,447 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total investments \n | \n\n | \n | 46,997 | \n\n | \n | 21,739 | \n\n | \n | 1,734 | \n\n | \n | — | \n\n | \n | 70,470 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash \n | \n\n | \n | 225 | \n\n | \n | 153 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 380 | \n\n |
| \n Investment income accrued \n | \n\n | \n | 453 | \n\n | \n | 185 | \n\n | \n | 4 | \n\n | \n | — | \n\n | \n | 642 | \n\n |
| \n Premiums receivable \n | \n\n | \n | 4,336 | \n\n | \n | 2,101 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 6,437 | \n\n |
| \n Reinsurance recoverables \n | \n\n | \n | 5,849 | \n\n | \n | 3,061 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 8,910 | \n\n |
| \n Ceded unearned premiums \n | \n\n | \n | 610 | \n\n | \n | 46 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 656 | \n\n |
| \n Deferred acquisition costs \n | \n\n | \n | 1,660 | \n\n | \n | 189 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1,849 | \n\n |
| \n Deferred taxes \n | \n\n | \n | 178 | \n\n | \n | 83 | \n\n | \n | 35 | \n\n | \n | — | \n\n | \n | 296 | \n\n |
| \n Contractholder receivables \n | \n\n | \n | 3,387 | \n\n | \n | 987 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,374 | \n\n |
| \n Goodwill \n | \n\n | \n | 2,573 | \n\n | \n | 1,000 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 3,573 | \n\n |
| \n Other intangible assets \n | \n\n | \n | 203 | \n\n | \n | 76 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 279 | \n\n |
| \n Investment in subsidiaries \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 27,573 | \n\n | \n | (27,573 | \n) | \n\n | — | \n\n |
| \n Other assets \n | \n\n | \n | 1,958 | \n\n | \n | 344 | \n\n | \n | 16 | \n\n | \n | — | \n\n | \n | 2,318 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total assets \n | \n\n | $ | \n68,429 | \n\n | $ | \n29,964 | \n\n | $ | \n29,364 | \n\n | $ | \n(27,573 | \n) | \n$ | \n100,184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Liabilities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Claims and claim adjustment expense reserves \n | \n\n | $ | \n31,965 | \n\n | $ | \n16,330 | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n48,295 | \n\n |
| \n Unearned premium reserves \n | \n\n | \n | 8,335 | \n\n | \n | 3,636 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 11,971 | \n\n |
| \n Contractholder payables \n | \n\n | \n | 3,387 | \n\n | \n | 987 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 4,374 | \n\n |
| \n Payables for reinsurance premiums \n | \n\n | \n | 175 | \n\n | \n | 121 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 296 | \n\n |
| \n Debt \n | \n\n | \n | 693 | \n\n | \n | — | \n\n | \n | 5,651 | \n\n | \n | — | \n\n | \n | 6,344 | \n\n |
| \n Other liabilities \n | \n\n | \n | 3,958 | \n\n | \n | 1,221 | \n\n | \n | 127 | \n\n | \n | — | \n\n | \n | 5,306 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities \n | \n\n | \n | 48,513 | \n\n | \n | 22,295 | \n\n | \n | 5,778 | \n\n | \n | — | \n\n | \n | 76,586 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Shareholders' equity \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Common stock (1,750.0 shares authorized; 295.9 shares issued and outstanding) \n | \n\n | \n | — | \n\n | \n | 390 | \n\n | \n | 22,172 | \n\n | \n | (390 | \n) | \n\n | 22,172 | \n\n |
| \n Additional paid-in capital \n | \n\n | \n | 11,634 | \n\n | \n | 6,499 | \n\n | \n | — | \n\n | \n | (18,133 | \n) | \n\n | — | \n\n |
| \n Retained earnings \n | \n\n | \n | 7,888 | \n\n | \n | 688 | \n\n | \n | 29,933 | \n\n | \n | (8,564 | \n) | \n\n | 29,945 | \n\n |
| \n Accumulated other comprehensive income (loss) \n | \n\n | \n | 394 | \n\n | \n | 92 | \n\n | \n | (157 | \n) | \n\n | (486 | \n) | \n\n | (157 | \n) | \n
| \n Treasury stock, at cost (467.6 shares) \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (28,362 | \n) | \n\n | — | \n\n | \n | (28,362 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total shareholders' equity \n | \n\n | \n | 19,916 | \n\n | \n | 7,669 | \n\n | \n | 23,586 | \n\n | \n | (27,573 | \n) | \n\n | 23,598 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total liabilities and shareholders' equity \n | \n\n | $ | \n68,429 | \n\n | $ | \n29,964 | \n\n | $ | \n29,364 | \n\n | $ | \n(27,573 | \n) | \n$ | \n100,184 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
\n
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
\nFor the year ended December 31, 2016
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Cash flows from operating activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income \n | \n\n | $ | \n2,184 | \n\n | $ | \n970 | \n\n | $ | \n3,014 | \n\n | $ | \n(3,154 | \n) | \n$ | \n3,014 | \n\n |
| \n Net adjustments to reconcile net income to net cash provided by operating activities \n | \n\n | \n | 1,085 | \n\n | \n | 66 | \n\n | \n | (119 | \n) | \n\n | 156 | \n\n | \n | 1,188 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by operating activities \n | \n\n | \n | 3,269 | \n\n | \n | 1,036 | \n\n | \n | 2,895 | \n\n | \n | (2,998 | \n) | \n\n | 4,202 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from investing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Proceeds from maturities of fixed maturities \n | \n\n | \n | 6,589 | \n\n | \n | 2,380 | \n\n | \n | 6 | \n\n | \n | — | \n\n | \n | 8,975 | \n\n |
| \n Proceeds from sales of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | 768 | \n\n | \n | 647 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 1,417 | \n\n |
| \n Equity securities \n | \n\n | \n | 47 | \n\n | \n | 45 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 92 | \n\n |
| \n Real estate investments \n | \n\n | \n | — | \n\n | \n | 69 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 69 | \n\n |
| \n Other investments \n | \n\n | \n | 586 | \n\n | \n | 253 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 839 | \n\n |
| \n Purchases of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | (7,921 | \n) | \n\n | (3,676 | \n) | \n\n | (12 | \n) | \n\n | — | \n\n | \n | (11,609 | \n) | \n
| \n Equity securities \n | \n\n | \n | (6 | \n) | \n\n | (42 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | (51 | \n) | \n
| \n Real estate investments \n | \n\n | \n | (1 | \n) | \n\n | (47 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (48 | \n) | \n
| \n Other investments \n | \n\n | \n | (453 | \n) | \n\n | (127 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (580 | \n) | \n
| \n Net sales (purchases) of short-term securities \n | \n\n | \n | (501 | \n) | \n\n | 383 | \n\n | \n | (81 | \n) | \n\n | — | \n\n | \n | (199 | \n) | \n
| \n Securities transactions in course of settlement \n | \n\n | \n | 12 | \n\n | \n | (32 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | (21 | \n) | \n
| \n Other \n | \n\n | \n | (334 | \n) | \n\n | (10 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (344 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in investing activities \n | \n\n | \n | (1,214 | \n) | \n\n | (157 | \n) | \n\n | (89 | \n) | \n\n | — | \n\n | \n | (1,460 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from financing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Treasury stock acquired—share repurchase authorization \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (2,400 | \n) | \n\n | — | \n\n | \n | (2,400 | \n) | \n
| \n Treasury stock acquired—net employee share-based compensation \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (72 | \n) | \n\n | — | \n\n | \n | (72 | \n) | \n
| \n Dividends paid to shareholders \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (757 | \n) | \n\n | — | \n\n | \n | (757 | \n) | \n
| \n Payment of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (400 | \n) | \n\n | — | \n\n | \n | (400 | \n) | \n
| \n Issuance of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 491 | \n\n | \n | — | \n\n | \n | 491 | \n\n |
| \n Issuance of common stock—employee share options \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 332 | \n\n | \n | — | \n\n | \n | 332 | \n\n |
| \n Dividends paid to parent company \n | \n\n | \n | (2,140 | \n) | \n\n | (858 | \n) | \n\n | — | \n\n | \n | 2,998 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in financing activities \n | \n\n | \n | (2,140 | \n) | \n\n | (858 | \n) | \n\n | (2,806 | \n) | \n\n | 2,998 | \n\n | \n | (2,806 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effect of exchange rate changes on cash \n | \n\n | \n | 1 | \n\n | \n | (10 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (9 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net increase (decrease) in cash \n | \n\n | \n | (84 | \n) | \n\n | 11 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (73 | \n) | \n
| \n Cash at beginning of year \n | \n\n | \n | 225 | \n\n | \n | 153 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 380 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash at end of year \n | \n\n | $ | \n141 | \n\n | $ | \n164 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n307 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Supplemental disclosure of cash flow information \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Income taxes paid (received) \n | \n\n | $ | \n737 | \n\n | $ | \n287 | \n\n | $ | \n(132 | \n) | \n$ | \n— | \n\n | $ | \n892 | \n\n |
| \n Interest paid \n | \n\n | $ | \n47 | \n\n | $ | \n— | \n\n | $ | \n311 | \n\n | $ | \n— | \n\n | $ | \n358 | \n\n |
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
\nFor the year ended December 31, 2015
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Cash flows from operating activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income \n | \n\n | $ | \n2,666 | \n\n | $ | \n998 | \n\n | $ | \n3,439 | \n\n | $ | \n(3,664 | \n) | \n$ | \n3,439 | \n\n |
| \n Net adjustments to reconcile net income to net cash provided by operating activities \n | \n\n | \n | (577 | \n) | \n\n | 414 | \n\n | \n | 330 | \n\n | \n | (172 | \n) | \n\n | (5 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by operating activities \n | \n\n | \n | 2,089 | \n\n | \n | 1,412 | \n\n | \n | 3,769 | \n\n | \n | (3,836 | \n) | \n\n | 3,434 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from investing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Proceeds from maturities of fixed maturities \n | \n\n | \n | 7,543 | \n\n | \n | 3,563 | \n\n | \n | 10 | \n\n | \n | — | \n\n | \n | 11,116 | \n\n |
| \n Proceeds from sales of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | 1,227 | \n\n | \n | 723 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1,950 | \n\n |
| \n Equity securities \n | \n\n | \n | 25 | \n\n | \n | 34 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 59 | \n\n |
| \n Real estate investments \n | \n\n | \n | — | \n\n | \n | 31 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 31 | \n\n |
| \n Other investments \n | \n\n | \n | 503 | \n\n | \n | 210 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 713 | \n\n |
| \n Purchases of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | (8,276 | \n) | \n\n | (3,787 | \n) | \n\n | (27 | \n) | \n\n | — | \n\n | \n | (12,090 | \n) | \n
| \n Equity securities \n | \n\n | \n | (3 | \n) | \n\n | (43 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | (49 | \n) | \n
| \n Real estate investments \n | \n\n | \n | (1 | \n) | \n\n | (122 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (123 | \n) | \n
| \n Other investments \n | \n\n | \n | (423 | \n) | \n\n | (111 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (534 | \n) | \n
| \n Net sales (purchases) of short-term securities \n | \n\n | \n | 179 | \n\n | \n | (489 | \n) | \n\n | (16 | \n) | \n\n | — | \n\n | \n | (326 | \n) | \n
| \n Securities transactions in course of settlement \n | \n\n | \n | (52 | \n) | \n\n | (61 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (113 | \n) | \n
| \n Acquisition, net of cash acquired \n | \n\n | \n | (13 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (13 | \n) | \n
| \n Other \n | \n\n | \n | (343 | \n) | \n\n | 39 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (304 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by (used in) investing activities \n | \n\n | \n | 366 | \n\n | \n | (13 | \n) | \n\n | (36 | \n) | \n\n | — | \n\n | \n | 317 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from financing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Treasury stock acquired—share repurchase authorization \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3,150 | \n) | \n\n | — | \n\n | \n | (3,150 | \n) | \n
| \n Treasury stock acquired—net employee share-based compensation \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (74 | \n) | \n\n | — | \n\n | \n | (74 | \n) | \n
| \n Dividends paid to shareholders \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (739 | \n) | \n\n | — | \n\n | \n | (739 | \n) | \n
| \n Payment of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (400 | \n) | \n\n | — | \n\n | \n | (400 | \n) | \n
| \n Issuance of debt \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 392 | \n\n | \n | — | \n\n | \n | 392 | \n\n |
| \n Issuance of common stock—employee share options \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 183 | \n\n | \n | — | \n\n | \n | 183 | \n\n |
| \n Excess tax benefits from share-based payment arrangements \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 55 | \n\n | \n | — | \n\n | \n | 55 | \n\n |
| \n Dividends paid to parent company \n | \n\n | \n | (2,450 | \n) | \n\n | (1,383 | \n) | \n\n | — | \n\n | \n | 3,833 | \n\n | \n | — | \n\n |
| \n Capital contributions, loans and other transactions between subsidiaries \n | \n\n | \n | — | \n\n | \n | (3 | \n) | \n\n | — | \n\n | \n | 3 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in financing activities \n | \n\n | \n | (2,450 | \n) | \n\n | (1,386 | \n) | \n\n | (3,733 | \n) | \n\n | 3,836 | \n\n | \n | (3,733 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effect of exchange rate changes on cash \n | \n\n | \n | (1 | \n) | \n\n | (11 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (12 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net increase in cash \n | \n\n | \n | 4 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 6 | \n\n |
| \n Cash at beginning of year \n | \n\n | \n | 221 | \n\n | \n | 151 | \n\n | \n | 2 | \n\n | \n | — | \n\n | \n | 374 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash at end of year \n | \n\n | $ | \n225 | \n\n | $ | \n153 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n380 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Supplemental disclosure of cash flow information \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Income taxes paid (received) \n | \n\n | $ | \n1,032 | \n\n | $ | \n384 | \n\n | $ | \n(209 | \n) | \n$ | \n— | \n\n | $ | \n1,207 | \n\n |
| \n Interest paid \n | \n\n | $ | \n47 | \n\n | $ | \n— | \n\n | $ | \n318 | \n\n | $ | \n— | \n\n | $ | \n365 | \n\n |
CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited)
\nFor the year ended December 31, 2014
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (in millions) \n | \n\n | TPC | \n\n | Other \nSubsidiaries | \n\n | TRV | \n\n | Eliminations | \n\n | Consolidated | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Cash flows from operating activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Net income \n | \n\n | $ | \n2,780 | \n\n | $ | \n1,124 | \n\n | $ | \n3,692 | \n\n | $ | \n(3,904 | \n) | \n$ | \n3,692 | \n\n |
| \n Net adjustments to reconcile net income to net cash provided by operating activities \n | \n\n | \n | 343 | \n\n | \n | (293 | \n) | \n\n | 118 | \n\n | \n | (167 | \n) | \n\n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by operating activities \n | \n\n | \n | 3,123 | \n\n | \n | 831 | \n\n | \n | 3,810 | \n\n | \n | (4,071 | \n) | \n\n | 3,693 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from investing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Proceeds from maturities of fixed maturities \n | \n\n | \n | 6,625 | \n\n | \n | 4,258 | \n\n | \n | 11 | \n\n | \n | — | \n\n | \n | 10,894 | \n\n |
| \n Proceeds from sales of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | 595 | \n\n | \n | 453 | \n\n | \n | 1 | \n\n | \n | — | \n\n | \n | 1,049 | \n\n |
| \n Equity securities \n | \n\n | \n | 111 | \n\n | \n | 43 | \n\n | \n | 4 | \n\n | \n | — | \n\n | \n | 158 | \n\n |
| \n Real estate investments \n | \n\n | \n | 1 | \n\n | \n | 14 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 15 | \n\n |
| \n Other investments \n | \n\n | \n | 477 | \n\n | \n | 378 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 855 | \n\n |
| \n Purchases of investments: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fixed maturities \n | \n\n | \n | (6,856 | \n) | \n\n | (4,465 | \n) | \n\n | (4 | \n) | \n\n | — | \n\n | \n | (11,325 | \n) | \n
| \n Equity securities \n | \n\n | \n | (3 | \n) | \n\n | (42 | \n) | \n\n | (7 | \n) | \n\n | — | \n\n | \n | (52 | \n) | \n
| \n Real estate investments \n | \n\n | \n | (22 | \n) | \n\n | (26 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (48 | \n) | \n
| \n Other investments \n | \n\n | \n | (405 | \n) | \n\n | (149 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (554 | \n) | \n
| \n Net purchases of short-term securities \n | \n\n | \n | (268 | \n) | \n\n | (223 | \n) | \n\n | (7 | \n) | \n\n | — | \n\n | \n | (498 | \n) | \n
| \n Securities transactions in course of settlement \n | \n\n | \n | 44 | \n\n | \n | 38 | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 82 | \n\n |
| \n Acquisition, net of cash acquired \n | \n\n | \n | (9 | \n) | \n\n | (3 | \n) | \n\n | — | \n\n | \n | \n | \n | \n | (12 | \n) | \n
| \n Other \n | \n\n | \n | (350 | \n) | \n\n | (8 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (358 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash provided by (used in) investing activities \n | \n\n | \n | (60 | \n) | \n\n | 268 | \n\n | \n | (2 | \n) | \n\n | — | \n\n | \n | 206 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash flows from financing activities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Treasury stock acquired—share repurchase authorization \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (3,275 | \n) | \n\n | — | \n\n | \n | (3,275 | \n) | \n
| \n Treasury stock acquired—net employee share-based compensation \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (57 | \n) | \n\n | — | \n\n | \n | (57 | \n) | \n
| \n Dividends paid to shareholders \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | (729 | \n) | \n\n | — | \n\n | \n | (729 | \n) | \n
| \n Issuance of common stock—employee share options \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 195 | \n\n | \n | — | \n\n | \n | 195 | \n\n |
| \n Excess tax benefits from share-based payment arrangements \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 57 | \n\n | \n | — | \n\n | \n | 57 | \n\n |
| \n Dividends paid to parent company \n | \n\n | \n | (2,978 | \n) | \n\n | (1,093 | \n) | \n\n | — | \n\n | \n | 4,071 | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net cash used in financing activities \n | \n\n | \n | (2,978 | \n) | \n\n | (1,093 | \n) | \n\n | (3,809 | \n) | \n\n | 4,071 | \n\n | \n | (3,809 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Effect of exchange rate changes on cash \n | \n\n | \n | (1 | \n) | \n\n | (9 | \n) | \n\n | — | \n\n | \n | — | \n\n | \n | (10 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net increase (decrease) in cash \n | \n\n | \n | 84 | \n\n | \n | (3 | \n) | \n\n | (1 | \n) | \n\n | — | \n\n | \n | 80 | \n\n |
| \n Cash at beginning of year \n | \n\n | \n | 137 | \n\n | \n | 154 | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | 294 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Cash at end of year \n | \n\n | $ | \n221 | \n\n | $ | \n151 | \n\n | $ | \n2 | \n\n | $ | \n— | \n\n | $ | \n374 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Supplemental disclosure of cash flow information \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Income taxes paid (received) \n | \n\n | $ | \n947 | \n\n | $ | \n336 | \n\n | $ | \n(136 | \n) | \n$ | \n— | \n\n | $ | \n1,147 | \n\n |
| \n Interest paid \n | \n\n | $ | \n47 | \n\n | $ | \n— | \n\n | $ | \n318 | \n\n | $ | \n— | \n\n | $ | \n365 | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2016 (in millions, except per share amounts) \n | \n\n | First \nQuarter | \n\n | Second \nQuarter | \n\n | Third \nQuarter | \n\n | Fourth \nQuarter | \n\n | Total | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total revenues \n | \n\n | $ | \n6,686 | \n\n | $ | \n6,785 | \n\n | $ | \n6,961 | \n\n | $ | \n7,193 | \n\n | $ | \n27,625 | \n\n |
| \n Total expenses \n | \n\n | \n | 5,769 | \n\n | \n | 5,898 | \n\n | \n | 6,014 | \n\n | \n | 5,891 | \n\n | \n | 23,572 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income before income taxes \n | \n\n | \n | 917 | \n\n | \n | 887 | \n\n | \n | 947 | \n\n | \n | 1,302 | \n\n | \n | 4,053 | \n\n |
| \n Income tax expense \n | \n\n | \n | 226 | \n\n | \n | 223 | \n\n | \n | 231 | \n\n | \n | 359 | \n\n | \n | 1,039 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n691 | \n\n | $ | \n664 | \n\n | $ | \n716 | \n\n | $ | \n943 | \n\n | $ | \n3,014 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income per share(1): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | $ | \n2.33 | \n\n | $ | \n2.27 | \n\n | $ | \n2.48 | \n\n | $ | \n3.32 | \n\n | $ | \n10.39 | \n\n |
| \n Diluted \n | \n\n | \n | 2.30 | \n\n | \n | 2.24 | \n\n | \n | 2.45 | \n\n | \n | 3.28 | \n\n | \n | 10.28 | \n\n |
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n 2015 (in millions, except per share amounts) \n | \n\n | First \nQuarter | \n\n | Second \nQuarter | \n\n | Third \nQuarter | \n\n | Fourth \nQuarter | \n\n | Total | \n\n | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| \n Total revenues \n | \n\n | $ | \n6,629 | \n\n | $ | \n6,710 | \n\n | $ | \n6,798 | \n\n | $ | \n6,678 | \n\n | $ | \n26,815 | \n\n |
| \n Total expenses \n | \n\n | \n | 5,481 | \n\n | \n | 5,634 | \n\n | \n | 5,491 | \n\n | \n | 5,469 | \n\n | \n | 22,075 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income before income taxes \n | \n\n | \n | 1,148 | \n\n | \n | 1,076 | \n\n | \n | 1,307 | \n\n | \n | 1,209 | \n\n | \n | 4,740 | \n\n |
| \n Income tax expense \n | \n\n | \n | 315 | \n\n | \n | 264 | \n\n | \n | 379 | \n\n | \n | 343 | \n\n | \n | 1,301 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income \n | \n\n | $ | \n833 | \n\n | $ | \n812 | \n\n | $ | \n928 | \n\n | $ | \n866 | \n\n | $ | \n3,439 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Net income per share(1): \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Basic \n | \n\n | $ | \n2.58 | \n\n | $ | \n2.56 | \n\n | $ | \n3.00 | \n\n | $ | \n2.87 | \n\n | $ | \n10.99 | \n\n |
| \n Diluted \n | \n\n | \n | 2.55 | \n\n | \n | 2.53 | \n\n | \n | 2.97 | \n\n | \n | 2.83 | \n\n | \n | 10.88 | \n\n |
1. GUARANTEES
\nThe Travelers Companies, Inc. (TRV) fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033.
\nTRV also has contingent obligations for guarantees in connection with the selling of businesses to third parties and various indemnifications including indemnifications to service providers in the normal course of business. The guarantees and indemnification clauses are often standard contractual terms and include indemnifications for breaches of representations and warranties and in some cases obligations arising from certain liabilities. The terms of these provisions vary in duration and nature. Certain of the guarantees and indemnifications described above have no stated or notional amounts or limitation to the maximum potential future payments, and, accordingly, TRV is unable to provide an estimate of the maximum potential payments for such arrangements.
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Revenue reconciliation \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Earned premiums \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Business and International Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Domestic: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Workers' compensation \n | \n\n | $ | \n3,969 | \n\n | $ | \n3,867 | \n\n | $ | \n3,711 | \n\n |
| \n Commercial automobile \n | \n\n | \n | 2,010 | \n\n | \n | 1,922 | \n\n | \n | 1,900 | \n\n |
| \n Commercial property \n | \n\n | \n | 1,769 | \n\n | \n | 1,766 | \n\n | \n | 1,747 | \n\n |
| \n General liability \n | \n\n | \n | 1,977 | \n\n | \n | 1,898 | \n\n | \n | 1,834 | \n\n |
| \n Commercial multi-peril \n | \n\n | \n | 3,148 | \n\n | \n | 3,133 | \n\n | \n | 3,071 | \n\n |
| \n Other \n | \n\n | \n | 31 | \n\n | \n | 39 | \n\n | \n | 42 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Domestic \n | \n\n | \n | 12,904 | \n\n | \n | 12,625 | \n\n | \n | 12,305 | \n\n |
| \n International \n | \n\n | \n | 1,716 | \n\n | \n | 1,896 | \n\n | \n | 2,207 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Business and International Insurance \n | \n\n | \n | 14,620 | \n\n | \n | 14,521 | \n\n | \n | 14,512 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Bond & Specialty Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Fidelity and surety \n | \n\n | \n | 962 | \n\n | \n | 954 | \n\n | \n | 936 | \n\n |
| \n General liability \n | \n\n | \n | 946 | \n\n | \n | 955 | \n\n | \n | 963 | \n\n |
| \n Other \n | \n\n | \n | 180 | \n\n | \n | 176 | \n\n | \n | 177 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Bond & Specialty Insurance \n | \n\n | \n | 2,088 | \n\n | \n | 2,085 | \n\n | \n | 2,076 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Personal Insurance: \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Automobile \n | \n\n | \n | 4,013 | \n\n | \n | 3,512 | \n\n | \n | 3,316 | \n\n |
| \n Homeowners and Other \n | \n\n | \n | 3,813 | \n\n | \n | 3,756 | \n\n | \n | 3,809 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total Personal Insurance \n | \n\n | \n | 7,826 | \n\n | \n | 7,268 | \n\n | \n | 7,125 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total earned premiums \n | \n\n | \n | 24,534 | \n\n | \n | 23,874 | \n\n | \n | 23,713 | \n\n |
| \n Net investment income \n | \n\n | \n | 2,302 | \n\n | \n | 2,379 | \n\n | \n | 2,787 | \n\n |
| \n Fee income \n | \n\n | \n | 458 | \n\n | \n | 460 | \n\n | \n | 450 | \n\n |
| \n Other revenues \n | \n\n | \n | 252 | \n\n | \n | 93 | \n\n | \n | 145 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating revenues for reportable segments \n | \n\n | \n | 27,546 | \n\n | \n | 26,806 | \n\n | \n | 27,095 | \n\n |
| \n Other revenues \n | \n\n | \n | 11 | \n\n | \n | 6 | \n\n | \n | — | \n\n |
| \n Net realized investment gains \n | \n\n | \n | 68 | \n\n | \n | 3 | \n\n | \n | 79 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated revenues \n | \n\n | $ | \n27,625 | \n\n | $ | \n26,815 | \n\n | $ | \n27,174 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Income reconciliation, net of tax \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Total operating income for reportable segments \n | \n\n | $ | \n3,211 | \n\n | $ | \n3,692 | \n\n | $ | \n3,898 | \n\n |
| \n Interest Expense and Other(1) \n | \n\n | \n | (244 | \n) | \n\n | (255 | \n) | \n\n | (257 | \n) | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total operating income \n | \n\n | \n | 2,967 | \n\n | \n | 3,437 | \n\n | \n | 3,641 | \n\n |
| \n Net realized investment gains \n | \n\n | \n | 47 | \n\n | \n | 2 | \n\n | \n | 51 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total consolidated net income \n | \n\n | $ | \n3,014 | \n\n | $ | \n3,439 | \n\n | $ | \n3,692 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n (for the year ended December 31, in millions) \n | \n\n | 2016 | \n\n | 2015 | \n\n | 2014 | \n\n | |||
|---|---|---|---|---|---|---|---|---|---|---|
| \n Fixed maturities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n U.S. Treasury securities and obligations of U.S. government and government agencies and authorities \n | \n\n | $ | \n— | \n\n | $ | \n— | \n\n | $ | \n— | \n\n |
| \n Obligations of states, municipalities and political subdivisions \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Debt securities issued by foreign governments \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| \n Mortgage-backed securities, collateralized mortgage obligations and pass-through securities \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | 1 | \n\n |
| \n All other corporate bonds \n | \n\n | \n | 15 | \n\n | \n | 13 | \n\n | \n | 15 | \n\n |
| \n Redeemable preferred stock \n | \n\n | \n | — | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total fixed maturities \n | \n\n | \n | 15 | \n\n | \n | 13 | \n\n | \n | 16 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Equity securities \n | \n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n Public common stock \n | \n\n | \n | 9 | \n\n | \n | 37 | \n\n | \n | 9 | \n\n |
| \n Non-redeemable preferred stock \n | \n\n | \n | 3 | \n\n | \n | — | \n\n | \n | — | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total equity securities \n | \n\n | \n | 12 | \n\n | \n | 37 | \n\n | \n | 9 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Other investments \n | \n\n | \n | 2 | \n\n | \n | 2 | \n\n | \n | 1 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| \n Total \n | \n\n | $ | \n29 | \n\n | $ | \n52 | \n\n | $ | \n26 | \n\n |
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n
| | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n