Travelers Consolidated Statement

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Complete common size financial statements (Balance Sheet, Statement of Income, Statement of Changes in Shareholders Equity, and Statement of Cash Flows for the data below for 2009, 2008 & 2007


Travelers Consolidated Statement of Income (in millions, except per share amounts) 
2009 2008 2007
Revenues
Premiums.............................................$21,418 $21,579 $21,470
Net investment income..................................2,776 2,792 3,761
Fee income...............................................306 390 508
Net realized investment gains (losses)....................17 (415) 154
Other revenues...........................................163 131 124
Total revenues........................................24,680 24,477 26,017

Claims and expenses
Claims and claim adjustment expenses..................12,408 12,993 12,397
Amortization of deferred acquisition costs.............3,813 3,880 3,706
General and administrative expenses....................3,366 3,518 3,352
Interest expense.........................................382 370 346
Total claims & expenses...............................19,969 20,761 19,801
Income before income taxes.............................4,711 3,716 6,216
Income tax expense.....................................1,089 792 1,615
Net income.............................................3,622 2,924 4,601
Net income per share
Basic...................................................6.38 4.87 7.00
Diluted.................................................6.33 4.81 6.85

Weighted average number of common shares outstanding
Basic.................................................563.20 595.90 652.00
Diluted...............................................568.60 604.30 668.60

Net Realized Investment Gains (Losses)
Other-than-temporary impairment losses:
Total losses...........................................(323) (420) (70)
Portion of losses recognized in accumulated other changes 
in equity from nonowner sources...........................65 - -
Other than temporary impairment losses....................(258) (420) (70)
Other net realized investment gains........................275 5 224
Net realized investment gains (losses).....................$17 $(415) $154


Complete common size financial statements for the data below for 2009, 2008 & 2007
Travelers Consolidated Balance Sheet (in millions)
2009 2008
Assets
Fixed maturities, available for sale at fair value (including $90 and $8 subject to securities lending) (amortized cost $63,311 and $61,569.......$65,847 $61,275
Equity securities, at fair value (cost $373 and $461)................451 379
Real estate..........................................................865 827
Short-term securities...............................................4,852 5,222
Other investments...................................................2,950 3,035
Total investments..................................................74,965 70,738
Cash..................................................................255 350
Investment income accrued.............................................825 823
Premiums receivable.................................................5,471 5,835
Reinsurance recoverables...........................................12,816 14,232
Ceded unearned premiums...............................................916 941
Deferred acquisition costs..........................................1,758 1,774
Deferred tax asset....................................................672 1,965
Contractholder receivables..........................................5,797 6,350
Goodwill............................................................3,365 3,366
Other intangible assets...............................................588 688
Other assets........................................................2,132 2,570
Total assets...................................................$109,560 $109,632

Liabilities
Claims and claim adjustment expense reserves...................$53,127 $54,723
Unearned premium reserves.......................................10,861 10,957
Contractholder payables..........................................5,797 6,350
Payables for reinsurance premiums..................................546 528
Debt.............................................................6,527 6,181
Other liabilities................................................5,287 5,574
Total liabilities...............................................82,145 84,313
Shareholders equity
Preferred Stock Savings Plan - convertible preferred stock 
(0.2 and 0.3 shares issued and outstanding).........................79 89
Common stock (1,748.6 shares authorized; 520.3 and 585.1 shares issued and
outstanding)........................................................19,593 19,242
Retained earnings...................................................16,315 13,314
Accumulated other changes in equity from nonowner sources............1,219 (900) 
Treasury stock, at cost (199.6 and 128.8 shares)...................(9,791)(6,426)
Total shareholders equity..........................................27,415 25,319


Travelers Consolidated Statement of Changes in Shareholders Equity (millions)

2009 2008 2007
Convertible preferred stock -savings plan
Balance, beginning of year...................................$89 $112 $129
Redemptions during year.....................................(10) (23) (17)
Balance, end of year.........................................79 89 112

Common stock
Balance, beginning of year...............................19,242 18,990 18,530
Employee share-based compensation...........................210 114 260
Compensation amortization under share-based plans & other 
changes.....................................................141 138 164
Conversion of convertible notes............................. - - 36
Balance, end of year.....................................19,593 19,242 18,990

Retained earnings
Balance, beginning of year...............................13,314 11,110 7,253
Cumulative effect of adoption of updated accounting 
guidance at April 1, 2009 (see note 1).......................71 - -
Net income................................................3,622 2,924 4,601
Dividends.................................................(696) (715) (742)
Other........................................................4 (5) (2)
Balance, end of year....................................16,315 13,214 11,110
Accumulated other changes in equity from nonowner 
sources, net of tax
Balance, beginning of year...............................(900) 670 452
Cumulative effect of adoption of updated accounting 
guidance at April 1, 2009 (see note 1)....................(71) - -
Change in net unrealized gain (loss) on investment securities:
Having no credit losses recognized in the consolidated statement
of income.................................................1,945 (764) 167
Having credit losses recognized in the consolidated 
statement of income.........................................131 - -
Net change in benefit plan assets and obligations recognized 
in equity...................................................(88) (405) (50)
Net change in unrealized foreign currency translation and
other changes................................................202 (401) 101
Balance, end of year.......................................1,219 (900) 670

Treasury stock (at cost)
Balance beginning of year................................ (6,426) (4,266) (1,229)
Treasury shares acquired-share repurchase authorization...(3,300) (2,122) (2,947)
Net shares acquired related to employee share-based
compensation plans...........................................(65) (38) (90)
Balance, end of year....................................(9,791) (6,426) (4,266)
Total common shareholders' equity........................27,336 25,230 26,504
Total shareholders' equity..............................$27,415 $25,319 $26,616

Common shares outstanding
Balance, beginning of year................................585.1 627.80 678.3
Treasury shares acquired - share repurchase authorization(69.4) (45.0) (56.0)
Net shares issued under employee share-based compensation
plans.......................................................4.6 2.3 4.8
Shares issued pursuant to conversion of convertible notes....- - 0.7
Balance, end of year........................................520.3 585.1 627.8

Summary of changes in equity from nonowner sources
Net income..................................................$3,622 $2,924 $4,601
Other changes in equity from nonowner sources................2,190 (1,570) 218
Total changes in equity from nonowner sources................5,812 1,354 4,819


Travelers Statement of Cash Flows (in millions)
For year ended December 31 2009 2008 2007 
Cash Flow from operating activities
Net Income............................................$3,622 $2,924 $4,601 
Adjustments to reconcile net income to net cash 
provided by operating activities:
Net realized investment (gains) losses..................(17) 415 (154) 
Depreciation and amortization............................797 821 811
Deferred federal income tax expense (benefit)............213 (58) 230
Amoritization of deferred acquisition costs............3,813 3,880 3,706
Equity in (income) loss from other investments...........126 312 (570)
Premiums receivable......................................364 285 (4)
Reinsurance recoverables...............................1,416 1,209 2,172
Deferred acquisition costs............................(3,797) 3,845) (3,925)
Claims and claim adjustment expense reserves..........(1,596)(2,033) (1,410)
Unearned premium reserves.............................(96) (270) 103
Other.................................................(614) (502) (274)
Net cash provided by operating activities.............4,231 3,138 5,286

Cash flows from investing activities.
Proceeds from maturities of fixed maturities..........5,316 4,869 5,305
Proceeds from investments:
Fixed maturities......................................2,805 6,932 7,323
Equity 
securities...............................................65 53 106
Real estate..............................................- 25 11
Other investments........................................511 655 1,460
Purchases of investments:
Fixed maturities.....................................(9,647) (11,127) (14,719)
Equity securities.......................................(24) (95) (135)
Real estate.............................................(15) (38) (74)
Other investments.......................................(349) (667) (740)
Net sales (purchases) of short-term securities...........370 (406) (562)
Securities transactions in course of settlement..........395 (318) (123)
Other....................................................(326) (45) (378)
Net cash used in investing activities....................(899) (162) (2,526)

Cash flows from financing acativities
Payment of debt..........................................(143) (552) (1,956)
Issuance of debt..........................................494 496 2,461
Dividends paid to shareholders............................(693) (715) (742)
Issuance of common stock-employee share options............180 89 218
Treasury stock acquired -share repurchase authorization (3,259) (2,167) (2,920)
Treasury stock acquired - net employee share-based
compensation................................................(29) (29) (39)
Excess tax benefits from share-based payment arrangements....8 10 25
Net cash used in financing activities.....................(3,442) (2,868) (2,953)
Effect of exchange rate changes on cash.......................15 (29) 5
Net increase (decrease) in cash..............................(95) 79 188)
Cash at beginning of period.................................. 350 271 459
Cash at end of period.........................................255 350 271
Supplemental disclosure of cash flow information
Income taxes paid..............................................876 841 1,346
Interest paid..................................................385 375 357

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