Segments Information

6 Months Ended

Jun. 30, 2011

Segments Information [Abstract]

Segments Information

5) Segments Information

     The principal business of the Corporation is the sale of property and casualty insurance. The profitability of the property and casualty insurance business depends on the results of both underwriting operations and investments, which are viewed as two distinct operations. The underwriting operations are managed and evaluated separately from the investment function.

     The property and casualty insurance subsidiaries underwrite most lines of property and casualty insurance. Underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. The personal segment targets the personal insurance market. The personal classes include automobile, homeowners and other personal coverages. The commercial segment includes those classes of business that are generally available in broad markets and are of a more commodity nature. Commercial classes include multiple peril, casualty, workers’ compensation and property and marine. The specialty segment includes those classes of business that are available in more limited markets since they require specialized underwriting and claim settlement. Specialty classes include professional liability coverages and surety. The reinsurance assumed business is in run-off following the transfer of the ongoing business to a reinsurance company in 2005.

     Corporate and other includes investment income earned on corporate invested assets, corporate expenses and the results of the Corporation’s non-insurance subsidiaries.

Revenues and income before income tax of each operating segment were as follows:

	Periods Ended June 30
	Second Quarter						Six Months
	2011			2010			2011			2010
	(in millions)
Revenues
Property and casualty insurance Premiums earned
Personal insurance	$	980		$	933		$	1,937		$	1,858
Commercial insurance		1,234			1,164			2,443			2,316
Specialty insurance		697			698			1,384			1,399
Total insurance		2,911			2,795			5,764			5,573
Reinsurance assumed		2			4			3			8
		2,913			2,799			5,767			5,581
Investment income		405			393			796			789
Total property and casualty insurance		3,318			3,192			6,563			6,370
Corporate and other		13			36			28			54
Realized investment gains, net		69			90			229			217
Total revenues	$	3,400		$	3,318		$	6,820		$	6,641
Income (loss) before income tax
Property and casualty insurance Underwriting
Personal insurance	$	3		$	42		$	84		$	18
Commercial insurance		(54	)		68			(98	)		111
Specialty insurance		144			131			279			281
Total insurance		93			241			265			410
Reinsurance assumed		10			1			15			14
		103			242			280			424
Increase in deferred policy acquisition costs		32			21			57			43
Underwriting income		135			263			337			467
Investment income		394			385			775			772
Other income (charges)		11			4			16			(3	)
Total property and casualty Insurance		540			652			1,128			1,236
Corporate and other loss		(63	)		(40	)		(126	)		(103	)
Realized investment gains, net		69			90			229			217
Total income before income tax	$	546		$	702		$	1,231		$	1,350