Segments Information

9 Months Ended

Sep. 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 runoff 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 September 30
	Third Quarter						Nine Months
	2011			2010			2011			2010
	(in millions)
Revenues
Property and casualty insurance Premiums earned
Personal insurance	$	987		$	942		$	2,924		$	2,800
Commercial insurance		1,249			1,159			3,692			3,475
Specialty insurance		693			694			2,077			2,093
Total insurance		2,929			2,795			8,693			8,368
Reinsurance assumed		3			3			6			11
		2,932			2,798			8,699			8,379
Investment income		404			398			1,200			1,187
Total property and casualty insurance		3,336			3,196			9,899			9,566
Corporate and other		13			17			41			71
Realized investment gains, net		71			54			300			271
Total revenues	$	3,420		$	3,267		$	10,240		$	9,908
Income (loss) before income tax
Property and casualty insurance Underwriting
Personal insurance	$	(168	)	$	125		$	(84	)	$	143
Commercial insurance		8			151			(90	)		262
Specialty insurance		89			123			368			404
Total insurance		(71	)		399			194			809
Reinsurance assumed		11			7			26			21
		(60	)		406			220			830
Increase (decrease) in deferred policy acquisition costs		13			(7	)		70			36
Underwriting income (loss)		(47	)		399			290			866
Investment income		396			390			1,171			1,162
Other income (charges)		8			(2	)		24			(5	)
Total property and casualty insurance		357			787			1,485			2,023
Corporate and other loss		(62	)		(57	)		(188	)		(160	)
Realized investment gains, net		71			54			300			271
Total income before income tax	$	366		$	784		$	1,597		$	2,134