Segments Information

6 Months Ended

Jun. 30, 2012

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 June 30
	Second Quarter						Six Months
	2012			2011			2012			2011
	(in millions)
Revenues
Property and casualty insurance
Premiums earned
Personal insurance	$	1,014		$	980		$	2,004		$	1,937
Commercial insurance		1,305			1,234			2,591			2,443
Specialty insurance		664			697			1,336			1,384
Total insurance		2,983			2,911			5,931			5,764
Reinsurance assumed		—			2			3			3
		2,983			2,913			5,934			5,767
Investment income		381			405			772			796
Total property and casualty insurance		3,364			3,318			6,706			6,563
Corporate and other		12			13			24			28
Realized investment gains, net		47			69			103			229
Total revenues	$	3,423		$	3,400		$	6,833		$	6,820
Income (loss) before income tax
Property and casualty insurance
Underwriting
Personal insurance	$	58		$	3		$	219		$	84
Commercial insurance		18			(54	)		69			(98	)
Specialty insurance		65			144			131			279
Total insurance		141			93			419			265
Reinsurance assumed		8			10			19			15
		149			103			438			280
Increase in deferred policy acquisition costs		10			32			24			57
Underwriting income		159			135			462			337
Investment income		373			394			753			775
Other income		6			11			5			16
Total property and casualty insurance		538			540			1,220			1,128
Corporate and other loss		(58	)		(63	)		(117	)		(126	)
Realized investment gains, net		47			69			103			229
Total income before income tax	$	527		$	546		$	1,206		$	1,231