QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2012

QUARTERLY FINANCIAL DATA

QUARTERLY FINANCIAL DATA

Summarized unaudited quarterly financial data for 2012 and 2011 are shown below. In management’s opinion, the interim financial data contain all adjustments, consisting of normal recurring items, necessary to present fairly the results of operations for the interim periods.

	Three Months Ended
	March 31						June 30						September 30						December 31
	2012			2011			2012			2011			2012			2011			2012(a)			2011
	(in millions except for per share amounts)
Revenues	$	3,410		$	3,420		$	3,423		$	3,400		$	3,362		$	3,420		$	3,400		$	3,345
Losses and expenses		2,731			2,735			2,896			2,854			2,635			3,054			3,337			2,743
Federal and foreign income tax (credit)		173			176			123			127			194			68			(39	)		150
Net income	$	506		$	509		$	404		$	419		$	533		$	298		$	102		$	452
Basic earnings per share	$	1.85		$	1.71		$	1.49		$	1.43		$	1.99		$	1.04		$	.39		$	1.62
Diluted earnings per share	$	1.83		$	1.70		$	1.48		$	1.42		$	1.98		$	1.04		$	.38		$	1.60
Underwriting ratios
Losses to premiums earned		58.0	%		62.0	%		62.5	%		63.6	%		53.8	%		70.2	%		80.3	%		59.3	%
Expenses to premiums written		32.2			31.7			31.3			31.3			32.5			32.4			30.9			30.6
Combined		90.2	%		93.7	%		93.8	%		94.9	%		86.3	%		102.6	%		111.2	%		89.9	%

(a) In the fourth quarter of 2012, revenues were reduced by reinsurance reinstatement premium costs of $53 million and losses and expenses included net losses of $829 million related to Storm Sandy. Net income for the quarter was reduced by $573 million, or $2.15 of diluted earnings per share ($2.16 of basic earnings per share), for the after–tax effect of the net costs. Excluding the impact of Storm Sandy, the losses to premiums earned ratio was 50.9%, the expenses to premiums written ratio was 30.4% and the combined ratio was 81.3%.