Segments Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segments Information

4) 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:

	Three Months Ended March 31
	2013			2012
	(in millions)
Revenues
Property and casualty insurance
Premiums earned
Personal insurance	$	1,031		$	990
Commercial insurance		1,308			1,286
Specialty insurance		666			672
Total insurance		3,005			2,948
Reinsurance assumed		(1	)		3
		3,004			2,951
Investment income		363			391
Total property and casualty insurance		3,367			3,342
Corporate and other		12			12
Realized investment gains, net		138			56
Total revenues	$	3,517		$	3,410
Income (loss) before income tax
Property and casualty insurance
Underwriting
Personal insurance	$	150		$	161
Commercial insurance		195			51
Specialty insurance		95			66
Total insurance		440			278
Reinsurance assumed		4			11
		444			289
Increase in deferred policy acquisition costs		41			14
Underwriting income		485			303
Investment income		351			380
Other income (charges)		5			(1	)
Total property and casualty insurance		841			682
Corporate and other		(63	)		(59	)
Realized investment gains, net		138			56
Total income before income tax	$	916		$	679