Segments Information

6 Months Ended

Jun. 30, 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:

	Periods Ended June 30
	Second Quarter						Six Months
	2013			2012			2013			2012
	(in millions)
Revenues
Property and casualty insurance
Premiums earned
Personal insurance	$	1,050		$	1,014		$	2,081		$	2,004
Commercial insurance		1,299			1,305			2,607			2,591
Specialty insurance		645			664			1,311			1,336
Total insurance		2,994			2,983			5,999			5,931
Reinsurance assumed		1			—			—			3
		2,995			2,983			5,999			5,934
Investment income		361			381			724			772
Total property and casualty insurance		3,356			3,364			6,723			6,706
Corporate and other		16			12			28			24
Realized investment gains, net		179			47			317			103
Total revenues	$	3,551		$	3,423		$	7,068		$	6,833
Income (loss) before income tax
Property and casualty insurance
Underwriting
Personal insurance	$	75		$	58		$	225		$	219
Commercial insurance		124			18			319			69
Specialty insurance		96			65			191			131
Total insurance		295			141			735			419
Reinsurance assumed		6			8			10			19
		301			149			745			438
Increase in deferred policy acquisition costs		16			10			57			24
Underwriting income		317			159			802			462
Investment income		349			373			700			753
Other income		9			6			14			5
Total property and casualty insurance		675			538			1,516			1,220
Corporate and other		(58	)		(58	)		(121	)		(117	)
Realized investment gains, net		179			47			317			103
Total income before income tax	$	796		$	527		$	1,712		$	1,206