Item 8.01. Other Events.
The Travelers Companies, Inc. (the Company) is filing this Current Report on Form 8-K (Form 8-K) to (1) reclassify certain of its historical segment information contained in the Companys Annual Report on Form 10-K for the year ended December 31, 2016 (the Annual Report), as filed with the Securities and Exchange Commission on February 16, 2017, to conform the presentation of such segment information to the manner in which the Companys businesses have been managed starting April 1, 2017 and reflect the revised names and descriptions of certain businesses comprising these segments and other related changes; and (2) update and add certain insurance terms defined in the Glossary of Selected Insurance Terms (the Glossary) of the Annual Report, each as described below. This information is filed as Exhibit 99.1 to this Form 8-K.
Additional detail on these items is as follows:
(1)
Reclassification of Segment Information
. Effective April 1, 2017, the Companys results are being reported in the following three business segments Business Insurance, Bond & Specialty Insurance and Personal Insurance, reflecting a change in the manner in which the Companys businesses are being managed as of that date, as well as the aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. While the segmentation of the Companys domestic businesses is unchanged, the Companys international businesses, which were previously managed and reported in total within the Business and International Insurance segment, are now being disaggregated by product type among the three newly aligned reportable business segments. All prior periods presented have been reclassified to conform to this presentation.
In connection with these changes, the Company has revised the names and descriptions of certain businesses comprising the Companys segments and has reflected other related changes.
The reclassification of historical segment information has no effect on the Companys previously reported consolidated results of operations, financial condition, cash flows or the quantitative value of ratios presented in the Annual Report; however, as indicated above, the reclassifications impacted the presentation of certain historical segment data.
All other information in the Annual Report, other than that described in the following paragraph, remains unchanged and has not been otherwise updated for events occurring after the date of such report.
(2)
Update and Addition of Certain Insurance Terms
. The Company is also filing this Form 8-K to replace the terms operating income (loss), operating income (loss) per share and operating return on equity, which are defined in the Glossary of the Annual Report, with the terms core income (loss), core income (loss) per share and core return on equity, respectively. The calculations of all three newly defined terms are unchanged from the calculations of the previously defined terms.
In addition, the term segment income (loss) is a newly defined term that is calculated on the same basis as core income (loss) except on a segment basis only. This calculation is unchanged from the Companys previously used term operating income (loss) by reportable business segment.
This update and addition are a result of recent SEC insurance industry guidance concerning insurers terminology for non-GAAP financial measures.
Concurrent with the filing of this Current Report on Form 8-K, the Company has filed a separate Current Report on Form 8-K to (1) furnish, under Item 7.01, certain reclassified historical segment information in its Financial Supplement for the quarter ended March 31, 2017, which Financial Supplement was furnished under the cover of Form 8-K to the Securities and Exchange Commission on April 20, 2017, to conform the presentation of segment information to the revised segment alignment as described above; and (2) file, under Item 8.01, certain reclassified historical segment information contained in the Companys Quarterly Report on Form 10-Q for the period ended March 31, 2017 as was filed with the Securities and Exchange Commission on April 20, 2017, to conform the presentation of such segment information to the revised segment alignment.
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