Exhibit 99.1

The Travelers Companies, Inc.

385 Washington Street

St. Paul, MN 55102-1396

NEWS RELEASE

www.travelers.com

Travelers Reports First Quarter 2007 Net Income of $1.086 Billion, or $1.56 per Diluted Share

Operating Income per Diluted Share Increased 10% from Prior Year Quarter

Net Written Premiums Increased 8% from Prior Year Quarter

SAINT PAUL, Minn. (April 26, 2007) – The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $1.086 billion, or $1.62 per basic share and $1.56 per diluted share, for the quarter ended March 31, 2007, compared to $1.006 billion, or $1.45 per basic share and $1.41 per diluted share, for the quarter ended March 31, 2006. Operating income in the current quarter was $1.078 billion, or $1.61 per basic share and $1.55 per diluted share, compared to $1.011 billion, or $1.46 per basic share and $1.41 per diluted share, in the prior year quarter.

“We are delighted with our strong top and bottom line results this quarter,” commented Jay Fishman, Chairman and Chief Executive Officer. “Many of our agents have confirmed to us that access to our organization and our industry-leading breadth of products has become easier, and we have succeeded in linking many of these products together. Consequently, new business flow for us is up. Our longstanding emphasis on sophisticated business analytics provides us with an important competitive advantage to capitalize on this opportunity. As a result, we believe we can continue to grow our business thoughtfully and profitably, realizing the benefits of the strategies that we began putting in place several years ago.

“Overall margins, as evidenced by our accident year loss ratios, remain at levels that are generally consistent with those that we experienced last year, and our return on equity remains attractive. We continue to make significant strategic investments in systems, technology and infrastructure to further develop our competitive advantages. While it is too early to predict revenue growth for the remainder of this year, we are feeling good about our income prospects and are increasing our guidance accordingly,” concluded Mr. Fishman.

Current Quarter Highlights

· Return on equity of 17.3 percent and operating return on equity of 17.5 percent for the quarter.

· Record net investment income of $737 million after-tax, a 10 percent increase from the prior year quarter.

· Net written premiums of $5.144 billion, an 8 percent increase from the prior year quarter.

· Strong GAAP combined ratios in all segments, with Business Insurance at 91.5 percent; Financial, Professional & International Insurance at 89.4 percent; and Personal Insurance at 85.5 percent. Consolidated GAAP combined ratio was 89.2 percent.

· Repurchased 13.9 million common shares under the Company’s share repurchase program for a total cost of $725 million in the quarter.

· Book value per share (excluding FAS 115) of $37.26, a 14 percent increase from the prior year quarter and a 3 percent increase from December 31, 2006.

Consolidated First Quarter Highlights

($ in millions, except for per share amounts, and	Three Months Ended March 31,
after-tax except for premiums)	2007			2006			Change
Gross written premiums	$	6,071		$	5,810		4	%
excluding Business Insurance Other	6,041			5,808			4
Net written premiums	5,144			4,774			8
excluding Business Insurance Other	5,112			4,773			7
Net earned premiums	5,295			4,991			6
Underwriting gain	341			337			1
Net investment income	737			670			10
Operating income	1,078			1,011			7
per diluted share	$	1.55		$	1.41		10
Net income	1,086			1,006			8
per diluted share	$	1.56		$	1.41		11
Book value per share	$	37.93		$	32.59		16
Adjusted book value per share	$	37.26		$	32.68		14
GAAP combined ratio	89.2		%	88.9		%	0.3	pts
Operating return on equity	17.5		%	18.1		%	(0.6	) pts
Return on equity	17.3		%	17.9		%	(0.6	) pts

See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data

First Quarter 2007 Consolidated Results

Net and operating income in the current quarter of $1.086 billion and $1.078 billion, respectively, included an after-tax benefit of $40 million ($62 million pre-tax) for net favorable prior year reserve development and an after-tax charge of $29 million ($45 million pre-tax) for catastrophe losses. Net and operating income in the prior year quarter of $1.006 billion and $1.011 billion, respectively, included an after-tax benefit of $32 million ($49 million pre-tax) for net favorable prior year reserve development. There were no catastrophe losses reported in the prior year quarter.

In the first quarter of 2007, the Company discontinued the use of performance-based contingent commissions and implemented a new performance-based fixed supplemental compensation program for all of its personal lines business. The Company also offered the majority of its agents conducting commercial lines business the option to switch to this new program. While the Company expects that its total payout rate for the fixed supplemental compensation program in 2007 will be substantially the same as the contingent commission program in 2006, the change to the new program has created a difference in the timing of commission expense recognition, resulting in a benefit to net and operating income during the transition year. The impact of this change in the current quarter was to lower reported expenses by $47 million after-tax ($72 million pre-tax), primarily in Business Insurance and Personal Insurance.

Net and operating income in the current quarter also included an after-tax benefit of $28 million for the favorable resolution of various prior year federal tax matters, compared to an after-tax benefit of $49 million for the favorable resolution of various prior year federal and state tax matters in the prior year quarter.

Net written premiums increased 8 percent from the prior year quarter. This result was primarily driven by strong retention rates, lower ceded premiums, growth in new business volume and modest renewal price increases across most businesses.

Net investment income in the current quarter was a record $737 million after-tax ($960 million pre-tax), a 10 percent increase from the prior year quarter. The increase was primarily driven by higher fixed income and real estate investment returns as well as higher average invested assets due to strong operating cash flows.

The GAAP combined ratio in the current quarter was 89.2 percent, a 0.3 point increase from the 88.9 percent reported in the prior year quarter. The current quarter GAAP combined ratio benefited by 1.2 points due to net favorable prior year reserve development, partially offset by 0.9 points for catastrophe losses. The current quarter GAAP combined ratio also benefited by 1.4 points from the change to the new fixed supplemental compensation program. The prior year quarter GAAP combined ratio included a 1.0 point benefit for net favorable prior year reserve development, and there were no catastrophe losses reported in the prior year quarter.

The current quarter GAAP loss and loss adjustment expense ratio component of the combined ratio, excluding catastrophe losses and net prior year reserve development, improved 0.4 points compared to the prior year quarter ratio on the same basis.

Capital Management

During the first quarter of 2007, the Company repurchased 13.9 million of its common shares for a total cost of $725 million under its share repurchase program. Through March 31, 2007, the Company has repurchased an aggregate of 36.7 million shares for a total cost of $1.846 billion since the program’s inception in the second quarter of 2006. As of March 31, 2007, the total remaining authorization under the program was $3.154 billion, or approximately 9 percent of the Company’s total outstanding common stock.

Business Insurance Segment Financial Results

For the first quarter 2007, the Business Insurance segment reported operating income of $678 million, compared to $651 million in the prior year quarter. The current quarter benefited from higher net investment income and the continuation of favorable loss trends.

The current quarter included an after-tax benefit of $17 million ($27 million pre-tax) for net favorable prior year reserve development, compared to an after-tax benefit of $12 million ($19 million pre-tax) in the prior year quarter. There were no catastrophe losses reported in the current or prior year quarters. The current quarter also included an after-tax benefit of $24 million ($37 million pre-tax) due to the change to the new fixed supplemental compensation program, which created a difference in the timing of commission expense recognition.

The GAAP combined ratio was 91.5 percent in the current quarter, a 0.8 point increase from the 90.7 percent reported in the prior year quarter. The current quarter GAAP combined ratio benefited by 0.9 points for net favorable prior year reserve development, compared to a benefit of 0.7 points in the prior year quarter. The current quarter GAAP combined ratio also benefited by 1.3 points due to the change to the new fixed supplemental compensation program.

Net written premiums increased 7 percent from the prior year quarter, primarily due to growth in new business volume. Overall, retention rates were strong and renewal price changes remained relatively modest, both consistent with recent quarters.

Select Accounts net written premiums increased 3 percent from the prior year quarter. Retention rates were strong, consistent with recent quarters, and renewal price changes were positive, but lower than recent quarters. New business volume increased significantly from the prior year quarter due in part to the introduction in 10 states of TravelersExpressSM, an enhanced quote-to-issue agency platform and multivariate pricing program.

Commercial Accounts net written premiums increased 11 percent from the prior year quarter. Retention rates continued to be strong, consistent with recent quarters, and renewal price changes were slightly negative. New business volume increased significantly from the prior year quarter due to new product introductions, the selling of additional products to existing customers, and greater submission volume as a result of increased marketing efforts.

Industry-Focused Underwriting net written premiums increased 12 percent from the prior year quarter due to strong business volumes in Construction, Technology, Oil & Gas and

Public Sector. Target Risk Underwriting net written premiums increased 5 percent from the prior year quarter due to strong business volumes in Inland Marine. Specialized Distribution net written premiums increased 3 percent from the prior year quarter, and National Accounts net written premiums decreased 5 percent from the prior year quarter.

Financial, Professional & International Insurance Segment Financial Results

For the first quarter 2007, the Financial, Professional & International Insurance segment reported operating income of $156 million, compared to $141 million in the prior year quarter. The current quarter benefited from higher net investment income and earned premium volume.

The GAAP combined ratio was 89.4 percent in the current quarter, a 1.4 point increase from the 88.0 percent reported in the prior year quarter. There were no catastrophe losses or prior year reserve development reported in the current or prior year quarters.

Gross written premiums increased 4 percent from the prior year quarter due to strong construction surety business volumes and adjustments to prior year premium estimates for the Company’s operations at Lloyd’s. Net written premiums increased 17 percent from the prior year quarter due to gross written premium growth, increases in net retentions for certain lines of business, the timing of certain reinsurance transactions and lower reinsurance costs.

For Bond & Financial Products, excluding the surety line of business, retention rates were very strong, increasing from recent quarters; renewal price changes were positive; and new business volume decreased from the prior year quarter due to competitive pricing in liability lines. These metrics are not relevant for the surety line of business because these products are sold on a non-recurring, project-specific basis.

For International and Lloyd’s, retention rates were very strong, consistent with recent quarters; renewal price changes were slightly positive, consistent with recent quarters; and new business volume decreased from the prior year quarter, primarily reflecting competitive market conditions.

Personal Insurance Segment Financial Results

For the first quarter 2007, the Personal Insurance segment reported operating income of $266 million, compared to $240 million in the prior year quarter. The current quarter benefited from renewal price increases, higher earned premium volume, the continuation of favorable loss trends, net favorable prior year reserve development and higher net investment income, partially offset by catastrophe losses.

The current quarter included an after-tax benefit of $23 million ($35 million pre-tax) for net favorable prior year reserve development, primarily due to better than expected auto bodily injury loss performance resulting in part from claim initiatives. The prior year quarter included an after-tax benefit of $20 million ($30 million pre-tax) for net favorable prior year reserve development. The current quarter was negatively impacted by $29 million after-tax ($45 million pre-tax) due to catastrophe losses. There were no catastrophe losses reported in the prior year quarter. The current quarter also included an after-tax benefit of

$21 million ($32 million pre-tax) due to the change to the new fixed supplemental compensation program, which created a difference in the timing of commission expense recognition.

The GAAP combined ratio was 85.5 percent in the current quarter, a 0.9 point improvement from the 86.4 percent reported in the prior year quarter. The current quarter GAAP combined ratio benefited by 2.1 points for net favorable prior year reserve development, compared to a benefit of 1.9 points in the prior year quarter. Catastrophe losses added 2.7 points to the current quarter GAAP combined ratio. There were no catastrophe losses reported in the prior year quarter. The current quarter GAAP combined ratio also benefited by 1.9 points due to the change to the new fixed supplemental compensation program.

Personal Insurance net written premiums increased 6 percent from the prior year quarter. This result was primarily attributable to continued strong retention rates and renewal price increases.

Automobile net written premiums increased 4 percent, and policies in force increased 7 percent from the prior year quarter. Retention rates were strong and renewal price changes were positive, both consistent with recent quarters. New business volume decreased from the prior year quarter.

Homeowners and Other net written premiums increased 9 percent, and policies in force increased 7 percent from the prior year quarter. Retention rates were strong, consistent with recent quarters, and renewal price changes increased from recent quarters. New business volume decreased from the prior year quarter.

2007 Annual Guidance

Travelers is increasing its 2007 earnings per diluted share guidance to a range of $5.60 to $5.85, compared to the previously announced range of $5.20 to $5.45. This guidance is based on a number of assumptions, including:

· Catastrophe losses of $530 million pre-tax and $355 million after-tax, for the full year;

· No additional prior year reserve development, favorable or unfavorable;

· Growth in average invested assets in the low single digits, after taking into account dividends and approximately $2 billion of share repurchases for the full year;

· An estimated $100 million after-tax timing benefit for the full year, resulting from accounting for the change to the new fixed supplemental compensation program;

· A second quarter 2007 after-tax charge of $25 million as a result of the redemption of the convertible junior subordinated notes; and

· Weighted average diluted shares of approximately 675 million, including the impact of the assumed share repurchases, the redemption of the convertible junior subordinated notes and normal growth in share count from employee equity awards.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.travelers.com. The management of Travelers will discuss the contents of this release via Webcast at 9 a.m. Eastern (8 a.m. Central) on Thursday, April 26, 2007. Prior to the Webcast, a related slide presentation will be available on the Company’s Web site. Following the live event, an audio playback of the Webcast and the slide presentation will be available at the Company’s Web site.

To view the slides or to listen to the Webcast or the playback, visit the “Webcasts & Presentations” section of the Travelers investor relations Web site at http://investor.travelers.com/.

About Travelers

Travelers is a leading provider of property casualty insurance. For more information, visit www.travelers.com.

Glossary of Financial Measures

The following measures are used by the Company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated statement of income or required to be disclosed in the notes to financial statements, and in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure. In the opinion of the Company’s management, a discussion of these measures provides investors with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance.

Operating income (loss) is net income (loss) excluding the after-tax impact of net realized investment gains (losses). Operating income (loss) per share is operating income (loss) on a per share basis. Return on equity is the ratio of net income to average equity. Operating return on equity is the ratio of operating income to average equity excluding net unrealized investment gains and losses, net of tax.

In the opinion of the Company’s management, operating income, operating income per share and operating return on equity are meaningful indicators of underwriting and operating results. These measures exclude net realized investment gains or losses, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends. Internally, the Company’s management uses operating income, operating income per share and operating return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis.

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.

A catastrophe is a severe loss, resulting from natural and manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorism and other similar events. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount in advance, and therefore their effects are not included in earnings or claims and claim adjustment expense reserves prior to occurrence. A catastrophe may result in the payment of reinstatement premiums and assessments from various pools. In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

Loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the
re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims. Loss reserve development may be related to prior year or current year development. In the opinion of the Company’s management, discussion of prior year loss reserve development is useful to investors as it allows them to assess the impact between prior year and current year development on current earnings and changes in claims and claim adjustment expense reserve levels from period to period.

GAAP combined ratio is the sum of the loss and loss adjustment expense ratio (loss and LAE ratio), the underwriting expense ratio and, where applicable, the ratio of dividends to policyholders to net premiums earned. For GAAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses reduced by an allocation of fee income to net earned premiums. The underwriting expense ratio is the ratio of underwriting expenses incurred reduced by an allocation of fee income, billing and policy fees to net earned premiums. A GAAP combined ratio under 100% generally indicates an underwriting profit. A GAAP combined ratio over 100% generally indicates an underwriting loss. The GAAP combined ratio is an operating statistic that includes GAAP measures in the numerator and the denominator.

Gross written premiums reflect the direct and assumed contractually determined amounts charged to the policyholders for the effective period of the contract based on the terms and conditions of the insurance contract. Gross written premiums are a measure of overall business volume.

Adjusted book value per share represents assets less liabilities and preferred shareholders’ equity excluding the after-tax impact of net unrealized investment gains and losses, divided by the number of shares outstanding. In the opinion of the Company’s management, adjusted book value is useful in an analysis of a property casualty company’s book value on a nominal basis as it removes the effect of changing prices on invested assets, which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.

Travelers has organized its businesses into the following operating and reporting segments, beginning with the third quarter 2006:

Business Insurance: The Business Insurance segment offers a broad array of property and casualty insurance and insurance-related services in the United States. Business Insurance is organized into the following groups, which collectively comprise Business Insurance Core operations: Select Accounts; Commercial Accounts; National Accounts; Industry-Focused Underwriting including Construction, Technology, Public Sector Services, Oil & Gas and Agribusiness; Target Risk Underwriting including National Property, Inland Marine, Ocean Marine, Excess Casualty, Boiler & Machinery and Global Accounts; and Specialized Distribution including Northland and National Programs. Business Insurance also includes the Special Liability Group and policies written by Gulf (primarily management and professional liability coverages) and other runoff operations, which collectively are referred to as Business Insurance Other.

Financial, Professional & International Insurance: The Financial, Professional & International Insurance segment includes surety, crime, and financial liability businesses, which primarily use credit-based underwriting processes, as well as property and casualty products that are predominantly marketed on an international basis. The businesses in Financial, Professional & International Insurance are Bond & Financial Products and International and Lloyd’s.

Personal Insurance: The Personal Insurance segment writes virtually all types of property and casualty insurance covering personal risks. The primary coverages in this segment are personal automobile and homeowners insurance sold to individuals.

Prior quarter segment results have been reclassified from the historical presentation to conform with current business segment definitions where applicable. The Company’s historical Commercial and Specialty segments have been realigned into two new segments: the Business Insurance segment and the Financial, Professional & International Insurance segment. As a result, prior quarter results of certain businesses have been disaggregated from the historical Specialty segment and are now reported in the Business Insurance segment. In addition, the Personal segment has been renamed Personal Insurance.

* * * * *

Forward Looking Statement

This press release contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Specifically, earnings guidance and statements about our share repurchase plans are forward looking, and we may make forward-looking statements about our results of operations (including, among others, premium volume, income from continuing operations, net and operating income, investment income, return on equity and combined ratio), financial condition (including, among others, invested assets and liquidity); and the sufficiency of our asbestos and other reserves (including, among others, asbestos claim payment patterns); the cost and availability of reinsurance coverage; catastrophe losses; and strategic initiatives. Such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following: catastrophe losses could materially reduce our profitability and adversely impact our ratings, our ability to raise capital and the availability and cost of reinsurance; if actual claims exceed our loss reserves, or if changes in the estimated level of loss reserves are necessary, our financial results could be significantly and adversely affected; our business could be harmed because of our potential exposure to asbestos and environmental claims and related litigation; we are exposed to, and may face adverse developments involving, mass tort claims such as those relating to exposure to potentially harmful products or substances; the effects of emerging claim and coverage issues on our business are uncertain; reinsurance may be unavailable on acceptable terms, and we may be unable to collect reinsurance; the insurance industry is the subject of a number of investigations by state and federal authorities in the United States, and we cannot predict the outcome of these investigations or their impact on our business or financial results; our businesses are heavily regulated and changes in regulation may reduce our profitability and limit our growth; a downgrade in our claims-paying and financial strength ratings could significantly reduce our business volumes, adversely impact our ability to access the capital markets and increase our borrowing costs; our investment portfolio may suffer reduced returns or losses which could reduce our profitability; the intense competition that we face could harm our ability to maintain or increase our profitability and premium volume; the inability of our insurance subsidiaries to pay dividends to us in sufficient amounts would harm our ability to meet our obligations and to pay future dividends; assessments and other surcharges for guaranty funds, second-injury funds, catastrophe funds and other mandatory pooling arrangements may reduce our profitability; loss or significant restriction of the use of credit scoring in the pricing and underwriting of Personal Insurance products could reduce our future profitability; disruptions to our relationships with our distributors, independent agents and brokers could adversely affect us; and if we experience difficulties with outsourcing relationships, technology and/or data security, our ability to conduct our business might be negatively impacted.

Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the caption “Risk Factors” in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

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	Three months ended March 31,
($ in millions, except per share amounts, and after-tax)	2007			2006

Operating income	$	1,078		$	1,011
Net realized investment gains (losses)	8			(5		)
Net income	$	1,086		$	1,006

Basic earnings per share
Operating income	$	1.61		$	1.46
Net realized investment gains (losses)	0.01			(0.01		)
Net income	$	1.62		$	1.45

Diluted earnings per share
Operating income	$	1.55		$	1.41
Net realized investment gains	0.01			—
Net income	$	1.56		$	1.41

Weighted average number of common shares outstanding (basic)	669.9			692.2
Weighted average number of common shares outstanding and common stock equivalents (diluted)	701.2			720.8
Common shares outstanding at period end	665.3			696.2

Common stock dividends declared	$	174.0		$	160.0

Operating income (loss) by segment
Business Insurance	$	678		$	651
Financial, Professional & International Insurance	156			141
Personal Insurance	266			240
	1,100			1,032
Interest Expense and Other	(22		)	(21		)
	$	1,078		$	1,011

Operating return on equity	17.5		%	18.1		%
Return on equity	17.3		%	17.9		%

See Glossary of Financial Measures and the statistical supplement for additional financial data.

	Three months ended March 31,
($ in millions, pre-tax)	2007			2006

Revenues
Premiums	$	5,295		$	4,991
Net investment income	960			875
Fee income	120			150
Net realized investment gains (losses)	14			(6		)
Other revenues	38			40
	$	6,427		$	6,050

Revenues
Business Insurance	$	3,581		$	3,436
Financial, Professional & International Insurance	970			896
Personal Insurance	1,857			1,718
Total Segment Revenues	6,408			6,050
Interest Expense and Other	5			6
	6,413			6,056
Net realized investment gains (losses)	14			(6		)
	$	6,427		$	6,050

Gross written premiums
Business Insurance Core	$	3,357		$	3,252
Business Insurance Other	30			2
Total Business Insurance	3,387			3,254
Financial, Professional & International Insurance	975			935
Personal Insurance	1,709			1,621
	$	6,071		$	5,810

Net written premiums
Business Insurance Core	$	2,848		$	2,686
Business Insurance Other	32			1
Total Business Insurance	2,880			2,687
Financial, Professional & International Insurance	600			515
Personal Insurance	1,664			1,572
	$	5,144		$	4,774

GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	61.2		%	60.9		%
Underwriting expense ratio	30.3			29.8
Combined ratio	91.5		%	90.7		%

Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	53.0		%	53.0		%
Underwriting expense ratio	36.4			35.0
Combined ratio	89.4		%	88.0		%

Personal Insurance
Loss and loss adjustment expense ratio	59.0		%	58.7		%
Underwriting expense ratio	26.5			27.7
Combined ratio	85.5		%	86.4		%

Total Company (2)
Loss and loss adjustment expense ratio	59.2		%	58.9		%
Underwriting expense ratio	30.0			30.0
Combined ratio	89.2		%	88.9		%

(1)	For purposes of computing GAAP ratios, billing and policy fees (which are a component of other revenues) are allocated as a reduction of other underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expense and other underwriting expenses.
(2)	Before policyholder dividends.

See Glossary of Financial Measures and the statistical supplement for additional financial data.

	Three months ended March 31,
($ in millions; after-tax except as noted)	2007			2006
Reconciliation of underwriting gain to net income

Pre-tax underwriting gain	$	534		$	514
Tax expense on underwriting results	(193		)	(177		)
Underwriting gain	341			337
Net investment income	737			670
Other, including interest expense	—			4
Consolidated operating income	1,078			1,011
Net realized investment gains (losses)	8			(5		)
Net income	$	1,086		$	1,006

See Glossary of Financial Measures and the statistical supplement for additional financial data.

###

Contacts
Media:	Institutional Investors:	Individual Investors:
Shane Boyd	Michael Connelly	Marc Parr
651.310.3846, or	860.277.1507, or	860.277.0779
Marlene Ibsen	David Schlosberg
860.277.9039	917.778.6817

The Travelers Companies, Inc.
Financial Highlights
($ and shares in millions, except per share data)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086
Net income per share:
Basic	$	1.45		$	1.40		$	1.52		$	1.75		$	1.62
Diluted	$	1.41		$	1.36		$	1.47		$	1.68		$	1.56

Operating income	$	1,011		$	959		$	1,037		$	1,193		$	1,078
Operating income per share:
Basic	$	1.46		$	1.39		$	1.51		$	1.75		$	1.61
Diluted	$	1.41		$	1.34		$	1.46		$	1.69		$	1.55

Return on equity	17.9		%	17.0		%	17.6		%	19.1		%	17.3		%
Operating return on equity	18.1		%	16.6		%	17.4		%	19.6		%	17.5		%

Total assets, at period end	$	113,376		$	113,886		$	115,498		$	113,761		$	114,121
Total equity, at period end	$	22,837		$	23,052		$	24,747		$	25,135		$	25,357

Book value per share, at period end	$	32.59		$	33.14		$	35.69		$	36.86		$	37.93
Adjusted book value per share, at period end	$	32.68		$	33.83		$	35.10		$	36.20		$	37.26

Weighted average number of common shares outstanding (basic)	692.2			691.8			685.3			679.2			669.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)	720.8			720.4			714.6			711.0			701.2
Common shares outstanding at period end	696.2			691.4			689.5			678.3			665.3

Common stock dividends declared	$	160		$	180		$	180		$	176		$	174

Common stock repurchased:
Under repurchase program (1)
Shares	—			5.6			2.8			14.4			13.9
Cost	$	—		$	250		$	121		$	750		$	725
Other
Shares	0.5			0.1			—			0.7			0.6
Cost	$	22		$	3		$	5		$	31		$	31

(1) Repurchased under the Board authorized repurchase program of $5 billion.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Reconciliation to Net Income and Earnings Per Share
($ and shares in millions, except earnings per share)

	1Q			2Q		3Q		4Q			1Q
	2006			2006		2006		2006			2007
Net income
Operating income	$	1,011		$	959	$	1,037	$	1,193		$	1,078
Net realized investment gains (losses)	(5		)	11		6		(4		)	8
Net income	$	1,006		$	970	$	1,043	$	1,189		$	1,086

Basic earnings per share
Operating income	$	1.46		$	1.39	$	1.51	$	1.75		$	1.61
Net realized investment gains (losses)	(0.01		)	0.01		0.01		—			0.01
Net income	$	1.45		$	1.40	$	1.52	$	1.75		$	1.62

Diluted earnings per share
Operating income	$	1.41		$	1.34	$	1.46	$	1.69		$	1.55
Net realized investment gains (losses)	—			0.02		0.01		(0.01		)	0.01
Net income	$	1.41		$	1.36	$	1.47	$	1.68		$	1.56

Adjustments to net income and weighted average shares
for net income EPS calculations: (1)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Basic
Net income, as reported	$	1,006		$	970		$	1,043		$	1,189		$	1,086
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(2		)	(1		)

Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085

Diluted
Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085
Effect of dilutive securities:
Convertible preferred stock	1			1			1			2			1
Zero coupon convertible notes	1			1			1			1			1
Convertible junior subordinated notes	7			6			7			6			7

Net income available to common shareholders - diluted	$	1,014		$	977		$	1,051		$	1,196		$	1,094

Common Shares
Basic
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9

Diluted
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9
Weighted average effects of dilutive securities:
Stock options and other incentive plans	5.9			6.0			6.8			9.5			9.1
Convertible preferred stock	3.6			3.5			3.4			3.2			3.1
Zero coupon convertible notes	2.4			2.4			2.4			2.4			2.4
Convertible junior subordinated notes	16.7			16.7			16.7			16.7			16.7
Diluted weighted average shares outstanding	720.8			720.4			714.6			711.0			701.2

(1) Adjustments to net income and weighted average shares for net income EPS calculations can also be used for the operating income EPS calculations.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Statement of Income - Consolidated
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Revenues
Premiums	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295
Net investment income	875			874			858			910			960
Fee income	150			153			150			138			120
Net realized investment gains (losses)	(6		)	10			12			(5		)	14
Other revenues	40			37			36			98			38
Total revenues	6,050			6,255			6,316			6,469			6,427

Claims and expenses
Claims and claim adjustment expenses	3,042			3,153			3,047			3,002			3,189
Amortization of deferred acquisition costs	800			814			858			867			869
General and administrative expenses	794			866			869			929			833
Interest expense	76			78			88			82			76
Total claims and expenses	4,712			4,911			4,862			4,880			4,967

Income before income taxes	1,338			1,344			1,454			1,589			1,460
Income tax expense	332			374			411			400			374
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086

Other statistics:
Effective tax rate on net investment income	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%
Net investment income (after-tax)	$	670		$	673		$	668		$	701		$	737

Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45
After-tax	$	—		$	44		$	10		$	13		$	29

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Net Income by Major Component and Combined Ratio - Consolidated
($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Underwriting gain	$	337		$	311		$	407		$	487		$	341
Net investment income	670			673			668			701			737
Other, including interest expense	4			(25		)	(38		)	5			—
Operating income	1,011			959			1,037			1,193			1,078
Net realized investment gains (losses)	(5		)	11			6			(4		)	8
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086

GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	58.9		%	59.5		%	56.7		%	55.1		%	59.2		%
Underwriting expense ratio	30.0		%	30.3		%	30.5		%	31.6		%	30.0		%
Combined ratio	88.9		%	89.8		%	87.2		%	86.7		%	89.2		%

Impact of catastrophes on combined ratio	0.0		%	1.3		%	0.3		%	0.4		%	0.9		%
Impact of prior year reserve development on combined ratio	-1.0		%	-2.0		%	-1.7		%	-3.0		%	-1.2		%

(1) Before policyholder dividends.

(2) Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses as follows:

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	28	$	26	$	28	$	28	$	29
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47
Underwriting expenses	58		87		91		79		73
Total fee income	$	150	$	153	$	150	$	138	$	120

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Operating Income - Consolidated
($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007

Revenues
Premiums	$	4,991	$	5,181	$	5,260	$	5,328	$	5,295
Net investment income	875		874		858		910		960
Fee income	150		153		150		138		120
Other revenues	40		37		36		98		38
Total revenues	6,056		6,245		6,304		6,474		6,413

Claims and expenses
Claims and claim adjustment expenses	3,042		3,153		3,047		3,002		3,189
Amortization of deferred acquisition costs	800		814		858		867		869
General and administrative expenses	794		866		869		929		833
Interest expense	76		78		88		82		76
Total claims and expenses	4,712		4,911		4,862		4,880		4,967

Operating income before income taxes	1,344		1,334		1,442		1,594		1,446
Income tax expense	333		375		405		401		368
Operating income	$	1,011	$	959	$	1,037	$	1,193	$	1,078

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Selected Statistics - Property and Casualty Operations
($ in millions)

	1Q		2Q			3Q			4Q			1Q
	2006		2006			2006			2006			2007
Statutory underwriting
Gross written premiums	$	5,810	$	6,197		$	6,100		$	5,932		$	6,071
Net written premiums	$	4,774	$	5,655		$	5,284		$	5,437		$	5,144

Net earned premiums	$	4,991	$	5,181		$	5,260		$	5,328		$	5,295
Losses and loss adjustment expenses	2,951		3,095			2,987			2,939			3,128
Underwriting expenses	1,493		1,609			1,524			1,644			1,670
Statutory underwriting gain	547		477			749			745			497
Policyholder dividends	9		6			5			6			7
Statutory underwriting gain after policyholder dividends	$	538	$	471		$	744		$	739		$	490

Other statutory statistics
Reserves for losses and loss adjustment expenses	$	43,256	$	43,116		$	43,084		$	42,948		$	42,942
Increase (decrease) in reserves (1)	$	65	$	(140	)	$	(32	)	$	(136	)	$	(6	)
Statutory surplus	$	18,522	$	19,037		$	19,961		$	20,945		$	21,204
Net written premiums/surplus (2)	1.10:1		1.09:1			1.05:1			1.01:1			1.01:1

(1) Includes a reinsurance to close transaction for Lloyd’s in 1Q 2006, increasing reserves by $538 million.

(2) Based on 12 months of rolling net written premiums.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Written and Earned Premiums - Property and Casualty Operations
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Written premiums
Gross	$	5,810		$	6,197		$	6,100		$	5,932		$	6,071
Ceded	(1,036		)	(542		)	(816		)	(495		)	(927		)
Net	$	4,774		$	5,655		$	5,284		$	5,437		$	5,144

Earned premiums
Gross	$	5,733		$	5,899		$	6,006		$	6,120		$	6,001
Ceded	(742		)	(718		)	(746		)	(792		)	(706		)
Net	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Operating Income - Business Insurance
($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007

Revenues
Premiums	$	2,643	$	2,715	$	2,737	$	2,781	$	2,763
Net investment income	636		635		610		657		694
Fee income	150		153		150		138		120
Other revenues	7		9		8		20		4
Total revenues	3,436		3,512		3,505		3,596		3,581

Claims and expenses
Claims and claim adjustment expenses	1,706		1,695		1,746		1,706		1,741
Amortization of deferred acquisition costs	376		374		397		400		403
General and administrative expenses	474		533		531		566		509
Interest expense	1		3		—		1		—
Total claims and expenses	2,557		2,605		2,674		2,673		2,653

Operating income before federal income taxes	879		907		831		923		928
Income taxes	228		252		218		220		250
Operating income	$	651	$	655	$	613	$	703	$	678

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Operating Income by Major Component and Combined Ratio - Business Insurance
($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Underwriting gain	$	155		$	159		$	131		$	181		$	140
Net investment income	492			491			478			507			534
Other	4			5			4			15			4
Operating income	$	651		$	655		$	613		$	703		$	678

GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.9		%	60.0		%	61.5		%	59.1		%	61.2		%
Underwriting expense ratio	29.8		%	30.1		%	30.5		%	31.8		%	30.3		%
Combined ratio	90.7		%	90.1		%	92.0		%	90.9		%	91.5		%

Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%
Impact of prior year reserve development on combined ratio	-0.7		%	-1.2		%	1.7		%	-0.5		%	-0.9		%

(1) Before policyholder dividends.

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	3	$	3	$	3	$	3	$	3
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47
Underwriting expenses	58		87		91		79		73
Total fee income	$	150	$	153	$	150	$	138	$	120

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Selected Statistics - Business Insurance
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Statutory underwriting
Gross written premiums	$	3,254		$	3,314		$	3,257		$	3,222		$	3,387
Net written premiums	$	2,687		$	2,872		$	2,644		$	2,843		$	2,880

Net earned premiums	$	2,643		$	2,715		$	2,737		$	2,781		$	2,763
Losses and loss adjustment expenses	1,621			1,640			1,686			1,648			1,684
Underwriting expenses	756			813			761			857			866
Statutory underwriting gain	266			262			290			276			213
Policyholder dividends	5			3			2			3			3
Statutory underwriting gain after policyholder dividends	$	261		$	259		$	288		$	273		$	210

Other statistics
Effective tax rate on net investment income	22.8		%	22.6		%	21.6		%	22.8		%	23.1		%
Net investment income (after-tax)	$	492		$	491		$	478		$	507		$	534

Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—
After-tax	$	—		$	—		$	—		$	—		$	—

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Net Written Premiums - Business Insurance
($ in millions)

	1Q		2Q		3Q		4Q			1Q
	2006		2006		2006		2006			2007

Net written premiums by market
Select Accounts	$	679	$	705	$	625	$	654		$	701
Commercial Accounts	575		548		575		678			641
National Accounts	268		298		254		315			255
Industry-Focused Underwriting	521		560		548		567			582
Target Risk Underwriting	398		463		377		391			417
Specialized Distribution	245		280		255		242			252
Total core	2,686		2,854		2,634		2,847			2,848
Business Insurance other	1		18		10		(4		)	32
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880

Net written premiums by product line
Commercial multi-peril	$	804	$	776	$	708	$	795		$	805
Workers’ compensation	540		529		474		592			614
Commercial automobile	467		522		509		515			506
Property	467		521		469		482			494
General liability	407		512		476		462			434
Other	2		12		8		(3		)	27
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880

National accounts
Additions to claim volume under administration (1)	$	890	$	742	$	650	$	722		$	836
Written fees	$	144	$	134	$	121	$	113		$	123

(1) Includes new and renewal business.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Operating Income - Financial, Professional & International Insurance
($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007

Revenues
Premiums	$	788	$	839	$	850	$	844	$	844
Net investment income	103		102		108		116		121
Other revenues	5		6		5		10		5
Total revenues	896		947		963		970		970

Claims and expenses
Claims and claim adjustment expenses	421		445		462		466		451
Amortization of deferred acquisition costs	150		159		164		165		163
General and administrative expenses	126		142		134		134		145
Total claims and expenses	697		746		760		765		759

Operating income before federal income taxes	199		201		203		205		211
Income taxes	58		52		59		30		55
Operating income	$	141	$	149	$	144	$	175	$	156

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Operating Income by Major Component and Combined Ratio - Financial, Professional & International Insurance
($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Underwriting gain	$	60		$	68		$	59		$	79		$	62
Net investment income	77			77			82			89			91
Other	4			4			3			7			3
Operating income	$	141		$	149		$	144		$	175		$	156

GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0		%	52.6		%	54.1		%	54.9		%	53.0		%
Underwriting expense ratio	35.0		%	35.8		%	34.9		%	35.5		%	36.4		%
Combined ratio	88.0		%	88.4		%	89.0		%	90.4		%	89.4		%

Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%
Impact of prior year reserve development on combined ratio	0.0		%	-1.1		%	-0.2		%	-0.4		%	0.0		%

(1) Before policyholder dividends.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Selected Statistics - Financial, Professional & International Insurance
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Statutory underwriting
Gross written premiums	$	935		$	1,043		$	974		$	1,029		$	975
Net written premiums	$	515		$	1,002		$	912		$	964		$	600

Net earned premiums	$	788		$	839		$	850		$	844		$	844
Losses and loss adjustment expenses	415			442			461			462			447
Underwriting expenses	292			299			273			287			322
Statutory underwriting gain	81			98			116			95			75
Policyholder dividends	4			3			3			3			4
Statutory underwriting gain after policyholder dividends	$	77		$	95		$	113		$	92		$	71

Other statistics
Effective tax rate on net investment income	24.7		%	24.3		%	24.2		%	24.4		%	24.6		%
Net investment income (after-tax)	$	77		$	77		$	82		$	89		$	91

Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—
After-tax	$	—		$	—		$	—		$	—		$	—

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Net Written Premiums - Financial, Professional & International Insurance
($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007

Net written premiums by market
Bond & Financial Products	$	293	$	660	$	664	$	638	$	311
International and Lloyd’s	222		342		248		326		289
Total	$	515	$	1,002	$	912	$	964	$	600

Net written premiums by product line
General liability	$	110	$	282	$	297	$	317	$	96
Fidelity & Surety	152		342		338		293		180
International	222		342		248		326		289
Other	31		36		29		28		35
Total	$	515	$	1,002	$	912	$	964	$	600

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Operating Income - Personal Insurance
($ in millions)

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007

Revenues
Premiums	$	1,560	$	1,627	$	1,673	$	1,703	$	1,688
Net investment income	134		137		140		137		145
Other revenues	24		22		23		25		24
Total revenues	1,718		1,786		1,836		1,865		1,857

Claims and expenses
Claims and claim adjustment expenses	915		1,013		839		830		997
Amortization of deferred acquisition costs	274		281		297		302		303
General and administrative expenses	183		197		200		224		170
Total claims and expenses	1,372		1,491		1,336		1,356		1,470

Operating income before federal income taxes	346		295		500		509		387
Income taxes	106		92		159		161		121
Operating income	$	240	$	203	$	341	$	348	$	266

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Operating Income by Major Component and Combined Ratio - Personal Insurance
($ in millions, net of tax)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Underwriting gain	$	122		$	84		$	217		$	226		$	139
Net investment income	102			105			108			106			112
Other	16			14			16			16			15
Operating income	$	240		$	203		$	341		$	348		$	266

GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	58.7		%	62.2		%	50.2		%	48.7		%	59.0		%
Underwriting expense ratio	27.7		%	27.9		%	28.2		%	29.4		%	26.5		%
Combined ratio	86.4		%	90.1		%	78.4		%	78.1		%	85.5		%

Impact of catastrophes on combined ratio	0.0		%	4.1		%	0.9		%	1.3		%	2.7		%
Impact of prior year reserve development on combined ratio	-1.9		%	-3.6		%	-7.9		%	-8.2		%	-2.1		%

(1) Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses. Billing and policy fees are as follows:

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	25	$	23	$	25	$	25	$	26

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Selected Statistics - Personal Insurance
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Statutory underwriting

Gross written premiums	$	1,621		$	1,840		$	1,869		$	1,681		$	1,709
Net written premiums	$	1,572		$	1,781		$	1,728		$	1,630		$	1,664

Net earned premiums	$	1,560		$	1,627		$	1,673		$	1,703		$	1,688
Losses and loss adjustment expenses	915			1,013			840			829			997
Underwriting expenses	445			497			490			500			482
Statutory underwriting gain	$	200		$	117		$	343		$	374		$	209

Other statistics
Effective tax rate on net investment income	23.6		%	23.5		%	23.0		%	22.6		%	22.8		%
Net investment income (after-tax)	$	102		$	105		$	108		$	106		$	112

Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45
After-tax	$	—		$	44		$	10		$	13		$	29

Policies in force (in thousands)
Automobile	2,429			2,510			2,567			2,584			2,594
Homeowners and other	4,291			4,407			4,512			4,562			4,593

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Selected Statistics - Personal Insurance (Automobile)
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Statutory underwriting

Gross written premiums	$	942		$	960		$	943		$	886		$	975
Net written premiums	$	932		$	951		$	934		$	875		$	965

Net earned premiums	$	872		$	910		$	939		$	951		$	939
Losses and loss adjustment expenses	590			626			598			543			595
Underwriting expenses	239			259			240			252			254
Statutory underwriting gain	$	43		$	25		$	101		$	156		$	90

GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	67.7		%	68.7		%	63.7		%	57.1		%	63.3		%
Underwriting expense ratio	25.3		%	26.8		%	26.0		%	26.8		%	24.1		%
Combined ratio	93.0		%	95.5		%	89.7		%	83.9		%	87.4		%

Impact of catastrophes on combined ratio	0.0		%	0.4		%	0.0		%	0.0		%	0.1		%

Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	3		$	—		$	—		$	1
After-tax	$	—		$	2		$	—		$	—		$	1

Policies in force (in thousands)	2,429			2,510			2,567			2,584			2,594
Change from prior year quarter	7.0		%	10.0		%	11.3		%	10.1		%	6.8		%
Change from prior quarter	3.5		%	3.3		%	2.3		%	0.7		%	0.4		%

(1) Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses. Billing and policy fees are as follows:

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	16	$	15	$	16	$	16	$	17

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Selected Statistics - Personal Insurance (Homeowners and Other)
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Statutory underwriting

Gross written premiums	$	679		$	880		$	926		$	795		$	734
Net written premiums	$	640		$	830		$	794		$	755		$	699

Net earned premiums	$	688		$	717		$	734		$	752		$	749
Losses and loss adjustment expenses	325			387			242			286			402
Underwriting expenses	206			238			250			248			228
Statutory underwriting gain	$	157		$	92		$	242		$	218		$	119

GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	47.3		%	54.0		%	33.0		%	38.0		%	53.7		%
Underwriting expense ratio	30.8		%	29.3		%	31.1		%	32.8		%	29.4		%
Combined ratio	78.1		%	83.3		%	64.1		%	70.8		%	83.1		%

Impact of catastrophes on combined ratio	0.0		%	8.9		%	2.1		%	2.8		%	5.9		%

Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	64		$	15		$	21		$	44
After-tax	$	—		$	42		$	10		$	13		$	28

Policies in force (in thousands)	4,291			4,407			4,512			4,562			4,593
Change from prior year quarter	6.3		%	7.8		%	8.7		%	8.1		%	7.0		%
Change from prior quarter	1.7		%	2.7		%	2.4		%	1.1		%	0.7		%

(1) Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses. Billing and policy fees are as follows:

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	9	$	9	$	9	$	8	$	9

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Interest Expense and Other
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Revenues
Net investment income	$	2		$	—		$	—		$	—		$	—
Other revenues (1)	4			—			—			43			5
Total revenues	6			—			—			43			5

Claims and expenses
Interest expense	75			75			88			81			76
General and administrative expenses	11			(6		)	4			5			9
Total claims and expenses	86			69			92			86			85

Operating loss before federal income tax benefit	(80		)	(69		)	(92		)	(43		)	(80		)
Income taxes	(59		)	(21		)	(31		)	(10		)	(58		)
Operating loss	$	(21	)	$	(48	)	$	(61	)	$	(33	)	$	(22	)

(1) Other revenues in the fourth quarter of 2006 include a $42 million gain on the Company’s redemption of its 7.60%, $593 million subordinated debentures, representing the remaining unamortized fair value adjustment recorded at the merger date.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Consolidated Balance Sheet (1)
(in millions)

	March 31,			December 31,
	2007 (1)			2006

Assets
Fixed maturities, available for sale at fair value (including $1,582 and $1,674 subject to securities lending) (amortized cost $62,716 and $62,244)	$	63,133		$	62,666
Equity securities, at fair value (cost $442 and $436)	481			473
Real estate	810			793
Short-term securities	4,886			4,938
Other investments	3,380			3,398
Total investments	72,690			72,268

Cash	378			459
Investment income accrued	795			827
Premiums receivable	6,156			6,181
Reinsurance recoverables	17,265			17,820
Ceded unearned premiums	1,479			1,243
Deferred acquisition costs	1,696			1,615
Deferred tax asset	1,713			1,536
Contractholder receivables	5,079			5,023
Goodwill	3,437			3,438
Intangible assets	920			764
Other assets	2,513			2,587
Total assets	$	114,121		$	113,761

Liabilities
Claims and claim adjustment expense reserves	$	58,821		$	59,288
Unearned premium reserves	11,240			11,228
Contractholder payables	5,079			5,023
Payables for reinsurance premiums	915			685
Debt	6,123			5,760
Other liabilities	6,586			6,642
Total liabilities	88,764			88,626

Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.4 shares issued and outstanding at both dates)	124			129
Common stock (1,750.0 shares authorized; 665.3 and 678.3 shares issued and outstanding)	18,634			18,530
Retained earnings	8,167			7,253
Accumulated other changes in equity from nonowner sources	417			452
Treasury stock, at cost (39.7 and 25.2 shares)	(1,985		)	(1,229		)
Total shareholders’ equity	25,357			25,135
Total liabilities and shareholders’ equity	$	114,121		$	113,761

(1) Preliminary and unaudited.

The Travelers Companies, Inc.
Investment Portfolio
(at carrying value, $ in millions)

	March 31,		Pre-tax Book		December 31,		Pre-tax Book
	2007		Yield (1)		2006		Yield (1)
Investment portfolio

Taxable fixed maturities (including redeemable preferred stock)	$	26,459	5.12	%	$	27,035	5.09	%
Tax-exempt fixed maturities	36,674		4.17	%	35,631		4.17	%
Total fixed maturities	63,133		4.57	%	62,666		4.57	%

Non-redeemable preferred stocks	346		6.32	%	358		6.38	%
Common stocks	135				115
Total equity securities	481				473

Real estate	810				793

Short-term securities	4,886		5.42	%	4,938		5.45	%

Private equities	1,586				1,592
Arbitrage funds	950				984
Real estate joint ventures & other	766				743
Mortgage loans	51		7.71	%	53		7.22	%
Trading securities	27				26
Total other investments	3,380				3,398

Total investments	$	72,690			$	72,268

Net unrealized gain on investment securities, net of tax, included in shareholders’ equity	$	439			$	453

(1) Yields are provided for those investments with an embedded book yield.

The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
(at carrying value, $ in millions)

	March 31,		December 31,
	2007		2006
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	7,477	$	7,589
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,328		2,718
Corporates (including redeemable preferreds)	14,966		14,900
Obligations of states and political subdivisions	36,956		35,907
Debt securities issued by foreign governments	1,406		1,552
Total fixed maturities	$	63,133	$	62,666

Fixed Maturities Quality Characteristics (1)

	March 31, 2007
	Amount		% of Total
Quality Ratings
Aaa	$	42,253	67.0	%
Aa	11,920		18.9
A	4,197		6.6
Baa	3,069		4.9
Total investment grade	61,439		97.4
Ba	772		1.2
B	711		1.1
Caa and lower	211		0.3
Total below investment grade	1,694		2.6
Total fixed maturities	$	63,133	100.0	%
Average weighted quality	AA1, AA+
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.1

(1) Rated using external rating agencies or by Travelers when a public rating does not exist. Below investment grade assets refer to securities rated “Ba” or below.

The Travelers Companies, Inc.
Investment Income
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Gross investment income
Fixed maturities	$	667		$	677		$	691		$	703		$	709
Short-term securities	60			60			81			84			73
Other	163			159			100			135			193
	890			896			872			922			975
Investment expenses	15			22			14			12			15
Net investment income, pre-tax	875			874			858			910			960
Income taxes	205			201			190			209			223
Net investment income, after-tax	$	670		$	673		$	668		$	701		$	737

Effective tax rate	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%

Average invested assets (1)	$	69,701		$	70,491		$	72,050		$	72,808		$	72,737

Average yield pre-tax (1)	5.0		%	5.0		%	4.8		%	5.0		%	5.3		%
Average yield after-tax	3.8		%	3.8		%	3.7		%	3.9		%	4.1		%

(1) Excludes net unrealized investment gains and losses, and is adjusted for cash, receivables for investment sales, payables on investment purchases and accrued investment income.

The Travelers Companies, Inc.
Net Realized and Unrealized Investment Gains (Losses)
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Net realized investment gains (losses)
Fixed maturities	$	—		$	(29	)	$	(6	)	$	2		$	9
Equity securities	14			2			7			(2		)	2
Other	(20		)	37			11			(5		)	3
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14
Related taxes	(1		)	(1		)	6			(1		)	6
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8

Gross investment gains (1)	$	125		$	101		$	86		$	80		$	60
Gross investment losses before impairments (1)	(121		)	(88		)	(61		)	(63		)	(37		)
Impairments	(10		)	(3		)	(13		)	(22		)	(9		)
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14
Related taxes	(1		)	(1		)	6			(1		)	6
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8

	March 31,			June 30,			September 30,		December 31,		March 31,
	2006			2006			2006		2006		2007

Net unrealized investment gains (losses), by asset type
Fixed maturities	$	(328	)	$	(917	)	$	440	$	422	$	417
Equity securities & other	217			174			173		258		252
Unrealized investment gains (losses) before tax	(111		)	(743		)	613		680		669
Related taxes	(50		)	(267		)	202		227		230

Balance, end of period	$	(61	)	$	(476	)	$	411	$	453	$	439

(1) Includes the following gross investment gains and gross investment losses related to U.S. Treasury futures, which are settled daily:

Gross investment Treasury future gains		$	71		$	34		$	14		$	25		$	18
Gross investment Treasury future losses		$	43		$	25		$	24		$	22		$	19

The Company entered into these arrangements as part of its strategy to shorten the duration of the fixed maturity portfolio. In a changing interest rate environment the change in the value of the futures contracts can be expected to partially offset changes in the value of the fixed maturity portfolio.

The Travelers Companies, Inc.
Reinsurance Recoverables
($ in millions)

	March 31,			December 31,
	2007			2006
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	12,129		$	12,837
Allowance for uncollectible reinsurance	(766		)	(773		)
Net reinsurance recoverables	11,363			12,064
Mandatory pools and associations	2,160			1,998
Structured settlements	3,742			3,758
Total reinsurance recoverables	$	17,265		$	17,820

The Company’s top five reinsurer groups, including retroactive reinsurance, by reinsurance recoverable is as follows:

	A.M. Best Rating of Group’s	March 31,		December 31,
Reinsurer	Predominant Reinsurer	2007		2006
Swiss Re Group	A+ second highest of 16 ratings	$	1,528	$	1,478
Munich Re Group	A third highest of 16 ratings	1,049		1,125
Berkshire Hathaway Group	A++ highest of 16 ratings	790		900
American International Group	A+ second highest of 16 ratings	677		718
XL Capital Group	A+ second highest of 16 ratings	541		552

The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and unasserted claims. The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves. Although this total comprises recoverables due from nearly one thousand different reinsurance entities, about half is attributable to 10 reinsurer groups.

The net reinsurance recoverables reflect an allowance for uncollectible reinsurance that is recorded on the basis of periodic evaluations of balances due, reinsurer solvency, the Company’s experience and current economic conditions. Of the total net recoverables due from reinsurers at March 31, 2007, after deducting mandatory pool and structured settlement balances, $8.9 billion, or 78%, were rated by A.M. Best Company. Of the total rated by A.M. Best Company, 97% were rated A- or better. The remaining 22% net recoverables from reinsurers was comprised of the following: 6% related to the Company’s participation in voluntary pools, 8% related to recoverables from captive insurance companies and 8% were balances from other companies not rated by A.M. Best Company. In addition, $3.2 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at March 31, 2007.

The allowance for uncollectible reinsurance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors.

The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in. These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market. The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state. In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.

The structured settlements represent annuities that are purchased from life insurance companies to settle personal physical injury claims, with workers’ compensation claims comprising a significant proportion. The Company retains the ultimate liability to the claimant in the event that the assigned company fails to pay, so the amount is reflected as a liability and as a recoverable for GAAP purposes.

The Travelers Companies, Inc.
Net Reserves for Losses and Loss Adjustment Expense
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Business Insurance
Beginning of period	$	35,312		$	35,158		$	34,776		$	34,650		$	34,444
Incurred	1,621			1,640			1,686			1,648			1,684
Paid	(2,147		)	(2,070		)	(1,815		)	(1,868		)	(1,661		)
Acquired reserves, foreign exchange and other (1)	372			48			3			14			(11		)
End of period	$	35,158		$	34,776		$	34,650		$	34,444		$	34,456

Financial, Professional & International Insurance
Beginning of period	$	4,242		$	4,513		$	4,646		$	4,822		$	5,014
Incurred	415			442			461			462			447
Paid	(347		)	(366		)	(293		)	(318		)	(318		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	203			57			8			48			(152		)
End of period	$	4,513		$	4,646		$	4,822		$	5,014		$	4,991

Personal Insurance
Beginning of period	$	3,637		$	3,585		$	3,694		$	3,612		$	3,490
Incurred	915			1,013			840			829			997
Paid	(967		)	(904		)	(922		)	(951		)	(992		)
End of period	$	3,585		$	3,694		$	3,612		$	3,490		$	3,495

Total
Beginning of period	$	43,191		$	43,256		$	43,116		$	43,084		$	42,948
Incurred	2,951			3,095			2,987			2,939			3,128
Paid	(3,461		)	(3,340		)	(3,030		)	(3,137		)	(2,971		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	575			105			11			62			(163		)
End of period	$	43,256		$	43,116		$	43,084		$	42,948		$	42,942

Prior Year Reserve Development: Unfavorable (Favorable)

Business Insurance
Asbestos	$	—		$	—		$	155		$	—		$	—
Environmental	—			—			120			—			—
All other	(19		)	(34		)	(229		)	(14		)	(27		)
Prior year development excluding accretion	(19		)	(34		)	46			(14		)	(27		)
Accretion of discount	16			15			16			15			15
Total Business Insurance	(3		)	(19		)	62			1			(12		)

Financial, Professional & International Insurance	—			(9		)	(1		)	(4		)	—

Personal Insurance	(30		)	(58		)	(132		)	(139		)	(35		)
Total	$	(33	)	$	(86	)	$	(71	)	$	(142	)	$	(47	)

(1) Acquired reserves include a reinsurance to close transaction for Lloyd’s in 1Q 2006, increasing reserves by $358 million and $180 million in Business Insurance and Financial, Professional & International Insurance, respectively.

(2) Sold reserves include the sale of Afianzadora in 1Q 2007, decreasing reserves by $118 million in Financial, Professional & International Insurance.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Asbestos and Environmental Reserves
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Asbestos reserves
Beginning reserves:
Direct	$	5,103		$	5,000		$	4,838		$	4,925		$	4,777
Ceded	(739		)	(720		)	(716		)	(746		)	(726		)
Net	4,364			4,280			4,122			4,179			4,051
Incurred losses and loss expenses:
Direct	—			—			196			—			—
Ceded	—			—			(41		)	—			—
Accretion of discount:
Direct	—			—			1			—			—
Ceded	—			—			—			—			—
Losses paid:
Direct	103			162			110			148			152
Ceded	(19		)	(4		)	(11		)	(20		)	(27		)
Ending reserves:
Direct	5,000			4,838			4,925			4,777			4,625
Ceded	(720		)	(716		)	(746		)	(726		)	(699		)
Net	$	4,280		$	4,122		$	4,179		$	4,051		$	3,926

Environmental reserves
Beginning reserves:
Direct	$	494		$	406		$	379		$	460		$	413
Ceded	(69		)	(19		)	(7		)	6			5
Net	425			387			372			466			418
Incurred losses and loss expenses:
Direct	—			—			108			—			—
Ceded	—			—			12			—			—
Losses paid:
Direct	88			27			27			47			49
Ceded	(50		)	(12		)	(1		)	1			(3		)
Ending reserves:
Direct	406			379			460			413			364
Ceded	(19		)	(7		)	6			5			8
Net	$	387		$	372		$	466		$	418		$	372

See Glossary of Financial Measures and Description of Operating Segments on page 34.

The Travelers Companies, Inc.
Capitalization
($ in millions)

	March 31,			December 31,
Debt	2007			2006

Short-term debt
Commercial paper	$	100		$	100
5.75% Senior notes due March 15, 2007	—			500
5.01% Senior notes due August 16, 2007	442			442
3.75% Senior notes due March 15, 2008 (1)	400			—
Medium-term notes maturing in the following 12 months	42			72
Total short-term debt	984			1,114

Long-term debt
Medium-term notes with various maturities through 2010	170			170
3.75% Senior notes due March 15, 2008 (1)	—			400
Zero coupon convertible notes due 2009, effective yield 4.17%, callable on March 3, 1999	129			128
8.125% Senior notes due April 15, 2010 (1)	250			250
7.81% Private placement notes due on various dates through 2011	12			12
5.00% Senior notes due March 15, 2013 (1)	500			500
5.50% Senior notes due December 1, 2015	400			400
6.25% Senior notes due June 20, 2016 (1)	400			400
7.75% Senior notes due April 15, 2026	200			200
7.625% Subordinated debentures due December 15, 2027	125			125
8.47% Subordinated debentures due January 10, 2027 (2)	—			81
4.50% Convertible junior subordinated notes due April 15, 2032, callable April 18, 2007 (3)	893			893
6.375% Senior notes due March 15, 2033 (1)	500			500
6.75% Senior notes due June 20, 2036 (1)	400			400
8.50% Subordinated debentures due December 15, 2045	56			56
8.312% Subordinated debentures due July 1, 2046	73			73
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067	1,000			—
Total long-term debt	5,108			4,588
Unamortized fair value adjustment	95			109
Unamortized debt issuance costs	(64		)	(51		)
	5,139			4,646
Total debt	6,123			5,760

Preferred equity	124			129
Common equity (excluding SFAS 115)	24,794			24,553
Total capital	$	31,041		$	30,442
Total debt to capital	19.7		%	18.9		%

(1) Redeemable anytime with “make-whole” premium.

(2) Redeemed on January 18, 2007.

(3) Redeemed on April 18, 2007.

The Travelers Companies, Inc.
Statutory to GAAP Shareholders’ Equity Reconciliation (1)
($ in millions)

	March 31,			December 31,
	2007 (1)			2006

Statutory capital and surplus	$	21,204		$	20,945
GAAP adjustments
Goodwill and intangible assets	4,143			3,985
Investments	868			993
Noninsurance companies	(4,107		)	(4,007		)
Deferred acquisition costs	1,696			1,615
Deferred federal income tax	577			411
Current federal income tax	(242		)	3
Reinsurance recoverables	587			587
Furniture, equipment & software	384			382
Employee benefits	71			74
Agents balances	83			83
Other	93			64

Total GAAP adjustments	4,153			4,190

GAAP shareholders’ equity	$	25,357		$	25,135

(1) Estimated and Preliminary

The Travelers Companies, Inc.
Statement of Cash Flows - Preliminary
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Cash flows from operating activities
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	6			(10		)	(12		)	5			(14		)
Depreciation and amortization	197			197			213			201			205
Deferred federal income taxes	159			44			150			168			(188		)
Amortization of deferred policy acquisition costs	800			814			858			867			869
Premium balances receivable	110			(358		)	154			37			17
Reinsurance recoverables	636			370			434			558			548
Deferred acquisition costs	(836		)	(874		)	(880		)	(837		)	(967		)
Claim and claim adjustment expense reserves	(1,137		)	(509		)	(351		)	(568		)	(350		)
Unearned premium reserves	103			272			87			(162		)	60
Trading account activities	4			2			—			—			(1		)
Excess tax benefits from share-based payment arrangements	(5		)	(1		)	(2		)	(8		)	(9		)
Gain on redemption of subordinated debentures	—			—			—			(42		)	—
Other	(481		)	(68		)	13			248			(389		)
Net cash provided by operating activities	562			849			1,707			1,656			867

Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	1,571			1,079			1,758			1,402			1,637
Proceeds from sales of investments
Fixed maturities	1,320			1,854			452			775			729
Equity securities	94			32			98			61			25
Purchase of investments
Fixed maturities	(3,983		)	(4,066		)	(2,191		)	(3,605		)	(3,006		)
Equity securities	(47		)	(17		)	(27		)	8			(29		)
Real estate	(8		)	(6		)	(9		)	(52		)	(26		)
Short-term securities, (purchases) sales, net	67			(160		)	(1,275		)	1,283			(103		)
Other investments, net	154			(5		)	149			108			186
Securities transactions in course of settlement	490			19			(159		)	97			305
Other	(38		)	(84		)	(93		)	(110		)	(203		)
Net cash provided (used) by investing activities	(380		)	(1,354		)	(1,297		)	(33		)	(485		)

The Travelers Companies, Inc.
Statement of Cash Flows - Preliminary (Continued)
($ in millions)

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007

Cash flows from financing activities
Issuance of debt	—			786			—			—			986
Payment of debt	(4		)	—			(42		)	(760		)	(611		)
Treasury stock acquired - net employee share-based compensation	(16		)	(1		)	—			—			(26		)
Treasury stock acquired - share repurchase program	—			(230		)	(137		)	(736		)	(698		)
Issuance of common stock - employee stock options	32			26			31			127			54
Dividends to shareholders	(161		)	(182		)	(181		)	(178		)	(175		)
Excess tax benefits from share-based payment arrangements	5			1			2			8			9
Other	(2		)	3			(1		)	17			(1		)
Net cash provided (used) by financing activities	(146		)	403			(328		)	(1,522		)	(462		)

Effect of exchange rate changes on cash	—			3			1			1			(1		)

Net increase (decrease) in cash	36			(99		)	83			102			(81		)
Cash at beginning of period	337			373			274			357			459
Cash at end of period	$	373		$	274		$	357		$	459		$	378

Income taxes paid (received)	$	(5	)	$	258		$	338		$	270		$	88
Interest paid	$	85		$	79		$	86		$	108		$	75

The Travelers Companies, Inc.
Financial Supplement - First Quarter 2007
Glossary of Financial Measures and Description of Operating Segments

Return on equity is the ratio of net income to average equity. Operating return on equity is the ratio of operating income to average equity excluding net unrealized investment gains and losses, net of tax.

In the opinion of the Company’s management, operating income, operating income per share and operating return on equity are meaningful indicators of underwriting and operating results. These measures exclude net realized investment gains or losses which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends. Internally, the Company’s management uses operating income, operating income per share and operating return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis.

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.

A catastrophe is a severe loss, resulting from natural and manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorism and other similar events. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount in advance, and therefore their effects are not included in earnings or claims and claim adjustment expense reserves prior to occurrence. A catastrophe may also result in the payment of reinstatement premiums and assessments from various pools. In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

Loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims. Loss reserve development may be related to prior year or current year development. In the opinion of the Company’s management, discussion of prior year loss reserve development is useful to investors as it allows them to assess the impact between prior year and current year development on current earnings and changes in claims and claim adjustment expense reserve levels from period to period.

GAAP combined ratio is the sum of the loss and loss adjustment expense ratio (loss and LAE ratio), the underwriting expense ratio and, where applicable, the ratio of dividends to policyholders to net premiums earned. For GAAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses reduced by an allocation of fee income to net earned premiums. The underwriting expense ratio is the ratio of underwriting expenses incurred reduced by an allocation of fee income, and billing and policy fees to net earned premiums. A GAAP combined ratio under 100% generally indicates an underwriting profit. A GAAP combined ratio over 100% generally indicates an underwriting loss. The GAAP combined ratio is an operating statistic that includes GAAP measures in the numerator and the denominator.

Travelers has organized its businesses into the following operating and reporting segments, beginning with the third quarter 2006:

Business Insurance - The Business Insurance segment offers a broad array of property and casualty insurance and insurance-related services in the United States. Business Insurance is organized into the following groups, which collectively comprise Business Insurance Core operations: Select Accounts; Commercial Accounts; National Accounts; Industry-Focused Underwriting including Construction, Technology, Public Sector Services, Oil & Gas, and Agribusiness; Target Risk Underwriting including National Property, Inland Marine, Ocean Marine, Excess Casualty, Boiler & Machinery, and Global Accounts; and Specialized Distribution including Northland and National Programs. Business Insurance also includes the Special Liability Group and policies written by Gulf (primarily management and professional liability coverages), and other runoff operations, which collectively are referred to as Business Insurance Other.

Financial, Professional & International Insurance - The Financial, Professional & International Insurance segment includes surety, crime, and financial liability businesses which primarily use credit-based underwriting processes, as well as property and casualty products that are predominantly marketed on an international basis. The businesses in Financial, Professional & International Insurance are Bond & Financial Products and International and Lloyd’s.

Personal Insurance writes virtually all types of property and casualty insurance covering personal risks. The primary coverages in this segment are personal automobile and homeowners insurance sold to individuals.

Minnesota	001-10898	41-0518860
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

385 Washington Street
Saint Paul, Minnesota		55102
(Address of principal executive offices)		(Zip Code)

Exhibit No.		Description

99.1		Press Release, dated April 26, 2007, reporting results of operations (This exhibit is furnished and not filed.)
99.2		First Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

Date: April 26, 2007	THE TRAVELERS COMPANIES, INC.

	By:	/s/ Bruce A. Backberg
		Name: Bruce A. Backberg
		Title: Senior Vice President

Exhibit No.		Description

99.1		Press Release, dated April 26, 2007, reporting results of operations (This exhibit is furnished and not filed.)
99.2		First Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)


The Travelers Companies, Inc.
Financial Supplement - First Quarter 2007

		Page Number
Consolidated Results
Financial Highlights		1
Reconciliation to Net Income and Earnings Per Share		2
Statement of Income		3
Net Income by Major Component and Combined Ratio		4
Operating Income		5
Selected Statistics - Property and Casualty Operations		6
Written and Earned Premiums - Property and Casualty Operations		7

Business Insurance
Operating Income		8
Operating Income by Major Component and Combined Ratio		9
Selected Statistics		10
Net Written Premiums		11

Financial, Professional & International Insurance
Operating Income		12
Operating Income by Major Component and Combined Ratio		13
Selected Statistics		14
Net Written Premiums		15

Personal Insurance
Operating Income		16
Operating Income by Major Component and Combined Ratio		17
Selected Statistics		18
Selected Statistics - Automobile		19
Selected Statistics - Homeowners and Other		20

Supplemental Detail
Interest Expense and Other		21
Consolidated Balance Sheet		22
Investment Portfolio		23
Investment Portfolio - Fixed Maturities Data		24
Investment Income		25
Net Realized and Unrealized Investment Gains (Losses)		26
Reinsurance Recoverables		27
Net Reserves for Losses and Loss Adjustment Expense		28
Asbestos and Environmental Reserves		29
Capitalization		30
Statutory to GAAP Shareholders’ Equity Reconciliation		31
Statement of Cash Flows		32
Statement of Cash Flows (continued)		33

Glossary of Financial Measures and Description of Operating Segments		34