8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 26, 2007

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

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)

(651) 310-7911
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On July 26, 2007, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended June 30, 2007, and the availability of the Company’s second quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.  Financial Statements and Exhibits.

(d)               Exhibits.

Exhibit No.	Description
99.1	Press Release, dated July 26, 2007, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Second Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:       July 26, 2007	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Bruce A. Backberg
		Name:	Bruce A. Backberg
		Title:	Senior Vice President

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated July 26, 2007, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Second Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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EX-99.1

Exhibit 99.1
	The Travelers Companies, Inc.
	385 Washington Street
	St. Paul, MN 55102-1396
NEWS RELEASE	www.travelers.com

Travelers Reports Second Quarter 2007 Net Income of $1.254 Billion, or $1.86 per Diluted Share

Operating Income per Diluted Share of $1.73, an Increase of 29% from the Prior Year Quarter

SAINT PAUL, Minn. (July 26, 2007) – The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $1.254 billion, or $1.90 per basic share and $1.86 per diluted share, for the quarter ended June 30, 2007, compared to $970 million, or $1.40 per basic share and $1.36 per diluted share, for the quarter ended June 30, 2006.  Operating income in the current quarter was $1.167 billion, or $1.77 per basic share and $1.73 per diluted share, compared to $959 million, or $1.39 per basic share and $1.34 per diluted share, in the prior year quarter.

“We are very pleased with our performance this quarter,” commented Jay Fishman, Chairman and Chief Executive Officer.  “The 29 percent growth in our operating income per share is a reflection of our operational success and our continuing focus on capital management.  In that regard, we have already repurchased almost $2.5 billion of our company’s stock since the beginning of our buyback program in May 2006.

“Each of our segments generated strong underwriting results, and our investment portfolio produced impressive returns.  We remain focused on risk selection and pricing adequacy, paying close attention to our profitability.  Our underwriting analytics continue to be an important driver in our ability to identify attractive business.  Furthermore, our financial strength and product breadth position us well for the future,” concluded Mr. Fishman.

Current Quarter Highlights

·Return on equity of 19.9 percent and operating return on equity of 18.6 percent.

·Net investment income of $758 million after-tax, a 13 percent increase from the prior year quarter.

·Net written premiums of $5.714 billion, a 1 percent increase from the prior year quarter, or 2 percent when adjusted for the recent sale of two operations, Mendota and Afianzadora Insurgentes.

·Strong underwriting results in all segments, with GAAP combined ratios in Business Insurance of 88.1 percent; Financial, Professional & International Insurance of 91.0 percent; and Personal Insurance of 85.9 percent.  Consolidated GAAP combined ratio of 87.8 percent.

·Repurchased 11.4 million common shares under the company’s share repurchase program for a total cost of $622 million.

·Book value per share (excluding FAS 115) of $38.76, a 15 percent increase from June 30, 2006, and a 7 percent increase from December 31, 2006.

·On July 6, 2007, entered into a settlement for all ACandS asbestos-related coverage claims (subject to final court approval).

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Consolidated Second Quarter Highlights

($ in millions, except for per share amounts,	Three Months Ended June 30,								Six Months Ended June 30,
and after-tax except for premiums)	2007			2006			Change		2007			2006			Change
Gross written premiums	$	6,262		$	6,197		1	%	$	12,333		$	12,007		3	%
Net written premiums	5,714			5,655			1		10,858			10,429			4
Net earned premiums	5,327			5,181			3		10,622			10,172			4
Underwriting gain	449			311			44		790			648			22
Net investment income	758			673			13		1,495			1,343			11
Operating income	1,167			959			22		2,245			1,970			14
per diluted share	$	1.73		$	1.34		29		$	3.27		$	2.75		19
Net income	1,254			970			29		2,340			1,976			18
per diluted share	$	1.86		$	1.36		37		$	3.41		$	2.76		24
Book value per share	$	38.36		$	33.14		16		$	38.36		$	33.14		16
Adjusted book value per share	$	38.76		$	33.83		15		$	38.76		$	33.83		15
GAAP combined ratio	87.8		%	89.8		%	(2.0	) pts	88.5		%	89.4		%	(0.9	) pts
Operating return on equity	18.6		%	16.6		%	2.0	pts	18.0		%	17.4		%	0.6	pts
Return on equity	19.9		%	17.0		%	2.9	pts	18.6		%	17.5		%	1.1	pts

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

Second Quarter 2007 Consolidated Results

Net and operating income in the current quarter of $1.254 billion and $1.167 billion, respectively, were driven by strong net investment income and current accident year underwriting results.  The current quarter included $83 million after-tax ($125 million pre-tax) for net favorable prior year reserve development and $58 million for the favorable resolution of various prior year federal tax matters.  The current quarter also included $26 million after-tax ($40 million pre-tax) of catastrophe losses and an after-tax charge of $25 million ($39 million pre-tax) due to the redemption of convertible junior subordinated notes.

The net favorable prior year reserve development of $83 million after-tax included environmental reserve strengthening of $120 million after-tax ($185 million pre-tax), the largest component of which was attributable to litigation costs relating to coverage disputes.  Each of the company’s business segments experienced net favorable prior year reserve development in the current quarter.

Net and operating income in the prior year quarter of $970 million and $959 million, respectively, included $68 million after-tax ($101 million pre-tax) for net favorable prior year reserve development and $23 million after-tax ($36 million pre-tax) for the favorable resolution of various prior year state tax matters, as well as $44 million after-tax ($67 million pre-tax) for catastrophe losses.

Net income in the current quarter included $87 million after-tax ($128 million pre-tax) of net realized investment gains, primarily due to the bundled sale of a substantial portion of the company’s venture capital portfolio that resulted in a $52 million after-tax ($81 million pre-tax) realized gain.

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As discussed in the first quarter of 2007, the company has implemented a new fixed, value-based agent compensation program for all of its personal lines business and the majority of its commercial lines business.  The change to the new program created a difference in the timing of commission expense recognition.  The impact of this change in the second quarter was to lower reported expenses, from what otherwise would have been reported, by $38 million after-tax ($59 million pre-tax), primarily in Business Insurance and Personal Insurance.

Net written premiums increased 1 percent from the prior year quarter, or 2 percent when adjusted for the recent sales of Mendota, the company’s non-standard personal auto operation, and Afianzadora Insurgentes, the company’s Mexican surety operation.  This result was primarily driven by renewal price increases in Personal Insurance and strong retention rates across most businesses, partially offset by the timing of the purchase of certain catastrophe reinsurance for the Northeastern United States via the company’s new catastrophe bond program, established in May 2007.

Net investment income in the current quarter was $758 million after-tax ($990 million pre-tax), a 13 percent increase from the prior year quarter.  The increase was primarily driven by higher yields throughout the portfolio, particularly for non-fixed income investments, and higher average invested assets largely due to strong operating cash flows.

The GAAP combined ratio in the current quarter was 87.8 percent, a 2.0 point improvement from the 89.8 percent reported in the prior year quarter.  The current quarter GAAP combined ratio benefited by 2.4 points from net favorable prior year reserve development, partially offset by 0.8 points for catastrophe losses.  The current quarter GAAP combined ratio also benefited by 1.1 points from the change to the new fixed compensation program.  The prior year quarter GAAP combined ratio included a 2.0 point benefit for net favorable prior year reserve development, partially offset by 1.3 points for catastrophe losses.

Capital Management

During the second quarter of 2007, the company repurchased 11.4 million of its common shares under its share repurchase program for a total cost of $622 million.  Through June 30, 2007, the company has repurchased 48.1 million shares for a total cost of $2.468 billion since the program’s inception in the second quarter of 2006.  As of June 30, 2007, the total remaining authorization under the program was $2.532 billion.

Also during the second quarter of 2007, the company redeemed all of its outstanding $893 million, 4.50% convertible junior subordinated notes due in 2032, resulting in an after-tax loss of $25 million ($39 million pre-tax) and the elimination of 16 million shares from the calculation of fully diluted earnings per share, as of April 18, 2007.

Year-to-Date 2007 Consolidated Results

Net income for the six-month period ended June 30, 2007, was $2.340 billion, or $3.52 per basic share and $3.41 per diluted share, compared to $1.976 billion, or $2.85 per basic share and $2.76 per diluted share, for the six-month period ended June 30, 2006.  Operating income in the current year period was $2.245 billion, or $3.38 per basic share and $3.27 per diluted share, compared to $1.970 billion, or $2.84 per basic share and $2.75 per diluted share, in the prior year period.

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Net and operating income for the first six months of 2007 included $123 million after-tax ($187 million pre-tax) for net favorable prior year reserve development and $86 million for the favorable resolution of various prior year federal tax matters.  The current year period also included $55 million after-tax ($85 million pre-tax) for catastrophe losses and an after-tax charge of $25 million ($39 million pre-tax) due to the redemption of the convertible junior subordinated notes.  In addition, the current year period included the impact of the change to the new fixed compensation program which lowered reported expenses, from what otherwise would have been reported, by $85 million after-tax ($131 million pre-tax).   The change to the new program created a difference in the timing of commission expense recognition.  In the prior year period, net and operating income included net favorable prior year reserve development of $100 million after-tax ($150 million pre-tax) and $72 million after-tax for the favorable resolution of various prior year federal and state tax matters ($91 million before federal tax on the state tax amounts), as well as $44 million after-tax ($67 million pre-tax) for catastrophe losses.

The GAAP combined ratio in the current year period was 88.5 percent, a 0.9 point improvement from the 89.4 percent reported in the prior year period. The GAAP combined ratio benefited by 1.8 points from net favorable prior year reserve development, partially offset by 0.8 points for catastrophe losses. The GAAP combined ratio also benefited by 1.2 points from the change to the new fixed compensation program.  The prior year period GAAP combined ratio included a 1.5 point benefit for net favorable prior year reserve development, partially offset by 0.7 points for catastrophe losses.

Net investment income in the current year period was $1.495 billion after-tax ($1.950 billion pre-tax), an 11 percent increase from the prior year period. The increase was primarily driven by higher yields throughout the portfolio, particularly for non-fixed income investments, and higher average invested assets largely due to strong operating cash flows.

Net written premiums increased 4 percent from the prior year period, or 5 percent when adjusted for the sales of Mendota and Afianzadora Insurgentes.

For the first six months of 2007, operating return on equity was 18.0 percent, compared to 17.4 percent in the prior year period.

Business Insurance Segment Financial Results

For the second quarter 2007, the Business Insurance segment reported operating income of $805 million, compared to $655 million in the prior year quarter.  The current quarter benefited from the continuation of favorable loss trends, higher net investment income, the resolution of certain tax matters discussed above and net favorable prior year reserve development.

The current quarter included an after-tax benefit of $39 million ($60 million pre-tax) for net favorable prior year reserve development, consisting of $159 million after-tax ($245 million pre-tax) primarily due to better than expected frequency and severity loss trends in recent accident years in the commercial multi-peril, general liability and commercial auto lines of business, partially offset by $120 million after-tax ($185 million pre-tax) of environmental

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reserve strengthening.  The current quarter also included an after-tax benefit of $19 million ($29 million pre-tax) due to the change to the new fixed compensation program and $34 million for the favorable resolution of various prior year federal tax matters.  The prior year quarter included an after-tax benefit of $21 million ($34 million pre-tax) for net favorable prior year reserve development.  There were no catastrophe losses reported in the current or prior year quarters.

The GAAP combined ratio was 88.1 percent in the current quarter, a 2.0 point improvement from the 90.1 percent reported in the prior year quarter.  The current quarter GAAP combined ratio benefited by 2.1 points from net favorable prior year reserve development, compared to a benefit of 1.2 points in the prior year quarter.  The current quarter GAAP combined ratio also included a 1.0 point benefit from the change to the new fixed compensation program.

Net written premiums increased 2 percent from the prior year quarter, primarily due to growth in new business volume.  Overall, retention rates were strong, generally consistent with recent quarters, and renewal price changes were modestly lower than recent quarters.

Select Accounts net written premiums increased 4 percent from the prior year quarter.  Retention rates were strong, increasing from recent quarters, and renewal price changes were positive, but moderately lower than recent quarters.  New business volume increased significantly from the prior year quarter due in part to the recent introduction in 10 states of TravelersExpressSM, an enhanced quote-to-issue agency platform and multivariate pricing program.

Commercial Accounts net written premiums increased 6 percent from the prior year quarter.  Retention rates continued to be strong, but moderately lower than recent quarters, and renewal price changes were negative, declining from the recent quarter.  New business volume increased from the prior year quarter due to recent 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 4 percent from the prior year quarter due to strong business volumes in Oil & Gas, Construction and Agribusiness.  Target Risk Underwriting net written premiums increased 3 percent from the prior year quarter due to strong business volumes in National Property and Inland Marine.  Specialized Distribution and National Accounts net written premiums decreased 1 percent and 4 percent, respectively, from the prior year quarter.

Financial, Professional & International Insurance Segment Financial Results

For the second quarter 2007, the Financial, Professional & International Insurance segment reported operating income of $152 million, compared to $149 million in the prior year quarter.  The current quarter benefited from higher net investment income and net favorable prior year reserve development, offset by non-catastrophe losses related to flooding in the United Kingdom.

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The current quarter included an after-tax benefit of $12 million ($15 million pre-tax) for net favorable prior year reserve development, compared to an after-tax benefit of $9 million ($9 million pre-tax) in the prior year quarter.  There were no catastrophe losses reported in the current or prior year quarters; however, the current quarter was negatively impacted by $20 million after-tax ($30 million pre-tax) due to the U.K. floods.

The GAAP combined ratio was 91.0 percent in the current quarter, a 2.6 point increase from the 88.4 percent reported in the prior year quarter. The U.K. floods added 3.6 points to the current quarter GAAP combined ratio.  The current quarter GAAP combined ratio benefited by 1.7 points from net favorable prior year reserve development, compared to 1.1 points in the prior year quarter.

Gross written premiums increased 2 percent from the prior year quarter, due to strong business volumes for the construction surety, United Kingdom and Canada business units as well as favorable rates of exchange.  Net written premiums decreased 2 percent from the prior year quarter, or 1 percent when adjusted for the sale of Afianzadora Insurgentes, predominantly due to the timing of certain reinsurance transactions, which negatively impacted net written premiums in the current quarter.

Bond & Financial Products net written premiums were consistent with the prior year quarter, but increased 1 percent when adjusted for Afianzadora Insurgentes, due to strong construction surety business volumes.  For Bond & Financial Products, excluding the surety line of business, retention rates were very strong, increasing from recent quarters; renewal price changes were slightly negative, a decline from recent quarters; and new business volume decreased from the prior year quarter due to more competitive market conditions.  These metrics are not relevant for the surety line of business because these products are sold on a non-recurring, project-specific basis.

International and Lloyd’s net written premiums decreased 5 percent from the prior year quarter.  The current quarter benefited from favorable rates of exchange but was negatively impacted by the timing of certain reinsurance transactions.  Retention rates were strong, but lower than recent quarters; renewal price changes were flat, consistent with recent quarters; and new business volume was consistent with the prior year quarter.

Personal Insurance Segment Financial Results

For the second quarter 2007, the Personal Insurance segment reported operating income of $276 million, compared to $203 million in the prior year quarter.  The current quarter benefited from lower catastrophe losses, higher earned premium volume and net favorable prior year reserve development.

The current quarter included an after-tax benefit of $32 million ($50 million pre-tax) for net favorable prior year reserve development, primarily due to better than expected auto loss performance resulting in part from claim initiatives and fewer than expected late reported homeowners claims related to non-catastrophe weather events.  The prior year quarter included an after-tax benefit of $38 million ($58 million pre-tax) for net favorable prior year reserve development.  The current quarter was negatively impacted by $26 million after-tax ($40 million pre-tax) due to catastrophe losses, compared to $44 million after-tax ($67 million pre-tax) in the prior year quarter.  The current quarter also included an after-tax benefit of $16 million ($25 million pre-tax) due to the change to the new fixed compensation program.

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The GAAP combined ratio was 85.9 percent in the current quarter, a 4.2 point improvement from the 90.1 percent reported in the prior year quarter.  The current quarter GAAP combined ratio benefited by 3.0 points from net favorable prior year reserve development, compared to a benefit of 3.6 points in the prior year quarter.  Catastrophe losses added 2.4 points to the current quarter GAAP combined ratio, compared to 4.1 points in the prior year quarter.  The current quarter GAAP combined ratio also benefited by 1.5 points from the change to the new fixed compensation program.

Personal Insurance net written premiums increased 1 percent from the prior year quarter, or 3 percent when adjusted for the sale of Mendota.  This result was primarily attributable to continued strong retention rates and renewal price increases, partially offset by the timing of the purchase of certain catastrophe reinsurance via the company’s new catastrophe bond program, for which Personal Insurance was allocated a portion of the cost.

Automobile net written premiums decreased 4 percent from the prior year quarter, but increased 1 percent when adjusted for Mendota.  Policies in force increased 4 percent from the prior year quarter, adjusted for Mendota.  Retention rates were strong and renewal price changes were positive, both consistent with recent quarters, and new business volume decreased from the prior year quarter.

Homeowners and Other net written premiums increased 6 percent from the prior year quarter, or 7 percent when adjusted for Mendota.  Policies in force increased 6 percent from the prior year quarter, adjusted for Mendota.  Retention rates were strong, consistent with recent quarters; renewal price changes increased from recent quarters; and new business volume decreased from the prior year quarter.

2007 Annual Guidance

Travelers is increasing its 2007 operating income per diluted share guidance to a range of $5.80 to $6.05, compared to the previously announced range of $5.60 to $5.85. 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 expected dividends and approximately $2.5 billion of share repurchases;

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

·Weighted average diluted shares of approximately 675 million, including the estimated impacts of share repurchases 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

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Travelers will discuss the contents of this release via Webcast at 9 a.m. Eastern (8 a.m. Central) on Thursday, July 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.

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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.

Book value per share is total common shareholders’ equity divided by the number of common shares outstanding. Adjusted book value per share is total common shareholders’ equity excluding the after-tax impact of net unrealized investment gains and losses, divided by the number of common 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. Tangible book value per share is adjusted book value per share excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding. In the opinion of the Company’s management, tangible book value per share is useful in an analysis of a property casualty company’s book value on a nominal basis as it removes certain effects of purchase accounting (i.e., goodwill and other intangible assets), in addition to the effect of changing prices on invested assets.

Travelers has organized its businesses into the following reportable business 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.

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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 amounts of reinsurance that are material to us; 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/A filed with the Securities and Exchange Commission.

###

10

	Three months ended						Six months ended
	June 30,						June 30,
($ in millions, except per share amounts, and after-tax)	2007			2006			2007			2006
Operating income	$	1,167		$	959		$	2,245		$	1,970
Net realized investment gains	87			11			95			6
Net income	$	1,254		$	970		$	2,340		$	1,976
Basic earnings per share
Operating income	$	1.77		$	1.39		$	3.38		$	2.84
Net realized investment gains	0.13			0.01			0.14			0.01
Net income	$	1.90		$	1.40		$	3.52		$	2.85
Diluted earnings per share
Operating income	$	1.73		$	1.34		$	3.27		$	2.75
Net realized investment gains	0.13			0.02			0.14			0.01
Net income	$	1.86		$	1.36		$	3.41		$	2.76
Weighted average number of common shares outstanding (basic)	658.6			691.8			664.2			692.0
Weighted average number of common shares outstanding and common stock equivalents (diluted)	676.0			720.4			688.6			720.6
Common shares outstanding at period end	657.0			691.4			657.0			691.4
Common stock dividends declared	$	192.0		$	180.0		$	366.0		$	340.0
Operating income (loss) by segment
Business Insurance	$	805		$	655		$	1,483		$	1,306
Financial, Professional & International Insurance	152			149			308			290
Personal Insurance	276			203			542			443
Total segment operating income	1,233			1,007			2,333			2,039
Interest Expense and Other	(66		)	(48		)	(88		)	(69		)
	$	1,167		$	959		$	2,245		$	1,970
Operating return on equity	18.6		%	16.6		%	18.0		%	17.4		%
Return on equity	19.9		%	17.0		%	18.6		%	17.5		%

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

11

	Three months ended						Six months ended
	June 30,						June 30,
($ in millions, pre-tax)	2007			2006			2007			2006
Revenues
Premiums	$	5,327		$	5,181		$	10,622		$	10,172
Net investment income	990			874			1,950			1,749
Fee income	127			153			247			303
Net realized investment gains	128			10			142			4
Other revenues	1			37			39			77
	$	6,573		$	6,255		$	13,000		$	12,305
Revenues
Business Insurance	$	3,656		$	3,512		$	7,237		$	6,948
Financial, Professional & International Insurance	975			947			1,945			1,843
Personal Insurance	1,850			1,786			3,707			3,504
Total segment revenues	6,481			6,245			12,889			12,295
Interest Expense and Other	(36		)	—			(31		)	6
	6,445			6,245			12,858			12,301
Net realized investment gains	128			10			142			4
	$	6,573		$	6,255		$	13,000		$	12,305
Gross written premiums
Business Insurance	$	3,321		$	3,314		$	6,708		$	6,568
Financial, Professional & International Insurance	1,063			1,043			2,038			1,978
Personal Insurance	1,878			1,840			3,587			3,461
	$	6,262		$	6,197		$	12,333		$	12,007
Net written premiums
Business Insurance	$	2,935		$	2,872		$	5,815		$	5,559
Financial, Professional & International Insurance	984			1,002			1,584			1,517
Personal Insurance	1,795			1,781			3,459			3,353
	$	5,714		$	5,655		$	10,858		$	10,429
GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	57.6		%	60.0		%	59.3		%	60.4		%
Underwriting expense ratio	30.5			30.1			30.4			30.0
Combined ratio	88.1		%	90.1		%	89.7		%	90.4		%
Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	54.7		%	52.6		%	53.8		%	52.8		%
Underwriting expense ratio	36.3			35.8			36.4			35.4
Combined ratio	91.0		%	88.4		%	90.2		%	88.2		%
Personal Insurance
Loss and loss adjustment expense ratio	57.6		%	62.2		%	58.3		%	60.5		%
Underwriting expense ratio	28.3			27.9			27.4			27.8
Combined ratio	85.9		%	90.1		%	85.7		%	88.3		%
Total Company (2)
Loss and loss adjustment expense ratio	57.1		%	59.5		%	58.1		%	59.2		%
Underwriting expense ratio	30.7			30.3			30.4			30.2
Combined ratio	87.8		%	89.8		%	88.5		%	89.4		%

(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 expenses and other underwriting expenses.

(2) Before policyholder dividends.

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

12

	Three months ended						Six months ended
	June 30,						June 30,
($ in millions; after-tax except as noted)	2007			2006			2007			2006
Reconciliation of underwriting gain to net income
Pre-tax underwriting gain	$	607		$	494		$	1,132		$	1,010
Tax expense on underwriting results	(158		)	(183		)	(342		)	(362		)
Underwriting gain	449			311			790			648
Net investment income	758			673			1,495			1,343
Other, including interest expense	(40		)	(25		)	(40		)	(21		)
Consolidated operating income	1,167			959			2,245			1,970
Net realized investment gains	87			11			95			6
Net income	$	1,254		$	970		$	2,340		$	1,976

	As of
	June 30,			Dec 31,		June 30,
(in millions; except per share data)	2007			2006		2006
Reconciliation of tangible and adjusted common shareholders’ equity to common shareholders’ equity
Tangible common shareholders’ equity	$	21,338		$	20,491	$	19,266
Goodwill and other intangibles, net of tax	4,128			4,062		4,122
Adjusted common shareholders’ equity	25,466			24,553		23,388
Net unrealized investment gains (losses), net of tax	(263		)	453		(476		)
Common shareholders’ equity	$	25,203		$	25,006	$	22,912
Common shares oustanding	657.0			678.3		691.4
Tangible book value per share	$	32.48		$	30.21	$	27.87
Adjusted book value per share	38.76			36.20		33.83
Book value per share	$	38.36		$	36.86	$	33.14

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

###

Contacts
Media:	Institutional Investors:	Individual Investors:
Marlene Ibsen	Michael Connelly	Marc Parr
860.277.9039, or	860.277.1507, or	860.277.0779
Jennifer Wislocki	David Schlosberg
860.277.7458	917.778.6817

13

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - Second 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 Reportable Business Segments	34

The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.

Index

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,976		$	2,340
Net income per share:
Basic	$	1.45		$	1.40		$	1.52		$	1.75		$	1.62		$	1.90		$	2.85		$	3.52
Diluted	$	1.41		$	1.36		$	1.47		$	1.68		$	1.56		$	1.86		$	2.76		$	3.41
Operating income	$	1,011		$	959		$	1,037		$	1,193		$	1,078		$	1,167		$	1,970		$	2,245
Operating income per share:
Basic	$	1.46		$	1.39		$	1.51		$	1.75		$	1.61		$	1.77		$	2.84		$	3.38
Diluted	$	1.41		$	1.34		$	1.46		$	1.69		$	1.55		$	1.73		$	2.75		$	3.27
Return on equity	17.9		%	17.0		%	17.6		%	19.1		%	17.3		%	19.9		%	17.5		%	18.6		%
Operating return on equity	18.1		%	16.6		%	17.4		%	19.6		%	17.5		%	18.6		%	17.4		%	18.0		%
Total assets, at period end (1)	$	114,041		$	114,681		$	116,407		$	115,292		$	115,688		$	115,361		$	114,681		$	115,361
Total equity, at period end	$	22,837		$	23,052		$	24,747		$	25,135		$	25,357		$	25,322		$	23,052		$	25,322
Book value per share, at period end	$	32.59		$	33.14		$	35.69		$	36.86		$	37.93		$	38.36		$	33.14		$	38.36
Less: Net unrealized investment gains (losses), net of tax (FAS 115)	(0.09		)	(0.69		)	0.59			0.66			0.67			(0.40		)	(0.69		)	(0.40		)
Adjusted book value per share, at period end	$	32.68		$	33.83		$	35.10		$	36.20		$	37.26		$	38.76		$	33.83		$	38.76
Weighted average number of common shares outstanding (basic)	692.2			691.8			685.3			679.2			669.9			658.6			692.0			664.2
Weighted average number of common shares outstanding and common stock equivalents (diluted)	720.8			720.4			714.6			711.0			701.2			676.0			720.6			688.6
Common shares outstanding at period end	696.2			691.4			689.5			678.3			665.3			657.0			691.4			657.0
Common stock dividends declared	$	160		$	180		$	180		$	176		$	174		$	192		$	340		$	366
Common stock repurchased:
Under repurchase program (2)
Shares	—			5.6			2.8			14.4			13.9			11.4			5.6			25.3
Cost	$	—		$	250		$	121		$	750		$	725		$	622		$	250		$	1,347
Other
Shares	0.5			0.1			—			0.7			0.6			0.7			0.6			1.3
Cost	$	22		$	3		$	5		$	31		$	31		$	36		$	25		$	67

(1)  Certain contractholder receivables and payables in the consolidated balance sheet, which had previously been reported on a net basis, have been reclassified to a gross basis, consistent with the Company’s accounting policy.

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

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

1

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

															YTD		YTD
	1Q			2Q		3Q		4Q			1Q		2Q		2Q		2Q
	2006			2006		2006		2006			2007		2007		2006		2007
Net income
Operating income	$	1,011		$	959	$	1,037	$	1,193		$	1,078	$	1,167	$	1,970	$	2,245
Net realized investment gains (losses)	(5		)	11		6		(4		)	8		87		6		95
Net income	$	1,006		$	970	$	1,043	$	1,189		$	1,086	$	1,254	$	1,976	$	2,340
Basic earnings per share
Operating income	$	1.46		$	1.39	$	1.51	$	1.75		$	1.61	$	1.77	$	2.84	$	3.38
Net realized investment gains (losses)	(0.01		)	0.01		0.01		—			0.01		0.13		0.01		0.14
Net income	$	1.45		$	1.40	$	1.52	$	1.75		$	1.62	$	1.90	$	2.85	$	3.52
Diluted earnings per share
Operating income	$	1.41		$	1.34	$	1.46	$	1.69		$	1.55	$	1.73	$	2.75	$	3.27
Net realized investment gains (losses)	—			0.02		0.01		(0.01		)	0.01		0.13		0.01		0.14
Net income	$	1.41		$	1.36	$	1.47	$	1.68		$	1.56	$	1.86	$	2.76	$	3.41

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Basic
Net income, as reported	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,976		$	2,340
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(2		)	(1		)	(1		)	(2		)	(2		)
Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085		$	1,253		$	1,974		$	2,338
Diluted
Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085		$	1,253		$	1,974		$	2,338
Effect of dilutive securities:
Convertible preferred stock	1			1			1			2			1			1			2			2
Zero coupon convertible notes	1			1			1			1			1			1			2			2
Convertible junior subordinated notes	7			6			7			6			7			1			13			8
Net income available to common shareholders - diluted	$	1,014		$	977		$	1,051		$	1,196		$	1,094		$	1,256		$	1,991		$	2,350
Common Shares
Basic
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9			658.6			692.0			664.2
Diluted
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9			658.6			692.0			664.2
Weighted average effects of dilutive securities:
Stock options and other incentive plans	5.9			6.0			6.8			9.5			9.1			8.9			6.0			9.1
Convertible preferred stock	3.6			3.5			3.4			3.2			3.1			3.0			3.5			3.0
Zero coupon convertible notes	2.4			2.4			2.4			2.4			2.4			2.4			2.4			2.4
Convertible junior subordinated notes (2)	16.7			16.7			16.7			16.7			16.7			3.1			16.7			9.9
Diluted weighted average shares outstanding	720.8			720.4			714.6			711.0			701.2			676.0			720.6			688.6

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

(2)  On April 18, 2007, the Company completed the redemption of its 4.50% convertible junior subordinated notes.

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

2

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Revenues
Premiums	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295		$	5,327		$	10,172		$	10,622
Net investment income	875			874			858			910			960			990			1,749			1,950
Fee income	150			153			150			138			120			127			303			247
Net realized investment gains (losses)	(6		)	10			12			(5		)	14			128			4			142
Other revenues	40			37			36			98			38			1			77			39
Total revenues	6,050			6,255			6,316			6,469			6,427			6,573			12,305			13,000
Claims and expenses
Claims and claim adjustment expenses	3,042			3,153			3,047			3,002			3,189			3,096			6,195			6,285
Amortization of deferred acquisition costs	800			814			858			867			869			915			1,614			1,784
General and administrative expenses	794			866			869			929			833			836			1,660			1,669
Interest expense	76			78			88			82			76			85			154			161
Total claims and expenses	4,712			4,911			4,862			4,880			4,967			4,932			9,623			9,899
Income before income taxes	1,338			1,344			1,454			1,589			1,460			1,641			2,682			3,101
Income tax expense	332			374			411			400			374			387			706			761
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,976		$	2,340
Other statistics:
Effective tax rate on net investment income	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%	23.4		%	23.2		%	23.3		%
Net investment income (after-tax)	$	670		$	673		$	668		$	701		$	737		$	758		$	1,343		$	1,495
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45		$	40		$	67		$	85
After-tax	$	—		$	44		$	10		$	13		$	29		$	26		$	44		$	55

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

3

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Underwriting gain	$	337		$	311		$	407		$	487		$	341		$	449		$	648		$	790
Net investment income	670			673			668			701			737			758			1,343			1,495
Other, including interest expense	4			(25		)	(38		)	5			—			(40		)	(21		)	(40		)
Operating income	1,011			959			1,037			1,193			1,078			1,167			1,970			2,245
Net realized investment gains (losses)	(5		)	11			6			(4		)	8			87			6			95
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,976		$	2,340
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	58.9		%	59.5		%	56.7		%	55.1		%	59.2		%	57.1		%	59.2		%	58.1		%
Underwriting expense ratio	30.0		%	30.3		%	30.5		%	31.6		%	30.0		%	30.7		%	30.2		%	30.4		%
Combined ratio	88.9		%	89.8		%	87.2		%	86.7		%	89.2		%	87.8		%	89.4		%	88.5		%
Impact of catastrophes on combined ratio	0.0		%	1.3		%	0.3		%	0.4		%	0.9		%	0.8		%	0.7		%	0.8		%
Impact of prior year reserve development on combined ratio	-1.0		%	-2.0		%	-1.7		%	-3.0		%	-1.2		%	-2.4		%	-1.5		%	-1.8		%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Billing and policy fees	$	28	$	26	$	28	$	28	$	29	$	25	$	54	$	54
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47	$	48	$	158	$	95
Underwriting expenses	58		87		91		79		73		79		145		152
Total fee income	$	150	$	153	$	150	$	138	$	120	$	127	$	303	$	247

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

4

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Revenues
Premiums	$	4,991	$	5,181	$	5,260	$	5,328	$	5,295	$	5,327	$	10,172	$	10,622
Net investment income	875		874		858		910		960		990		1,749		1,950
Fee income	150		153		150		138		120		127		303		247
Other revenues	40		37		36		98		38		1		77		39
Total revenues	6,056		6,245		6,304		6,474		6,413		6,445		12,301		12,858
Claims and expenses
Claims and claim adjustment expenses	3,042		3,153		3,047		3,002		3,189		3,096		6,195		6,285
Amortization of deferred acquisition costs	800		814		858		867		869		915		1,614		1,784
General and administrative expenses	794		866		869		929		833		836		1,660		1,669
Interest expense	76		78		88		82		76		85		154		161
Total claims and expenses	4,712		4,911		4,862		4,880		4,967		4,932		9,623		9,899
Operating income before income taxes	1,344		1,334		1,442		1,594		1,446		1,513		2,678		2,959
Income tax expense	333		375		405		401		368		346		708		714
Operating income	$	1,011	$	959	$	1,037	$	1,193	$	1,078	$	1,167	$	1,970	$	2,245

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

5

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

																	YTD			YTD
	1Q		2Q			3Q			4Q			1Q			2Q		2Q			2Q
	2006		2006			2006			2006			2007			2007		2006			2007
Statutory underwriting
Gross written premiums	$	5,810	$	6,197		$	6,100		$	5,932		$	6,071		$	6,262	$	12,007		$	12,333
Net written premiums	$	4,774	$	5,655		$	5,284		$	5,437		$	5,144		$	5,714	$	10,429		$	10,858
Net earned premiums	$	4,991	$	5,181		$	5,260		$	5,328		$	5,295		$	5,327	$	10,172		$	10,622
Losses and loss adjustment expenses	2,951		3,095			2,987			2,939			3,128			3,059		6,046			6,187
Underwriting expenses	1,493		1,609			1,524			1,644			1,670			1,732		3,102			3,402
Statutory underwriting gain	547		477			749			745			497			536		1,024			1,033
Policyholder dividends	9		6			5			6			7			6		15			13
Statutory underwriting gain after policyholder dividends	$	538	$	471		$	744		$	739		$	490		$	530	$	1,009		$	1,020
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	43,256	$	43,116		$	43,084		$	42,948		$	42,942		$	43,029	$	43,116		$	43,029
Increase (decrease) in reserves (1)	$	65	$	(140	)	$	(32	)	$	(136	)	$	(6	)	$	87	$	(75	)	$	81
Statutory surplus	$	18,522	$	19,037		$	19,961		$	20,945		$	21,204		$	21,843	$	19,037		$	21,843
Net written premiums/surplus (2)	1.10:1		1.09:1			1.05:1			1.01:1			1.01:1			0.99:1		1.09:1			0.99:1

(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 Reportable Business Segments on page 34.

6

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Written premiums
Gross	$	5,810		$	6,197		$	6,100		$	5,932		$	6,071		$	6,262		$	12,007		$	12,333
Ceded	(1,036		)	(542		)	(816		)	(495		)	(927		)	(548		)	(1,578		)	(1,475		)
Net	$	4,774		$	5,655		$	5,284		$	5,437		$	5,144		$	5,714		$	10,429		$	10,858
Earned premiums
Gross	$	5,733		$	5,899		$	6,006		$	6,120		$	6,001		$	6,031		$	11,632		$	12,032
Ceded	(742		)	(718		)	(746		)	(792		)	(706		)	(704		)	(1,460		)	(1,410		)
Net	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295		$	5,327		$	10,172		$	10,622

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

7

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Revenues
Premiums	$	2,643	$	2,715	$	2,737	$	2,781	$	2,763	$	2,802	$	5,358	$	5,565
Net investment income	636		635		610		657		694		717		1,271		1,411
Fee income	150		153		150		138		120		127		303		247
Other revenues	7		9		8		20		4		10		16		14
Total revenues	3,436		3,512		3,505		3,596		3,581		3,656		6,948		7,237
Claims and expenses
Claims and claim adjustment expenses	1,706		1,695		1,746		1,706		1,741		1,664		3,401		3,405
Amortization of deferred acquisition costs	376		374		397		400		403		435		750		838
General and administrative expenses	474		533		531		566		509		503		1,007		1,012
Interest expense	1		3		—		1		—		—		4		—
Total claims and expenses	2,557		2,605		2,674		2,673		2,653		2,602		5,162		5,255
Operating income before federal income taxes	879		907		831		923		928		1,054		1,786		1,982
Income taxes	228		252		218		220		250		249		480		499
Operating income	$	651	$	655	$	613	$	703	$	678	$	805	$	1,306	$	1,483

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

8

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Underwriting gain	$	155		$	159		$	131		$	181		$	140		$	249		$	314		$	389
Net investment income	492			491			478			507			534			550			983			1,084
Other	4			5			4			15			4			6			9			10
Operating income	$	651		$	655		$	613		$	703		$	678		$	805		$	1,306		$	1,483
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.9		%	60.0		%	61.5		%	59.1		%	61.2		%	57.6		%	60.4		%	59.3		%
Underwriting expense ratio	29.8		%	30.1		%	30.5		%	31.8		%	30.3		%	30.5		%	30.0		%	30.4		%
Combined ratio	90.7		%	90.1		%	92.0		%	90.9		%	91.5		%	88.1		%	90.4		%	89.7		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	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		%	-2.1		%	-1.0		%	-1.6		%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Billing and policy fees	$	3	$	3	$	3	$	3	$	3	$	3	$	6	$	6
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47	$	48	$	158	$	95
Underwriting expenses	58		87		91		79		73		79		145		152
Total fee income	$	150	$	153	$	150	$	138	$	120	$	127	$	303	$	247

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

9

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	3,254		$	3,314		$	3,257		$	3,222		$	3,387		$	3,321		$	6,568		$	6,708
Net written premiums	$	2,687		$	2,872		$	2,644		$	2,843		$	2,880		$	2,935		$	5,559		$	5,815
Net earned premiums	$	2,643		$	2,715		$	2,737		$	2,781		$	2,763		$	2,802		$	5,358		$	5,565
Losses and loss adjustment expenses	1,621			1,640			1,686			1,648			1,684			1,628			3,261			3,312
Underwriting expenses	756			813			761			857			866			882			1,569			1,748
Statutory underwriting gain	266			262			290			276			213			292			528			505
Policyholder dividends	5			3			2			3			3			3			8			6
Statutory underwriting gain after policyholder dividends	$	261		$	259		$	288		$	273		$	210		$	289		$	520		$	499
Other statistics
Effective tax rate on net investment income	22.8		%	22.6		%	21.6		%	22.8		%	23.1		%	23.3		%	22.7		%	23.2		%
Net investment income (after-tax)	$	492		$	491		$	478		$	507		$	534		$	550		$	983		$	1,084
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
After-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

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

10

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

														YTD		YTD
	1Q		2Q		3Q		4Q			1Q		2Q		2Q		2Q
	2006		2006		2006		2006			2007		2007		2006		2007
Net written premiums by market
Select Accounts	$	679	$	705	$	625	$	654		$	701	$	731	$	1,384	$	1,432
Commercial Accounts	575		548		575		678			641		581		1,123		1,222
National Accounts	268		298		254		315			255		286		566		541
Industry-Focused Underwriting	521		560		548		567			582		580		1,081		1,162
Target Risk Underwriting	398		463		377		391			417		475		861		892
Specialized Distribution	245		280		255		242			252		276		525		528
Total core	2,686		2,854		2,634		2,847			2,848		2,929		5,540		5,777
Business Insurance other	1		18		10		(4		)	32		6		19		38
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880	$	2,935	$	5,559	$	5,815
Net written premiums by product line
Commercial multi-peril	$	804	$	776	$	708	$	795		$	805	$	778	$	1,580	$	1,583
Workers’ compensation	540		529		474		592			614		553		1,069		1,167
Commercial automobile	467		522		509		515			506		526		989		1,032
Property	467		521		469		482			494		549		988		1,043
General liability	407		512		476		462			434		527		919		961
Other	2		12		8		(3		)	27		2		14		29
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880	$	2,935	$	5,559	$	5,815
National accounts
Additions to claim volume under administration (1)	$	890	$	742	$	650	$	722		$	836	$	640	$	1,632	$	1,476
Written fees	$	144	$	134	$	121	$	113		$	123	$	104	$	278	$	227

(1)  Includes new and renewal business.

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

11

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Revenues
Premiums	$	788	$	839	$	850	$	844	$	844	$	844	$	1,627	$	1,688
Net investment income	103		102		108		116		121		125		205		246
Other revenues	5		6		5		10		5		6		11		11
Total revenues	896		947		963		970		970		975		1,843		1,945
Claims and expenses
Claims and claim adjustment expenses	421		445		462		466		451		464		866		915
Amortization of deferred acquisition costs	150		159		164		165		163		160		309		323
General and administrative expenses	126		142		134		134		145		146		268		291
Total claims and expenses	697		746		760		765		759		770		1,443		1,529
Operating income before federal income taxes	199		201		203		205		211		205		400		416
Income taxes	58		52		59		30		55		53		110		108
Operating income	$	141	$	149	$	144	$	175	$	156	$	152	$	290	$	308

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

12

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Underwriting gain	$	60		$	68		$	59		$	79		$	62		$	53		$	128		$	115
Net investment income	77			77			82			89			91			95			154			186
Other	4			4			3			7			3			4			8			7
Operating income	$	141		$	149		$	144		$	175		$	156		$	152		$	290		$	308
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0		%	52.6		%	54.1		%	54.9		%	53.0		%	54.7		%	52.8		%	53.8		%
Underwriting expense ratio	35.0		%	35.8		%	34.9		%	35.5		%	36.4		%	36.3		%	35.4		%	36.4		%
Combined ratio	88.0		%	88.4		%	89.0		%	90.4		%	89.4		%	91.0		%	88.2		%	90.2		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	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		%	-1.7		%	-0.6		%	-0.9		%

(1)  Before policyholder dividends.

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

13

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	935		$	1,043		$	974		$	1,029		$	975		$	1,063		$	1,978		$	2,038
Net written premiums	$	515		$	1,002		$	912		$	964		$	600		$	984		$	1,517		$	1,584
Net earned premiums	$	788		$	839		$	850		$	844		$	844		$	844		$	1,627		$	1,688
Losses and loss adjustment expenses	415			442			461			462			447			463			857			910
Underwriting expenses	292			299			273			287			322			314			591			636
Statutory underwriting gain	81			98			116			95			75			67			179			142
Policyholder dividends	4			3			3			3			4			3			7			7
Statutory underwriting gain after policyholder dividends	$	77		$	95		$	113		$	92		$	71		$	64		$	172		$	135
Other statistics
Effective tax rate on net investment income	24.7		%	24.3		%	24.2		%	24.4		%	24.6		%	24.5		%	24.5		%	24.5		%
Net investment income (after-tax)	$	77		$	77		$	82		$	89		$	91		$	95		$	154		$	186
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
After-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

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

14

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Net written premiums by market
Bond & Financial Products:
Bond & Financial Products excluding Afianzadora Insurgentes	$	270	$	645	$	643	$	619	$	292	$	652	$	915	$	944
Afianzadora Insurgentes (1)	23		15		21		19		19		6		38		25
Total Bond & Financial Products	293		660		664		638		311		658		953		969
International and Lloyd’s	222		342		248		326		289		326		564		615
Total	$	515	$	1,002	$	912	$	964	$	600	$	984	$	1,517	$	1,584
Net written premiums by product line
General liability	$	110	$	282	$	297	$	317	$	96	$	275	$	392	$	371
Fidelity & surety	152		342		338		293		180		344		494		524
International	222		342		248		326		289		326		564		615
Other	31		36		29		28		35		39		67		74
Total	$	515	$	1,002	$	912	$	964	$	600	$	984	$	1,517	$	1,584

(1)  In March 2007, the Company completed the sale of its Mexican surety subsidiary, Afianzadora Insurgentes.

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

15

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Revenues
Premiums	$	1,560	$	1,627	$	1,673	$	1,703	$	1,688	$	1,681	$	3,187	$	3,369
Net investment income	134		137		140		137		145		148		271		293
Other revenues	24		22		23		25		24		21		46		45
Total revenues	1,718		1,786		1,836		1,865		1,857		1,850		3,504		3,707
Claims and expenses
Claims and claim adjustment expenses	915		1,013		839		830		997		968		1,928		1,965
Amortization of deferred acquisition costs	274		281		297		302		303		320		555		623
General and administrative expenses	183		197		200		224		170		177		380		347
Total claims and expenses	1,372		1,491		1,336		1,356		1,470		1,465		2,863		2,935
Operating income before federal income taxes	346		295		500		509		387		385		641		772
Income taxes	106		92		159		161		121		109		198		230
Operating income	$	240	$	203	$	341	$	348	$	266	$	276	$	443	$	542

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

16

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Underwriting gain	$	122		$	84		$	217		$	226		$	139		$	147		$	206		$	286
Net investment income	102			105			108			106			112			113			207			225
Other	16			14			16			16			15			16			30			31
Operating income	$	240		$	203		$	341		$	348		$	266		$	276		$	443		$	542
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	58.7		%	62.2		%	50.2		%	48.7		%	59.0		%	57.6		%	60.5		%	58.3		%
Underwriting expense ratio	27.7		%	27.9		%	28.2		%	29.4		%	26.5		%	28.3		%	27.8		%	27.4		%
Combined ratio	86.4		%	90.1		%	78.4		%	78.1		%	85.5		%	85.9		%	88.3		%	85.7		%
Impact of catastrophes on combined ratio	0.0		%	4.1		%	0.9		%	1.3		%	2.7		%	2.4		%	2.1		%	2.5		%
Impact of prior year reserve development on combined ratio	-1.9		%	-3.6		%	-7.9		%	-8.2		%	-2.1		%	-3.0		%	-2.8		%	-2.5		%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Billing and policy fees	$	25	$	23	$	25	$	25	$	26	$	22	$	48	$	48

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

17

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	1,621		$	1,840		$	1,869		$	1,681		$	1,709		$	1,878		$	3,461		$	3,587
Net written premiums	$	1,572		$	1,781		$	1,728		$	1,630		$	1,664		$	1,795		$	3,353		$	3,459
Net earned premiums	$	1,560		$	1,627		$	1,673		$	1,703		$	1,688		$	1,681		$	3,187		$	3,369
Losses and loss adjustment expenses	915			1,013			840			829			997			968			1,928			1,965
Underwriting expenses	445			497			490			500			482			536			942			1,018
Statutory underwriting gain	$	200		$	117		$	343		$	374		$	209		$	177		$	317		$	386
Other statistics
Effective tax rate on net investment income	23.6		%	23.5		%	23.0		%	22.6		%	22.8		%	22.8		%	23.5		%	22.8		%
Net investment income (after-tax)	$	102		$	105		$	108		$	106		$	112		$	113		$	207		$	225
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45		$	40		$	67		$	85
After-tax	$	—		$	44		$	10		$	13		$	29		$	26		$	44		$	55
Policies in force (in thousands) (1)
Automobile	2,309			2,378			2,431			2,450			2,456			2,464			2,378			2,464
Homeowners and other	4,270			4,387			4,493			4,544			4,579			4,631			4,387			4,631

(1)  In April 2007, the Company completed the sale of its subsidiary, Mendota Insurance Company and its wholly-owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. Policies in force have been restated to exclude sold entities.

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

18

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Statutory underwriting
Gross written premiums	$	942	$	960	$	943	$	886	$	975	$	927	$	1,902	$	1,902
Net written premiums:
Excluding Mendota	$	883	$	909	$	889	$	836	$	916	$	915	$	1,792	$	1,831
Mendota (1)	49		42		45		39		49		—		91		49
Total	$	932	$	951	$	934	$	875	$	965	$	915	$	1,883	$	1,880
Net earned premiums	$	872	$	910	$	939	$	951	$	939	$	912	$	1,782	$	1,851
Losses and loss adjustment expenses	590		626		598		543		595		593		1,216		1,188
Underwriting expenses	239		259		240		252		254		262		498		516
Statutory underwriting gain	$	43	$	25	$	101	$	156	$	90	$	57	$	68	$	147
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	67.7%		68.7%		63.7%		57.1%		63.3%		65.1%		68.2%		64.2%
Underwriting expense ratio	25.3%		26.8%		26.0%		26.8%		24.1%		26.6%		26.1%		25.4%
Combined ratio	93.0%		95.5%		89.7%		83.9%		87.4%		91.7%		94.3%		89.6%
Impact of catastrophes on combined ratio	0.0%		0.4%		0.0%		0.0%		0.1%		0.4%		0.2%		0.3%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—	$	3	$	—	$	—	$	1	$	4	$	3	$	5
After-tax	$	—	$	2	$	—	$	—	$	1	$	2	$	2	$	3
Policies in force (in thousands) (3)	2,309		2,378		2,431		2,450		2,456		2,464
Change from prior year quarter (3)	5.4%		8.3%		9.8%		8.9%		6.3%		3.6%
Change from prior quarter (3)	2.6%		3.0%		2.2%		0.8%		0.2%		0.3%

(1)  In April 2007, the Company completed the sale of its subsidiary, Mendota Insurance Company and its wholly-owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. (collectively, Mendota).

(2)  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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Billing and policy fees	$	16	$	15	$	16	$	16	$	17	$	13	$	31	$	30

(3)  Policies in force have been restated to exclude sold entities.

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

19

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	679		$	880		$	926		$	795		$	734		$	951		$	1,559		$	1,685
Net written premiums:
Excluding Mendota	$	637		$	826		$	791		$	753		$	699		$	880		$	1,463		$	1,579
Mendota (1)	3			4			3			2			—			—			7			—
Total	$	640		$	830		$	794		$	755		$	699		$	880		$	1,470		$	1,579
Net earned premiums	$	688		$	717		$	734		$	752		$	749		$	769		$	1,405		$	1,518
Losses and loss adjustment expenses	325			387			242			286			402			375			712			777
Underwriting expenses	206			238			250			248			228			274			444			502
Statutory underwriting gain	$	157		$	92		$	242		$	218		$	119		$	120		$	249		$	239
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	47.3		%	54.0		%	33.0		%	38.0		%	53.7		%	48.7		%	50.7		%	51.2		%
Underwriting expense ratio	30.8		%	29.3		%	31.1		%	32.8		%	29.4		%	30.2		%	30.0		%	29.8		%
Combined ratio	78.1		%	83.3		%	64.1		%	70.8		%	83.1		%	78.9		%	80.7		%	81.0		%
Impact of catastrophes on combined ratio	0.0		%	8.9		%	2.1		%	2.8		%	5.9		%	4.6		%	4.5		%	5.3		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	64		$	15		$	21		$	44		$	36		$	64		$	80
After-tax	$	—		$	42		$	10		$	13		$	28		$	24		$	42		$	52
Policies in force (in thousands) (3)	4,270			4,387			4,493			4,544			4,579			4,631
Change from prior year quarter (3)	6.4		%	7.9		%	8.9		%	8.3		%	7.2		%	5.6		%
Change from prior quarter (3)	1.7		%	2.7		%	2.4		%	1.1		%	0.8		%	1.1		%

(1)  In April 2007, the Company completed the sale of its subsidiary, Mendota Insurance Company and its wholly-owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. (collectively Mendota).

(2)  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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2006		2006		2006		2006		2007		2007		2006		2007
Billing and policy fees	$	9	$	9	$	9	$	8	$	9	$	9	$	18	$	18

(3)  Policies in force have been restated to exclude sold entities.

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

20

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Revenues
Net investment income	$	2		$	—		$	—		$	—		$	—		$	—		$	2		$	—
Other revenues (1)	4			—			—			43			5			(36		)	4			(31		)
Total revenues	6			—			—			43			5			(36		)	6			(31		)
Claims and expenses
Interest expense	75			75			88			81			76			85			150			161
General and administrative expenses	11			(6		)	4			5			9			10			5			19
Total claims and expenses	86			69			92			86			85			95			155			180
Operating loss before federal income tax benefit	(80		)	(69		)	(92		)	(43		)	(80		)	(131		)	(149		)	(211		)
Income taxes	(59		)	(21		)	(31		)	(10		)	(58		)	(65		)	(80		)	(123		)
Operating loss	$	(21	)	$	(48	)	$	(61	)	$	(33	)	$	(22	)	$	(66	)	$	(69	)	$	(88	)

(1)  In the fourth quarter of 2006, other revenues 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.  In the second quarter of 2007, other revenues includes a $39 million loss on the Company’s redemption of its 4.50% convertible junior subordinated notes, representing the redemption premium paid and the write off of the remaining unamortized debt issuance costs.

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

21

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

	June 30,		December 31,
	2007 (1)		2006
Assets
Fixed maturities, available for sale at fair value (including $1,666 and $1,674 subject to securities lending) (amortized cost $63,912 and $62,244)	$	63,321	$	62,666
Equity securities, at fair value (cost $432 and $436)	464		473
Real estate	867		793
Short-term securities	4,480		4,938
Other investments	3,225		3,398
Total investments	72,357		72,268
Cash	562		459
Investment income accrued	862		827
Premiums receivable	6,489		6,181
Reinsurance recoverables	16,734		17,820
Ceded unearned premiums	1,341		1,243
Deferred acquisition costs	1,797		1,615
Deferred tax asset	1,700		1,536
Contractholder receivables (2)	6,737		6,554
Goodwill	3,366		3,438
Other intangible assets	884		764
Other assets	2,532		2,587
Total assets	$	115,361	$	115,292

	June 30,			December 31,
	2007 (1)			2006
Liabilities
Claims and claim adjustment expense reserves	$	58,504		$	59,288
Unearned premium reserves	11,459			11,228
Contractholder payables (2)	6,737			6,554
Payables for reinsurance premiums	784			685
Debt	6,733			5,760
Other liabilities	5,822			6,642
Total liabilities	90,039			$	90,157
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.4 shares issued and outstanding at both dates)	119			129
Common stock (1,750.0 shares authorized; 657.0 and 678.3 shares issued and outstanding)	18,839			18,530
Retained earnings	9,228			7,253
Accumulated other changes in equity from nonowner sources	(220		)	452
Treasury stock, at cost (51.8 and 25.2 shares)	(2,644		)	(1,229		)
Total shareholders’ equity	25,322			25,135
Total liabilities and shareholders’ equity	$	115,361		$	115,292

(1)  Preliminary and unaudited.

(2)  Certain contractholder receivables and payables in the consolidated balance sheet, which had previously been reported on a net basis, have been reclassified to a gross basis, consistent with the Company’s accounting policy.

22

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

	June 30,			Pre-tax Book		December 31,		Pre-tax Book
	2007			Yield (1)		2006		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	25,881		5.10	%	$	27,035	5.09	%
Tax-exempt fixed maturities	37,440			4.17	%	35,631		4.17	%
Total fixed maturities	63,321			4.56	%	62,666		4.57	%
Non-redeemable preferred stocks	324			6.31	%	358		6.38	%
Common stocks	140					115
Total equity securities	464					473
Real estate	867					793
Short-term securities	4,480			5.34	%	4,938		5.45	%
Private equities	1,277					1,592
Arbitrage funds	1,004					984
Real estate joint ventures & other	862					743
Mortgage loans	52			7.70	%	53		7.22	%
Trading securities	30					26
Total other investments	3,225					3,398
Total investments	$	72,357				$	72,268
Net unrealized gain (loss) on investment securities, net of tax, included in shareholders' equity	$	(263	)			$	453

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

23

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

	June 30,		December 31,
	2007		2006
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	7,159	$	7,589
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,247		2,718
Corporates (including redeemable preferreds)	14,752		14,900
Obligations of states and political subdivisions	37,709		35,907
Debt securities issued by foreign governments	1,454		1,552
Total fixed maturities	$	63,321	$	62,666

Fixed Maturities
Quality Characteristics (1)

	June 30, 2007
	Amount		% of Total
Quality Ratings
Aaa	$	42,684	67.4	%
Aa	11,762		18.6
A	4,177		6.6
Baa	3,013		4.8
Total investment grade	61,636		97.4
Ba	754		1.2
B	728		1.1
Caa and lower	203		0.3
Total below investment grade	1,685		2.6
Total fixed maturities	$	63,321	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.

24

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Gross investment income
Fixed maturities	$	667		$	677		$	691		$	703		$	709		$	712		$	1,344		$	1,421
Short-term securities	60			60			81			84			73			64			120			137
Other	163			159			100			135			193			229			322			422
	890			896			872			922			975			1,005			1,786			1,980
Investment expenses	15			22			14			12			15			15			37			30
Net investment income, pre-tax	875			874			858			910			960			990			1,749			1,950
Income taxes	205			201			190			209			223			232			406			455
Net investment income, after-tax	$	670		$	673		$	668		$	701		$	737		$	758		$	1,343		$	1,495
Effective tax rate	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%	23.4		%	23.2		%	23.3		%
Average invested assets (1)	$	69,701		$	70,491		$	72,050		$	72,808		$	72,737		$	73,063		$	70,108		$	72,926
Average yield pre-tax (1)	5.0		%	5.0		%	4.8		%	5.0		%	5.3		%	5.4		%	5.0		%	5.3		%
Average yield after-tax	3.8		%	3.8		%	3.7		%	3.9		%	4.1		%	4.2		%	3.8		%	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.

25

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Net realized investment gains (losses)
Fixed maturities	$	—		$	(29	)	$	(6	)	$	2		$	9		$	13		$	(29	)	$	22
Equity securities	14			2			7			(2		)	2			3			16			5
Other (1)	(20		)	37			11			(5		)	3			112			17			115
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14			128			4			142
Related taxes	(1		)	(1		)	6			(1		)	6			41			(2		)	47
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8		$	87		$	6		$	95
Gross investment gains (2)	$	125		$	101		$	86		$	80		$	60		$	160		$	226		$	220
Gross investment losses before impairments (2)	(121		)	(88		)	(61		)	(63		)	(37		)	(23		)	(209		)	(60		)
Impairments	(10		)	(3		)	(13		)	(22		)	(9		)	(9		)	(13		)	(18		)
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14			128			4			142
Related taxes	(1		)	(1		)	6			(1		)	6			41			(2		)	47
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8		$	87		$	6		$	95

	March 31,			June 30,			September 30,		December 31,		March 31,		June 30,
	2006			2006			2006		2006		2007		2007
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	(328	)	$	(917	)	$	440	$	422	$	417	$	(591	)
Equity securities & other	217			174			173		258		252		174
Unrealized investment gains (losses) before tax	(111		)	(743		)	613		680		669		(417		)
Related taxes	(50		)	(267		)	202		227		230		(154		)
Balance, end of period	$	(61	)	$	(476	)	$	411	$	453	$	439	$	(263	)

(1)  In the second quarter of 2007, includes $81 million from the bundled sale of a substantial portion of the Company’s venture capital investment holdings.

(2)  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	$	18	$	105	$	36
Gross investment Treasury future losses	$	43	$	25	$	24	$	22	$	19	$	11	$	68	$	30

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.

26

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

	June 30,			December 31,
	2007			2006
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	11,662		$	12,837
Allowance for uncollectible reinsurance	(736		)	(773		)
Net reinsurance recoverables	10,926			12,064
Mandatory pools and associations	2,101			1,998
Structured settlements	3,707			3,758
Total reinsurance recoverables	$	16,734		$	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	June 30,		December 31,
Reinsurer	Predominant Reinsurer	2007		2006
Swiss Re Group	A+ second highest of 16 ratings	$	1,401	$	1,478
Munich Re Group	A third highest of 16 ratings	1,009		1,125
Berkshire Hathaway Group	A++ highest of 16 ratings	720		900
American International Group	A+ second highest of 16 ratings	597		718
XL Capital Group	A+ second highest of 16 ratings	533		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 June 30, 2007, after deducting mandatory pool and structured settlement balances, $8.4 billion, or 77%, were rated by A.M. Best Company. Of the total rated by A.M. Best Company, 96% were rated A- or better.  The remaining 23% net recoverables from reinsurers was comprised of the following:  7% 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, $3.1 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at June 30, 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.

27

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Business Insurance
Beginning of period	$	35,312		$	35,158		$	34,776		$	34,650		$	34,444		$	34,456		$	35,312		$	34,444
Incurred	1,621			1,640			1,686			1,648			1,684			1,628			3,261			3,312
Paid	(2,147		)	(2,070		)	(1,815		)	(1,868		)	(1,661		)	(1,814		)	(4,217		)	(3,475		)
Acquired reserves, foreign exchange and other (1)	372			48			3			14			(11		)	25			420			14
End of period	$	35,158		$	34,776		$	34,650		$	34,444		$	34,456		$	34,295		$	34,776		$	34,295
Financial, Professional & International Insurance
Beginning of period	$	4,242		$	4,513		$	4,646		$	4,822		$	5,014		$	4,991		$	4,242		$	5,014
Incurred	415			442			461			462			447			463			857			910
Paid	(347		)	(366		)	(293		)	(318		)	(318		)	(256		)	(713		)	(574		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	203			57			8			48			(152		)	87			260			(65		)
End of period	$	4,513		$	4,646		$	4,822		$	5,014		$	4,991		$	5,285		$	4,646		$	5,285
Personal Insurance
Beginning of period	$	3,637		$	3,585		$	3,694		$	3,612		$	3,490		$	3,495		$	3,637		$	3,490
Incurred	915			1,013			840			829			997			968			1,928			1,965
Paid	(967		)	(904		)	(922		)	(951		)	(992		)	(952		)	(1,871		)	(1,944		)
Sold reserves (3)	—			—			—			—			—			(62		)	—			(62		)
End of period	$	3,585		$	3,694		$	3,612		$	3,490		$	3,495		$	3,449		$	3,694		$	3,449
Total
Beginning of period	$	43,191		$	43,256		$	43,116		$	43,084		$	42,948		$	42,942		$	43,191		$	42,948
Incurred	2,951			3,095			2,987			2,939			3,128			3,059			6,046			6,187
Paid	(3,461		)	(3,340		)	(3,030		)	(3,137		)	(2,971		)	(3,022		)	(6,801		)	(5,993		)
Acquired (sold) reserves, foreign exchange and other (1) (2) (3)	575			105			11			62			(163		)	50			680			(113		)
End of period	$	43,256		$	43,116		$	43,084		$	42,948		$	42,942		$	43,029		$	43,116		$	43,029
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	155		$	—		$	—		$	—		$	—		$	—
Environmental	—			—			120			—			—			185			—			185
All other	(19		)	(34		)	(229		)	(14		)	(27		)	(245		)	(53		)	(272		)
Prior year development excluding accretion	(19		)	(34		)	46			(14		)	(27		)	(60		)	(53		)	(87		)
Accretion of discount	16			15			16			15			15			15			31			30
Total Business Insurance	(3		)	(19		)	62			1			(12		)	(45		)	(22		)	(57		)
Financial, Professional & International Insurance	—			(9		)	(1		)	(4		)	—			(15		)	(9		)	(15		)
Personal Insurance	(30		)	(58		)	(132		)	(139		)	(35		)	(50		)	(88		)	(85		)
Total	$	(33	)	$	(86	)	$	(71	)	$	(142	)	$	(47	)	$	(110	)	$	(119	)	$	(157	)

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

(3)  Reflects the sale of Mendota and its subsidiaries in 2Q 2007, decreasing reserves by $62 million in Personal Insurance.

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

28

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Asbestos reserves
Beginning reserves:
Direct	$	5,103		$	5,000		$	4,838		$	4,925		$	4,777		$	4,625		$	5,103		$	4,777
Ceded	(739		)	(720		)	(716		)	(746		)	(726		)	(699		)	(739		)	(726		)
Net	4,364			4,280			4,122			4,179			4,051			3,926			4,364			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			93			265			245
Ceded	(19		)	(4		)	(11		)	(20		)	(27		)	(26		)	(23		)	(53		)
Ending reserves:
Direct	5,000			4,838			4,925			4,777			4,625			4,532			4,838			4,532
Ceded	(720		)	(716		)	(746		)	(726		)	(699		)	(673		)	(716		)	(673		)
Net	$	4,280		$	4,122		$	4,179		$	4,051		$	3,926		$	3,859		$	4,122		$	3,859
Environmental reserves
Beginning reserves:
Direct	$	494		$	406		$	379		$	460		$	413		$	364		$	494		$	413
Ceded	(69		)	(19		)	(7		)	6			5			8			(69		)	5
Net	425			387			372			466			418			372			425			418
Incurred losses and loss expenses:
Direct	—			—			108			—			—			185			—			185
Ceded	—			—			12			—			—			—			—			—
Losses paid:
Direct	88			27			27			47			49			20			115			69
Ceded	(50		)	(12		)	(1		)	1			(3		)	—			(62		)	(3		)
Ending reserves:
Direct	406			379			460			413			364			529			379			529
Ceded	(19		)	(7		)	6			5			8			8			(7		)	8
Net	$	387		$	372		$	466		$	418		$	372		$	537		$	372		$	537

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

29

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

	June 30,			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	131			128
8.125% Senior notes due April 15, 2010 (1)	250			250
7.22% Real estate non-recourse debt due September 1, 2011	9			—
7.81% Private placement notes due on various dates through 2011	12			12
5.375% Senior notes due June 15, 2012 (1)	250			—
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
5.75% Senior notes due December 15, 2017 (1)	450			—
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
6.375% Senior notes due March 15, 2033 (1)	500			500
6.75% Senior notes due June 20, 2036 (1)	400			400
6.25% Senior notes due June 15, 2037 (1)	800			—
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	5,726			4,588
Unamortized fair value adjustment	91			109
Unamortized debt issuance costs	(68		)	(51		)
	5,749			4,646
Total debt	6,733			5,760
Preferred equity	119			129
Common equity (excluding FAS 115)	25,466			24,553
Total capital	$	32,318		$	30,442
Total debt to capital	20.8		%	18.9		%

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

(2)  Redeemed on January 18, 2007. 

(3)  Redeemed on April 18, 2007.

30

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

	June 30,			December 31,
	2007 (1)			2006
Statutory capital and surplus	$	21,843		$	20,945
GAAP adjustments
Goodwill and intangible assets	4,028			3,985
Investments	17			993
Noninsurance companies	(4,021		)	(4,007		)
Deferred acquisition costs	1,796			1,615
Deferred federal income tax	589			411
Current federal income tax	(98		)	3
Reinsurance recoverables	587			587
Furniture, equipment & software	363			382
Employee benefits	81			74
Agents balances	86			83
Other	51			64
Total GAAP adjustments	3,479			4,190
GAAP shareholders’ equity	$	25,322		$	25,135

(1) Estimated and Preliminary

31

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Cash flows from operating activities
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,976		$	2,340
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	6			(10		)	(12		)	5			(14		)	(128		)	(4		)	(142		)
Depreciation and amortization	197			197			213			201			205			203			394			408
Deferred federal income taxes	159			44			150			168			(188		)	369			203			181
Amortization of deferred policy acquisition costs	800			814			858			867			869			915			1,614			1,784
Equity income from other investments	(140		)	(134		)	(84		)	(120		)	(167		)	(205		)	(274		)	(372		)
Premium balances receivable	110			(358		)	154			37			17			(368		)	(248		)	(351		)
Reinsurance recoverables	636			370			434			558			548			531			1,006			1,079
Deferred acquisition costs	(836		)	(874		)	(880		)	(837		)	(967		)	(1,024		)	(1,710		)	(1,991		)
Claim and claim adjustment expense reserves	(1,137		)	(509		)	(351		)	(568		)	(350		)	(255		)	(1,646		)	(605		)
Unearned premium reserves	103			272			87			(162		)	60			275			375			335
Trading account activities	4			2			—			—			(1		)	(3		)	6			(4		)
Excess tax benefits from share-based payment arrangements	(5		)	(1		)	(2		)	(8		)	(9		)	(11		)	(6		)	(20		)
Other	(341		)	66			97			326			(222		)	(496		)	(275		)	(718		)
Net cash provided by operating activities	562			849			1,707			1,656			867			1,057			1,411			1,924
Cash flows from investing activities
Proceeds from maturities of investments Fixed maturities	1,571			1,079			1,758			1,402			1,637			927			2,650			2,564
Proceeds from sales of investments Fixed maturities	1,320			1,854			452			775			729			809			3,174			1,538
Equity securities	94			32			98			61			25			31			126			56
Other investments	259			253			336			263			325			606			512			931
Purchase of investments Fixed maturities	(3,983		)	(4,066		)	(2,191		)	(3,605		)	(3,006		)	(3,007		)	(8,049		)	(6,013		)
Equity securities	(47		)	(17		)	(27		)	8			(29		)	(26		)	(64		)	(55		)
Real estate	(8		)	(6		)	(9		)	(52		)	(26		)	(27		)	(14		)	(53		)
Other investments	(105		)	(258		)	(187		)	(155		)	(139		)	(232		)	(363		)	(371		)
Short-term securities, (purchases) sales, net	67			(160		)	(1,275		)	1,283			(103		)	407			(93		)	304
Securities transactions in course of settlement	490			19			(159		)	97			305			(251		)	509			54
Other	(38		)	(84		)	(93		)	(110		)	(203		)	(7		)	(122		)	(210		)
Net cash provided (used) by investing activities	(380		)	(1,354		)	(1,297		)	(33		)	(485		)	(770		)	(1,734		)	(1,255		)

32

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2006			2006			2006			2006			2007			2007			2006			2007
Cash flows from financing activities
Issuance of debt	—			786			—			—			986			1,475			786			2,461
Payment of debt	(4		)	—			(42		)	(760		)	(611		)	(857		)	(4		)	(1,468		)
Treasury stock acquired - net employee share-based compensation	(16		)	(1		)	—			—			(26		)	(12		)	(17		)	(38		)
Treasury stock acquired - share repurchase program	—			(230		)	(137		)	(736		)	(698		)	(637		)	(230		)	(1,335		)
Issuance of common stock - employee stock options	32			26			31			127			54			106			58			160
Dividends to shareholders	(161		)	(182		)	(181		)	(178		)	(175		)	(193		)	(343		)	(368		)
Excess tax benefits from share-based payment arrangements	5			1			2			8			9			11			6			20
Other	(2		)	3			(1		)	17			(1		)	1			1			—
Net cash provided (used) by financing activities	(146		)	403			(328		)	(1,522		)	(462		)	(106		)	257			(568		)
Effect of exchange rate changes on cash	—			3			1			1			(1		)	3			3			2
Net increase (decrease) in cash	36			(99		)	83			102			(81		)	184			(63		)	103
Cash at beginning of period	337			373			274			357			459			378			337			459
Cash at end of period	$	373		$	274		$	357		$	459		$	378		$	562		$	274		$	562
Income taxes paid (received)	$	(5	)	$	258		$	338		$	270		$	88		$	698		$	253		$	786
Interest paid	$	85		$	79		$	86		$	108		$	75		$	86		$	164		$	161

33

The Travelers Companies, Inc. Financial Supplement - Second Quarter 2007 Glossary of Financial Measures and Description of Reportable Business Segments

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 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.

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.

Book value per share is total common shareholders’ equity divided by the number of common shares outstanding. Adjusted book value per share is total common shareholders’ equity excluding the after-tax impact of net unrealized investment gains and losses, divided by the number of common 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 reportable business 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 business 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.

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.

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