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):  October 25, 2007

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

Minnesota	001-10898	41-0518860
(State or other jurisdiction of	(Commission File Number)	(IRS Employer Identification
incorporation)		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 October 25, 2007, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2007, and the availability of the Company’s third 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 October 25, 2007, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

2

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:       October 25, 2007	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Bruce A. Backberg
		Name:	Bruce A. Backberg
		Title:	Senior Vice President

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated October 25, 2007, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

4

EX-99.1

Exhibit 99.1

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

NEWS RELEASE

Travelers Reports Third Quarter 2007 Net Income of $1.81 per Diluted Share, up 23% from Prior Year Quarter

Third Quarter 2007 Net Income of $1.198 Billion

Operating Income of $1.81 per Diluted Share, up 24% from Prior Year Quarter

SAINT PAUL, Minn. (October 25, 2007) – The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $1.198 billion, or $1.85 per basic share and $1.81 per diluted share, for the quarter ended September 30, 2007, compared to $1.043 billion, or $1.52 per basic share and $1.47 per diluted share, for the quarter ended September 30, 2006.  Operating income in the current quarter was $1.198 billion, or $1.85 per basic share and $1.81 per diluted share, compared to $1.037 billion, or $1.51 per basic share and $1.46 per diluted share, in the prior year quarter.

“Travelers produced another outstanding quarter with a 24 percent increase in operating income per diluted share and an operating return on equity of 18.6 percent,” noted Jay Fishman, Chairman and Chief Executive Officer.  “The quarter was driven by strong underwriting results in each of our business segments along with solid investment income performance, despite current market conditions.

“Notwithstanding a somewhat more competitive environment, our premiums grew by 3 percent during the quarter, after adjusting for the sale of Mendota and Afianzadora Insurgentes earlier this year.  Our enhanced small commercial platform, TravelersExpress^SM, is being well received by our agents and is generating significant new business flow.  In the middle market, recent product introductions and the selling of additional products to existing customers have resulted in increased business volumes.  In Personal Insurance, QuantumAuto^SM continues to exceed our expectations and now provides estimated annualized written premiums of over $1 billion.  We are also encouraged by the early results and prospects for QuantumHome^SM.  Overall, we are pleased with the results of the many initiatives we have underway and continue to make business investments that enhance our competitive advantages,” concluded Mr. Fishman.

Current Quarter Highlights

•Return on equity and operating return on equity of 18.6 percent.

•Strong underwriting results in all segments with GAAP combined ratios in Business Insurance of 84.0 percent; Financial, Professional & International Insurance of 84.6 percent; and Personal Insurance of 84.8 percent.  Consolidated GAAP combined ratio of 84.4 percent.

1

•Net investment income of $724 million after-tax, an 8 percent increase from the prior year quarter.

•Net written premiums of $5.394 billion, a 2 percent increase from the prior year quarter, or 3 percent when adjusted for the early 2007 sale of two operations, Mendota and Afianzadora Insurgentes.

•      Net favorable prior year reserve development of $145 million after-tax.

•No change to the company's asbestos reserves upon completion of the annual in-depth asbestos claim review and quarterly asbestos reserve review.

•Repurchased 11.7 million common shares under the company’s share repurchase program for a total cost of $600 million in the quarter.

•      Book value per share (excluding FAS 115) of $40.20, a 15 percent increase from September 30, 2006, after repurchasing 51.4 million common shares for a total cost of $2,697 million under the company’s share repurchase program during the last twelve months.

Consolidated Highlights

($ in millions, except for per share amounts,	Three Months Ended September 30,								Nine Months Ended September 30,
and after-tax except for premiums)	2007			2006			Change		2007			2006			Change
Gross written premiums	$	6,097		$	6,100		—	%	$	18,430		$	18,107		2	%
Net written premiums	5,394			5,284			2		16,252			15,713			3
Net earned premiums	5,416			5,260			3		16,038			15,432			4
Underwriting gain	520			407			28		1,310			1,055			24
Net investment income	724			668			8		2,219			2,011			10
Operating income	1,198			1,037			16		3,443			3,007			14
per diluted share	$	1.81		$	1.46		24		$	5.08		$	4.22		20
Net income	1,198			1,043			15		3,538			3,019			17
per diluted share	$	1.81		$	1.47		23		$	5.22		$	4.23		23
Book value per share	$	40.54		$	35.69		14		$	40.54		$	35.69		14
Adjusted book value per share	$	40.20		$	35.10		15		$	40.20		$	35.10		15
GAAP combined ratio	84.4		%	87.2		%	(2.8	) pts	87.1		%	88.6		%	(1.5	) pts
Operating return on equity	18.6		%	17.4		%	1.2	pts	18.2		%	17.4		%	0.8	pts
Return on equity	18.6		%	17.6		%	1.0	pts	18.6		%	17.5		%	1.1	pts

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

Third Quarter 2007 Consolidated Results

Net and operating income in the current quarter of $1.198 billion were largely driven by strong net investment income and solid current accident year underwriting results.  The current and prior year quarters also included the following items:

2

	Three Months Ended September 30,
	2007			2006			2007			2006
($ in millions)	Pre-tax						After-tax
Net favorable prior year reserve development	$	231		$	87		$	145		$	55
Catastrophes, net of reinsurance	(14		)	(15		)	(9		)	(10		)
Timing impact of the transition to the fixed, value- based agent compensation program	29			—			19			—

The current year quarter included the timing impact of the transition to the fixed, value-based agent compensation program, which lowered reported expenses from what otherwise would have been reported. 

Net written premiums in the current quarter increased 2 percent from the prior year quarter, or 3 percent when adjusted for the April 2007 sale of Mendota, the company’s non-standard personal auto operation, and the March 2007 sale of Afianzadora Insurgentes, the company’s Mexican surety operation.  This result was primarily driven by continued strong retention rates across all businesses, renewal price increases primarily in Personal Insurance and higher new business volumes in Business Insurance due to product and marketing initiatives within the middle market and small commercial businesses.  In addition, catastrophe reinsurance costs were lower due to the timing of purchases and lower rates.

Net investment income in the current quarter was $724 million after-tax ($929 million pre-tax), an 8 percent increase from the prior year quarter.  The increase was driven by higher average invested assets due to strong operating cash flows and higher yields in both the fixed income and non-fixed income portfolios.

The GAAP combined ratio in the current quarter was 84.4 percent, a 2.8 point improvement from the 87.2 percent reported in the prior year quarter.  The GAAP combined ratios included the following items:

	Three Months Ended September 30,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(4.3	) pts	(1.7	) pts
Catastrophes, net of reinsurance	0.3		0.3
Timing impact of the transition to the fixed, value-based agent compensation program	(0.5	)	—

Capital Management

During the third quarter 2007, the company repurchased 11.7 million of its common shares under its share repurchase program for a total cost of $600 million.  Since the program’s inception in the second quarter of 2006, the company has repurchased 59.8 million shares for a total cost of $3.068 billion.  As of September 30, 2007, the total remaining authorization under the program was $1.932 billion.

3

Asbestos Reserve Review

The company’s completion of its annual in-depth asbestos claim review and quarterly asbestos reserve review during the third quarter 2007 resulted in no change to the company’s asbestos reserves.  In the prior year quarter, the company increased asbestos reserves by $155 million, resulting in a $102 million after-tax charge.

As in prior years, the annual claim review considered active policyholders and litigation cases for potential product and “non-product” liability.  Developing payment trends among policyholders in the Home Office, Field Office and Assumed and International categories were also analyzed.  The Home Office and Field Office categories, which account for the vast majority of policyholders with active asbestos related claims, continued to experience an overall reduction in new claim filings. In addition, the number of policyholders tendering asbestos claims for the first time also declined.  However, defense costs in these categories remain at similar levels to what the company has experienced in recent years due to the level of trial activity involving impaired individuals.

Year-to-Date 2007 Consolidated Results

Net and operating income per diluted share for the nine-month period ended September 30, 2007, increased by 23 percent and 20 percent, respectively, from the prior year period.  Net income for the nine-month period ended September 30, 2007 was $3.538 billion, or $5.36 per basic share and $5.22 per diluted share, compared to $3.019 billion, or $4.37 per basic share and $4.23 per diluted share, for the nine-month period ended September 30, 2006.  Operating income in the current year period was $3.443 billion, or $5.22 per basic share and $5.08 per diluted share, compared to $3.007 billion, or $4.35 per basic share and $4.22 per diluted share, in the prior year period.  The current and prior year periods also included the following items:

	Nine Months Ended September 30,
	2007			2006			2007			2006
($ in millions)	Pre-tax						After-tax
Net favorable prior year reserve development	$	418		$	237		$	268		$	155
Catastrophes, net of reinsurance	(99		)	(82		)	(64		)	(54		)
Timing impact of the transition to the fixed, value- based agent compensation program	160			—			104			—
Redemption of 4.50% convertible junior subordinated notes due 2032	(39		)	—			(25		)	—
Resolution of prior year tax matters	86			91			86			72

In April 2007, the company redeemed its 4.50% convertible junior subordinated notes due in 2032, resulting in a charge to net and operating income.  However, the redemption of these securities is expected to slightly increase the full year earnings per diluted share due to the elimination of their dilutive effect.

4

The GAAP combined ratio in the current year period was 87.1 percent, a 1.5 point improvement from the 88.6 percent reported in the prior year.  The GAAP combined ratios included the following items:

	Nine Months Ended September 30,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(2.6	) pts	(1.5	) pts
Catastrophes, net of reinsurance	0.6		0.5
Timing impact of the transition to the fixed, value-based agent compensation program	(1.0	)	—

Net investment income in the current year period was $2.219 billion after-tax ($2.879 billion pre-tax), a 10 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 due to strong operating cash flows.

Net written premiums increased 3 percent from the prior year period, or 4 percent when adjusted for the sales of Mendota and Afianzadora Insurgentes.

For the first nine months of 2007, operating return on equity was 18.2 percent, compared to 17.4 percent in the prior year period.

Business Insurance Segment Financial Results

For the third quarter 2007, the Business Insurance segment reported operating income of $803 million, compared to $613 million in the prior year quarter.  The current quarter benefited from strong net investment income and solid current accident year underwriting results. The current and prior year quarters also included the following items:

	Three Months Ended September 30,
	2007		2006			2007		2006
($ in millions)	Pre-tax					After-tax
Net favorable / (unfavorable) prior year reserve development	$	165	$	(46	)	$	100	$	(35	)
Catastrophes, net of reinsurance	—		—			—		—
Timing impact of the transition to the fixed, value- based agent compensation program	14		—			9		—

The current quarter benefited from net favorable prior year reserve development primarily due to better than expected frequency and severity trends for recent accident years in the commercial multi-peril, general liability, commercial auto and property product lines of business. The net unfavorable prior year reserve development in the prior year quarter was primarily due to asbestos and environmental reserve strengthening that was partially offset by other favorable prior year reserve development.

5

The GAAP combined ratio was 84.0 percent in the current quarter, an 8.0 point improvement from the 92.0 percent reported in the prior year quarter.  The GAAP combined ratios included the following items:

	Three Months Ended September 30,
Impact on GAAP combined ratios	2007		2006
Net (favorable) / unfavorable prior year reserve development	(5.9	) pts	1.7	pts
Timing impact of the transition to the fixed, value-based agent compensation program	(0.5	)	—

Net written premiums increased 3 percent from the prior year quarter, primarily due to strong growth in new business volume in Select and Commercial Accounts.  Overall, retention rates and renewal price changes were generally consistent with recent quarters.  In addition, catastrophe reinsurance costs were lower due to the timing of purchases and lower rates.

Select Accounts net written premiums increased 2 percent from the prior year quarter, or 4 percent when adjusting for a favorable reduction in the company’s participation in certain residual market auto pools, which is expected to improve underwriting results.  Retention rates were strong, in line with recent quarters, and renewal price changes were positive, consistent with recent quarters.  New business volume increased significantly from the prior year quarter due in part to the recent introduction in 29 states of TravelersExpress^SM, an enhanced quote-to-issue agency platform and multivariate pricing program.

Commercial Accounts net written premiums increased 7 percent from the prior year quarter.  Retention rates continued to be strong, consistent with recent quarters, and renewal price changes were modestly negative and consistent with recent quarters. In addition, reinsurance costs were lower due to the timing of purchases and lower rates.  New business volume increased significantly 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 7 percent from the prior year quarter due primarily to strong business volumes in Construction, Oil & Gas and Agribusiness.  Target Risk Underwriting net written premiums increased 5 percent from the prior year quarter largely due to strong business volumes in Inland Marine and lower catastrophe reinsurance costs in National Property. Specialized Distribution net written premiums decreased 5 percent from the prior year quarter largely due to the non-renewal of certain programs.  National Accounts net written premiums decreased 4 percent from the prior year quarter due in part to the continued competitive marketplace for large accounts.

6

Financial, Professional & International Insurance Segment Financial Results

For the third quarter 2007, the Financial, Professional & International Insurance segment reported operating income of $183 million, compared to $144 million in the prior year quarter.  The current quarter benefited from strong net investment income and solid current accident year underwriting results. The current and prior year quarters also included the following items:

	Three Months Ended September 30,
	2007		2006		2007		2006
($ in millions)	Pre-tax				After-tax
Net favorable prior year reserve development	$	42	$	1	$	29	$	5
Catastrophes, net of reinsurance	—		—		—		—
Timing impact of the transition to the fixed, value-based agent compensation program	2		—		1		—

The current quarter benefited from net favorable prior year reserve development due to better than expected loss development in the property, employers’ liability and professional liability lines of business within International operations.

The GAAP combined ratio was 84.6 percent in the current quarter, a 4.4 point improvement from the 89.0 percent reported in the prior year quarter.  The GAAP combined ratios included the following items:

	Three Months Ended September 30,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(4.8	) pts	(0.2	) pts
Timing impact of the transition to the fixed, value-based agent compensation program	(0.2	)	—

Net written premiums increased 1 percent from the prior year quarter, or 3 percent when adjusted for the sale of Afianzadora Insurgentes.   Strong business volumes in construction surety and Canada as well as favorable rates of exchange were the principal drivers of the growth.

Bond & Financial Products net written premiums decreased 1 percent from the prior year quarter, but increased 2 percent when adjusted for the sale of Afianzadora Insurgentes, largely due to strong construction surety business volumes.  For Bond & Financial Products, retention rates were strong but lower than recent quarters, renewal price changes were slightly positive, an improvement from second quarter 2007, and new business volume decreased from the prior year quarter due in part to more competitive market conditions.  These metrics exclude the surety line of business since surety products are sold on a non-recurring, project-specific basis.

7

International and Lloyd’s net written premiums increased 6 percent from the prior year quarter primarily due to favorable rates of exchange and strong business volumes in Canada.  Retention rates were strong, but declined from recent quarters, renewal price changes were slightly negative, but improved from the most recent quarter, and new business volume was consistent with the prior year quarter.

Personal Insurance Segment Financial Results

For the third quarter 2007, the Personal Insurance segment reported operating income of $276 million, compared to $341 million in the prior year quarter mostly due to net favorable prior year reserve development being lower than in the prior year quarter. The current quarter benefited from strong net investment income and solid current accident year underwriting results. The current and prior year quarters included the following items:

	Three Months Ended September 30,
	2007			2006			2007			2006
($ in millions)	Pre-tax						After-tax
Net favorable prior year reserve development	$	24		$	132		$	16		$	85
Catastrophes, net of reinsurance	(14		)	(15		)	(9		)	(10		)
Timing impact of the transition to the fixed, value- based agent compensation program	13			—			9			—

The current quarter benefited from net favorable prior year reserve development primarily due to better than expected auto loss performance resulting in part from claim initiatives previously instituted.

The GAAP combined ratio was 84.8 percent in the current quarter, a 6.4 point increase from the 78.4 percent reported in the prior year quarter.  The GAAP combined ratios included the following items:

	Three Months Ended September 30,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(1.4	) pts	(7.9	) pts
Catastrophes, net of reinsurance	0.8		0.9
Timing impact of the transition to the fixed, value-based agent compensation program	(0.8	)	—

Personal Insurance net written premiums increased 1 percent from the prior year quarter, or 4 percent when adjusted for the sale of Mendota.  This result was primarily attributable to continued strong retention rates, renewal price increases and lower catastrophe reinsurance costs due to the timing of purchases and lower rates.

8

Automobile net written premiums decreased 4 percent from the prior year quarter, but increased 1 percent when adjusted for Mendota.  Policies in force increased 2 percent from the prior year quarter, adjusted for Mendota.  Retention rates were strong and renewal price changes were positive, both consistent with recent quarters, while new business volume decreased slightly from the prior year quarter due to a more competitive market.

Homeowners and Other net written premiums increased 7 percent and policies in force increased 4 percent from the prior year quarter.  Retention rates and renewal price changes were consistent with recent quarters while new business volume decreased from the prior year quarter due to coastal risk management initiatives.

2007 Annual Guidance

Travelers is increasing its full year 2007 operating income per diluted share guidance to a range of $6.52 to $6.62, compared to the previously announced range of $5.80 to $6.05. This guidance is based on a number of assumptions, including:

•Catastrophe losses of $90 million pre-tax and $57 million after-tax, for the remainder of 2007;

•No additional prior year reserve development, favorable or unfavorable; and

•Weighted average diluted shares of approximately 673 million.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.travelers.com.  The management of Travelers will discuss the contents of this release via Web cast at 9 a.m. Eastern (8 a.m. Central) on Thursday, October 25, 2007.  Prior to the Web cast, a slide presentation pertaining to the quarterly earnings will be available on the company’s Web site.  Following the live event, an audio playback of the Web cast and the slide presentation will be available at the company’s Web site.

To view the slides or to listen to the Web cast or the playback, visit the “Web casts & 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.

9

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

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

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

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

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

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

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

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 (i.e., excluding FAS 115), 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 (i.e. net unrealized investment gains (losses), net of tax), 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.

10

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.

* * * * *

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, net and operating income, investment income, return on equity and combined ratio), and financial condition (including, among others, invested assets and liquidity); the sufficiency of our asbestos and other reserves (including, among others, asbestos claim payment patterns); the cost and availability of reinsurance coverage; catastrophe losses; investment performance; market conditions; 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.

11

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

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

###

12

	Three months ended September 30,						Nine months ended September 30,
($ in millions, except per share amounts, and after-tax)	2007			2006			2007			2006
Operating income	$	1,198		$	1,037		$	3,443		$	3,007
Net realized investment gains	—			6			95			12
Net income	$	1,198		$	1,043		$	3,538		$	3,019
Basic earnings per share
Operating income	$	1.85		$	1.51		$	5.22		$	4.35
Net realized investment gains	—			0.01			0.14			0.02
Net income	$	1.85		$	1.52		$	5.36		$	4.37
Diluted earnings per share
Operating income	$	1.81		$	1.46		$	5.08		$	4.22
Net realized investment gains	—			0.01			0.14			0.01
Net income	$	1.81		$	1.47		$	5.22		$	4.23
Weighted average number of common shares outstanding (basic)	648.4			685.3			658.9			689.7
Weighted average number of common shares outstanding and common stock equivalents (diluted)	661.9			714.6			680.3			718.6
Common shares outstanding at period end	646.1			689.5			646.1			689.5
Common stock dividends declared	$	188.0		$	180.0		$	554.0		$	520.0
Operating income by segment
Business Insurance	$	803		$	613		$	2,286		$	1,919
Financial, Professional & International Insurance	183			144			491			434
Personal Insurance	276			341			818			784
Total segment operating income	1,262			1,098			3,595			3,137
Interest Expense and Other	(64		)	(61		)	(152		)	(130		)
	$	1,198		$	1,037		$	3,443		$	3,007
Operating return on equity	18.6		%	17.4		%	18.2		%	17.4		%
Return on equity	18.6		%	17.6		%	18.6		%	17.5		%

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

13

	Three months ended September 30,						Nine months ended September 30,
($ in millions, pre-tax)	2007			2006			2007			2006
Revenues
Premiums	$	5,416		$	5,260		$	16,038		$	15,432
Net investment income	929			858			2,879			2,607
Fee income	148			150			395			453
Net realized investment gains	—			12			142			16
Other revenues	33			36			72			113
	$	6,526		$	6,316		$	19,526		$	18,621
Revenues
Business Insurance	$	3,663		$	3,505		$	10,900		$	10,453
Financial, Professional & International Insurance	985			963			2,930			2,806
Personal Insurance	1,874			1,836			5,581			5,340
Total segment revenues	6,522			6,304			19,411			18,599
Interest Expense and Other	4			—			(27		)	6
	6,526			6,304			19,384			18,605
Net realized investment gains	—			12			142			16
	$	6,526		$	6,316		$	19,526		$	18,621
Gross written premiums
Business Insurance	$	3,243		$	3,257		$	9,951		$	9,825
Financial, Professional & International Insurance	978			974			3,016			2,952
Personal Insurance	1,876			1,869			5,463			5,330
	$	6,097		$	6,100		$	18,430		$	18,107
Net written premiums
Business Insurance	$	2,726		$	2,644		$	8,541		$	8,203
Financial, Professional & International Insurance	918			912			2,502			2,429
Personal Insurance	1,750			1,728			5,209			5,081
	$	5,394		$	5,284		$	16,252		$	15,713
GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	53.3		%	61.5		%	57.3		%	60.8		%
Underwriting expense ratio	30.7			30.5			30.5			30.1
Combined ratio	84.0		%	92.0		%	87.8		%	90.9		%
Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	48.3		%	54.1		%	51.9		%	53.2		%
Underwriting expense ratio	36.3			34.9			36.4			35.3
Combined ratio	84.6		%	89.0		%	88.3		%	88.5		%
Personal Insurance
Loss and loss adjustment expense ratio	56.8		%	50.2		%	57.8		%	56.9		%
Underwriting expense ratio	28.0			28.2			27.6			28.0
Combined ratio	84.8		%	78.4		%	85.4		%	84.9		%
Total Company (2)
Loss and loss adjustment expense ratio	53.6		%	56.7		%	56.6		%	58.3		%
Underwriting expense ratio	30.8			30.5			30.5			30.3
Combined ratio	84.4		%	87.2		%	87.1		%	88.6		%

(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.

14

	Three months ended September 30,						Nine months ended September 30,
($ in millions; after-tax except as noted)	2007			2006			2007			2006
Reconciliation of underwriting gain to net income
Pre-tax underwriting gain	$	811		$	642		$	1,962		$	1,652
Tax expense on underwriting results	(291		)	(235		)	(652		)	(597		)
Underwriting gain	520			407			1,310			1,055
Net investment income	724			668			2,219			2,011
Other, including interest expense	(46		)	(38		)	(86		)	(59		)
Consolidated operating income	1,198			1,037			3,443			3,007
Net realized investment gains	—			6			95			12
Net income	$	1,198		$	1,043		$	3,538		$	3,019

	As of
	September 30,		December 31,		September 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	$	21,871	$	20,491	$	20,107
Goodwill and other intangibles, net of tax	4,100		4,062		4,093
Adjusted common shareholders’ equity	25,971		24,553		24,200
Net unrealized investment gains, net of tax	221		453		411
Common shareholders’ equity	$	26,192	$	25,006	$	24,611
Common shares oustanding	646.1		678.3		689.5
Tangible book value per share	$	33.85	$	30.21	$	29.16
Adjusted book value per share	40.20		36.20		35.10
Book value per share	$	40.54	$	36.86	$	35.69

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

###

Contacts
Media:	Institutional Investors:	Individual Investors:
Shane Boyd	Michael Connelly	Marc Parr
651.310.3846, or	860.277.1507, or	860.277.0779
Jennifer Wislocki	Andrew Hersom
860.277.7458	860.277.0902

15

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - Third 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			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	3,019		$	3,538
Net income per share:
Basic	$	1.45		$	1.40		$	1.52		$	1.75		$	1.62		$	1.90		$	1.85		$	4.37		$	5.36
Diluted	$	1.41		$	1.36		$	1.47		$	1.68		$	1.56		$	1.86		$	1.81		$	4.23		$	5.22
Operating income	$	1,011		$	959		$	1,037		$	1,193		$	1,078		$	1,167		$	1,198		$	3,007		$	3,443
Operating income per share:
Basic	$	1.46		$	1.39		$	1.51		$	1.75		$	1.61		$	1.77		$	1.85		$	4.35		$	5.22
Diluted	$	1.41		$	1.34		$	1.46		$	1.69		$	1.55		$	1.73		$	1.81		$	4.22		$	5.08
Return on equity	17.9		%	17.0		%	17.6		%	19.1		%	17.3		%	19.9		%	18.6		%	17.5		%	18.6		%
Operating return on equity	18.1		%	16.6		%	17.4		%	19.6		%	17.5		%	18.6		%	18.6		%	17.4		%	18.2		%
Total assets, at period end (1)	$	114,041		$	114,681		$	116,407		$	115,292		$	115,688		$	115,361		$	115,644		$	116,407		$	115,644
Total equity, at period end	$	22,837		$	23,052		$	24,747		$	25,135		$	25,357		$	25,322		$	26,307		$	24,747		$	26,307
Book value per share, at period end	$	32.59		$	33.14		$	35.69		$	36.86		$	37.93		$	38.36		$	40.54		$	35.69		$	40.54
Less: Net unrealized investment gains (losses), net of tax	(0.09		)	(0.69		)	0.59			0.66			0.67			(0.40		)	0.34			0.59			0.34
Adjusted book value per share, at period end	$	32.68		$	33.83		$	35.10		$	36.20		$	37.26		$	38.76		$	40.20		$	35.10		$	40.20
Weighted average number of common shares outstanding (basic)	692.2			691.8			685.3			679.2			669.9			658.6			648.4			689.7			658.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)	720.8			720.4			714.6			711.0			701.2			676.0			661.9			718.6			680.3
Common shares outstanding at period end	696.2			691.4			689.5			678.3			665.3			657.0			646.1			689.5			646.1
Common stock dividends declared	$	160		$	180		$	180		$	176		$	174		$	192		$	188		$	520		$	554
Common stock repurchased:
Under repurchase program (2)
Shares	—			5.6			2.8			14.4			13.9			11.4			11.7			8.4			37.0
Cost	$	—		$	250		$	121		$	750		$	725		$	622		$	600		$	371		$	1,947
Other
Shares	0.5			0.1			—			0.7			0.6			0.7			0.2			0.6			1.5
Cost	$	22		$	3		$	5		$	31		$	31		$	36		$	10		$	30		$	77

(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		3Q		3Q		3Q
	2006			2006		2006		2006			2007		2007		2007		2006		2007
Net income
Operating income	$	1,011		$	959	$	1,037	$	1,193		$	1,078	$	1,167	$	1,198	$	3,007	$	3,443
Net realized investment gains (losses)	(5		)	11		6		(4		)	8		87		—		12		95
Net income	$	1,006		$	970	$	1,043	$	1,189		$	1,086	$	1,254	$	1,198	$	3,019	$	3,538
Basic earnings per share
Operating income	$	1.46		$	1.39	$	1.51	$	1.75		$	1.61	$	1.77	$	1.85	$	4.35	$	5.22
Net realized investment gains (losses)	(0.01		)	0.01		0.01		—			0.01		0.13		—		0.02		0.14
Net income	$	1.45		$	1.40	$	1.52	$	1.75		$	1.62	$	1.90	$	1.85	$	4.37	$	5.36
Diluted earnings per share
Operating income	$	1.41		$	1.34	$	1.46	$	1.69		$	1.55	$	1.73	$	1.81	$	4.22	$	5.08
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	$	1.81	$	4.23	$	5.22

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Basic
Net income, as reported	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	3,019		$	3,538
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(2		)	(1		)	(1		)	(1		)	(4		)	(3		)
Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085		$	1,253		$	1,197		$	3,015		$	3,535
Diluted
Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085		$	1,253		$	1,197		$	3,015		$	3,535
Effect of dilutive securities:
Convertible preferred stock	1			1			1			2			1			1			1			4			3
Zero coupon convertible notes	1			1			1			1			1			1			1			3			3
Convertible junior subordinated notes	7			6			7			6			7			1			—			20			8
Net income available to common shareholders - diluted	$	1,014		$	977		$	1,051		$	1,196		$	1,094		$	1,256		$	1,199		$	3,042		$	3,549
Common Shares
Basic
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9			658.6			648.4			689.7			658.9
Diluted
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9			658.6			648.4			689.7			658.9
Weighted average effects of dilutive securities:
Stock options and other incentive plans	5.9			6.0			6.8			9.5			9.1			8.9			8.3			6.3			9.5
Convertible preferred stock	3.6			3.5			3.4			3.2			3.1			3.0			2.8			3.5			2.9
Zero coupon convertible notes	2.4			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			6.6
Diluted weighted average shares outstanding	720.8			720.4			714.6			711.0			701.2			676.0			661.9			718.6			680.3

(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			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Revenues
Premiums	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295		$	5,327		$	5,416		$	15,432		$	16,038
Net investment income	875			874			858			910			960			990			929			2,607			2,879
Fee income	150			153			150			138			120			127			148			453			395
Net realized investment gains (losses)	(6		)	10			12			(5		)	14			128			—			16			142
Other revenues	40			37			36			98			38			1			33			113			72
Total revenues	6,050			6,255			6,316			6,469			6,427			6,573			6,526			18,621			19,526
Claims and expenses
Claims and claim adjustment expenses	3,042			3,153			3,047			3,002			3,189			3,096			2,985			9,242			9,270
Amortization of deferred acquisition costs	800			814			858			867			869			915			956			2,472			2,740
General and administrative expenses	794			866			869			929			833			836			817			2,529			2,486
Interest expense	76			78			88			82			76			85			94			242			255
Total claims and expenses	4,712			4,911			4,862			4,880			4,967			4,932			4,852			14,485			14,751
Income before income taxes	1,338			1,344			1,454			1,589			1,460			1,641			1,674			4,136			4,775
Income tax expense	332			374			411			400			374			387			476			1,117			1,237
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	3,019		$	3,538
Other statistics:
Effective tax rate on net investment income	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%	23.4		%	22.2		%	22.9		%	22.9		%
Net investment income (after-tax)	$	670		$	673		$	668		$	701		$	737		$	758		$	724		$	2,011		$	2,219
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45		$	40		$	14		$	82		$	99
After-tax	$	—		$	44		$	10		$	13		$	29		$	26		$	9		$	54		$	64

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			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Underwriting gain	$	337		$	311		$	407		$	487		$	341		$	449		$	520		$	1,055		$	1,310
Net investment income	670			673			668			701			737			758			724			2,011			2,219
Other, including interest expense	4			(25		)	(38		)	5			—			(40		)	(46		)	(59		)	(86		)
Operating income	1,011			959			1,037			1,193			1,078			1,167			1,198			3,007			3,443
Net realized investment gains (losses)	(5		)	11			6			(4		)	8			87			—			12			95
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	3,019		$	3,538
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	58.9		%	59.5		%	56.7		%	55.1		%	59.2		%	57.1		%	53.6		%	58.3		%	56.6		%
Underwriting expense ratio	30.0		%	30.3		%	30.5		%	31.6		%	30.0		%	30.7		%	30.8		%	30.3		%	30.5		%
Combined ratio	88.9		%	89.8		%	87.2		%	86.7		%	89.2		%	87.8		%	84.4		%	88.6		%	87.1		%
Impact of catastrophes on combined ratio	0.0		%	1.3		%	0.3		%	0.4		%	0.9		%	0.8		%	0.3		%	0.5		%	0.6		%
Impact of prior year reserve development on combined ratio	-1.0		%	-2.0		%	-1.7		%	-3.0		%	-1.2		%	-2.4		%	-4.3		%	-1.5		%	-2.6		%

(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		3Q		3Q		3Q
	2006		2006		2006		2006		2007		2007		2007		2006		2007
Billing and policy fees	$	28	$	26	$	28	$	28	$	29	$	25	$	26	$	82	$	80
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47	$	48	$	71	$	217	$	166
Underwriting expenses	58		87		91		79		73		79		77		236		229
Total fee income	$	150	$	153	$	150	$	138	$	120	$	127	$	148	$	453	$	395

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		3Q		3Q		3Q
	2006		2006		2006		2006		2007		2007		2007		2006		2007
Revenues
Premiums	$	4,991	$	5,181	$	5,260	$	5,328	$	5,295	$	5,327	$	5,416	$	15,432	$	16,038
Net investment income	875		874		858		910		960		990		929		2,607		2,879
Fee income	150		153		150		138		120		127		148		453		395
Other revenues	40		37		36		98		38		1		33		113		72
Total revenues	6,056		6,245		6,304		6,474		6,413		6,445		6,526		18,605		19,384
Claims and expenses
Claims and claim adjustment expenses	3,042		3,153		3,047		3,002		3,189		3,096		2,985		9,242		9,270
Amortization of deferred acquisition costs	800		814		858		867		869		915		956		2,472		2,740
General and administrative expenses	794		866		869		929		833		836		817		2,529		2,486
Interest expense	76		78		88		82		76		85		94		242		255
Total claims and expenses	4,712		4,911		4,862		4,880		4,967		4,932		4,852		14,485		14,751
Operating income before income taxes	1,344		1,334		1,442		1,594		1,446		1,513		1,674		4,120		4,633
Income tax expense	333		375		405		401		368		346		476		1,113		1,190
Operating income	$	1,011	$	959	$	1,037	$	1,193	$	1,078	$	1,167	$	1,198	$	3,007	$	3,443

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)

	1Q 2006		2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007		3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Statutory underwriting
Gross written premiums	$	5,810	$	6,197		$	6,100		$	5,932		$	6,071		$	6,262	$	6,097		$	18,107		$	18,430
Net written premiums	$	4,774	$	5,655		$	5,284		$	5,437		$	5,144		$	5,714	$	5,394		$	15,713		$	16,252
Net earned premiums	$	4,991	$	5,181		$	5,260		$	5,328		$	5,295		$	5,327	$	5,416		$	15,432		$	16,038
Losses and loss adjustment expenses	2,951		3,095			2,987			2,939			3,128			3,059		2,921			9,033			9,108
Underwriting expenses	1,493		1,609			1,524			1,644			1,670			1,732		1,694			4,626			5,096
Statutory underwriting gain	547		477			749			745			497			536		801			1,773			1,834
Policyholder dividends	9		6			5			6			7			6		11			20			24
Statutory underwriting gain after policyholder dividends	$	538	$	471		$	744		$	739		$	490		$	530	$	790		$	1,753		$	1,810
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	43,256	$	43,116		$	43,084		$	42,948		$	42,942		$	43,029	$	43,000		$	43,084		$	43,000
Increase (decrease) in reserves (1)	$	65	$	(140	)	$	(32	)	$	(136	)	$	(6	)	$	87	$	(29	)	$	(107	)	$	52
Statutory surplus	$	18,522	$	19,037		$	19,961		$	20,945		$	21,204		$	21,843	$	22,221		$	19,961		$	22,221
Net written premiums/surplus (2)	1.10:1		1.09:1			1.05:1			1.01:1			1.01:1			0.99:1		0.98:1			1.05:1			0.98:1

(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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Written premiums
Gross	$	5,810		$	6,197		$	6,100		$	5,932		$	6,071		$	6,262		$	6,097		$	18,107		$	18,430
Ceded	(1,036		)	(542		)	(816		)	(495		)	(927		)	(548		)	(703		)	(2,394		)	(2,178		)
Net	$	4,774		$	5,655		$	5,284		$	5,437		$	5,144		$	5,714		$	5,394		$	15,713		$	16,252
Earned premiums
Gross	$	5,733		$	5,899		$	6,006		$	6,120		$	6,001		$	6,031		$	6,073		$	17,638		$	18,105
Ceded	(742		)	(718		)	(746		)	(792		)	(706		)	(704		)	(657		)	(2,206		)	(2,067		)
Net	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295		$	5,327		$	5,416		$	15,432		$	16,038

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)

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		YTD 3Q 2006		YTD 3Q 2007
Revenues
Premiums	$	2,643	$	2,715	$	2,737	$	2,781	$	2,763	$	2,802	$	2,850	$	8,095	$	8,415
Net investment income	636		635		610		657		694		717		664		1,881		2,075
Fee income	150		153		150		138		120		127		148		453		395
Other revenues	7		9		8		20		4		10		1		24		15
Total revenues	3,436		3,512		3,505		3,596		3,581		3,656		3,663		10,453		10,900
Claims and expenses
Claims and claim adjustment expenses	1,706		1,695		1,746		1,706		1,741		1,664		1,594		5,147		4,999
Amortization of deferred acquisition costs	376		374		397		400		403		435		451		1,147		1,289
General and administrative expenses	474		533		531		566		509		503		504		1,538		1,516
Interest expense	1		3		—		1		—		—		1		4		1
Total claims and expenses	2,557		2,605		2,674		2,673		2,653		2,602		2,550		7,836		7,805
Operating income before federal income taxes	879		907		831		923		928		1,054		1,113		2,617		3,095
Income taxes	228		252		218		220		250		249		310		698		809
Operating income	$	651	$	655	$	613	$	703	$	678	$	805	$	803	$	1,919	$	2,286

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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Underwriting gain	$	155		$	159		$	131		$	181		$	140		$	249		$	284		$	445		$	673
Net investment income	492			491			478			507			534			550			518			1,461			1,602
Other	4			5			4			15			4			6			1			13			11
Operating income	$	651		$	655		$	613		$	703		$	678		$	805		$	803		$	1,919		$	2,286
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.9		%	60.0		%	61.5		%	59.1		%	61.2		%	57.6		%	53.3		%	60.8		%	57.3		%
Underwriting expense ratio	29.8		%	30.1		%	30.5		%	31.8		%	30.3		%	30.5		%	30.7		%	30.1		%	30.5		%
Combined ratio	90.7		%	90.1		%	92.0		%	90.9		%	91.5		%	88.1		%	84.0		%	90.9		%	87.8		%
Impact of catastrophes on combined ratio	0.0		%	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		%	-5.9		%	-0.1		%	-3.0		%

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

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		YTD 3Q 2006		YTD 3Q 2007
Billing and policy fees	$	3	$	3	$	3	$	3	$	3	$	3	$	3	$	9	$	9
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47	$	48	$	71	$	217	$	166
Underwriting expenses	58		87		91		79		73		79		77		236		229
Total fee income	$	150	$	153	$	150	$	138	$	120	$	127	$	148	$	453	$	395

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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Statutory underwriting
Gross written premiums	$	3,254		$	3,314		$	3,257		$	3,222		$	3,387		$	3,321		$	3,243		$	9,825		$	9,951
Net written premiums	$	2,687		$	2,872		$	2,644		$	2,843		$	2,880		$	2,935		$	2,726		$	8,203		$	8,541
Net earned premiums	$	2,643		$	2,715		$	2,737		$	2,781		$	2,763		$	2,802		$	2,850		$	8,095		$	8,415
Losses and loss adjustment expenses	1,621			1,640			1,686			1,648			1,684			1,628			1,530			4,947			4,842
Underwriting expenses	756			813			761			857			866			882			870			2,330			2,618
Statutory underwriting gain	266			262			290			276			213			292			450			818			955
Policyholder dividends	5			3			2			3			3			3			5			10			11
Statutory underwriting gain after policyholder dividends	$	261		$	259		$	288		$	273		$	210		$	289		$	445		$	808		$	944
Other statistics
Effective tax rate on net investment income	22.8		%	22.6		%	21.6		%	22.8		%	23.1		%	23.3		%	22.0		%	22.3		%	22.8		%
Net investment income (after-tax)	$	492		$	491		$	478		$	507		$	534		$	550		$	518		$	1,461		$	1,602
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)

	1Q 2006		2Q 2006		3Q 2006		4Q 2006			1Q 2007		2Q 2007		3Q 2007		YTD 3Q 2006		YTD 3Q 2007
Net written premiums by market
Select Accounts	$	679	$	705	$	625	$	654		$	701	$	731	$	637	$	2,009	$	2,069
Commercial Accounts	575		548		575		678			641		581		615		1,698		1,837
National Accounts	268		298		254		315			255		286		245		820		786
Industry-Focused Underwriting	521		560		548		567			582		580		584		1,629		1,746
Target Risk Underwriting	398		463		377		391			417		475		394		1,238		1,286
Specialized Distribution	245		280		255		242			252		276		243		780		771
Total core	2,686		2,854		2,634		2,847			2,848		2,929		2,718		8,174		8,495
Business Insurance other	1		18		10		(4		)	32		6		8		29		46
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880	$	2,935	$	2,726	$	8,203	$	8,541
Net written premiums by product line
Commercial multi-peril	$	804	$	776	$	708	$	795		$	805	$	778	$	713	$	2,288	$	2,296
Workers’ compensation	540		529		474		592			614		553		538		1,543		1,705
Commercial automobile	467		522		509		515			506		526		493		1,498		1,525
Property	467		521		469		482			494		549		476		1,457		1,519
General liability	407		512		476		462			434		527		501		1,395		1,462
Other	2		12		8		(3		)	27		2		5		22		34
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880	$	2,935	$	2,726	$	8,203	$	8,541
National accounts
Additions to claim volume under administration (1)	$	890	$	742	$	650	$	722		$	836	$	640	$	554	$	2,282	$	2,030
Written fees	$	144	$	134	$	121	$	113		$	123	$	104	$	100	$	399	$	327

(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)

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		YTD 3Q 2006		YTD 3Q 2007
Revenues
Premiums	$	788	$	839	$	850	$	844	$	844	$	844	$	854	$	2,477	$	2,542
Net investment income	103		102		108		116		121		125		126		313		372
Other revenues	5		6		5		10		5		6		5		16		16
Total revenues	896		947		963		970		970		975		985		2,806		2,930
Claims and expenses
Claims and claim adjustment expenses	421		445		462		466		451		464		419		1,328		1,334
Amortization of deferred acquisition costs	150		159		164		165		163		160		166		473		489
General and administrative expenses	126		142		134		134		145		146		144		402		435
Total claims and expenses	697		746		760		765		759		770		729		2,203		2,258
Operating income before federal income taxes	199		201		203		205		211		205		256		603		672
Income taxes	58		52		59		30		55		53		73		169		181
Operating income	$	141	$	149	$	144	$	175	$	156	$	152	$	183	$	434	$	491

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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Underwriting gain	$	60		$	68		$	59		$	79		$	62		$	53		$	84		$	187		$	199
Net investment income	77			77			82			89			91			95			95			236			281
Other	4			4			3			7			3			4			4			11			11
Operating income	$	141		$	149		$	144		$	175		$	156		$	152		$	183		$	434		$	491
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0		%	52.6		%	54.1		%	54.9		%	53.0		%	54.7		%	48.3		%	53.2		%	51.9		%
Underwriting expense ratio	35.0		%	35.8		%	34.9		%	35.5		%	36.4		%	36.3		%	36.3		%	35.3		%	36.4		%
Combined ratio	88.0		%	88.4		%	89.0		%	90.4		%	89.4		%	91.0		%	84.6		%	88.5		%	88.3		%
Impact of catastrophes on combined ratio	0.0		%	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		%	-4.8		%	-0.4		%	-2.2		%

(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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Statutory underwriting
Gross written premiums	$	935		$	1,043		$	974		$	1,029		$	975		$	1,063		$	978		$	2,952		$	3,016
Net written premiums	$	515		$	1,002		$	912		$	964		$	600		$	984		$	918		$	2,429		$	2,502
Net earned premiums	$	788		$	839		$	850		$	844		$	844		$	844		$	854		$	2,477		$	2,542
Losses and loss adjustment expenses	415			442			461			462			447			463			419			1,318			1,329
Underwriting expenses	292			299			273			287			322			314			302			864			938
Statutory underwriting gain	81			98			116			95			75			67			133			295			275
Policyholder dividends	4			3			3			3			4			3			6			10			13
Statutory underwriting gain after policyholder dividends	$	77		$	95		$	113		$	92		$	71		$	64		$	127		$	285		$	262
Other statistics
Effective tax rate on net investment income	24.7		%	24.3		%	24.2		%	24.4		%	24.6		%	24.5		%	24.0		%	24.4		%	24.3		%
Net investment income (after-tax)	$	77		$	77		$	82		$	89		$	91		$	95		$	95		$	236		$	281
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)

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		YTD 3Q 2006		YTD 3Q 2007
Net written premiums by market
Bond & Financial Products:
Bond & Financial Products excluding Afianzadora Insurgentes	$	270	$	645	$	643	$	619	$	292	$	652	$	655	$	1,558	$	1,599
Afianzadora Insurgentes (1)	23		15		21		19		19		6		—		59		25
Total Bond & Financial Products	293		660		664		638		311		658		655		1,617		1,624
International and Lloyd’s	222		342		248		326		289		326		263		812		878
Total	$	515	$	1,002	$	912	$	964	$	600	$	984	$	918	$	2,429	$	2,502
Net written premiums by product line
General liability	$	110	$	282	$	297	$	317	$	96	$	275	$	284	$	689	$	655
Fidelity & surety	152		342		338		293		180		344		341		832		865
International	222		342		248		326		289		326		263		812		878
Other	31		36		29		28		35		39		30		96		104
Total	$	515	$	1,002	$	912	$	964	$	600	$	984	$	918	$	2,429	$	2,502

(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)

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		YTD 3Q 2006		YTD 3Q 2007
Revenues
Premiums	$	1,560	$	1,627	$	1,673	$	1,703	$	1,688	$	1,681	$	1,712	$	4,860	$	5,081
Net investment income	134		137		140		137		145		148		139		411		432
Other revenues	24		22		23		25		24		21		23		69		68
Total revenues	1,718		1,786		1,836		1,865		1,857		1,850		1,874		5,340		5,581
Claims and expenses
Claims and claim adjustment expenses	915		1,013		839		830		997		968		972		2,767		2,937
Amortization of deferred acquisition costs	274		281		297		302		303		320		339		852		962
General and administrative expenses	183		197		200		224		170		177		162		580		509
Total claims and expenses	1,372		1,491		1,336		1,356		1,470		1,465		1,473		4,199		4,408
Operating income before federal income taxes	346		295		500		509		387		385		401		1,141		1,173
Income taxes	106		92		159		161		121		109		125		357		355
Operating income	$	240	$	203	$	341	$	348	$	266	$	276	$	276	$	784	$	818

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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Underwriting gain	$	122		$	84		$	217		$	226		$	139		$	147		$	152		$	423		$	438
Net investment income	102			105			108			106			112			113			111			315			336
Other	16			14			16			16			15			16			13			46			44
Operating income	$	240		$	203		$	341		$	348		$	266		$	276		$	276		$	784		$	818
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	58.7		%	62.2		%	50.2		%	48.7		%	59.0		%	57.6		%	56.8		%	56.9		%	57.8		%
Underwriting expense ratio	27.7		%	27.9		%	28.2		%	29.4		%	26.5		%	28.3		%	28.0		%	28.0		%	27.6		%
Combined ratio	86.4		%	90.1		%	78.4		%	78.1		%	85.5		%	85.9		%	84.8		%	84.9		%	85.4		%
Impact of catastrophes on combined ratio	0.0		%	4.1		%	0.9		%	1.3		%	2.7		%	2.4		%	0.8		%	1.7		%	1.9		%
Impact of prior year reserve development on combined ratio	-1.9		%	-3.6		%	-7.9		%	-8.2		%	-2.1		%	-3.0		%	-1.4		%	-4.5		%	-2.1		%

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

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		YTD 3Q 2006		YTD 3Q 2007
Billing and policy fees	$	25	$	23	$	25	$	25	$	26	$	22	$	23	$	73	$	71

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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Statutory underwriting
Gross written premiums	$	1,621		$	1,840		$	1,869		$	1,681		$	1,709		$	1,878		$	1,876		$	5,330		$	5,463
Net written premiums	$	1,572		$	1,781		$	1,728		$	1,630		$	1,664		$	1,795		$	1,750		$	5,081		$	5,209
Net earned premiums	$	1,560		$	1,627		$	1,673		$	1,703		$	1,688		$	1,681		$	1,712		$	4,860		$	5,081
Losses and loss adjustment expenses	915			1,013			840			829			997			968			972			2,768			2,937
Underwriting expenses	445			497			490			500			482			536			522			1,432			1,540
Statutory underwriting gain	$	200		$	117		$	343		$	374		$	209		$	177		$	218		$	660		$	604
Other statistics
Effective tax rate on net investment income	23.6		%	23.5		%	23.0		%	22.6		%	22.8		%	22.8		%	21.6		%	23.4		%	22.4		%
Net investment income (after-tax)	$	102		$	105		$	108		$	106		$	112		$	113		$	111		$	315		$	336
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45		$	40		$	14		$	82		$	99
After-tax	$	—		$	44		$	10		$	13		$	29		$	26		$	9		$	54		$	64
Policies in force (in thousands) (1)
Automobile	2,309			2,378			2,431			2,450			2,456			2,464			2,473			2,431			2,473
Homeowners and other	4,270			4,387			4,493			4,544			4,579			4,631			4,666			4,493			4,666

(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			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	942		$	960		$	943		$	886		$	975		$	927		$	914		$	2,845		$	2,816
Net written premiums:
Excluding Mendota	$	883		$	909		$	889		$	836		$	916		$	915		$	901		$	2,681		$	2,732
Mendota (1)	49			42			45			39			49			—			—			136			49
Total	$	932		$	951		$	934		$	875		$	965		$	915		$	901		$	2,817		$	2,781
Net earned premiums	$	872		$	910		$	939		$	951		$	939		$	912		$	920		$	2,721		$	2,771
Losses and loss adjustment expenses	590			626			598			543			595			593			599			1,814			1,787
Underwriting expenses	239			259			240			252			254			262			253			738			769
Statutory underwriting gain	$	43		$	25		$	101		$	156		$	90		$	57		$	68		$	169		$	215
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	67.7		%	68.7		%	63.7		%	57.1		%	63.3		%	65.1		%	65.1		%	66.7		%	64.5		%
Underwriting expense ratio	25.3		%	26.8		%	26.0		%	26.8		%	24.1		%	26.6		%	26.3		%	26.0		%	25.7		%
Combined ratio	93.0		%	95.5		%	89.7		%	83.9		%	87.4		%	91.7		%	91.4		%	92.7		%	90.2		%
Impact of catastrophes on combined ratio	0.0		%	0.4		%	0.0		%	0.0		%	0.1		%	0.4		%	0.0		%	0.1		%	0.2		%
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			2,473
Change from prior year quarter (3)	5.4		%	8.3		%	9.8		%	8.9		%	6.3		%	3.6		%	1.7		%
Change from prior quarter (3)	2.6		%	3.0		%	2.2		%	0.8		%	0.2		%	0.3		%	0.4		%

(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		3Q		3Q		3Q
	2006		2006		2006		2006		2007		2007		2007		2006		2007
Billing and policy fees	$	16	$	15	$	16	$	16	$	17	$	13	$	14	$	47	$	44

(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			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	679		$	880		$	926		$	795		$	734		$	951		$	962		$	2,485		$	2,647
Net written premiums:
Excluding Mendota	$	637		$	826		$	791		$	753		$	699		$	880		$	849		$	2,254		$	2,428
Mendota (1)	3			4			3			2			—			—			—			10			—
Total	$	640		$	830		$	794		$	755		$	699		$	880		$	849		$	2,264		$	2,428
Net earned premiums	$	688		$	717		$	734		$	752		$	749		$	769		$	792		$	2,139		$	2,310
Losses and loss adjustment expenses	325			387			242			286			402			375			373			954			1,150
Underwriting expenses	206			238			250			248			228			274			269			694			771
Statutory underwriting gain	$	157		$	92		$	242		$	218		$	119		$	120		$	150		$	491		$	389
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	47.3		%	54.0		%	33.0		%	38.0		%	53.7		%	48.7		%	47.1		%	44.6		%	49.8		%
Underwriting expense ratio	30.8		%	29.3		%	31.1		%	32.8		%	29.4		%	30.2		%	30.0		%	30.4		%	29.9		%
Combined ratio	78.1		%	83.3		%	64.1		%	70.8		%	83.1		%	78.9		%	77.1		%	75.0		%	79.7		%
Impact of catastrophes on combined ratio	0.0		%	8.9		%	2.1		%	2.8		%	5.9		%	4.6		%	1.8		%	3.7		%	4.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	64		$	15		$	21		$	44		$	36		$	14		$	79		$	94
After-tax	$	—		$	42		$	10		$	13		$	28		$	24		$	9		$	52		$	61
Policies in force (in thousands) (3)	4,270			4,387			4,493			4,544			4,579			4,631			4,666
Change from prior year quarter (3)	6.4		%	7.9		%	8.9		%	8.3		%	7.2		%	5.6		%	3.9		%
Change from prior quarter (3)	1.7		%	2.7		%	2.4		%	1.1		%	0.8		%	1.1		%	0.8		%

(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		3Q		3Q		3Q
	2006		2006		2006		2006		2007		2007		2007		2006		2007
Billing and policy fees	$	9	$	9	$	9	$	8	$	9	$	9	$	9	$	27	$	27

(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			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Revenues
Net investment income	$	2		$	—		$	—		$	—		$	—		$	—		$	—		$	2		$	—
Other revenues (1)	4			—			—			43			5			(36		)	4			4			(27		)
Total revenues	6			—			—			43			5			(36		)	4			6			(27		)
Claims and expenses
Interest expense	75			75			88			81			76			85			93			238			254
General and administrative expenses	11			(6		)	4			5			9			10			7			9			26
Total claims and expenses	86			69			92			86			85			95			100			247			280
Operating loss before federal income tax benefit	(80		)	(69		)	(92		)	(43		)	(80		)	(131		)	(96		)	(241		)	(307		)
Income taxes	(59		)	(21		)	(31		)	(10		)	(58		)	(65		)	(32		)	(111		)	(155		)
Operating loss	$	(21	)	$	(48	)	$	(61	)	$	(33	)	$	(22	)	$	(66	)	$	(64	)	$	(130	)	$	(152	)

(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
(in millions)

	September 30,		December 31,
	2007 (1)		2006
Assets
Fixed maturities, available for sale at fair value (including $1,893 and $1,674 subject to securities lending) (amortized cost $64,048 and $62,244)	$	64,203	$	62,666
Equity securities, at fair value (cost $418 and $436)	446		473
Real estate	862		793
Short-term securities	4,876		4,938
Other investments	3,372		3,398
Total investments	73,759		72,268
Cash	391		459
Investment income accrued	848		827
Premiums receivable	6,273		6,181
Reinsurance recoverables	16,119		17,820
Ceded unearned premiums	1,376		1,243
Deferred acquisition costs	1,838		1,615
Deferred tax asset	1,376		1,536
Contractholder receivables (2)	6,758		6,554
Goodwill	3,366		3,438
Other intangible assets	848		764
Other assets	2,692		2,587
Total assets	$	115,644	$	115,292

	September 30,			December 31,
	2007 (1)			2006
Liabilities
Claims and claim adjustment expense reserves	$	58,036		$	59,288
Unearned premium reserves	11,487			11,228
Contractholder payables (2)	6,758			6,554
Payables for reinsurance premiums	877			685
Debt	6,243			5,760
Other liabilities	5,936			6,642
Total liabilities	89,337			90,157
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.4 shares issued and outstanding at both dates)	115			129
Common stock (1,750.0 shares authorized; 646.1 and 678.3 shares issued and outstanding)	18,916			18,530
Retained earnings	10,235			7,253
Accumulated other changes in equity from nonowner sources	295			452
Treasury stock, at cost (63.7 and 25.2 shares)	(3,254		)	(1,229		)
Total shareholders’ equity	26,307			25,135
Total liabilities and shareholders’ equity	$	115,644		$	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)

	September 30,		Pre-tax Book		December 31,		Pre-tax Book
	2007		Yield (1)		2006		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	26,219	5.18	%	$	27,035	5.09	%
Tax-exempt fixed maturities	37,984		4.18	%	35,631		4.17	%
Total fixed maturities	64,203		4.59	%	62,666		4.57	%
Non-redeemable preferred stocks	306		6.16	%	358		6.38	%
Common stocks	140				115
Total equity securities	446				473
Real estate	862				793
Short-term securities	4,876		5.36	%	4,938		5.45	%
Private equities	1,397				1,592
Arbitrage funds	954				984
Real estate joint ventures & other	940				743
Mortgage loans	51		7.63	%	53		7.22	%
Trading securities	30				26
Total other investments	3,372				3,398
Total investments	$	73,759			$	72,268
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	221			$	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)

	September 30,		December 31,
	2007		2006
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,261	$	2,718
Obligations of states and political subdivisions	38,263		35,907
Debt securities issued by foreign governments	1,534		1,552
Mortgage-backed securities - principally obligations of U.S. Government agencies	7,232		7,589
Corporates (including redeemable preferreds)	14,913		14,900
Total fixed maturities	$	64,203	$	62,666

Fixed Maturities

Quality Characteristics (1)

	September 30, 2007
	Amount		% of Total
Quality Ratings
Aaa	$	43,481	67.7	%
Aa	11,792		18.4
A	4,061		6.3
Baa	3,183		5.0
Total investment grade	62,517		97.4
Ba	791		1.2
B	714		1.1
Caa and lower	181		0.3
Total below investment grade	1,686		2.6
Total fixed maturities	$	64,203	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	4.0

(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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Gross investment income
Fixed maturities	$	667		$	677		$	691		$	703		$	709		$	712		$	731		$	2,035		$	2,152
Short-term securities	60			60			81			84			73			64			76			201			213
Other	163			159			100			135			193			229			137			422			559
	890			896			872			922			975			1,005			944			2,658			2,924
Investment expenses	15			22			14			12			15			15			15			51			45
Net investment income, pre-tax	875			874			858			910			960			990			929			2,607			2,879
Income taxes	205			201			190			209			223			232			205			596			660
Net investment income, after-tax	$	670		$	673		$	668		$	701		$	737		$	758		$	724		$	2,011		$	2,219
Effective tax rate	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%	23.4		%	22.2		%	22.9		%	22.9		%
Average invested assets (1)	$	69,701		$	70,491		$	72,050		$	72,808		$	72,737		$	73,063		$	74,451		$	70,764		$	73,431
Average yield pre-tax (1)	5.0		%	5.0		%	4.8		%	5.0		%	5.3		%	5.4		%	5.0		%	4.9		%	5.2		%
Average yield after-tax	3.8		%	3.8		%	3.7		%	3.9		%	4.1		%	4.2		%	3.9		%	3.8		%	4.0		%

(1) Excludes net unrealized investment gains (losses), net of tax, 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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Net realized investment gains (losses)
Fixed maturities	$	—		$	(29	)	$	(6	)	$	2		$	9		$	13		$	(7	)	$	(35	)	$	15
Equity securities	14			2			7			(2		)	2			3			(1		)	23			4
Other (1)	(20		)	37			11			(5		)	3			112			8			28			123
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14			128			—			16			142
Related taxes	(1		)	(1		)	6			(1		)	6			41			—			4			47
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8		$	87		$	—		$	12		$	95
Gross investment gains (2)	$	125		$	101		$	86		$	80		$	60		$	160		$	53		$	312		$	273
Gross investment losses before impairments (2)	(121		)	(88		)	(61		)	(63		)	(37		)	(23		)	(39		)	(270		)	(99		)
Impairments	(10		)	(3		)	(13		)	(22		)	(9		)	(9		)	(14		)	(26		)	(32		)
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14			128			—			16			142
Related taxes	(1		)	(1		)	6			(1		)	6			41			—			4			47
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8		$	87		$	—		$	12		$	95

	March 31, 2006			June 30, 2006			September 30, 2006		December 31, 2006		March 31, 2007		June 30, 2007			September 30, 2007
Net unrealized investment gains (losses), net of tax, by asset type
Fixed maturities	$	(328	)	$	(917	)	$	440	$	422	$	417	$	(591	)	$	155
Equity securities & other	217			174			173		258		252		174			175
Unrealized investment gains (losses) before tax	(111		)	(743		)	613		680		669		(417		)	330
Related taxes	(50		)	(267		)	202		227		230		(154		)	109
Balance, end of period	$	(61	)	$	(476	)	$	411	$	453	$	439	$	(263	)	$	221

(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	$	13	$	119	$	49
Gross investment Treasury future losses	$	43	$	25	$	24	$	22	$	19	$	11	$	18	$	92	$	48

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)

	September 30, 2007			December 31, 2006
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	11,094		$	12,837
Allowance for uncollectible reinsurance	(720		)	(773		)
Net reinsurance recoverables	10,374			12,064
Mandatory pools and associations	2,099			1,998
Structured settlements	3,646			3,758
Total reinsurance recoverables	$	16,119		$	17,820

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

Reinsurer	A.M. Best Rating of Group’s Predominant Reinsurer	September 30, 2007		December 31, 2006
Swiss Re Group	A+ second highest of 16 ratings	$	1,344	$	1,478
Munich Re Group	A third highest of 16 ratings	982		1,125
Berkshire Hathaway Group	A++ highest of 16 ratings	662		900
American International Group	A+ second highest of 16 ratings	534		718
XL Capital Group	A+ second highest of 16 ratings	514		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 September 30, 2007, after deducting mandatory pool and structured settlement balances, $7.9 billion, or 76%, were rated by A.M. Best Company. Of the total rated by A.M. Best Company, 96% were rated A- or better. The remaining 24% 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 9% were balances from other companies not rated by A.M. Best Company. In addition, $3.0 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at September 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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Business Insurance
Beginning of period	$	35,312		$	35,158		$	34,776		$	34,650		$	34,444		$	34,456		$	34,295		$	35,312		$	34,444
Incurred	1,621			1,640			1,686			1,648			1,684			1,628			1,530			4,947			4,842
Paid	(2,147		)	(2,070		)	(1,815		)	(1,868		)	(1,661		)	(1,814		)	(1,708		)	(6,032		)	(5,183		)
Acquired reserves, foreign exchange and other (1)	372			48			3			14			(11		)	25			14			423			28
End of period	$	35,158		$	34,776		$	34,650		$	34,444		$	34,456		$	34,295		$	34,131		$	34,650		$	34,131
Financial, Professional & International Insurance
Beginning of period	$	4,242		$	4,513		$	4,646		$	4,822		$	5,014		$	4,991		$	5,285		$	4,242		$	5,014
Incurred	415			442			461			462			447			463			419			1,318			1,329
Paid	(347		)	(366		)	(293		)	(318		)	(318		)	(256		)	(333		)	(1,006		)	(907		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	203			57			8			48			(152		)	87			45			268			(20		)
End of period	$	4,513		$	4,646		$	4,822		$	5,014		$	4,991		$	5,285		$	5,416		$	4,822		$	5,416
Personal Insurance
Beginning of period	$	3,637		$	3,585		$	3,694		$	3,612		$	3,490		$	3,495		$	3,449		$	3,637		$	3,490
Incurred	915			1,013			840			829			997			968			972			2,768			2,937
Paid	(967		)	(904		)	(922		)	(951		)	(992		)	(952		)	(968		)	(2,793		)	(2,912		)
Sold reserves (3)	—			—			—			—			—			(62		)	—			—			(62		)
End of period	$	3,585		$	3,694		$	3,612		$	3,490		$	3,495		$	3,449		$	3,453		$	3,612		$	3,453
Total
Beginning of period	$	43,191		$	43,256		$	43,116		$	43,084		$	42,948		$	42,942		$	43,029		$	43,191		$	42,948
Incurred	2,951			3,095			2,987			2,939			3,128			3,059			2,921			9,033			9,108
Paid	(3,461		)	(3,340		)	(3,030		)	(3,137		)	(2,971		)	(3,022		)	(3,009		)	(9,831		)	(9,002		)
Acquired (sold) reserves, foreign exchange and other (1) (2) (3)	575			105			11			62			(163		)	50			59			691			(54		)
End of period	$	43,256		$	43,116		$	43,084		$	42,948		$	42,942		$	43,029		$	43,000		$	43,084		$	43,000
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	155		$	—		$	—		$	—		$	—		$	155		$	—
Environmental	—			—			120			—			—			185			—			120			185
All other	(19		)	(34		)	(229		)	(14		)	(27		)	(245		)	(165		)	(282		)	(437		)
Prior year development excluding accretion	(19		)	(34		)	46			(14		)	(27		)	(60		)	(165		)	(7		)	(252		)
Accretion of discount	16			15			16			15			15			15			15			47			45
Total Business Insurance	(3		)	(19		)	62			1			(12		)	(45		)	(150		)	40			(207		)
Financial, Professional & International Insurance	—			(9		)	(1		)	(4		)	—			(15		)	(42		)	(10		)	(57		)
Personal Insurance	(30		)	(58		)	(132		)	(139		)	(35		)	(50		)	(24		)	(220		)	(109		)
Total	$	(33	)	$	(86	)	$	(71	)	$	(142	)	$	(47	)	$	(110	)	$	(216	)	$	(190	)	$	(373	)

(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)

	1Q 2006			2Q 2006			3Q 2006			4Q 2006			1Q 2007			2Q 2007			3Q 2007			YTD 3Q 2006			YTD 3Q 2007
Asbestos reserves
Beginning reserves:
Direct	$	5,103		$	5,000		$	4,838		$	4,925		$	4,777		$	4,625		$	4,532		$	5,103		$	4,777
Ceded	(739		)	(720		)	(716		)	(746		)	(726		)	(699		)	(673		)	(739		)	(726		)
Net	4,364			4,280			4,122			4,179			4,051			3,926			3,859			4,364			4,051
Incurred losses and loss expenses:
Direct	—			—			196			—			—			—			(1		)	196			(1		)
Ceded	—			—			(41		)	—			—			—			1			(41		)	1
Accretion of discount:
Direct	—			—			1			—			—			—			—			1			—
Ceded	—			—			—			—			—			—			—			—			—
Losses paid:
Direct	103			162			110			148			152			93			84			375			329
Ceded	(19		)	(4		)	(11		)	(20		)	(27		)	(26		)	(10		)	(34		)	(63		)
Ending reserves:
Direct	5,000			4,838			4,925			4,777			4,625			4,532			4,447			4,925			4,447
Ceded	(720		)	(716		)	(746		)	(726		)	(699		)	(673		)	(662		)	(746		)	(662		)
Net	$	4,280		$	4,122		$	4,179		$	4,051		$	3,926		$	3,859		$	3,785		$	4,179		$	3,785
Environmental reserves
Beginning reserves:
Direct	$	494		$	406		$	379		$	460		$	413		$	364		$	529		$	494		$	413
Ceded	(69		)	(19		)	(7		)	6			5			8			8			(69		)	5
Net	425			387			372			466			418			372			537			425			418
Incurred losses and loss expenses:
Direct	—			—			108			—			—			185			(3		)	108			182
Ceded	—			—			12			—			—			—			3			12			3
Losses paid:
Direct	88			27			27			47			49			20			28			142			97
Ceded	(50		)	(12		)	(1		)	1			(3		)	—			(3		)	(63		)	(6		)
Ending reserves:
Direct	406			379			460			413			364			529			498			460			498
Ceded	(19		)	(7		)	6			5			8			8			14			6			14
Net	$	387		$	372		$	466		$	418		$	372		$	537		$	512		$	466		$	512

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

29

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

	September 30,			December 31,
	2007			2006
Debt
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
3.75% Senior notes due March 15, 2008 (1)	400			—
Medium-term notes maturing in the following 12 months	—			72
Total short-term debt	500			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	133			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	9			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	5,725			4,588
Unamortized fair value adjustment	87			109
Unamortized debt issuance costs	(69		)	(51		)
	5,743			4,646
Total debt	6,243			5,760
Preferred equity	115			129
Common equity (excluding net unrealized investment gains (losses), net of tax)	25,971			24,553
Total capital	$	32,329		$	30,442
Total debt to capital	19.3		%	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 ($ in millions)

	September 30,			December 31,
	2007 (1)			2006
Statutory capital and surplus	$	22,221		$	20,945
GAAP adjustments
Goodwill and intangible assets	3,989			3,985
Investments	928			993
Noninsurance companies	(4,032		)	(4,007		)
Deferred acquisition costs	1,844			1,615
Deferred federal income tax	249			411
Current federal income tax	(105		)	3
Reinsurance recoverables	587			587
Furniture, equipment & software	365			382
Employee benefits	78			74
Agents balances	128			83
Other	55			64
Total GAAP adjustments	4,086			4,190
GAAP shareholders’ equity	$	26,307		$	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			3Q			3Q			3Q
	2006			2006			2006			2006			2007			2007			2007			2006			2007
Cash flows from operating activities
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	3,019		$	3,538
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	6			(10		)	(12		)	5			(14		)	(128		)	—			(16		)	(142		)
Depreciation and amortization	197			197			213			201			205			203			197			607			605
Deferred federal income taxes	159			44			150			168			(188		)	369			68			353			249
Amortization of deferred policy acquisition costs	800			814			858			867			869			915			956			2,472			2,740
Equity income from other investments	(140		)	(134		)	(84		)	(120		)	(167		)	(205		)	(117		)	(358		)	(489		)
Premium balances receivable	110			(358		)	154			37			17			(368		)	216			(94		)	(135		)
Reinsurance recoverables	636			370			434			558			548			531			615			1,440			1,694
Deferred acquisition costs	(836		)	(874		)	(880		)	(837		)	(967		)	(1,024		)	(997		)	(2,590		)	(2,988		)
Claim and claim adjustment expense reserves	(1,137		)	(509		)	(351		)	(568		)	(350		)	(255		)	(469		)	(1,997		)	(1,074		)
Unearned premium reserves	103			272			87			(162		)	60			275			28			462			363
Trading account activities	4			2			—			—			(1		)	(3		)	1			6			(3		)
Excess tax benefits from share-based payment arrangements	(5		)	(1		)	(2		)	(8		)	(9		)	(11		)	(3		)	(8		)	(23		)
Other	(341		)	66			97			326			(222		)	(496		)	322			(178		)	(396		)
Net cash provided by operating activities	562			849			1,707			1,656			867			1,057			2,015			3,118			3,939
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	1,571			1,079			1,758			1,402			1,637			927			1,393			4,408			3,957
Proceeds from sales of investments
Fixed maturities	1,320			1,854			452			775			729			809			2,143			3,626			3,681
Equity securities	94			32			98			61			25			31			21			224			77
Other investments	259			253			336			263			325			606			232			848			1,163
Purchase of investments
Fixed maturities	(3,983		)	(4,066		)	(2,191		)	(3,605		)	(3,006		)	(3,007		)	(3,673		)	(10,240		)	(9,686		)
Equity securities	(47		)	(17		)	(27		)	8			(29		)	(26		)	(8		)	(91		)	(63		)
Real estate	(8		)	(6		)	(9		)	(52		)	(26		)	(27		)	(16		)	(23		)	(69		)
Other investments	(105		)	(258		)	(187		)	(155		)	(139		)	(232		)	(191		)	(550		)	(562		)
Short-term securities, (purchases) sales, net	67			(160		)	(1,275		)	1,283			(103		)	407			(368		)	(1,368		)	(64		)
Securities transactions in course of settlement	490			19			(159		)	97			305			(251		)	(385		)	350			(331		)
Other	(38		)	(84		)	(93		)	(110		)	(203		)	(7		)	(82		)	(215		)	(292		)
Net cash provided (used) by investing activities	(380		)	(1,354		)	(1,297		)	(33		)	(485		)	(770		)	(934		)	(3,031		)	(2,189		)

32

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2006			2006			2006			2006			2007			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		)	(488		)	(46		)	(1,956		)
Treasury stock acquired - net employee share-based compensation	(16		)	(1		)	—			—			(26		)	(12		)	(1		)	(17		)	(39		)
Treasury stock acquired - share repurchase program	—			(230		)	(137		)	(736		)	(698		)	(637		)	(612		)	(367		)	(1,947		)
Issuance of common stock - employee stock options	32			26			31			127			54			106			32			89			192
Dividends to shareholders	(161		)	(182		)	(181		)	(178		)	(175		)	(193		)	(189		)	(524		)	(557		)
Excess tax benefits from share-based payment arrangements	5			1			2			8			9			11			3			8			23
Other	(2		)	3			(1		)	17			(1		)	1			1			—			1
Net cash provided (used) by financing activities	(146		)	403			(328		)	(1,522		)	(462		)	(106		)	(1,254		)	(71		)	(1,822		)
Effect of exchange rate changes on cash	—			3			1			1			(1		)	3			2			4			4
Net increase (decrease) in cash	36			(99		)	83			102			(81		)	184			(171		)	20			(68		)
Cash at beginning of period	337			373			274			357			459			378			562			337			459
Cash at end of period	$	373		$	274		$	357		$	459		$	378		$	562		$	391		$	357		$	391
Income taxes paid (received)	$	(5	)	$	258		$	338		$	270		$	88		$	698		$	149		$	591		$	935
Interest paid	$	85		$	79		$	86		$	108		$	75		$	86		$	79		$	250		$	240

33

The Travelers Companies, Inc.
Financial Supplement - Third 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, (i.e., excluding FAS 115), 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, (i.e., net unrealized investment gains (losses), net of tax) 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.

34