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):  January 29, 2008

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

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

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

(651) 310-7911

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

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

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

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

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

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

Item 2.02.  Results of Operations and Financial Condition.

On January 29, 2008, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended December 31, 2007, and the availability of the Company’s fourth 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 January 29, 2008, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Fourth Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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SIGNATURES

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

Date:       January 29, 2008	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Bruce A. Backberg
		Name:  Bruce A. Backberg
		Title:   Senior Vice President

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated January 29, 2008, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Fourth Quarter 2007 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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EX-99.1

Exhibit 99.1

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

NEWS RELEASE

Travelers Reports Fourth Quarter 2007 Net Income of $1.063 Billion, or $1.64 per Diluted Share

Full Year 2007 Net Income of $4.601 Billion, or $6.86 per Diluted Share

Additional $5 Billion Multi-Year Common Share Repurchase Authorization

SAINT PAUL, Minn. (January 29, 2008) – The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $1.063 billion, or $1.67 per basic share and $1.64 per diluted share, for the quarter ended December 31, 2007, compared to $1.189 billion, or $1.75 per basic share and $1.68 per diluted share, for the quarter ended December 31, 2006.  Operating income in the current quarter was $1.057 billion, or $1.66 per basic share and $1.63 per diluted share, compared to $1.193 billion, or $1.75 per basic share and $1.69 per diluted share, in the prior year quarter.

Net income for the year ended December 31, 2007 was $4.601 billion, or $7.04 per basic share and $6.86 per diluted share, compared to $4.208 billion, or $6.12 per basic share and $5.91 per diluted share, for the year ended December 31, 2006.  Operating income in the current year was $4.500 billion, or $6.89 per basic share and $6.71 per diluted share, compared to $4.200 billion, or $6.11 per basic share and $5.90 per diluted share, in the prior year.  Net and operating income per diluted share for the year ended December 31, 2007 increased by 16 percent and 14 percent, respectively, from the prior year.

“Travelers produced another strong quarter, concluding a year of excellent performance and execution for our company,” said Jay Fishman, Chairman and Chief Executive Officer.  “We delivered an operating return on equity of nearly 18 percent for the second consecutive year, while simultaneously making investments that are necessary for the long-term growth of our business.  The underwriting results in each of our business segments were solid, resulting in a full year combined ratio of 87.4 percent.

“Our capital position and liquidity are very strong which, when combined with our low leverage and our high quality investment portfolio, position us extremely well.  For the year, book value per share increased by 14 percent after repurchasing approximately $2.9 billion of common stock and paying dividends of $738 million.  As we currently anticipate completing our current common share repurchase authorization in the first or second quarter of 2008, our Board of Directors has approved an additional $5.0 billion of common share repurchases.

“We enter 2008 in a position of strength, both financially and operationally, and will utilize this strength to write attractive business opportunities while always remaining highly disciplined in our underwriting,” concluded Mr. Fishman.

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Current Quarter Highlights

·Return on equity and operating return on equity of 16.1 percent and 16.3 percent, respectively.

·Strong underwriting results in all segments with GAAP combined ratios in Business Insurance of 87.8 percent; Financial, Professional & International Insurance of 85.3 percent; and Personal Insurance of 90.8 percent.  Consolidated GAAP combined ratio of 88.4 percent.

·Net favorable prior year reserve development of $83 million after-tax.

·Net investment income of $696 million after-tax, compared to $701 million after-tax in the prior year quarter.

·Net written premiums of $5.4 billion, a 1 percent decrease from the prior year quarter, and level with the prior year quarter when adjusted for the sales of Afianzadora Insurgentes and Mendota.

·Book value per share (excluding FAS 115) of $41.23, a 3 percent increase from September 30, 2007, after repurchasing 19.0 million common shares for a total cost of $1.0 billion under the company’s share repurchase authorization in the quarter.

Full Year 2007 Highlights

·Return on equity and operating return on equity of 18.0 percent and 17.7 percent, respectively.

·Strong underwriting results in all segments with GAAP combined ratios in Business Insurance of 87.8 percent; Financial, Professional & International Insurance of 87.6 percent; and Personal Insurance of 86.8 percent.  Consolidated GAAP combined ratio of 87.4 percent.

·Net favorable prior year reserve development of $351 million after-tax.

·Net investment income of $2.9 billion after-tax, a 7 percent increase from the prior year.

·Net written premiums of $21.6 billion, a 2 percent increase from the prior year, or a 3 percent increase when adjusted for the sales of Afianzadora Insurgentes and Mendota.

·Book value per share (excluding FAS 115) of $41.23, a 14 percent increase from December 31, 2006, after repurchasing 56.0 million common shares for a total cost of $2.9 billion under the company’s share repurchase authorization during 2007.

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Consolidated Highlights

($ in millions, except for per share amounts,	Three Months Ended December 31,								Twelve Months Ended December 31,
and after-tax except for premiums)	2007			2006			Change		2007			2006			Change
Gross written premiums	$	5,768		$	5,932		(3	)%	$	24,198		$	24,039		1	%
Net written premiums	5,366			5,437			(1	)	21,618			21,150			2
Net earned premiums	5,432			5,328			2		21,470			20,760			3
Underwriting gain	389			487			(20	)	1,699			1,542			10
Net investment income	696			701			(1	)	2,915			2,712			7
Operating income	1,057			1,193			(11	)	4,500			4,200			7
per diluted share	$	1.63		$	1.69		(4	)	$	6.71		$	5.90		14
Net income	1,063			1,189			(11	)	4,601			4,208			9
per diluted share	$	1.64		$	1.68		(2	)	$	6.86		$	5.91		16
Book value per share	$	42.22		$	36.86		15		$	42.22		$	36.86		15
Adjusted book value per share	$	41.23		$	36.20		14		$	41.23		$	36.20		14
GAAP combined ratio	88.4		%	86.7		%	1.7	pts	87.4		%	88.1		%	(0.7	) pts
Operating return on equity	16.3		%	19.6		%	(3.3	) pts	17.7		%	17.9		%	(0.2	) pts
Return on equity	16.1		%	19.1		%	(3.0	) pts	18.0		%	17.9		%	0.1	pts

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

Fourth Quarter 2007 Consolidated Results

Net and operating income in the current quarter of $1.063 billion and $1.057 billion, respectively, benefited from strong underwriting results and solid investment performance.  The current and prior year quarters included the following:

	Three Months Ended December 31,
	2007			2006			2007			2006
($ in millions)	Pre-tax						After-tax
Net favorable prior year reserve development	$	128		$	157		$	83		$	100
Catastrophes, net of reinsurance	(68		)	(21		)	(45		)	(13		)
Re-estimation of the current year loss ratios for the first three quarters of the year	54			66			35			43
Gains on the redemption of securities	—			42			—			27
Resolution of prior year tax matters	—			15			—			14

Net favorable prior year development in the current quarter was primarily driven by better than expected loss performance in each of the company’s segments.  The re-estimation of the current year loss ratio for the first three quarters of 2007 was driven by better frequency and severity in Business Insurance.  In the prior year quarter, the company fully redeemed its St. Paul Capital Trust 7.6% Trust Preferred Securities, resulting in a benefit to net and operating income.

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Net written premiums in the current quarter, which decreased by 1 percent from the prior year quarter, were level with the prior year quarter when adjusted for the March 2007 sale of Afianzadora Insurgentes, the company’s Mexican surety operation, and the April 2007 sale of Mendota, the company’s non-standard personal auto operation.  Overall, retention rates continued to be extremely strong, renewal price changes were slightly weaker than recent quarters and new business volumes decreased from the prior year quarter due to the company’s disciplined underwriting in a somewhat more competitive new business market.

Net investment income in the current quarter was $696 million after-tax ($882 million pre-tax), essentially level with the prior year quarter of $701 million after-tax ($910 million pre-tax).  Average invested assets in the current quarter of $75.2 billion were up 3 percent from the prior year quarter even after share repurchases during the year of $2.9 billion, due to continued strong operating cash flows.  The after-tax annualized yield on the portfolio was 3.7 percent in the current quarter as compared to 3.9 percent in the prior year quarter.  This small decrease in the yield resulted from modestly lower returns in the non-fixed income portion of the portfolio from the prior year quarter.

The GAAP combined ratio in the current quarter was 88.4 percent, a 1.7 point increase from the 86.7 percent reported in the prior year quarter.  The GAAP combined ratios included the following:

	Three Months Ended December 31,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(2.4	) pts	(3.0	) pts
Catastrophes, net of reinsurance	1.3		0.4
Re-estimation of the current year loss ratios for the first three quarters of the year	(1.0	)	(1.2	)

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Full Year 2007 Consolidated Results

Net and operating income were $4.601 billion and $4.500 billion, respectively, for the year ended December 31, 2007. The current and prior years included the following:

	Twelve Months Ended December 31,
	2007			2006			2007			2006
($ in millions)	Pre-tax						After-tax
Net favorable prior year reserve development	$	546		$	394		$	351		$	255
Catastrophes, net of reinsurance	(167		)	(103		)	(109		)	(67		)
Timing impact for the transition to fixed, value-based agent compensation program	163			—			106			—
Gains (losses) on the redemption of securities	(39		)	42			(25		)	27
Resolution of prior year tax matters	86			106			86			86

The current year included the timing impact for the transition to the fixed, value-based agent compensation program adopted in first quarter 2007, which lowered reported expenses from what otherwise would have been reported.  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.  The redemption of these securities slightly increased the full year earnings per diluted share due to the elimination of their dilutive effect.  In the prior year, the company fully redeemed its St. Paul Capital Trust 7.6% Trust Preferred Securities, resulting in a benefit to net and operating income.

The GAAP combined ratio in the current year was 87.4 percent, a 0.7 point improvement from the 88.1 percent reported in the prior year.  The GAAP combined ratios included the following:

	Twelve Months Ended December 31,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(2.5	) pts	(1.9	) pts
Catastrophes, net of reinsurance	0.7		0.5
Timing impact for the transition to fixed, value-based agent compensation program	(0.8	)	—

Net investment income in the current year was $2.9 billion after-tax ($3.8 billion pre-tax), a 7 percent increase from the prior year. The increase was driven by higher average invested assets due to strong operating cash flows and improved returns on both the fixed income and non-fixed income portions of the portfolio.

Net written premiums increased 2 percent from the prior year, or 3 percent when adjusted for the sales of Afianzadora Insurgentes and Mendota.

For the full year 2007, operating return on equity was 17.7 percent, compared to 17.9 percent in the prior year.

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Capital Management

Travelers’ Board of Directors has approved an additional $5.0 billion of common share repurchases, bringing the total remaining authorization to approximately $5.9 billion.  Repurchases may be made from time to time in the open-market, in private transactions, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 of the Securities Exchange Act of 1934 or otherwise.  This authorization does not have a stated expiration date.  The timing and actual number of shares to be repurchased will depend on a variety of factors, including corporate and regulatory requirements, price, catastrophe experience and other market conditions.

During the fourth quarter 2007, the company repurchased 19.0 million of its common shares under its share repurchase authorization for a total cost of $1.0 billion.  Since the first Board authorization in the second quarter of 2006, the company has repurchased 78.8 million shares for a total cost of $4.1 billion.

The company remains very well capitalized, with all of its financial strength indicators at or better than the company’s target levels.  The company ended 2007 with shareholders’ equity of $26.6 billion, an increase of 6 percent compared to the prior year end, after share repurchases and dividends totaling $3.7 billion. Statutory surplus was $22.9 billion at the end of 2007, an increase of 9 percent compared to the prior year end.  The company’s debt to capital ratio (excluding FAS115) at year end was 19.4 percent as compared to its 20.0 percent target level, and holding company liquidity at year end was $1.6 billion or $0.5 billion above the company’s target level.

Business Insurance Segment Financial Results

For the fourth quarter 2007, the Business Insurance segment reported operating income of $729 million, compared to $703 million in the prior year quarter.  The current and prior year quarters included the following:

	Three Months Ended December 31,
	2007			2006		2007			2006
($ in millions)	Pre-tax					After-tax
Net favorable prior year reserve development	$	49		$	14	$	29		$	7
Catastrophes, net of reinsurance	(4		)	—		(3		)	—
Re-estimation of the current year loss ratios for the first three quarters of the year	54			10		35			6

Net favorable prior year reserve development in the quarter was primarily driven by better than expected frequency and severity trends for recent accident years in the commercial auto, property, commercial multi-peril and general liability product lines.  Catastrophe losses in the current quarter resulted from wildfires in California.  The re-estimation of the current year loss ratios for the first three quarters of 2007 was primarily driven by better than expected frequency and severity, largely in the property product line.

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The GAAP combined ratio was 87.8 percent in the current quarter, a 3.1 point improvement from the 90.9 percent reported in the prior year quarter.  The GAAP combined ratios included the following:

	Three Months Ended December 31,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(1.7	) pts	(0.5	) pts
Catastrophes, net of reinsurance	0.1		—
Re-estimation of the current year loss ratios for the first three quarters of the year	(1.9	)	(0.3	)

Net written premiums declined 2 percent from the prior year quarter.  Retention rates continued to be extremely strong, renewal price changes were slightly lower than recent quarters and new business volumes were lower than in the prior year quarter.

Select Accounts net written premiums decreased 2 percent from the prior year quarter.  Retention rates remained very strong, and renewal price changes were positive, consistent with recent quarters.  New business volume increased slightly from the prior year quarter due to the introduction of TravelersExpress^SM earlier in the year, an enhanced quote-to-issue agency platform and multivariate pricing program for the smaller business end of Select Accounts. This increase was partially offset by lower new business volumes in the larger end of Select Accounts.

Commercial Accounts net written premiums were level with the prior year quarter.  Retention rates continued to be very strong, renewal price changes were negative and new business volume declined from the prior year quarter.  National Accounts net written premiums decreased 14 percent from the prior year quarter due in part to the continued competitive marketplace for large accounts and, to a lesser extent, favorable loss experience on retrospectively rated policies.  Industry-Focused Underwriting net written premiums decreased 2 percent from the prior year quarter due primarily to lower new business volumes in Construction and Technology.  Target Risk Underwriting net written premiums decreased 3 percent from the prior year quarter largely due to lower new business volumes in Inland Marine and Ocean Marine.  Specialized Distribution net written premiums increased 1 percent from the prior year quarter due to increased retention and new business volume in National Programs.

Financial, Professional & International Insurance Segment Financial Results

For the fourth quarter 2007, the Financial, Professional & International Insurance segment reported operating income of $184 million, compared to $175 million in the prior year quarter.   The current and prior year quarters included the following:

	Three Months Ended December 31,
	2007		2006		2007		2006
($ in millions)	Pre-tax				After-tax
Net favorable prior year reserve development	$	36	$	4	$	26	$	3
Catastrophes, net of reinsurance	—		—		—		—

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The net favorable prior year reserve development in the quarter was primarily driven by better than expected loss development in the commercial auto, employers’ liability and professional liability product lines within International.

The GAAP combined ratio was 85.3 percent in the current quarter, a 5.1 point improvement from the 90.4 percent reported in the prior year quarter.  This improvement was driven in part by solid current year underwriting results.  The GAAP combined ratios included the following:

	Three Months Ended December 31,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(4.3	) pts	(0.4	) pts
Catastrophes, net of reinsurance	—		—

Net written premiums were consistent with the prior year quarter, but increased 2 percent when adjusted for the sale of Afianzadora Insurgentes.  This result was primarily driven by favorable rates of exchange, strong retention rates and renewal price changes that were consistent with recent trends and higher new business volumes.

Bond & Financial Products net written premiums decreased 5 percent from the prior year quarter, or decreased 2 percent when adjusted for the sale of Afianzadora Insurgentes.  For Bond & Financial Products, retention rates were strong and higher than recent quarters, renewal price changes were slightly negative and new business volumes decreased from the prior year quarter. These metrics exclude the surety line of business since these products are sold on a non-recurring, project-specific basis.

International net written premiums increased 10 percent from the prior year quarter, primarily due to favorable rates of exchange and strong business volumes at Lloyd’s. Retention rates were strong and higher than recent quarters, renewal price changes were slightly negative, but consistent with recent quarters and new business volume increased significantly from the prior year quarter, driven by the company’s operations at Lloyd’s and in Canada.

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Personal Insurance Segment Financial Results

For the fourth quarter 2007, the Personal Insurance segment reported operating income of $201 million compared to $348 million in the prior year quarter. Current accident year results were strong in the current quarter and consistent with the prior year quarter. The decrease in operating income primarily resulted from lower net favorable prior year reserve development, the absence of favorable re-estimation of current year loss ratios and a higher level of catastrophe and non-catastrophe related weather losses in the current quarter.

	Three Months Ended December 31,
	2007			2006			2007			2006
($ in millions)	Pre-tax						After-tax
Net favorable prior year reserve development	$	43		$	139		$	28		$	90
Catastrophes, net of reinsurance	(64		)	(21		)	(42		)	(13		)
Re-estimation of the current year loss ratios for the first three quarters of the year	—			56			—			37

Net favorable prior year reserve development in the quarter was primarily driven by better than expected auto loss performance resulting in part from claim initiatives previously instituted. The prior year quarter also benefited from these claim initiatives at significantly higher levels, which resulted in net favorable prior year reserve development and the re-estimation of that year’s loss ratio.  Catastrophe losses in the current quarter were mostly due to wildfires in California.

The GAAP combined ratio was 90.8 percent in the current quarter, a 12.7 point increase from the 78.1 percent reported in the prior year quarter.  The GAAP combined ratios included the following:

	Three Months Ended December 31,
Impact on GAAP combined ratios	2007		2006
Net favorable prior year reserve development	(2.5	) pts	(8.2	) pts
Catastrophes, net of reinsurance	3.7		1.3
Re-estimation of the current year loss ratios for the first three quarters of the year	—		(3.3	)

Personal Insurance net written premiums, which were level with the prior year quarter, increased by 2 percent when adjusted for the sale of Mendota.  This result was primarily attributable to continued strong retention rates, positive renewal price increases and higher new business volume.

Automobile net written premiums and policies in force both increased 1 percent from the prior year quarter when adjusted for Mendota.  Retention rates were strong and renewal price changes were positive, both consistent with recent quarters.  New business volume increased slightly from the prior year quarter, adjusted for Mendota, due to the continued success of QuantumAuto^SM, the company’s multivariate pricing product, which is now offered in 39 states and the District of Columbia.

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Homeowners and Other net written premiums and policies in force both increased 3 percent from the prior year quarter.  Retention rates were strong and renewal price changes were positive, both consistent with recent quarters.  New business volume decreased from the prior year quarter as ongoing coastal risk management initiatives more than offset new business growth in non-coastal areas.

2008 Annual Guidance

Travelers expects 2008 operating income per diluted share in the range of $5.40 to $5.75. This range generates an approximate operating return on equity of 13 percent to 14 percent.  This guidance is based on a number of assumptions, including:

·Catastrophe losses of $525 million pre-tax and $340 million after-tax, or $0.55 per diluted share;

·No prior year reserve development, favorable or unfavorable;

·Growth in average invested assets in the low single digits, after taking into account dividends and approximately $2.7 billion of share repurchases for the year; and

·Weighted average diluted shares of approximately 618 million, including the impact of assumed share repurchases and normal growth in shares outstanding from employee equity awards.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.travelers.com.  The management of Travelers will discuss the contents of this release and other relevant topics via Web cast at 9 a.m. Eastern (8 a.m. Central) on Tuesday, January 29, 2008.  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 on 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/.

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About Travelers

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

Glossary of Financial Measures

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

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

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

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

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

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

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

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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.

Travelers has organized its businesses into the following reportable business segments:

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.

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.

* * * * *

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, statements about our share repurchase plans and statements about the potential impact of the recent disruption in the sub-prime markets on our investment portfolio and underwriting results 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.

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;

12

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; if we experience difficulties with outsourcing relationships, technology and/or data security, our ability to conduct our business might be negatively impacted; and a significant increase in the interest rate environment, changes in regulatory or rating agency capital requirements or significant and adverse changes in the creditworthiness of corporate or municipal issuers of debt or the market for such debt, could adversely affect our investment portfolio and underwriting results.

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.

###

13

	Three months ended						Twelve months ended
	December 31,						December 31,
($ in millions, except per share amounts, and after-tax)	2007			2006			2007			2006
Operating income	$	1,057		$	1,193		$	4,500		$	4,200
Net realized investment gains (losses)	6			(4		)	101			8
Net income	$	1,063		$	1,189		$	4,601		$	4,208
Basic earnings per share
Operating income	$	1.66		$	1.75		$	6.89		$	6.11
Net realized investment gains	0.01			—			0.15			0.01
Net income	$	1.67		$	1.75		$	7.04		$	6.12
Diluted earnings per share
Operating income	$	1.63		$	1.69		$	6.71		$	5.90
Net realized investment gains (losses)	0.01			(0.01		)	0.15			0.01
Net income	$	1.64		$	1.68		$	6.86		$	5.91
Weighted average number of common shares outstanding (basic)	634.5			679.2			652.7			687.1
Weighted average number of common shares outstanding and common stock equivalents (diluted)	648.7			711.0			672.3			716.7
Common shares outstanding at period end	627.8			678.3			627.8			678.3
Common stock dividends declared	$	184.0		$	176.0		$	738.0		$	696.0
Operating income by segment
Business Insurance	$	729		$	703		$	3,015		$	2,622
Financial, Professional & International Insurance	184			175			675			609
Personal Insurance	201			348			1,019			1,132
Total segment operating income	1,114			1,226			4,709			4,363
Interest Expense and Other	(57		)	(33		)	(209		)	(163		)
	$	1,057		$	1,193		$	4,500		$	4,200
Operating return on equity	16.3		%	19.6		%	17.7		%	17.9		%
Return on equity	16.1		%	19.1		%	18.0		%	17.9		%

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

14

	Three months ended						Twelve months ended
	December 31,						December 31,
($ in millions, pre-tax)	2007			2006			2007			2006
Revenues
Premiums	$	5,432		$	5,328		$	21,470		$	20,760
Net investment income	882			910			3,761			3,517
Fee income	113			138			508			591
Net realized investment gains (losses)	12			(5		)	154			11
Other revenues	52			98			124			211
	$	6,491		$	6,469		$	26,017		$	25,090
Revenues
Business Insurance	$	3,623		$	3,596		$	14,523		$	14,049
Financial, Professional & International Insurance	977			970			3,907			3,776
Personal Insurance	1,871			1,865			7,452			7,205
Total segment revenues	6,471			6,431			25,882			25,030
Interest Expense and Other	8			43			(19		)	49
	6,479			6,474			25,863			25,079
Net realized investment gains (losses)	12			(5		)	154			11
	$	6,491		$	6,469		$	26,017		$	25,090
Gross written premiums
Business Insurance	$	3,066		$	3,222		$	13,017		$	13,047
Financial, Professional & International Insurance	1,021			1,029			4,037			3,981
Personal Insurance	1,681			1,681			7,144			7,011
	$	5,768		$	5,932		$	24,198		$	24,039
Net written premiums
Business Insurance	$	2,777		$	2,843		$	11,318		$	11,046
Financial, Professional & International Insurance	963			964			3,465			3,393
Personal Insurance	1,626			1,630			6,835			6,711
	$	5,366		$	5,437		$	21,618		$	21,150
GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	56.6		%	59.1		%	57.1		%	60.3		%
Underwriting expense ratio	31.2			31.8			30.7			30.6
Combined ratio	87.8		%	90.9		%	87.8		%	90.9		%
Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	47.4		%	54.9		%	50.8		%	53.7		%
Underwriting expense ratio	37.9			35.5			36.8			35.3
Combined ratio	85.3		%	90.4		%	87.6		%	89.0		%
Personal Insurance
Loss and loss adjustment expense ratio	61.0		%	48.7		%	58.6		%	54.8		%
Underwriting expense ratio	29.8			29.4			28.2			28.3
Combined ratio	90.8		%	78.1		%	86.8		%	83.1		%
Total Company (2)
Loss and loss adjustment expense ratio	56.6		%	55.1		%	56.6		%	57.5		%
Underwriting expense ratio	31.8			31.6			30.8			30.6
Combined ratio	88.4		%	86.7		%	87.4		%	88.1		%

(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.

15

	Three months ended						Twelve months ended
	December 31,						December 31,
($ in millions; after-tax except as noted)	2007			2006			2007			2006
Reconciliation of underwriting gain to net income
Pre-tax underwriting gain	$	596		$	674		$	2,558		$	2,325
Tax expense on underwriting results	(207		)	(187		)	(859		)	(783		)
Underwriting gain	389			487			1,699			1,542
Net investment income	696			701			2,915			2,712
Other, including interest expense	(28		)	5			(114		)	(54		)
Consolidated operating income	1,057			1,193			4,500			4,200
Net realized investment gains (losses)	6			(4		)	101			8
Net income	$	1,063		$	1,189		$	4,601		$	4,208

	As of
	December 31,		December 31,
($ in millions; except per share data)	2007		2006
Reconciliation of tangible and adjusted common shareholders’ equity to common shareholders’ equity
Tangible common shareholders’ equity	$	21,811	$	20,491
Goodwill and other intangibles, net of tax	4,073		4,062
Adjusted common shareholders’ equity	25,884		24,553
Net unrealized investment gains, net of tax	620		453
Common shareholders’ equity	$	26,504	$	25,006
Common shares outstanding	627.8		678.3
Tangible book value per share	$	34.74	$	30.21
Adjusted book value per share	41.23		36.20
Book value per share	$	42.22	$	36.86

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

16

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - Fourth 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-K 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			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	1,063		$	4,208		$	4,601
Net income per share:
Basic	$	1.45		$	1.40		$	1.52		$	1.75		$	1.62		$	1.90		$	1.85		$	1.67		$	6.12		$	7.04
Diluted	$	1.41		$	1.36		$	1.47		$	1.68		$	1.56		$	1.86		$	1.81		$	1.64		$	5.91		$	6.86
Operating income	$	1,011		$	959		$	1,037		$	1,193		$	1,078		$	1,167		$	1,198		$	1,057		$	4,200		$	4,500
Operating income per share:
Basic	$	1.46		$	1.39		$	1.51		$	1.75		$	1.61		$	1.77		$	1.85		$	1.66		$	6.11		$	6.89
Diluted	$	1.41		$	1.34		$	1.46		$	1.69		$	1.55		$	1.73		$	1.81		$	1.63		$	5.90		$	6.71
Return on equity	17.9		%	17.0		%	17.6		%	19.1		%	17.3		%	19.9		%	18.6		%	16.1		%	17.9		%	18.0		%
Operating return on equity	18.1		%	16.6		%	17.4		%	19.6		%	17.5		%	18.6		%	18.6		%	16.3		%	17.9		%	17.7		%
Total assets, at period end (1)	$	114,041		$	114,681		$	116,407		$	115,292		$	115,688		$	115,361		$	115,644		$	115,254		$	115,292		$	115,254
Total equity, at period end	$	22,837		$	23,052		$	24,747		$	25,135		$	25,357		$	25,322		$	26,307		$	26,616		$	25,135		$	26,616
Book value per share, at period end	$	32.59		$	33.14		$	35.69		$	36.86		$	37.93		$	38.36		$	40.54		$	42.22		$	36.86		$	42.22
Less: Net unrealized investment gains (losses), net of tax	(0.09		)	(0.69		)	0.59			0.66			0.67			(0.40		)	0.34			0.99			0.66			0.99
Adjusted book value per share, at period end	$	32.68		$	33.83		$	35.10		$	36.20		$	37.26		$	38.76		$	40.20		$	41.23		$	36.20		$	41.23
Weighted average number of common shares outstanding (basic)	692.2			691.8			685.3			679.2			669.9			658.6			648.4			634.5			687.1			652.7
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			648.7			716.7			672.3
Common shares outstanding at period end	696.2			691.4			689.5			678.3			665.3			657.0			646.1			627.8			678.3			627.8
Common stock dividends declared	$	160		$	180		$	180		$	176		$	174		$	192		$	188		$	184		$	696		$	738
Common stock repurchased:
Under repurchase program (2)
Shares	—			5.6			2.8			14.4			13.9			11.4			11.7			19.0			22.8			56.0
Cost	$	—		$	250		$	121		$	750		$	725		$	622		$	600		$	1,000		$	1,121		$	2,947
Other
Shares	0.5			0.1			—			0.7			0.6			0.7			0.2			0.2			1.3			1.7
Cost	$	22		$	3		$	5		$	31		$	31		$	36		$	10		$	12		$	61		$	89

(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. Reconcillation to Net Income and Earnings Per Share
($ and shares in millions, except earnings per share)

																	YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Net income
Operating income	$1,011		$959		$1,037		$1,193		$1,078		$1,167		$1,198		$1,057		$4,200		$4,500
Net realized investment gains (losses)	(5	)	11		6		(4	)	8		87		—		6		8		101
Net income	$1,006		$970		$1,043		$1,189		$1,086		$1,254		$1,198		$1,063		$4,208		$4,601
Basic earnings per share
Operating income	$1.46		$1.39		$1.51		$1.75		$1.61		$1.77		$1.85		$1.66		$6.11		$6.89
Net realized investment gains (losses)	(0.01	)	0.01		0.01		—		0.01		0.13		—		0.01		0.01		0.15
Net income	$1.45		$1.40		$1.52		$1.75		$1.62		$1.90		$1.85		$1.67		$6.12		$7.04
Diluted earnings per share
Operating income	$1.41		$1.34		$1.46		$1.69		$1.55		$1.73		$1.81		$1.63		$5.90		$6.71
Net realized investment gains (losses)	—		0.02		0.01		(0.01	)	0.01		0.13		—		0.01		0.01		0.15
Net income	$1.41		$1.36		$1.47		$1.68		$1.56		$1.86		$1.81		$1.64		$5.91		$6.86
Adjustments to net income and weighted average shares for net income EPS calculations: (1)
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		YTD 4Q		YTD 4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Basic
Net income, as reported	$1,006		$970		$1,043		$1,189		$1,086		$1,254		$1,198		$1,063		$4,208		$4,601
Preferred stock dividends, net of taxes	(1	)	(1	)	(1	)	(2	)	(1	)	(1	)	(1	)	(1	)	(5	)	(4	)
Net income available to common shareholders - basic	$1,005		$969		$1,042		$1,187		$1,085		$1,253		$1,197		$1,062		$4,203		$4,597
Diluted
Net income available to common shareholders - basic	$1,005		$969		$1,042		$1,187		$1,085		$1,253		$1,197		$1,062		$4,203		$4,597
Effect of dilutive securities:
Convertible preferred stock	1		1		1		2		1		1		1		1		5		4
Zero coupon convertible notes	1		1		1		1		1		1		1		1		4		4
Convertible junior subordinated notes (2)	7		6		7		6		7		1		—		—		26		8
Net income available to common shareholders - diluted	$1,014		$977		$1,051		$1,196		$1,094		$1,256		$1,199		$1,064		$4,238		$4,613
Common Shares
Basic
Weighted average shares outstanding	692.2		691.8		685.3		679.2		669.9		658.6		648.4		634.5		687.1		652.7
Diluted
Weighted average shares outstanding	692.2		691.8		685.3		679.2		669.9		658.6		648.4		634.5		687.1		652.7
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		9.0		7.1		9.4
Convertible preferred stock	3.6		3.5		3.4		3.2		3.1		3.0		2.8		2.8		3.4		2.9
Zero coupon convertible notes	2.4		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		4.9
Diluted weighted average shares outstanding	720.8		720.4		714.6		711.0		701.2		676.0		661.9		648.7		716.7		672.3

(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			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Revenues
Premiums	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295		$	5,327		$	5,416		$	5,432		$	20,760		$	21,470
Net investment income	875			874			858			910			960			990			929			882			3,517			3,761
Fee income	150			153			150			138			120			127			148			113			591			508
Net realized investment gains (losses)	(6		)	10			12			(5		)	14			128			—			12			11			154
Other revenues	40			37			36			98			38			1			33			52			211			124
Total revenues	6,050			6,255			6,316			6,469			6,427			6,573			6,526			6,491			25,090			26,017
Claims and expenses
Claims and claim adjustment expenses	3,042			3,153			3,047			3,002			3,189			3,096			2,985			3,127			12,244			12,397
Amortization of deferred acquisition costs	800			814			858			867			869			915			956			966			3,339			3,706
General and administrative expenses	794			866			869			929			833			836			817			866			3,458			3,352
Interest expense	76			78			88			82			76			85			94			91			324			346
Total claims and expenses	4,712			4,911			4,862			4,880			4,967			4,932			4,852			5,050			19,365			19,801
Income before income taxes	1,338			1,344			1,454			1,589			1,460			1,641			1,674			1,441			5,725			6,216
Income tax expense	332			374			411			400			374			387			476			378			1,517			1,615
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	1,063		$	4,208		$	4,601
Other statistics:
Effective tax rate on net investment income	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%	23.4		%	22.2		%	21.1		%	22.9		%	22.5		%
Net investment income (after-tax)	$	670		$	673		$	668		$	701		$	737		$	758		$	724		$	696		$	2,712		$	2,915
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45		$	40		$	14		$	68		$	103		$	167
After-tax	$	—		$	44		$	10		$	13		$	29		$	26		$	9		$	45		$	67		$	109

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)

	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			YTD 4Q			YTD 4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Underwriting gain	$	337		$	311		$	407		$	487		$	341		$	449		$	520		$	389		$	1,542		$	1,699
Net investment income	670			673			668			701			737			758			724			696			2,712			2,915
Other, including interest expense	4			(25		)	(38		)	5			—			(40		)	(46		)	(28		)	(54		)	(114		)
Operating income	1,011			959			1,037			1,193			1,078			1,167			1,198			1,057			4,200			4,500
Net realized investment gains (losses)	(5		)	11			6			(4		)	8			87			—			6			8			101
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086		$	1,254		$	1,198		$	1,063		$	4,208		$	4,601
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		%	56.6		%	57.5		%	56.6		%
Underwriting expense ratio	30.0		%	30.3		%	30.5		%	31.6		%	30.0		%	30.7		%	30.8		%	31.8		%	30.6		%	30.8		%
Combined ratio	88.9		%	89.8		%	87.2		%	86.7		%	89.2		%	87.8		%	84.4		%	88.4		%	88.1		%	87.4		%
Impact of catastrophes on combined ratio	0.0		%	1.3		%	0.3		%	0.4		%	0.9		%	0.8		%	0.3		%	1.3		%	0.5		%	0.7		%
Impact of prior year reserve development on combined ratio	-1.0		%	-2.0		%	-1.7		%	-3.0		%	-1.2		%	-2.4		%	-4.3		%	-2.4		%	-1.9		%	-2.5		%

(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		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Billing and policy fees	$	28	$	26	$	28	$	28	$	29	$	25	$	26	$	27	$	110	$	107
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47	$	48	$	71	$	47	$	276	$	213
Underwriting expenses	58		87		91		79		73		79		77		66		315		295
Total fee income	$	150	$	153	$	150	$	138	$	120	$	127	$	148	$	113	$	591	$	508

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

4

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

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		4Q 2007		YTD 4Q 2006		YTD 4Q 2007
Revenues
Premiums	$	4,991	$	5,181	$	5,260	$	5,328	$	5,295	$	5,327	$	5,416	$	5,432	$	20,760	$	21,470
Net investment income	875		874		858		910		960		990		929		882		3,517		3,761
Fee income	150		153		150		138		120		127		148		113		591		508
Other revenues	40		37		36		98		38		1		33		52		211		124
Total revenues	6,056		6,245		6,304		6,474		6,413		6,445		6,526		6,479		25,079		25,863
Claims and expenses
Claims and claim adjustment expenses	3,042		3,153		3,047		3,002		3,189		3,096		2,985		3,127		12,244		12,397
Amortization of deferred acquisition costs	800		814		858		867		869		915		956		966		3,339		3,706
General and administrative expenses	794		866		869		929		833		836		817		866		3,458		3,352
Interest expense	76		78		88		82		76		85		94		91		324		346
Total claims and expenses	4,712		4,911		4,862		4,880		4,967		4,932		4,852		5,050		19,365		19,801
Operating income before income taxes	1,344		1,334		1,442		1,594		1,446		1,513		1,674		1,429		5,714		6,062
Income tax expense	333		375		405		401		368		346		476		372		1,514		1,562
Operating income	$	1,011	$	959	$	1,037	$	1,193	$	1,078	$	1,167	$	1,198	$	1,057	$	4,200	$	4,500

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			4Q 2007		YTD 4Q 2006			YTD 4Q 2007
Statutory underwriting
Gross written premiums	$	5,810	$	6,197		$	6,100		$	5,932		$	6,071		$	6,262	$	6,097		$	5,768	$	24,039		$	24,198
Net written premiums	$	4,774	$	5,655		$	5,284		$	5,437		$	5,144		$	5,714	$	5,394		$	5,366	$	21,150		$	21,618
Net earned premiums	$	4,991	$	5,181		$	5,260		$	5,328		$	5,295		$	5,327	$	5,416		$	5,432	$	20,760		$	21,470
Losses and loss adjustment expenses	2,951		3,095			2,987			2,939			3,128			3,059		2,921			3,067		11,972			12,175
Underwriting expenses	1,493		1,609			1,524			1,644			1,670			1,732		1,694			1,676		6,270			6,772
Statutory underwriting gain	547		477			749			745			497			536		801			689		2,518			2,523
Policyholder dividends	9		6			5			6			7			6		11			8		26			32
Statutory underwriting gain after policyholder dividends	$	538	$	471		$	744		$	739		$	490		$	530	$	790		$	681	$	2,492		$	2,491
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	43,256	$	43,116		$	43,084		$	42,948		$	42,942		$	43,029	$	43,000		$	43,068	$	42,948		$	43,068
Increase (decrease) in reserves (1)	$	65	$	(140	)	$	(32	)	$	(136	)	$	(6	)	$	87	$	(29	)	$	68	$	(243	)	$	120
Statutory surplus	$	18,522	$	19,037		$	19,961		$	20,945		$	21,204		$	21,843	$	22,221		$	22,878	$	20,945		$	22,878
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			0.94:1		1.01:1			0.94:1

(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			4Q 2007			YTD 4Q 2006			YTD 4Q 2007
Written premiums
Gross	$	5,810		$	6,197		$	6,100		$	5,932		$	6,071		$	6,262		$	6,097		$	5,768		$	24,039		$	24,198
Ceded	(1,036		)	(542		)	(816		)	(495		)	(927		)	(548		)	(703		)	(402		)	(2,889		)	(2,580		)
Net	$	4,774		$	5,655		$	5,284		$	5,437		$	5,144		$	5,714		$	5,394		$	5,366		$	21,150		$	21,618
Earned premiums
Gross	$	5,733		$	5,899		$	6,006		$	6,120		$	6,001		$	6,031		$	6,073		$	6,075		$	23,758		$	24,180
Ceded	(742		)	(718		)	(746		)	(792		)	(706		)	(704		)	(657		)	(643		)	(2,998		)	(2,710		)
Net	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295		$	5,327		$	5,416		$	5,432		$	20,760		$	21,470

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		4Q 2007		YTD 4Q 2006		YTD 4Q 2007
Revenues
Premiums	$	2,643	$	2,715	$	2,737	$	2,781	$	2,763	$	2,802	$	2,850	$	2,868	$	10,876	$	11,283
Net investment income	636		635		610		657		694		717		664		633		2,538		2,708
Fee income	150		153		150		138		120		127		148		113		591		508
Other revenues	7		9		8		20		4		10		1		9		44		24
Total revenues	3,436		3,512		3,505		3,596		3,581		3,656		3,663		3,623		14,049		14,523
Claims and expenses
Claims and claim adjustment expenses	1,706		1,695		1,746		1,706		1,741		1,664		1,594		1,674		6,853		6,673
Amortization of deferred acquisition costs	376		374		397		400		403		435		451		453		1,547		1,742
General and administrative expenses	474		533		531		566		509		503		504		512		2,104		2,028
Interest expense	1		3		—		1		—		—		1		—		5		1
Total claims and expenses	2,557		2,605		2,674		2,673		2,653		2,602		2,550		2,639		10,509		10,444
Operating income before federal income taxes	879		907		831		923		928		1,054		1,113		984		3,540		4,079
Income taxes	228		252		218		220		250		249		310		255		918		1,064
Operating income	$	651	$	655	$	613	$	703	$	678	$	805	$	803	$	729	$	2,622	$	3,015

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			4Q 2007			YTD 4Q 2006			YTD 4Q 2007
Underwriting gain	$	155		$	159		$	131		$	181		$	140		$	249		$	284		$	221		$	626		$	894
Net investment income	492			491			478			507			534			550			518			502			1,968			2,104
Other	4			5			4			15			4			6			1			6			28			17
Operating income	$	651		$	655		$	613		$	703		$	678		$	805		$	803		$	729		$	2,622		$	3,015
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		%	56.6		%	60.3		%	57.1		%
Underwriting expense ratio	29.8		%	30.1		%	30.5		%	31.8		%	30.3		%	30.5		%	30.7		%	31.2		%	30.6		%	30.7		%
Combined ratio	90.7		%	90.1		%	92.0		%	90.9		%	91.5		%	88.1		%	84.0		%	87.8		%	90.9		%	87.8		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.1		%	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		%	-1.7		%	-0.2		%	-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:

	1Q 2006		2Q 2006		3Q 2006		4Q 2006		1Q 2007		2Q 2007		3Q 2007		4Q 2007		YTD 4Q 2006		YTD 4Q 2007
Billing and policy fees	$	3	$	3	$	3	$	3	$	3	$	3	$	3	$	4	$	12	$	13
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47	$	48	$	71	$	47	$	276	$	213
Underwriting expenses	58		87		91		79		73		79		77		66		315		295
Total fee income	$	150	$	153	$	150	$	138	$	120	$	127	$	148	$	113	$	591	$	508

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

9

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	3,254		$	3,314		$	3,257		$	3,222		$	3,387		$	3,321		$	3,243		$	3,066		$	13,047		$	13,017
Net written premiums	$	2,687		$	2,872		$	2,644		$	2,843		$	2,880		$	2,935		$	2,726		$	2,777		$	11,046		$	11,318
Net earned premiums	$	2,643		$	2,715		$	2,737		$	2,781		$	2,763		$	2,802		$	2,850		$	2,868		$	10,876		$	11,283
Losses and loss adjustment expenses	1,621			1,640			1,686			1,648			1,684			1,628			1,530			1,616			6,595			6,458
Underwriting expenses	756			813			761			857			866			882			870			867			3,187			3,485
Statutory underwriting gain	266			262			290			276			213			292			450			385			1,094			1,340
Policyholder dividends	5			3			2			3			3			3			5			4			13			15
Statutory underwriting gain after policyholder dividends	$	261		$	259		$	288		$	273		$	210		$	289		$	445		$	381		$	1,081		$	1,325
Other statistics
Effective tax rate on net investment income	22.8		%	22.6		%	21.6		%	22.8		%	23.1		%	23.3		%	22.0		%	20.8		%	22.5		%	22.3		%
Net investment income (after-tax)	$	492		$	491		$	478		$	507		$	534		$	550		$	518		$	502		$	1,968		$	2,104
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	4		$	—		$	4
After-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	3		$	—		$	3

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

10

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

																		YTD		YTD
	1Q		2Q		3Q		4Q			1Q		2Q		3Q		4Q		4Q		4Q
	2006		2006		2006		2006			2007		2007		2007		2007		2006		2007
Net written premiums by market
Select Accounts	$	679	$	705	$	625	$	654		$	701	$	731	$	637	$	642	$	2,663	$	2,711
Commercial Accounts	575		548		575		678			641		581		615		681		2,376		2,518
National Accounts	268		298		254		315			255		286		245		270		1,135		1,056
Industry-Focused Underwriting	521		560		548		567			582		580		584		555		2,196		2,301
Target Risk Underwriting	398		463		377		391			417		475		394		379		1,629		1,665
Specialized Distribution	245		280		255		242			252		276		243		244		1,022		1,015
Total core	2,686		2,854		2,634		2,847			2,848		2,929		2,718		2,771		11,021		11,266
Business Insurance other	1		18		10		(4		)	32		6		8		6		25		52
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880	$	2,935	$	2,726	$	2,777	$	11,046	$	11,318
Net written premiums by product line
Commercial multi-peril	$	804	$	776	$	708	$	795		$	805	$	778	$	713	$	770	$	3,083	$	3,066
Workers’ compensation	540		529		474		592			614		553		538		562		2,135		2,267
Commercial automobile	467		522		509		515			506		526		493		486		2,013		2,011
Property	467		521		469		482			494		549		476		471		1,939		1,990
General liability	407		512		476		462			434		527		501		481		1,857		1,943
Other	2		12		8		(3		)	27		2		5		7		19		41
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880	$	2,935	$	2,726	$	2,777	$	11,046	$	11,318
National accounts
Additions to claim volume under administration (1)	$	890	$	742	$	650	$	722		$	836	$	640	$	554	$	641	$	3,004	$	2,671
Written fees	$	144	$	134	$	121	$	113		$	123	$	104	$	100	$	93	$	512	$	420

(1)  Includes new and renewal business.

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

11

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

																	YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Revenues
Premiums	$	788	$	839	$	850	$	844	$	844	$	844	$	854	$	842	$	3,321	$	3,384
Net investment income	103		102		108		116		121		125		126		122		429		494
Other revenues	5		6		5		10		5		6		5		13		26		29
Total revenues	896		947		963		970		970		975		985		977		3,776		3,907
Claims and expenses
Claims and claim adjustment expenses	421		445		462		466		451		464		419		403		1,794		1,737
Amortization of deferred acquisition costs	150		159		164		165		163		160		166		165		638		654
General and administrative expenses	126		142		134		134		145		146		144		155		536		590
Total claims and expenses	697		746		760		765		759		770		729		723		2,968		2,981
Operating income before federal income taxes	199		201		203		205		211		205		256		254		808		926
Income taxes	58		52		59		30		55		53		73		70		199		251
Operating income	$	141	$	149	$	144	$	175	$	156	$	152	$	183	$	184	$	609	$	675

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

12

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Underwriting gain	$	60		$	68		$	59		$	79		$	62		$	53		$	84		$	83		$	266		$	282
Net investment income	77			77			82			89			91			95			95			94			325			375
Other	4			4			3			7			3			4			4			7			18			18
Operating income	$	141		$	149		$	144		$	175		$	156		$	152		$	183		$	184		$	609		$	675
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0		%	52.6		%	54.1		%	54.9		%	53.0		%	54.7		%	48.3		%	47.4		%	53.7		%	50.8		%
Underwriting expense ratio	35.0		%	35.8		%	34.9		%	35.5		%	36.4		%	36.3		%	36.3		%	37.9		%	35.3		%	36.8		%
Combined ratio	88.0		%	88.4		%	89.0		%	90.4		%	89.4		%	91.0		%	84.6		%	85.3		%	89.0		%	87.6		%
Impact of catastrophes on combined ratio	0.0		%	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		%	-4.3		%	-0.4		%	-2.7		%

(1)  Before policyholder dividends.

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

13

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	935		$	1,043		$	974		$	1,029		$	975		$	1,063		$	978		$	1,021		$	3,981		$	4,037
Net written premiums	$	515		$	1,002		$	912		$	964		$	600		$	984		$	918		$	963		$	3,393		$	3,465
Net earned premiums	$	788		$	839		$	850		$	844		$	844		$	844		$	854		$	842		$	3,321		$	3,384
Losses and loss adjustment expenses	415			442			461			462			447			463			419			401			1,780			1,730
Underwriting expenses	292			299			273			287			322			314			302			305			1,151			1,243
Statutory underwriting gain	81			98			116			95			75			67			133			136			390			411
Policyholder dividends	4			3			3			3			4			3			6			4			13			17
Statutory underwriting gain after policyholder dividends	$	77		$	95		$	113		$	92		$	71		$	64		$	127		$	132		$	377		$	394
Other statistics
Effective tax rate on net investment income	24.7		%	24.3		%	24.2		%	24.4		%	24.6		%	24.5		%	24.0		%	23.6		%	24.4		%	24.2		%
Net investment income (after-tax)	$	77		$	77		$	82		$	89		$	91		$	95		$	95		$	94		$	325		$	375
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
After-tax	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

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

14

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

																	YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Net written premiums by market
Bond & Financial Products excluding Afianzadora Insurgentes	$	270	$	645	$	643	$	619	$	292	$	652	$	655	$	604	$	2,177	$	2,203
Afianzadora Insurgentes (1)	23		15		21		19		19		6		—		—		78		25
Total Bond & Financial Products	293		660		664		638		311		658		655		604		2,255		2,228
International	222		342		248		326		289		326		263		359		1,138		1,237
Total	$	515	$	1,002	$	912	$	964	$	600	$	984	$	918	$	963	$	3,393	$	3,465
Net written premiums by product line
General liability	$	110	$	282	$	297	$	317	$	96	$	275	$	284	$	287	$	1,006	$	942
Fidelity & surety	152		342		338		293		180		344		341		287		1,125		1,152
International	222		342		248		326		289		326		263		359		1,138		1,237
Other	31		36		29		28		35		39		30		30		124		134
Total	$	515	$	1,002	$	912	$	964	$	600	$	984	$	918	$	963	$	3,393	$	3,465

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

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

15

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

																	YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Revenues
Premiums	$	1,560	$	1,627	$	1,673	$	1,703	$	1,688	$	1,681	$	1,712	$	1,722	$	6,563	$	6,803
Net investment income	134		137		140		137		145		148		139		127		548		559
Other revenues	24		22		23		25		24		21		23		22		94		90
Total revenues	1,718		1,786		1,836		1,865		1,857		1,850		1,874		1,871		7,205		7,452
Claims and expenses
Claims and claim adjustment expenses	915		1,013		839		830		997		968		972		1,050		3,597		3,987
Amortization of deferred acquisition costs	274		281		297		302		303		320		339		348		1,154		1,310
General and administrative expenses	183		197		200		224		170		177		162		190		804		699
Total claims and expenses	1,372		1,491		1,336		1,356		1,470		1,465		1,473		1,588		5,555		5,996
Operating income before federal income taxes	346		295		500		509		387		385		401		283		1,650		1,456
Income taxes	106		92		159		161		121		109		125		82		518		437
Operating income	$	240	$	203	$	341	$	348	$	266	$	276	$	276	$	201	$	1,132	$	1,019

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

16

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Underwriting gain	$	122		$	84		$	217		$	226		$	139		$	147		$	152		$	85		$	649		$	523
Net investment income	102			105			108			106			112			113			111			100			421			436
Other	16			14			16			16			15			16			13			16			62			60
Operating income	$	240		$	203		$	341		$	348		$	266		$	276		$	276		$	201		$	1,132		$	1,019
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	58.7		%	62.2		%	50.2		%	48.7		%	59.0		%	57.6		%	56.8		%	61.0		%	54.8		%	58.6		%
Underwriting expense ratio	27.7		%	27.9		%	28.2		%	29.4		%	26.5		%	28.3		%	28.0		%	29.8		%	28.3		%	28.2		%
Combined ratio	86.4		%	90.1		%	78.4		%	78.1		%	85.5		%	85.9		%	84.8		%	90.8		%	83.1		%	86.8		%
Impact of catastrophes on combined ratio	0.0		%	4.1		%	0.9		%	1.3		%	2.7		%	2.4		%	0.8		%	3.7		%	1.6		%	2.4		%
Impact of prior year reserve development on combined ratio	-1.9		%	-3.6		%	-7.9		%	-8.2		%	-2.1		%	-3.0		%	-1.4		%	-2.5		%	-5.5		%	-2.2		%

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

																	YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Billing and policy fees	$	25	$	23	$	25	$	25	$	26	$	22	$	23	$	23	$	98	$	94

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

17

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	1,621		$	1,840		$	1,869		$	1,681		$	1,709		$	1,878		$	1,876		$	1,681		$	7,011		$	7,144
Net written premiums	$	1,572		$	1,781		$	1,728		$	1,630		$	1,664		$	1,795		$	1,750		$	1,626		$	6,711		$	6,835
Net earned premiums	$	1,560		$	1,627		$	1,673		$	1,703		$	1,688		$	1,681		$	1,712		$	1,722		$	6,563		$	6,803
Losses and loss adjustment expenses	915			1,013			840			829			997			968			972			1,050			3,597			3,987
Underwriting expenses	445			497			490			500			482			536			522			504			1,932			2,044
Statutory underwriting gain	$	200		$	117		$	343		$	374		$	209		$	177		$	218		$	168		$	1,034		$	772
Other statistics
Effective tax rate on net investment income	23.6		%	23.5		%	23.0		%	22.6		%	22.8		%	22.8		%	21.6		%	20.1		%	23.2		%	21.9		%
Net investment income (after-tax)	$	102		$	105		$	108		$	106		$	112		$	113		$	111		$	100		$	421		$	436
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45		$	40		$	14		$	64		$	103		$	163
After-tax	$	—		$	44		$	10		$	13		$	29		$	26		$	9		$	42		$	67		$	106
Policies in force (in thousands) (1)
Automobile	2,309			2,378			2,431			2,450			2,456			2,464			2,473			2,479			2,450			2,479
Homeowners and other	4,270			4,387			4,493			4,544			4,579			4,631			4,666			4,682			4,544			4,682

(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			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	942		$	960		$	943		$	886		$	975		$	927		$	914		$	857		$	3,731		$	3,673
Net written premiums:
Excluding Mendota	$	883		$	909		$	889		$	836		$	916		$	915		$	901		$	847		$	3,517		$	3,579
Mendota (1)	49			42			45			39			49			—			—			—			175			49
Total	$	932		$	951		$	934		$	875		$	965		$	915		$	901		$	847		$	3,692		$	3,628
Net earned premiums	$	872		$	910		$	939		$	951		$	939		$	912		$	920		$	921		$	3,672		$	3,692
Losses and loss adjustment expenses	590			626			598			543			595			593			599			622			2,357			2,409
Underwriting expenses	239			259			240			252			254			262			253			243			990			1,012
Statutory underwriting gain	$	43		$	25		$	101		$	156		$	90		$	57		$	68		$	56		$	325		$	271
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		%	67.6		%	64.2		%	65.3		%
Underwriting expense ratio	25.3		%	26.8		%	26.0		%	26.8		%	24.1		%	26.6		%	26.3		%	27.2		%	26.2		%	26.1		%
Combined ratio	93.0		%	95.5		%	89.7		%	83.9		%	87.4		%	91.7		%	91.4		%	94.8		%	90.4		%	91.4		%
Impact of catastrophes on combined ratio	0.0		%	0.4		%	0.0		%	0.0		%	0.1		%	0.4		%	0.0		%	0.0		%	0.1		%	0.1		%
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			2,479
Change from prior year quarter (3)	5.4		%	8.3		%	9.8		%	8.9		%	6.3		%	3.6		%	1.7		%	1.2		%
Change from prior quarter (3)	2.6		%	3.0		%	2.2		%	0.8		%	0.2		%	0.3		%	0.4		%	0.2		%

(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		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Billing and policy fees	$	16	$	15	$	16	$	16	$	17	$	13	$	14	$	13	$	63	$	57

(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			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Statutory underwriting
Gross written premiums	$	679		$	880		$	926		$	795		$	734		$	951		$	962		$	824		$	3,280		$	3,471
Net written premiums:
Excluding Mendota	$	637		$	826		$	791		$	753		$	699		$	880		$	849		$	779		$	3,007		$	3,207
Mendota (1)	3			4			3			2			—			—			—			—			12			—
Total	$	640		$	830		$	794		$	755		$	699		$	880		$	849		$	779		$	3,019		$	3,207
Net earned premiums	$	688		$	717		$	734		$	752		$	749		$	769		$	792		$	801		$	2,891		$	3,111
Losses and loss adjustment expenses	325			387			242			286			402			375			373			428			1,240			1,578
Underwriting expenses	206			238			250			248			228			274			269			261			942			1,032
Statutory underwriting gain	$	157		$	92		$	242		$	218		$	119		$	120		$	150		$	112		$	709		$	501
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		%	53.4		%	42.9		%	50.7		%
Underwriting expense ratio	30.8		%	29.3		%	31.1		%	32.8		%	29.4		%	30.2		%	30.0		%	32.9		%	31.0		%	30.7		%
Combined ratio	78.1		%	83.3		%	64.1		%	70.8		%	83.1		%	78.9		%	77.1		%	86.3		%	73.9		%	81.4		%
Impact of catastrophes on combined ratio	0.0		%	8.9		%	2.1		%	2.8		%	5.9		%	4.6		%	1.8		%	8.0		%	3.5		%	5.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	64		$	15		$	21		$	44		$	36		$	14		$	64		$	100		$	158
After-tax	$	—		$	42		$	10		$	13		$	28		$	24		$	9		$	42		$	65		$	103
Policies in force (in thousands) (3)	4,270			4,387			4,493			4,544			4,579			4,631			4,666			4,682
Change from prior year quarter (3)	6.4		%	7.9		%	8.9		%	8.3		%	7.2		%	5.6		%	3.9		%	3.0		%
Change from prior quarter (3)	1.7		%	2.7		%	2.4		%	1.1		%	0.8		%	1.1		%	0.8		%	0.3		%

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

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

																	YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		4Q		4Q		4Q
	2006		2006		2006		2006		2007		2007		2007		2007		2006		2007
Billing and policy fees	$	9	$	9	$	9	$	8	$	9	$	9	$	9	$	10	$	35	$	37

(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			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Revenues
Net investment income	$	2		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	2		$	—
Other revenues (1)	4			—			—			43			5			(36		)	4			8			47			(19		)
Total revenues	6			—			—			43			5			(36		)	4			8			49			(19		)
Claims and expenses
Interest expense	75			75			88			81			76			85			93			91			319			345
General and administrative expenses	11			(6		)	4			5			9			10			7			9			14			35
Total claims and expenses	86			69			92			86			85			95			100			100			333			380
Operating loss before federal income tax benefit	(80		)	(69		)	(92		)	(43		)	(80		)	(131		)	(96		)	(92		)	(284		)	(399		)
Income taxes	(59		)	(21		)	(31		)	(10		)	(58		)	(65		)	(32		)	(35		)	(121		)	(190		)
Operating loss	$	(21	)	$	(48	)	$	(61	)	$	(33	)	$	(22	)	$	(66	)	$	(64	)	$	(57	)	$	(163	)	$	(209	)

(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)

	December 31,		December 31,
	2007 (1)		2006
Assets
Fixed maturities, available for sale at fair value (including $1,988 and $1,674 subject to securities lending) (amortized cost $64,152 and $62,244)	$	64,920	$	62,666
Equity securities, at fair value (cost $473 and $436)	488		473
Real estate	850		793
Short-term securities	5,186		4,938
Other investments	3,374		3,398
Total investments	74,818		72,268
Cash	300		459
Investment income accrued	861		827
Premiums receivable	6,142		6,181
Reinsurance recoverables	15,641		17,820
Ceded unearned premiums	1,123		1,243
Deferred acquisition costs	1,809		1,615
Deferred tax asset	1,207		1,536
Contractholder receivables (2)	6,696		6,554
Goodwill	3,366		3,438
Other intangible assets	814		764
Other assets	2,477		2,587
Total assets	$	115,254	$	115,292

	December 31,			December 31,
	2007 (1)			2006
Liabilities
Claims and claim adjustment expense reserves	$	57,700		$	59,288
Unearned premium reserves	11,227			11,228
Contractholder payables (2)	6,696			6,554
Payables for reinsurance premiums	618			685
Debt	6,242			5,760
Other liabilities	6,155			6,642
Total liabilities	88,638			90,157
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.3 and 0.4 shares issued and outstanding)	112			129
Common stock (1,750.0 shares authorized; 627.8 and 678.3 shares issued and outstanding)	18,990			18,530
Retained earnings	11,110			7,253
Accumulated other changes in equity from nonowner sources	670			452
Treasury stock, at cost (82.9 and 25.2 shares)	(4,266		)	(1,229		)
Total shareholders’ equity	26,616			25,135
Total liabilities and shareholders’ equity	$	115,254		$	115,292

(1)  Preliminary.

(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)

	December 31,		Pre-tax Book		December 31,		Pre-tax Book
	2007		Yield (1)		2006		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	26,369	5.21	%	$	27,035	5.09	%
Tax-exempt fixed maturities	38,551		4.16	%	35,631		4.17	%
Total fixed maturities	64,920		4.59	%	62,666		4.57	%
Non-redeemable preferred stocks	305		6.27	%	358		6.38	%
Common stocks	183				115
Total equity securities	488				473
Real estate	850				793
Short-term securities	5,186		4.95	%	4,938		5.45	%
Private equities	1,437				1,592
Arbitrage funds	914				984
Real estate joint ventures & other	948				743
Mortgage loans	45		7.31	%	53		7.22	%
Trading securities	30				26
Total other investments	3,374				3,398
Total investments	$	74,818			$	72,268
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	620			$	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)

	December 31,		December 31,
	2007		2006
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,150	$	2,718
Obligations of states and political subdivisions	38,822		35,907
Debt securities issued by foreign governments	1,635		1,552
Mortgage-backed securities - principally obligations of U.S. Government agencies	7,116		7,589
Corporates (including redeemable preferreds)	15,197		14,900
Total fixed maturities	$	64,920	$	62,666

Fixed Maturities

Quality Characteristics (1)

	December 31, 2007
	Amount		% of Total
Quality Ratings
Aaa	$	43,946	67.7	%
Aa	11,827		18.2
A	4,343		6.7
Baa	3,163		4.9
Total investment grade	63,279		97.5
Ba	703		1.1
B	744		1.1
Caa and lower	194		0.3
Total below investment grade	1,641		2.5
Total fixed maturities	$	64,920	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)

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Gross investment income
Fixed maturities	$	667		$	677		$	691		$	703		$	709		$	712		$	731		$	741		$	2,738		$	2,893
Short-term securities	60			60			81			84			73			64			76			66			285			279
Other	163			159			100			135			193			229			137			89			557			648
	890			896			872			922			975			1,005			944			896			3,580			3,820
Investment expenses	15			22			14			12			15			15			15			14			63			59
Net investment income, pre-tax	875			874			858			910			960			990			929			882			3,517			3,761
Income taxes	205			201			190			209			223			232			205			186			805			846
Net investment income, after-tax	$	670		$	673		$	668		$	701		$	737		$	758		$	724		$	696		$	2,712		$	2,915
Effective tax rate	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%	23.4		%	22.2		%	21.1		%	22.9		%	22.5		%
Average invested assets (1)	$	69,701		$	70,491		$	72,050		$	72,808		$	72,737		$	73,063		$	74,451		$	75,215		$	71,252		$	73,872
Average yield pre-tax (1)	5.0		%	5.0		%	4.8		%	5.0		%	5.3		%	5.4		%	5.0		%	4.7		%	4.9		%	5.1		%
Average yield after-tax	3.8		%	3.8		%	3.7		%	3.9		%	4.1		%	4.2		%	3.9		%	3.7		%	3.8		%	3.9		%

(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)

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Net realized investment gains (losses)
Fixed maturities	$	—		$	(29	)	$	(6	)	$	2		$	9		$	13		$	(7	)	$	(10	)	$	(33	)	$	5
Equity securities	14			2			7			(2		)	2			3			(1		)	(2		)	21			2
Other (1)	(20		)	37			11			(5		)	3			112			8			24			23			147
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14			128			—			12			11			154
Related taxes	(1		)	(1		)	6			(1		)	6			41			—			6			3			53
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8		$	87		$	—		$	6		$	8		$	101
Gross investment gains (2)	$	125		$	101		$	86		$	80		$	60		$	160		$	53		$	139		$	392		$	412
Gross investment losses before impairments (2)	(121		)	(88		)	(61		)	(63		)	(37		)	(23		)	(39		)	(89		)	(333		)	(188		)
Impairments	(10		)	(3		)	(13		)	(22		)	(9		)	(9		)	(14		)	(38		)	(48		)	(70		)
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14			128			—			12			11			154
Related taxes	(1		)	(1		)	6			(1		)	6			41			—			6			3			53
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8		$	87		$	—		$	6		$	8		$	101

	March 31,			June 30,			September 30,		December 31,		March 31,		June 30,			September 30,		December 31,
	2006			2006			2006		2006		2007		2007			2007		2007
Net unrealized investment gains (losses), net of tax, by asset type
Fixed maturities	$	(328	)	$	(917	)	$	440	$	422	$	417	$	(591	)	$	155	$	768
Equity securities & other	217			174			173		258		252		174			175		169
Unrealized investment gains (losses) before tax	(111		)	(743		)	613		680		669		(417		)	330		937
Related taxes	(50		)	(267		)	202		227		230		(154		)	109		317
Balance, end of period	$	(61	)	$	(476	)	$	411	$	453	$	439	$	(263	)	$	221	$	620

(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	$	21	$	144	$	70
Gross investment Treasury future losses	$	43	$	25	$	24	$	22	$	19	$	11	$	18	$	30	$	114	$	78

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)

	December 31,			December 31,
	2007			2006
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	10,731		$	12,837
Allowance for uncollectible reinsurance	(688		)	(773		)
Net reinsurance recoverables	10,043			12,064
Mandatory pools and associations	1,983			1,998
Structured settlements	3,615			3,758
Total reinsurance recoverables	$	15,641		$	17,820

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

	A.M. Best Rating of Group’s	December 31,		December 31,
Reinsurer	Predominant Reinsurer	2007		2006
Swiss Re Group	A+ second highest of 16 ratings	$	1,266	$	1,478
Munich Re Group	A third highest of 16 ratings	994		1,125
Berkshire Hathaway Group	A++ highest of 16 ratings	591		900
American International Group	A+ second highest of 16 ratings	553		718
XL Capital Group	A third highest of 16 ratings	511		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 December 31, 2007, after deducting mandatory pool and structured settlement balances, $7.7 billion, or 77%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 96% were rated A- or better.  The remaining 23% net recoverables from reinsurers were comprised of the following:  7% related to the Company’s participation in voluntary pools, 8% related to recoverables from captive insurance companies and 8% were balances from other companies not rated by A.M. Best Company.  In addition, $3.0 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at December 31, 2007.

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

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

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

27

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Business Insurance
Beginning of period	$	35,312		$	35,158		$	34,776		$	34,650		$	34,444		$	34,456		$	34,295		$	34,131		$	35,312		$	34,444
Incurred	1,621			1,640			1,686			1,648			1,684			1,628			1,530			1,616			6,595			6,458
Paid	(2,147		)	(2,070		)	(1,815		)	(1,868		)	(1,661		)	(1,814		)	(1,708		)	(1,767		)	(7,900		)	(6,950		)
Acquired reserves, foreign exchange and other (1)	372			48			3			14			(11		)	25			14			41			437			69
End of period	$	35,158		$	34,776		$	34,650		$	34,444		$	34,456		$	34,295		$	34,131		$	34,021		$	34,444		$	34,021
Financial, Professional & International Insurance
Beginning of period	$	4,242		$	4,513		$	4,646		$	4,822		$	5,014		$	4,991		$	5,285		$	5,416		$	4,242		$	5,014
Incurred	415			442			461			462			447			463			419			401			1,780			1,730
Paid	(347		)	(366		)	(293		)	(318		)	(318		)	(256		)	(333		)	(339		)	(1,324		)	(1,246		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	203			57			8			48			(152		)	87			45			42			316			22
End of period	$	4,513		$	4,646		$	4,822		$	5,014		$	4,991		$	5,285		$	5,416		$	5,520		$	5,014		$	5,520
Personal Insurance
Beginning of period	$	3,637		$	3,585		$	3,694		$	3,612		$	3,490		$	3,495		$	3,449		$	3,453		$	3,637		$	3,490
Incurred	915			1,013			840			829			997			968			972			1,050			3,597			3,987
Paid	(967		)	(904		)	(922		)	(951		)	(992		)	(952		)	(968		)	(976		)	(3,744		)	(3,888		)
Sold reserves (3)	—			—			—			—			—			(62		)	—			—			—			(62		)
End of period	$	3,585		$	3,694		$	3,612		$	3,490		$	3,495		$	3,449		$	3,453		$	3,527		$	3,490		$	3,527
Total
Beginning of period	$	43,191		$	43,256		$	43,116		$	43,084		$	42,948		$	42,942		$	43,029		$	43,000		$	43,191		$	42,948
Incurred	2,951			3,095			2,987			2,939			3,128			3,059			2,921			3,067			11,972			12,175
Paid	(3,461		)	(3,340		)	(3,030		)	(3,137		)	(2,971		)	(3,022		)	(3,009		)	(3,082		)	(12,968		)	(12,084		)
Acquired (sold) reserves, foreign exchange and other (1) (2) (3)	575			105			11			62			(163		)	50			59			83			753			29
End of period	$	43,256		$	43,116		$	43,084		$	42,948		$	42,942		$	43,029		$	43,000		$	43,068		$	42,948		$	43,068
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		)	(49		)	(296		)	(486		)
Prior year development excluding accretion	(19		)	(34		)	46			(14		)	(27		)	(60		)	(165		)	(49		)	(21		)	(301		)
Accretion of discount	16			15			16			15			15			15			15			15			62			60
Total Business Insurance	(3		)	(19		)	62			1			(12		)	(45		)	(150		)	(34		)	41			(241		)
Financial, Professional & International Insurance	—			(9		)	(1		)	(4		)	—			(15		)	(42		)	(36		)	(14		)	(93		)
Personal Insurance	(30		)	(58		)	(132		)	(139		)	(35		)	(50		)	(24		)	(43		)	(359		)	(152		)
Total	$	(33	)	$	(86	)	$	(71	)	$	(142	)	$	(47	)	$	(110	)	$	(216	)	$	(113	)	$	(332	)	$	(486	)

(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)

																									4Q			4Q
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			YTD			YTD
	2006			2006			2006			2006			2007			2007			2007			2007			2006			2007
Asbestos reserves
Beginning reserves:
Direct	$	5,103		$	5,000		$	4,838		$	4,925		$	4,777		$	4,625		$	4,532		$	4,447		$	5,103		$	4,777
Ceded	(739		)	(720		)	(716		)	(746		)	(726		)	(699		)	(673		)	(662		)	(739		)	(726		)
Net	4,364			4,280			4,122			4,179			4,051			3,926			3,859			3,785			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			94			523			423
Ceded	(19		)	(4		)	(11		)	(20		)	(27		)	(26		)	(10		)	(43		)	(54		)	(106		)
Ending reserves:
Direct	5,000			4,838			4,925			4,777			4,625			4,532			4,447			4,353			4,777			4,353
Ceded	(720		)	(716		)	(746		)	(726		)	(699		)	(673		)	(662		)	(619		)	(726		)	(619		)
Net	$	4,280		$	4,122		$	4,179		$	4,051		$	3,926		$	3,859		$	3,785		$	3,734		$	4,051		$	3,734
Environmental reserves
Beginning reserves:
Direct	$	494		$	406		$	379		$	460		$	413		$	364		$	529		$	498		$	494		$	413
Ceded	(69		)	(19		)	(7		)	6			5			8			8			14			(69		)	5
Net	425			387			372			466			418			372			537			512			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			20			189			117
Ceded	(50		)	(12		)	(1		)	1			(3		)	—			(3		)	2			(62		)	(4		)
Ending reserves:
Direct	406			379			460			413			364			529			498			478			413			478
Ceded	(19		)	(7		)	6			5			8			8			14			12			5			12
Net	$	387		$	372		$	466		$	418		$	372		$	537		$	512		$	490		$	418		$	490

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

29

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

	December 31,			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	149			72
Total short-term debt	649			1,114
Long-term debt
Medium-term notes with various maturities through 2010	21			170
3.75% Senior notes due March 15, 2008 (1)	—			400
Zero coupon convertible notes due 2009, effective yield 4.17%	134			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	5,577			4,588
Unamortized fair value adjustment	83			109
Unamortized debt issuance costs	(67		)	(51		)
	5,593			4,646
Total debt	6,242			5,760
Preferred equity	112			129
Common equity (excluding net unrealized investment gains (losses), net of tax)	25,884			24,553
Total capital	$	32,238		$	30,442
Total debt to capital	19.4		%	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)

	December 31,			December 31,
	2007 (1)			2006
Statutory capital and surplus	$	22,878		$	20,945
GAAP adjustments
Goodwill and intangible assets	3,958			3,985
Investments	1,407			993
Noninsurance companies	(4,307		)	(4,007		)
Deferred acquisition costs	1,809			1,615
Deferred federal income tax	(18		)	411
Current federal income tax	(124		)	3
Reinsurance recoverables	370			587
Furniture, equipment & software	423			382
Employee benefits	68			74
Agents balances	130			83
Other	22			64
Total GAAP adjustments	3,738			4,190
GAAP shareholders’ equity	$	26,616		$	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			4Q			4Q			4Q
	2006			2006			2006			2006			2007			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		$	1,063		$	4,208		$	4,601
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	6			(10		)	(12		)	5			(14		)	(128		)	—			(12		)	(11		)	(154		)
Depreciation and amortization	197			197			213			201			205			203			197			206			808			811
Deferred federal income taxes	159			44			150			168			(188		)	369			68			(19		)	521			230
Amortization of deferred policy acquisition costs	800			814			858			867			869			915			956			966			3,339			3,706
Equity income from other investments	(140		)	(134		)	(84		)	(120		)	(167		)	(205		)	(117		)	(81		)	(478		)	(570		)
Premiums receivable	110			(358		)	154			37			17			(368		)	216			131			(57		)	(4		)
Reinsurance recoverables	636			370			434			558			548			531			615			478			1,998			2,172
Deferred acquisition costs	(836		)	(874		)	(880		)	(837		)	(967		)	(1,024		)	(997		)	(937		)	(3,427		)	(3,925		)
Claims and claim adjustment expense reserves	(1,137		)	(509		)	(351		)	(568		)	(350		)	(255		)	(469		)	(336		)	(2,565		)	(1,410		)
Unearned premium reserves	103			272			87			(162		)	60			275			28			(260		)	300			103
Trading account activities	4			2			—			—			(1		)	(3		)	1			—			6			(3		)
Loss (gain) on redemption of subordinated debentures	—			—			—			(42		)	(7		)	39			—			—			(42		)	32
Excess tax benefits from share-based payment arrangements	(5		)	(1		)	(2		)	(8		)	(9		)	(11		)	(3		)	(2		)	(16		)	(25		)
Other	(341		)	66			97			368			(215		)	(535		)	322			180			190			(248		)
Net cash provided by operating activities	562			849			1,707			1,656			867			1,057			2,015			1,377			4,774			5,316
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,571			1,079			1,758			1,402			1,637			927			1,393			1,348			5,810			5,305
Proceeds from sales of investments
Fixed maturities	1,320			1,854			452			775			729			809			2,143			3,642			4,401			7,323
Equity securities	94			32			98			61			25			31			21			29			285			106
Other investments	259			253			336			263			325			606			232			307			1,111			1,470
Purchases of investments
Fixed maturities	(3,983		)	(4,066		)	(2,191		)	(3,605		)	(3,006		)	(3,007		)	(3,673		)	(5,033		)	(13,845		)	(14,719		)
Equity securities	(47		)	(17		)	(27		)	8			(29		)	(26		)	(8		)	(72		)	(83		)	(135		)
Real estate	(8		)	(6		)	(9		)	(52		)	(26		)	(27		)	(16		)	(5		)	(75		)	(74		)
Other investments	(105		)	(258		)	(187		)	(155		)	(139		)	(232		)	(191		)	(178		)	(705		)	(740		)
Net (purchases) sales of short-term securities	67			(160		)	(1,275		)	1,283			(103		)	407			(368		)	(498		)	(85		)	(562		)
Securities transactions in course of settlement	490			19			(159		)	97			305			(251		)	(385		)	208			447			(123		)
Other	(38		)	(84		)	(93		)	(110		)	(203		)	(7		)	(82		)	(86		)	(325		)	(378		)
Net cash provided by (used in) investing activities	(380		)	(1,354		)	(1,297		)	(33		)	(485		)	(770		)	(934		)	(338		)	(3,064		)	(2,527		)

32

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2006			2006			2006			2006			2007			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		)	—			(806		)	(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		)	(973		)	(1,103		)	(2,920		)
Issuance of common stock - employee stock options	32			26			31			127			54			106			32			26			216			218
Dividends paid to shareholders	(161		)	(182		)	(181		)	(178		)	(175		)	(193		)	(189		)	(185		)	(702		)	(742		)
Excess tax benefits from share-based payment arrangements	5			1			2			8			9			11			3			2			16			25
Other	(2		)	3			(1		)	17			(1		)	1			1			(1		)	17			—
Net cash provided by (used in) financing activities	(146		)	403			(328		)	(1,522		)	(462		)	(106		)	(1,254		)	(1,131		)	(1,593		)	(2,953		)
Effect of exchange rate changes on cash	—			3			1			1			(1		)	3			2			1			5			5
Net increase (decrease) in cash	36			(99		)	83			102			(81		)	184			(171		)	(91		)	122			(159		)
Cash at beginning of period	337			373			274			357			459			378			562			391			337			459
Cash at end of period	$	373		$	274		$	357		$	459		$	378		$	562		$	391		$	300		$	459		$	300
Income taxes paid (received)	$	(5	)	$	258		$	338		$	270		$	88		$	698		$	149		$	411		$	861		$	1,346
Interest paid	$	85		$	79		$	86		$	108		$	75		$	86		$	79		$	117		$	358		$	357

33

The Travelers Companies, Inc.
Financial Supplement - Fourth 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:

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.

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.

34