Exhibit 99.2


The Travelers Companies, Inc.
Financial Supplement - First Quarter 2008

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

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

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

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

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

Glossary of Financial Measures and Description of Reportable Business Segments	34

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

Index

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967
Net income per share:
Basic	$	1.62		$	1.90		$	1.85		$	1.67		$	1.57
Diluted	$	1.56		$	1.86		$	1.81		$	1.64		$	1.54

Operating income	$	1,078		$	1,167		$	1,198		$	1,057		$	1,008
Operating income per share:
Basic	$	1.61		$	1.77		$	1.85		$	1.66		$	1.63
Diluted	$	1.55		$	1.73		$	1.81		$	1.63		$	1.61

Return on equity	17.3		%	19.9		%	18.6		%	16.1		%	14.6		%
Operating return on equity	17.5		%	18.6		%	18.6		%	16.3		%	15.6		%

Total assets, at period end	$	115,688		$	115,361		$	115,644		$	115,224		$	114,144
Total equity, at period end	$	25,357		$	25,322		$	26,307		$	26,616		$	26,388

Book value per share, at period end	$	37.93		$	38.36		$	40.54		$	42.22		$	43.31
Less: Net unrealized investment gains (losses), net of tax	0.67			(0.40		)	0.34			0.99			0.95
Adjusted book value per share, at period end	$	37.26		$	38.76		$	40.20		$	41.23		$	42.36

Weighted average number of common shares outstanding (basic)	669.9			658.6			648.4			634.5			616.2
Weighted average number of common shares outstanding and common stock equivalents (diluted)	701.2			676.0			661.9			648.7			628.1
Common shares outstanding at period end	665.3			657.0			646.1			627.8			606.9

Common stock dividends declared	$	174		$	192		$	188		$	184		$	178

Common stock repurchased:
Under repurchase authorization (1)
Shares	13.9			11.4			11.7			19.0			20.8
Cost	$	725		$	622		$	600		$	1,000		$	1,000
Other
Shares	0.6			0.7			0.2			0.2			0.6
Cost	$	31		$	36		$	10		$	12		$	28

(1) Repurchased under Board of Director authorization.

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

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Net income
Operating income	$	1,078	$	1,167	$	1,198	$	1,057	$	1,008
Net realized investment gains (losses)	8		87		—		6		(41		)
Net income	$	1,086	$	1,254	$	1,198	$	1,063	$	967

Basic earnings per share
Operating income	$	1.61	$	1.77	$	1.85	$	1.66	$	1.63
Net realized investment gains (losses)	0.01		0.13		—		0.01		(0.06		)
Net income	$	1.62	$	1.90	$	1.85	$	1.67	$	1.57

Diluted earnings per share
Operating income	$	1.55	$	1.73	$	1.81	$	1.63	$	1.61
Net realized investment gains (losses)	0.01		0.13		—		0.01		(0.07		)
Net income	$	1.56	$	1.86	$	1.81	$	1.64	$	1.54

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008
Basic
Net income, as reported	$	1,086		$	1,254		$	1,198		$	1,063		$	967
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(1		)	(1		)
Net income available to common shareholders - basic	$	1,085		$	1,253		$	1,197		$	1,062		$	966

Diluted
Net income available to common shareholders - basic	$	1,085		$	1,253		$	1,197		$	1,062		$	966
Effect of dilutive securities:
Convertible preferred stock	1			1			1			1			1
Zero coupon convertible notes	1			1			1			1			1
Convertible junior subordinated notes (2)	7			1			—			—			—
Net income available to common shareholders - diluted	$	1,094		$	1,256		$	1,199		$	1,064		$	968

Common Shares
Basic
Weighted average shares outstanding	669.9			658.6			648.4			634.5			616.2

Diluted
Weighted average shares outstanding	669.9			658.6			648.4			634.5			616.2
Weighted average effects of dilutive securities:
Stock options and other incentive plans	9.1			8.9			8.3			9.0			6.9
Convertible preferred stock	3.1			3.0			2.8			2.8			2.6
Zero coupon convertible notes	2.4			2.4			2.4			2.4			2.4
Convertible junior subordinated notes (2)	16.7			3.1			—			—			—
Diluted weighted average shares outstanding	701.2			676.0			661.9			648.7			628.1

(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) Redeemed in April 2007.

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Revenues
Premiums	$	5,295		$	5,327		$	5,416		$	5,432		$	5,340
Net investment income	960			990			929			882			815
Fee income	120			127			148			113			105
Net realized investment gains (losses)	14			128			—			12			(62		)
Other revenues	38			1			33			52			34
Total revenues	6,427			6,573			6,526			6,491			6,232

Claims and expenses
Claims and claim adjustment expenses	3,189			3,096			2,985			3,127			3,021
Amortization of deferred acquisition costs	869			915			956			966			954
General and administrative expenses	833			836			817			866			853
Interest expense	76			85			94			91			90
Total claims and expenses	4,967			4,932			4,852			5,050			4,918

Income before income taxes	1,460			1,641			1,674			1,441			1,314
Income tax expense	374			387			476			378			347
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967

Other statistics:
Effective tax rate on net investment income	23.2		%	23.4		%	22.2		%	21.1		%	20.2		%
Net investment income (after-tax)	$	737		$	758		$	724		$	696		$	650

Catastrophes, net of reinsurance:
Pre-tax	$	45		$	40		$	14		$	68		$	95
After-tax	$	29		$	26		$	9		$	45		$	62

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Underwriting gain	$	341		$	449		$	520		$	389		$	401
Net investment income	737			758			724			696			650
Other, including interest expense	—			(40		)	(46		)	(28		)	(43		)
Operating income	1,078			1,167			1,198			1,057			1,008
Net realized investment gains (losses)	8			87			—			6			(41		)
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967

GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	59.2		%	57.1		%	53.6		%	56.6		%	55.7		%
Underwriting expense ratio	30.0		%	30.7		%	30.8		%	31.8		%	31.9		%
Combined ratio	89.2		%	87.8		%	84.4		%	88.4		%	87.6		%

Impact of catastrophes on combined ratio	0.9		%	0.8		%	0.3		%	1.3		%	1.8		%
Impact of prior year reserve development on combined ratio	-1.2		%	-2.4		%	-4.3		%	-2.4		%	-7.5		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008
Billing and policy fees	$	29	$	25	$	26	$	27	$	27
Fee income:
Loss and loss adjustment expenses	$	47	$	48	$	71	$	47	$	43
Underwriting expenses	73		79		77		66		62
Total fee income	$	120	$	127	$	148	$	113	$	105

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

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Revenues
Premiums	$	5,295	$	5,327	$	5,416	$	5,432	$	5,340
Net investment income	960		990		929		882		815
Fee income	120		127		148		113		105
Other revenues	38		1		33		52		34
Total revenues	6,413		6,445		6,526		6,479		6,294

Claims and expenses
Claims and claim adjustment expenses	3,189		3,096		2,985		3,127		3,021
Amortization of deferred acquisition costs	869		915		956		966		954
General and administrative expenses	833		836		817		866		853
Interest expense	76		85		94		91		90
Total claims and expenses	4,967		4,932		4,852		5,050		4,918

Operating income before income taxes	1,446		1,513		1,674		1,429		1,376
Income tax expense	368		346		476		372		368
Operating income	$	1,078	$	1,167	$	1,198	$	1,057	$	1,008

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

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

	1Q			2Q		3Q			4Q		1Q
	2007			2007		2007			2007		2008
Statutory underwriting
Gross written premiums	$	6,071		$	6,262	$	6,097		$	5,768	$	5,933
Net written premiums	$	5,144		$	5,714	$	5,394		$	5,366	$	5,188

Net earned premiums	$	5,295		$	5,327	$	5,416		$	5,432	$	5,340
Losses and loss adjustment expenses	3,128			3,059		2,921			3,067		2,978
Underwriting expenses	1,670			1,732		1,694			1,676		1,706
Statutory underwriting gain	497			536		801			689		656
Policyholder dividends	7			6		11			8		7
Statutory underwriting gain after policyholder dividends	$	490		$	530	$	790		$	681	$	649

Other statutory statistics
Reserves for losses and loss adjustment expenses	$	42,942		$	43,029	$	43,000		$	43,068	$	42,840
Increase (decrease) in reserves	$	(6	)	$	87	$	(29	)	$	68	$	(228	)
Statutory surplus	$	21,204		$	21,843	$	22,221		$	22,878	$	22,353
Net written premiums/surplus (1)	1.01:1			0.99:1		0.98:1			0.94:1		0.97:1

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

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008
Written premiums
Gross	$	6,071		$	6,262		$	6,097		$	5,768		$	5,933
Ceded	(927		)	(548		)	(703		)	(402		)	(745		)
Net	$	5,144		$	5,714		$	5,394		$	5,366		$	5,188

Earned premiums
Gross	$	6,001		$	6,031		$	6,073		$	6,075		$	5,932
Ceded	(706		)	(704		)	(657		)	(643		)	(592		)
Net	$	5,295		$	5,327		$	5,416		$	5,432		$	5,340

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

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Revenues
Premiums	$	2,763	$	2,802	$	2,850	$	2,868	$	2,786
Net investment income	694		717		664		633		573
Fee income	120		127		148		113		105
Other revenues	4		10		1		9		6
Total revenues	3,581		3,656		3,663		3,623		3,470

Claims and expenses
Claims and claim adjustment expenses	1,741		1,664		1,594		1,674		1,558
Amortization of deferred acquisition costs	403		435		451		453		451
General and administrative expenses	509		503		504		512		516
Interest expense	—		—		1		—		—
Total claims and expenses	2,653		2,602		2,550		2,639		2,525

Operating income before federal income taxes	928		1,054		1,113		984		945
Income taxes	250		249		310		255		262
Operating income	$	678	$	805	$	803	$	729	$	683

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Underwriting gain	$	140		$	249		$	284		$	221		$	219
Net investment income	534			550			518			502			460
Other	4			6			1			6			4
Operating income	$	678		$	805		$	803		$	729		$	683

GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	61.2		%	57.6		%	53.3		%	56.6		%	54.2		%
Underwriting expense ratio	30.3		%	30.5		%	30.7		%	31.2		%	32.4		%
Combined ratio	91.5		%	88.1		%	84.0		%	87.8		%	86.6		%

Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.1		%	2.1		%
Impact of prior year reserve development on combined ratio	-0.9		%	-2.1		%	-5.9		%	-1.7		%	-11.2		%

(1)	Before policyholder dividends.

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008
Billing and policy fees	$	3	$	3	$	3	$	4	$	3
Fee income:
Loss and loss adjustment expenses	$	47	$	48	$	71	$	47	$	43
Underwriting expenses	73		79		77		66		62
Total fee income	$	120	$	127	$	148	$	113	$	105

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Statutory underwriting
Gross written premiums	$	3,387		$	3,321		$	3,243		$	3,066		$	3,308
Net written premiums	$	2,880		$	2,935		$	2,726		$	2,777		$	2,911

Net earned premiums	$	2,763		$	2,802		$	2,850		$	2,868		$	2,786
Losses and loss adjustment expenses	1,684			1,628			1,530			1,616			1,517
Underwriting expenses	866			882			870			867			903
Statutory underwriting gain	213			292			450			385			366
Policyholder dividends	3			3			5			4			4
Statutory underwriting gain after policyholder dividends	$	210		$	289		$	445		$	381		$	362

Other statistics
Effective tax rate on net investment income	23.1		%	23.3		%	22.0		%	20.8		%	19.7		%
Net investment income (after-tax)	$	534		$	550		$	518		$	502		$	460

Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	4		$	57
After-tax	$	—		$	—		$	—		$	3		$	37

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

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Net written premiums by market
Select Accounts	$	701	$	731	$	637	$	642	$	708
Commercial Accounts	641		581		615		681		673
National Accounts	255		286		245		270		246
Industry-Focused Underwriting	582		580		584		555		613
Target Risk Underwriting	417		475		394		379		423
Specialized Distribution	252		276		243		244		244
Total core	2,848		2,929		2,718		2,771		2,907
Business Insurance other	32		6		8		6		4
Total	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911

Net written premiums by product line
Commercial multi-peril	$	805	$	778	$	713	$	770	$	791
Workers’ compensation	614		553		538		562		674
Commercial automobile	506		526		493		486		500
Property	494		549		476		471		482
General liability	434		527		501		481		462
Other	27		2		5		7		2
Total	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911

National accounts
Additions to claim volume under administration (1)	$	836	$	640	$	554	$	641	$	712
Written fees	$	123	$	104	$	100	$	93	$	103

(1) Includes new and renewal business.

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

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Revenues
Premiums	$	844	$	844	$	854	$	842	$	847
Net investment income	121		125		126		122		122
Other revenues	5		6		5		13		5
Total revenues	970		975		985		977		974

Claims and expenses
Claims and claim adjustment expenses	451		464		419		403		390
Amortization of deferred acquisition costs	163		160		166		165		159
General and administrative expenses	145		146		144		155		144
Total claims and expenses	759		770		729		723		693

Operating income before federal income taxes	211		205		256		254		281
Income taxes	55		53		73		70		73
Operating income	$	156	$	152	$	183	$	184	$	208

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

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Underwriting gain	$	62	$	53	$	84	$	83	$	112
Net investment income	91		95		95		94		93
Other	3		4		4		7		3
Operating income	$	156	$	152	$	183	$	184	$	208

GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0%		54.7%		48.3%		47.4%		45.7%
Underwriting expense ratio	36.4%		36.3%		36.3%		37.9%		35.7%
Combined ratio	89.4%		91.0%		84.6%		85.3%		81.4%

Impact of catastrophes on combined ratio	0.0%		0.0%		0.0%		0.0%		0.0%
Impact of prior year reserve development on combined ratio	0.0%		-1.7%		-4.8%		-4.3%		-7.4%

(1) Before policyholder dividends.

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Statutory underwriting
Gross written premiums	$	975		$	1,063		$	978		$	1,021		$	946
Net written premiums	$	600		$	984		$	918		$	963		$	644

Net earned premiums	$	844		$	844		$	854		$	842		$	847
Losses and loss adjustment expenses	447			463			419			401			387
Underwriting expenses	322			314			302			305			311
Statutory underwriting gain	75			67			133			136			149
Policyholder dividends	4			3			6			4			3
Statutory underwriting gain after policyholder dividends	$	71		$	64		$	127		$	132		$	146

Other statistics
Effective tax rate on net investment income	24.6		%	24.5		%	24.0		%	23.6		%	23.5		%
Net investment income (after-tax)	$	91		$	95		$	95		$	94		$	93

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

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

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Net written premiums by market
Bond & Financial Products excluding Afianzadora Insurgentes	$	292	$	652	$	655	$	604	$	378
Afianzadora Insurgentes (1)	19		6		—		—		—
Total Bond & Financial Products	311		658		655		604		378
International	289		326		263		359		266
Total	$	600	$	984	$	918	$	963	$	644

Net written premiums by product line
General liability	$	96	$	275	$	284	$	287	$	101
Fidelity & surety	180		344		341		287		239
International	289		326		263		359		266
Other	35		39		30		30		38
Total	$	600	$	984	$	918	$	963	$	644

(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.

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008

Revenues
Premiums	$	1,688	$	1,681	$	1,712	$	1,722	$	1,707
Net investment income	145		148		139		127		120
Other revenues	24		21		23		22		21
Total revenues	1,857		1,850		1,874		1,871		1,848

Claims and expenses
Claims and claim adjustment expenses	997		968		972		1,050		1,073
Amortization of deferred acquisition costs	303		320		339		348		344
General and administrative expenses	170		177		162		190		181
Total claims and expenses	1,470		1,465		1,473		1,588		1,598

Operating income before federal income taxes	387		385		401		283		250
Income taxes	121		109		125		82		69
Operating income	$	266	$	276	$	276	$	201	$	181

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Underwriting gain	$	139		$	147		$	152		$	85		$	70
Net investment income	112			113			111			100			97
Other	15			16			13			16			14
Operating income	$	266		$	276		$	276		$	201		$	181

GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	59.0		%	57.6		%	56.8		%	61.0		%	62.9		%
Underwriting expense ratio	26.5		%	28.3		%	28.0		%	29.8		%	29.3		%
Combined ratio	85.5		%	85.9		%	84.8		%	90.8		%	92.2		%

Impact of catastrophes on combined ratio	2.7		%	2.4		%	0.8		%	3.7		%	2.2		%
Impact of prior year reserve development on combined ratio	-2.1		%	-3.0		%	-1.4		%	-2.5		%	-1.5		%

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

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008
Billing and policy fees	$	26	$	22	$	23	$	23	$	24

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Statutory underwriting

Gross written premiums	$	1,709		$	1,878		$	1,876		$	1,681		$	1,679
Net written premiums	$	1,664		$	1,795		$	1,750		$	1,626		$	1,633

Net earned premiums	$	1,688		$	1,681		$	1,712		$	1,722		$	1,707
Losses and loss adjustment expenses	997			968			972			1,050			1,074
Underwriting expenses	482			536			522			504			492
Statutory underwriting gain	$	209		$	177		$	218		$	168		$	141

Other statistics
Effective tax rate on net investment income	22.8		%	22.8		%	21.6		%	20.1		%	19.1		%
Net investment income (after-tax)	$	112		$	113		$	111		$	100		$	97

Catastrophes, net of reinsurance:
Pre-tax	$	45		$	40		$	14		$	64		$	38
After-tax	$	29		$	26		$	9		$	42		$	25

Policies in force (in thousands) (1)
Automobile	2,456			2,464			2,473			2,479			2,495
Homeowners and other	4,579			4,631			4,666			4,682			4,702

(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.

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Statutory underwriting

Gross written premiums	$	975		$	927		$	914		$	857		$	930

Net written premiums:
Excluding Mendota	$	916		$	915		$	901		$	847		$	922
Mendota (1)	49			—			—			—			—
Total	$	965		$	915		$	901		$	847		$	922

Net earned premiums	$	939		$	912		$	920		$	921		$	911
Losses and loss adjustment expenses	595			593			599			622			649
Underwriting expenses	254			262			253			243			262
Statutory underwriting gain	$	90		$	57		$	68		$	56		$	—

Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	63.3		%	65.1		%	65.1		%	67.6		%	71.3		%
Underwriting expense ratio	24.1		%	26.6		%	26.3		%	27.2		%	27.7		%
Combined ratio	87.4		%	91.7		%	91.4		%	94.8		%	99.0		%

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

Catastrophe losses, net of reinsurance:
Pre-tax	$	1		$	4		$	—		$	—		$	—
After-tax	$	1		$	2		$	—		$	—		$	—

Policies in force (in thousands) (3)	2,456			2,464			2,473			2,479			2,495
Change from prior year quarter (3)	6.3		%	3.6		%	1.7		%	1.2		%	1.6		%
Change from prior quarter (3)	0.2		%	0.3		%	0.4		%	0.2		%	0.6		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008
Billing and policy fees	$	17	$	13	$	14	$	13	$	14

(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.

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Statutory underwriting

Gross written premiums	$	734		$	951		$	962		$	824		$	749

Net written premiums:
Excluding Mendota	$	699		$	880		$	849		$	779		$	711
Mendota (1)	—			—			—			—			—
Total	$	699		$	880		$	849		$	779		$	711

Net earned premiums	$	749		$	769		$	792		$	801		$	796
Losses and loss adjustment expenses	402			375			373			428			425
Underwriting expenses	228			274			269			261			230
Statutory underwriting gain	$	119		$	120		$	150		$	112		$	141

Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	53.7		%	48.7		%	47.1		%	53.4		%	53.3		%
Underwriting expense ratio	29.4		%	30.2		%	30.0		%	32.9		%	31.3		%
Combined ratio	83.1		%	78.9		%	77.1		%	86.3		%	84.6		%

Impact of catastrophes on combined ratio	5.9		%	4.6		%	1.8		%	8.0		%	4.8		%

Catastrophe losses, net of reinsurance:
Pre-tax	$	44		$	36		$	14		$	64		$	38
After-tax	$	28		$	24		$	9		$	42		$	25

Policies in force (in thousands) (3)	4,579			4,631			4,666			4,682			4,702
Change from prior year quarter (3)	7.2		%	5.6		%	3.9		%	3.0		%	2.7		%
Change from prior quarter (3)	0.8		%	1.1		%	0.8		%	0.3		%	0.4		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2007		2007		2007		2007		2008
Billing and policy fees	$	9	$	9	$	9	$	10	$	10

(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.

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Revenues
Net investment income	$	—		$	—		$	—		$	—		$	—
Other revenues (1)	5			(36		)	4			8			2
Total revenues	5			(36		)	4			8			2

Claims and expenses
Interest expense	76			85			93			91			90
General and administrative expenses	9			10			7			9			12
Total claims and expenses	85			95			100			100			102

Operating loss before federal income tax benefit	(80		)	(131		)	(96		)	(92		)	(100		)
Income taxes	(58		)	(65		)	(32		)	(35		)	(36		)
Operating loss	$	(22	)	$	(66	)	$	(64	)	$	(57	)	$	(64	)

(1) 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.

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

	March 31,		December 31,
	2008 (1)		2007

Assets
Fixed maturities, available for sale at fair value (including $1,682 and $1,988 subject to securities lending) (amortized cost $63,797 and $64,152)	$	64,492	$	64,920
Equity securities, at fair value (cost $481 and $473)	479		488
Real estate	850		850
Short-term securities	4,869		5,186
Other investments	3,260		3,374
Total investments	73,950		74,818

Cash	308		271
Investment income accrued	815		861
Premiums receivable	6,170		6,142
Reinsurance recoverables	15,369		15,641
Ceded unearned premiums	1,286		1,123
Deferred acquisition costs	1,823		1,809
Deferred tax asset	1,233		1,207
Contractholder receivables	6,722		6,696
Goodwill	3,366		3,366
Other intangible assets	778		814
Other assets	2,324		2,476
Total assets	$	114,144	$	115,224

	March 31,			December 31,
	2008 (1)			2007

Liabilities
Claims and claim adjustment expense reserves	$	57,314		$	57,700
Unearned premium reserves	11,242			11,227
Contractholder payables	6,722			6,696
Payables for reinsurance premiums	828			618
Debt	5,841			6,242
Other liabilities	5,809			6,125
Total liabilities	87,756			88,608

Shareholders' equity
Preferred Stock Savings Plan - convertible preferred stock (0.3 shares issued and outstanding)	108			112
Common stock (1,750.0 shares authorized; 606.9 and 627.8 shares issued and outstanding)	19,052			18,990
Retained earnings	11,896			11,110
Accumulated other changes in equity from nonowner sources	626			670
Treasury stock, at cost (104.4 and 82.9 shares)	(5,294		)	(4,266		)
Total shareholders' equity	26,388			26,616
Total liabilities and shareholders' equity	$	114,144		$	115,224

(1) Preliminary.

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

	March 31,		Pre-tax Book		December 31,		Pre-tax Book
	2008		Yield (1)		2007		Yield (1)

Investment portfolio

Taxable fixed maturities (including redeemable preferred stock)	$	26,016	5.21	%	$	26,369	5.21	%
Tax-exempt fixed maturities	38,476		4.17	%	38,551		4.16	%
Total fixed maturities	64,492		4.59	%	64,920		4.59	%

Non-redeemable preferred stocks	299		6.26	%	305		6.27	%
Common stocks	180				183
Total equity securities	479				488

Real estate	850				850

Short-term securities	4,869		3.31	%	5,186		4.95	%

Private equities	1,493				1,437
Hedge funds	790				914
Real estate joint ventures & other	905				948
Mortgage loans	44		7.27	%	45		7.31	%
Trading securities	28				30
Total other investments	3,260				3,374

Total investments	$	73,950			$	74,818

Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	576			$	620

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

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

	March 31,		December 31,
	2008		2007
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	1,903	$	2,150
Obligations of states and political subdivisions	38,757		38,822
Debt securities issued by foreign governments	1,642		1,635
Mortgage-backed securities - principally obligations of U.S. Government agencies	6,866		7,116
Corporates (including redeemable preferreds)	15,324		15,197
Total fixed maturities	$	64,492	$	64,920

Fixed Maturities
Quality Characteristics (1)

	March 31, 2008
	Amount		% of Total
Quality Ratings
Aaa	$	39,929	61.9		%
Aa	14,558		22.6
A	5,214		8.1
Baa	3,151		4.9
Total investment grade	62,852		97.5
Ba	737		1.1
B	636		1.0
Caa and lower	267		0.4
Total below investment grade	1,640		2.5
Total fixed maturities	$	64,492	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	4.4

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Gross investment income
Fixed maturities	$	709		$	712		$	731		$	741		$	736
Short-term securities	73			64			76			66			52
Other	193			229			137			89			39
	975			1,005			944			896			827
Investment expenses	15			15			15			14			12
Net investment income, pre-tax	960			990			929			882			815
Income taxes	223			232			205			186			165
Net investment income, after-tax	$	737		$	758		$	724		$	696		$	650

Effective tax rate	23.2		%	23.4		%	22.2		%	21.1		%	20.2		%

Average invested assets (1)	$	72,737		$	73,063		$	74,451		$	75,215		$	74,733

Average yield pre-tax (1)	5.3		%	5.4		%	5.0		%	4.7		%	4.4		%
Average yield after-tax	4.1		%	4.2		%	3.9		%	3.7		%	3.5		%

(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.

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Net realized investment gains (losses)
Fixed maturities	$	9		$	13		$	(7	)	$	(10	)	$	(32	)
Equity securities	2			3			(1		)	(2		)	(1		)
Other (1) (2)	3			112			8			24			(29		)
Realized investment gains (losses) before tax	14			128			—			12			(62		)
Related taxes	6			41			—			6			(21		)
Net realized investment gains (losses)	$	8		$	87		$	—		$	6		$	(41	)

Gross investment gains (2)	$	60		$	160		$	53		$	139		$	75
Gross investment losses before impairments (2)	(37		)	(23		)	(39		)	(89		)	(99		)
Impairments	(9		)	(9		)	(14		)	(38		)	(38		)
Realized investment gains (losses) before tax	14			128			—			12			(62		)
Related taxes	6			41			—			6			(21		)
Net realized investment gains (losses)	$	8		$	87		$	—		$	6		$	(41	)

	March 31,			June 30,			September 30,			December 31,			March 31,
	2007			2007			2007			2007			2008

Net unrealized investment gains (losses), net of tax, by asset type
Fixed maturities	$	417		$	(591	)	$	155		$	768		$	695
Equity securities & other	252			174			175			169			168
Unrealized investment gains (losses) before tax	669			(417		)	330			937			863
Related taxes	230			(154		)	109			317			287

Balance, end of period	$	439		$	(263	)	$	221		$	620		$	576

(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		$	18		$	18		$	13		$	21		$	42
Gross investment Treasury future losses		$	19		$	11		$	18		$	30		$	56

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

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

	March 31,			December 31,
	2008			2007
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	10,508		$	10,731
Allowance for uncollectible reinsurance	(703		)	(688		)
Net reinsurance recoverables	9,805			10,043
Mandatory pools and associations	1,982			1,983
Structured settlements	3,582			3,615
Total reinsurance recoverables	$	15,369		$	15,641

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

	A.M. Best Rating of Group’s	March 31,		December 31,
Reinsurer	Predominant Reinsurer	2008		2007
Swiss Re Group	A+ second highest of 16 ratings	$	1,146	$	1,266
Munich Re Group	A+ second highest of 16 ratings	910		994
Berkshire Hathaway Group	A++ highest of 16 ratings	615		591
American International Group	A+ second highest of 16 ratings	578		553
XL Capital Group	A third highest of 16 ratings	489		511

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 based upon the Company’s ongoing review of amounts outstanding, reinsurer solvency, the Company’s experience, current economic conditions, and other relevant factors. Of the total net recoverables due from reinsurers at March 31, 2008, after deducting mandatory pool and structured settlement balances, $7.5 billion, or 76%, were rated by A.M. Best Company. Of the total rated by A.M. Best Company, 96% were rated A- or better. The remaining 24% net recoverables from reinsurers were comprised of the following: 7% related to the Company’s participation in voluntary pools, 9% related to recoverables from captive insurance companies and 8% were balances from other companies not rated by A.M. Best Company. In addition, $2.9 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at March 31, 2008.

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

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

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008
Business Insurance
Beginning of period	$	34,444		$	34,456		$	34,295		$	34,131		$	34,021
Incurred	1,684			1,628			1,530			1,616			1,517
Paid	(1,661		)	(1,814		)	(1,708		)	(1,767		)	(1,736		)
Acquired reserves, foreign exchange and other	(11		)	25			14			41			(84		)
End of period	$	34,456		$	34,295		$	34,131		$	34,021		$	33,718

Financial, Professional & International Insurance
Beginning of period	$	5,014		$	4,991		$	5,285		$	5,416		$	5,520
Incurred	447			463			419			401			387
Paid	(318		)	(256		)	(333		)	(339		)	(324		)
Acquired (sold) reserves, foreign exchange and other (1)	(152		)	87			45			42			7
End of period	$	4,991		$	5,285		$	5,416		$	5,520		$	5,590

Personal Insurance
Beginning of period	$	3,490		$	3,495		$	3,449		$	3,453		$	3,527
Incurred	997			968			972			1,050			1,074
Paid	(992		)	(952		)	(968		)	(976		)	(1,069		)
Sold reserves (2)	—			(62		)	—			—			—
End of period	$	3,495		$	3,449		$	3,453		$	3,527		$	3,532

Total
Beginning of period	$	42,948		$	42,942		$	43,029		$	43,000		$	43,068
Incurred	3,128			3,059			2,921			3,067			2,978
Paid	(2,971		)	(3,022		)	(3,009		)	(3,082		)	(3,129		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	(163		)	50			59			83			(77		)
End of period	$	42,942		$	43,029		$	43,000		$	43,068		$	42,840

Prior Year Reserve Development: Unfavorable (Favorable)

Business Insurance
Asbestos	$	—		$	—		$	—		$	—		$	—
Environmental	—			185			—			—			—
All other	(27		)	(245		)	(165		)	(49		)	(312		)
Prior year development excluding accretion of discount	(27		)	(60		)	(165		)	(49		)	(312		)
Accretion of discount	15			15			15			15			15
Total Business Insurance	(12		)	(45		)	(150		)	(34		)	(297		)

Financial, Professional & International Insurance	—			(15		)	(42		)	(36		)	(63		)

Personal Insurance	(35		)	(50		)	(24		)	(43		)	(25		)
Total	$	(47	)	$	(110	)	$	(216	)	$	(113	)	$	(385	)

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

(2) 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.

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Asbestos reserves
Beginning reserves:
Direct	$	4,777		$	4,625		$	4,532		$	4,447		$	4,353
Ceded	(726		)	(699		)	(673		)	(662		)	(619		)
Net	4,051			3,926			3,859			3,785			3,734
Incurred losses and loss expenses:
Direct	—			—			(1		)	—			—
Ceded	—			—			1			—			—
Accretion of discount:
Direct	—			—			—			—			—
Ceded	—			—			—			—			—
Losses paid:
Direct	152			93			84			94			81
Ceded	(27		)	(26		)	(10		)	(43		)	(19		)
Ending reserves:
Direct	4,625			4,532			4,447			4,353			4,272
Ceded	(699		)	(673		)	(662		)	(619		)	(600		)
Net	$	3,926		$	3,859		$	3,785		$	3,734		$	3,672

Environmental reserves
Beginning reserves:
Direct	$	413		$	364		$	529		$	498		$	478
Ceded	5			8			8			14			12
Net	418			372			537			512			490
Incurred losses and loss expenses:
Direct	—			185			(3		)	—			—
Ceded	—			—			3			—			—
Losses paid:
Direct	49			20			28			20			28
Ceded	(3		)	—			(3		)	2			—
Ending reserves:
Direct	364			529			498			478			450
Ceded	8			8			14			12			12
Net	$	372		$	537		$	512		$	490		$	462

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

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

	March 31,			December 31,
	2008			2007
Debt

Short-term debt
Commercial paper	$	100		$	100
3.75% Senior notes due March 15, 2008	—			400
6.38% Medium-term note due December 15, 2008	149			149
Zero coupon convertible notes due March 3, 2009, effective yield 4.17%	135			—
Total short-term debt	384			649

Long-term debt
Medium-term notes with various maturities through 2010	21			21
Zero coupon convertible notes due March 3, 2009, effective yield 4.17%	—			134
8.125% Senior notes due April 15, 2010 (1)	250			250
7.22% Real estate non-recourse debt due September 1, 2011	9			9
7.81% Private placement notes due on various dates through 2011	9			9
5.375% Senior notes due June 15, 2012 (1)	250			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			450
7.75% Senior notes due April 15, 2026	200			200
7.625% Junior subordinated debentures due December 15, 2027	125			125
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			800
8.50% Junior subordinated debentures due December 15, 2045	56			56
8.312% Junior subordinated debentures due July 1, 2046	73			73
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067	1,000			1,000
Total long-term debt	5,443			5,577
Unamortized fair value adjustment	80			83
Unamortized debt issuance costs	(66		)	(67		)
	5,457			5,593
Total debt	5,841			6,242

Preferred equity	108			112

Common equity (excluding net unrealized investment gains (losses), net of tax)	25,704			25,884

Total capital	$	31,653		$	32,238

Total debt to capital	18.5		%	19.4		%

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

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

	March 31,			December 31,
	2008 (1)			2007

Statutory capital and surplus	$	22,353		$	22,878

GAAP adjustments

Goodwill and intangible assets	3,926			3,958

Investments	1,356			1,407

Noninsurance companies	(4,034		)	(4,307		)

Deferred acquisition costs	1,823			1,809

Deferred federal income tax	105			(18		)

Current federal income tax	(117		)	(124		)

Reinsurance recoverables	371			370

Furniture, equipment & software	449			423

Employee benefits	47			68

Agents balances	112			130

Other	(3		)	22

Total GAAP adjustments	4,035			3,738

GAAP shareholders’ equity	$	26,388		$	26,616

(1) Estimated and Preliminary

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Cash flows from operating activities
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(14		)	(128		)	—			(12		)	62
Depreciation and amortization	205			203			197			206			213
Deferred federal income taxes	(188		)	369			68			(19		)	(8		)
Amortization of deferred policy acquisition costs	869			915			956			966			954
Equity in income from other investments	(167		)	(205		)	(117		)	(81		)	(17		)
Premiums receivable	17			(368		)	216			131			(28		)
Reinsurance recoverables	548			531			615			478			272
Deferred acquisition costs	(967		)	(1,024		)	(997		)	(937		)	(968		)
Claims and claim adjustment expense reserves	(350		)	(255		)	(469		)	(336		)	(386		)
Unearned premium reserves	60			275			28			(260		)	15
Trading account activities	(1		)	(3		)	1			—			2
Loss (gain) on redemption of subordinated debentures	(7		)	39			—			—			—
Excess tax benefits from share-based payment arrangements	(9		)	(11		)	(3		)	(2		)	(4		)
Other	(215		)	(535		)	322			150			(147		)
Net cash provided by operating activities	867			1,057			2,015			1,347			927

Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,637			927			1,393			1,348			1,604
Proceeds from sales of investments
Fixed maturities	729			809			2,143			3,642			1,044
Equity securities	25			31			21			29			12
Real estate	—			—			10			1			—
Other investments	325			606			222			307			246
Purchases of investments
Fixed maturities	(3,006		)	(3,007		)	(3,673		)	(5,033		)	(2,350		)
Equity securities	(29		)	(26		)	(8		)	(72		)	(21		)
Real estate	(26		)	(27		)	(16		)	(5		)	(9		)
Other investments	(139		)	(232		)	(191		)	(178		)	(123		)
Net (purchases) sales of short-term securities	(103		)	407			(368		)	(498		)	320
Securities transactions in course of settlement	305			(251		)	(385		)	208			43
Other	(203		)	(7		)	(82		)	(86		)	(72		)
Net cash provided by (used in) investing activities	(485		)	(770		)	(934		)	(337		)	694

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

	1Q			2Q			3Q			4Q			1Q
	2007			2007			2007			2007			2008

Cash flows from financing activities
Issuance of debt	986			1,475			—			—			—
Payment of debt	(611		)	(857		)	(488		)	—			(400		)
Treasury stock acquired - net employee share-based compensation	(26		)	(12		)	(1		)	—			(26		)
Treasury stock acquired - share repurchase program	(698		)	(637		)	(612		)	(973		)	(1,000		)
Issuance of common stock - employee stock options	54			106			32			26			15
Dividends paid to shareholders	(175		)	(193		)	(189		)	(185		)	(179		)
Excess tax benefits from share-based payment arrangements	9			11			3			2			4
Other	(1		)	1			1			(1		)	—
Net cash used in financing activities	(462		)	(106		)	(1,254		)	(1,131		)	(1,586		)

Effect of exchange rate changes on cash	(1		)	3			2			1			2

Net increase (decrease) in cash	(81		)	184			(171		)	(120		)	37
Cash at beginning of period	459			378			562			391			271
Cash at end of period	$	378		$	562		$	391		$	271		$	308

Income taxes paid	$	88		$	698		$	149		$	411		$	78
Interest paid	$	75		$	86		$	79		$	117		$	72

The Travelers Companies, Inc.
Financial Supplement - First Quarter 2008

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 man-made events, including risks such as fire, earthquake, windstorm, explosion, terrorism and other similar events. Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount. Their effects are included in net and operating income and claims and claim adjustment expense reserves upon occurrence. A catastrophe may result in the payment of reinsurance 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 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 one or more prior years or the current year. In the opinion of the Company’s management, discussion of loss reserve development is useful to investors as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and operating income, 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. Net written premiums reflect gross written premiums less premiums ceded to reinsurers.

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 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 to its clients primarily in the United States. Business Insurance is organized into the following six 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 (which manages the Company’s asbestos and environmental liabilities), 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 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 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.