8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported):  October 22, 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 StreetSaint Paul, Minnesota	55102
(Address of principal executive offices)	(Zip Code)

(651) 310-7911

(Registrant’s telephone number, including area code)

Not Applicable

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

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

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

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

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

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

Item 2.02.  Results of Operations and Financial Condition.

On October 22, 2008, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2008, and the availability of the Company’s third quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

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

Item 9.01.	Financial Statements and Exhibits.
(d)	Exhibits.

Exhibit No.	Description
99.1	Press Release, dated October 22, 2008, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2008 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:       October 22, 2008	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Matthew S. Furman
		Name: Matthew S. Furman
		Title:   Senior Vice President

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated October 22, 2008, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2008 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 Third Quarter 2008 Net Income of $214 million, or $0.36 per Diluted Share

Operating Income of $330 million, or $0.55 per Diluted Share

SAINT PAUL, Minn. (October 22, 2008) – The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $214 million, or $0.36 per basic and diluted share, for the quarter ended September 30, 2008, compared to $1.198 billion, or $1.85 per basic share and $1.81 per diluted share, for the quarter ended September 30, 2007.  Operating income in the current quarter was $330 million, or $0.56 per basic share and $0.55 per diluted share, compared to $1.198 billion, or $1.85 per basic share and $1.81 per diluted share, in the prior year quarter.

“Notwithstanding the significant storm activity in the quarter, our underlying businesses continued to perform strongly,” said Jay Fishman, Chairman and Chief Executive Officer. “While our results for the quarter were impacted by catastrophe losses of $682 million after-tax, our losses were consistent overall with our risk models and pricing assumptions.

“For the nine month period of 2008, we have posted net income of $2.1 billion producing a return on equity of 10.9%, and we have grown our book value almost 3.5% over the past twelve months after returning $3.7 billion to shareholders through stock repurchases and dividends.  All of our financial strength indicators are at or better than target levels, including holding company liquidity of $2.1 billion, which is approximately twice our target level.  With our financial strength, strong brand, continued high retention levels and the increased flow of new business opportunities we continue to experience, we are well positioned in the marketplace,” concluded Mr. Fishman.

Current Quarter Highlights

·Return on equity and operating return on equity in the current quarter of 3.4 percent and 5.1 percent, respectively. Year-to-date return on equity and operating return on equity of 10.9 percent and 11.7 percent, respectively.

·GAAP combined ratio of 104.7 percent for the current quarter.  Catastrophe losses added 19.1 points, partially offset by net favorable prior year reserve development of 6.2 points.  Excluding these impacts, the GAAP combined ratio was 91.8 percent.

·Catastrophe losses of $682 million after-tax ($1.042 billion pre-tax) in the current quarter, compared to $9 million after-tax ($14 million pre-tax) in the prior year quarter.

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·Net favorable prior year reserve development of $210 million after-tax ($334 million pre-tax) in the current quarter, compared to $145 million after-tax ($231 million pre-tax) in the prior year quarter. Both quarters include the impact of the company’s annual in-depth asbestos claim review and quarterly asbestos reserve review.

·Net written premiums of $5.481 billion in the current quarter, a 2 percent increase from the prior year quarter.

·Net investment income of $587 million after-tax ($716 million pre-tax) in the current quarter, compared to $724 million after-tax ($929 million pre-tax) in the prior year quarter.

·Net realized investment losses of $116 million after-tax ($170 million pre-tax) in the current quarter, compared to no net realized investment gains or losses in the prior year quarter.

·Adjusted book value per share (which excludes FAS 115) of $43.34, a less than 1 percent decline from June 30, 2008 and an 8 percent increase from September 30, 2007. The company repurchased 6.2 million common shares for a total cost of $272 million in the current quarter and 61.3 million common shares for a total cost of $3.022 billion during the preceding 12 months under the company’s share repurchase authorization. In addition, the company paid common dividends of $177 million in the current quarter and $719 million over the prior 12 months.

·Book value per share of $41.94, a 4 percent decline from June 30, 2008 and a 3 percent increase from September 30, 2007, after share repurchases and common dividends.

Consolidated Highlights

($ in millions, except for per share amounts,	Three Months Ended September 30,								Nine Months Ended September 30,
and after-tax except for premiums)	2008			2007			Change		2008			2007			Change
Gross written premiums	$	6,134		$	6,097		1	%	$	18,128		$	18,430		(2	)%
Net written premiums	5,481			5,394			2		16,298			16,252			—
Net earned premiums	5,448			5,416			1		16,145			16,038			1
Underwriting gain (loss)	(208		)	520			NMF		531			1,310			(59	)
Net investment income	587			724			(19	)	1,861			2,219			(16	)
Operating income	330			1,198			(72	)	2,256			3,443			(34	)
per diluted share	$	0.55		$	1.81		(70	)	$	3.69		$	5.08		(27	)
Net income	214			1,198			(82	)	2,123			3,538			(40	)
per diluted share	$	0.36		$	1.81		(80	)	$	3.47		$	5.22		(34	)
Book value per share	$	41.94		$	40.54		3		$	41.94		$	40.54		3
Adjusted book value per share	$	43.34		$	40.20		8		$	43.34		$	40.20		8
GAAP combined ratio	104.7		%	84.4		%	20.3	pts	94.0		%	87.1		%	6.9	pts
Operating return on equity	5.1		%	18.6		%	(13.5	)pts	11.7		%	18.2		%	(6.5	)pts
Return on equity	3.4		%	18.6		%	(15.2	)pts	10.9		%	18.6		%	(7.7	)pts

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

Third Quarter 2008 Consolidated Results

Net and operating income in the current quarter of $214 million and $330 million, respectively, include after-tax net investment income of $587 million, partially offset by an

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after-tax underwriting loss of $208 million resulting from catastrophe losses.  The current and prior year quarters included the following:

	Three Months Ended September 30,
	2008			2007			2008			2007
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	(288	)	$	811		$	(208	)	$	520
GAAP combined ratio	104.7		%	84.4		%
Underwriting gain (loss) includes:
Net favorable prior year reserve development	334			231			210			145
Impact on GAAP combined ratio	(6.2		)pts	(4.3		)pts
Catastrophes, net of reinsurance	(1,042		)	(14		)	(682		)	(9		)
Impact on GAAP combined ratio	19.1		pts	0.3		pts
Timing impact for the transition to fixed, value-based agent compensation program	—			29			—			19
Impact on GAAP combined ratio	—		pts	(0.5		)pts
Net investment income	716			929			587			724
Average yield	3.9		%	5.0		%	3.2		%	3.9		%
Other, including interest expense	(70		)	(66		)	(49		)	(46		)
Net realized investment losses	(170		)	—			(116		)	—

The current quarter underwriting result reflects a GAAP combined ratio of 91.8 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 88.9 percent in the prior year quarter which also excludes the timing impact for the transition to the fixed, value-based agent compensation program.  This increase of 2.9 points primarily resulted from pricing and loss cost trends that were anticipated, a small number of large losses that exceeded expectations and an increase in non-catastrophe weather-related losses.

Net favorable prior year reserve development in the current quarter resulted from better than expected loss experience in each segment, particularly in Business Insurance.  Catastrophe losses in the current quarter were almost entirely related to Hurricanes Ike, Gustav and Dolly.  The prior year quarter also included a benefit from the timing impact for the transition to the fixed, value-based agent compensation program adopted in the first quarter 2007, which lowered reported expenses in that quarter from what otherwise would have been reported.

Net investment income in the current quarter declined primarily due to lower returns from the non-fixed income portfolio, which were slightly negative in the current quarter as compared to very strong positive returns in the prior year quarter, and significantly lower short-term interest rates.

Net realized investment losses in the current quarter were driven by impairments of $102 million after-tax ($156 million pre-tax), including impairments of $44 million after-tax ($67 million pre-tax) with respect to securities issued by Lehman Brothers Holdings Inc. and its subsidiaries.  The prior year quarter had no net realized investment gains or losses.  At the end of the third quarter 2008, the company was not a party to any credit default swaps and had approximately $15 million of loans outstanding under its securities lending program, for which the company believes it has no exposure to loss.  Additionally, at the end of the

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third quarter 2008, the fair value of the company’s financial assets classified as Level 3 under FAS 157 continued to represent less than 1 percent of the total fair value of the company’s investment portfolio.

Net written premiums of $5.481 billion in the current quarter increased by 2 percent from the prior year quarter.  Overall, retention rates continued to be strong and renewal price changes were generally consistent with recent quarters, while new business volumes increased slightly from the prior year quarter driven by growth in Personal Insurance.  This increase was partially offset by a decline in new business volumes in Business Insurance and Financial, Professional and International Insurance due to competitive market conditions and disciplined underwriting.

Capital Management

During the third quarter 2008, the company’s strong capital position allowed for the repurchase of 6.2 million of its common shares under its share repurchase authorization for a total cost of $272 million.  At the end of the third quarter 2008, the company had $3.9 billion of capacity remaining under the share repurchase program.  Since the initial share repurchase authorization granted by the Board in the second quarter of 2006, the company has repurchased 121.1 million shares for a total cost of $6.1 billion.

The company remains very well capitalized, with all of its financial strength indicators at or better than target levels.  At the end of the third quarter 2008, shareholders’ equity was $24.7 billion, a decline of 6 percent from the end of the prior year quarter. This decline was primarily due to a change to a net unrealized investment loss position of $818 million at the end of the third quarter 2008 from a net unrealized investment gain position of $221 million at the end of the prior year quarter largely driven by widening credit spreads across fixed income securities.  Statutory surplus was $21.9 billion at the end of the current quarter, a decline of 1 percent from the end of the prior year quarter.  At the end of the third quarter 2008, the company’s debt-to-capital ratio (excluding FAS 115) was slightly below its 20.0 percent target level, and holding company liquidity of $2.1 billion was approximately twice the company’s target level.

Asbestos Reserve Review

During the third quarter of 2008, the company completed its annual in-depth asbestos claim review. As in prior years, the annual claim review considered active policyholders and litigation cases for potential product and “non-product” liability.  The company also analyzed developing payment trends among policyholders in the Home Office, Field Office and Assumed and International categories.  The Home Office and Field Office categories, which account for the vast majority of policyholders with active asbestos related claims, continued to experience an overall reduction in new claim filings. In 2008, the number of policyholders tendering asbestos claims for the first time was consistent with the prior year period.  Defense and indemnity costs in these categories remain at similar levels to what the company has experienced in recent years due to the level of trial activity involving impaired individuals.

The completion of the company’s asbestos reserve review resulted in a $46 million after-tax ($70 million pre-tax) increase to asbestos reserves in the current quarter. In the prior

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year quarter, there was no change to the asbestos reserves. The increase in the current quarter was driven by modest changes in the company’s estimates of costs associated with litigating asbestos coverage matters and losses related to certain policyholders. The increase was not a result of any change in the company’s assessment of the underlying asbestos environment.

Year-to-Date 2008 Consolidated Results

Net and operating income for the nine-month period ended September 30, 2008 of $2.123 billion and $2.256 billion, respectively, include an after-tax underwriting gain of $531 million and after-tax net investment income of $1.861 billion.  The current and prior year periods included the following:

	Nine Months Ended September 30,
	2008			2007			2008			2007
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	877		$	1,962		$	531		$	1,310
GAAP combined ratio	94.0		%	87.1		%
Underwriting gain includes:
Net favorable prior year reserve development	1,260			418			811			268
Impact on GAAP combined ratio	(7.8		)pts	(2.6		)pts
Catastrophes, net of reinsurance	(1,493		)	(99		)	(975		)	(64		)
Impact on GAAP combined ratio	9.3		pts	0.6		pts
Timing impact for the transition to fixed, value-based agent compensation program	—			160			—			104
Impact on GAAP combined ratio	—		pts	(1.0		)pts
Resolution of prior year tax matters	—			34			—			34
Net investment income	2,309			2,879			1,861			2,219
Average yield	4.1		%	5.2		%	3.3		%	4.0		%
Other, including interest expense	(201		)	(208		)	(136		)	(86		)
Other also includes:
Loss on the redemption of securities	—			(39		)	—			(25		)
Resolution of prior year tax matters	—			52			—			52
Net realized investment gains (losses)	(196		)	142			(133		)	95

The current period underwriting result reflects a GAAP combined ratio of 92.5 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 90.1 percent in the prior year period which also excludes the timing impact for the transition to the fixed, value-based agent compensation program.  This increase of 2.4 points primarily resulted from pricing and loss cost trends that were anticipated, a small number of large losses that exceeded expectations, as well as an increase in non-catastrophe weather-related losses.

Net favorable prior year reserve development in the current period resulted from better than expected loss experience in each segment, particularly in Business Insurance. Catastrophe losses in the current period were almost entirely related to Hurricanes Ike, Gustav and Dolly, as well as other severe weather events in various regions of the United States.

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Net investment income declined primarily due to smaller gains in the non-fixed income portfolio and lower short-term interest rates.

Net written premiums were $16.298 billion in the current year period, compared to $16.252 billion in the prior year period.

Operating return on equity was 11.7 percent in the current year period, compared to 18.2 percent in the prior year period.

Business Insurance Segment Financial Results

For the third quarter 2008, the Business Insurance segment reported operating income of $378 million, including after-tax net investment income of $409 million, partially offset by an after-tax underwriting loss of $35 million that resulted from catastrophe losses.  The current and prior year quarters included the following:

	Three Months Ended September 30,
	2008			2007			2008			2007
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	(40	)	$	448		$	(35	)	$	284
GAAP combined ratio	101.3		%	84.0		%
Underwriting gain (loss) includes:
Net favorable prior year reserve development	247			165			152			100
Impact on GAAP combined ratio	(8.7		)pts	(5.9		)pts
Catastrophes, net of reinsurance	(488		)	—			(318		)	—
Impact on GAAP combined ratio	17.3		pts	—		pts
Timing impact for the transition to fixed, value-based agent compensation program	—			14			—			9
Impact on GAAP combined ratio	—		pts	(0.5		)pts
Net investment income	494			664			409			518
Other	8			1			4			1

The current quarter underwriting result reflects a GAAP combined ratio of 92.7 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 90.4 percent in the prior year quarter which also excludes the timing impact for the transition to the fixed, value-based agent compensation program.  This increase of 2.3 points was primarily due to pricing and loss cost trends that were anticipated.

Net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience in the commercial multi-peril and general liability product lines.  Catastrophe losses in the current quarter were almost entirely related to Hurricanes Ike, Gustav and Dolly.

Business Insurance net written premiums of $2.748 billion increased 1 percent from the prior year quarter.  Retention rates continued to be strong, and renewal price changes were slightly negative, generally consistent with recent quarters.  New business volume declined from the prior year quarter primarily driven by Commercial Accounts as the company responds with discipline to competitive market conditions, partially offset by growth in Select Accounts.

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Select Accounts

·Net written premiums of $662 million increased 4 percent from the prior year quarter.

·Retention rates remained strong, and renewal price changes were relatively flat but slightly lower than recent quarters.

·New business volume increased from the prior year quarter due to the continued growth of TravelersExpress^SM , the enhanced quote-to-issue agency platform and multivariate pricing program for smaller businesses, as well as from growth in business from larger accounts served by Select.

Commercial Accounts

·Net written premiums of $635 million increased 3 percent from the prior year quarter.

·Retention rates remained strong, and renewal price changes were slightly negative, consistent with recent quarters.

·New business volumes declined from the prior year quarter due to the impact of competitive market conditions.

National Accounts

·Net written premiums of $240 million declined 2 percent from the prior year quarter due in part to favorable loss experience on retrospectively rated Workers’ Compensation policies.

Industry-Focused Underwriting

·Net written premiums of $613 million increased 5 percent from the prior year quarter primarily driven by Construction, Oil & Gas and Public Sector due to strong retention and higher new business volumes.

Target Risk Underwriting

·Net written premiums of $366 million declined 7 percent from the prior year quarter in part to lower new business volumes in National Property and Inland Marine.

Specialized Distribution

·Net written premiums of $228 million declined 6 percent from the prior year quarter in part to lower new business volumes in National Programs.

Financial, Professional & International Insurance Segment Financial Results

For the third quarter 2008, the Financial, Professional & International Insurance segment reported operating income of $83 million, including after-tax net investment income of $89 million, partially offset by an after-tax underwriting loss of $8 million that resulted primarily from catastrophe losses.  The current and prior year quarters included the following:

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	Three Months Ended September 30,
	2008			2007			2008			2007
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	3		$	125		$	(8	)	$	84
GAAP combined ratio	99.4		%	84.6		%
Underwriting gain (loss) includes:
Net favorable prior year reserve development	43			42			29			29
Impact on GAAP combined ratio	(4.9		)pts	(4.8		)pts
Catastrophes, net of reinsurance	(91		)	—			(64		)	—
Impact on GAAP combined ratio	10.5		pts	—		pts
Timing impact for the transition to fixed, value-based agent compensation program	—			2			—			1
Impact on GAAP combined ratio	—		pts	(0.2		)pts
Net investment income	114			126			89			95
Other	4			5			2			4

The current quarter underwriting result reflects a GAAP combined ratio of 93.8 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 89.6 percent in the prior year quarter which also excludes the timing impact for the transition to the fixed, value-based agent compensation program.  This increase of 4.2 points was primarily due to a small number of large losses that exceeded expectations within International.

The net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience across various lines of business within International. Catastrophe losses in the current quarter were due to Hurricanes Ike, Gustav and Dolly.

Financial, Professional & International Insurance net written premiums of $901 million declined 2 percent from the prior year quarter.

Bond & Financial Products

·Net written premiums of $643 million declined 2 percent from the prior year quarter, driven primarily by the impact of competitive market conditions and the company’s continued disciplined underwriting.

·Retention rates continued to be strong and renewal price changes were flat.

·New business volumes declined slightly from the prior year quarter.

·The retention, renewal price change and new business volume metrics exclude the surety line of business because these products are sold on a non-recurring, project-specific basis.

International

·Net written premiums of $258 million declined 2 percent from the prior year quarter.

·Retention rates were consistent with last quarter, but lower than the prior year quarter due to the intentional non-renewal of certain property business in Canada as well as more competitive market conditions affecting the company’s operations at Lloyd’s.  Renewal price changes were flat, but improved from recent quarters.

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·New business volumes declined from the prior year quarter driven primarily by Canada due to a slowdown in economic activity and stronger competition for new business.

Personal Insurance Segment Financial Results

For the third quarter 2008, the Personal Insurance segment reported an operating loss of $64 million, including an after-tax underwriting loss of $165 million that resulted from catastrophe losses, partially offset by after-tax net investment income of $89 million.  The current and prior year quarters included the following:

	Three Months Ended September 30,
	2008			2007			2008			2007
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	(251	)	$	238		$	(165	)	$	152
GAAP combined ratio	112.9		%	84.8		%
Underwriting gain (loss) includes:
Net favorable prior year reserve development	44			24			29			16
Impact on GAAP combined ratio	(2.5		)pts	(1.4		)pts
Catastrophes, net of reinsurance	(463		)	(14		)	(300		)	(9		)
Impact on GAAP combined ratio	26.2		pts	0.8		pts
Timing impact for the transition to fixed, value-based agent compensation program	—			13			—			9
Impact on GAAP combined ratio	—		pts	(0.8		)pts
Net investment income	108			139			89			111
Other	18			24			12			13

The current quarter underwriting result reflects a GAAP combined ratio of 89.2 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 86.2 percent in the prior year quarter which also excludes the timing impact for the transition to the fixed, value-based agent compensation program.  This increase of 3.0 points was primarily due to an increase in non-catastrophe weather-related losses in Homeowners and Other.

Net favorable prior year reserve development in the current quarter was primarily driven by favorable loss experience related to Hurricane Katrina as well as certain other lines of business within Homeowners and Other. Catastrophe losses in the current quarter were due to Hurricanes Ike, Gustav and Dolly.

Personal Insurance net written premiums of $1.832 billion increased 5 percent from the prior year quarter.  This result was primarily due to continued strong retention rates, positive renewal price changes and higher new business volume.

Automobile

·Net written premiums of $929 million and policies in force both increased 3 percent from the prior year quarter.

·Retention rates were strong and renewal price changes were positive, both generally consistent with recent quarters.

·New business volume increased from the prior year quarter due to continued agent and channel expansion of QuantumAuto^SM distribution.

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Homeowners and Other

·Net written premiums of $903 million increased 6 percent, and policies in force increased 3 percent, from the prior year quarter.

·Retention rates were strong and renewal price changes were positive, both generally consistent with recent quarters.

·New business volume increased from the prior year quarter as new business growth in non-coastal areas was partially offset by ongoing coastal risk management initiatives.

2008 Annual Guidance

Travelers is revising its range of full year 2008 operating income per diluted share to a range of $4.90 to $5.10, compared with the previously announced guidance range of $5.55 to $5.85.  This equates to a range of operating return on equity of approximately 11.5 percent to 12.0 percent.  This guidance includes the reported results for the first nine months of 2008 and estimates for the remainder of 2008 based on a number of assumptions, including:

·Catastrophe losses of $1.585 billion pre-tax and $1.035 billion after-tax, or $1.70 per diluted share, for the full year which incorporates actual experience of the first nine months of 2008 and $60 million after-tax for the remainder of the year;

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

·No significant change in average invested assets (excluding FAS 115), after taking into account dividends and approximately $2.1 billion of share repurchases for the full year; and

·Weighted average diluted shares of approximately 610 million

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our Web site at www.travelers.com.  The management of Travelers will discuss the contents of this release and other relevant topics via webcast at 9 a.m. Eastern (8 a.m. Central) on Wednesday, October 22, 2008.  Prior to the webcast, 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 webcast and the slide presentation will be available on the company’s Web site.

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

About Travelers

Travelers is a leading provider of property casualty insurance for auto, home and business.  For more information, visit www.travelers.com.

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Travelers uses its Web site as a channel of distribution of material company information. Financial and other material information regarding the company is routinely posted on and accessible at http://investor.travelers.com.  In addition, you may automatically receive email alerts and other information about Travelers by enrolling your email by visiting the “Email Alert Service” section at http://investor.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 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 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 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 earned premiums.  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

11

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. 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. 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 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 primarily marketed on a domestic basis in the United Kingdom, Ireland and Canada, and on an international basis through Lloyd’s.  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, statements about the potential impact of the recent disruption in the investment markets and other economic conditions 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, expected current returns 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

12

patterns); the cost and availability of reinsurance coverage; catastrophe losses; investment performance; investment, economic and underwriting 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 and adversely affect our results of operations, our financial position and/or liquidity and could 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 materially and adversely affected; our business could be harmed because of our potential exposure to asbestos and environmental claims and related litigation; we are exposed to, and may face adverse developments involving, mass tort claims such as those relating to exposure to potentially harmful products or substances; the effects of emerging claim and coverage issues on our business are uncertain; we may not be able to collect all amounts due to us from reinsurers, and reinsurance coverage may not be available to us in the future at commercially reasonable rates or at all; the intense competition that we face could harm our ability to maintain or increase our profitability and premium volume; we are exposed to credit risk in certain of our business operations and in our investment portfolio; the insurance industry and we are 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 debt ratings could adversely impact 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; deteriorating economic conditions in the United States and abroad could adversely impact our ability to grow our business profitably, and inflation could result in an increase in loss costs which could negatively impact our profitability; the inability of our insurance subsidiaries to pay dividends to our holding company in sufficient amounts would harm our ability to meet our obligations and to pay future shareholder dividends; disruptions to our relationships with our independent agents and brokers could adversely affect us; we are subject to a number of risks associated with our business outside the United States including operational, legal and foreign exchange rate risk; we could be adversely affected if our controls to ensure compliance with guidelines, policies and legal and regulatory standards are not effective; our business success and profitability depend, in part, on effective information technology systems and on continuing to develop and implement improvements in technology; certain significant multiyear technology projects are currently in process but may not be successful; and if we experience difficulties with technology, data security and/or outsourcing relationships, our ability to conduct our business could be negatively impacted.

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

##

13

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions, except per share amounts, and after-tax)	2008			2007			2008			2007
Operating income	$	330		$	1,198		$	2,256		$	3,443
Net realized investment gains (losses)	(116		)	—			(133		)	95
Net income	$	214		$	1,198		$	2,123		$	3,538
Basic earnings per share
Operating income	$	0.56		$	1.85		$	3.75		$	5.22
Net realized investment gains (losses)	(0.20		)	—			(0.22		)	0.14
Net income	$	0.36		$	1.85		$	3.53		$	5.36
Diluted earnings per share
Operating income	$	0.55		$	1.81		$	3.69		$	5.08
Net realized investment gains (losses)	(0.19		)	—			(0.22		)	0.14
Net income	$	0.36		$	1.81		$	3.47		$	5.22
Weighted average number of common shares outstanding (basic)	587.5			648.4			600.7			658.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)	598.0			661.9			612.3			680.3
Common shares outstanding at period end	587.2			646.1			587.2			646.1
Common stock dividends declared	$	177		$	188		$	535		$	554
Operating income (loss) by segment
Business Insurance	$	378		$	803		$	1,719		$	2,286
Financial, Professional & International Insurance	83			183			495			491
Personal Insurance	(64		)	276			239			818
Total segment operating income	397			1,262			2,453			3,595
Interest Expense and Other	(67		)	(64		)	(197		)	(152		)
	$	330		$	1,198		$	2,256		$	3,443
Operating return on equity	5.1		%	18.6		%	11.7		%	18.2		%
Return on equity	3.4		%	18.6		%	10.9		%	18.6		%

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

14

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions, pre-tax)	2008			2007			2008			2007
Revenues
Premiums	$	5,448		$	5,416		$	16,145		$	16,038
Net investment income	716			929			2,309			2,879
Fee income	120			148			315			395
Net realized investment gains (losses)	(170		)	—			(196		)	142
Other revenues	31			33			99			72
	$	6,145		$	6,526		$	18,672		$	19,526
Revenues
Business Insurance	$	3,445		$	3,663		$	10,333		$	10,900
Financial, Professional & International Insurance	982			985			2,936			2,930
Personal Insurance	1,888			1,874			5,597			5,581
Total segment revenues	6,315			6,522			18,866			19,411
Interest Expense and Other	—			4			2			(27		)
	6,315			6,526			18,868			19,384
Net realized investment gains (losses)	(170		)	—			(196		)	142
	$	6,145		$	6,526		$	18,672		$	19,526
Gross written premiums
Business Insurance	$	3,215		$	3,243		$	9,610		$	9,951
Financial, Professional & International Insurance	965			978			2,976			3,016
Personal Insurance	1,954			1,876			5,542			5,463
	$	6,134		$	6,097		$	18,128		$	18,430
Net written premiums
Business Insurance	$	2,748		$	2,726		$	8,464		$	8,541
Financial, Professional & International Insurance	901			918			2,530			2,502
Personal Insurance	1,832			1,750			5,304			5,209
	$	5,481		$	5,394		$	16,298		$	16,252
GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	67.1		%	53.3		%	58.7		%	57.3		%
Underwriting expense ratio	34.2			30.7			33.0			30.5
Combined ratio	101.3		%	84.0		%	91.7		%	87.8		%
Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	62.9		%	48.3		%	50.9		%	51.9		%
Underwriting expense ratio	36.5			36.3			36.3			36.4
Combined ratio	99.4		%	84.6		%	87.2		%	88.3		%
Personal Insurance
Loss and loss adjustment expense ratio	77.9		%	56.8		%	69.4		%	57.8		%
Underwriting expense ratio	35.0			28.0			31.5			27.6
Combined ratio	112.9		%	84.8		%	100.9		%	85.4		%
Total Company (2)
Loss and loss adjustment expense ratio	69.9		%	53.6		%	60.9		%	56.6		%
Underwriting expense ratio	34.8			30.8			33.1			30.5
Combined ratio	104.7		%	84.4		%	94.0		%	87.1		%

(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 expense 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 September 30,						Nine Months Ended September 30,
($ in millions; after-tax except as noted)	2008			2007			2008			2007
Reconciliation of underwriting gain (loss) to net income
Pre-tax underwriting gain (loss)	$	(288	)	$	811		$	877		$	1,962
Tax (expense) benefit on underwriting results	80			(291		)	(346		)	(652		)
Underwriting gain (loss)	(208		)	520			531			1,310
Net investment income	587			724			1,861			2,219
Other, including interest expense	(49		)	(46		)	(136		)	(86		)
Consolidated operating income	330			1,198			2,256			3,443
Net realized investment gains (losses)	(116		)	—			(133		)	95
Net income	$	214		$	1,198		$	2,123		$	3,538

	As of
	September 30,			December 31,		September 30,
($ in millions; except per share data)	2008			2007		2007
Reconciliation of tangible and adjusted common shareholders’ equity to common shareholders’ equity
Tangible common shareholders’ equity	$	21,452		$	21,811	$	21,871
Goodwill and other intangibles, net of tax	3,995			4,073		4,100
Adjusted common shareholders’ equity	25,447			25,884		25,971
Net unrealized investment gains (losses), net of tax	(818		)	620		221
Common shareholders’ equity	$	24,629		$	26,504	$	26,192
Common shares outstanding	587.2			627.8		646.1
Tangible book value per share	$	36.53		$	34.74	$	33.85
Adjusted book value per share	43.34			41.23		40.20
Book value per share	$	41.94		$	42.22	$	40.54

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

###

Contacts
Media:	Institutional Investors:	Individual Investors:
Shane Boyd	Gabriella Nawi	Marc Parr
651.310.3846, or	917.778.6844, 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 - Third 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 (Loss)	16
Operating Income (Loss) by Major Component and Combined Ratio	17
Selected Statistics	18
Selected Statistics - Automobile	19
Selected Statistics - Homeowners and Other	20
Supplemental Detail
Interest Expense and Other	21
Consolidated Balance Sheet	22
Investment Portfolio	23
Investment Portfolio - Fixed Maturities Data	24
Investment Income	25
Net Realized and Unrealized Investment Gains (Losses)	26
Reinsurance Recoverables	27
Net Reserves for Losses and Loss Adjustment Expense	28
Asbestos and Environmental Reserves	29
Capitalization	30
Statutory to GAAP Shareholders’ Equity Reconciliation	31
Statement of Cash Flows	32
Statement of Cash Flows (continued)	33
Glossary of Financial Measures and Description of Reportable Business Segments	34
The information included in the Financial Supplement is unaudited. This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.

Index

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

																	YTD		YTD
	1Q		2Q			3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2007		2007			2007		2007		2008		2008		2008			2007		2008
Net income	$	1,086	$	1,254		$	1,198	$	1,063	$	967	$	942	$	214		$	3,538	$	2,123
Net income per share:
Basic	$	1.62	$	1.90		$	1.85	$	1.67	$	1.57	$	1.57	$	0.36		$	5.36	$	3.53
Diluted	$	1.56	$	1.86		$	1.81	$	1.64	$	1.54	$	1.54	$	0.36		$	5.22	$	3.47
Operating income	$	1,078	$	1,167		$	1,198	$	1,057	$	1,008	$	918	$	330		$	3,443	$	2,256
Operating income per share:
Basic	$	1.61	$	1.77		$	1.85	$	1.66	$	1.63	$	1.53	$	0.56		$	5.22	$	3.75
Diluted	$	1.55	$	1.73		$	1.81	$	1.63	$	1.61	$	1.50	$	0.55		$	5.08	$	3.69
Return on equity	17.3%		19.9%			18.6%		16.1%		14.6%		14.4%		3.4%			18.6%		10.9%
Operating return on equity	17.5%		18.6%			18.6%		16.3%		15.6%		14.3%		5.1%			18.2%		11.7%
Total assets, at period end	$	115,688	$	115,361		$	115,644	$	115,224	$	114,144	$	113,625	$	112,695		$	115,644	$	112,695
Total equity, at period end	$	25,357	$	25,322		$	26,307	$	26,616	$	26,388	$	25,923	$	24,721		$	26,307	$	24,721
Book value per share, at period end	$	37.93	$	38.36		$	40.54	$	42.22	$	43.31	$	43.56	$	41.94		$	40.54	$	41.94
Less: Net unrealized investment gains (losses), net of tax	0.67		(0.40		)	0.34		0.99		0.95		0.11		(1.40		)	0.34		(1.40		)
Adjusted book value per share, at period end	$	37.26	$	38.76		$	40.20	$	41.23	$	42.36	$	43.45	$	43.34		$	40.20	$	43.34
Weighted average number of common shares outstanding (basic)	669.9		658.6			648.4		634.5		616.2		598.7		587.5			658.9		600.7
Weighted average number of common shares outstanding and common stock equivalents (diluted)	701.2		676.0			661.9		648.7		628.1		610.8		598.0			680.3		612.3
Common shares outstanding at period end	665.3		657.0			646.1		627.8		606.9		592.8		587.2			646.1		587.2
Common stock dividends declared	$	174	$	192		$	188	$	184	$	178	$	180	$	177		$	554	$	535
Common stock repurchased:
Under repurchase authorization (1)
Shares	13.9		11.4			11.7		19.0		20.8		15.3		6.2			37.0		42.3
Cost	$	725	$	622		$	600	$	1,000	$	1,000	$	750	$	272		$	1,947	$	2,022
Other
Shares	0.6		0.7			0.2		0.2		0.6		0.1		0.1			1.5		0.8
Cost	$	31	$	36		$	10	$	12	$	28	$	7	$	2		$	77	$	37

(1)  Repurchased under Board of Director authorization.

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

Page 1

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Net income
Operating income	$	1,078		$	1,167		$	1,198		$	1,057		$	1,008		$	918		$	330		$	3,443		$	2,256
Net realized investment gains (losses)	8			87			-			6			(41		)	24			(116		)	95			(133		)
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967		$	942		$	214		$	3,538		$	2,123
Basic earnings per share
Operating income	$	1.61		$	1.77		$	1.85		$	1.66		$	1.63		$	1.53		$	0.56		$	5.22		$	3.75
Net realized investment gains (losses)	0.01			0.13			-			0.01			(0.06		)	0.04			(0.20		)	0.14			(0.22		)
Net income	$	1.62		$	1.90		$	1.85		$	1.67		$	1.57		$	1.57		$	0.36		$	5.36		$	3.53
Diluted earnings per share
Operating income	$	1.55		$	1.73		$	1.81		$	1.63		$	1.61		$	1.50		$	0.55		$	5.08		$	3.69
Net realized investment gains (losses)	0.01			0.13			-			0.01			(0.07		)	0.04			(0.19		)	0.14			(0.22		)
Net income	$	1.56		$	1.86		$	1.81		$	1.64		$	1.54		$	1.54		$	0.36		$	5.22		$	3.47
Adjustments to net income and weighted average shares for net income EPS calculations: (1)
																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Basic
Net income, as reported	$	1,086		$	1,254		$	1,198		$	1,063		$	967		$	942		$	214		$	3,538		$	2,123
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(1		)	(1		)	(1		)	(1		)	(3		)	(3		)
Net income available to common shareholders - basic	$	1,085		$	1,253		$	1,197		$	1,062		$	966		$	941		$	213		$	3,535		$	2,120
Diluted
Net income available to common shareholders - basic	$	1,085		$	1,253		$	1,197		$	1,062		$	966		$	941		$	213		$	3,535		$	2,120
Effect of dilutive securities:
Convertible preferred stock	1			1			1			1			1			1			1			3			3
Zero coupon convertible notes	1			1			1			1			1			1			1			3			3
Convertible junior subordinated notes (2)	7			1			-			-			-			-			-			8			-
Net income available to common shareholders - diluted	$	1,094		$	1,256		$	1,199		$	1,064		$	968		$	943		$	215		$	3,549		$	2,126
Common Shares
Basic
Weighted average shares outstanding	669.9			658.6			648.4			634.5			616.2			598.7			587.5			658.9			600.7
Diluted
Weighted average shares outstanding	669.9			658.6			648.4			634.5			616.2			598.7			587.5			658.9			600.7
Weighted average effects of dilutive securities:
Stock options and other incentive plans	9.1			8.9			8.3			9.0			6.9			7.1			5.8			9.5			6.7
Convertible preferred stock	3.1			3.0			2.8			2.8			2.6			2.6			2.3			2.9			2.5
Zero coupon convertible notes	2.4			2.4			2.4			2.4			2.4			2.4			2.4			2.4			2.4
Convertible junior subordinated notes (2)	16.7			3.1			-			-			-			-			-			6.6			-
Diluted weighted average shares outstanding	701.2			676.0			661.9			648.7			628.1			610.8			598.0			680.3			612.3

(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)  Redeemed in April 2007.

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

Page 2

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

																	YTD		YTD
	1Q		2Q		3Q		4Q		1Q			2Q		3Q			3Q		3Q
	2007		2007		2007		2007		2008			2008		2008			2007		2008
Revenues
Premiums	$	5,295	$	5,327	$	5,416	$	5,432	$	5,340		$	5,357	$	5,448		$	16,038	$	16,145
Net investment income	960		990		929		882		815			778		716			2,879		2,309
Fee income	120		127		148		113		105			90		120			395		315
Net realized investment gains (losses)	14		128		-		12		(62		)	36		(170		)	142		(196		)
Other revenues	38		1		33		52		34			34		31			72		99
Total revenues	6,427		6,573		6,526		6,491		6,232			6,295		6,145			19,526		18,672
Claims and expenses
Claims and claim adjustment expenses	3,189		3,096		2,985		3,127		3,021			3,092		3,871			9,270		9,984
Amortization of deferred acquisition costs	869		915		956		966		954			961		990			2,740		2,905
General and administrative expenses	833		836		817		866		853			864		1,001			2,486		2,718
Interest expense	76		85		94		91		90			91		95			255		276
Total claims and expenses	4,967		4,932		4,852		5,050		4,918			5,008		5,957			14,751		15,883
Income before income taxes	1,460		1,641		1,674		1,441		1,314			1,287		188			4,775		2,789
Income tax expense (benefit)	374		387		476		378		347			345		(26		)	1,237		666
Net income	$	1,086	$	1,254	$	1,198	$	1,063	$	967		$	942	$	214		$	3,538	$	2,123
Other statistics
Effective tax rate on net investment income	23.2%		23.4%		22.2%		21.1%		20.2%			19.8%		18.1%			22.9%		19.4%
Net investment income (after-tax)	$	737	$	758	$	724	$	696	$	650		$	624	$	587		$	2,219	$	1,861
Catastrophes, net of reinsurance:
Pre-tax	$	45	$	40	$	14	$	68	$	95		$	356	$	1,042		$	99	$	1,493
After-tax	$	29	$	26	$	9	$	45	$	62		$	231	$	682		$	64	$	975

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

Page 3

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

																					YTD			YTD
	1Q		2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007		2007			2007			2007			2008			2008			2008			2007			2008
Underwriting gain (loss)	$	341	$	449		$	520		$	389		$	401		$	338		$	(208	)	$	1,310		$	531
Net investment income	737		758			724			696			650			624			587			2,219			1,861
Other, including interest expense	-		(40		)	(46		)	(28		)	(43		)	(44		)	(49		)	(86		)	(136		)
Operating income	1,078		1,167			1,198			1,057			1,008			918			330			3,443			2,256
Net realized investment gains (losses)	8		87			-			6			(41		)	24			(116		)	95			(133		)
Net income	$	1,086	$	1,254		$	1,198		$	1,063		$	967		$	942		$	214		$	3,538		$	2,123
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	59.2%		57.1%			53.6%			56.6%			55.7%			57.0%			69.9%			56.6%			60.9%
Underwriting expense ratio	30.0%		30.7%			30.8%			31.8%			31.9%			32.3%			34.8%			30.5%			33.1%
Combined ratio	89.2%		87.8%			84.4%			88.4%			87.6%			89.3%			104.7%			87.1%			94.0%
Impact of catastrophes on combined ratio (3)	0.9%		0.8%			0.3%			1.3%			1.8%			6.6%			19.1%			0.6%			9.3%
Impact of prior year reserve development on combined ratio	-1.2%		-2.4%			-4.3%			-2.4%			-7.5%			-9.8%			-6.2%			-2.6%			-7.8%

(1)  Before policyholder dividends.

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

and underwriting expenses as follows:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Billing and policy fees	$	29	$	25	$	26	$	27	$	27	$	26	$	27	$	80	$	80
Fee income:
Loss and loss adjustment expenses	$	47	$	48	$	71	$	47	$	43	$	30	$	58	$	166	$	131
Underwriting expenses	73		79		77		66		62		60		62		229		184
Total fee income	$	120	$	127	$	148	$	113	$	105	$	90	$	120	$	395	$	315

(3)  The impact of catastrophes on the combined ratios for the three and nine months ended September 30, 2008 included 15.8 and 8.2 point impacts, respectively, on the loss and loss adjustment expense ratio, and 3.3

and 1.1 point impacts, respectively, on the underwriting expense ratio.

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

Page 4

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Revenues
Premiums	$	5,295	$	5,327	$	5,416	$	5,432	$	5,340	$	5,357	$	5,448	$	16,038	$	16,145
Net investment income	960		990		929		882		815		778		716		2,879		2,309
Fee income	120		127		148		113		105		90		120		395		315
Other revenues	38		1		33		52		34		34		31		72		99
Total revenues	6,413		6,445		6,526		6,479		6,294		6,259		6,315		19,384		18,868
Claims and expenses
Claims and claim adjustment expenses	3,189		3,096		2,985		3,127		3,021		3,092		3,871		9,270		9,984
Amortization of deferred acquisition costs	869		915		956		966		954		961		990		2,740		2,905
General and administrative expenses	833		836		817		866		853		864		1,001		2,486		2,718
Interest expense	76		85		94		91		90		91		95		255		276
Total claims and expenses	4,967		4,932		4,852		5,050		4,918		5,008		5,957		14,751		15,883
Operating income before income taxes	1,446		1,513		1,674		1,429		1,376		1,251		358		4,633		2,985
Income tax expense	368		346		476		372		368		333		28		1,190		729
Operating income	$	1,078	$	1,167	$	1,198	$	1,057	$	1,008	$	918	$	330	$	3,443	$	2,256
Other statistics
Effective tax rate on net investment income	23.2%		23.4%		22.2%		21.1%		20.2%		19.8%		18.1%		22.9%		19.4%
Net investment income (after-tax)	$	737	$	758	$	724	$	696	$	650	$	624	$	587	$	2,219	$	1,861
Catastrophes, net of reinsurance:
Pre-tax	$	45	$	40	$	14	$	68	$	95	$	356	$	1,042	$	99	$	1,493
After-tax	$	29	$	26	$	9	$	45	$	62	$	231	$	682	$	64	$	975

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

Page 5

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

																			YTD		YTD
	1Q			2Q		3Q			4Q		1Q			2Q		3Q			3Q		3Q
	2007			2007		2007			2007		2008			2008		2008			2007		2008
Statutory underwriting
Gross written premiums	$	6,071		$	6,262	$	6,097		$	5,768	$	5,933		$	6,061	$	6,134		$	18,430	$	18,128
Net written premiums	$	5,144		$	5,714	$	5,394		$	5,366	$	5,188		$	5,629	$	5,481		$	16,252	$	16,298
Net earned premiums	$	5,295		$	5,327	$	5,416		$	5,432	$	5,340		$	5,357	$	5,448		$	16,038	$	16,145
Losses and loss adjustment expenses	3,128			3,059		2,921			3,067		2,978			3,118		3,781			9,108		9,877
Underwriting expenses	1,670			1,732		1,694			1,676		1,706			1,766		1,811			5,096		5,283
Statutory underwriting gain (loss)	497			536		801			689		656			473		(144		)	1,834		985
Policyholder dividends	7			6		11			8		7			9		4			24		20
Statutory underwriting gain (loss) after policyholder dividends	$	490		$	530	$	790		$	681	$	649		$	464	$	(148	)	$	1,810	$	965
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	42,942		$	43,029	$	43,000		$	43,068	$	42,840		$	42,885	$	42,848		$	43,000	$	42,848
Increase (decrease) in reserves	$	(6	)	$	87	$	(29	)	$	68	$	(228	)	$	45	$	(37	)	$	52	$	(220	)
Statutory surplus	$	21,204		$	21,843	$	22,221		$	22,878	$	22,353		$	22,288	$	21,929		$	22,221	$	21,929
Net written premiums/surplus (1)	1.01:1			0.99:1		0.98:1			0.94:1		0.97:1			0.97:1		0.99:1			0.98:1		0.99:1

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

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

Page 6

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Written premiums
Gross	$	6,071		$	6,262		$	6,097		$	5,768		$	5,933		$	6,061		$	6,134		$	18,430		$	18,128
Ceded	(927		)	(548		)	(703		)	(402		)	(745		)	(432		)	(653		)	(2,178		)	(1,830		)
Net	$	5,144		$	5,714		$	5,394		$	5,366		$	5,188		$	5,629		$	5,481		$	16,252		$	16,298
Earned premiums
Gross	$	6,001		$	6,031		$	6,073		$	6,075		$	5,932		$	5,957		$	6,035		$	18,105		$	17,924
Ceded	(706		)	(704		)	(657		)	(643		)	(592		)	(600		)	(587		)	(2,067		)	(1,779		)
Net	$	5,295		$	5,327		$	5,416		$	5,432		$	5,340		$	5,357		$	5,448		$	16,038		$	16,145

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

Page 7

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Revenues
Premiums	$	2,763	$	2,802	$	2,850	$	2,868	$	2,786	$	2,781	$	2,823	$	8,415	$	8,390
Net investment income	694		717		664		633		573		540		494		2,075		1,607
Fee income	120		127		148		113		105		90		120		395		315
Other revenues	4		10		1		9		6		7		8		15		21
Total revenues	3,581		3,656		3,663		3,623		3,470		3,418		3,445		10,900		10,333
Claims and expenses
Claims and claim adjustment expenses	1,741		1,664		1,594		1,674		1,558		1,556		1,952		4,999		5,066
Amortization of deferred acquisition costs	403		435		451		453		451		451		466		1,289		1,368
General and administrative expenses	509		503		504		512		516		516		565		1,516		1,597
Interest expense	-		-		1		-		-		-		-		1		-
Total claims and expenses	2,653		2,602		2,550		2,639		2,525		2,523		2,983		7,805		8,031
Operating income before federal income taxes	928		1,054		1,113		984		945		895		462		3,095		2,302
Income taxes	250		249		310		255		262		237		84		809		583
Operating income	$	678	$	805	$	803	$	729	$	683	$	658	$	378	$	2,286	$	1,719
Other statistics
Effective tax rate on net investment income	23.1%		23.3%		22.0%		20.8%		19.7%		19.2%		17.4%		22.8%		18.8%
Net investment income (after-tax)	$	534	$	550	$	518	$	502	$	460	$	436	$	409	$	1,602	$	1,305
Catastrophes, net of reinsurance:
Pre-tax	$	-	$	-	$	-	$	4	$	57	$	185	$	488	$	-	$	730
After-tax	$	-	$	-	$	-	$	3	$	37	$	120	$	318	$	-	$	475

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

Page 8

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

																YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2007		2007		2007		2007		2008		2008		2008			2007		2008
Underwriting gain (loss)	$	140	$	249	$	284	$	221	$	219	$	217	$	(35	)	$	673	$	401
Net investment income	534		550		518		502		460		436		409			1,602		1,305
Other	4		6		1		6		4		5		4			11		13
Operating income	$	678	$	805	$	803	$	729	$	683	$	658	$	378		$	2,286	$	1,719
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	61.2%		57.6%		53.3%		56.6%		54.2%		54.7%		67.1%			57.3%		58.7%
Underwriting expense ratio	30.3%		30.5%		30.7%		31.2%		32.4%		32.4%		34.2%			30.5%		33.0%
Combined ratio	91.5%		88.1%		84.0%		87.8%		86.6%		87.1%		101.3%			87.8%		91.7%
Impact of catastrophes on combined ratio (3)	0.0%		0.0%		0.0%		0.1%		2.1%		6.6%		17.3%			0.0%		8.7%
Impact of prior year reserve development on combined ratio	-0.9%		-2.1%		-5.9%		-1.7%		-11.2%		-12.8%		-8.7%			-3.0%		-10.9%

(1)  Before policyholder dividends.

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

and underwriting expenses as follows:

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Billing and policy fees	$	3	$	3	$	3	$	4	$	3	$	4	$	3	$	9	$	10
Fee income:
Loss and loss adjustment expenses	$	47	$	48	$	71	$	47	$	43	$	30	$	58	$	166	$	131
Underwriting expenses	73		79		77		66		62		60		62		229		184
Total fee income	$	120	$	127	$	148	$	113	$	105	$	90	$	120	$	395	$	315

(3)  The impact of catastrophes on the combined ratios for the three and nine months ended September 30, 2008 included 14.6 and 7.8 point impacts, respectively, on the loss and loss adjustment expense ratio, and 2.7

and 0.9 point impacts, respectively, on the underwriting expense ratio.

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

Page 9

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	3,387	$	3,321	$	3,243	$	3,066	$	3,308	$	3,087	$	3,215	$	9,951	$	9,610
Net written premiums	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911	$	2,805	$	2,748	$	8,541	$	8,464
Net earned premiums	$	2,763	$	2,802	$	2,850	$	2,868	$	2,786	$	2,781	$	2,823	$	8,415	$	8,390
Losses and loss adjustment expenses	1,684		1,628		1,530		1,616		1,517		1,576		1,868		4,842		4,961
Underwriting expenses	866		882		870		867		903		897		922		2,618		2,722
Statutory underwriting gain	213		292		450		385		366		308		33		955		707
Policyholder dividends	3		3		5		4		4		6		2		11		12
Statutory underwriting gain after policyholder dividends	$	210	$	289	$	445	$	381	$	362	$	302	$	31	$	944	$	695

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

Page 10

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Net written premiums by market
Select Accounts	$	701	$	731	$	637	$	642	$	708	$	724	$	662	$	2,069	$	2,094
Commercial Accounts	641		581		615		681		673		550		635		1,837		1,858
National Accounts	255		286		245		270		246		241		240		786		727
Industry-Focused Underwriting	582		580		584		555		613		584		613		1,746		1,810
Target Risk Underwriting	417		475		394		379		423		445		366		1,286		1,234
Specialized Distribution	252		276		243		244		244		259		228		771		731
Total core	2,848		2,929		2,718		2,771		2,907		2,803		2,744		8,495		8,454
Business Insurance other	32		6		8		6		4		2		4		46		10
Total	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911	$	2,805	$	2,748	$	8,541	$	8,464
Net written premiums by product line
Commercial multi-peril	$	805	$	778	$	713	$	770	$	791	$	726	$	693	$	2,296	$	2,210
Workers’ compensation	614		553		538		562		674		566		598		1,705		1,838
Commercial automobile	506		526		493		486		500		476		511		1,525		1,487
Property	494		549		476		471		482		515		433		1,519		1,430
General liability	434		527		501		481		462		520		510		1,462		1,492
Other	27		2		5		7		2		2		3		34		7
Total	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911	$	2,805	$	2,748	$	8,541	$	8,464
National accounts
Additions to claim volume under administration (1)	$	836	$	640	$	554	$	641	$	712	$	522	$	482	$	2,030	$	1,716
Written fees	$	123	$	104	$	100	$	93	$	103	$	80	$	85	$	327	$	268

(1)  Includes new and renewal business.

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

Page 11

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Revenues
Premiums	$	844	$	844	$	854	$	842	$	847	$	852	$	863	$	2,542	$	2,562
Net investment income	121		125		126		122		122		120		114		372		356
Other revenues	5		6		5		13		5		8		5		16		18
Total revenues	970		975		985		977		974		980		982		2,930		2,936
Claims and expenses
Claims and claim adjustment expenses	451		464		419		403		390		376		545		1,334		1,311
Amortization of deferred acquisition costs	163		160		166		165		159		163		166		489		488
General and administrative expenses	145		146		144		155		144		149		149		435		442
Interest expense	-		-		-		-		-		1		1		-		2
Total claims and expenses	759		770		729		723		693		689		861		2,258		2,243
Operating income before federal income taxes	211		205		256		254		281		291		121		672		693
Income taxes	55		53		73		70		73		87		38		181		198
Operating income	$	156	$	152	$	183	$	184	$	208	$	204	$	83	$	491	$	495
Other statistics
Effective tax rate on net investment income	24.6%		24.5%		24.0%		23.6%		23.5%		23.5%		22.0%		24.3%		23.0%
Net investment income (after-tax)	$	91	$	95	$	95	$	94	$	93	$	92	$	89	$	281	$	274
Catastrophes, net of reinsurance:
Pre-tax	$	-	$	-	$	-	$	-	$	-	$	6	$	91	$	-	$	97
After-tax	$	-	$	-	$	-	$	-	$	-	$	4	$	64	$	-	$	68

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

Page 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			3Q		3Q
	2007		2007		2007		2007		2008		2008		2008			2007		2008
Underwriting gain (loss)	$	62	$	53	$	84	$	83	$	112	$	107	$	(8	)	$	199	$	211
Net investment income	91		95		95		94		93		92		89			281		274
Other	3		4		4		7		3		5		2			11		10
Operating income	$	156	$	152	$	183	$	184	$	208	$	204	$	83		$	491	$	495
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0%		54.7%		48.3%		47.4%		45.7%		43.7%		62.9%			51.9%		50.9%
Underwriting expense ratio	36.4%		36.3%		36.3%		37.9%		35.7%		36.7%		36.5%			36.4%		36.3%
Combined ratio	89.4%		91.0%		84.6%		85.3%		81.4%		80.4%		99.4%			88.3%		87.2%
Impact of catastrophes on combined ratio (2)	0.0%		0.0%		0.0%		0.0%		0.0%		0.6%		10.5%			0.0%		3.8%
Impact of prior year reserve development on combined ratio	0.0%		-1.7%		-4.8%		-4.3%		-7.4%		-15.5%		-4.9%			-2.2%		-9.2%

(1)  Before policyholder dividends.

(2)  The impact of catastrophes on the combined ratios for the three and nine months ended September 30, 2008 included 9.8 and 3.5 point impacts, respectively, on the loss and loss adjustment expense ratio, and 0.7 and 0.3 point impacts, respectively, on the underwriting expense ratio.

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

Page 13

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	975	$	1,063	$	978	$	1,021	$	946	$	1,065	$	965	$	3,016	$	2,976
Net written premiums	$	600	$	984	$	918	$	963	$	644	$	985	$	901	$	2,502	$	2,530
Net earned premiums	$	844	$	844	$	854	$	842	$	847	$	852	$	863	$	2,542	$	2,562
Losses and loss adjustment expenses	447		463		419		401		387		383		539		1,329		1,309
Underwriting expenses	322		314		302		305		311		317		299		938		927
Statutory underwriting gain	75		67		133		136		149		152		25		275		326
Policyholder dividends	4		3		6		4		3		3		2		13		8
Statutory underwriting gain after policyholder dividends	$	71	$	64	$	127	$	132	$	146	$	149	$	23	$	262	$	318

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

Page 14

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Net written premiums by market
Bond & Financial Products excluding Afianzadora Insurgentes	$	292	$	652	$	655	$	604	$	378	$	621	$	643	$	1,599	$	1,642
Afianzadora Insurgentes (1)	19		6		-		-		-		-		-		25		-
Total Bond & Financial Products	311		658		655		604		378		621		643		1,624		1,642
International	289		326		263		359		266		364		258		878		888
Total	$	600	$	984	$	918	$	963	$	644	$	985	$	901	$	2,502	$	2,530
Net written premiums by product line
General liability	$	96	$	275	$	284	$	287	$	101	$	259	$	271	$	655	$	631
Fidelity & surety	180		344		341		287		239		328		341		865		908
International	289		326		263		359		266		364		258		878		888
Other	35		39		30		30		38		34		31		104		103
Total	$	600	$	984	$	918	$	963	$	644	$	985	$	901	$	2,502	$	2,530

(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.

Page 15

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

																YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2007		2007		2007		2007		2008		2008		2008			2007		2008
Revenues
Premiums	$	1,688	$	1,681	$	1,712	$	1,722	$	1,707	$	1,724	$	1,762		$	5,081	$	5,193
Net investment income	145		148		139		127		120		118		108			432		346
Other revenues	24		21		23		22		21		19		18			68		58
Total revenues	1,857		1,850		1,874		1,871		1,848		1,861		1,888			5,581		5,597
Claims and expenses
Claims and claim adjustment expenses	997		968		972		1,050		1,073		1,160		1,374			2,937		3,607
Amortization of deferred acquisition costs	303		320		339		348		344		347		358			962		1,049
General and administrative expenses	170		177		162		190		181		193		281			509		655
Total claims and expenses	1,470		1,465		1,473		1,588		1,598		1,700		2,013			4,408		5,311
Operating income (loss) before federal income taxes	387		385		401		283		250		161		(125		)	1,173		286
Income taxes	121		109		125		82		69		39		(61		)	355		47
Operating income (loss)	$	266	$	276	$	276	$	201	$	181	$	122	$	(64	)	$	818	$	239
Other statistics
Effective tax rate on net investment income	22.8%		22.8%		21.6%		20.1%		19.1%		18.9%		17.2%			22.4%		18.4%
Net investment income (after-tax)	$	112	$	113	$	111	$	100	$	97	$	96	$	89		$	336	$	282
Catastrophes, net of reinsurance:
Pre-tax	$	45	$	40	$	14	$	64	$	38	$	165	$	463		$	99	$	666
After-tax	$	29	$	26	$	9	$	42	$	25	$	107	$	300		$	64	$	432

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

Page 16

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

																YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2007		2007		2007		2007		2008		2008		2008			2007		2008
Underwriting gain (loss)	$	139	$	147	$	152	$	85	$	70	$	14	$	(165	)	$	438	$	(81	)
Net investment income	112		113		111		100		97		96		89			336		282
Other	15		16		13		16		14		12		12			44		38
Operating income (loss)	$	266	$	276	$	276	$	201	$	181	$	122	$	(64	)	$	818	$	239
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	59.0%		57.6%		56.8%		61.0%		62.9%		67.3%		77.9%			57.8%		69.4%
Underwriting expense ratio	26.5%		28.3%		28.0%		29.8%		29.3%		30.0%		35.0%			27.6%		31.5%
Combined ratio	85.5%		85.9%		84.8%		90.8%		92.2%		97.3%		112.9%			85.4%		100.9%
Impact of catastrophes on combined ratio (2)	2.7%		2.4%		0.8%		3.7%		2.2%		9.6%		26.2%			1.9%		12.8%
Impact of prior year reserve development on combined ratio	-2.1%		-3.0%		-1.4%		-2.5%		-1.5%		-2.2%		-2.5%			-2.1%		-2.1%

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Billing and policy fees	$	26	$	22	$	23	$	23	$	24	$	22	$	24	$	71	$	70

(2)  The impact of catastrophes on the combined ratios for the three and nine months ended September 30, 2008 included 20.8 and 11.0 point impacts, respectively, on the loss and loss adjustment expense ratio, and 5.4 and 1.8 point impacts, respectively, on the underwriting expense ratio.

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

Page 17

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

																YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2007		2007		2007		2007		2008		2008		2008			2007		2008
Statutory underwriting
Gross written premiums	$	1,709	$	1,878	$	1,876	$	1,681	$	1,679	$	1,909	$	1,954		$	5,463	$	5,542
Net written premiums	$	1,664	$	1,795	$	1,750	$	1,626	$	1,633	$	1,839	$	1,832		$	5,209	$	5,304
Net earned premiums	$	1,688	$	1,681	$	1,712	$	1,722	$	1,707	$	1,724	$	1,762		$	5,081	$	5,193
Losses and loss adjustment expenses	997		968		972		1,050		1,074		1,159		1,374			2,937		3,607
Underwriting expenses	482		536		522		504		492		552		590			1,540		1,634
Statutory underwriting gain (loss)	$	209	$	177	$	218	$	168	$	141	$	13	$	(202	)	$	604	$	(48	)
Policies in force (in thousands) (1)
Automobile	2,456		2,464		2,473		2,479		2,495		2,526		2,538			2,473		2,538
Homeowners and other	4,579		4,631		4,666		4,682		4,702		4,755		4,808			4,666		4,808

(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.

Page 18

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	975	$	927	$	914	$	857	$	930	$	939	$	938	$	2,816	$	2,807
Net written premiums:
Excluding Mendota	$	916	$	915	$	901	$	847	$	922	$	933	$	929	$	2,732	$	2,784
Mendota (1)	49		-		-		-		-		-		-		49		-
Total	$	965	$	915	$	901	$	847	$	922	$	933	$	929	$	2,781	$	2,784
Net earned premiums	$	939	$	912	$	920	$	921	$	911	$	919	$	937	$	2,771	$	2,767
Losses and loss adjustment expenses	595		593		599		622		649		637		655		1,787		1,941
Underwriting expenses	254		262		253		243		262		271		270		769		803
Statutory underwriting gain	$	90	$	57	$	68	$	56	$	-	$	11	$	12	$	215	$	23
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	63.3%		65.1%		65.1%		67.6%		71.3%		69.3%		69.9%		64.5%		70.2%
Underwriting expense ratio	24.1%		26.6%		26.3%		27.2%		27.7%		28.6%		28.5%		25.7%		28.3%
Combined ratio	87.4%		91.7%		91.4%		94.8%		99.0%		97.9%		98.4%		90.2%		98.5%
Impact of catastrophes on combined ratio	0.1%		0.4%		0.0%		0.0%		0.0%		1.5%		0.7%		0.2%		0.7%
Catastrophe losses, net of reinsurance:
Pre-tax	$	1	$	4	$	-	$	-	$	-	$	14	$	6	$	5	$	20
After-tax	$	1	$	2	$	-	$	-	$	-	$	9	$	4	$	3	$	13
Policies in force (in thousands) (3)	2,456		2,464		2,473		2,479		2,495		2,526		2,538
Change from prior year quarter (3)	6.3%		3.6%		1.7%		1.2%		1.6%		2.5%		2.6%
Change from prior quarter (3)	0.2%		0.3%		0.4%		0.2%		0.6%		1.2%		0.5%

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

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007		2007		2007		2007		2008		2008		2008		2007		2008
Billing and policy fees	$	17	$	13	$	14	$	13	$	14	$	13	$	14	$	44	$	41

(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.

Page 19

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

																	YTD		YTD
	1Q			2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
	2007			2007		2007		2007		2008		2008		2008			2007		2008
Statutory underwriting
Gross written premiums		$	734	$	951	$	962	$	824	$	749	$	970	$	1,016		$	2,647	$	2,735
Net written premiums		$	699	$	880	$	849	$	779	$	711	$	906	$	903		$	2,428	$	2,520
Net earned premiums		$	749	$	769	$	792	$	801	$	796	$	805	$	825		$	2,310	$	2,426
Losses and loss adjustment expenses			402		375		373		428		425		522		719			1,150		1,666
Underwriting expenses			228		274		269		261		230		281		320			771		831
Statutory underwriting gain (loss)		$	119	$	120	$	150	$	112	$	141	$	2	$	(214	)	$	389	$	(71	)
Other statistics
GAAP Combined ratio (1):
Loss and loss adjustment expense ratio			53.7%		48.7%		47.1%		53.4%		53.3%		64.9%		87.1%			49.8%		68.7%
Underwriting expense ratio			29.4%		30.2%		30.0%		32.9%		31.3%		31.6%		42.4%			29.9%		35.1%
Combined ratio			83.1%		78.9%		77.1%		86.3%		84.6%		96.5%		129.5%			79.7%		103.8%
Impact of catastrophes on combined ratio			5.9%		4.6%		1.8%		8.0%		4.8%		18.8%		55.3%			4.1%		26.6%
Catastrophe losses, net of reinsurance:
Pre-tax		$	44	$	36	$	14	$	64	$	38	$	151	$	457		$	94	$	646
After-tax		$	28	$	24	$	9	$	42	$	25	$	98	$	296		$	61	$	419
Policies in force (in thousands) (2)			4,579		4,631		4,666		4,682		4,702		4,755		4,808
Change from prior year quarter (2)			7.2%		5.6%		3.9%		3.0%		2.7%		2.7%		3.0%
Change from prior quarter (2)			0.8%		1.1%		0.8%		0.3%		0.4%		1.1%		1.1%

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

Billing and policy fees are as follows:

																YTD		YTD
	1Q			2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2007			2007		2007		2007		2008		2008		2008		2007		2008
Billing and policy fees		$	9	$	9	$	9	$	10	$	10	$	9	$	10	$	27	$	29

(2)  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.

Page 20

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

																							YTD			YTD
	1Q				2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007				2007			2007			2007			2008			2008			2008			2007			2008
Revenues		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Net investment income			5			(36	)		4			8			2			-			-			(27	)		2
Other revenues (1)			5			(36	)		4			8			2			-			-			(27	)		2
Total revenues
Claims and expenses
Interest expense			76			85			93			91			90			90			94			254			274
General and administrative expenses			9			10			7			9			12			6			6			26			24
Total claims and expenses			85			95			100			100			102			96			100			280			298
Operating loss before federal income tax benefit			(80	)		(131	)		(96	)		(92	)		(100	)		(96	)		(100	)		(307	)		(296	)
Income taxes			(58	)		(65	)		(32	)		(35	)		(36	)		(30	)		(33	)		(155	)		(99	)
Operating loss		$	(22	)	$	(66	)	$	(64	)	$	(57	)	$	(64	)	$	(66	)	$	(67	)	$	(152	)	$	(197	)

(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.

Page 21

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

	September 30,		December 31,			September 30,			December 31,
	2008 (1)		2007			2008 (1)			2007
Assets					Liabilities
Fixed maturities, available for sale at fair value					Claims and claim adjustment expense reserves	$	57,027		$	57,700
(including $15 and $1,988 subject to securities					Unearned premium reserves	11,377			11,227
lending) (amortized cost $62,897 and $64,152)	$	61,491	$	64,920	Contractholder payables	6,877			6,696
Equity securities, at fair value (cost $472 and $473)	447		488		Payables for reinsurance premiums	766			618
Real estate	830		850		Debt	6,331			6,242
Short-term securities	5,124		5,186		Other liabilities	5,596			6,125
Other investments	3,307		3,374		Total liabilities	87,974			88,608
Total investments	71,199		74,818
Cash	387		271
Investment income accrued	830		861
Premiums receivable	6,189		6,142		Shareholders’ equity
Reinsurance recoverables	15,108		15,641		Preferred Stock Savings Plan - convertible preferred
Ceded unearned premiums	1,169		1,123		stock (0.3 shares issued and outstanding)	92			112
Deferred acquisition costs	1,854		1,809		Common stock (1,750.0 shares authorized; 587.2 and 627.8
Deferred tax asset	1,952		1,207		shares issued and outstanding)	19,196			18,990
Contractholder receivables	6,877		6,696		Retained earnings	12,690			11,110
Goodwill	3,366		3,366		Accumulated other changes in equity from nonowner sources	(932		)	670
Other intangible assets	716		814		Treasury stock, at cost (126.0 and 82.9 shares)	(6,325		)	(4,266		)
Other assets	3,048		2,476		Total shareholders’ equity	24,721			26,616
Total assets	$	112,695	$	115,224	Total liabilities and shareholders’ equity	$	112,695		$	115,224

(1) Preliminary.

Page 22

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

	September 30,			Pre-tax Book		December 31,		Pre-tax Book
	2008			Yield (1)		2007		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	23,854			5.26%	$	26,369		5.21%
Tax-exempt fixed maturities		37,637			4.19%		38,551		4.16%
Total fixed maturities		61,491			4.61%		64,920		4.59%
Non-redeemable preferred stocks		261			6.51%		305		6.27%
Common stocks		186					183
Total equity securities		447					488
Real estate		830					850
Short-term securities		5,124			2.40%		5,186		4.95%
Private equities		1,585					1,437
Hedge funds		639					914
Real estate joint ventures & other		965					948
Mortgage loans		93			7.08%		45		7.31%
Trading securities		25					30
Total other investments		3,307					3,374
Total investments	$	71,199				$	74,818
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	(818	)			$	620

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

Page 23

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

	September 30,		December 31,
	2008		2007
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	1,935	$	2,150
Obligations of states and political subdivisions		37,882		38,822
Debt securities issued by foreign governments		1,515		1,635
Mortgage-backed securities - principally obligations of U.S. Government agencies		6,284		7,116
Corporates (including redeemable preferreds)		13,875		15,197
Total fixed maturities	$	61,491	$	64,920

Fixed Maturities

Quality Characteristics (1)

	September 30, 2008
		Amount		% of Total
Quality Ratings
Aaa		$	31,622	51.4%
Aa			19,799	32.2
A			5,596	9.1
Baa			2,984	4.9
Total investment grade			60,001	97.6
Ba			751	1.2
B			538	0.9
Caa and lower			201	0.3
Total below investment grade			1,490	2.4
Total fixed maturities		$	61,491	100.0%
Average weighted quality			Aa1, AA+
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases			4.1

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

Page 24

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

																	YTD		YTD
		1Q		2Q		3Q		4Q		1Q		2Q		3Q			3Q		3Q
		2007		2007		2007		2007		2008		2008		2008			2007		2008
Gross investment income
Fixed maturities	$	709	$	712	$	731	$	741	$	736	$	726	$	727		$	2,152	$	2,189
Short-term securities		73		64		76		66		52		32		36			213		120
Other		193		229		137		89		39		32		(37	)		559		34
		975		1,005		944		896		827		790		726			2,924		2,343
Investment expenses		15		15		15		14		12		12		10			45		34
Net investment income, pre-tax		960		990		929		882		815		778		716			2,879		2,309
Income taxes		223		232		205		186		165		154		129			660		448
Net investment income, after-tax	$	737	$	758	$	724	$	696	$	650	$	624	$	587		$	2,219	$	1,861
Effective tax rate		23.2%		23.4%		22.2%		21.1%		20.2%		19.8%		18.1%			22.9%		19.4%
Average invested assets (1)	$	72,737	$	73,063	$	74,451	$	75,215	$	74,733	$	74,156	$	74,256		$	73,431	$	74,426
Average yield pre-tax (1)		5.3%		5.4%		5.0%		4.7%		4.4%		4.2%		3.9%			5.2%		4.1%
Average yield after-tax		4.1%		4.2%		3.9%		3.7%		3.5%		3.4%		3.2%			4.0%		3.3%

(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.

Page 25

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Net realized investment gains (losses)
Fixed maturities	$	9		$	13		$	(7	)	$	(10	)	$	(32	)	$	6		$	(153	)	$	15		$	(179	)
Equity securities	2			3			(1		)	(2		)	(1		)	(14		)	(28		)	4			(43		)
Other (1) (2)	3			112			8			24			(29		)	44			11			123			26
Realized investment gains (losses) before tax	14			128			-			12			(62		)	36			(170		)	142			(196		)
Related taxes	6			41			-			6			(21		)	12			(54		)	47			(63		)
Net realized investment gains (losses)	$	8		$	87		$	-		$	6		$	(41	)	$	24		$	(116	)	$	95		$	(133	)
Gross investment gains (2)	$	69		$	173		$	64		$	155		$	89		$	138		$	91		$	306		$	318
Gross investment losses before impairments (2)	(46		)	(36		)	(50		)	(105		)	(113		)	(74		)	(105		)	(132		)	(292		)
Impairments	(9		)	(9		)	(14		)	(38		)	(38		)	(28		)	(156		)	(32		)	(222		)
Realized investment gains (losses) before tax	14			128			-			12			(62		)	36			(170		)	142			(196		)
Related taxes	6			41			-			6			(21		)	12			(54		)	47			(63		)
Net realized investment gains (losses)	$	8		$	87		$	-		$	6		$	(41	)	$	24		$	(116	)	$	95		$	(133	)
	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,
	2007			2007			2007			2007			2008			2008			2008
Net unrealized investment gains (losses), net of tax, by asset type
Fixed maturities	$	417		$	(591	)	$	155		$	768		$	695		$	(73	)	$	(1,406	)
Equity securities & other	252			174			175			169			168			159			115
Unrealized investment gains (losses) before tax	669			(417		)	330			937			863			86			(1,291		)
Related taxes	230			(154		)	109			317			287			23			(473		)
Balance, end of period	$	439		$	(263	)	$	221		$	620		$	576		$	63		$	(818	)
(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		$	49		$	48		$	49		$	139
Gross investment Treasury future losses	$	19		$	11		$	18		$	30		$	56		$	39		$	52		$	48		$	147

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.

Page 26

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

		September 30,			December 31,
		2008			2007
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses		$	10,331		$	10,731
Allowance for uncollectible reinsurance			(707	)		(688	)
Net reinsurance recoverables			9,624			10,043
Mandatory pools and associations			1,944			1,983
Structured settlements			3,540			3,615
Total reinsurance recoverables		$	15,108		$	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	September 30,			December 31,
Reinsurer	Predominant Reinsurer	2008			2007
Swiss Re Group	A+ second highest of 16 ratings	$	1,123		$	1,266
Munich Re Group	A+ second highest of 16 ratings		877			994
Berkshire Hathaway Group	A++ highest of 16 ratings		563			591
Transatlantic Holdings, Inc. (1)	A third highest of 16 ratings		519			475
XL Capital Group	A third highest of 16 ratings		502			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 September 30, 2008, after deducting mandatory pool and structured settlement balances, $7.4 billion, or 77%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% 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, 9% related to recoverables from captive insurance companies and 7% were balances from other companies not rated by A.M. Best Company.  In addition, $2.7 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at September 30, 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 recoverables from annuities that were purchased from life insurance companies to settle personal physical injury claims, with workers’ compensation claims comprising a significant proportion.  In cases where the Company did not receive a release from the claimant, the Company retains the liability to the claimant in the event that the life insurance company fails to pay; accordingly, the Company continues to report the amount due from the life insurance company as a liability and as a recoverable for GAAP purposes.  The Company’s top five groups by structured settlement is as follows:

	A.M. Best Rating of Group’s	September 30,		December 31,
Group	Predominant Insurer	2008		2007
Old Mutual	A third highest of 16 ratings	$	1,081	$	1,087
Metlife	A+ second highest of 16 ratings		562		578
Genworth	A+ second highest of 16 ratings		489		496
Symetra	A third highest of 16 ratings		300		307
ING Group	A+ second highest of 16 ratings		243		248

(1)  As a result of the September 29, 2008 announcement that a Special Committee of Transatlantic Holdings, Inc.’s (TRH) independent directors is evaluating proposals received from AIG relating to the possible disposition of AIG’s 59% common stock interest in TRH, as well as possible business combination transactions involving TRH’s outstanding shares, the reinsurance recoverables from TRH are now being reported separately.  These amounts were previously reported combined with the reinsurance recoverables from AIG (totaling $69 million and $78 million at September 30, 2008 and December 31, 2007 exclusive of TRH, respectively).

Page 27

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Business Insurance
Beginning of period	$	34,444		$	34,456		$	34,295		$	34,131		$	34,021		$	33,718		$	33,649		$	34,444		$	34,021
Incurred	1,684			1,628			1,530			1,616			1,517			1,576			1,868			4,842			4,961
Paid	(1,661		)	(1,814		)	(1,708		)	(1,767		)	(1,736		)	(1,696		)	(2,148		)	(5,183		)	(5,580		)
Acquired reserves, foreign exchange and other	(11		)	25			14			41			(84		)	51			(59		)	28			(92		)
End of period	$	34,456		$	34,295		$	34,131		$	34,021		$	33,718		$	33,649		$	33,310		$	34,131		$	33,310
Financial, Professional & International Insurance
Beginning of period	$	5,014		$	4,991		$	5,285		$	5,416		$	5,520		$	5,590		$	5,650		$	5,014		$	5,520
Incurred	447			463			419			401			387			383			539			1,329			1,309
Paid	(318		)	(256		)	(333		)	(339		)	(324		)	(294		)	(324		)	(907		)	(942		)
Acquired (sold) reserves, foreign exchange and other (1)	(152		)	87			45			42			7			(29		)	(162		)	(20		)	(184		)
End of period	$	4,991		$	5,285		$	5,416		$	5,520		$	5,590		$	5,650		$	5,703		$	5,416		$	5,703
Personal Insurance
Beginning of period	$	3,490		$	3,495		$	3,449		$	3,453		$	3,527		$	3,532		$	3,586		$	3,490		$	3,527
Incurred	997			968			972			1,050			1,074			1,159			1,374			2,937			3,607
Paid	(992		)	(952		)	(968		)	(976		)	(1,069		)	(1,105		)	(1,125		)	(2,912		)	(3,299		)
Sold reserves (2)	-			(62		)	-			-			-			-			-			(62		)	-
End of period	$	3,495		$	3,449		$	3,453		$	3,527		$	3,532		$	3,586		$	3,835		$	3,453		$	3,835
Total
Beginning of period	$	42,948		$	42,942		$	43,029		$	43,000		$	43,068		$	42,840		$	42,885		$	42,948		$	43,068
Incurred	3,128			3,059			2,921			3,067			2,978			3,118			3,781			9,108			9,877
Paid	(2,971		)	(3,022		)	(3,009		)	(3,082		)	(3,129		)	(3,095		)	(3,597		)	(9,002		)	(9,821		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	(163		)	50			59			83			(77		)	22			(221		)	(54		)	(276		)
End of period	$	42,942		$	43,029		$	43,000		$	43,068		$	42,840		$	42,885		$	42,848		$	43,000		$	42,848
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	-		$	-		$	-		$	-		$	-		$	-		$	70		$	-		$	70
Environmental	-			185			-			-			-			85			-			185			85
All other	(27		)	(245		)	(165		)	(49		)	(312		)	(442		)	(317		)	(437		)	(1,071		)
Prior year development excluding accretion of discount	(27		)	(60		)	(165		)	(49		)	(312		)	(357		)	(247		)	(252		)	(916		)
Accretion of discount	15			15			15			15			15			16			15			45			46
Total Business Insurance	(12		)	(45		)	(150		)	(34		)	(297		)	(341		)	(232		)	(207		)	(870		)
Financial, Professional & International Insurance	-			(15		)	(42		)	(36		)	(63		)	(132		)	(43		)	(57		)	(238		)
Personal Insurance	(35		)	(50		)	(24		)	(43		)	(25		)	(37		)	(44		)	(109		)	(106		)
Total	$	(47	)	$	(110	)	$	(216	)	$	(113	)	$	(385	)	$	(510	)	$	(319	)	$	(373	)	$	(1,214	)

(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.

Page 28

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Asbestos reserves
Beginning reserves:
Direct	$	4,777		$	4,625		$	4,532		$	4,447		$	4,353		$	4,272		$	4,184		$	4,777		$	4,353
Ceded	(726		)	(699		)	(673		)	(662		)	(619		)	(600		)	(588		)	(726		)	(619		)
Net	4,051			3,926			3,859			3,785			3,734			3,672			3,596			4,051			3,734
Incurred losses and loss expenses:
Direct	-			-			(1		)	-			-			-			70			(1		)	70
Ceded	-			-			1			-			-			-			-			1			-
Accretion of discount:
Direct	-			-			-			-			-			-			-			-			-
Ceded	-			-			-			-			-			-			-			-			-
Losses paid:
Direct (1)	152			93			84			94			81			88			526			329			695
Ceded	(27		)	(26		)	(10		)	(43		)	(19		)	(12		)	(87		)	(63		)	(118		)
Ending reserves:
Direct	4,625			4,532			4,447			4,353			4,272			4,184			3,728			4,447			3,728
Ceded	(699		)	(673		)	(662		)	(619		)	(600		)	(588		)	(501		)	(662		)	(501		)
Net	$	3,926		$	3,859		$	3,785		$	3,734		$	3,672		$	3,596		$	3,227		$	3,785		$	3,227
Environmental reserves
Beginning reserves:
Direct	$	413		$	364		$	529		$	498		$	478		$	450		$	499		$	413		$	478
Ceded	5			8			8			14			12			12			12			5			12
Net	418			372			537			512			490			462			511			418			490
Incurred losses and loss expenses:
Direct	-			185			(3		)	-			-			85			-			182			85
Ceded	-			-			3			-			-			-			-			3			-
Losses paid:
Direct	49			20			28			20			28			36			27			97			91
Ceded	(3		)	-			(3		)	2			-			-			(1		)	(6		)	(1		)
Ending reserves:
Direct	364			529			498			478			450			499			472			498			472
Ceded	8			8			14			12			12			12			13			14			13
Net	$	372		$	537		$	512		$	490		$	462		$	511		$	485		$	512		$	485

(1)  Third quarter of 2008 includes the final payment in connection with the ACandS settlement.

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

Page 29

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

	September 30,			December 31,
Debt	2008			2007
Short-term debt
Commercial paper	$	100		$	100
3.75% Senior notes due March 15, 2008		-			400
7.81% Private placement note due September 16, 2008		-			3
6.38% Medium-term note due December 15, 2008		149			149
Zero coupon convertible notes due March 3, 2009, effective yield 4.17%		139			-
7.81% Private placement note due September 16, 2009		2			-
Total short-term debt		390			652
Long-term debt
Zero coupon convertible notes due March 3, 2009, effective yield 4.17%		-			134
8.125% Senior notes due April 15, 2010 (1)		250			250
Medium-term notes with maturities in 2010		21			21
7.22% Real estate non-recourse debt due September 1, 2011		9			9
7.81% Private placement notes due on various dates through 2011		4			6
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
5.80% Senior notes due May 15, 2018 (1)		500			-
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		5,938			5,574
Unamortized fair value adjustment		72			83
Unamortized debt issuance costs		(69	)		(67	)
		5,941			5,590
Total debt		6,331			6,242
Preferred equity		92			112
Common equity (excluding net unrealized investment gains (losses), net of tax)		25,447			25,884
Total capital	$	31,870		$	32,238
Total debt to capital		19.9%			19.4%

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

Page 30

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

	September 30,			December 31,
	2008 (1)			2007
Statutory capital and surplus	$	21,929		$	22,878
GAAP adjustments
Goodwill and intangible assets	3,866			3,958
Investments	(657		)	1,407
Noninsurance companies	(3,988		)	(4,307		)
Deferred acquisition costs	1,854			1,809
Deferred federal income tax	855			(18		)
Current federal income tax	(115		)	(124		)
Reinsurance recoverables	371			370
Furniture, equipment & software	505			423
Employee benefits	49			68
Agents balances	132			130
Other	(80		)	22
Total GAAP adjustments	2,792			3,738
GAAP shareholders’ equity	$	24,721		$	26,616

(1) Estimated and Preliminary

Page 31

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Cash flows from operating activities
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967		$	942		$	214		$	3,538		$	2,123
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(14		)	(128		)	-			(12		)	62			(36		)	170			(142		)	196
Depreciation and amortization	205			203			197			206			213			201			213			605			627
Deferred federal income tax expense	(188		)	369			68			(19		)	(8		)	34			23			249			49
Amortization of deferred policy acquisition costs	869			915			956			966			954			961			990			2,740			2,905
Equity in income from other investments	(167		)	(205		)	(117		)	(81		)	(17		)	(16		)	67			(489		)	34
Premiums receivable	17			(368		)	216			131			(28		)	(177		)	158			(135		)	(47		)
Reinsurance recoverables	548			531			615			478			272			10			251			1,694			533
Deferred acquisition costs	(967		)	(1,024		)	(997		)	(937		)	(968		)	(991		)	(991		)	(2,988		)	(2,950		)
Claims and claim adjustment expense reserves	(350		)	(255		)	(469		)	(336		)	(386		)	(38		)	(249		)	(1,074		)	(673		)
Unearned premium reserves	60			275			28			(260		)	15			97			38			363			150
Trading account activities	(1		)	(3		)	1			-			2			5			(2		)	(3		)	5
Loss (gain) on redemption of subordinated debentures	(7		)	39			-			-			-			-			-			32			-
Excess tax benefits from share-based payment arrangements	(9		)	(11		)	(3		)	(2		)	(4		)	(3		)	(1		)	(23		)	(8		)
Other	(215		)	(535		)	322			150			(147		)	(285		)	61			(428		)	(371		)
Net cash provided by operating activities	867			1,057			2,015			1,347			927			704			942			3,939			2,573
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,637			927			1,393			1,348			1,604			1,084			982			3,957			3,670
Proceeds from sales of investments
Fixed maturities	729			809			2,143			3,642			1,044			1,405			1,139			3,681			3,588
Equity securities	25			31			21			29			12			38			11			77			61
Real estate	-			-			10			1			-			25			-			10			25
Other investments	325			606			222			307			246			178			123			1,153			547
Purchases of investments
Fixed maturities	(3,006		)	(3,007		)	(3,673		)	(5,033		)	(2,350		)	(2,063		)	(2,222		)	(9,686		)	(6,635		)
Equity securities	(29		)	(26		)	(8		)	(72		)	(21		)	(39		)	(43		)	(63		)	(103		)
Real estate	(26		)	(27		)	(16		)	(5		)	(9		)	(16		)	(6		)	(69		)	(31		)
Other investments	(139		)	(232		)	(191		)	(178		)	(123		)	(162		)	(242		)	(562		)	(527		)
Net (purchases) sales of short-term securities	(103		)	407			(368		)	(498		)	320			(667		)	407			(64		)	60
Securities transactions in course of settlement	305			(251		)	(385		)	208			43			31			(461		)	(331		)	(387		)
Other	(203		)	(7		)	(82		)	(86		)	(72		)	(91		)	(104		)	(292		)	(267		)
Net cash provided by (used in) investing activities	(485		)	(770		)	(934		)	(337		)	694			(277		)	(416		)	(2,189		)	1

Page 32

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2007			2007			2007			2007			2008			2008			2008			2007			2008
Cash flows from financing activities
Issuance of debt	986			1,475			-			-			-			496			-			2,461			496
Payment of debt	(611		)	(857		)	(488		)	-			(400		)	-			(3		)	(1,956		)	(403		)
Treasury stock acquired - net employee share-based compensation	(26		)	(12		)	(1		)	-			(26		)	(2		)	-			(39		)	(28		)
Treasury stock acquired - share repurchase authorization	(698		)	(637		)	(612		)	(973		)	(1,000		)	(765		)	(290		)	(1,947		)	(2,055		)
Issuance of common stock - employee share options	54			106			32			26			15			44			13			192			72
Dividends paid to shareholders	(175		)	(193		)	(189		)	(185		)	(179		)	(180		)	(177		)	(557		)	(536		)
Excess tax benefits from share-based payment arrangements	9			11			3			2			4			3			1			23			8
Other	(1		)	1			1			(1		)	-			-			-			1			-
Net cash used in financing activities	(462		)	(106		)	(1,254		)	(1,131		)	(1,586		)	(404		)	(456		)	(1,822		)	(2,446		)
Effect of exchange rate changes on cash	(1		)	3			2			1			2			(2		)	(12		)	4			(12		)
Net increase (decrease) in cash	(81		)	184			(171		)	(120		)	37			21			58			(68		)	116
Cash at beginning of period	459			378			562			391			271			308			329			459			271
Cash at end of period	$	378		$	562		$	391		$	271		$	308		$	329		$	387		$	391		$	387
Income taxes paid	$	88		$	698		$	149		$	411		$	78		$	637		$	117		$	935		$	832
Interest paid	$	75		$	86		$	79		$	117		$	72		$	112		$	64		$	240		$	248

Page 33

The Travelers Companies, Inc.
Financial Supplement - Third 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 primarily marketed on a domestic basis in the United Kingdom, Ireland and Canada, and on an international basis through Lloyd’s.  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.

Page 34