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