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): July 30, 2009

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)
485 Lexington Avenue
New York, New York		10017
(Address of principal executive offices)		(Zip Code)

(917) 778-6000

(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 July 30, 2009, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended June 30, 2009, and the availability of the Company’s second 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 July 30, 2009, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Second Quarter 2009 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:       July 30, 2009	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 July 30, 2009, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Second Quarter 2009 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. 485 Lexington Avenue New York, NY 10017-2630 www.travelers.com

NEWS RELEASE

Travelers Reports Second Quarter 2009 Net Income of
$740 Million, or $1.27 per Diluted Share

Second Quarter 2009 Operating Income of $732 Million, or $1.25 per
Diluted Share

Repurchased 18.5 Million Common Shares in the Quarter for $750
Million

NEW YORK (July 30, 2009) — The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $740 million, or $1.27 per basic and diluted share, for the quarter ended June 30, 2009, compared to $942 million, or $1.56 per basic share and $1.54 per diluted share, for the quarter ended June 30, 2008.  Operating income in the current quarter was $732 million, or $1.26 per basic share and $1.25 per diluted share, compared to $918 million, or $1.52 per basic share and $1.50 per diluted share, in the prior year quarter.

“Our performance for the quarter reflects solid underwriting and fixed income investment results, as well as the continued impact of very low short-term investment yields and a small loss on our alternative investment portfolio,” commented Jay Fishman, Chairman and Chief Executive Officer.

“All of our operating dynamics were strong for the quarter.  Retention generally remained at or near historic highs, and we were successful at continuing to achieve rate gains.  Rate change was positive in the quarter across each of our three business segments, offsetting lower coverage demands from existing policyholders due to the economic downturn.  New business volumes were strong, particularly in Business Insurance.  These important revenue drivers demonstrate the high regard customers, brokers and agents continue to have for Travelers.

“Our operating performance enabled us once again to generate excess capital and we resumed our share repurchases in the quarter.  Results in the quarter, along with a significant increase in net unrealized investment gains, also led to an increase in book value.  We are pleased that the company is very well positioned to compete successfully in the current marketplace,” concluded Mr. Fishman.

Current Quarter Highlights

·Return on equity and operating return on equity of 11.1 percent and 11.3 percent, respectively.

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·Net written premiums of $5.605 billion compared to $5.629 billion in the prior year quarter.

·GAAP combined ratios in Business Insurance of 89.8 percent; Financial, Professional & International Insurance of 90.9 percent; and Personal Insurance of 99.6 percent.  Consolidated GAAP combined ratio of 93.2 percent.

·Net favorable prior year reserve development of $170 million after-tax ($261 million pre-tax), compared to $340 million after-tax ($526 million pre-tax) in the prior year quarter.

·Catastrophe losses of $130 million after-tax ($200 million pre-tax), compared to $231 million after-tax ($356 million pre-tax) in the prior year quarter.

·Net investment income of $547 million after-tax ($658 million pre-tax), compared to $624 million after-tax ($778 million pre-tax) in the prior year quarter.

·Net realized investment gains of $8 million after-tax ($13 million pre-tax), compared to $24 million after-tax ($36 million pre-tax) in the prior year quarter.

·Net unrealized investment gains of $865 million after-tax ($1.296 billion pre-tax) at the end of the current quarter, compared to net unrealized investment losses of $144 million after-tax ($253 million pre-tax) at year-end 2008.

·The company repurchased 18.5 million common shares for a total cost of $750 million in the current quarter and 27.4 million common shares for a total cost of $1.122 billion during the preceding 12 months under the company’s share repurchase authorization.  In addition, the company paid common dividends of $172 million in the current quarter and $703 million during the preceding 12 months.

·After common share repurchases and common dividends, book value per share of $47.29 and adjusted book value per share (which excludes FAS 115) of $45.76, increased 5 percent and 4 percent, respectively, from March 31, 2009 and increased 9 percent and 5 percent, respectively, from June 30, 2008.

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Consolidated Highlights

($ in millions, except for per share amounts,	Three Months Ended June 30,								Six Months Ended June 30,
and after-tax, except for premiums)	2009			2008			Change		2009			2008			Change
Gross written premiums	$	5,969		$	6,061		(2	)%	$	11,832		$	11,994		(1	)%
Net written premiums	5,605			5,629			—		10,808			10,817			—
Net earned premiums	5,353			5,357			—		10,654			10,697			—
Underwriting gain	206			338			(39	)	559			739			(24	)
Net investment income	547			624			(12	)	1,021			1,274			(20	)
Operating income	732			918			(20	)	1,531			1,926			(21	)
per diluted share	$	1.25		$	1.50		(17	)	$	2.60		$	3.11		(16	)
Net income	740			942			(21	)	1,402			1,909			(27	)
per diluted share	$	1.27		$	1.54		(18	)	$	2.38		$	3.08		(23	)
Book value per share	$	47.29		$	43.56		9		$	47.29		$	43.56		9
Adjusted book value per share	$	45.76		$	43.45		5		$	45.76		$	43.45		5
GAAP combined ratio	93.2		%	89.3		%	3.9	pts	91.9		%	88.5		%	3.4	pts
Operating return on equity	11.3		%	14.3		%	(3.0	)pts	11.9		%	14.9		%	(3.0	)pts
Return on equity	11.1		%	14.4		%	(3.3	)pts	10.7		%	14.5		%	(3.8	)pts

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

Second Quarter 2009 Consolidated Results

Net and operating income in the current quarter of $740 million and $732 million, respectively, declined from $942 million and $918 million in the prior year quarter.  The current and prior year quarters included the following:

	Three Months Ended June 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	329		$	535		$	206		$	338
GAAP combined ratio	93.2		%	89.3		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	92.6		%	89.2		%
Underwriting gain includes:
Net favorable prior year reserve development	261			526			170			340
Impact on GAAP combined ratio	(4.9		)pts	(9.8		)pts
Catastrophes, net of reinsurance	(200		)	(356		)	(130		)	(231		)
Impact on GAAP combined ratio	3.7		pts	6.6		pts
Resolution of prior year tax matters							5			—
Net investment income	658			778			547			624
Average yield	3.6		%	4.2		%	3.0		%	3.4		%
Other, including interest expense	(59		)	(62		)	(21		)	(44		)
Other also includes:
Resolution of prior year tax matters							14			—
Net realized investment gains	13			36			8			24

The current quarter underwriting gain reflects a GAAP combined ratio of 94.4 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 92.5 percent in the prior year quarter.  This increase of 1.9 points primarily resulted from reduced underwriting margins related to pricing and loss cost trends and higher non-catastrophe weather-related losses, partially offset by a $26 million pre-tax

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reduction in the estimate of Texas Windstorm Insurance Association (TWIA) assessments related to Hurricane Ike.

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 related to several tornadoes and hail storms.  In addition, the current quarter benefited from the resolution of various prior year tax matters.

Net investment income in the current quarter declined from the prior year quarter.  Net investment income from the fixed income portfolio of $572 million after-tax ($698 million pre-tax) in the current quarter declined from $610 million after-tax ($758 million pre-tax) in the prior year quarter driven primarily by the negative impact of a 140 basis point reduction in average after-tax short-term interest rates and lower average invested assets.  The non-fixed income portfolio, comprised substantially of private equity funds, real estate partnerships and hedge funds, recorded an investment loss of $20 million after-tax ($33 million pre-tax) in the current quarter, compared to an investment gain of $22 million after-tax ($32 million pre-tax) in the prior year quarter, reflective of the difficult investment market conditions during recent quarters.

Net realized investment gains in the current quarter included other-than-temporary impairments of $19 million after-tax ($30 million pre-tax), compared to $18 million after-tax ($28 million pre-tax) in the prior year quarter.

Net written premiums of $5.605 billion in the current quarter declined slightly from the prior year quarter.  Adjusting for the impact of changes in foreign exchange rates, net written premiums increased slightly from the prior year quarter.  Business retention remained at high levels.  Premium rate trends continued to improve and overall rate changes were positive in each business segment, offsetting the impact of lower coverage demands from existing policyholders due to general economic conditions.  New business volumes approximated the prior year quarter as strong growth in Business Insurance was offset by lower volumes in Financial, Professional & International Insurance and Personal Insurance.

Capital Management

The company remains very well capitalized, with all of its financial strength indicators at or better than target levels.  During the second quarter 2009, the company repurchased 18.5 million of its common shares for a total cost of $750 million.  At the end of the second quarter 2009, the company had $3.1 billion of capacity remaining under its share repurchase program.

At the end of the second quarter 2009, shareholders’ equity was $26.9 billion, a 6 percent increase from year-end 2008.  Included in shareholders’ equity at the end of the current quarter were after-tax net unrealized investment gains of $865 million as compared to after-tax net unrealized investment losses of $144 million at year-end 2008.  Statutory surplus was $21.3 billion, the company’s debt to capital ratio of 20.0 percent (excluding FAS 115) was at its target level, and holding company liquidity of $3.3 billion was three

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times the company’s target level.  In addition, the current quarter included the successful issuance of a $500 million public debt offering of 5.90%, 10-year senior notes.

Year-to-Date 2009 Consolidated Results

Net and operating income for the six-month period ended June 30, 2009 of $1.402 billion and $1.531 billion, respectively, declined from $1.909 billion and $1.926 billion in the prior year period.  The current and prior year period included the following:

	Six Months Ended June 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	794		$	1,165		$	559		$	739
GAAP combined ratio	91.9		%	88.5		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	91.3		%	88.3		%
Underwriting gain includes:
Net favorable prior year reserve development	519			926			338			601
Impact on GAAP combined ratio	(4.9		)pts	(8.6		)pts
Catastrophes, net of reinsurance	(283		)	(451		)	(184		)	(293		)
Impact on GAAP combined ratio	2.7		pts	4.2		pts
Resolution of prior year tax matters							60			—
Net investment income	1,200			1,593			1,021			1,274
Average yield	3.3		%	4.3		%	2.8		%	3.4		%
Other, including interest expense	(125		)	(131		)	(49		)	(87		)
Other also includes:
Resolution of prior year tax matters							28			—
Net realized investment losses	(201		)	(26		)	(129		)	(17		)

The current period underwriting gain reflects a GAAP combined ratio of 94.1 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 92.9 percent in the prior year quarter.  This increase of 1.2 points primarily resulted from reduced underwriting margins related to pricing and loss cost trends and higher non-catastrophe weather-related losses, partially offset by an $87 million pre-tax reduction in the estimate of TWIA assessments related to Hurricane Ike.

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 related to several tornadoes and hail storms.  In addition, the current period benefited from the resolution of various prior year tax matters.

Net investment income in the current period declined from the prior year period primarily due to negative returns in the non-fixed income portfolio as well as significantly lower short-term interest rates and lower average invested assets in the fixed income portfolio.

Net realized investment losses in the current period included other-than-temporary impairments of $139 million after-tax ($214 million pre-tax), compared to $43 million after-tax ($66 million pre-tax) in the prior year period.

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 Business Insurance Segment Financial Results

For the second quarter 2009, the Business Insurance segment reported operating income of $560 million, a decline from $658 million in the prior year quarter.  The current and prior year quarters included the following:

	Three Months Ended June 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	273		$	347		$	172		$	217
GAAP combined ratio	89.8		%	87.1		%
Underwriting gain includes:
Net favorable prior year reserve development	216			357			141			229
Impact on GAAP combined ratio	(7.8		)pts	(12.8		)pts
Catastrophes, net of reinsurance	(59		)	(185		)	(38		)	(120		)
Impact on GAAP combined ratio	2.1		pts	6.6		pts
Net investment income	451			540			379			436
Other	11			7			9			5

The current quarter underwriting gain reflects a GAAP combined ratio of 95.5 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 93.3 percent in the prior year quarter.  This increase of 2.2 points primarily resulted from reduced underwriting margins related to pricing and loss cost trends, partially offset by a lower amount of large property losses and a $12 million pre-tax reduction in the estimate of TWIA assessments relating to Hurricane Ike.

Net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience in the general liability, property, commercial multi-peril and commercial automobile product lines for recent accident years.  The net favorable prior year reserve development in the current quarter also included an increase of $46 million after-tax ($70 million pre-tax) to environmental reserves, compared to $55 million after-tax ($85 million pre-tax) in the prior year quarter.

Business Insurance net written premiums were $2.813 billion in the current quarter, increased slightly from $2.805 billion in the prior year quarter.  Retention rates were strong.   Premium rate trends continued to improve and overall rate changes were positive in the current quarter.  However, renewal premium changes were slightly negative as the impact of the positive rate changes was offset by lower coverage demands from existing policyholders due to general economic conditions.  New business volumes increased 13 percent from the prior year quarter driven by strong growth in Commercial Accounts, Industry-Focused Underwriting and Select Accounts.

Select Accounts

·Net written premiums of $732 million increased 1 percent from the prior year quarter.

·Retention rates remained strong, consistent with the prior year quarter.

·Renewal premium changes were positive and improved from recent quarters as a result of a continued improving rate trend.

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·New business volumes increased significantly from already strong levels in the prior year quarter. Submission flows continued to increase driven by the continued success and expansion of TravelersExpressSM, an enhanced quote-to-issue agency platform and multivariate pricing program for smaller businesses.

Commercial Accounts

·Net written premiums of $564 million increased 3 percent from the prior year quarter.

·Retention rates remained strong, generally consistent with the prior year quarter.

·Renewal premium changes were slightly negative, but improved from recent quarters as the impact of a continued improving rate trend was partially offset by lower coverage demands from existing policyholders due to general economic conditions.

·New business volumes increased significantly from the prior year quarter due to the impact of various product and customer initiatives.

National Accounts

·Net written premiums of $227 million declined 6 percent from the prior year quarter due to renewal premium changes that were negative, driven by lower coverage demands from existing policyholders, partially offset by an improvement in new business.

Industry-Focused Underwriting

·Net written premiums of $581 million declined 1 percent from the prior year quarter due to the effect of current market conditions in Public Sector and Construction.

Target Risk Underwriting

·Net written premiums of $458 million increased 3 percent from the prior year quarter primarily due to positive renewal premium changes and strong retention rates in National Property.

Specialized Distribution

·Net written premiums of $247 million declined 5 percent from the prior year quarter primarily due to weakness in the commercial trucking industry and continuing competition from standard markets and other distribution channels.

Financial, Professional & International Insurance Segment Financial Results

For the second quarter 2009, the Financial, Professional & International Insurance segment reported operating income of $133 million, a decline from $204 million in the prior year quarter.  The current and prior year quarters included the following:

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	Three Months Ended June 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	71		$	164		$	44		$	107
GAAP combined ratio	90.9		%	80.4		%
Underwriting gain includes:
Net favorable prior year reserve development	11			132			8			87
Impact on GAAP combined ratio	(1.4		)pts	(15.5		)pts
Catastrophes, net of reinsurance	(2		)	(6		)	(1		)	(4		)
Impact on GAAP combined ratio	0.2		pts	0.6		pts
Net investment income	107			120			84			92
Other	7			8			5			5

The current quarter underwriting gain reflects a GAAP combined ratio of 92.1 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 95.3 percent in the prior year quarter.  This improvement of 3.2 points primarily resulted from a lower amount of large losses within International.

The net favorable prior year reserve development in the current quarter resulted from better than expected loss experience across various lines of business within International.

Financial, Professional & International Insurance net written premiums of $914 million declined 7 percent from the prior year quarter. Adjusting for the impact of changes in foreign exchange rates, net written premiums declined 2 percent primarily due to lower business volumes in the construction surety business in the Bond & Financial Products group.

Retention rates, renewal premium changes and new business volumes as discussed below exclude the surety line of business because these products are sold on a non-recurring, project specific basis.

Bond & Financial Products

·Net written premiums of $558 million declined 6 percent from the prior year quarter primarily driven by lower business volumes in construction surety due to reduced public construction project activity.

·Retention rates continued to be strong.

·Renewal premium changes were positive, compared to negative in the prior year quarter, as the impact of a continued improving rate trend was partially offset by reduced exposures related to underwriting actions and lower coverage demands from existing policyholders due to general economic conditions.

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

International

·Net written premiums of $356 million declined 9 percent from the prior year quarter.  After adjusting for the impact of changes in foreign exchange rates, net written premiums increased 4 percent primarily due to strong production in Ireland.

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·Retention rates were lower than the prior year quarter primarily due to underwriting actions taken within the company’s Lloyd’s operations.

·Renewal premium changes were positive, compared to slightly negative in the prior year quarter, as the impact of a continued improving rate trend was partially offset by lower coverage demands from existing policyholders due to general economic conditions.

·New business volumes declined from very strong levels in the prior year quarter.

Personal Insurance Segment Financial Results

For the second quarter 2009, the Personal Insurance segment reported operating income of $88 million, a decline from $122 million in the prior year quarter.  The current and prior year quarters included the following:

	Three Months Ended June 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	(15	)	$	24		$	(10	)	$	14
GAAP combined ratio	99.6		%	97.3		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	97.7		%	96.7		%
Underwriting gain (loss) includes:
Net favorable prior year reserve development	34			37			21			24
Impact on GAAP combined ratio	(1.9		)pts	(2.2		)pts
Catastrophes, net of reinsurance	(139		)	(165		)	(91		)	(107		)
Impact on GAAP combined ratio	7.9		pts	9.6		pts
Net investment income	100			118			84			96
Other	21			19			14			12

The current quarter underwriting result reflects a GAAP combined ratio of 93.6 percent, excluding net favorable prior year reserve development and catastrophe losses, as compared to 89.9 percent in the prior year quarter.  This increase of 3.7 points primarily resulted from higher non-catastrophe weather-related losses and the impact of the company’s recently announced direct to consumer initiative, partially offset by a $14 million pre-tax reduction in the estimate of TWIA assessments relating to Hurricane Ike.

Net favorable prior year reserve development in the current quarter was primarily driven by favorable loss experience related to Hurricane Ike.

Personal Insurance net written premiums of $1.878 billion increased 2 percent from the prior year quarter.  This result was primarily due to continued positive renewal premium changes and strong retention rates.

Agency Automobile and Agency Homeowners and Other as discussed below represent business sold through agents, brokers and other intermediaries, and exclude direct to consumer.

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Agency Automobile

·Net written premiums of $914 million and policies in force each declined 2 percent from the prior year quarter.

·Retention rates and new business volume, while remaining strong, were down from recent quarters.

·Renewal premium changes remained positive and were higher than recent quarters.

Agency Homeowners and Other

·Net written premiums of $952 million increased 5 percent, and policies in force increased 3 percent, from the prior year quarter.

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

·New business volume decreased slightly from the prior year quarter.

2009 Annual Guidance

Travelers expects that its full year 2009 operating income per diluted share will be in the range of $4.80 to $5.05, as compared to the previously announced range of $4.55 to $4.95.  This guidance includes the reported results for the first six months of 2009 and estimates for the remainder of 2009 based on a number of assumptions, including:

·Catastrophe losses of $630 million pre-tax and $410 million after-tax, or $0.73 per diluted share for the full year;

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

·No significant changes in private equity and hedge fund valuations due to an assumption of unchanged market conditions.  Lower real estate partnership valuations due to a continuing downward trend in commercial real estate values;

·No significant change in average invested assets (excluding FAS 115), after taking into account dividends and approximately $3.0 billion of share repurchases for the full year; and

·Weighted average diluted shares of approximately 565 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.  Travelers management will discuss the contents of this release and other relevant topics via webcast at 9 a.m. Eastern (8 a.m. Central) on Thursday, July 30, 2009.  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.

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About Travelers

Travelers is a leading provider of property casualty insurance for auto, home and business.  A Fortune 100 company, Travelers has 33,000 employees and 2008 revenues of approximately $24 billion. Travelers stock is traded on the New York Stock Exchange (NYSE: TRV) and is a component of the Dow Jones Industrial Average. For more information, visit www.travelers.com.

From time to time Travelers may use 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.

GAAP combined ratio excluding incremental impact of direct to consumer initiative is the GAAP combined ratio adjusted to exclude the direct, variable impact of the company’s direct-to-consumer initiative in Personal Insurance. In the opinion of the company’s management, this is useful in an analysis of the profitability of the company’s ongoing agency auto business.

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.

Debt to capital is debt divided by shareholders’ equity excluding the after-tax impact of net unrealized investment gains and losses (i.e., excluding FAS 115). In the opinion of the company’s management, the debt to capital ratio is useful in an analysis of the company’s leverage.

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, Aviation 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 the assumed reinsurance, healthcare and certain international 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 coverages, which require a primarily credit-based underwriting process, 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 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 (which repurchase plans depend on a variety of factors, including our financial position, earnings, capital requirements of our operating subsidiaries, legal requirements, regulatory constraints and other factors), 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

12

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 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 business; financial disruption or a prolonged economic downturn may materially and adversely affect our business; our investment portfolio may suffer reduced returns or material losses; 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; we are exposed to credit risk in certain of our business operations; 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; the intense competition that we face could harm our ability to maintain or increase our business volumes and our profitability; 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 the impact on our business practices 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; 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; loss of or significant restriction on the use of credit scoring in the pricing and underwriting of Personal Insurance products could reduce our future profitability; we are subject to a number of risks associated with our business outside the United States; 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; some strategic initiatives, including our direct to consumer initiative in Personal Insurance, are long-term in nature and may negatively impact our loss and loss adjustment expense ratios and underwriting expense ratios as we invest, and these initiatives may not be successful; if we experience difficulties with technology, data security and/or outsourcing relationships, our ability to conduct our business could be negatively impacted; and acquisitions and integration of acquired businesses may result in operating difficulties and other unintended consequences.

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 filed with the Securities and Exchange Commission and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent annual report on Form 10-K and our quarterly report on Form 10-Q for the second quarter ended June 30, 2009 filed with the Securities and Exchange Commission.

13

	Three Months Ended						Six Months Ended
	June 30,						June 30,
($ in millions, except per share amounts, and after-tax)	2009			2008			2009			2008
Operating income	$	732		$	918		$	1,531		$	1,926
Net realized investment gains (losses)	8			24			(129		)	(17		)
Net income	$	740		$	942		$	1,402		$	1,909
Basic earnings per share(1)
Operating income	$	1.26		$	1.52		$	2.62		$	3.15
Net realized investment gains (losses)	0.01			0.04			(0.22		)	(0.03		)
Net income	$	1.27		$	1.56		$	2.40		$	3.12
Diluted earnings per share(1)
Operating income	$	1.25		$	1.50		$	2.60		$	3.11
Net realized investment gains (losses)	0.02			0.04			(0.22		)	(0.03		)
Net income	$	1.27		$	1.54		$	2.38		$	3.08
Weighted average number of common shares outstanding (basic)	575.8			598.2			580.1			606.7
Weighted average number of common shares outstanding and common stock equivalents (diluted)	579.8			607.9			584.9			616.3
Common shares outstanding at period end	567.5			592.8			567.5			592.8
Common stock dividends declared	$	172		$	180		$	349		$	358
Operating income by segment
Business Insurance	$	560		$	658		$	1,107		$	1,341
Financial, Professional & International Insurance	133			204			281			412
Personal Insurance	88			122			242			303
Total segment operating income	781			984			1,630			2,056
Interest Expense and Other	(49		)	(66		)	(99		)	(130		)
	$	732		$	918		$	1,531		$	1,926
Operating return on equity	11.3		%	14.3		%	11.9		%	14.9		%
Return on equity	11.1		%	14.4		%	10.7		%	14.5		%

(1) In accordance with the provisions of FSP EITF 03-06-1, Determining Whether Instruments Granted in Shared-Based Payment Transactions are Participating Securities, which was effective January 1, 2009, all prior-period basic and diluted EPS data has been restated to reflect the retrospective application of this guidance.

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

14

	Three Months Ended						Six Months Ended
	June 30,						June 30,
($ in millions, pre-tax)	2009			2008			2009			2008
Revenues
Premiums	$	5,353		$	5,357		$	10,654		$	10,697
Net investment income	658			778			1,200			1,593
Fee income	89			90			162			195
Net realized investment gains (losses)	13			36			(201		)	(26		)
Other revenues	49			34			82			68
	$	6,162		$	6,295		$	11,897		$	12,527
Revenues
Business Insurance	$	3,322		$	3,418		$	6,513		$	6,888
Financial, Professional & International Insurance	924			980			1,835			1,954
Personal Insurance	1,894			1,861			3,741			3,709
Total segment revenues	6,140			6,259			12,089			12,551
Interest Expense and Other	9			—			9			2
	6,149			6,259			12,098			12,553
Net realized investment gains (losses)	13			36			(201		)	(26		)
	$	6,162		$	6,295		$	11,897		$	12,527
Gross written premiums
Business Insurance	$	3,046		$	3,087		$	6,340		$	6,395
Financial, Professional & International Insurance	975			1,065			1,817			2,011
Personal Insurance	1,948			1,909			3,675			3,588
	$	5,969		$	6,061		$	11,832		$	11,994
Net written premiums
Business Insurance	$	2,813		$	2,805		$	5,776		$	5,716
Financial, Professional & International Insurance	914			985			1,477			1,629
Personal Insurance	1,878			1,839			3,555			3,472
	$	5,605		$	5,629		$	10,808		$	10,817
GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	57.6		%	54.7		%	57.7		%	54.5		%
Underwriting expense ratio	32.2			32.4			31.7			32.4
Combined ratio	89.8		%	87.1		%	89.4		%	86.9		%
Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	54.4		%	43.7		%	54.5		%	44.7		%
Underwriting expense ratio	36.5			36.7			36.0			36.2
Combined ratio	90.9		%	80.4		%	90.5		%	80.9		%
Personal Insurance
Loss and loss adjustment expense ratio	70.5		%	67.3		%	67.6		%	65.1		%
Underwriting expense ratio	29.1			30.0			28.8			29.7
Combined ratio	99.6		%	97.3		%	96.4		%	94.8		%
Total Company (2)
Loss and loss adjustment expense ratio	61.4		%	57.0		%	60.5		%	56.3		%
Underwriting expense ratio	31.8			32.3			31.4			32.2
Combined ratio	93.2		%	89.3		%	91.9		%	88.5		%

(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						Six Months Ended
	June 30,						June 30,
($ in millions; after-tax except as noted)	2009			2008			2009			2008
Reconciliation of underwriting gain to net income
Pre-tax underwriting gain	$	329		$	535		$	794		$	1,165
Tax expense on underwriting results	(123		)	(197		)	(235		)	(426		)
Underwriting gain	206			338			559			739
Net investment income	547			624			1,021			1,274
Other, including interest expense	(21		)	(44		)	(49		)	(87		)
Consolidated operating income	732			918			1,531			1,926
Net realized investment gains (losses)	8			24			(129		)	(17		)
Net income	$	740		$	942		$	1,402		$	1,909

	As of
	June 30,		December 31,			June 30,
($ in millions; except per share data)	2009		2008			2008
Reconciliation of tangible and adjusted common shareholders’ equity to common shareholders’ equity
Tangible common shareholders’ equity	$	22,044	$	21,402		$	21,738
Goodwill and other intangibles, net of tax	3,928		3,972			4,019
Adjusted common shareholders’ equity	25,972		25,374			25,757
Net unrealized investment gains (losses), net of tax	865		(144		)	63
Common shareholders’ equity	$	26,837	$	25,230		$	25,820
Common shares outstanding	567.5		585.1			592.8
Tangible book value per share	$	38.84	$	36.58		$	36.67
Adjusted book value per share	45.76		43.37			43.45
Book value per share	47.29		43.12			43.56

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

16

	Twelve Months Ended December 31,
($ in millions; after-tax)	2008			2007		2006		2005			2004
Reconciliation of operating income to net income
Operating income	$	3,195		$	4,500	$	4,200	$	2,026		$	895
Net realized investment gains (losses)	(271		)	101		8		35			(28		)
Income from continuing operations	2,924			4,601		4,208		2,061			867
Discontinued operations	—			—		—		(439		)	88
Net income	$	2,924		$	4,601	$	4,208	$	1,622		$	955

	As of December 31,
($ in millions)	2008			2007			2006			2005			2004
Reconciliation of adjusted common shareholders’ equity to common shareholders’ equity
Adjusted common shareholders’ equity	$	25,374		$	25,884		$	24,553		$	21,823		$	20,147
Net unrealized investment gains (losses), net of tax	(144		)	620			453			327			866
Common shareholders’ equity	$	25,230		$	26,504		$	25,006		$	22,150		$	21,013
Return on equity	11.4		%	18.0		%	17.9		%	7.5		%	5.1		%
Operating return on equity	12.4		%	17.7		%	17.9		%	9.6		%	5.0		%

###

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

17

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.

Financial Supplement - Second Quarter 2009

	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 - Agency Automobile	19
Selected Statistics - Agency 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			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	1,909		$	1,402
Net income per share: (1)
Basic	$	1.56		$	1.56		$	0.36		$	1.36		$	1.12		$	1.27		$	3.12		$	2.40
Diluted	$	1.54		$	1.54		$	0.36		$	1.35		$	1.11		$	1.27		$	3.08		$	2.38
Operating income	$	1,008		$	918		$	330		$	939		$	799		$	732		$	1,926		$	1,531
Operating income per share: (1)
Basic	$	1.63		$	1.52		$	0.56		$	1.60		$	1.36		$	1.26		$	3.15		$	2.62
Diluted	$	1.60		$	1.50		$	0.55		$	1.58		$	1.34		$	1.25		$	3.11		$	2.60
Return on equity	14.6		%	14.4		%	3.4		%	12.8		%	10.2		%	11.1		%	14.5		%	10.7		%
Operating return on equity	15.6		%	14.3		%	5.1		%	14.7		%	12.4		%	11.3		%	14.9		%	11.9		%
Total assets, at period end	$	114,144		$	113,625		$	112,695		$	109,751		$	110,467		$	111,326		$	113,625		$	111,326
Total equity, at period end	$	26,388		$	25,923		$	24,721		$	25,319		$	26,497		$	26,920		$	25,923		$	26,920
Book value per share, at period end	$	43.31		$	43.56		$	41.94		$	43.12		$	45.12		$	47.29		$	43.56		$	47.29
Less: Net unrealized investment gains (losses), net of tax	0.95			0.11			(1.40		)	(0.25		)	0.93			1.53			0.11			1.53
Adjusted book value per share, at period end	$	42.36		$	43.45		$	43.34		$	43.37		$	44.19		$	45.76		$	43.45		$	45.76
Weighted average number of common shares outstanding (basic) (1)	615.4			598.2			586.7			583.6			584.6			575.8			606.7			580.1
Weighted average number of common shares outstanding and common stock equivalents (diluted) (1)	624.8			607.9			594.7			590.3			590.4			579.8			616.3			584.9
Common shares outstanding at period end	606.9			592.8			587.2			585.1			585.3			567.5			592.8			567.5
Common stock dividends declared	$	178		$	180		$	177		$	177		$	177		$	172		$	358		$	349
Common stock repurchased:
Under repurchase authorization (2)
Shares	20.8			15.3			6.2			2.7			—			18.5			36.1			18.5
Cost	$	1,000		$	750		$	272		$	100		$	—		$	750		$	1,750		$	750
Other
Shares	0.6			0.1			0.1			—			0.7			0.3			0.7			1.0
Cost	$	28		$	7		$	2		$	1		$	27		$	13		$	35		$	40

(1)  In accordance with the provisions of FSP EITF 03-06-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities, which was effective January 1, 2009, all prior-period basic and diluted EPS data has been restated to reflect the retrospective application of this guidance.

(2)  Repurchased under Board of Director authorization. 

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

1

The Travelers Companies, Inc.
Reconciliation to Net Income and Earnings Per Share (1)
($ and shares in millions, except earnings per share)

																	YTD			YTD
	1Q			2Q		3Q			4Q			1Q			2Q		2Q			2Q
	2008			2008		2008			2008			2009			2009		2008			2009
Net income
Operating income	$	1,008		$	918	$	330		$	939		$	799		$	732	$	1,926		$	1,531
Net realized investment gains (losses)	(41		)	24		(116		)	(138		)	(137		)	8		(17		)	(129		)
Net income	$	967		$	942	$	214		$	801		$	662		$	740	$	1,909		$	1,402
Basic earnings per share
Operating income	$	1.63		$	1.52	$	0.56		$	1.60		$	1.36		$	1.26	$	3.15		$	2.62
Net realized investment gains (losses)	(0.07		)	0.04		(0.20		)	(0.24		)	(0.24		)	0.01		(0.03		)	(0.22		)
Net income	$	1.56		$	1.56	$	0.36		$	1.36		$	1.12		$	1.27	$	3.12		$	2.40
Diluted earnings per share
Operating income	$	1.60		$	1.50	$	0.55		$	1.58		$	1.34		$	1.25	$	3.11		$	2.60
Net realized investment gains (losses)	(0.06		)	0.04		(0.19		)	(0.23		)	(0.23		)	0.02		(0.03		)	(0.22		)
Net income	$	1.54		$	1.54	$	0.36		$	1.35		$	1.11		$	1.27	$	3.08		$	2.38

Adjustments to net income and weighted average shares for net income EPS calculations: (2)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Basic
Net income, as reported	$	967		$	942		$	214		$	801		$	662		$	740		$	1,909		$	1,402
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(1		)	(1		)	(1		)	(2		)	(2		)
Participating share-based awards - allocated income	(6		)	(7		)	(1		)	(6		)	(5		)	(5		)	(13		)	(10		)
Net income available to common shareholders - basic	$	960		$	934		$	212		$	794		$	656		$	734		$	1,894		$	1,390
Diluted
Net income available to common shareholders - basic	$	960		$	934		$	212		$	794		$	656		$	734		$	1,894		$	1,390
Effect of dilutive securities:
Convertible preferred stock	1			1			1			1			1			1			2			2
Zero coupon convertible notes	1			1			1			1			1			—			2			1
Net income available to common shareholders - diluted	$	962		$	936		$	214		$	796		$	658		$	735		$	1,898		$	1,393
Common Shares
Basic
Weighted average shares outstanding	615.4			598.2			586.7			583.6			584.6			575.8			606.7			580.1
Diluted
Weighted average shares outstanding	615.4			598.2			586.7			583.6			584.6			575.8			606.7			580.1
Weighted average effects of dilutive securities:
Stock options and performance shares	4.4			4.8			3.3			2.1			2.0			1.9			4.6			1.9
Convertible preferred stock	2.6			2.5			2.3			2.2			2.2			2.1			2.6			2.1
Zero coupon convertible notes	2.4			2.4			2.4			2.4			1.6			—			2.4			0.8
Diluted weighted average shares outstanding	624.8			607.9			594.7			590.3			590.4			579.8			616.3			584.9

(1)  In accordance with the provisions of FSP EITF 03-06-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities, which was effective January 1, 2009, all prior-period basic and diluted EPS data has been restated to reflect the retrospective application of this guidance.             

(2)  Adjustments to net income and weighted average shares for net income EPS calculations can also be used for the operating income EPS calculations.

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

2

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Revenues
Premiums	$	5,340		$	5,357		$	5,448		$	5,434		$	5,301		$	5,353		$	10,697		$	10,654
Net investment income	815			778			716			483			542			658			1,593			1,200
Fee income	105			90			120			75			73			89			195			162
Net realized investment gains (losses)	(62		)	36			(170		)	(219		)	(214		)	13			(26		)	(201		)
Other revenues	34			34			31			32			33			49			68			82
Total revenues	6,232			6,295			6,145			5,805			5,735			6,162			12,527			11,897
Claims and expenses
Claims and claim adjustment expenses	3,021			3,092			3,871			3,009			3,190			3,335			6,113			6,525
Amortization of deferred acquisition costs	954			961			990			975			944			953			1,915			1,897
General and administrative expenses (1)	853			864			1,001			800			782			839			1,717			1,621
Interest expense	90			91			95			94			92			94			181			186
Total claims and expenses	4,918			5,008			5,957			4,878			5,008			5,221			9,926			10,229
Income before income taxes	1,314			1,287			188			927			727			941			2,601			1,668
Income tax expense (benefit)	347			345			(26		)	126			65			201			692			266
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	1,909		$	1,402
Net realized investment gains (losses)
Other-than-temporary impairment losses:
Total losses	$	(38	)	$	(28	)	$	(156	)	$	(198	)	$	(184	)	$	(75	)	$	(66	)	$	(259	)
Portion of losses recognized in accumulated other changes in equity from nonowner sources	—			—			—			—			—			45			—			45
Other-than-temporary impairment losses	(38		)	(28		)	(156		)	(198		)	(184		)	(30		)	(66		)	(214		)
Other net realized investment gains (losses)	(24		)	64			(14		)	(21		)	(30		)	43			40			13
Net realized investment gains (losses)	$	(62	)	$	36		$	(170	)	$	(219	)	$	(214	)	$	13		$	(26	)	$	(201	)
Other statistics
Effective tax rate on net investment income	20.2		%	19.8		%	18.1		%	9.5		%	12.6		%	16.7		%	20.0		%	14.9		%
Net investment income (after-tax)	$	650		$	624		$	587		$	438		$	474		$	547		$	1,274		$	1,021
Catastrophes, net of reinsurance (2):
Pre-tax	$	95		$	356		$	1,042		$	(85	)	$	83		$	200		$	451		$	283
After-tax	$	62		$	231		$	682		$	(56	)	$	54		$	130		$	293		$	184

(1)  In 3Q 2008, 4Q 2008, 1Q 2009, and 2Q 2009 “General and administrative expenses” includes $176 million, $(35) million, $(61) million, and $(26) million respectively, of estimated hurricane-related assessments from state-created insurance and windstorm insurance entities.

(2)  In 4Q 2008, “Catastrophes, net of reinsurance” includes a net benefit from re-estimation of current year catastrophe losses.

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

3

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Underwriting gain (loss)	$	401		$	338		$	(208	)	$	545		$	353		$	206		$	739		$	559
Net investment income	650			624			587			438			474			547			1,274			1,021
Other, including interest expense	(43		)	(44		)	(49		)	(44		)	(28		)	(21		)	(87		)	(49		)
Operating income	1,008			918			330			939			799			732			1,926			1,531
Net realized investment gains (losses)	(41		)	24			(116		)	(138		)	(137		)	8			(17		)	(129		)
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	1,909		$	1,402
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	55.7		%	57.0		%	69.9		%	54.9		%	59.7		%	61.4		%	56.3		%	60.5		%
Underwriting expense ratio (3)	31.9		%	32.3		%	34.8		%	31.0		%	30.9		%	31.8		%	32.2		%	31.4		%
Combined ratio	87.6		%	89.3		%	104.7		%	85.9		%	90.6		%	93.2		%	88.5		%	91.9		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	87.5		%	89.2		%	104.5		%	85.7		%	90.1		%	92.6		%	88.3		%	91.3		%
Impact of catastrophes on combined ratio (4)	1.8		%	6.6		%	19.1		%	-1.6		%	1.6		%	3.7		%	4.2		%	2.7		%
Impact of prior year reserve development on combined ratio	-7.5		%	-9.8		%	-6.2		%	-5.1		%	-4.9		%	-4.9		%	-8.6		%	-4.9		%

(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		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Billing and policy fees	$	27	$	26	$	27	$	26	$	27	$	27	$	53	$	54
Fee income:
Loss and loss adjustment expenses	$	43	$	30	$	58	$	13	$	20	$	42	$	73	$	62
Underwriting expenses	62		60		62		62		53		47		122		100
Total fee income	$	105	$	90	$	120	$	75	$	73	$	89	$	195	$	162

(3)  The impact of changes in prior year estimates of hurricane-related assessments, which is not included in the “Impact of catastrophes on the combined ratio”, for 1Q 2009, 2Q 2009, and YTD 2Q 2009 is (1.2), (0.5), and (0.8) points, respectively.

(4)  The impact of catastrophes on the combined ratios for the three months ended September 30, 2008 and December 31, 2008 included 15.8 and (1.0) point impacts, respectively, on the loss and loss adjustment expense ratio, and 3.3 and (0.6) point impacts, respectively, on the underwriting expense ratio.

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

4

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Revenues
Premiums	$	5,340		$	5,357		$	5,448		$	5,434		$	5,301		$	5,353		$	10,697		$	10,654
Net investment income	815			778			716			483			542			658			1,593			1,200
Fee income	105			90			120			75			73			89			195			162
Other revenues	34			34			31			32			33			49			68			82
Total revenues	6,294			6,259			6,315			6,024			5,949			6,149			12,553			12,098
Claims and expenses
Claims and claim adjustment expenses	3,021			3,092			3,871			3,009			3,190			3,335			6,113			6,525
Amortization of deferred acquisition costs	954			961			990			975			944			953			1,915			1,897
General and administrative expenses	853			864			1,001			800			782			839			1,717			1,621
Interest expense	90			91			95			94			92			94			181			186
Total claims and expenses	4,918			5,008			5,957			4,878			5,008			5,221			9,926			10,229
Operating income before income taxes	1,376			1,251			358			1,146			941			928			2,627			1,869
Income tax expense	368			333			28			207			142			196			701			338
Operating income	$	1,008		$	918		$	330		$	939		$	799		$	732		$	1,926		$	1,531
Other statistics
Effective tax rate on net investment income	20.2		%	19.8		%	18.1		%	9.5		%	12.6		%	16.7		%	20.0		%	14.9		%
Net investment income (after-tax)	$	650		$	624		$	587		$	438		$	474		$	547		$	1,274		$	1,021
Catastrophes, net of reinsurance (1):
Pre-tax	$	95		$	356		$	1,042		$	(85	)	$	83		$	200		$	451		$	283
After-tax	$	62		$	231		$	682		$	(56	)	$	54		$	130		$	293		$	184

(1)  In 4Q 2008, “Catastrophes, net of reinsurance” includes a net benefit from re-estimation of current year catastrophe losses.

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

5

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

																	YTD			YTD
	1Q			2Q		3Q			4Q			1Q			2Q		2Q			2Q
	2008			2008		2008			2008			2009			2009		2008			2009
Statutory underwriting
Gross written premiums	$	5,933		$	6,061	$	6,134		$	5,709		$	5,863		$	5,969	$	11,994		$	11,832
Net written premiums	$	5,188		$	5,629	$	5,481		$	5,385		$	5,203		$	5,605	$	10,817		$	10,808
Net earned premiums	$	5,340		$	5,357	$	5,448		$	5,434		$	5,301		$	5,353	$	10,697		$	10,654
Losses and loss adjustment expenses	2,978			3,118		3,781			2,974			3,159			3,300		6,096			6,459
Underwriting expenses	1,706			1,766		1,811			1,643			1,710			1,724		3,472			3,434
Statutory underwriting gain (loss)	656			473		(144		)	817			432			329		1,129			761
Policyholder dividends	7			9		4			11			8			6		16			14
Statutory underwriting gain (loss) after policyholder dividends	$	649		$	464	$	(148	)	$	806		$	424		$	323	$	1,113		$	747
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	42,840		$	42,885	$	42,848		$	41,307		$	41,156		$	41,495	$	42,885		$	41,495
Increase (decrease) in reserves	$	(228	)	$	45	$	(37	)	$	(1,541	)	$	(151	)	$	339	$	(183	)	$	188
Statutory surplus	$	22,353		$	22,288	$	21,929		$	21,491		$	21,561		$	21,267	$	22,288		$	21,267
Net written premiums/surplus (1)	0.97:1			0.97:1		0.99:1			1.01:1			1.01:1			1.02:1		0.97:1			1.02:1

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

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

6

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Written premiums
Gross	$	5,933		$	6,061		$	6,134		$	5,709		$	5,863		$	5,969		$	11,994		$	11,832
Ceded	(745		)	(432		)	(653		)	(324		)	(660		)	(364		)	(1,177		)	(1,024		)
Net	$	5,188		$	5,629		$	5,481		$	5,385		$	5,203		$	5,605		$	10,817		$	10,808
Earned premiums
Gross	$	5,932		$	5,957		$	6,035		$	5,978		$	5,808		$	5,862		$	11,889		$	11,670
Ceded	(592		)	(600		)	(587		)	(544		)	(507		)	(509		)	(1,192		)	(1,016		)
Net	$	5,340		$	5,357		$	5,448		$	5,434		$	5,301		$	5,353		$	10,697		$	10,654

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

7

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Revenues
Premiums	$	2,786		$	2,781		$	2,823		$	2,790		$	2,757		$	2,770		$	5,567		$	5,527
Net investment income	573			540			494			310			355			451			1,113			806
Fee income	105			90			120			75			73			89			195			162
Other revenues	6			7			8			9			6			12			13			18
Total revenues	3,470			3,418			3,445			3,184			3,191			3,322			6,888			6,513
Claims and expenses
Claims and claim adjustment expenses	1,558			1,556			1,952			1,542			1,618			1,644			3,114			3,262
Amortization of deferred acquisition costs	451			451			466			450			449			450			902			899
General and administrative expenses (1)	516			516			565			482			467			493			1,032			960
Interest expense	—			—			—			1			—			—			—			—
Total claims and expenses	2,525			2,523			2,983			2,475			2,534			2,587			5,048			5,121
Operating income before federal income taxes	945			895			462			709			657			735			1,840			1,392
Income taxes	262			237			84			90			110			175			499			285
Operating income	$	683		$	658		$	378		$	619		$	547		$	560		$	1,341		$	1,107
Other statistics
Effective tax rate on net investment income	19.7		%	19.2		%	17.4		%	6.3		%	10.8		%	15.9		%	19.5		%	13.6		%
Net investment income (after-tax)	$	460		$	436		$	409		$	291		$	317		$	379		$	896		$	696
Catastrophes, net of reinsurance (2):
Pre-tax	$	57		$	185		$	488		$	(24	)	$	12		$	59		$	242		$	71
After-tax	$	37		$	120		$	318		$	(16	)	$	8		$	38		$	157		$	46

(1)  In 3Q 2008, 4Q 2008, 1Q 2009, and 2Q 2009 “General and administrative expenses” includes $76 million, $(14) million, $(26) million, and $(12) million respectively, of estimated hurricane-related assessments from state-created insurance and windstorm insurance entities.

(2)  In 4Q 2008, “Catastrophes, net of reinsurance” includes a net benefit from re-estimation of current year catastrophe losses.

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

8

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Underwriting gain (loss)	$	219		$	217		$	(35	)	$	325		$	226		$	172		$	436		$	398
Net investment income	460			436			409			291			317			379			896			696
Other	4			5			4			3			4			9			9			13
Operating income	$	683		$	658		$	378		$	619		$	547		$	560		$	1,341		$	1,107
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	54.2		%	54.7		%	67.1		%	54.6		%	57.8		%	57.6		%	54.5		%	57.7		%
Underwriting expense ratio (3)	32.4		%	32.4		%	34.2		%	31.1		%	31.2		%	32.2		%	32.4		%	31.7		%
Combined ratio	86.6		%	87.1		%	101.3		%	85.7		%	89.0		%	89.8		%	86.9		%	89.4		%
Impact of catastrophes on combined ratio (4)	2.1		%	6.6		%	17.3		%	-0.8		%	0.4		%	2.1		%	4.4		%	1.3		%
Impact of prior year reserve development on combined ratio	-11.2		%	-12.8		%	-8.7		%	-7.3		%	-6.6		%	-7.8		%	-12.0		%	-7.2		%

(1)  Before policyholder dividends.

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Billing and policy fees	$	3	$	4	$	3	$	4	$	4	$	4	$	7	$	8
Fee income:
Loss and loss adjustment expenses	$	43	$	30	$	58	$	13	$	20	$	42	$	73	$	62
Underwriting expenses	62		60		62		62		53		47		122		100
Total fee income	$	105	$	90	$	120	$	75	$	73	$	89	$	195	$	162

(3)  The impact of changes in prior year estimates of hurricane-related assessments, which is not included in the “Impact of catastrophes on the combined ratio” for 1Q 2009, 2Q 2009, and YTD 2Q 2009 is (0.9), (0.4), and (0.7) points, respectively.

(4)  The impact of catastrophes on the combined ratios for the three months ended September 30, 2008 and December 31, 2008 included 14.6 and (0.3) point impacts, respectively, on the loss and loss adjustment expense ratio, and 2.7 and (0.5) point impacts, respectively, on the underwriting expense ratio.

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

9

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Statutory underwriting
Gross written premiums	$	3,308	$	3,087	$	3,215	$	2,970	$	3,294	$	3,046	$	6,395	$	6,340
Net written premiums	$	2,911	$	2,805	$	2,748	$	2,756	$	2,963	$	2,813	$	5,716	$	5,776
Net earned premiums	$	2,786	$	2,781	$	2,823	$	2,790	$	2,757	$	2,770	$	5,567	$	5,527
Losses and loss adjustment expenses	1,517		1,576		1,868		1,509		1,592		1,603		3,093		3,195
Underwriting expenses	903		897		922		842		903		877		1,800		1,780
Statutory underwriting gain	366		308		33		439		262		290		674		552
Policyholder dividends	4		6		2		6		4		4		10		8
Statutory underwriting gain after policyholder dividends	$	362	$	302	$	31	$	433	$	258	$	286	$	664	$	544

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

10

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

														YTD		YTD
	1Q		2Q		3Q		4Q		1Q			2Q		2Q		2Q
	2008		2008		2008		2008		2009			2009		2008		2009
Net written premiums by market
Select Accounts	$	708	$	724	$	662	$	662	$	731		$	732	$	1,432	$	1,463
Commercial Accounts	673		550		635		666		710			564		1,223		1,274
National Accounts	246		241		240		269		259			227		487		486
Industry-Focused Underwriting	613		584		613		586		617			581		1,197		1,198
Target Risk Underwriting	423		445		366		359		422			458		868		880
Specialized Distribution	244		259		228		208		222			247		503		469
Total core	2,907		2,803		2,744		2,750		2,961			2,809		5,710		5,770
Business Insurance other	4		2		4		6		2			4		6		6
Total	$	2,911	$	2,805	$	2,748	$	2,756	$	2,963		$	2,813	$	5,716	$	5,776
Net written premiums by product line
Commercial multi-peril	$	791	$	726	$	693	$	728	$	789		$	730	$	1,517	$	1,519
Workers’ compensation	674		566		598		614		748			593		1,240		1,341
Commercial automobile	500		476		511		465		485			497		976		982
Property	482		515		433		430		463			507		997		970
General liability	462		520		510		519		479			486		982		965
Other	2		2		3		—		(1		)	—		4		(1		)
Total	$	2,911	$	2,805	$	2,748	$	2,756	$	2,963		$	2,813	$	5,716	$	5,776
National accounts
Additions to claim volume under administration (1)	$	712	$	522	$	482	$	566	$	594		$	452	$	1,234	$	1,046
Written fees	$	103	$	80	$	85	$	77	$	85		$	70	$	183	$	155

(1)  Includes new and renewal business.

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

11

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Revenues
Premiums	$	847		$	852		$	863		$	867		$	801		$	810		$	1,699		$	1,611
Net investment income	122			120			114			98			104			107			242			211
Other revenues	5			8			5			6			6			7			13			13
Total revenues	974			980			982			971			911			924			1,954			1,835
Claims and expenses
Claims and claim adjustment expenses	390			376			545			458			442			442			766			884
Amortization of deferred acquisition costs	159			163			166			164			146			151			322			297
General and administrative expenses (1)	144			149			149			139			138			146			293			284
Interest expense	—			1			1			—			—			—			1			—
Total claims and expenses	693			689			861			761			726			739			1,382			1,465
Operating income before federal income taxes	281			291			121			210			185			185			572			370
Income taxes	73			87			38			56			37			52			160			89
Operating income	$	208		$	204		$	83		$	154		$	148		$	133		$	412		$	281
Other statistics
Effective tax rate on net investment income	23.5		%	23.5		%	22.0		%	20.6		%	19.4		%	20.9		%	23.5		%	20.2		%
Net investment income (after-tax)	$	93		$	92		$	89		$	78		$	84		$	84		$	185		$	168
Catastrophes, net of reinsurance (2):
Pre-tax	$	—		$	6		$	91		$	(13	)	$	—		$	2		$	6		$	2
After-tax	$	—		$	4		$	64		$	(10	)	$	—		$	1		$	4		$	1

(1)  In 3Q 2008, 4Q 2008, and 1Q 2009 “General and administrative expenses” includes $4 million, $(2) million, and $(1) million respectively, of estimated hurricane-related assessments from state-created insurance and windstorm insurance entities.

(2)  In 4Q 2008, “Catastrophes, net of reinsurance” includes a net benefit from re-estimation of current year catastrophe losses.

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

12

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Underwriting gain (loss)	$	112		$	107		$	(8	)	$	72		$	60		$	44		$	219		$	104
Net investment income	93			92			89			78			84			84			185			168
Other	3			5			2			4			4			5			8			9
Operating income	$	208		$	204		$	83		$	154		$	148		$	133		$	412		$	281
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	45.7		%	43.7		%	62.9		%	52.3		%	54.7		%	54.4		%	44.7		%	54.5		%
Underwriting expense ratio (2)	35.7		%	36.7		%	36.5		%	34.9		%	35.5		%	36.5		%	36.2		%	36.0		%
Combined ratio	81.4		%	80.4		%	99.4		%	87.2		%	90.2		%	90.9		%	80.9		%	90.5		%
Impact of catastrophes on combined ratio (3)	0.0		%	0.6		%	10.5		%	-1.6		%	0.0		%	0.2		%	0.3		%	0.1		%
Impact of prior year reserve development on combined ratio	-7.4		%	-15.5		%	-4.9		%	-4.2		%	-1.4		%	-1.4		%	-11.5		%	-1.5		%

(1)  Before policyholder dividends.

(2)  The impact of changes in prior year estimates of hurricane-related assessments, which is not included in the “Impact of catastrophes on the combined ratio” for 1Q 2009, 2Q 2009, and YTD 2Q 2009 is (0.1), (0.0), and (0.1) points, respectively.

(3)  The impact of catastrophes on the combined ratios for the three months ended September 30, 2008 and December 31, 2008 included 9.8 and (1.5) point impacts, respectively, on the loss and loss adjustment expense ratio, and 0.7 and (0.1) point impacts, respectively, on the underwriting expense ratio.

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

13

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Statutory underwriting
Gross written premiums	$	946	$	1,065	$	965	$	990	$	842	$	975	$	2,011	$	1,817
Net written premiums	$	644	$	985	$	901	$	938	$	563	$	914	$	1,629	$	1,477
Net earned premiums	$	847	$	852	$	863	$	867	$	801	$	810	$	1,699	$	1,611
Losses and loss adjustment expenses	387		383		539		456		437		448		770		885
Underwriting expenses	311		317		299		286		286		298		628		584
Statutory underwriting gain	149		152		25		125		78		64		301		142
Policyholder dividends	3		3		2		5		4		2		6		6
Statutory underwriting gain after policyholder dividends	$	146	$	149	$	23	$	120	$	74	$	62	$	295	$	136

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

14

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Net written premiums by market
Bond & Financial Products	$	355	$	592	$	609	$	570	$	334	$	558	$	947	$	892
International	289		393		292		368		229		356		682		585
Total	$	644	$	985	$	901	$	938	$	563	$	914	$	1,629	$	1,477
Net written premiums by product line
General liability	$	101	$	259	$	271	$	290	$	129	$	256	$	360	$	385
Fidelity & surety	216		299		307		248		170		265		515		435
International	289		393		292		368		229		356		682		585
Other	38		34		31		32		35		37		72		72
Total	$	644	$	985	$	901	$	938	$	563	$	914	$	1,629	$	1,477

In 2Q 2009, results from the surety bond operation in Canada were reclassified from the “Bond and Financial Products” market to the “International” market, and from the “Fidelity & surety” product line to the “International” product line. All prior period amounts have been restated to reflect this reclassification.

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

15

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Revenues
Premiums	$	1,707		$	1,724		$	1,762		$	1,777		$	1,743		$	1,773		$	3,431		$	3,516
Net investment income	120			118			108			75			83			100			238			183
Other revenues	21			19			18			17			21			21			40			42
Total revenues	1,848			1,861			1,888			1,869			1,847			1,894			3,709			3,741
Claims and expenses
Claims and claim adjustment expenses	1,073			1,160			1,374			1,009			1,130			1,249			2,233			2,379
Amortization of deferred acquisition costs	344			347			358			361			349			352			691			701
General and administrative expenses (1)	181			193			281			174			170			187			374			357
Total claims and expenses	1,598			1,700			2,013			1,544			1,649			1,788			3,298			3,437
Operating income (loss) before federal income taxes	250			161			(125		)	325			198			106			411			304
Income taxes	69			39			(61		)	99			44			18			108			62
Operating income (loss)	$	181		$	122		$	(64	)	$	226		$	154		$	88		$	303		$	242
Other statistics
Effective tax rate on net investment income	19.1		%	18.9		%	17.2		%	8.2		%	12.0		%	16.1		%	19.0		%	14.2		%
Net investment income (after-tax)	$	97		$	96		$	89		$	69		$	73		$	84		$	193		$	157
Catastrophes, net of reinsurance (2):
Pre-tax	$	38		$	165		$	463		$	(48	)	$	71		$	139		$	203		$	210
After-tax	$	25		$	107		$	300		$	(30	)	$	46		$	91		$	132		$	137

(1)  In 3Q 2008, 4Q 2008, 1Q 2009, and 2Q 2009 “General and administrative expenses” includes $96 million, $(19) million, $(34) million, and $(14) million respectively, of estimated hurricane-related assessments from state-created insurance and windstorm insurance entities.

(2)  In 4Q 2008, “Catastrophes, net of reinsurance” includes a net benefit from re-estimation of current year catastrophe losses.

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

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			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Underwriting gain (loss)	$	70		$	14		$	(165	)	$	148		$	67		$	(10	)	$	84		$	57
Net investment income	97			96			89			69			73			84			193			157
Other	14			12			12			9			14			14			26			28
Operating income (loss)	$	181		$	122		$	(64	)	$	226		$	154		$	88		$	303		$	242
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	62.9		%	67.3		%	77.9		%	56.8		%	64.9		%	70.5		%	65.1		%	67.6		%
Underwriting expense ratio (2)	29.3		%	30.0		%	35.0		%	28.8		%	28.4		%	29.1		%	29.7		%	28.8		%
Combined ratio	92.2		%	97.3		%	112.9		%	85.6		%	93.3		%	99.6		%	94.8		%	96.4		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	92.0		%	96.7		%	112.3		%	84.9		%	91.7		%	97.7		%	94.4		%	94.7		%
Impact of catastrophes on combined ratio (3)	2.2		%	9.6		%	26.2		%	-2.7		%	4.1		%	7.9		%	5.9		%	6.0		%
Impact of prior year reserve development on combined ratio	-1.5		%	-2.2		%	-2.5		%	-2.1		%	-3.7		%	-1.9		%	-1.8		%	-2.8		%

(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		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Billing and policy fees	$	24	$	22	$	24	$	22	$	23	$	23	$	46	$	46

(2)  The impact of changes in prior year estimates of hurricane-related assessments, which is not included in the “Impact of catastrophes on the combined ratio”, for 1Q 2009, 2Q 2009, and YTD 2Q 2009 is (2.0), (0.8), and (1.4) points, respectively.

(3)  The impact of catastrophes on the combined ratios for the three months ended September 30, 2008 and December 31, 2008 included 20.8 and (1.6) point impacts, respectively, on the loss and loss adjustment expense ratio, and 5.4 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.

17

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

															YTD		YTD
	1Q		2Q		3Q			4Q		1Q		2Q			2Q		2Q
	2008		2008		2008			2008		2009		2009			2008		2009
Statutory underwriting
Gross written premiums	$	1,679	$	1,909	$	1,954		$	1,749	$	1,727	$	1,948		$	3,588	$	3,675
Net written premiums	$	1,633	$	1,839	$	1,832		$	1,691	$	1,677	$	1,878		$	3,472	$	3,555
Net earned premiums	$	1,707	$	1,724	$	1,762		$	1,777	$	1,743	$	1,773		$	3,431	$	3,516
Losses and loss adjustment expenses	1,074		1,159		1,374			1,009		1,130		1,249			2,233		2,379
Underwriting expenses	492		552		590			515		521		549			1,044		1,070
Statutory underwriting gain (loss)	$	141	$	13	$	(202	)	$	253	$	92	$	(25	)	$	154	$	67
Policies in force (in thousands)
Automobile	2,495		2,526		2,538			2,526		2,509		2,491			2,526		2,491
Homeowners and other	4,702		4,755		4,808			4,831		4,861		4,901			4,755		4,901

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

18

The Travelers Companies, Inc.
Selected Statistics - Personal Insurance (Agency Automobile) (1)
($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Statutory underwriting
Gross written premiums	$	930		$	939		$	934		$	877		$	924		$	919		$	1,869		$	1,843
Net written premiums	$	922		$	933		$	926		$	870		$	917		$	914		$	1,855		$	1,831
Net earned premiums	$	911		$	919		$	936		$	939		$	913		$	917		$	1,830		$	1,830
Losses and loss adjustment expenses	649			637			655			672			668			639			1,286			1,307
Underwriting expenses	259			263			260			247			254			249			522			503
Statutory underwriting gain (loss)	$	3		$	19		$	21		$	20		$	(9	)	$	29		$	22		$	20
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	71.3		%	69.3		%	69.9		%	71.6		%	73.2		%	69.7		%	70.3		%	71.4		%
Underwriting expense ratio	27.4		%	27.8		%	27.5		%	27.5		%	27.0		%	26.7		%	27.6		%	26.8		%
Combined ratio	98.7		%	97.1		%	97.4		%	99.1		%	100.2		%	96.4		%	97.9		%	98.2		%
Impact of catastrophes on combined ratio	0.0		%	1.5		%	0.7		%	0.0		%	0.9		%	1.0		%	0.8		%	0.9		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	14		$	6		$	—		$	8		$	9		$	14		$	17
After-tax	$	—		$	9		$	4		$	—		$	5		$	6		$	9		$	11
Policies in force (in thousands)	2,495			2,522			2,528			2,512			2,489			2,466
Change from prior year quarter	1.6		%	2.4		%	2.4		%	1.3		%	-0.2		%	-2.3		%
Change from prior quarter	0.6		%	1.1		%	0.2		%	-0.6		%	-0.9		%	-0.9		%

(1)  Represents Automobile sold through agents, brokers and other intermediaries, and excludes direct to consumer.

(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		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Billing and policy fees	$	14	$	13	$	14	$	13	$	13	$	14	$	27	$	27

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

19

The Travelers Companies, Inc.
Selected Statistics - Personal Insurance (Agency Homeowners and Other) (1)
($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Statutory underwriting
Gross written premiums	$	749		$	970		$	1,015		$	865		$	792		$	1,018		$	1,719		$	1,810
Net written premiums	$	711		$	906		$	902		$	814		$	749		$	952		$	1,617		$	1,701
Net earned premiums	$	796		$	805		$	825		$	835		$	824		$	846		$	1,601		$	1,670
Losses and loss adjustment expenses	425			522			719			335			458			599			947			1,057
Underwriting expenses	229			279			317			255			239			268			508			507
Statutory underwriting gain (loss)	$	142		$	4		$	(211	)	$	245		$	127		$	(21	)	$	146		$	106
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	53.3		%	64.9		%	87.1		%	40.2		%	55.6		%	70.8		%	59.2		%	63.3		%
Underwriting expense ratio	31.2		%	31.4		%	42.1		%	28.8		%	26.8		%	28.4		%	31.3		%	27.6		%
Combined ratio	84.5		%	96.3		%	129.2		%	69.0		%	82.4		%	99.2		%	90.5		%	90.9		%
Impact of catastrophes on combined ratio	4.8		%	18.8		%	55.3		%	-5.6		%	7.6		%	15.3		%	11.8		%	11.5		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	38		$	151		$	457		$	(48	)	$	63		$	130		$	189		$	193
After-tax	$	25		$	98		$	296		$	(30	)	$	41		$	85		$	123		$	126
Policies in force (in thousands)	4,702			4,753			4,804			4,824			4,850			4,886
Change from prior year quarter	2.7		%	2.6		%	3.0		%	3.0		%	3.1		%	2.8		%
Change from prior quarter	0.4		%	1.1		%	1.1		%	0.4		%	0.5		%	0.7		%

(1)  Represents Homeowners and Other Lines sold through agents, brokers and other intermediaries, and excludes direct to consumer.

(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		2Q		2Q
	2008		2008		2008		2008		2009		2009		2008		2009
Billing and policy fees	$	10	$	9	$	10	$	9	$	10	$	9	$	19	$	19

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

20

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Revenues
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	2			—			—			—			—			9			2			9
Total revenues	2			—			—			—			—			9			2			9
Claims and expenses
Interest expense	90			90			94			93			92			94			180			186
General and administrative expenses	12			6			6			5			7			13			18			20
Total claims and expenses	102			96			100			98			99			107			198			206
Operating loss before federal income tax benefit	(100		)	(96		)	(100		)	(98		)	(99		)	(98		)	(196		)	(197		)
Income taxes	(36		)	(30		)	(33		)	(38		)	(49		)	(49		)	(66		)	(98		)
Operating loss	$	(64	)	$	(66	)	$	(67	)	$	(60	)	$	(50	)	$	(49	)	$	(130	)	$	(99	)

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

21

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

	June 30,		December 31,
	2009 (1)		2008
Assets
Fixed maturities, available for sale at fair value (including $80 and $8 subject to securities lending) (amortized cost $61,828 and $61,569)	$	62,967	$	61,275
Equity securities, at fair value (cost $386 and $461)	382		379
Real estate	878		827
Short-term securities	6,445		5,222
Other investments	2,771		3,035
Total investments	73,443		70,738
Cash	282		350
Investment income accrued	808		823
Premiums receivable	6,220		5,954
Reinsurance recoverables	13,694		14,232
Ceded unearned premiums	974		941
Deferred acquisition costs	1,822		1,774
Deferred tax asset	1,428		1,965
Contractholder receivables	6,452		6,350
Goodwill	3,365		3,366
Other intangible assets	636		688
Other assets	2,202		2,570
Total assets	$	111,326	$	109,751

	June 30,			December 31,
	2009 (1)			2008
Liabilities
Claims and claim adjustment expense reserves	$	54,372		$	54,723
Unearned premium reserves	11,184			10,957
Contractholder payables	6,452			6,350
Payables for reinsurance premiums	606			528
Debt	6,532			6,181
Other liabilities	5,260			5,693
Total liabilities	84,406			84,432
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.3 shares issued and outstanding)	83			89
Common stock (1,750.0 shares authorized; 567.5 and 585.1 shares issued and outstanding)	19,353			19,242
Retained earnings	14,442			13,314
Accumulated other changes in equity from nonowner sources	258			(900		)
Treasury stock, at cost (148.2 and 128.8 shares)	(7,216		)	(6,426		)
Total shareholders’ equity	26,920			25,319
Total liabilities and shareholders’ equity	$	111,326		$	109,751

(1) Preliminary.

22

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

	June 30,		Pre-tax Book		December 31,			Pre-tax Book
	2009		Yield (1)		2008			Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	23,163	5.32	%	$	22,481		5.32	%
Tax-exempt fixed maturities	39,804		4.13	%	38,794			4.14	%
Total fixed maturities	62,967		4.58	%	61,275			4.59	%
Non-redeemable preferred stocks	214		6.64	%	219			6.35	%
Common stocks	168				160
Total equity securities	382				379
Real estate	878				827
Short-term securities	6,445		0.36	%	5,222			1.20	%
Private equities	1,411				1,505
Hedge funds	492				531
Real estate joint ventures & other	807				886
Mortgage loans	41		6.51	%	94			8.06	%
Trading securities	20				19
Total other investments	2,771				3,035
Total investments	$	73,443			$	70,738
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	865			$	(144	)

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

23

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

	June 30,		December 31,
	2009		2008
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	1,628	$	1,841
Obligations of states and political subdivisions	40,128		39,062
Debt securities issued by foreign governments	1,728		1,519
Mortgage-backed securities - principally obligations of U.S. Government agencies	5,521		6,059
Corporates (including redeemable preferreds)	13,962		12,794
Total fixed maturities	$	62,967	$	61,275
Fixed Maturities
Quality Characteristics (1)
	June 30, 2009
	Amount		% of Total
Quality Ratings
Aaa	$	26,499	42.1		%
Aa	24,390		38.7
A	6,843		10.9
Baa	3,632		5.8
Total investment grade	61,364		97.5
Ba	864		1.3
B	483		0.8
Caa and lower	256		0.4
Total below investment grade	1,603		2.5
Total fixed maturities	$	62,967	100.0		%
Average weighted quality	Aa2, AA
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.0

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

24

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Gross investment income
Fixed maturities	$	736		$	726		$	727		$	726		$	713		$	691		$	1,462		$	1,404
Short-term securities	52			32			36			23			10			7			84			17
Other	39			32			(37		)	(256		)	(175		)	(33		)	71			(208		)
	827			790			726			493			548			665			1,617			1,213
Investment expenses	12			12			10			10			6			7			24			13
Net investment income, pre-tax	815			778			716			483			542			658			1,593			1,200
Income taxes	165			154			129			45			68			111			319			179
Net investment income, after-tax	$	650		$	624		$	587		$	438		$	474		$	547		$	1,274		$	1,021
Effective tax rate	20.2		%	19.8		%	18.1		%	9.5		%	12.6		%	16.7		%	20.0		%	14.9		%
Average invested assets (1)	$	74,733		$	74,156		$	74,256		$	73,588		$	72,720		$	72,589		$	74,491		$	72,713
Average yield pre-tax (1)	4.4		%	4.2		%	3.9		%	2.6		%	3.0		%	3.6		%	4.3		%	3.3		%
Average yield after-tax	3.5		%	3.4		%	3.2		%	2.4		%	2.6		%	3.0		%	3.4		%	2.8		%

(1)  Excludes net unrealized investment gains (losses), net of tax, and is adjusted for cash, receivables for investment sales, payables on investment purchases and accrued investment income.

25

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

																				YTD			YTD
		1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
		2008			2008			2008			2008			2009			2009			2008			2009
Net realized investment gains (losses)
Fixed maturities		$	(32	)	$	6		$	(153	)	$	(192	)	$	(100	)	$	(2	)	$	(26	)	$	(102	)
Equity securities		(1		)	(14		)	(28		)	(29		)	(74		)	1			(15		)	(73		)
Other (1)		(29		)	44			11			2			(40		)	14			15			(26		)
Realized investment gains (losses) before tax		(62		)	36			(170		)	(219		)	(214		)	13			(26		)	(201		)
Related taxes		(21		)	12			(54		)	(81		)	(77		)	5			(9		)	(72		)
Net realized investment gains (losses)		$	(41	)	$	24		$	(116	)	$	(138	)	$	(137	)	$	8		$	(17	)	$	(129	)
Gross investment gains (1)		$	89		$	138		$	91		$	160		$	105		$	116		$	227		$	221
Gross investment losses before impairments (1)		(113		)	(74		)	(105		)	(181		)	(135		)	(73		)	(187		)	(208		)
Net investment gains (losses) before impairments		(24		)	64			(14		)	(21		)	(30		)	43			40			13
Other-than-temporary impairment losses:
Total losses		(38		)	(28		)	(156		)	(198		)	(184		)	(75		)	(66		)	(259		)
Portion of losses recognized in accumulated other changes in equity from nonowner sources		—			—			—			—			—			45			—			45
Other-than-temporary impairment losses		(38		)	(28		)	(156		)	(198		)	(184		)	(30		)	(66		)	(214		)
Net realized investment gains (losses) before tax		(62		)	36			(170		)	(219		)	(214		)	13			(26		)	(201		)
Related taxes		(21		)	12			(54		)	(81		)	(77		)	5			(9		)	(72		)
Net realized investment gains (losses)		$	(41	)	$	24		$	(116	)	$	(138	)	$	(137	)	$	8		$	(17	)	$	(129	)
		March 31,			June 30,			September 30,			December 31,			March 31,			June 30,
		2008			2008			2008			2008			2009			2009
Net unrealized investment gains (losses), net of tax, by asset type
Fixed maturities		$	695		$	(73	)	$	(1,406	)	$	(294	)	$	732		$	1,139
Equity securities & other		168			159			115			41			71			157
Unrealized investment gains (losses) before tax		863			86			(1,291		)	(253		)	803			1,296
Related taxes		287			23			(473		)	(109		)	260			431
Balance, end of period		$	576		$	63		$	(818	)	$	(144	)	$	543		$	865
(1)  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	$	42		$	49		$	48		$	51		$	76		$	71		$	91		$	147
	Gross investment Treasury future losses	$	56		$	39		$	52		$	96		$	76		$	46		$	95		$	122

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

26

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

	June 30,			December 31,
	2009			2008
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	8,876		$	9,376
Allowance for uncollectible reinsurance	(606		)	(618		)
Net reinsurance recoverables	8,270			8,758
Mandatory pools and associations	1,931			1,957
Structured settlements	3,493			3,517
Total reinsurance recoverables	$	13,694		$	14,232

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

	A.M. Best Rating of Group’s	June 30,		December 31,
Reinsurer	Predominant Reinsurer	2009		2008
Swiss Re Group	A third highest of 16 ratings	$	932	$	1,009
Munich Re Group	A+ second highest of 16 ratings	799		831
Transatlantic Holdings, Inc. (1)	A third highest of 16 ratings	487		495
XL Capital Group	A third highest of 16 ratings	436		465
Berkshire Hathaway Group	A++ highest of 16 ratings	415		495

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 June 30, 2009, after deducting mandatory pool and structured settlement balances, $6.6 billion, or 80%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 98% were rated A- or better.  The remaining 20% 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 4% were balances from other companies not rated by A.M. Best Company.  In addition, $2.4 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at June 30, 2009.

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	June 30,		December 31,
Group	Predominant Insurer	2009		2008
Old Mutual	A- fourth highest of 16 ratings	$	1,062	$	1,075
Metlife	A+ second highest of 16 ratings	540		554
Genworth	A third highest of 16 ratings	477		485
Symetra	A third highest of 16 ratings	293		296
ING Group	A third highest of 16 ratings	238		242

27

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Business Insurance
Beginning of period	$	34,021		$	33,718		$	33,649		$	33,310		$	32,270		$	32,043		$	34,021		$	32,270
Incurred	1,517			1,576			1,868			1,509			1,592			1,603			3,093			3,195
Paid	(1,736		)	(1,696		)	(2,148		)	(1,683		)	(1,816		)	(1,688		)	(3,432		)	(3,504		)
Acquired (sold) reserves, foreign exchange and other (1)	(84		)	51			(59		)	(866		)	(3		)	28			(33		)	25
End of period	$	33,718		$	33,649		$	33,310		$	32,270		$	32,043		$	31,986		$	33,649		$	31,986
Financial, Professional & International Insurance
Beginning of period	$	5,520		$	5,590		$	5,650		$	5,703		$	5,397		$	5,503		$	5,520		$	5,397
Incurred	387			383			539			456			437			448			770			885
Paid	(324		)	(294		)	(324		)	(468		)	(309		)	(338		)	(618		)	(647		)
Acquired (sold) reserves, foreign exchange and other	7			(29		)	(162		)	(294		)	(22		)	208			(22		)	186
End of period	$	5,590		$	5,650		$	5,703		$	5,397		$	5,503		$	5,821		$	5,650		$	5,821
Personal Insurance
Beginning of period	$	3,527		$	3,532		$	3,586		$	3,835		$	3,640		$	3,610		$	3,527		$	3,640
Incurred	1,074			1,159			1,374			1,009			1,130			1,249			2,233			2,379
Paid	(1,069		)	(1,105		)	(1,125		)	(1,204		)	(1,160		)	(1,171		)	(2,174		)	(2,331		)
End of period	$	3,532		$	3,586		$	3,835		$	3,640		$	3,610		$	3,688		$	3,586		$	3,688
Total
Beginning of period	$	43,068		$	42,840		$	42,885		$	42,848		$	41,307		$	41,156		$	43,068		$	41,307
Incurred	2,978			3,118			3,781			2,974			3,159			3,300			6,096			6,459
Paid	(3,129		)	(3,095		)	(3,597		)	(3,355		)	(3,285		)	(3,197		)	(6,224		)	(6,482		)
Acquired (sold) reserves, foreign exchange and other (1)	(77		)	22			(221		)	(1,160		)	(25		)	236			(55		)	211
End of period	$	42,840		$	42,885		$	42,848		$	41,307		$	41,156		$	41,495		$	42,885		$	41,495
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	70		$	—		$	—		$	—		$	—		$	—
Environmental	—			85			—			—			—			70			85			70
All other	(312		)	(442		)	(317		)	(205		)	(182		)	(286		)	(754		)	(468		)
Prior year development excluding accretion of discount	(312		)	(357		)	(247		)	(205		)	(182		)	(216		)	(669		)	(398		)
Accretion of discount	15			16			15			14			14			14			31			28
Total Business Insurance	(297		)	(341		)	(232		)	(191		)	(168		)	(202		)	(638		)	(370		)
Financial, Professional & International Insurance	(63		)	(132		)	(43		)	(36		)	(12		)	(11		)	(195		)	(23		)
Personal Insurance	(25		)	(37		)	(44		)	(37		)	(64		)	(34		)	(62		)	(98		)
Total	$	(385	)	$	(510	)	$	(319	)	$	(264	)	$	(244	)	$	(247	)	$	(895	)	$	(491	)

(1)  Reflects the sale of Unionamerica Holdings, Ltd. in 4Q 2008, decreasing net reserves by $790 million in Business Insurance.

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

28

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Asbestos reserves
Beginning reserves:
Direct	$	4,353		$	4,272		$	4,184		$	3,728		$	3,299		$	3,216		$	4,353		$	3,299
Ceded	(619		)	(600		)	(588		)	(501		)	(385		)	(363		)	(619		)	(385		)
Net	3,734			3,672			3,596			3,227			2,914			2,853			3,734			2,914
Incurred losses and loss expenses:
Direct	—			—			70			—			—			—			—			—
Ceded	—			—			—			—			—			—			—			—
Losses paid:
Direct (1)	81			88			526			99			83			80			169			163
Ceded	(19		)	(12		)	(87		)	(18		)	(22		)	(18		)	(31		)	(40		)
Sale of subsidiary: (2)
Direct	—			—			—			330			—			—			—			—
Ceded	—			—			—			(98		)	—			—			—			—
Ending reserves:
Direct	4,272			4,184			3,728			3,299			3,216			3,136			4,184			3,136
Ceded	(600		)	(588		)	(501		)	(385		)	(363		)	(345		)	(588		)	(345		)
Net	$	3,672		$	3,596		$	3,227		$	2,914		$	2,853		$	2,791		$	3,596		$	2,791
Environmental reserves
Beginning reserves:
Direct	$	478		$	450		$	499		$	472		$	400		$	378		$	478		$	400
Ceded	12			12			12			13			14			14			12			14
Net	490			462			511			485			414			392			490			414
Incurred losses and loss expenses:
Direct	—			85			—			—			—			85			85			85
Ceded	—			—			—			—			—			(15		)	—			(15		)
Losses paid:
Direct	28			36			27			32			22			38			64			60
Ceded	—			—			(1		)	6			—			(4		)	—			(4		)
Sale of subsidiary: (2)
Direct	—			—			—			40			—			—			—			—
Ceded	—			—			—			(7		)	—			—			—			—
Ending reserves:
Direct	450			499			472			400			378			425			499			425
Ceded	12			12			13			14			14			3			12			3
Net	$	462		$	511		$	485		$	414		$	392		$	428		$	511		$	428

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

(2)  In December 2008, the Company completed the sale of its subsidiary Unionamerica Holdings, Ltd.

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

29

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

	June 30,			December 31,
	2009			2008
Debt
Short-term debt
Commercial paper	$	100		$	100
Zero coupon convertible notes due March 3, 2009, effective yield 4.17%	—			140
7.81% Private placement note due September 16, 2009	2			2
8.125% Senior notes due April 15, 2010 (1)	250			—
Total short-term debt	352			242
Long-term debt
8.125% Senior notes due April 15, 2010 (1)	—			250
7.415% Medium-term notes due August 23, 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			4
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			500
5.90% Senior notes due June 2, 2019 (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	6,188			5,938
Unamortized fair value adjustment	63			68
Unamortized debt issuance costs	(71		)	(67		)
	6,180			5,939
Total debt	6,532			6,181
Preferred equity	83			89
Common equity (excluding net unrealized investment gains (losses), net of tax)	25,972			25,374
Total capital (excluding net unrealized investment gains (losses), net of tax)	$	32,587		$	31,644
Total debt to capital (excluding net unrealized investment gains (losses), net of tax)	20.0		%	19.5		%

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

30

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

	June 30,			December 31,
	2009 (1)			2008
Statutory capital and surplus	$	21,267		$	21,491
GAAP adjustments
Goodwill and intangible assets	3,794			3,841
Investments	1,819			342
Noninsurance companies	(3,002		)	(3,924		)
Deferred acquisition costs	1,822			1,774
Deferred federal income tax	201			699
Current federal income tax	(90		)	(86		)
Reinsurance recoverables	295			295
Furniture, equipment & software	616			526
Employee benefits	10			40
Agents balances	105			122
Other	83			199
Total GAAP adjustments	5,653			3,828
GAAP shareholders’ equity	$	26,920		$	25,319

(1) Estimated and Preliminary

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Cash flows from operating activities
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	1,909		$	1,402
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	62			(36		)	170			219			214			(13		)	26			201
Depreciation and amortization	213			201			213			194			206			209			414			415
Deferred federal income tax expense (benefit)	(8		)	34			23			(107		)	22			(53		)	26			(31		)
Amortization of deferred acquisition costs	954			961			990			975			944			953			1,915			1,897
Equity in (income) loss from other investments	(17		)	(16		)	67			278			194			58			(33		)	252
Premiums receivable	(28		)	(177		)	158			213			(78		)	(188		)	(205		)	(266		)
Reinsurance recoverables	272			10			251			676			167			371			282			538
Deferred acquisition costs	(968		)	(991		)	(991		)	(895		)	(948		)	(997		)	(1,959		)	(1,945		)
Claims and claim adjustment expense reserves	(386		)	(38		)	(249		)	(1,360		)	(373		)	22			(424		)	(351		)
Unearned premium reserves	15			97			38			(420		)	64			163			112			227
Other	(149		)	(283		)	58			(9		)	(261		)	(289		)	(432		)	(550		)
Net cash provided by operating activities	927			704			942			565			813			976			1,631			1,789
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,604			1,084			982			1,199			1,210			1,179			2,688			2,389
Proceeds from sales of investments:
Fixed maturities	1,044			1,405			1,139			3,344			630			1,234			2,449			1,864
Equity securities	12			24			11			6			16			15			36			31
Real estate	—			25			—			—			—			—			25			—
Other investments	246			178			123			108			92			48			424			140
Purchases of investments:
Fixed maturities	(2,350		)	(2,063		)	(2,222		)	(4,492		)	(2,265		)	(2,006		)	(4,413		)	(4,271		)
Equity securities	(21		)	(25		)	(43		)	(6		)	(12		)	(6		)	(46		)	(18		)
Real estate	(9		)	(16		)	(6		)	(7		)	(5		)	(4		)	(25		)	(9		)
Other investments	(123		)	(162		)	(242		)	(140		)	(112		)	(74		)	(285		)	(186		)
Net (purchases) sales of short-term securities	320			(667		)	407			(466		)	(451		)	(772		)	(347		)	(1,223		)
Securities transactions in course of settlement	43			31			(461		)	69			398			(32		)	74			366
Other	(72		)	(91		)	(104		)	222			(84		)	(121		)	(163		)	(205		)
Net cash provided by (used in) investing activities	694			(277		)	(416		)	(163		)	(583		)	(539		)	417			(1,122		)

32

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2008			2008			2008			2008			2009			2009			2008			2009
Cash flows from financing activities
Payment of debt	(400		)	—			(3		)	(149		)	(141		)	—			(400		)	(141		)
Issuance of debt	—			496			—			—			—			494			496			494
Dividends paid to shareholders	(179		)	(180		)	(177		)	(179		)	(178		)	(172		)	(359		)	(350		)
Issuance of common stock - employee share options	15			44			13			17			10			18			59			28
Treasury stock acquired - share repurchase authorization	(1,000		)	(765		)	(290		)	(112		)	—			(750		)	(1,765		)	(750		)
Treasury stock acquired - net employee share-based compensation	(26		)	(2		)	—			(1		)	(27		)	(1		)	(28		)	(28		)
Excess tax benefits from share-based payment arrangements	4			3			1			2			1			1			7			2
Net cash used in financing activities	(1,586		)	(404		)	(456		)	(422		)	(335		)	(410		)	(1,990		)	(745		)
Effect of exchange rate changes on cash	2			(2		)	(12		)	(17		)	—			10			—			10
Net increase (decrease) in cash	37			21			58			(37		)	(105		)	37			58			(68		)
Cash at beginning of period	271			308			329			387			350			245			271			350
Cash at end of period	$	308		$	329		$	387		$	350		$	245		$	282		$	329		$	282
Income taxes paid	$	78		$	637		$	117		$	9		$	34		$	329		$	715		$	363
Interest paid	$	72		$	112		$	64		$	127		$	63		$	122		$	184		$	185

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The Travelers Companies, Inc. Financial Supplement - Second Quarter 2009 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.

GAAP combined ratio excluding incremental impact of direct to consumer initiative is the GAAP combined ratio adjusted to exclude the direct, variable impact of the company’s direct-to-consumer initiative in Personal Insurance. In the opinion of the company’s management, this is useful in an analysis of the profitability of the company’s ongoing agency auto business.

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.

Debt to capital is debt divided by shareholders’ equity excluding the after-tax impact of net unrealized investment gains and losses (i.e., excluding FAS 115).  In the opinion of the company’s management, the debt to capital ratio is useful in an analysis of the company’s leverage.

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, Aviation, 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 the assumed reinsurance, healthcare and certain international 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 coverages, which require a primarily credit-based underwriting process, 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.

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