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

31

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

33

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.

34