8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported):  October 22, 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 October 22, 2009, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2009, and the availability of the Company’s third quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

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

Item 9.01.  Financial Statements and Exhibits.

(d)	Exhibits.
Exhibit No.	Description
99.1	Press Release, dated October 22, 2009, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third 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:       October 22, 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 October 22, 2009, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third 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 Third Quarter 2009 Net Income per
Diluted Share and Operating Income per Diluted Share of
$1.65 and $1.61, Respectively

Board of Directors Approves a 10% Increase in the

Company’s Regular Quarterly Dividend per

Share and Authorizes an Additional $6 Billion

Share Repurchase Program

Guidance for 2009 Operating Income per Diluted Share
Increased to $5.30-$5.50, from $4.80-$5.05

·      Net and operating income of $935 million and $914 million, respectively.

·Positive renewal rate changes across all three business segments.

·Book value per share of $51.24, an increase of 22 percent from prior year quarter.

·Repurchased 20.8 million common shares for $1.0 billion in the third quarter; guidance assumes fourth quarter repurchases of $1.5 billion.

·Three percent decline in net written premiums from prior year quarter largely attributable to the decline in economic activity in recent quarters.

·Catastrophe losses of $103 million after-tax ($158 million pre-tax) in the third quarter, compared to $682 million after-tax ($1.0 billion pre-tax) in the prior year quarter.

·S&P affirmed financial strength ratings of AA- and debt ratings of A- on August 11, 2009 and revised their outlook on these ratings to positive from stable with a one year time horizon for consideration of an upgrade.

NEW YORK, October 22, 2009 —  The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $935 million, or $1.65 per diluted share, for the quarter ended September 30, 2009, compared to $214 million, or $0.36 per diluted share, for the quarter ended September 30, 2008. Operating income in the current quarter was $914 million, or $1.61 per diluted share, compared to $330 million, or $0.55 per diluted share, in the prior year quarter.

“We are pleased to report strong third quarter operating income of $914 million and operating return on equity of 14.1%,” commented Jay Fishman, Chairman and Chief Executive Officer. “These results were driven by underwriting profitability in each of our business segments and increased net investment income, as our non-fixed income portfolio yield improved to a positive level.

“We were once again successful in achieving positive renewal rate changes across all of our business segments, although net written premiums were down modestly, largely attributable to declining economic activity in recent quarters.  As in previous quarters, we remain cautious about the magnitude of rate gains that are achievable in the near term given general economic conditions.  Nonetheless, we plan to continue to seek rate gains where needed and we will continue to focus on execution.  Solid retention and new business levels continue to underscore our strong position in the marketplace.

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“With improved stability in the capital markets we deployed excess liquidity that we accumulated over the past several quarters.  We repurchased $1 billion of common shares in the quarter in contrast to our past practice of reduced share repurchases during the catastrophe season.  Furthermore, our guidance for 2009 now includes an assumption of $1.5 billion in common share repurchases in the fourth quarter, an increase from our previous assumption, subject to market conditions and other factors. This change, in combination with our year-to-date performance, has resulted in an increase in our guidance for full year 2009 operating income per diluted share to $5.30-$5.50 from $4.80-$5.05.

“Given our strong earnings performance and cash position and more stable capital markets, we increased our regular quarterly dividend by 10 percent to $0.33 per share.  In addition our Board of Directors has approved an additional $6.0 billion of common share repurchases. Confidence in our strong balance sheet, ability to execute in the marketplace and our strategy of returning excess capital enable us to continue to create shareholder value,” concluded Mr. Fishman.

Consolidated Highlights

($ in millions, except for per share amounts,	Three Months Ended September 30,								Nine Months Ended September 30,
and after-tax, except for premiums)	2009			2008			Change		2009			2008			Change
Net written premiums	$	5,340		$	5,481		(3	)%	$	16,148		$	16,298		(1	)%
Operating income	$	914		$	330		177		$	2,445		$	2,256		8
per diluted share	$	1.61		$	0.55		193		$	4.21		$	3.68		14
Net income	$	935		$	214		337		$	2,337		$	2,123		10
per diluted share	$	1.65		$	0.36		358		$	4.02		$	3.47		16
Book value per share	$	51.24		$	41.94		22		$	51.24		$	41.94		22
Adjusted book value per share	$	47.16		$	43.34		9		$	47.16		$	43.34		9
GAAP combined ratio	89.7		%	104.7		%	(15.0	)pts	91.2		%	94.0		%	(2.8	)pts
Operating return on equity	14.1		%	5.1		%	9.0	pts	12.6		%	11.7		%	0.9	pts
Return on equity	13.6		%	3.4		%	10.2	pts	11.7		%	10.9		%	0.8	pts

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

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Third Quarter 2009 Consolidated Results

The current and prior year quarters included the following:

	Three Months Ended September 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	524		$	(288	)	$	338		$	(208	)
Underwriting gain (loss) includes:
Net favorable prior year reserve development	309			334			202			210
Catastrophes, net of reinsurance	(158		)	(1,042		)	(103		)	(682		)
Re-estimation of the current year loss ratios for the first two quarters of the year	71			—			46			—
Net investment income	763			716			616			587
Other, including interest expense	(66		)	(70		)	(40		)	(49		)
Operating Income	1,221			358			914			330
Net realized investment gains (losses)	29			(170		)	21			(116		)
Income before income taxes	$	1,250		$	188
Net Income							$	935		$	214
GAAP combined ratio	89.7		%	104.7		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	89.1		%	104.5		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(5.7		)pts	(6.2		)pts
Catastrophes, net of reinsurance	2.9		pts	19.1		pts
Re-estimation of the current year loss ratios for the first two quarters of the year	(1.3		)pts	—		pts

The current quarter underwriting gain reflects a GAAP combined ratio, excluding net favorable prior year reserve development and catastrophe losses, of 92.5 percent, as compared to 91.8 percent in the prior year quarter. This increase of 0.7 points primarily resulted from reduced underwriting margins related to pricing and loss cost trends, higher non-catastrophe weather-related losses within Personal Insurance as well as the impact of the company’s recently announced direct to consumer initiative. The GAAP combined ratio in the current quarter benefited from 1.3 points of favorable re-estimation of current year loss ratios which reflects better than expected frequency trends in Business Insurance for the first two quarters of the year.

Net favorable prior year reserve development in the current quarter resulted from better than expected loss experience in each segment, particularly in Business Insurance. The net favorable prior year development in Business Insurance included a $120 million after-tax ($185 million pre-tax) increase to asbestos reserves that was primarily driven by a slight increase in the company’s assumption for projected defense costs related to many policyholders. Overall, the company’s assessment of the underlying asbestos environment did not change significantly from recent periods.

Catastrophe losses in the current quarter, which were considerably lower than the prior year quarter, were related to multiple severe weather events across various regions of the United States.

The investment portfolio, which grew to $76 billion at the end of the current quarter reflective of an increase to net unrealized investment gains of $2.1 billion pre-tax from June 30, 2009, performed very well during the quarter. Net investment income in the current quarter increased from the prior year quarter for the first time since the third

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quarter 2007, despite lower short-term interest rates. This increase was driven by positive returns in the non-fixed income portfolio in the current quarter, compared to negative returns in the prior year quarter, and is primarily due to improved investment market conditions for hedge funds and private equity funds. Net investment income in the fixed income portfolio declined slightly from the prior year quarter due to a 150 basis point reduction in average after-tax short-term interest rates. The current quarter results also include net realized investment gains compared to net realized investment losses in the prior year quarter. The current quarter included other-than-temporary impairments of only $12 million after-tax ($19 million pre-tax), compared to $102 million after-tax ($156 million pre-tax) in the prior year quarter.

Net written premiums of $5.340 billion in the current quarter declined 3 percent from the prior year quarter. Business retention remained at high levels. Renewal rate changes were positive in each business segment, more than offsetting the impact of lower coverage demands from existing policyholders due to general economic conditions. New business volumes were down slightly from the prior year quarter as modest growth in Business Insurance and Financial, Professional and International Insurance was offset by lower volumes in Personal Insurance.

Capital Management

“This quarter once again demonstrated the company’s significant balance sheet strength,” said Jay Benet, Vice Chairman and Chief Financial Officer. “During the current quarter we grew shareholders’ equity by 5 percent to $28.2 billion after returning $1.2 billion to our shareholders through common share dividends and common share repurchases.  As further acknowledgement of our balance sheet strength, during the quarter S&P affirmed our financial strength ratings of AA- and debt ratings of A- and revised the outlook for these ratings to positive from stable with a one year time horizon for consideration of an upgrade.”

At the end of the third quarter 2009, all of the company’s financial strength indicators were at or better than target levels. Statutory surplus was $22.1 billion, the company’s debt to capital ratio of 20.1 percent (excluding net unrealized investment gains and losses) was at its target level and holding company liquidity of $2.6 billion was more than twice the company’s target level.

Travelers’ Board of Directors has approved an additional $6.0 billion of common share repurchases. This amount is in addition to the $2.1 billion that remained from previous authorizations as of September 30, 2009.  Repurchases may be made from time to time in the open-market, in private transactions, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 of the Securities Exchange Act of 1934 or otherwise.  This authorization does not have a stated expiration date.  The timing and actual number of shares to be repurchased will depend on a variety of factors, including corporate and regulatory requirements, price, catastrophe experience and other market conditions.

The Board of Directors also declared a regular quarterly dividend of $0.33 per common share.  This dividend, which is $0.03 higher than the last regular quarterly dividend, is payable December 31, 2009, to shareholders of record as of the close of business December 10, 2009.

Business Insurance Segment Financial Results

“We continue to focus on effective execution and further strengthening our position in the marketplace,” said Brian MacLean, President and Chief Operating Officer.  “This has enabled us to once again achieve positive renewal rate change, strong retentions and overall attractive margin levels within Business Insurance.  Furthermore, lower than expected frequency trends have resulted in better than expected loss cost trends. Although we continue to see the impact of the economic downturn in many of our businesses, we remain pleased with the results in the quarter.”

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The current and prior year quarters included the following:

	Three Months Ended September 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	366		$	(40	)	$	228		$	(35	)
Underwriting gain (loss) includes:
Net favorable prior year reserve development	262			247			170			152
Catastrophes, net of reinsurance	(86		)	(488		)	(56		)	(318		)
Re-estimation of the current year loss ratios for the first two quarters of the year	77			—			50			—
Net investment income	529			494			429			409
Other, including interest expense	15			8			11			4
Operating Income	$	910		$	462		$	668		$	378
GAAP combined ratio	86.5		%	101.3		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(9.5		)pts	(8.7		)pts
Catastrophes, net of reinsurance	3.1		pts	17.3		pts
Re-estimation of the current year loss ratios for the first two quarters of the year	(2.8		)pts	—		pts

The current quarter underwriting gain reflects a GAAP combined ratio, excluding net favorable prior year reserve development and catastrophe losses, of 92.9 percent, as compared to 92.7 percent in the prior year quarter. This increase of 0.2 points primarily resulted from reduced underwriting margins related to pricing and loss cost trends, partially offset by 2.8 points of favorable re-estimation of current year loss ratios due to better than expected frequency trends for the first two quarters of the year.

Net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience in the general liability, commercial multi-peril and commercial automobile product lines for recent accident years.

Business Insurance net written premiums of $2.611 billion in the current quarter declined 5 percent from the prior year quarter. This decline was driven in large part by premium refunds and mid-term cancellations as a result of lower levels of economic activity during the preceding 12 months. Retention rates remained strong, although slightly lower than recent quarters. Renewal rate trends continued to improve and overall renewal 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 modestly from the prior year quarter.

Select Accounts

·Net written premiums of $655 million declined 1 percent from the prior year quarter primarily due to general economic conditions.

·Retention rates remained strong, although slightly lower than recent quarters.

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

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·New business volumes declined from the prior year quarter as continued strong growth from the success and expansion of TravelersExpressSM, the company’s enhanced quote-to-issue agency platform and multivariate pricing program for smaller businesses, was offset by lower volumes in larger accounts served by Select.

Commercial Accounts

·Net written premiums of $609 million declined 4 percent from the prior year quarter primarily due to general economic conditions.

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

·Renewal premium changes, although slightly negative, were improved from recent quarters as the impact of improving renewal rate trend was partially offset by lower coverage demands from existing policyholders.

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

National Accounts

·Net written premiums of $197 million declined 18 percent from the prior year quarter due to renewal premium changes that were negative, driven by lower coverage demands from existing policyholders, as well as lower premium volume from industry property and workers’ compensation involuntary residual markets.

Industry-Focused Underwriting

·Net written premiums of $564 million declined 8 percent from the prior year quarter due to the effect of current market conditions in Technology, Construction and Public Sector.

Target Risk Underwriting

·Net written premiums of $360 million declined 2 percent from the prior year quarter primarily due to lower new business volumes in Inland Marine, partially offset by continued positive renewal premium changes and strong retention rates in National Property.

Specialized Distribution

·Net written premiums of $221 million declined 3 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

“Performance within Financial, Professional & International Insurance demonstrated the impact of our disciplined underwriting,” said Mr. MacLean.  “Within our management liability and International businesses, loss costs were at or better than expected and we generally achieved positive renewal rate change where margins indicate it is needed.  The construction surety business continues to be impacted by the slow down

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in construction spending, but our high quality credit profile has allowed us to maintain our underwriting margins.”

The current and prior year quarters included the following:

	Three Months Ended September 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	95		$	3		$	69		$	(8	)
Underwriting gain (loss) includes:
Net favorable prior year reserve development	25			43			17			29
Catastrophes, net of reinsurance	(4		)	(91		)	(3		)	(64		)
Net investment income	118			114			93			89
Other, including interest expense	7			4			5			2
Operating Income	$	220		$	121		$	167		$	83
GAAP combined ratio	88.7		%	99.4		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(2.9		)pts	(4.9		)pts
Catastrophes, net of reinsurance	0.5		pts	10.5		pts

The current quarter underwriting gain reflects a GAAP combined ratio, excluding net favorable prior year reserve development and catastrophe losses, of 91.1 percent, as compared to 93.8 percent in the prior year quarter. This improvement of 2.7 points primarily resulted from a lower amount of large losses within International, partially offset by a change in business mix within Bond & Financial Products due to lower construction surety volumes.

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 $870 million declined 3 percent from the prior year quarter. Adjusting for the impact of changes in foreign exchange rates, net written premiums declined 1 percent primarily due to lower business volumes in the construction surety and professional liability businesses in the Bond & Financial Products group, partially offset by growth in International.

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 $574 million declined 6 percent from the prior year quarter primarily reflecting lower business volumes in construction surety, due to reduced public construction project activity, and disciplined underwriting actions in professional liability.

·Retention rates remained strong, although down from recent quarters primarily in professional liability due to underwriting actions.

·Renewal premium changes were positive, compared to flat in the prior year quarter, as the impact of a continued improving renewal rate trend was partially offset by reduced

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exposures related to underwriting actions and lower coverage demands from existing policyholders.

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

International

·Net written premiums of $296 million increased 1 percent from the prior year quarter. After adjusting for the impact of changes in foreign exchange rates, net written premiums increased 9 percent primarily due to results at the company’s Lloyd’s operations and in Ireland.

·Retention rates were slightly lower than the prior year quarter primarily due to underwriting actions taken in the United Kingdom and the company’s operations at Lloyd’s.

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

·New business volumes increased from the prior year quarter driven primarily by the personal lines business in Ireland.

Personal Insurance Segment Financial Results

“Our Personal Insurance business continues to demonstrate sound fundamentals and sustained earnings power,” said Mr. MacLean. “We are generally encouraged by the firming rate environment within the automobile marketplace and are seeing solid growth and profitability in homeowners.”

The current and prior year quarters included the following:

	Three Months Ended September 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After–tax
Underwriting gain (loss)	$	63		$	(251	)	$	41		$	(165	)
Underwriting gain (loss) includes:
Net favorable prior year reserve development	22			44			15			29
Catastrophes, net of reinsurance	(68		)	(463		)	(44		)	(300		)
Re-estimation of the current year loss ratios for the first two quarters of the year	(6		)	—			(4		)	—
Net investment income	116			108			94			89
Other, including interest expense	20			18			14			12
Operating Income (loss)	$	199		$	(125	)	$	149		$	(64	)
GAAP combined ratio	95.2		%	112.9		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	93.3		%	112.3		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(1.3		)pts	(2.5		)pts
Catastrophes, net of reinsurance	3.8		pts	26.2		pts
Re-estimation of the current year loss ratios for the first two quarters of the year	0.3		pts	—		pts

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The current quarter underwriting gain reflects a GAAP combined ratio, excluding net favorable prior year reserve development and catastrophe losses, of 92.7 percent, as compared to 89.2 percent in the prior year quarter.  This increase of 3.5 points primarily resulted from higher non-catastrophe weather-related losses and the impact of the company’s recently announced direct to consumer initiative.

Net favorable prior year reserve development in the current quarter was primarily driven by better than expected loss experience related to Hurricane Ike and the 2007 California wildfires, partially offset by a write down of net recoverables due to the restructuring of the North Carolina Insurance Underwriting Association Beach Plan.

Personal Insurance net written premiums of $1.859 billion increased 1 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.

Agency Automobile

·Net written premiums of $898 million and policies in force each declined 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 declined from the prior year quarter.

Agency Homeowners and Other

·Net written premiums of $946 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 increased from the prior year quarter.

Year-to-Date 2009 Consolidated Results

The current and prior year periods included the following:

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	Nine Months Ended September 30,
	2009			2008			2009			2008
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	1,318		$	877		$	897		$	531
Underwriting gain includes:
Net favorable prior year reserve development	828			1,260			540			811
Catastrophes, net of reinsurance	(441		)	(1,493		)	(287		)	(975		)
Resolution of prior year tax matters							60			—
Net investment income	1,963			2,309			1,637			1,861
Other, including interest expense	(191		)	(201		)	(89		)	(136		)
Other also includes:
Resolution of prior year tax matters							28			—
Operating Income	3,090			2,985			2,445			2,256
Net realized investment losses	(172		)	(196		)	(108		)	(133		)
Income before income taxes	$	2,918		$	2,789
Net Income							$	2,337		$	2,123
GAAP combined ratio	91.2		%	94.0		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	90.6		%	93.8		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(5.1		)pts	(7.8		)pts
Catastrophes, net of reinsurance	2.7		pts	9.3		pts

The current period underwriting gain reflects a GAAP combined ratio of 93.6 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 1.1 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 reduction in the estimate of Texas Windstorm Insurance Association assessments related to Hurricane Ike.

2009 Annual Guidance

Travelers expects that its full year 2009 operating income per diluted share will be in the range of $5.30 to $5.50, as compared to the previously announced range of $4.80 to $5.05.  This guidance includes the reported results for the first nine months of 2009 and estimates for the remainder of 2009 based on a number of assumptions, including:

·Catastrophe losses of $570 million pre-tax and $370 million after-tax, or $0.65 per diluted share, for the full year which incorporates actual experience for the first nine months of 2009 and $129 million pre-tax and $83 million after-tax, or $0.15 per diluted share for the remainder of the year;

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

·No significant changes in short-term interest rates or 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 net unrealized investment gains and losses), after taking into account dividends and share repurchases;

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·Approximately $3.3 billion of share repurchases for the full year ($1.5 billion for the remainder of the year); and

·Weighted average diluted shares of approximately 570 million.

As noted above, the company’s earnings guidance for the full year reflects actual prior year reserve development through the third quarter, but does not assume any additional prior year reserve development, favorable or unfavorable.  The company understands that the earnings estimates published by third parties may include assumed amounts of prior year reserve development for future periods. As a result, third party earnings estimates for the company may not be expressed on a basis comparable to the earnings guidance provided by the company.

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, October 22, 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.

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.

11

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 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 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 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 net unrealized investment gains and losses), 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

12

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 the ratio of debt to the sum of shareholders’ equity and debt excluding the after-tax impact of net unrealized investment gains and losses.  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 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

13

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; increased competition based on price (resulting, for example, from increased price sensitivity of customers due to the economic downturn or from increased use of price comparison rating technologies by personal auto agents) could lead to reduced revenues and reduced margins; 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 third quarter ended September 30, 2009 filed with the Securities and Exchange Commission.

14

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, except per share amounts, and after-tax)	2009			2008			2009			2008
Operating income	$	914		$	330		$	2,445		$	2,256
Net realized investment gains (losses)	21			(116		)	(108		)	(133		)
Net income	$	935		$	214		$	2,337		$	2,123
Basic earnings per share(1)
Operating income	$	1.62		$	0.56		$	4.24		$	3.73
Net realized investment gains (losses)	0.04			(0.20		)	(0.19		)	(0.22		)
Net income	$	1.66		$	0.36		$	4.05		$	3.51
Diluted earnings per share(1)
Operating income	$	1.61		$	0.55		$	4.21		$	3.68
Net realized investment gains (losses)	0.04			(0.19		)	(0.19		)	(0.21		)
Net income	$	1.65		$	0.36		$	4.02		$	3.47
Weighted average number of common shares outstanding (basic)(1)	558.4			586.7			572.8			600.0
Weighted average number of common shares outstanding and common stock equivalents (diluted)(1)	564.1			594.7			577.5			609.1
Common shares outstanding at period end	547.9			587.2			547.9			587.2
Common stock dividends declared	$	166		$	177		$	515		$	535
Operating income (loss) by segment
Business Insurance	$	668		$	378		$	1,775		$	1,719
Financial, Professional & International Insurance	167			83			448			495
Personal Insurance	149			(64		)	391			239
Total segment operating income	984			397			2,614			2,453
Interest Expense and Other	(70		)	(67		)	(169		)	(197		)
	$	914		$	330		$	2,445		$	2,256
Operating return on equity	14.1		%	5.1		%	12.6		%	11.7		%
Return on equity	13.6		%	3.4		%	11.7		%	10.9		%

(1) In accordance with new guidance on 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.

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

15

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, pre-tax)	2009			2008			2009			2008
Revenues
Premiums	$	5,421		$	5,448		$	16,075		$	16,145
Net investment income	763			716			1,963			2,309
Fee income	72			120			234			315
Net realized investment gains (losses)	29			(170		)	(172		)	(196		)
Other revenues	42			31			124			99
	$	6,327		$	6,145		$	18,224		$	18,672
Revenues
Business Insurance	$	3,383		$	3,445		$	9,896		$	10,333
Financial, Professional & International Insurance	986			982			2,821			2,936
Personal Insurance	1,928			1,888			5,669			5,597
Total segment revenues	6,297			6,315			18,386			18,866
Interest Expense and Other	1			—			10			2
	6,298			6,315			18,396			18,868
Net realized investment gains (losses)	29			(170		)	(172		)	(196		)
	$	6,327		$	6,145		$	18,224		$	18,672
Gross written premiums
Business Insurance	$	3,029		$	3,215		$	9,369		$	9,610
Financial, Professional & International Insurance	918			965			2,735			2,976
Personal Insurance	1,988			1,954			5,663			5,542
	$	5,935		$	6,134		$	17,767		$	18,128
Net written premiums
Business Insurance	$	2,611		$	2,748		$	8,387		$	8,464
Financial, Professional & International Insurance	870			901			2,347			2,530
Personal Insurance	1,859			1,832			5,414			5,304
	$	5,340		$	5,481		$	16,148		$	16,298
GAAP combined ratios: (1)
Business Insurance (2)
Loss and loss adjustment expense ratio	53.5		%	67.1		%	56.3		%	58.7		%
Underwriting expense ratio	33.0			34.2			32.1			33.0
Combined ratio	86.5		%	101.3		%	88.4		%	91.7		%
Financial, Professional & International Insurance (2)
Loss and loss adjustment expense ratio	53.3		%	62.9		%	54.1		%	50.9		%
Underwriting expense ratio	35.4			36.5			35.8			36.3
Combined ratio	88.7		%	99.4		%	89.9		%	87.2		%
Personal Insurance
Loss and loss adjustment expense ratio	64.3		%	77.9		%	66.5		%	69.4		%
Underwriting expense ratio	30.9			35.0			29.5			31.5
Combined ratio	95.2		%	112.9		%	96.0		%	100.9		%
Total Company (2)
Loss and loss adjustment expense ratio	57.0		%	69.9		%	59.4		%	60.9		%
Underwriting expense ratio	32.7			34.8			31.8			33.1
Combined ratio	89.7		%	104.7		%	91.2		%	94.0		%

(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.

16

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions; after-tax except as noted)	2009			2008			2009			2008
Reconciliation of underwriting gain (loss) to net income
Pre-tax underwriting gain (loss)	$	524		$	(288	)	$	1,318		$	877
Tax (expense) benefit on underwriting results	(186		)	80			(421		)	(346		)
Underwriting gain (loss)	338			(208		)	897			531
Net investment income	616			587			1,637			1,861
Other, including interest expense	(40		)	(49		)	(89		)	(136		)
Consolidated operating income	914			330			2,445			2,256
Net realized investment gains (losses)	21			(116		)	(108		)	(133		)
Net income	$	935		$	214		$	2,337		$	2,123

	As of
	September 30,		December 31,			September 30,
($ in millions; except per share amounts)	2009		2008			2008
Reconciliation of tangible and adjusted common shareholders’ equity to common shareholders’ equity
Tangible common shareholders’ equity	$	21,935	$	21,402		$	21,452
Goodwill and other intangibles, net of tax	3,908		3,972			3,995
Adjusted common shareholders’ equity	25,843		25,374			25,447
Net unrealized investment gains (losses), net of tax	2,236		(144		)	(818		)
Common shareholders’ equity	$	28,079	$	25,230		$	24,629
Common shares outstanding	547.9		585.1			587.2
Tangible book value per share	$	40.03	$	36.58		$	36.53
Adjusted book value per share	47.16		43.37			43.34
Book value per share	51.24		43.12			41.94

17

	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

18

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc. Financial Supplement - Third 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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	935		$	2,123		$	2,337
Net income per share: (1)
Basic	$	1.56		$	1.56		$	0.36		$	1.36		$	1.12		$	1.27		$	1.66		$	3.51		$	4.05
Diluted	$	1.54		$	1.54		$	0.36		$	1.35		$	1.11		$	1.27		$	1.65		$	3.47		$	4.02
Operating income	$	1,008		$	918		$	330		$	939		$	799		$	732		$	914		$	2,256		$	2,445
Operating income per share: (1)
Basic	$	1.63		$	1.52		$	0.56		$	1.60		$	1.36		$	1.26		$	1.62		$	3.73		$	4.24
Diluted	$	1.60		$	1.50		$	0.55		$	1.58		$	1.34		$	1.25		$	1.61		$	3.68		$	4.21
Return on equity	14.6		%	14.4		%	3.4		%	12.8		%	10.2		%	11.1		%	13.6		%	10.9		%	11.7		%
Operating return on equity	15.6		%	14.3		%	5.1		%	14.7		%	12.4		%	11.3		%	14.1		%	11.7		%	12.6		%
Total assets, at period end	$	114,144		$	113,625		$	112,695		$	109,751		$	110,467		$	111,326		$	112,617		$	112,695		$	112,617
Total equity, at period end	$	26,388		$	25,923		$	24,721		$	25,319		$	26,497		$	26,920		$	28,160		$	24,721		$	28,160
Book value per share, at period end	$	43.31		$	43.56		$	41.94		$	43.12		$	45.12		$	47.29		$	51.24		$	41.94		$	51.24
Less: Net unrealized investment gains (losses), net of tax	0.95			0.11			(1.40		)	(0.25		)	0.93			1.53			4.08			(1.40		)	4.08
Adjusted book value per share, at period end	$	42.36		$	43.45		$	43.34		$	43.37		$	44.19		$	45.76		$	47.16		$	43.34		$	47.16
Weighted average number of common shares outstanding (basic) (1)	615.4			598.2			586.7			583.6			584.6			575.8			558.4			600.0			572.8
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			564.1			609.1			577.5
Common shares outstanding at period end	606.9			592.8			587.2			585.1			585.3			567.5			547.9			587.2			547.9
Common stock dividends declared	$	178		$	180		$	177		$	177		$	177		$	172		$	166		$	535		$	515
Common stock repurchased:
Under repurchase authorization (2)
Shares	20.8			15.3			6.2			2.7			—			18.5			20.8			42.3			39.3
Cost	$	1,000		$	750		$	272		$	100		$	—		$	750		$	1,000		$	2,022		$	1,750
Other
Shares	0.6			0.1			0.1			—			0.7			0.3			—			0.8			1.0
Cost	$	28		$	7		$	2		$	1		$	27		$	13		$	3		$	37		$	43

(1)  In accordance with new guidance on 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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Net income
Operating income	$	1,008		$	918		$	330		$	939		$	799		$	732		$	914		$	2,256		$	2,445
Net realized investment gains (losses)	(41		)	24			(116		)	(138		)	(137		)	8			21			(133		)	(108		)
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	935		$	2,123		$	2,337
Basic earnings per share
Operating income	$	1.63		$	1.52		$	0.56		$	1.60		$	1.36		$	1.26		$	1.62		$	3.73		$	4.24
Net realized investment gains (losses)	(0.07		)	0.04			(0.20		)	(0.24		)	(0.24		)	0.01			0.04			(0.22		)	(0.19		)
Net income	$	1.56		$	1.56		$	0.36		$	1.36		$	1.12		$	1.27		$	1.66		$	3.51		$	4.05
Diluted earnings per share
Operating income	$	1.60		$	1.50		$	0.55		$	1.58		$	1.34		$	1.25		$	1.61		$	3.68		$	4.21
Net realized investment gains (losses)	(0.06		)	0.04			(0.19		)	(0.23		)	(0.23		)	0.02			0.04			(0.21		)	(0.19		)
Net income	$	1.54		$	1.54		$	0.36		$	1.35		$	1.11		$	1.27		$	1.65		$	3.47		$	4.02
Adjustments to net income and weighted average shares for net income EPS calculations: (2)
																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Basic
Net income, as reported	$	967		$	942		$	214		$	801		$	662		$	740		$	935		$	2,123		$	2,337
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(1		)	(1		)	(1		)	(1		)	(3		)	(3		)
Participating share-based awards - allocated income	(6		)	(7		)	(1		)	(6		)	(5		)	(5		)	(6		)	(14		)	(16		)
Net income available to common shareholders - basic	$	960		$	934		$	212		$	794		$	656		$	734		$	928		$	2,106		$	2,318
Diluted
Net income available to common shareholders - basic	$	960		$	934		$	212		$	794		$	656		$	734		$	928		$	2,106		$	2,318
Effect of dilutive securities:
Performance shares	—			—			—			—			—			—			1			—			1
Convertible preferred stock	1			1			1			1			1			1			1			3			3
Zero coupon convertible notes	1			1			1			1			1			—			—			3			1
Net income available to common shareholders - diluted	$	962		$	936		$	214		$	796		$	658		$	735		$	930		$	2,112		$	2,323
Common Shares
Basic
Weighted average shares outstanding	615.4			598.2			586.7			583.6			584.6			575.8			558.4			600.0			572.8
Diluted
Weighted average shares outstanding	615.4			598.2			586.7			583.6			584.6			575.8			558.4			600.0			572.8
Weighted average effects of dilutive securities:
Stock options and performance shares	4.4			4.8			3.3			2.1			2.0			1.9			3.7			4.2			2.1
Convertible preferred stock	2.6			2.5			2.3			2.2			2.2			2.1			2.0			2.5			2.1
Zero coupon convertible notes	2.4			2.4			2.4			2.4			1.6			—			—			2.4			0.5
Diluted weighted average shares outstanding	624.8			607.9			594.7			590.3			590.4			579.8			564.1			609.1			577.5

(1)  In accordance with new guidance on 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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Revenues
Premiums	$	5,340		$	5,357		$	5,448		$	5,434		$	5,301		$	5,353		$	5,421		$	16,145		$	16,075
Net investment income	815			778			716			483			542			658			763			2,309			1,963
Fee income	105			90			120			75			73			89			72			315			234
Net realized investment gains (losses)	(62		)	36			(170		)	(219		)	(214		)	13			29			(196		)	(172		)
Other revenues	34			34			31			32			33			49			42			99			124
Total revenues	6,232			6,295			6,145			5,805			5,735			6,162			6,327			18,672			18,224
Claims and expenses
Claims and claim adjustment expenses	3,021			3,092			3,871			3,009			3,190			3,335			3,123			9,984			9,648
Amortization of deferred acquisition costs	954			961			990			975			944			953			967			2,905			2,864
General and administrative expenses (1)	853			864			1,001			800			782			839			889			2,718			2,510
Interest expense	90			91			95			94			92			94			98			276			284
Total claims and expenses	4,918			5,008			5,957			4,878			5,008			5,221			5,077			15,883			15,306
Income before income taxes	1,314			1,287			188			927			727			941			1,250			2,789			2,918
Income tax expense (benefit)	347			345			(26		)	126			65			201			315			666			581
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	935		$	2,123		$	2,337
Net realized investment gains (losses)
Other-than-temporary impairment losses:
Total losses	$	(38	)	$	(28	)	$	(156	)	$	(198	)	$	(184	)	$	(75	)	$	(43	)	$	(222	)	$	(302	)
Portion of losses recognized in accumulated other changes in equity from nonowner sources	—			—			—			—			—			45			24			—			69
Other-than-temporary impairment losses	(38		)	(28		)	(156		)	(198		)	(184		)	(30		)	(19		)	(222		)	(233		)
Other net realized investment gains (losses)	(24		)	64			(14		)	(21		)	(30		)	43			48			26			61
Net realized investment gains (losses)	$	(62	)	$	36		$	(170	)	$	(219	)	$	(214	)	$	13		$	29		$	(196	)	$	(172	)
Other statistics
Effective tax rate on net investment income	20.2		%	19.8		%	18.1		%	9.5		%	12.6		%	16.7		%	19.2		%	19.4		%	16.6		%
Net investment income (after-tax)	$	650		$	624		$	587		$	438		$	474		$	547		$	616		$	1,861		$	1,637
Catastrophes, net of reinsurance (2):
Pre-tax	$	95		$	356		$	1,042		$	(85	)	$	83		$	200		$	158		$	1,493		$	441
After-tax	$	62		$	231		$	682		$	(56	)	$	54		$	130		$	103		$	975		$	287

(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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
Underwriting gain (loss)		$	401		$	338		$	(208	)	$	545		$	353		$	206		$	338		$	531		$	897
Net investment income		650			624			587			438			474			547			616			1,861			1,637
Other, including interest expense		(43		)	(44		)	(49		)	(44		)	(28		)	(21		)	(40		)	(136		)	(89		)
Operating income		1,008			918			330			939			799			732			914			2,256			2,445
Net realized investment gains (losses)		(41		)	24			(116		)	(138		)	(137		)	8			21			(133		)	(108		)
Net income		$	967		$	942		$	214		$	801		$	662		$	740		$	935		$	2,123		$	2,337
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio		55.7		%	57.0		%	69.9		%	54.9		%	59.7		%	61.4		%	57.0		%	60.9		%	59.4		%
Underwriting expense ratio (3)		31.9		%	32.3		%	34.8		%	31.0		%	30.9		%	31.8		%	32.7		%	33.1		%	31.8		%
Combined ratio		87.6		%	89.3		%	104.7		%	85.9		%	90.6		%	93.2		%	89.7		%	94.0		%	91.2		%
GAAP combined ratio excluding incremental impactof direct to consumer initiative		87.5		%	89.2		%	104.5		%	85.7		%	90.1		%	92.6		%	89.1		%	93.8		%	90.6		%
Impact of catastrophes on combined ratio (4)		1.8		%	6.6		%	19.1		%	-1.6		%	1.6		%	3.7		%	2.9		%	9.3		%	2.7		%
Impact of prior year reserve development on combined ratio		-7.5		%	-9.8		%	-6.2		%	-5.1		%	-4.9		%	-4.9		%	-5.7		%	-7.8		%	-5.1		%
(1)  Before policyholder dividends.
(2)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses as follows:
																							YTD			YTD
		1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
	Billing and policy fees	$	27		$	26		$	27		$	26		$	27		$	27		$	26		$	80		$	80
	Fee income:
	Loss and loss adjustment expenses	$	43		$	30		$	58		$	13		$	20		$	42		$	24		$	131		$	86
	Underwriting expenses	62			60			62			62			53			47			48			184			148
	Total fee income	$	105		$	90		$	120		$	75		$	73		$	89		$	72		$	315		$	234

(3)  The impact of changes in prior year estimates of hurricane-related assessments, which is not included in the impact of catastrophes or prior year reserve development on the combined ratio, is (1.2), (0.5), and (0.5) points for 1Q 2009, 2Q 2009, and YTD 3Q 2009, 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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Revenues
Premiums	$	5,340		$	5,357		$	5,448		$	5,434		$	5,301		$	5,353		$	5,421		$	16,145		$	16,075
Net investment income	815			778			716			483			542			658			763			2,309			1,963
Fee income	105			90			120			75			73			89			72			315			234
Other revenues	34			34			31			32			33			49			42			99			124
Total revenues	6,294			6,259			6,315			6,024			5,949			6,149			6,298			18,868			18,396
Claims and expenses
Claims and claim adjustment expenses	3,021			3,092			3,871			3,009			3,190			3,335			3,123			9,984			9,648
Amortization of deferred acquisition costs	954			961			990			975			944			953			967			2,905			2,864
General and administrative expenses	853			864			1,001			800			782			839			889			2,718			2,510
Interest expense	90			91			95			94			92			94			98			276			284
Total claims and expenses	4,918			5,008			5,957			4,878			5,008			5,221			5,077			15,883			15,306
Operating income before income taxes	1,376			1,251			358			1,146			941			928			1,221			2,985			3,090
Income tax expense	368			333			28			207			142			196			307			729			645
Operating income	$	1,008		$	918		$	330		$	939		$	799		$	732		$	914		$	2,256		$	2,445
Other statistics
Effective tax rate on net investment income	20.2		%	19.8		%	18.1		%	9.5		%	12.6		%	16.7		%	19.2		%	19.4		%	16.6		%
Net investment income (after-tax)	$	650		$	624		$	587		$	438		$	474		$	547		$	616		$	1,861		$	1,637
Catastrophes, net of reinsurance (1):
Pre-tax	$	95		$	356		$	1,042		$	(85	)	$	83		$	200		$	158		$	1,493		$	441
After-tax	$	62		$	231		$	682		$	(56	)	$	54		$	130		$	103		$	975		$	287

(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		3Q			3Q			3Q
	2008			2008		2008			2008			2009			2009		2009			2008			2009
Statutory underwriting
Gross written premiums	$	5,933		$	6,061	$	6,134		$	5,709		$	5,863		$	5,969	$	5,935		$	18,128		$	17,767
Net written premiums	$	5,188		$	5,629	$	5,481		$	5,385		$	5,203		$	5,605	$	5,340		$	16,298		$	16,148
Net earned premiums	$	5,340		$	5,357	$	5,448		$	5,434		$	5,301		$	5,353	$	5,421		$	16,145		$	16,075
Losses and loss adjustment expenses	2,978			3,118		3,781			2,974			3,159			3,300		3,090			9,877			9,549
Underwriting expenses	1,706			1,766		1,811			1,643			1,710			1,724		1,770			5,283			5,204
Statutory underwriting gain (loss)	656			473		(144		)	817			432			329		561			985			1,322
Policyholder dividends	7			9		4			11			8			6		7			20			21
Statutory underwriting gain (loss) after policyholder dividends	$	649		$	464	$	(148	)	$	806		$	424		$	323	$	554		$	965		$	1,301
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	42,840		$	42,885	$	42,848		$	41,307		$	41,156		$	41,495	$	41,357		$	42,848		$	41,357
Increase (decrease) in reserves	$	(228	)	$	45	$	(37	)	$	(1,541	)	$	(151	)	$	339	$	(138	)	$	(220	)	$	50
Statutory surplus	$	22,353		$	22,288	$	21,929		$	21,491		$	21,561		$	21,267	$	22,050		$	21,929		$	22,050
Net written premiums/surplus (1)	0.97:1			0.97:1		0.99:1			1.01:1			1.01:1			1.02:1		0.98:1			0.99:1			0.98:1

(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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Written premiums
Gross	$	5,933		$	6,061		$	6,134		$	5,709		$	5,863		$	5,969		$	5,935		$	18,128		$	17,767
Ceded	(745		)	(432		)	(653		)	(324		)	(660		)	(364		)	(595		)	(1,830		)	(1,619		)
Net	$	5,188		$	5,629		$	5,481		$	5,385		$	5,203		$	5,605		$	5,340		$	16,298		$	16,148
Earned premiums
Gross	$	5,932		$	5,957		$	6,035		$	5,978		$	5,808		$	5,862		$	5,915		$	17,924		$	17,585
Ceded	(592		)	(600		)	(587		)	(544		)	(507		)	(509		)	(494		)	(1,779		)	(1,510		)
Net	$	5,340		$	5,357		$	5,448		$	5,434		$	5,301		$	5,353		$	5,421		$	16,145		$	16,075

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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Revenues
Premiums	$	2,786		$	2,781		$	2,823		$	2,790		$	2,757		$	2,770		$	2,768		$	8,390		$	8,295
Net investment income	573			540			494			310			355			451			529			1,607			1,335
Fee income	105			90			120			75			73			89			72			315			234
Other revenues	6			7			8			9			6			12			14			21			32
Total revenues	3,470			3,418			3,445			3,184			3,191			3,322			3,383			10,333			9,896
Claims and expenses
Claims and claim adjustment expenses	1,558			1,556			1,952			1,542			1,618			1,644			1,508			5,066			4,770
Amortization of deferred acquisition costs	451			451			466			450			449			450			448			1,368			1,347
General and administrative expenses (1)	516			516			565			482			467			493			517			1,597			1,477
Interest expense	—			—			—			1			—			—			—			—			—
Total claims and expenses	2,525			2,523			2,983			2,475			2,534			2,587			2,473			8,031			7,594
Operating income before federal income taxes	945			895			462			709			657			735			910			2,302			2,302
Income taxes	262			237			84			90			110			175			242			583			527
Operating income	$	683		$	658		$	378		$	619		$	547		$	560		$	668		$	1,719		$	1,775
Other statistics
Effective tax rate on net investment income	19.7		%	19.2		%	17.4		%	6.3		%	10.8		%	15.9		%	18.8		%	18.8		%	15.7		%
Net investment income (after-tax)	$	460		$	436		$	409		$	291		$	317		$	379		$	429		$	1,305		$	1,125
Catastrophes, net of reinsurance (2):
Pre-tax	$	57		$	185		$	488		$	(24	)	$	12		$	59		$	86		$	730		$	157
After-tax	$	37		$	120		$	318		$	(16	)	$	8		$	38		$	56		$	475		$	102

(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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
Underwriting gain (loss)		$	219		$	217		$	(35	)	$	325		$	226		$	172		$	228		$	401		$	626
Net investment income		460			436			409			291			317			379			429			1,305			1,125
Other		4			5			4			3			4			9			11			13			24
Operating income		$	683		$	658		$	378		$	619		$	547		$	560		$	668		$	1,719		$	1,775
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio		54.2		%	54.7		%	67.1		%	54.6		%	57.8		%	57.6		%	53.5		%	58.7		%	56.3		%
Underwriting expense ratio (3)		32.4		%	32.4		%	34.2		%	31.1		%	31.2		%	32.2		%	33.0		%	33.0		%	32.1		%
Combined ratio		86.6		%	87.1		%	101.3		%	85.7		%	89.0		%	89.8		%	86.5		%	91.7		%	88.4		%
Impact of catastrophes on combined ratio (4)		2.1		%	6.6		%	17.3		%	-0.8		%	0.4		%	2.1		%	3.1		%	8.7		%	1.9		%
Impact of prior year reserve development on combined ratio		-11.2		%	-12.8		%	-8.7		%	-7.3		%	-6.6		%	-7.8		%	-9.5		%	-10.9		%	-8.0		%
(1)  Before policyholder dividends.
(2)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses as follows:
																							YTD			YTD
		1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
	Billing and policy fees	$	3		$	4		$	3		$	4		$	4		$	4		$	4		$	10		$	12
	Fee income:
	Loss and loss adjustment expenses	$	43		$	30		$	58		$	13		$	20		$	42		$	24		$	131		$	86
	Underwriting expenses	62			60			62			62			53			47			48			184			148
	Total fee income	$	105		$	90		$	120		$	75		$	73		$	89		$	72		$	315		$	234

(3)  The impact of changes in prior year estimates of hurricane-related assessments, which is not included in the impact of catastrophes or prior year reserve development on the combined ratio, is (0.9), (0.4), and (0.5) points for 1Q 2009, 2Q 2009, and YTD 3Q 2009, 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		3Q		3Q		3Q
	2008		2008		2008		2008		2009		2009		2009		2008		2009
Statutory underwriting
Gross written premiums	$	3,308	$	3,087	$	3,215	$	2,970	$	3,294	$	3,046	$	3,029	$	9,610	$	9,369
Net written premiums	$	2,911	$	2,805	$	2,748	$	2,756	$	2,963	$	2,813	$	2,611	$	8,464	$	8,387
Net earned premiums	$	2,786	$	2,781	$	2,823	$	2,790	$	2,757	$	2,770	$	2,768	$	8,390	$	8,295
Losses and loss adjustment expenses	1,517		1,576		1,868		1,509		1,592		1,603		1,479		4,961		4,674
Underwriting expenses	903		897		922		842		903		877		892		2,722		2,672
Statutory underwriting gain	366		308		33		439		262		290		397		707		949
Policyholder dividends	4		6		2		6		4		4		4		12		12
Statutory underwriting gain after policyholder dividends	$	362	$	302	$	31	$	433	$	258	$	286	$	393	$	695	$	937

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		3Q		3Q		3Q
	2008		2008		2008		2008		2009			2009		2009		2008		2009
Net written premiums by market
Select Accounts	$	708	$	724	$	662	$	662	$	731		$	732	$	655	$	2,094	$	2,118
Commercial Accounts	673		550		635		666		710			564		609		1,858		1,883
National Accounts	246		241		240		269		259			227		197		727		683
Industry-Focused Underwriting	613		584		613		586		617			581		564		1,810		1,762
Target Risk Underwriting	423		445		366		359		422			458		360		1,234		1,240
Specialized Distribution	244		259		228		208		222			247		221		731		690
Total core	2,907		2,803		2,744		2,750		2,961			2,809		2,606		8,454		8,376
Business Insurance other	4		2		4		6		2			4		5		10		11
Total	$	2,911	$	2,805	$	2,748	$	2,756	$	2,963		$	2,813	$	2,611	$	8,464	$	8,387
Net written premiums by product line
Commercial multi-peril	$	791	$	726	$	693	$	728	$	789		$	730	$	682	$	2,210	$	2,201
Workers’ compensation	674		566		598		614		748			593		587		1,838		1,928
Commercial automobile	500		476		511		465		485			497		498		1,487		1,480
Property	482		515		433		430		463			507		401		1,430		1,371
General liability	462		520		510		519		479			486		443		1,492		1,408
Other	2		2		3		—		(1		)	—		—		7		(1		)
Total	$	2,911	$	2,805	$	2,748	$	2,756	$	2,963		$	2,813	$	2,611	$	8,464	$	8,387
National accounts
Additions to claim volume under administration (1)	$	712	$	522	$	482	$	566	$	594		$	452	$	403	$	1,716	$	1,449
Written fees	$	103	$	80	$	85	$	77	$	85		$	70	$	65	$	268	$	220

(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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Revenues
Premiums	$	847		$	852		$	863		$	867		$	801		$	810		$	861		$	2,562		$	2,472
Net investment income	122			120			114			98			104			107			118			356			329
Other revenues	5			8			5			6			6			7			7			18			20
Total revenues	974			980			982			971			911			924			986			2,936			2,821
Claims and expenses
Claims and claim adjustment expenses	390			376			545			458			442			442			463			1,311			1,347
Amortization of deferred acquisition costs	159			163			166			164			146			151			162			488			459
General and administrative expenses (1)	144			149			149			139			138			146			141			442			425
Interest expense	—			1			1			—			—			—			—			2			—
Total claims and expenses	693			689			861			761			726			739			766			2,243			2,231
Operating income before federal income taxes	281			291			121			210			185			185			220			693			590
Income taxes	73			87			38			56			37			52			53			198			142
Operating income	$	208		$	204		$	83		$	154		$	148		$	133		$	167		$	495		$	448
Other statistics
Effective tax rate on net investment income	23.5		%	23.5		%	22.0		%	20.6		%	19.4		%	20.9		%	21.7		%	23.0		%	20.7		%
Net investment income (after-tax)	$	93		$	92		$	89		$	78		$	84		$	84		$	93		$	274		$	261
Catastrophes, net of reinsurance (2):
Pre-tax	$	—		$	6		$	91		$	(13	)	$	—		$	2		$	4		$	97		$	6
After-tax	$	—		$	4		$	64		$	(10	)	$	—		$	1		$	3		$	68		$	4

(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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Underwriting gain (loss)	$	112		$	107		$	(8	)	$	72		$	60		$	44		$	69		$	211		$	173
Net investment income	93			92			89			78			84			84			93			274			261
Other	3			5			2			4			4			5			5			10			14
Operating income	$	208		$	204		$	83		$	154		$	148		$	133		$	167		$	495		$	448
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	45.7		%	43.7		%	62.9		%	52.3		%	54.7		%	54.4		%	53.3		%	50.9		%	54.1		%
Underwriting expense ratio (2)	35.7		%	36.7		%	36.5		%	34.9		%	35.5		%	36.5		%	35.4		%	36.3		%	35.8		%
Combined ratio	81.4		%	80.4		%	99.4		%	87.2		%	90.2		%	90.9		%	88.7		%	87.2		%	89.9		%
Impact of catastrophes on combined ratio (3)	0.0		%	0.6		%	10.5		%	-1.6		%	0.0		%	0.2		%	0.5		%	3.8		%	0.2		%
Impact of prior year reserve development on combined ratio	-7.4		%	-15.5		%	-4.9		%	-4.2		%	-1.4		%	-1.4		%	-2.9		%	-9.2		%	-1.9		%

(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 or prior year reserve development on the combined ratio, is (0.1) and (0.0) points for 1Q 2009 and YTD 3Q 2009, 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		3Q		3Q		3Q
	2008		2008		2008		2008		2009		2009		2009		2008		2009
Statutory underwriting
Gross written premiums	$	946	$	1,065	$	965	$	990	$	842	$	975	$	918	$	2,976	$	2,735
Net written premiums	$	644	$	985	$	901	$	938	$	563	$	914	$	870	$	2,530	$	2,347
Net earned premiums	$	847	$	852	$	863	$	867	$	801	$	810	$	861	$	2,562	$	2,472
Losses and loss adjustment expenses	387		383		539		456		437		448		459		1,309		1,344
Underwriting expenses	311		317		299		286		286		298		288		927		872
Statutory underwriting gain	149		152		25		125		78		64		114		326		256
Policyholder dividends	3		3		2		5		4		2		3		8		9
Statutory underwriting gain after policyholder dividends	$	146	$	149	$	23	$	120	$	74	$	62	$	111	$	318	$	247

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		3Q		3Q		3Q
	2008		2008		2008		2008		2009		2009		2009		2008		2009
Net written premiums by market
Bond & Financial Products	$	355	$	592	$	609	$	570	$	334	$	558	$	574	$	1,556	$	1,466
International	289		393		292		368		229		356		296		974		881
Total	$	644	$	985	$	901	$	938	$	563	$	914	$	870	$	2,530	$	2,347
Net written premiums by product line
General liability	$	101	$	259	$	271	$	290	$	129	$	256	$	252	$	631	$	637
Fidelity & surety	216		299		307		248		170		265		291		822		726
International	289		393		292		368		229		356		296		974		881
Other	38		34		31		32		35		37		31		103		103
Total	$	644	$	985	$	901	$	938	$	563	$	914	$	870	$	2,530	$	2,347

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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Revenues
Premiums	$	1,707		$	1,724		$	1,762		$	1,777		$	1,743		$	1,773		$	1,792		$	5,193		$	5,308
Net investment income	120			118			108			75			83			100			116			346			299
Other revenues	21			19			18			17			21			21			20			58			62
Total revenues	1,848			1,861			1,888			1,869			1,847			1,894			1,928			5,597			5,669
Claims and expenses
Claims and claim adjustment expenses	1,073			1,160			1,374			1,009			1,130			1,249			1,152			3,607			3,531
Amortization of deferred acquisition costs	344			347			358			361			349			352			357			1,049			1,058
General and administrative expenses (1)	181			193			281			174			170			187			220			655			577
Total claims and expenses	1,598			1,700			2,013			1,544			1,649			1,788			1,729			5,311			5,166
Operating income (loss) before federal income taxes	250			161			(125		)	325			198			106			199			286			503
Income taxes	69			39			(61		)	99			44			18			50			47			112
Operating income (loss)	$	181		$	122		$	(64	)	$	226		$	154		$	88		$	149		$	239		$	391
Other statistics
Effective tax rate on net investment income	19.1		%	18.9		%	17.2		%	8.2		%	12.0		%	16.1		%	18.7		%	18.4		%	16.0		%
Net investment income (after-tax)	$	97		$	96		$	89		$	69		$	73		$	84		$	94		$	282		$	251
Catastrophes, net of reinsurance (2):
Pre-tax	$	38		$	165		$	463		$	(48	)	$	71		$	139		$	68		$	666		$	278
After-tax	$	25		$	107		$	300		$	(30	)	$	46		$	91		$	44		$	432		$	181

(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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
Underwriting gain (loss)		$	70		$	14		$	(165	)	$	148		$	67		$	(10	)	$	41		$	(81	)	$	98
Net investment income		97			96			89			69			73			84			94			282			251
Other		14			12			12			9			14			14			14			38			42
Operating income (loss)		$	181		$	122		$	(64	)	$	226		$	154		$	88		$	149		$	239		$	391
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio		62.9		%	67.3		%	77.9		%	56.8		%	64.9		%	70.5		%	64.3		%	69.4		%	66.5		%
Underwriting expense ratio (2)		29.3		%	30.0		%	35.0		%	28.8		%	28.4		%	29.1		%	30.9		%	31.5		%	29.5		%
Combined ratio		92.2		%	97.3		%	112.9		%	85.6		%	93.3		%	99.6		%	95.2		%	100.9		%	96.0		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative		92.0		%	96.7		%	112.3		%	84.9		%	91.7		%	97.7		%	93.3		%	100.5		%	94.3		%
Impact of catastrophes on combined ratio (3)		2.2		%	9.6		%	26.2		%	-2.7		%	4.1		%	7.9		%	3.8		%	12.8		%	5.2		%
Impact of prior year reserve development on combined ratio		-1.5		%	-2.2		%	-2.5		%	-2.1		%	-3.7		%	-1.9		%	-1.3		%	-2.1		%	-2.2		%
(1)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  Billing and policy fees are as follows:
																							YTD			YTD
		1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
	Billing and policy fees	$	24		$	22		$	24		$	22		$	23		$	23		$	22		$	70		$	68

(2)  The impact of changes in prior year estimates of hurricane-related assessments, which is not included in the impact of catastrophes or prior year reserve development on the combined ratio, is (2.0), (0.8), and (0.9) points for 1Q 2009, 2Q 2009, and YTD 3Q 2009 , 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			3Q		3Q			3Q
	2008		2008		2008			2008		2009		2009			2009		2008			2009
Statutory underwriting
Gross written premiums	$	1,679	$	1,909	$	1,954		$	1,749	$	1,727	$	1,948		$	1,988	$	5,542		$	5,663
Net written premiums	$	1,633	$	1,839	$	1,832		$	1,691	$	1,677	$	1,878		$	1,859	$	5,304		$	5,414
Net earned premiums	$	1,707	$	1,724	$	1,762		$	1,777	$	1,743	$	1,773		$	1,792	$	5,193		$	5,308
Losses and loss adjustment expenses	1,074		1,159		1,374			1,009		1,130		1,249			1,152		3,607			3,531
Underwriting expenses	492		552		590			515		521		549			590		1,634			1,660
Statutory underwriting gain (loss)	$	141	$	13	$	(202	)	$	253	$	92	$	(25	)	$	50	$	(48	)	$	117
Policies in force (in thousands)
Automobile	2,495		2,526		2,538			2,526		2,509		2,491			2,482		2,538			2,482
Homeowners and other	4,702		4,755		4,808			4,831		4,861		4,901			4,944		4,808			4,944

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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
Statutory underwriting
Gross written premiums		$	930		$	939		$	934		$	877		$	924		$	919		$	905		$	2,803		$	2,748
Net written premiums		$	922		$	933		$	926		$	870		$	917		$	914		$	898		$	2,781		$	2,729
Net earned premiums		$	911		$	919		$	936		$	939		$	913		$	917		$	915		$	2,766		$	2,745
Losses and loss adjustment expenses		649			637			655			672			668			639			643			1,941			1,950
Underwriting expenses		259			263			260			247			254			249			247			782			750
Statutory underwriting gain (loss)		$	3		$	19		$	21		$	20		$	(9	)	$	29		$	25		$	43		$	45
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio		71.3		%	69.3		%	69.9		%	71.6		%	73.2		%	69.7		%	70.2		%	70.2		%	71.0		%
Underwriting expense ratio		27.4		%	27.8		%	27.5		%	27.5		%	27.0		%	26.7		%	27.1		%	27.5		%	26.9		%
Combined ratio		98.7		%	97.1		%	97.4		%	99.1		%	100.2		%	96.4		%	97.3		%	97.7		%	97.9		%
Impact of catastrophes on combined ratio		0.0		%	1.5		%	0.7		%	0.0		%	0.9		%	1.0		%	0.8		%	0.7		%	0.9		%
Catastrophe losses, net of reinsurance:
Pre-tax		$	—		$	14		$	6		$	—		$	8		$	9		$	7		$	20		$	24
After-tax		$	—		$	9		$	4		$	—		$	5		$	6		$	5		$	13		$	16
Policies in force (in thousands)		2,495			2,522			2,528			2,512			2,489			2,466			2,451
Change from prior year quarter		1.6		%	2.4		%	2.4		%	1.3		%	-0.2		%	-2.3		%	-3.0		%
Change from prior quarter		0.6		%	1.1		%	0.2		%	-0.6		%	-0.9		%	-0.9		%	-0.6		%
(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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
	Billing and policy fees	$	14		$	13		$	14		$	13		$	13		$	14		$	12		$	41		$	39

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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
Statutory underwriting
Gross written premiums		$	749		$	970		$	1,015		$	865		$	792		$	1,018		$	1,067		$	2,734		$	2,877
Net written premiums		$	711		$	906		$	902		$	814		$	749		$	952		$	946		$	2,519		$	2,647
Net earned premiums		$	796		$	805		$	825		$	835		$	824		$	846		$	865		$	2,426		$	2,535
Losses and loss adjustment expenses		425			522			719			335			458			599			499			1,666			1,556
Underwriting expenses		229			279			317			255			239			268			306			825			813
Statutory underwriting gain (loss)		$	142		$	4		$	(211	)	$	245		$	127		$	(21	)	$	60		$	(65	)	$	166
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio		53.3		%	64.9		%	87.1		%	40.2		%	55.6		%	70.8		%	57.7		%	68.7		%	61.4		%
Underwriting expense ratio		31.2		%	31.4		%	42.1		%	28.8		%	26.8		%	28.4		%	31.3		%	34.9		%	28.9		%
Combined ratio		84.5		%	96.3		%	129.2		%	69.0		%	82.4		%	99.2		%	89.0		%	103.6		%	90.3		%
Impact of catastrophes on combined ratio		4.8		%	18.8		%	55.3		%	-5.6		%	7.6		%	15.3		%	7.0		%	26.6		%	10.0		%
Catastrophe losses, net of reinsurance:
Pre-tax		$	38		$	151		$	457		$	(48	)	$	63		$	130		$	61		$	646		$	254
After-tax		$	25		$	98		$	296		$	(30	)	$	41		$	85		$	39		$	419		$	165
Policies in force (in thousands)		4,702			4,753			4,804			4,824			4,850			4,886			4,923
Change from prior year quarter		2.7		%	2.6		%	3.0		%	3.0		%	3.1		%	2.8		%	2.5		%
Change from prior quarter		0.4		%	1.1		%	1.1		%	0.4		%	0.5		%	0.7		%	0.8		%
(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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
	Billing and policy fees	$	10		$	9		$	10		$	9		$	10		$	9		$	10		$	29		$	29

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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Revenues
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	2			—			—			—			—			9			1			2			10
Total revenues	2			—			—			—			—			9			1			2			10
Claims and expenses
Interest expense	90			90			94			93			92			94			98			274			284
General and administrative expenses	12			6			6			5			7			13			11			24			31
Total claims and expenses	102			96			100			98			99			107			109			298			315
Operating loss before federal income tax benefit	(100		)	(96		)	(100		)	(98		)	(99		)	(98		)	(108		)	(296		)	(305		)
Income taxes	(36		)	(30		)	(33		)	(38		)	(49		)	(49		)	(38		)	(99		)	(136		)
Operating loss	$	(64	)	$	(66	)	$	(67	)	$	(60	)	$	(50	)	$	(49	)	$	(70	)	$	(197	)	$	(169	)

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

21

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

	September  30,		December 31,
	2009 (1)		2008
Assets
Fixed maturities, available for sale at fair value (including $81 and $8 subject to securities lending) (amortized cost $62,208 and $61,569)	$	65,350	$	61,275
Equity securities, at fair value (cost $387 and $461)	435		379
Real estate	872		827
Short-term securities	6,567		5,222
Other investments	2,899		3,035
Total investments	76,123		70,738
Cash	286		350
Investment income accrued	794		823
Premiums receivable	5,957		5,954
Reinsurance recoverables	13,339		14,232
Ceded unearned premiums	1,076		941
Deferred acquisition costs	1,825		1,774
Deferred tax asset	603		1,965
Contractholder receivables	6,457		6,350
Goodwill	3,365		3,366
Other intangible assets	612		688
Other assets	2,180		2,570
Total assets	$	112,617	$	109,751

	September 30,			December 31,
	2009 (1)			2008
Liabilities
Claims and claim adjustment expense reserves	$	53,924		$	54,723
Unearned premium reserves	11,209			10,957
Contractholder payables	6,457			6,350
Payables for reinsurance premiums	687			528
Debt	6,528			6,181
Other liabilities	5,652			5,693
Total liabilities	84,457			84,432
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.2 and 0.3 shares issued and outstanding)	81			89
Common stock (1,750.0 shares authorized; 547.9 and 585.1 shares issued and outstanding)	19,433			19,242
Retained earnings	15,208			13,314
Accumulated other changes in equity from nonowner sources	1,657			(900		)
Treasury stock, at cost (169.1 and 128.8 shares)	(8,219		)	(6,426		)
Total shareholders’ equity	28,160			25,319
Total liabilities and shareholders’ equity	$	112,617		$	109,751

(1) Preliminary.

22

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

	September 30,		Pre-tax Book		December 31,			Pre-tax Book
	2009		Yield (1)		2008			Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	24,032	5.20	%	$	22,481		5.32	%
Tax-exempt fixed maturities	41,318		4.12	%	38,794			4.14	%
Total fixed maturities	65,350		4.53	%	61,275			4.59	%
Non-redeemable preferred stocks	241		6.53	%	219			6.35	%
Common stocks	194				160
Total equity securities	435				379
Real estate	872				827
Short-term securities	6,567		0.26	%	5,222			1.20	%
Private equities	1,484				1,505
Hedge funds	493				531
Real estate joint ventures & other	859				886
Mortgage loans	40		6.56	%	94			8.06	%
Trading securities	23				19
Total other investments	2,899				3,035
Total investments	$	76,123			$	70,738
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	2,236			$	(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)

	September 30,		December 31,
	2009		2008
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	1,650	$	1,841
Obligations of states and political subdivisions	41,732		39,062
Debt securities issued by foreign governments	1,876		1,519
Mortgage-backed securities - principally obligations of U.S. Government agencies	5,428		6,059
Corporates (including redeemable preferreds)	14,664		12,794
Total fixed maturities	$	65,350	$	61,275

Fixed Maturities

Quality Characteristics (1)

	September 30, 2009
	Amount		% of Total
Quality Ratings
Aaa	$	27,100	41.5	%
Aa	25,113		38.5
A	7,210		11.0
Baa	4,066		6.2
Total investment grade	63,489		97.2
Ba	926		1.4
B	580		0.9
Caa and lower	355		0.5
Total below investment grade	1,861		2.8
Total fixed maturities	$	65,350	100.0	%
Average weighted quality	Aa2, AA
Average duration of fixed maturities and short-term securities, net of securities lendingactivities and net receivables and payables on investment sales and purchases	3.7

(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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Gross investment income
Fixed maturities	$	736		$	726		$	727		$	726		$	713		$	691		$	703		$	2,189		$	2,107
Short-term securities	52			32			36			23			10			7			5			120			22
Other	39			32			(37		)	(256		)	(175		)	(33		)	63			34			(145		)
	827			790			726			493			548			665			771			2,343			1,984
Investment expenses	12			12			10			10			6			7			8			34			21
Net investment income, pre-tax	815			778			716			483			542			658			763			2,309			1,963
Income taxes	165			154			129			45			68			111			147			448			326
Net investment income, after-tax	$	650		$	624		$	587		$	438		$	474		$	547		$	616		$	1,861		$	1,637
Effective tax rate	20.2		%	19.8		%	18.1		%	9.5		%	12.6		%	16.7		%	19.2		%	19.4		%	16.6		%
Average invested assets (1)	$	74,733		$	74,156		$	74,256		$	73,588		$	72,720		$	72,589		$	73,515		$	74,426		$	72,991
Average yield pre-tax (1)	4.4		%	4.2		%	3.9		%	2.6		%	3.0		%	3.6		%	4.2		%	4.1		%	3.6		%
Average yield after-tax	3.5		%	3.4		%	3.2		%	2.4		%	2.6		%	3.0		%	3.4		%	3.3		%	3.0		%

(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			3Q			3Q			3Q
		2008			2008			2008			2008			2009			2009			2009			2008			2009
Net realized investment gains (losses)
Fixed maturities		$	(32	)	$	6		$	(153	)	$	(192	)	$	(100	)	$	(2	)	$	19		$	(179	)	$	(83	)
Equity securities		(1		)	(14		)	(28		)	(29		)	(74		)	1			2			(43		)	(71		)
Other (1)		(29		)	44			11			2			(40		)	14			8			26			(18		)
Realized investment gains (losses) before tax		(62		)	36			(170		)	(219		)	(214		)	13			29			(196		)	(172		)
Related taxes		(21		)	12			(54		)	(81		)	(77		)	5			8			(63		)	(64		)
Net realized investment gains (losses)		$	(41	)	$	24		$	(116	)	$	(138	)	$	(137	)	$	8		$	21		$	(133	)	$	(108	)
Gross investment gains (1)		$	89		$	138		$	91		$	160		$	105		$	116		$	132		$	318		$	353
Gross investment losses before impairments (1)		(113		)	(74		)	(105		)	(181		)	(135		)	(73		)	(84		)	(292		)	(292		)
Net investment gains (losses) before impairments		(24		)	64			(14		)	(21		)	(30		)	43			48			26			61
Other-than-temporary impairment losses:
Total losses		(38		)	(28		)	(156		)	(198		)	(184		)	(75		)	(43		)	(222		)	(302		)
Portion of losses recognized in accumulated other changes in equity from nonowner sources		—			—			—			—			—			45			24			—			69
Other-than-temporary impairment losses		(38		)	(28		)	(156		)	(198		)	(184		)	(30		)	(19		)	(222		)	(233		)
Net realized investment gains (losses) before tax		(62		)	36			(170		)	(219		)	(214		)	13			29			(196		)	(172		)
Related taxes		(21		)	12			(54		)	(81		)	(77		)	5			8			(63		)	(64		)
Net realized investment gains (losses)		$	(41	)	$	24		$	(116	)	$	(138	)	$	(137	)	$	8		$	21		$	(133	)	$	(108	)
		March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,
		2008			2008			2008			2008			2009			2009			2009
Net unrealized investment gains (losses), net of tax, by asset type
Fixed maturities		$	695		$	(73	)	$	(1,406	)	$	(294	)	$	732		$	1,139		$	3,142
Equity securities & other		168			159			115			41			71			157			262
Unrealized investment gains (losses) before tax		863			86			(1,291		)	(253		)	803			1,296			3,404
Related taxes		287			23			(473		)	(109		)	260			431			1,168
Balance, end of period		$	576		$	63		$	(818	)	$	(144	)	$	543		$	865		$	2,236
(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		$	39		$	139		$	186
	Gross investment Treasury future losses	$	56		$	39		$	52		$	96		$	76		$	46		$	50		$	147		$	172
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)

	September 30,			December 31,
	2009			2008
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	8,682		$	9,376
Allowance for uncollectible reinsurance	(590		)	(618		)
Net reinsurance recoverables	8,092			8,758
Mandatory pools and associations	1,771			1,957
Structured settlements	3,476			3,517
Total reinsurance recoverables	$	13,339		$	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	September 30,		December 31,
Reinsurer	Predominant Reinsurer	2009		2008
Swiss Re Group	A third highest of 16 ratings	$	918	$	1,009
Munich Re Group	A+ second highest of 16 ratings	807		831
Transatlantic Holdings, Inc.	A third highest of 16 ratings	508		495
XL Capital Group	A third highest of 16 ratings	429		465
Berkshire Hathaway Group	A++ highest of 16 ratings	400		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 September 30, 2009, after deducting mandatory pool and structured settlement balances, $6.4 billion, or 79%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 98% were rated A- or better.  The remaining 21% 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 5% were balances from other companies not rated by A.M. Best Company.  In addition, $2.3 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at September 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	September 30,		December 31,
Group	Predominant Insurer	2009		2008
Old Mutual	A- fourth highest of 16 ratings	$	1,057	$	1,075
Metlife	A+ second highest of 16 ratings	536		554
Genworth	A third highest of 16 ratings	475		485
Symetra	A third highest of 16 ratings	290		296
ING Group	A third highest of 16 ratings	236		242

27

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Business Insurance
Beginning of period	$	34,021		$	33,718		$	33,649		$	33,310		$	32,270		$	32,043		$	31,986		$	34,021		$	32,270
Incurred	1,517			1,576			1,868			1,509			1,592			1,603			1,479			4,961			4,674
Paid	(1,736		)	(1,696		)	(2,148		)	(1,683		)	(1,816		)	(1,688		)	(1,726		)	(5,580		)	(5,230		)
Acquired (sold) reserves, foreign exchange and other (1)	(84		)	51			(59		)	(866		)	(3		)	28			11			(92		)	36
End of period	$	33,718		$	33,649		$	33,310		$	32,270		$	32,043		$	31,986		$	31,750		$	33,310		$	31,750
Financial, Professional & International Insurance
Beginning of period	$	5,520		$	5,590		$	5,650		$	5,703		$	5,397		$	5,503		$	5,821		$	5,520		$	5,397
Incurred	387			383			539			456			437			448			459			1,309			1,344
Paid	(324		)	(294		)	(324		)	(468		)	(309		)	(338		)	(354		)	(942		)	(1,001		)
Acquired (sold) reserves, foreign exchange and other	7			(29		)	(162		)	(294		)	(22		)	208			44			(184		)	230
End of period	$	5,590		$	5,650		$	5,703		$	5,397		$	5,503		$	5,821		$	5,970		$	5,703		$	5,970
Personal Insurance
Beginning of period	$	3,527		$	3,532		$	3,586		$	3,835		$	3,640		$	3,610		$	3,688		$	3,527		$	3,640
Incurred	1,074			1,159			1,374			1,009			1,130			1,249			1,152			3,607			3,531
Paid	(1,069		)	(1,105		)	(1,125		)	(1,204		)	(1,160		)	(1,171		)	(1,203		)	(3,299		)	(3,534		)
End of period	$	3,532		$	3,586		$	3,835		$	3,640		$	3,610		$	3,688		$	3,637		$	3,835		$	3,637
Total
Beginning of period	$	43,068		$	42,840		$	42,885		$	42,848		$	41,307		$	41,156		$	41,495		$	43,068		$	41,307
Incurred	2,978			3,118			3,781			2,974			3,159			3,300			3,090			9,877			9,549
Paid	(3,129		)	(3,095		)	(3,597		)	(3,355		)	(3,285		)	(3,197		)	(3,283		)	(9,821		)	(9,765		)
Acquired (sold) reserves, foreign exchange and other (1)	(77		)	22			(221		)	(1,160		)	(25		)	236			55			(276		)	266
End of period	$	42,840		$	42,885		$	42,848		$	41,307		$	41,156		$	41,495		$	41,357		$	42,848		$	41,357
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	70		$	—		$	—		$	—		$	185		$	70		$	185
Environmental	—			85			—			—			—			70			—			85			70
All other	(312		)	(442		)	(317		)	(205		)	(182		)	(286		)	(447		)	(1,071		)	(915		)
Prior year development excluding accretion of discount	(312		)	(357		)	(247		)	(205		)	(182		)	(216		)	(262		)	(916		)	(660		)
Accretion of discount	15			16			15			14			14			14			14			46			42
Total Business Insurance	(297		)	(341		)	(232		)	(191		)	(168		)	(202		)	(248		)	(870		)	(618		)
Financial, Professional & International Insurance	(63		)	(132		)	(43		)	(36		)	(12		)	(11		)	(25		)	(238		)	(48		)
Personal Insurance	(25		)	(37		)	(44		)	(37		)	(64		)	(34		)	(22		)	(106		)	(120		)
Total	$	(385	)	$	(510	)	$	(319	)	$	(264	)	$	(244	)	$	(247	)	$	(295	)	$	(1,214	)	$	(786	)

(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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Asbestos reserves
Beginning reserves:
Direct	$	4,353		$	4,272		$	4,184		$	3,728		$	3,299		$	3,216		$	3,136		$	4,353		$	3,299
Ceded	(619		)	(600		)	(588		)	(501		)	(385		)	(363		)	(345		)	(619		)	(385		)
Net	3,734			3,672			3,596			3,227			2,914			2,853			2,791			3,734			2,914
Incurred losses and loss expenses:
Direct	—			—			70			—			—			—			185			70			185
Ceded	—			—			—			—			—			—			—			—			—
Losses paid:
Direct (1)	81			88			526			99			83			80			70			695			233
Ceded	(19		)	(12		)	(87		)	(18		)	(22		)	(18		)	(9		)	(118		)	(49		)
Sale of subsidiary: (2)
Direct	—			—			—			330			—			—			—			—			—
Ceded	—			—			—			(98		)	—			—			—			—			—
Ending reserves:
Direct	4,272			4,184			3,728			3,299			3,216			3,136			3,251			3,728			3,251
Ceded	(600		)	(588		)	(501		)	(385		)	(363		)	(345		)	(336		)	(501		)	(336		)
Net	$	3,672		$	3,596		$	3,227		$	2,914		$	2,853		$	2,791		$	2,915		$	3,227		$	2,915
Environmental reserves
Beginning reserves:
Direct	$	478		$	450		$	499		$	472		$	400		$	378		$	425		$	478		$	400
Ceded	12			12			12			13			14			14			3			12			14
Net	490			462			511			485			414			392			428			490			414
Incurred losses and loss expenses:
Direct	—			85			—			—			—			85			—			85			85
Ceded	—			—			—			—			—			(15		)	—			—			(15		)
Losses paid:
Direct	28			36			27			32			22			38			14			91			74
Ceded	—			—			(1		)	6			—			(4		)	—			(1		)	(4		)
Sale of subsidiary: (2)
Direct	—			—			—			40			—			—			—			—			—
Ceded	—			—			—			(7		)	—			—			—			—			—
Ending reserves:
Direct	450			499			472			400			378			425			411			472			411
Ceded	12			12			13			14			14			3			3			13			3
Net	$	462		$	511		$	485		$	414		$	392		$	428		$	414		$	485		$	414

(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)

	September 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 notes due September 16, 2010 and 2009	2			2
8.125% Senior notes due April 15, 2010 (1)	250			—
7.415% Medium-term notes due August 23, 2010	21			—
Total short-term debt	373			242
Long-term debt
8.125% Senior notes due April 15, 2010 (1)	—			250
7.415% Medium-term notes due August 23, 2010	—			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	2			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	6,165			5,938
Unamortized fair value adjustment	60			68
Unamortized debt issuance costs	(70		)	(67		)
	6,155			5,939
Total debt	6,528			6,181
Preferred equity	81			89
Common equity (excluding net unrealized investment gains (losses), net of tax)	25,843			25,374
Total capital (excluding net unrealized investment gains (losses), net of tax)	$	32,452		$	31,644
Total debt to capital (excluding net unrealized investment gains (losses), net of tax)	20.1		%	19.5		%

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

30

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

	September 30,			December 31,
	2009 (1)			2008
Statutory capital and surplus	$	22,050		$	21,491
GAAP adjustments
Goodwill and intangible assets	3,773			3,841
Investments	3,789			342
Noninsurance companies	(3,724		)	(3,924		)
Deferred acquisition costs	1,825			1,774
Deferred federal income tax	(596		)	699
Current federal income tax	(91		)	(86		)
Reinsurance recoverables	295			295
Furniture, equipment & software	633			526
Employee benefits	(2		)	40
Agents balances	117			122
Other	91			199
Total GAAP adjustments	6,110			3,828
GAAP shareholders’ equity	$	28,160		$	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			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Cash flows from operating activities
Net income	$	967		$	942		$	214		$	801		$	662		$	740		$	935		$	2,123		$	2,337
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	62			(36		)	170			219			214			(13		)	(29		)	196			172
Depreciation and amortization	213			201			213			194			206			209			187			627			602
Deferred federal income tax expense (benefit)	(8		)	34			23			(107		)	22			(53		)	77			49			46
Amortization of deferred acquisition costs	954			961			990			975			944			953			967			2,905			2,864
Equity in (income) loss from other investments	(17		)	(16		)	67			278			194			58			(41		)	34			211
Premiums receivable	(28		)	(177		)	158			213			(78		)	(188		)	263			(47		)	(3		)
Reinsurance recoverables	272			10			251			676			167			371			355			533			893
Deferred acquisition costs	(968		)	(991		)	(991		)	(895		)	(948		)	(997		)	(970		)	(2,950		)	(2,915		)
Claims and claim adjustment expense reserves	(386		)	(38		)	(249		)	(1,360		)	(373		)	22			(448		)	(673		)	(799		)
Unearned premium reserves	15			97			38			(420		)	64			163			25			150			252
Other	(149		)	(283		)	58			(9		)	(261		)	(289		)	94			(374		)	(456		)
Net cash provided by operating activities	927			704			942			565			813			976			1,415			2,573			3,204
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,604			1,084			982			1,199			1,210			1,179			1,380			3,670			3,769
Proceeds from sales of investments:
Fixed maturities	1,044			1,405			1,139			3,344			630			1,234			342			3,588			2,206
Equity securities	12			24			11			6			16			15			6			47			37
Real estate	—			25			—			—			—			—			—			25			—
Other investments	246			178			123			108			92			48			77			547			217
Purchases of investments:
Fixed maturities	(2,350		)	(2,063		)	(2,222		)	(4,492		)	(2,265		)	(2,006		)	(2,079		)	(6,635		)	(6,350		)
Equity securities	(21		)	(25		)	(43		)	(6		)	(12		)	(6		)	(4		)	(89		)	(22		)
Real estate	(9		)	(16		)	(6		)	(7		)	(5		)	(4		)	(3		)	(31		)	(12		)
Other investments	(123		)	(162		)	(242		)	(140		)	(112		)	(74		)	(76		)	(527		)	(262		)
Net (purchases) sales of short-term securities	320			(667		)	407			(466		)	(451		)	(772		)	(122		)	60			(1,345		)
Securities transactions in course of settlement	43			31			(461		)	69			398			(32		)	222			(387		)	588
Other	(72		)	(91		)	(104		)	222			(84		)	(121		)	(66		)	(267		)	(271		)
Net cash provided by (used in) investing activities	694			(277		)	(416		)	(163		)	(583		)	(539		)	(323		)	1			(1,445		)

32

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2008			2008			2008			2008			2009			2009			2009			2008			2009
Cash flows from financing activities
Payment of debt	(400		)	—			(3		)	(149		)	(141		)	—			(2		)	(403		)	(143		)
Issuance of debt	—			496			—			—			—			494			—			496			494
Dividends paid to shareholders	(179		)	(180		)	(177		)	(179		)	(178		)	(172		)	(168		)	(536		)	(518		)
Issuance of common stock - employee share options	15			44			13			17			10			18			48			72			76
Treasury stock acquired - share repurchase authorization	(1,000		)	(765		)	(290		)	(112		)	—			(750		)	(970		)	(2,055		)	(1,720		)
Treasury stock acquired - net employee share-based compensation	(26		)	(2		)	—			(1		)	(27		)	(1		)	(1		)	(28		)	(29		)
Excess tax benefits from share-based payment arrangements	4			3			1			2			1			1			2			8			4
Net cash used in financing activities	(1,586		)	(404		)	(456		)	(422		)	(335		)	(410		)	(1,091		)	(2,446		)	(1,836		)
Effect of exchange rate changes on cash	2			(2		)	(12		)	(17		)	—			10			3			(12		)	13
Net increase (decrease) in cash	37			21			58			(37		)	(105		)	37			4			116			(64		)
Cash at beginning of period	271			308			329			387			350			245			282			271			350
Cash at end of period	$	308		$	329		$	387		$	350		$	245		$	282		$	286		$	387		$	286
Income taxes paid	$	78		$	637		$	117		$	9		$	34		$	329		$	210		$	832		$	573
Interest paid	$	72		$	112		$	64		$	127		$	63		$	122		$	63		$	248		$	248

33

The Travelers Companies, Inc.
Financial Supplement - Third 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 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 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 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, 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 the ratio of debt to the sum of shareholders’ equity and debt excluding the after-tax impact of net unrealized investment gains and losses.  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