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.

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