Exhibit 99.2

The Travelers Companies, Inc. Financial Supplement - Second Quarter 2010

	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	16
Operating Income by Major Component and Combined Ratio	17
Selected Statistics	18
Selected Statistics - Agency Automobile	19
Selected Statistics - Agency Homeowners and Other	20
Supplemental Detail
Interest Expense and Other	21
Consolidated Balance Sheet	22
Investment Portfolio	23
Investment Portfolio - Fixed Maturities Data	24
Investment Income	25
Net Realized and Unrealized Investment Gains (Losses)	26
Reinsurance Recoverables	27
Net Reserves for Losses and Loss Adjustment Expense	28
Asbestos and Environmental Reserves	29
Capitalization	30
Statutory to GAAP Shareholders’ Equity Reconciliation	31
Statement of Cash Flows	32
Statement of Cash Flows (continued)	33
Glossary of Financial Measures and Description of Reportable Business Segments	34

The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.

Index

The Travelers Companies, Inc. Financial Highlights ($ and shares in millions, except per share data)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,402		$	1,317
Net income per share:
Basic	$	1.12		$	1.27		$	1.66		$	2.39		$	1.26		$	1.37		$	2.40		$	2.63
Diluted	$	1.11		$	1.27		$	1.65		$	2.36		$	1.25		$	1.35		$	2.38		$	2.60
Operating income	$	799		$	732		$	914		$	1,155		$	631		$	690		$	1,531		$	1,321
Operating income per share:
Basic	$	1.36		$	1.26		$	1.62		$	2.15		$	1.23		$	1.41		$	2.62		$	2.64
Diluted	$	1.34		$	1.25		$	1.61		$	2.12		$	1.22		$	1.39		$	2.60		$	2.61
Return on equity	10.2		%	11.1		%	13.6		%	18.5		%	9.6		%	10.1		%	10.7		%	9.9		%
Operating return on equity	12.4		%	11.3		%	14.1		%	18.0		%	10.1		%	11.4		%	11.9		%	10.7		%
Total assets, at period end	$	110,313		$	111,135		$	112,407		$	109,560		$	108,696		$	107,023		$	111,135		$	107,023
Total equity, at period end	$	26,497		$	26,920		$	28,160		$	27,415		$	26,671		$	26,286		$	26,920		$	26,286
Book value per share, at period end	$	45.12		$	47.29		$	51.24		$	52.54		$	53.50		$	55.67		$	47.29		$	55.67
Less: Net unrealized investment gains, net of tax	0.93			1.53			4.08			3.58			3.90			5.05			1.53			5.05
Adjusted book value per share, at period end	$	44.19		$	45.76		$	47.16		$	48.96		$	49.60		$	50.62		$	45.76		$	50.62
Weighted average number of common shares outstanding (basic)	584.6			575.8			558.4			532.8			508.4			484.5			580.1			496.3
Weighted average number of common shares outstanding and common stock equivalents (diluted)	590.4			579.8			564.1			540.1			515.1			490.8			584.9			502.6
Common shares outstanding at period end	585.3			567.5			547.9			520.3			497.0			470.8			567.5			470.8
Common stock dividends declared	$	177		$	172		$	166		$	175		$	168		$	173		$	349		$	341
Common stock repurchased:
Under repurchase authorization (1)
Shares	—			18.5			20.8			30.1			27.0			28.0			18.5			55.0
Cost	$	—		$	750		$	1,000		$	1,550		$	1,400		$	1,400		$	750		$	2,800
Other
Shares	0.7			0.3			—			0.4			0.8			0.2			1.0			1.0
Cost	$	27		$	13		$	3		$	22		$	40		$	14		$	40		$	54

(1)  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 ($ and shares in millions, except earnings per share)

															YTD			YTD
	1Q			2Q		3Q		4Q		1Q		2Q			2Q			2Q
	2009			2009		2009		2009		2010		2010			2009			2010
Net income
Operating income	$	799		$	732	$	914	$	1,155	$	631	$	690		$	1,531		$	1,321
Net realized investment gains (losses)	(137		)	8		21		130		16		(20		)	(129		)	(4		)
Net income	$	662		$	740	$	935	$	1,285	$	647	$	670		$	1,402		$	1,317
Basic earnings per share
Operating income	$	1.36		$	1.26	$	1.62	$	2.15	$	1.23	$	1.41		$	2.62		$	2.64
Net realized investment gains (losses)	(0.24		)	0.01		0.04		0.24		0.03		(0.04		)	(0.22		)	(0.01		)
Net income	$	1.12		$	1.27	$	1.66	$	2.39	$	1.26	$	1.37		$	2.40		$	2.63
Diluted earnings per share
Operating income	$	1.34		$	1.25	$	1.61	$	2.12	$	1.22	$	1.39		$	2.60		$	2.61
Net realized investment gains (losses)	(0.23		)	0.02		0.04		0.24		0.03		(0.04		)	(0.22		)	(0.01		)
Net income	$	1.11		$	1.27	$	1.65	$	2.36	$	1.25	$	1.35		$	2.38		$	2.60

Adjustments to net income and weighted average shares for net income EPS calculations: (1)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Basic
Net income, as reported	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,402		$	1,317
Preferred stock dividends	(1		)	(1		)	(1		)	—			(1		)	—			(2		)	(1		)
Participating share-based awards - allocated income	(5		)	(5		)	(6		)	(10		)	(5		)	(5		)	(10		)	(10		)
Net income available to common shareholders - basic	$	656		$	734		$	928		$	1,275		$	641		$	665		$	1,390		$	1,306
Diluted
Net income available to common shareholders - basic	$	656		$	734		$	928		$	1,275		$	641		$	665		$	1,390		$	1,306
Effect of dilutive securities:
Convertible preferred stock	1			1			1			—			1			—			2			1
Performance shares	—			—			1			1			—			—			—			—
Zero coupon convertible notes	1			—			—			—			—			—			1			—
Net income available to common shareholders - diluted	$	658		$	735		$	930		$	1,276		$	642		$	665		$	1,393		$	1,307
Common Shares
Basic
Weighted average shares outstanding	584.6			575.8			558.4			532.8			508.4			484.5			580.1			496.3
Diluted
Weighted average shares outstanding	584.6			575.8			558.4			532.8			508.4			484.5			580.1			496.3
Weighted average effects of dilutive securities:
Convertible preferred stock	2.2			2.1			2.0			1.9			1.9			1.8			2.1			1.8
Stock options and performance shares	2.0			1.9			3.7			5.4			4.8			4.5			1.9			4.5
Zero coupon convertible notes	1.6			—			—			—			—			—			0.8			—
Diluted weighted average shares outstanding	590.4			579.8			564.1			540.1			515.1			490.8			584.9			502.6

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

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

2

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Revenues
Premiums	$	5,301		$	5,353		$	5,421		$	5,343		$	5,230		$	5,340		$	10,654		$	10,570
Net investment income	542			658			763			813			753			762			1,200			1,515
Fee income	73			89			72			72			79			76			162			155
Net realized investment gains (losses)	(214		)	13			29			189			25			(31		)	(201		)	(6		)
Other revenues	33			49			42			39			32			32			82			64
Total revenues	5,735			6,162			6,327			6,456			6,119			6,179			11,897			12,298
Claims and expenses
Claims and claim adjustment expenses	3,190			3,335			3,123			2,760			3,388			3,419			6,525			6,807
Amortization of deferred acquisition costs	944			953			967			949			929			950			1,897			1,879
General and administrative expenses (1)	782			839			889			856			847			832			1,621			1,679
Interest expense	92			94			98			98			98			97			186			195
Total claims and expenses	5,008			5,221			5,077			4,663			5,262			5,298			10,229			10,560
Income before income taxes	727			941			1,250			1,793			857			881			1,668			1,738
Income tax expense	65			201			315			508			210			211			266			421
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,402		$	1,317
Net realized investment gains (losses)
Other-than-temporary impairment losses:
Total losses	$	(184	)	$	(75	)	$	(43	)	$	(21	)	$	(1	)	$	2		$	(259	)	$	1
Portion of losses recognized in accumulated other changes in equity from nonowner sources	—			45			24			(4		)	(9		)	(6		)	45			(15		)
Other-than-temporary impairment losses	(184		)	(30		)	(19		)	(25		)	(10		)	(4		)	(214		)	(14		)
Other net realized investment gains (losses)	(30		)	43			48			214			35			(27		)	13			8
Net realized investment gains (losses)	$	(214	)	$	13		$	29		$	189		$	25		$	(31	)	$	(201	)	$	(6	)
Other statistics
Effective tax rate on net investment income	12.6		%	16.7		%	19.2		%	19.8		%	18.9		%	19.1		%	14.9		%	19.0		%
Net investment income (after-tax)	$	474		$	547		$	616		$	653		$	610		$	617		$	1,021		$	1,227
Catastrophes, net of reinsurance:
Pre-tax	$	83		$	200		$	158		$	16		$	471		$	439		$	283		$	910
After-tax	$	54		$	130		$	103		$	10		$	312		$	285		$	184		$	597

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

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

3

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Underwriting gain	$	353		$	206		$	338		$	540		$	80		$	119		$	559		$	199
Net investment income	474			547			616			653			610			617			1,021			1,227
Other, including interest expense	(28		)	(21		)	(40		)	(38		)	(59		)	(46		)	(49		)	(105		)
Operating income	799			732			914			1,155			631			690			1,531			1,321
Net realized investment gains (losses)	(137		)	8			21			130			16			(20		)	(129		)	(4		)
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,402		$	1,317
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	59.7		%	61.4		%	57.0		%	51.1		%	64.0		%	63.3		%	60.5		%	63.6		%
Underwriting expense ratio (3)	30.9		%	31.8		%	32.7		%	32.3		%	32.4		%	31.9		%	31.4		%	32.2		%
Combined ratio	90.6		%	93.2		%	89.7		%	83.4		%	96.4		%	95.2		%	91.9		%	95.8		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	90.1		%	92.6		%	89.1		%	82.9		%	95.8		%	94.6		%	91.3		%	95.2		%
Impact of catastrophes on combined ratio	1.6		%	3.7		%	2.9		%	0.3		%	9.0		%	8.2		%	2.7		%	8.6		%
Impact of prior year reserve development on combined ratio	-4.9		%	-4.9		%	-5.7		%	-9.4		%	-5.6		%	-7.2		%	-4.9		%	-6.4		%

(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		2Q		2Q
	2009		2009		2009		2009		2010		2010		2009		2010
Billing and policy fees	$	27	$	27	$	26	$	27	$	27	$	25	$	54	$	52
Fee income:
Loss and loss adjustment expenses	$	20	$	42	$	24	$	28	$	36	$	31	$	62	$	67
Underwriting expenses	53		47		48		44		43		45		100		88
Total fee income	$	73	$	89	$	72	$	72	$	79	$	76	$	162	$	155

(3)  The impact of reductions 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 (0.8) points for 1Q 2009, 2Q 2009, and YTD 2Q 2009, respectively.

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

4

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Revenues
Premiums	$	5,301		$	5,353		$	5,421		$	5,343		$	5,230		$	5,340		$	10,654		$	10,570
Net investment income	542			658			763			813			753			762			1,200			1,515
Fee income	73			89			72			72			79			76			162			155
Other revenues	33			49			42			39			32			32			82			64
Total revenues	5,949			6,149			6,298			6,267			6,094			6,210			12,098			12,304
Claims and expenses
Claims and claim adjustment expenses	3,190			3,335			3,123			2,760			3,388			3,419			6,525			6,807
Amortization of deferred acquisition costs	944			953			967			949			929			950			1,897			1,879
General and administrative expenses	782			839			889			856			847			832			1,621			1,679
Interest expense	92			94			98			98			98			97			186			195
Total claims and expenses	5,008			5,221			5,077			4,663			5,262			5,298			10,229			10,560
Operating income before income taxes	941			928			1,221			1,604			832			912			1,869			1,744
Income tax expense	142			196			307			449			201			222			338			423
Operating income	$	799		$	732		$	914		$	1,155		$	631		$	690		$	1,531		$	1,321
Other statistics
Effective tax rate on net investment income	12.6		%	16.7		%	19.2		%	19.8		%	18.9		%	19.1		%	14.9		%	19.0		%
Net investment income (after-tax)	$	474		$	547		$	616		$	653		$	610		$	617		$	1,021		$	1,227
Catastrophes, net of reinsurance:
Pre-tax	$	83		$	200		$	158		$	16		$	471		$	439		$	283		$	910
After-tax	$	54		$	130		$	103		$	10		$	312		$	285		$	184		$	597

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

5

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

																		YTD		YTD
	1Q			2Q		3Q			4Q			1Q			2Q			2Q		2Q
	2009			2009		2009			2009			2010			2010			2009		2010
Statutory underwriting
Gross written premiums	$	5,863		$	5,969	$	5,935		$	5,518		$	5,803		$	5,974		$	11,832	$	11,777
Net written premiums	$	5,203		$	5,605	$	5,340		$	5,188		$	5,251		$	5,688		$	10,808	$	10,939
Net earned premiums	$	5,301		$	5,353	$	5,421		$	5,343		$	5,230		$	5,340		$	10,654	$	10,570
Losses and loss adjustment expenses	3,159			3,300		3,090			2,736			3,349			3,382			6,459		6,731
Underwriting expenses	1,710			1,724		1,770			1,658			1,708			1,757			3,434		3,465
Statutory underwriting gain	432			329		561			949			173			201			761		374
Policyholder dividends	8			6		7			4			8			7			14		15
Statutory underwriting gain after policyholder dividends	$	424		$	323	$	554		$	945		$	165		$	194		$	747	$	359
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	41,156		$	41,495	$	41,357		$	40,923		$	40,849		$	40,766		$	41,495	$	40,766
Increase (decrease) in reserves	$	(151	)	$	339	$	(138	)	$	(434	)	$	(74	)	$	(83	)	$	188	$	(157	)
Statutory surplus	$	21,561		$	21,267	$	22,050		$	23,195		$	21,607		$	21,077		$	21,267	$	21,077
Net written premiums/surplus (1)	1.01:1			1.02:1		0.98:1			0.92:1			0.99:1			1.02:1			1.02:1		1.02:1

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

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

6

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Written premiums
Gross	$	5,863		$	5,969		$	5,935		$	5,518		$	5,803		$	5,974		$	11,832		$	11,777
Ceded	(660		)	(364		)	(595		)	(330		)	(552		)	(286		)	(1,024		)	(838		)
Net	$	5,203		$	5,605		$	5,340		$	5,188		$	5,251		$	5,688		$	10,808		$	10,939
Earned premiums
Gross	$	5,808		$	5,862		$	5,915		$	5,835		$	5,697		$	5,770		$	11,670		$	11,467
Ceded	(507		)	(509		)	(494		)	(492		)	(467		)	(430		)	(1,016		)	(897		)
Net	$	5,301		$	5,353		$	5,421		$	5,343		$	5,230		$	5,340		$	10,654		$	10,570

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

7

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Revenues
Premiums	$	2,757		$	2,770		$	2,768		$	2,673		$	2,628		$	2,663		$	5,527		$	5,291
Net investment income	355			451			529			567			528			537			806			1,065
Fee income	73			89			72			72			79			76			162			155
Other revenues	6			12			14			10			6			7			18			13
Total revenues	3,191			3,322			3,383			3,322			3,241			3,283			6,513			6,524
Claims and expenses
Claims and claim adjustment expenses	1,618			1,644			1,508			1,267			1,583			1,621			3,262			3,204
Amortization of deferred acquisition costs	449			450			448			428			425			439			899			864
General and administrative expenses (1)	467			493			517			489			481			469			960			950
Total claims and expenses	2,534			2,587			2,473			2,184			2,489			2,529			5,121			5,018
Operating income before federal income taxes	657			735			910			1,138			752			754			1,392			1,506
Income taxes	110			175			242			323			185			187			285			372
Operating income	$	547		$	560		$	668		$	815		$	567		$	567		$	1,107		$	1,134
Other statistics
Effective tax rate on net investment income	10.8		%	15.9		%	18.8		%	19.7		%	18.6		%	18.8		%	13.6		%	18.7		%
Net investment income (after-tax)	$	317		$	379		$	429		$	456		$	430		$	435		$	696		$	865
Catastrophes, net of reinsurance:
Pre-tax	$	12		$	59		$	86		$	19		$	135		$	179		$	71		$	314
After-tax	$	8		$	38		$	56		$	12		$	88		$	116		$	46		$	204

(1)  In 1Q 2009, and 2Q 2009 “General and administrative expenses” includes $(26) million and $(12) million, respectively, of reductions in estimated hurricane-related assessments from state-created insurance

and windstorm insurance entities.

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

8

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Underwriting gain	$	226		$	172		$	228		$	351		$	132		$	127		$	398		$	259
Net investment income	317			379			429			456			430			435			696			865
Other	4			9			11			8			5			5			13			10
Operating income	$	547		$	560		$	668		$	815		$	567		$	567		$	1,107		$	1,134
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	57.8		%	57.6		%	53.5		%	46.3		%	58.7		%	59.5		%	57.7		%	59.1		%
Underwriting expense ratio (3)	31.2		%	32.2		%	33.0		%	32.5		%	32.7		%	32.3		%	31.7		%	32.5		%
Combined ratio	89.0		%	89.8		%	86.5		%	78.8		%	91.4		%	91.8		%	89.4		%	91.6		%
Impact of catastrophes on combined ratio	0.4		%	2.1		%	3.1		%	0.7		%	5.1		%	6.7		%	1.3		%	6.0		%
Impact of prior year reserve development on combined ratio	-6.6		%	-7.8		%	-9.5		%	-13.6		%	-9.2		%	-11.3		%	-7.2		%	-10.3		%

(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		2Q		2Q
	2009		2009		2009		2009		2010		2010		2009		2010
Billing and policy fees	$	4	$	4	$	4	$	4	$	4	$	4	$	8	$	8
Fee income:
Loss and loss adjustment expenses	$	20	$	42	$	24	$	28	$	36	$	31	$	62	$	67
Underwriting expenses	53		47		48		44		43		45		100		88
Total fee income	$	73	$	89	$	72	$	72	$	79	$	76	$	162	$	155

(3)  The impact of reductions 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 (0.7) points for 1Q 2009, 2Q 2009, and YTD 2Q 2009, respectively.

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

9

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2009		2009		2009		2009		2010		2010		2009		2010
Statutory underwriting
Gross written premiums	$	3,294	$	3,046	$	3,029	$	2,729	$	3,118	$	2,996	$	6,340	$	6,114
Net written premiums	$	2,963	$	2,813	$	2,611	$	2,515	$	2,834	$	2,795	$	5,776	$	5,629
Net earned premiums	$	2,757	$	2,770	$	2,768	$	2,673	$	2,628	$	2,663	$	5,527	$	5,291
Losses and loss adjustment expenses	1,592		1,603		1,479		1,240		1,547		1,586		3,195		3,133
Underwriting expenses	903		877		892		820		866		869		1,780		1,735
Statutory underwriting gain	262		290		397		613		215		208		552		423
Policyholder dividends	4		4		4		3		4		6		8		10
Statutory underwriting gain after policyholder dividends	$	258	$	286	$	393	$	610	$	211	$	202	$	544	$	413

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

10

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

														YTD			YTD
	1Q			2Q		3Q		4Q		1Q		2Q		2Q			2Q
	2009			2009		2009		2009		2010		2010		2009			2010
Net written premiums by market
Select Accounts	$	731		$	732	$	655	$	638	$	702	$	716	$	1,463		$	1,418
Commercial Accounts	710			564		609		610		706		581		1,274			1,287
National Accounts	259			227		197		219		226		194		486			420
Industry-Focused Underwriting	617			581		564		517		569		584		1,198			1,153
Target Risk Underwriting	422			458		360		328		412		469		880			881
Specialized Distribution	222			247		221		199		215		247		469			462
Total core	2,961			2,809		2,606		2,511		2,830		2,791		5,770			5,621
Business Insurance other	2			4		5		4		4		4		6			8
Total	$	2,963		$	2,813	$	2,611	$	2,515	$	2,834	$	2,795	$	5,776		$	5,629
Net written premiums by product line
Commercial multi-peril	$	789		$	730	$	682	$	732	$	784	$	752	$	1,519		$	1,536
Workers’ compensation	748			593		587		558		725		600		1,341			1,325
Commercial automobile	485			497		498		447		483		492		982			975
Property	463			507		401		356		430		493		970			923
General liability	479			486		443		421		412		458		965			870
Other	(1		)	—		—		1		—		—		(1		)	—
Total	$	2,963		$	2,813	$	2,611	$	2,515	$	2,834	$	2,795	$	5,776		$	5,629
National accounts
Additions to claim volume under administration (1)	$	594		$	452	$	403	$	454	$	536	$	399	$	1,046		$	935
Written fees	$	85		$	70	$	65	$	63	$	74	$	64	$	155		$	138

(1)  Includes new and renewal business.

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

11

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Revenues
Premiums	$	801		$	810		$	861		$	861		$	824		$	855		$	1,611		$	1,679
Net investment income	104			107			118			123			111			110			211			221
Other revenues	6			7			7			7			6			7			13			13
Total revenues	911			924			986			991			941			972			1,835			1,913
Claims and expenses
Claims and claim adjustment expenses	442			442			463			400			516			414			884			930
Amortization of deferred acquisition costs	146			151			162			163			153			153			297			306
General and administrative expenses (1)	138			146			141			154			149			148			284			297
Total claims and expenses	726			739			766			717			818			715			1,465			1,533
Operating income before federal income taxes	185			185			220			274			123			257			370			380
Income taxes	37			52			53			80			37			85			89			122
Operating income	$	148		$	133		$	167		$	194		$	86		$	172		$	281		$	258
Other statistics
Effective tax rate on net investment income	19.4		%	20.9		%	21.7		%	20.8		%	21.0		%	20.7		%	20.2		%	20.9		%
Net investment income (after-tax)	$	84		$	84		$	93		$	97		$	87		$	89		$	168		$	176
Catastrophes, net of reinsurance (2):
Pre-tax	$	—		$	2		$	4		$	(3	)	$	86		$	3		$	2		$	89
After-tax	$	—		$	1		$	3		$	(2	)	$	62		$	2		$	1		$	64

(1)  In 1Q 2009 “General and administrative expenses” includes $(1) million of reductions in estimated hurricane-related assessments from state-created insurance and windstorm insurance entities.

(2)  In 4Q 2009, “Catastrophes, net of reinsurance” includes a net benefit from re-estimation of current year catastrophe losses.

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

12

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Underwriting gain (loss)	$	60		$	44		$	69		$	93		$	(5	)	$	79		$	104		$	74
Net investment income	84			84			93			97			87			89			168			176
Other	4			5			5			4			4			4			9			8
Operating income	$	148		$	133		$	167		$	194		$	86		$	172		$	281		$	258
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	54.7		%	54.4		%	53.3		%	46.3		%	62.3		%	48.1		%	54.5		%	55.1		%
Underwriting expense ratio (2)	35.5		%	36.5		%	35.4		%	36.8		%	36.6		%	35.2		%	36.0		%	35.9		%
Combined ratio	90.2		%	90.9		%	88.7		%	83.1		%	98.9		%	83.3		%	90.5		%	91.0		%
Impact of catastrophes on combined ratio	0.0		%	0.2		%	0.5		%	-0.3		%	10.4		%	0.4		%	0.1		%	5.3		%
Impact of prior year reserve development on combined ratio	-1.4		%	-1.4		%	-2.9		%	-13.9		%	-4.2		%	-8.4		%	-1.5		%	-6.3		%

(1)  Before policyholder dividends.

(2)  The impact of reductions 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 (0.1) for 1Q 2009 and YTD 2Q 2009, respectively.

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

13

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

														YTD		YTD
	1Q		2Q		3Q		4Q		1Q			2Q		2Q		2Q
	2009		2009		2009		2009		2010			2010		2009		2010
Statutory underwriting
Gross written premiums	$	842	$	975	$	918	$	978	$	898		$	915	$	1,817	$	1,813
Net written premiums	$	563	$	914	$	870	$	938	$	681		$	889	$	1,477	$	1,570
Net earned premiums	$	801	$	810	$	861	$	861	$	824		$	855	$	1,611	$	1,679
Losses and loss adjustment expenses	437		448		459		403		513			412		885		925
Underwriting expenses	286		298		288		301		308			303		584		611
Statutory underwriting gain	78		64		114		157		3			140		142		143
Policyholder dividends	4		2		3		1		4			1		6		5
Statutory underwriting gain (loss) after policyholder dividends	$	74	$	62	$	111	$	156	$	(1	)	$	139	$	136	$	138

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

14

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2009		2009		2009		2009		2010		2010		2009		2010
Net written premiums by market
Bond & Financial Products	$	334	$	558	$	574	$	574	$	362	$	559	$	892	$	921
International	229		356		296		364		319		330		585		649
Total	$	563	$	914	$	870	$	938	$	681	$	889	$	1,477	$	1,570
Net written premiums by product line
General liability	$	129	$	256	$	252	$	269	$	132	$	232	$	385	$	364
Fidelity & surety	170		265		291		274		194		292		435		486
International	229		356		296		364		319		330		585		649
Other	35		37		31		31		36		35		72		71
Total	$	563	$	914	$	870	$	938	$	681	$	889	$	1,477	$	1,570

In 2Q 2009, results from the surety bond operation in Canada were reclassified from the “Bond & 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 - Personal Insurance
($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Revenues
Premiums	$	1,743		$	1,773		$	1,792		$	1,809		$	1,778		$	1,822		$	3,516		$	3,600
Net investment income	83			100			116			123			114			115			183			229
Other revenues	21			21			20			22			20			18			42			38
Total revenues	1,847			1,894			1,928			1,954			1,912			1,955			3,741			3,867
Claims and expenses
Claims and claim adjustment expenses	1,130			1,249			1,152			1,093			1,289			1,384			2,379			2,673
Amortization of deferred acquisition costs	349			352			357			358			351			358			701			709
General and administrative expenses (1)	170			187			220			207			207			210			357			417
Total claims and expenses	1,649			1,788			1,729			1,658			1,847			1,952			3,437			3,799
Operating income before federal income taxes	198			106			199			296			65			3			304			68
Income taxes	44			18			50			86			6			(16		)	62			(10		)
Operating income	$	154		$	88		$	149		$	210		$	59		$	19		$	242		$	78
Other statistics
Effective tax rate on net investment income	12.0		%	16.1		%	18.7		%	19.5		%	18.6		%	18.7		%	14.2		%	18.6		%
Net investment income (after-tax)	$	73		$	84		$	94		$	100		$	93		$	93		$	157		$	186
Catastrophes, net of reinsurance:
Pre-tax	$	71		$	139		$	68		$	—		$	250		$	257		$	210		$	507
After-tax	$	46		$	91		$	44		$	—		$	162		$	167		$	137		$	329

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

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

16

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Underwriting gain (loss)	$	67		$	(10	)	$	41		$	96		$	(47	)	$	(87	)	$	57		$	(134	)
Net investment income	73			84			94			100			93			93			157			186
Other	14			14			14			14			13			13			28			26
Operating income	$	154		$	88		$	149		$	210		$	59		$	19		$	242		$	78
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	64.9		%	70.5		%	64.3		%	60.4		%	72.5		%	76.0		%	67.6		%	74.3		%
Underwriting expense ratio (2)	28.4		%	29.1		%	30.9		%	30.0		%	30.1		%	29.9		%	28.8		%	30.0		%
Combined ratio	93.3		%	99.6		%	95.2		%	90.4		%	102.6		%	105.9		%	96.4		%	104.3		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	91.7		%	97.7		%	93.3		%	89.0		%	100.9		%	104.0		%	94.7		%	102.5		%
Impact of catastrophes on combined ratio	4.1		%	7.9		%	3.8		%	0.0		%	14.0		%	14.0		%	6.0		%	14.1		%
Impact of prior year reserve development on combined ratio	-3.7		%	-1.9		%	-1.3		%	-0.8		%	-1.0		%	-0.5		%	-2.8		%	-0.8		%

(1)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  Billing and policy fees are as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2009		2009		2009		2009		2010		2010		2009		2010
Billing and policy fees	$	23	$	23	$	22	$	23	$	23	$	21	$	46	$	44

(2)  The impact of reductions 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 (1.4) points for 1Q 2009, 2Q 2009, and YTD 2Q 2009, respectively.

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

17

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

																YTD		YTD
	1Q		2Q			3Q		4Q		1Q			2Q			2Q		2Q
	2009		2009			2009		2009		2010			2010			2009		2010
Statutory underwriting
Gross written premiums	$	1,727	$	1,948		$	1,988	$	1,811	$	1,787		$	2,063		$	3,675	$	3,850
Net written premiums	$	1,677	$	1,878		$	1,859	$	1,735	$	1,736		$	2,004		$	3,555	$	3,740
Net earned premiums	$	1,743	$	1,773		$	1,792	$	1,809	$	1,778		$	1,822		$	3,516	$	3,600
Losses and loss adjustment expenses	1,130		1,249			1,152		1,093		1,289			1,384			2,379		2,673
Underwriting expenses	521		549			590		537		534			585			1,070		1,119
Statutory underwriting gain (loss)	$	92	$	(25	)	$	50	$	179	$	(45	)	$	(147	)	$	67	$	(192	)
Policies in force (in thousands)
Automobile	2,509		2,491			2,482		2,480		2,489			2,516			2,491		2,516
Homeowners and other	4,861		4,901			4,944		4,985		5,030			5,100			4,901		5,100

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

18

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Statutory underwriting
Gross written premiums	$	924		$	919		$	905		$	862		$	917		$	951		$	1,843		$	1,868
Net written premiums	$	917		$	914		$	898		$	857		$	913		$	945		$	1,831		$	1,858
Net earned premiums	$	913		$	917		$	915		$	916		$	892		$	905		$	1,830		$	1,797
Losses and loss adjustment expenses	668			639			643			682			613			638			1,307			1,251
Underwriting expenses	254			249			247			237			249			254			503			503
Statutory underwriting gain (loss)	$	(9	)	$	29		$	25		$	(3	)	$	30		$	13		$	20		$	43
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	73.2		%	69.7		%	70.2		%	74.5		%	68.7		%	70.5		%	71.4		%	69.6		%
Underwriting expense ratio	27.0		%	26.7		%	27.1		%	26.4		%	26.7		%	26.9		%	26.8		%	26.8		%
Combined ratio	100.2		%	96.4		%	97.3		%	100.9		%	95.4		%	97.4		%	98.2		%	96.4		%
Impact of catastrophes on combined ratio	0.9		%	1.0		%	0.8		%	0.0		%	0.8		%	1.6		%	0.9		%	1.2		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	8		$	9		$	7		$	—		$	7		$	14		$	17		$	21
After-tax	$	5		$	6		$	5		$	—		$	4		$	10		$	11		$	14
Policies in force (in thousands)	2,489			2,466			2,451			2,443			2,447			2,468
Change from prior year quarter	-0.2		%	-2.3		%	-3.0		%	-2.7		%	-1.7		%	0.1		%
Change from prior quarter	-0.9		%	-0.9		%	-0.6		%	-0.3		%	0.2		%	0.9		%

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

(2)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses. Billing and policy fees are as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2009		2009		2009		2009		2010		2010		2009		2010
Billing and policy fees	$	13	$	14	$	12	$	13	$	13	$	11	$	27	$	24

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

19

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Statutory underwriting
Gross written premiums	$	792		$	1,018		$	1,067		$	932		$	849		$	1,089		$	1,810		$	1,938
Net written premiums	$	749		$	952		$	946		$	861		$	803		$	1,035		$	1,701		$	1,838
Net earned premiums	$	824		$	846		$	865		$	879		$	870		$	897		$	1,670		$	1,767
Losses and loss adjustment expenses	458			599			499			399			662			729			1,057			1,391
Underwriting expenses	239			268			306			275			252			292			507			544
Statutory underwriting gain (loss)	$	127		$	(21	)	$	60		$	205		$	(44	)	$	(124	)	$	106		$	(168	)
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	55.6		%	70.8		%	57.7		%	45.4		%	76.1		%	81.3		%	63.3		%	78.7		%
Underwriting expense ratio	26.8		%	28.4		%	31.3		%	31.2		%	30.6		%	29.4		%	27.6		%	30.0		%
Combined ratio	82.4		%	99.2		%	89.0		%	76.6		%	106.7		%	110.7		%	90.9		%	108.7		%
Impact of catastrophes on combined ratio	7.6		%	15.3		%	7.0		%	0.0		%	27.9		%	26.8		%	11.5		%	27.3		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	63		$	130		$	61		$	—		$	242		$	241		$	193		$	483
After-tax	$	41		$	85		$	39		$	—		$	158		$	156		$	126		$	314
Policies in force (in thousands)	4,850			4,886			4,923			4,959			5,000			5,064
Change from prior year quarter	3.1		%	2.8		%	2.5		%	2.8		%	3.1		%	3.6		%
Change from prior quarter	0.5		%	0.7		%	0.8		%	0.7		%	0.8		%	1.3		%

(1)	Represents Homeowners and Other Lines sold through agents, brokers and other intermediaries, and excludes direct to consumer.
(2)	Billing and policy fees, which are a component of other revenues, are allocated as a reduction of underwriting expenses. Billing and policy fees are as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2009		2009		2009		2009		2010		2010		2009		2010
Billing and policy fees	$	10	$	9	$	10	$	10	$	10	$	9	$	19	$	19

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

20

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Revenues
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	—			9			1			—			—			—			9			—
Total revenues	—			9			1			—			—			—			9			—
Claims and expenses
Interest expense	92			94			98			98			98			97			186			195
General and administrative expenses	7			13			11			6			10			5			20			15
Total claims and expenses	99			107			109			104			108			102			206			210
Operating loss before federal income tax benefit	(99		)	(98		)	(108		)	(104		)	(108		)	(102		)	(197		)	(210		)
Income taxes	(49		)	(49		)	(38		)	(40		)	(27		)	(34		)	(98		)	(61		)
Operating loss	$	(50	)	$	(49	)	$	(70	)	$	(64	)	$	(81	)	$	(68	)	$	(99	)	$	(149	)

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

21

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

	June 30,		December 31,
	2010 (1)		2009
Assets
Fixed maturities, available for sale, at fair value (including $146 and $90 subject to securities lending) (amortized cost $61,561 and $63,311)	$	64,891	$	65,847
Equity securities, available for sale, at fair value (cost $389 and $373)	585		451
Real estate	846		865
Short-term securities	3,859		4,852
Other investments	2,948		2,950
Total investments	73,129		74,965
Cash	266		255
Investment income accrued	799		825
Premiums receivable	5,840		5,471
Reinsurance recoverables	12,273		12,816
Ceded unearned premiums	848		916
Deferred acquisition costs	1,804		1,758
Deferred tax asset	368		672
Contractholder receivables	5,595		5,797
Goodwill	3,365		3,365
Other intangible assets	543		588
Other assets	2,193		2,132
Total assets	$	107,023	$	109,560

	June 30,			December 31,
	2010 (1)			2009
Liabilities
Claims and claim adjustment expense reserves	$	52,271		$	53,127
Unearned premium reserves	11,092			10,861
Contractholder payables	5,595			5,797
Payables for reinsurance premiums	467			546
Debt	6,276			6,527
Other liabilities	5,036			5,287
Total liabilities	80,737			82,145
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.2 shares issued and outstanding at both dates)	72			79
Common stock (1,748.6 shares authorized; 470.8 and 520.3 shares issued and outstanding)	19,884			19,593
Retained earnings	17,285			16,315
Accumulated other changes in equity from nonowner sources	1,690			1,219
Treasury stock, at cost (255.6 and 199.6 shares)	(12,645		)	(9,791		)
Total shareholders’ equity	26,286			27,415
Total liabilities and shareholders’ equity	$	107,023		$	109,560

(1) Preliminary.

22

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

	June 30,		Pre-tax Book		December 31,		Pre-tax Book
	2010		Yield (1)		2009		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	24,152	4.95	%	$	25,006	4.91	%
Tax-exempt fixed maturities	40,739		4.09	%	40,841		4.08	%
Total fixed maturities	64,891		4.41	%	65,847		4.40	%
Non-redeemable preferred stocks	232		6.60	%	232		6.60	%
Common stocks	353				219
Total equity securities	585				451
Real estate	846				865
Short-term securities	3,859		0.21	%	4,852		0.19	%
Private equities	1,652				1,557
Hedge funds	493				472
Real estate partnerships	518				508
Mortgage loans	38		6.28	%	40		6.56	%
Trading securities	20				24
Other investments	227				349
Total other investments	2,948				2,950
Total investments	$	73,129			$	74,965
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	2,381			$	1,861

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

23

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

	June 30,		December 31,
	2010		2009
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,164	$	2,574
Obligations of states and political subdivisions	41,222		41,333
Debt securities issued by foreign governments	1,802		1,957
Mortgage-backed securities - principally obligations of U.S. Government agencies	4,810		5,207
Corporates (including redeemable preferreds)	14,893		14,776
Total fixed maturities	$	64,891	$	65,847
Fixed Maturities
Quality Characteristics (1)
	June 30, 2010
	Amount		% of Total
Quality Ratings
Aaa	$	31,845	49.1		%
Aa	20,443		31.5
A	6,413		9.9
Baa	4,306		6.6
Total investment grade	63,007		97.1
Ba	818		1.3
B	658		1.0
Caa and lower	408		0.6
Total below investment grade	1,884		2.9
Total fixed maturities	$	64,891	100.0		%
Average weighted quality	Aa2, AA
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	3.8

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

24

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Gross investment income
Fixed maturities	$	713		$	691		$	703		$	715		$	691		$	678		$	1,404		$	1,369
Short-term securities	10			7			5			5			3			3			17			6
Other	(175		)	(33		)	63			105			66			89			(208		)	155
	548			665			771			825			760			770			1,213			1,530
Investment expenses	6			7			8			12			7			8			13			15
Net investment income, pre-tax	542			658			763			813			753			762			1,200			1,515
Income taxes	68			111			147			160			143			145			179			288
Net investment income, after-tax	$	474		$	547		$	616		$	653		$	610		$	617		$	1,021		$	1,227
Effective tax rate	12.6		%	16.7		%	19.2		%	19.8		%	18.9		%	19.1		%	14.9		%	19.0		%
Average invested assets (1)	$	72,720		$	72,589		$	73,515		$	73,573		$	72,659		$	71,294		$	72,713		$	71,987
Average yield pre-tax (1)	3.0		%	3.6		%	4.2		%	4.4		%	4.1		%	4.3		%	3.3		%	4.2		%
Average yield after-tax	2.6		%	3.0		%	3.4		%	3.5		%	3.4		%	3.5		%	2.8		%	3.4		%

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

25

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Net realized investment gains (losses)
Fixed maturities	$	(100	)	$	(2	)	$	19		$	14		$	22		$	17		$	(102	)	$	39
Equity securities	(74		)	1			2			3			8			3			(73		)	11
Other (1) (2)	(40		)	14			8			172			(5		)	(51		)	(26		)	(56		)
Realized investment gains (losses) before tax	(214		)	13			29			189			25			(31		)	(201		)	(6		)
Related taxes	(77		)	5			8			59			9			(11		)	(72		)	(2		)
Net realized investment gains (losses)	$	(137	)	$	8		$	21		$	130		$	16		$	(20	)	$	(129	)	$	(4	)
Gross investment gains (1)	$	105		$	116		$	132		$	310		$	89		$	75		$	221		$	164
Gross investment losses before impairments (1)	(135		)	(73		)	(84		)	(96		)	(54		)	(102		)	(208		)	(156		)
Net investment gains (losses) before impairments	(30		)	43			48			214			35			(27		)	13			8
Other-than-temporary impairment losses:
Total losses	(184		)	(75		)	(43		)	(21		)	(1		)	2			(259		)	1
Portion of losses recognized in accumulated other changes in equity from nonowner sources	—			45			24			(4		)	(9		)	(6		)	45			(15		)
Other-than-temporary impairment losses	(184		)	(30		)	(19		)	(25		)	(10		)	(4		)	(214		)	(14		)
Net realized investment gains (losses) before tax	(214		)	13			29			189			25			(31		)	(201		)	(6		)
Related taxes	(77		)	5			8			59			9			(11		)	(72		)	(2		)
Net realized investment gains (losses)	$	(137	)	$	8		$	21		$	130		$	16		$	(20	)	$	(129	)	$	(4	)

	March 31,		June 30,		September 30,		December 31,		March 31,		June 30,
	2009		2009		2009		2009		2010		2010
Net unrealized investment gains, net of tax, by asset type
Fixed maturities	$	732	$	1,139	$	3,142	$	2,536	$	2,653	$	3,330
Equity securities & other	71		157		262		294		296		296
Unrealized investment gains before tax	803		1,296		3,404		2,830		2,949		3,626
Related taxes	260		431		1,168		969		1,011		1,245
Balance, end of period	$	543	$	865	$	2,236	$	1,861	$	1,938	$	2,381

(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	$	76	$	71	$	39	$	56	$	26	$	37	$	147	$	63
Gross investment Treasury future losses	$	76	$	46	$	50	$	47	$	33	$	63	$	122	$	96

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.

(2)  In 4Q 2009, the Company sold a portion of its common stock holdings in Verisk Analytics, Inc. (Verisk) for total proceeds of approximately $184 million as part of the initial public offering of Verisk.  The Company recorded a pretax realized investment gain of $159 million on this sale in 4Q 2009.

26

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

	June 30,			December 31,
	2010			2009
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	7,585		$	8,138
Allowance for uncollectible reinsurance	(464		)	(523		)
Net reinsurance recoverables	7,121			7,615
Mandatory pools and associations	1,727			1,745
Structured settlements	3,425			3,456
Total reinsurance recoverables	$	12,273		$	12,816

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

	A.M. Best Rating of Group’s	June 30,		December 31,
Reinsurer	Predominant Reinsurer	2010		2009
Swiss Re Group	A third highest of 16 ratings	$	772	$	895
Munich Re Group	A+ second highest of 16 ratings	741		779
Transatlantic Holdings, Inc.	A third highest of 16 ratings	420		485
XL Capital Group	A third highest of 16 ratings	375		398
Berkshire Hathaway Group	A++ highest of 16 ratings	365		386

The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and unasserted claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, about half is attributable to 10 reinsurer groups.

The net reinsurance recoverables reflect an allowance for uncollectible reinsurance that is based upon the Company’s ongoing review of amounts outstanding, reinsurer solvency, the Company’s experience, current economic conditions, and other relevant factors.  Of the total net recoverables due from reinsurers at June 30, 2010, after deducting mandatory pools and associations and structured settlement balances, $5.6 billion, or 78%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% were rated A- or better.  The remaining 22% net recoverables from reinsurers were comprised of the following:  6% related to the Company’s participation in voluntary pools, 10% related to recoverables from captive insurance companies and 6% 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 June 30, 2010.

The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in.  These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market.  The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state.  In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.

The structured settlements represent recoverables from annuities that were purchased from life insurance companies to settle personal physical injury claims, with workers’ compensation claims comprising a significant proportion.  In cases where the Company did not receive a release from the claimant, the Company retains the liability to the claimant in the event that the life insurance company fails to pay; accordingly, the Company continues to report the amount due from the life insurance company as a liability and as a recoverable for GAAP purposes. The Company’s top five groups by structured settlement is as follows:

	A.M. Best Rating of Group’s	June 30,		December 31,
Group	Predominant Insurer	2010		2009
Old Mutual	A- fourth highest of 16 ratings	$	1,042	$	1,050
Metlife	A+ second highest of 16 ratings	520		529
Genworth	A third highest of 16 ratings	465		472
Symetra	A third highest of 16 ratings	282		286
ING Group	A third highest of 16 ratings	232		235

27

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Business Insurance
Beginning of period	$	32,270		$	32,043		$	31,986		$	31,750		$	31,289		$	31,079		$	32,270		$	31,289
Incurred	1,592			1,603			1,479			1,240			1,547			1,586			3,195			3,133
Paid	(1,816		)	(1,688		)	(1,726		)	(1,704		)	(1,747		)	(1,751		)	(3,504		)	(3,498		)
Foreign exchange and other	(3		)	28			11			3			(10		)	(14		)	25			(24		)
End of period	$	32,043		$	31,986		$	31,750		$	31,289		$	31,079		$	30,900		$	31,986		$	30,900
Financial, Professional & International Insurance
Beginning of period	$	5,397		$	5,503		$	5,821		$	5,970		$	6,003		$	6,022		$	5,397		$	6,003
Incurred	437			448			459			403			513			412			885			925
Paid	(309		)	(338		)	(354		)	(386		)	(443		)	(363		)	(647		)	(806		)
Foreign exchange and other	(22		)	208			44			16			(51		)	(76		)	186			(127		)
End of period	$	5,503		$	5,821		$	5,970		$	6,003		$	6,022		$	5,995		$	5,821		$	5,995
Personal Insurance
Beginning of period	$	3,640		$	3,610		$	3,688		$	3,637		$	3,631		$	3,748		$	3,640		$	3,631
Incurred	1,130			1,249			1,152			1,093			1,289			1,384			2,379			2,673
Paid	(1,160		)	(1,171		)	(1,203		)	(1,099		)	(1,172		)	(1,261		)	(2,331		)	(2,433		)
End of period	$	3,610		$	3,688		$	3,637		$	3,631		$	3,748		$	3,871		$	3,688		$	3,871
Total
Beginning of period	$	41,307		$	41,156		$	41,495		$	41,357		$	40,923		$	40,849		$	41,307		$	40,923
Incurred	3,159			3,300			3,090			2,736			3,349			3,382			6,459			6,731
Paid	(3,285		)	(3,197		)	(3,283		)	(3,189		)	(3,362		)	(3,375		)	(6,482		)	(6,737		)
Foreign exchange and other	(25		)	236			55			19			(61		)	(90		)	211			(151		)
End of period	$	41,156		$	41,495		$	41,357		$	40,923		$	40,849		$	40,766		$	41,495		$	40,766
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	185		$	—		$	—		$	—		$	—		$	—
Environmental	—			70			—			—			—			35			70			35
All other	(182		)	(286		)	(447		)	(366		)	(242		)	(338		)	(468		)	(580		)
Prior year development excluding accretion of discount	(182		)	(216		)	(262		)	(366		)	(242		)	(303		)	(398		)	(545		)
Accretion of discount	14			14			14			12			11			12			28			23
Total Business Insurance	(168		)	(202		)	(248		)	(354		)	(231		)	(291		)	(370		)	(522		)
Financial, Professional & International Insurance	(12		)	(11		)	(25		)	(120		)	(34		)	(72		)	(23		)	(106		)
Personal Insurance	(64		)	(34		)	(22		)	(15		)	(18		)	(9		)	(98		)	(27		)
Total	$	(244	)	$	(247	)	$	(295	)	$	(489	)	$	(283	)	$	(372	)	$	(491	)	$	(655	)

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

28

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Asbestos reserves
Beginning reserves:
Direct	$	3,299		$	3,216		$	3,136		$	3,251		$	3,097		$	3,004		$	3,299		$	3,097
Ceded	(385		)	(363		)	(345		)	(336		)	(339		)	(320		)	(385		)	(339		)
Net	2,914			2,853			2,791			2,915			2,758			2,684			2,914			2,758
Incurred losses and loss expenses:
Direct	—			—			185			—			—			—			—			—
Ceded	—			—			—			—			—			—			—			—
Losses paid:
Direct	83			80			70			154			93			137			163			230
Ceded	(22		)	(18		)	(9		)	3			(19		)	(46		)	(40		)	(65		)
Ending reserves:
Direct	3,216			3,136			3,251			3,097			3,004			2,867			3,136			2,867
Ceded	(363		)	(345		)	(336		)	(339		)	(320		)	(274		)	(345		)	(274		)
Net	$	2,853		$	2,791		$	2,915		$	2,758		$	2,684		$	2,593		$	2,791		$	2,593
Environmental reserves
Beginning reserves:
Direct	$	400		$	378		$	425		$	411		$	389		$	373		$	400		$	389
Ceded	14			14			3			3			4			4			14			4
Net	414			392			428			414			393			377			414			393
Incurred losses and loss expenses:
Direct	—			85			—			—			—			45			85			45
Ceded	—			(15		)	—			—			—			(10		)	(15		)	(10		)
Losses paid:
Direct	22			38			14			22			16			19			60			35
Ceded	—			(4		)	—			(1		)	—			—			(4		)	—
Ending reserves:
Direct	378			425			411			389			373			399			425			399
Ceded	14			3			3			4			4			(6		)	3			(6		)
Net	$	392		$	428		$	414		$	393		$	377		$	393		$	428		$	393

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

29

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

	June 30,			December 31,
	2010			2009
Debt
Short-term debt
Commercial paper	$	100		$	100
7.415% Medium-term notes due August 23, 2010	21			21
7.81% Private placement note due September 16, 2010 (1)	2			2
8.125% Senior notes due April 15, 2010	—			250
Total short-term debt	123			373
Long-term debt
7.22% Real estate non-recourse debt due September 1, 2011	9			9
7.81% Private placement note due September 16, 2011 (1)	2			2
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 (1)	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			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			6,165
Unamortized fair value adjustment	54			58
Unamortized debt issuance costs	(66		)	(69		)
	6,153			6,154
Total debt	6,276			6,527
Preferred equity	72			79
Common equity (excluding net unrealized investment gains, net of tax)	23,833			25,475
Total capital (excluding net unrealized investment gains, net of tax)	$	30,181		$	32,081
Total debt to capital (excluding net unrealized investment gains, net of tax)	20.8		%	20.3		%

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

30

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

	June 30,			December 31,
	2010 (1)			2009
Statutory capital and surplus	$	21,077		$	23,195
GAAP adjustments
Goodwill and intangible assets	3,714			3,752
Investments	3,793			2,999
Noninsurance companies	(3,758		)	(4,166		)
Deferred acquisition costs	1,804			1,758
Deferred federal income tax	(1,332		)	(1,038		)
Current federal income tax	(91		)	(90		)
Reinsurance recoverables	255			255
Furniture, equipment & software	669			640
Employee benefits	(3		)	(12		)
Agents balances	110			110
Other	48			12
Total GAAP adjustments	5,209			4,220
GAAP shareholders’ equity	$	26,286		$	27,415

(1) Estimated and Preliminary

31

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Cash flows from operating activities
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,402		$	1,317
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	214			(13		)	(29		)	(189		)	(25		)	31			201			6
Depreciation and amortization	206			209			187			195			216			195			415			411
Deferred federal income tax expense (benefit)	22			(53		)	77			167			76			(25		)	(31		)	51
Amortization of deferred acquisition costs	944			953			967			949			929			950			1,897			1,879
Equity in (income) loss from other investments	194			58			(41		)	(85		)	(45		)	(71		)	252			(116		)
Premiums receivable	(44		)	(150		)	282			276			(97		)	(285		)	(194		)	(382		)
Reinsurance recoverables	167			371			355			523			86			442			538			528
Deferred acquisition costs	(948		)	(997		)	(970		)	(882		)	(939		)	(991		)	(1,945		)	(1,930		)
Claims and claim adjustment expense reserves	(373		)	22			(448		)	(797		)	(224		)	(468		)	(351		)	(692		)
Unearned premium reserves	64			163			25			(348		)	86			184			227			270
Other	(295		)	(327		)	75			(67		)	(179		)	(112		)	(622		)	(291		)
Net cash provided by operating activities	813			976			1,415			1,027			531			520			1,789			1,051
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,210			1,179			1,380			1,547			1,229			1,249			2,389			2,478
Proceeds from sales of investments:
Fixed maturities	630			1,234			342			599			1,646			1,135			1,864			2,781
Equity securities	16			15			6			28			19			8			31			27
Real estate	—			—			—			—			9			1			—			10
Other investments	92			48			77			294			114			75			140			189
Purchases of investments:
Fixed maturities	(2,265		)	(2,006		)	(2,079		)	(3,297		)	(2,175		)	(1,765		)	(4,271		)	(3,940		)
Equity securities	(12		)	(6		)	(4		)	(2		)	(5		)	(14		)	(18		)	(19		)
Real estate	(5		)	(4		)	(3		)	(3		)	(3		)	(5		)	(9		)	(8		)
Other investments	(112		)	(74		)	(76		)	(87		)	(104		)	(123		)	(186		)	(227		)
Net (purchases) sales of short-term securities	(451		)	(772		)	(122		)	1,715			202			848			(1,223		)	1,050
Securities transactions in course of settlement	398			(32		)	222			(193		)	95			(93		)	366			2
Other	(84		)	(121		)	(66		)	(55		)	(75		)	(70		)	(205		)	(145		)
Net cash provided by (used in) investing activities	(583		)	(539		)	(323		)	546			952			1,246			(1,122		)	2,198

32

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2009			2009			2009			2009			2010			2010			2009			2010
Cash flows from financing activities
Payment of debt	(141		)	—			(2		)	—			—			(250		)	(141		)	(250		)
Issuance of debt	—			494			—			—			—			—			494			—
Dividends paid to shareholders	(178		)	(172		)	(168		)	(175		)	(168		)	(175		)	(350		)	(343		)
Issuance of common stock - employee share options	10			18			48			104			123			76			28			199
Treasury stock acquired - share repurchase authorization	—			(750		)	(970		)	(1,539		)	(1,407		)	(1,397		)	(750		)	(2,804		)
Treasury stock acquired - net employee share-based compensation	(27		)	(1		)	(1		)	—			(38		)	(2		)	(28		)	(40		)
Excess tax benefits from share-based payment arrangements	1			1			2			4			4			1			2			5
Net cash used in financing activities	(335		)	(410		)	(1,091		)	(1,606		)	(1,486		)	(1,747		)	(745		)	(3,233		)
Effect of exchange rate changes on cash	—			10			3			2			(1		)	(4		)	10			(5		)
Net increase (decrease) in cash	(105		)	37			4			(31		)	(4		)	15			(68		)	11
Cash at beginning of period	350			245			282			286			255			251			350			255
Cash at end of period	$	245		$	282		$	286		$	255		$	251		$	266		$	282		$	266
Income taxes paid	$	34		$	329		$	210		$	303		$	44		$	265		$	363		$	309
Interest paid	$	63		$	122		$	63		$	137		$	63		$	137		$	185		$	200

33

The Travelers Companies, Inc. Financial Supplement - Second Quarter 2010 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.  Adjusted operating income (loss) is operating income (loss) excluding preferred dividends.

Average equity is (a) the sum of total shareholders’ equity excluding preferred stock at the beginning and end of all the quarters for the period presented divided by (b) the number of quarters in the period presented times two.  Adjusted average equity is average equity excluding unrealized investment gains (losses), net of tax, for all quarters included in the calculation and, for each quarterly period included in the calculation, that quarter’s realized investment gains (losses).

Return on equity is the ratio of annualized net income (loss) to average equity for the periods presented.  Operating return on equity is the ratio of annualized adjusted operating income (loss) to adjusted average equity for the periods presented.

In the opinion of the Company’s management, operating income (loss), operating income (loss) per share, adjusted operating income (loss), average equity, adjusted average equity, return on equity and operating return on equity are meaningful indicators of underwriting and operating results.  These measures exclude net realized investment gains or losses, net of taxes, and in the case of operating return on equity, unrealized investment gains or losses, net of taxes, 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 these measures 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, 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, 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 management 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