8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported): October 21, 2010

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

Minnesota	001-10898	41-0518860
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

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

(917) 778-6000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On October 21, 2010, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2010, and the availability of the Company’s third quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

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

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release, dated October 21, 2010, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2010 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:       October 21, 2010	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Matthew S. Furman
		Name: Matthew S. Furman
		Title: Senior Vice President

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated October 21, 2010, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2010 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

EX-99.1

Exhibit 99.1

NEWS RELEASE

Travelers Reports Third Quarter 2010 Net Income per Diluted Share and Operating Income per Diluted Share of $2.11 and $1.81, an Increase of 28% and 12%, Respectively

Return on Equity and Operating Return on Equity of 15.0% and 14.3%, Respectively

Results Reflect Strong Underwriting and Solid Investment Performance

Guidance for 2010 Operating Income per Diluted Share Increased to $5.75-$5.95, from $5.20-$5.45

·Net and operating income of $1.0 billion and $858 million, respectively.

·Total revenues of $6.482 billion, up 2 percent from prior year quarter.

·Net written premiums of $5.462 billion, up 2 percent from prior year quarter.

·Book value per share of $59.11, up 15 percent from prior year quarter and up 13 percent from year-end 2009.

·Repurchased 11.8 million common shares in the quarter for $600 million. Year-to-date repurchased 66.8 million common shares for $3.4 billion.

·Net income included a net realized investment gain of $133 million after-tax ($205 million pre-tax) from sale of Verisk shares.

NEW YORK, October 21, 2010 — The Travelers Companies, Inc. (“Travelers,” NYSE: TRV) today reported net income of $1.005 billion, or $2.11 per diluted share, for the quarter ended September 30, 2010, compared to $935 million, or $1.65 per diluted share, for the quarter ended September 30, 2009.  Operating income in the current quarter was $858 million, or $1.81 per diluted share, compared to $914 million, or $1.61 per diluted share, in the prior year quarter.

“Our third quarter results were very strong,” commented Jay Fishman, Chairman and Chief Executive Officer.  “Net income of $1.0 billion was up 7 percent, or 28 percent on a per diluted share basis, and our return on equity was 15 percent. Underwriting results remained strong across each of our business segments, as evidenced by our consolidated combined ratio of 90.6 percent. Net investment income remained solid although modestly lower than the prior year quarter.

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“In Personal Insurance we were very pleased with our performance. We achieved meaningfully positive renewal premium changes, and we continued to grow policies in force as retention and new business were strong. In addition, earned rate increases outpaced loss cost trends. All of these factors contributed to a higher level of profitability in the current quarter.  Marketplace conditions are such that we are optimistic that we will be able to continue to grow our Personal Insurance business.

“While current profitability across our diversified commercial insurance businesses is solid, the general economic environment continues to present challenges. Reinvestment yields are low by historical standards and exposure and pricing remain flat. On a positive note, our retention continues to be, in general, at historical highs and loss cost trends remain benign.  We have kept our focus on running the business for the long-term, emphasizing account retention, seeking rate where it is appropriate and growing our business where we believe pricing levels warrant. Account growth in Business Insurance has been impressive, and we believe we are well positioned to benefit upon an improvement in economic conditions.

“Lastly, we also remain committed to returning excess capital to shareholders as evidenced by the 66.8 million common shares for a total cost of $3.4 billion repurchased year-to-date. Since the Board’s initial share repurchase authorization granted in the second quarter of 2006, we have repurchased 260 million common shares, or 37 percent of the then outstanding number, for a total cost of $12.9 billion,” concluded Mr. Fishman.

Consolidated Highlights

($ in millions, except for per share amounts,	Three Months Ended September 30,								Nine Months Ended September 30,
and after-tax, except for premiums)	2010			2009			Change		2010			2009			Change
Net written premiums	$	5,462		$	5,340		2	%	$	16,401		$	16,148		2	%
Operating income	$	858		$	914		(6	)	$	2,179		$	2,445		(11	)
per diluted share	$	1.81		$	1.61		12		$	4.39		$	4.21		4
Net income	$	1,005		$	935		7		$	2,322		$	2,337		(1	)
per diluted share	$	2.11		$	1.65		28		$	4.68		$	4.02		16
Book value per share	$	59.11		$	51.24		15		$	59.11		$	51.24		15
Adjusted book value per share	$	52.62		$	47.16		12		$	52.62		$	47.16		12
GAAP combined ratio	90.6		%	89.7		%	0.9	pts	94.0		%	91.2		%	2.8	pts
Operating return on equity	14.3		%	14.1		%	0.2	pts	11.9		%	12.6		%	(0.7	)pts
Return on equity	15.0		%	13.6		%	1.4	pts	11.6		%	11.7		%	(0.1	)pts

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

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Third Quarter 2010 Consolidated Results

The current and prior year quarters included the following:

	Three Months Ended September 30,
	2010			2009			2010			2009
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	476		$	524		$	302		$	338
Underwriting gain includes:
Net favorable prior year reserve development	222			309			147			202
Catastrophes, net of reinsurance	(117		)	(158		)	(77		)	(103		)
Re-estimation of the current year loss ratios for the first two quarters of the year	11			71			7			46
Net investment income	735			763			597			616
Other, including interest expense	(66		)	(66		)	(41		)	(40		)
Operating income	1,145			1,221			858			914
Net realized investment gains	226			29			147			21
Income before income taxes	$	1,371		$	1,250
Net income							$	1,005		$	935
GAAP combined ratio	90.6		%	89.7		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	89.7		%	89.1		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(4.1		)pts	(5.7		)pts
Catastrophes, net of reinsurance	2.2		pts	2.9		pts
Re-estimation of the current year loss ratios for the first two quarters of the year	(0.2		)pts	(1.3		)pts

Operating income of $858 million after-tax in the current quarter decreased $56 million from the prior year quarter primarily due to a $36 million after-tax decrease in the underwriting gain and $19 million after-tax decrease in net investment income.

The decrease in the underwriting gain in the current quarter reflected a GAAP combined ratio of 90.6 percent, as compared to 89.7 percent in the prior year quarter.  This increase of 0.9 points in the combined ratio was driven by an $87 million pre-tax decrease in net favorable prior year reserve development (increase of 1.6 points), partially offset by a $41 million pre-tax decrease in catastrophe losses (reduction of 0.7 points). Catastrophe losses in the current quarter were primarily due to several severe wind and hail storms. The net favorable prior year reserve development in the current quarter resulted from better than expected loss experience in each segment, particularly in Business Insurance and Financial, Professional & International Insurance.

The net favorable prior year reserve development in the current quarter in Business Insurance included a $91 million after-tax ($140 million pre-tax) increase to asbestos reserves, compared to an increase of $120 million after-tax ($185 million pre-tax) in the prior year quarter.  Overall, the company’s assessment of the underlying asbestos environment did not change significantly from recent periods. The reserve strengthening in the current quarter was driven by increases in the company’s estimate for projected settlement and defense costs related to a broad number of policyholders, costs of litigating asbestos-related coverage matters and projected payments on assumed reinsurance accounts.  Included in the increase to asbestos reserves was a $70 million pre-tax benefit from a reduction in the company’s allowance for uncollectible reinsurance resulting from a recent favorable court ruling in a dispute with Munich Re as well as the Excess Casualty Reinsurance Association. The entire award of $417 million consisted of $251 million owed to the company under the terms of the reinsurance agreement, as well as a 9 percent interest award in the amount of $166 million. Based upon this ruling, the company reduced its uncollectible reinsurance reserve by $70 million pre-tax, thereby reflecting in its financial statement the full $251 million owed to the company under the terms of the reinsurance agreement and benefitting operating income by $45 million after-tax. The interest portion of the award was accounted for as a gain contingency in accordance with FASB Topic 450 and, accordingly, has not been included in net or operating income.

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The current quarter underwriting gain excluding net favorable prior year reserve development, catastrophe losses and the re-estimation of current year loss ratios for the first two quarters of the year reflected a GAAP combined ratio of 92.7 percent, as compared to 93.8 percent in the prior year quarter.  This improvement of 1.1 points was primarily due to lower expenses, partially offset by the impact of loss cost trends continuing to modestly outpace earned rate increases in Business Insurance.

The investment portfolio continued to perform well. After-tax net investment income decreased modestly from the prior year quarter mostly due to lower reinvestment rates in the fixed income portfolio.  Net investment income in the non-fixed income portfolio increased slightly from the prior year quarter.  Net realized investment gains of $147 million after-tax ($226 million pre-tax) in the current quarter primarily resulted from the sale of substantially all of the company’s remaining common stock holdings in Verisk Analytics, Inc., which contributed $133 million after-tax ($205 million pre-tax).

Net written premiums of $5.462 billion in the current quarter increased 2 percent from the prior year quarter.  Retention rates and new business remained strong, while renewal rate change remained positive in Personal Insurance and Financial, Professional & International Insurance and were slightly negative in Business Insurance.

Capital Management

“During the quarter, we repurchased 11.8 million common shares under our Board of Directors’ share repurchase authorization for a total cost of $600 million, leaving $3.1 billion of capacity for future share repurchases,” said Jay S. Benet, Vice Chairman and Chief Financial Officer. “We also paid $169 million in common stock dividends.  Additionally, we announced recently that we were increasing guidance for total share repurchases for full year 2010 to a range of $4.5 billion to $5.0 billion from previous guidance of $4.0 billion.”

Shareholders’ equity of $27.3 billion decreased 3 percent from the prior year quarter as a result of the common share repurchases.  Included in shareholders’ equity at the end of the current quarter were after-tax net unrealized investment gains of $3.0 billion, compared to $2.2 billion at the end of the prior year quarter.  Statutory surplus was $20.9 billion, the company’s debt-to-capital ratio (excluding net unrealized investment

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gains) was 20.5 percent, and holding company liquidity was $2.8 billion, over two times its target level.

Business Insurance Segment Financial Results

“We were pleased with the Business Insurance results” commented Brian MacLean, President and Chief Operating Officer. “Our strategic actions and focused execution resulted in significant customer growth as evidenced by increased retentions and solid new business levels in the quarter. While top line performance continued to be constrained by general economic conditions, we are seeing improved trends in insured exposures. We are encouraged by these trends and the impact of our strategic actions which we believe position us well in the marketplace.”

The current and prior year quarters included the following:

	Three Months Ended September 30,
	2010			2009			2010			2009
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	206		$	366		$	116		$	228
Underwriting gain includes:
Net favorable prior year reserve development	102			262			67			170
Catastrophes, net of reinsurance	(53		)	(86		)	(35		)	(56		)
Re-estimation of the current year loss ratios for the first two quarters of the year	11			77			7			50
Net investment income	514			529			420			429
Other	10			15			7			11
Operating income	$	730		$	910		$	543		$	668
GAAP combined ratio	92.1		%	86.5		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(3.8		)pts	(9.5		)pts
Catastrophes, net of reinsurance	2.0		pts	3.1		pts
Re-estimation of the current year loss ratios for the first two quarters of the year	(0.4		)pts	(2.8		)pts

Operating income in the current quarter of $543 million after-tax decreased $125 million from the prior year quarter primarily due to a $112 million after-tax decrease in the underwriting gain and a $9 million after-tax decrease in net investment income.

The decrease in the underwriting gain in the current quarter reflected a GAAP combined ratio of 92.1 percent, as compared to 86.5 percent in the prior year quarter.  This increase of 5.6 points in the combined ratio was primarily driven by a $160 million pre-tax decrease in net favorable prior year reserve development (increase of 5.7 points), partially offset by a $33 million pre-tax decrease in catastrophe losses (reduction of 1.1 points).  Catastrophe losses in the current quarter were primarily due to several severe wind and hail storms. The net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience in the general liability, property, commercial automobile, and workers’ compensation product lines across multiple accident years.  The net favorable prior year reserve development in the current quarter also included an increase to asbestos reserves of $140 million pre-tax.

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The current quarter underwriting gain excluding net favorable prior year reserve development, catastrophe losses and the re-estimation of current year loss ratios for the first two quarters of the year reflected a GAAP combined ratio of 94.3 percent, as compared to 95.7 percent in the prior year quarter.  This improvement of 1.4 points was primarily due to lower expenses, partially offset by the impact of loss cost trends continuing to modestly outpace earned rate increases.

Business Insurance net written premiums of $2.651 billion in the current quarter increased 2 percent from the prior year quarter.  General economic conditions continued to impact exposure changes at renewal, audit premium adjustments, policy endorsements and mid-term cancellations, but the impact was less than in recent quarters.  Retention rates remained strong and increased from recent quarters. The impact of renewal rate change was slightly negative, while new business volumes were solid.

Select Accounts

·Net written premiums of $664 million increased 1 percent from the prior year quarter.

·Retention rates increased from recent quarters.

·Renewal premium change remained positive, but decreased from recent quarters.

·New business volumes were consistent with the prior year quarter. The company continues to see strong volumes from TravelersExpressSM, the company’s enhanced quote-to-issue agency platform and multivariate pricing program for smaller businesses.

Commercial Accounts

·Net written premiums of $655 million increased 8 percent from the prior year quarter.

·Retention rates remained very strong and increased from recent quarters.

·Renewal premium change was slightly negative due to slightly negative renewal rate change.

·New business volumes increased from the prior year quarter due to increased submission flow and continued strong execution in the marketplace.

National Accounts

·Net written premiums of $173 million decreased 12 percent from the prior year quarter due to reduced insured exposures driven by general economic conditions, lower new business volumes, lower prior year retrospective premium adjustments and the loss of a large account.

Industry-Focused Underwriting

·Net written premiums of $590 million increased 5 percent from the prior year quarter primarily due to the company’s Technology and Oil & Gas business units.

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Target Risk Underwriting

·Net written premiums of $342 million decreased 5 percent from the prior year quarter primarily due to the company’s National Property business unit, driven by lower renewal price change and new business volumes.

Specialized Distribution

·Net written premiums of $222 million approximated the prior year quarter.

Financial, Professional & International Insurance Segment Financial Results

“Financial, Professional & International Insurance results were solid in the current quarter and the segment once again benefited from net favorable prior year reserve development,” commented Mr. MacLean. “Net written premiums were down 7 percent compared to the prior year quarter largely due to intentional underwriting actions we have taken in certain lines of our International business as well as a slowdown in construction spending in our construction surety business. On a written basis margins were stable.”

The current and prior year quarters included the following:

	Three Months Ended September 30,
	2010			2009			2010		2009
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	163		$	95		$	121	$	69
Underwriting gain includes:
Net favorable prior year reserve development	97			25			66		17
Catastrophe (losses) / reduction of loss, net of reinsurance	2			(4		)	2		(3		)
Net investment income	110			118			86		93
Other	7			7			5		5
Operating income	$	280		$	220		$	212	$	167
GAAP combined ratio	79.6		%	88.7		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(11.8		)pts	(2.9		)pts
Catastrophes, net of reinsurance	(0.3		)pts	0.5		pts

Operating income in the current quarter of $212 million after-tax increased $45 million from the prior year quarter primarily due to a $52 million after-tax increase in the underwriting gain, partially offset by a $7 million after-tax decrease in net investment income.

The increase in underwriting results in the current quarter reflected a GAAP combined ratio of 79.6 percent, as compared to 88.7 percent in the prior year quarter.  This improvement of 9.1 points in the combined ratio was driven by a $72 million pre-tax increase in net favorable prior year reserve development (reduction of 8.9 points).  The net favorable prior year reserve development in the current quarter resulted from better

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than expected loss experience for recent accident years in both the surety and management liability lines of business within Bond & Financial Products as well as across various lines of business in International.

The current quarter underwriting gain excluding net favorable prior year reserve development and catastrophes reflected a GAAP combined ratio of 91.7 percent, as compared to 91.1 percent in the prior year quarter. This increase of 0.6 points was primarily due to lower earned premium volume, mostly offset by earned rate increases and lower loss severity.

Financial, Professional & International Insurance net written premiums of $808 million decreased 7 percent from the prior year quarter. Adjusting for the impact of changes in foreign exchange rates, net written premiums decreased 6 percent.

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

Bond & Financial Products

·Net written premiums of $547 million decreased 5 percent from the prior year quarter, primarily reflecting lower business volumes in construction surety due to the continued slowdown in construction spending.

·Retention rates were strong and increased from recent quarters.

·Renewal premium change was negative due to slightly negative renewal rate changes as well as reduced insured exposures.

·New business volumes decreased modestly from the prior year quarter across most units of the company’s Management Liability business.

International

·Net written premiums of $261 million decreased 12 percent from the prior year quarter. Adjusting for the impact of changes in foreign exchange rates, net written premiums decreased 9 percent.

·Retention rates decreased from recent quarters largely due to intentional underwriting actions taken at the company’s Lloyd’s operation.

·Renewal premium change was flat as the impact of positive renewal rate changes was offset by reduced insured exposure.

·New business volumes decreased from the prior year quarter primarily due to higher volumes in Ireland in the prior year quarter and the intentional underwriting actions in the company’s Lloyd’s operation.

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Personal Insurance Segment Financial Results

“Personal Insurance continued to deliver profitable growth in the current quarter.  These results reflect the success of our investments and strategic actions implemented over the past few years,” commented Mr. MacLean. “Earned rate increases outpaced loss costs in both our Agency Automobile and Agency Homeowners lines of business. Production remained solid across both lines of business, as policies in force continued to grow and retention rates remained at very high levels.  Given our underwriting margins and top-line performance, we continue to be very pleased with our position in the marketplace.”

The current and prior year quarters included the following:

	Three Months Ended September 30,
	2010			2009			2010			2009
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	107		$	63		$	65		$	41
Underwriting gain includes:
Net favorable prior year reserve development	23			22			14			15
Catastrophes, net of reinsurance	(66		)	(68		)	(44		)	(44		)
Re-estimation of the current year loss ratios for the first two quarters of the year	—			(6		)	—			(4		)
Net investment income	111			116			91			94
Other	18			20			12			14
Operating income	$	236		$	199		$	168		$	149
GAAP combined ratio	93.1		%	95.2		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	90.6		%	93.3		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(1.2		)pts	(1.3		)pts
Catastrophes, net of reinsurance	3.6		pts	3.8		pts
Re-estimation of the current year loss ratios for the first two quarters of the year	—		pts	0.3		pts

Operating income in the current quarter of $168 million after-tax increased $19 million from the prior year quarter primarily due to a $24 million after-tax increase in underwriting results, partially offset by a $3 million after-tax decrease in net investment income.

The increase in underwriting results in the current quarter reflected a GAAP combined ratio of 93.1 percent, as compared to 95.2 percent in the prior year quarter.  Catastrophe losses and net favorable prior year reserve development were consistent with the prior year quarter.  Catastrophe losses in the current quarter were primarily due to several severe wind and hail storms. The net favorable prior year reserve development in the current quarter resulted from better than expected loss experience in Homeowners and Other.

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The current quarter underwriting results excluding net favorable prior year reserve development, catastrophe losses and re-estimation of current year loss ratios for the first two quarters of the year reflected a GAAP combined ratio of 90.7 percent, as compared to 92.4 percent in the prior year quarter. This improvement of 1.7 points was primarily due to lower expenses and the favorable impact of earned rate increases outpacing loss cost trends.

Personal Insurance net written premiums of $2.003 billion increased 8 percent from the prior year quarter, including the company’s direct to consumer initiative and introduction of twelve-month policy terms in certain markets within Automobile.  Adjusting for the introduction of twelve-month policy terms, net written premiums increased 5 percent due to continued positive renewal premium changes, strong retention rates and new business growth.

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

Agency Automobile

·Net written premiums of $952 million increased 6 percent from the prior year quarter. Adjusting for the introduction of the twelve-month policy terms, net written premiums increased 1 percent from the prior year quarter.

·Policies in force increased 1 percent from the prior year quarter.

·Retention rates were strong and renewal premium change remained positive.

·New business volumes increased from the prior year quarter.

Agency Homeowners and Other

·Net written premiums of $1.024 billion increased 8 percent from the prior year quarter.

·Policies in force increased 4 percent from the prior year quarter.

·Retention rates were strong and renewal premium change remained positive.

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

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Year-to-Date 2010 Consolidated Results

The current and prior year-to-date periods included the following:

	Nine Months Ended September 30,
	2010			2009			2010			2009
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	851		$	1,318		$	501		$	897
Underwriting gain includes:
Net favorable prior year reserve development	900			828			590			540
Catastrophes, net of reinsurance	(1,027		)	(441		)	(674		)	(287		)
Resolution of prior year tax matters							—			60
Net investment income	2,250			1,963			1,824			1,637
Other, including interest expense	(212		)	(191		)	(146		)	(89		)
Other also includes:
Resolution of prior year tax matters							—			28
Operating income	2,889			3,090			2,179			2,445
Net realized investment gains (losses)	220			(172		)	143			(108		)
Income before income taxes	$	3,109		$	2,918
Net income							$	2,322		$	2,337
GAAP combined ratio	94.0		%	91.2		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	93.3		%	90.6		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(5.6		)pts	(5.1		)pts
Catastrophes, net of reinsurance	6.4		pts	2.7		pts

Operating income of $2.179 billion after-tax in the current year-to-date period decreased $266 million from the prior year period primarily due to a $396 million after-tax decrease in the underwriting gain resulting from significantly higher catastrophe losses, partially offset by a $187 million after-tax increase in net investment income.

The decrease in the underwriting gain in the current year-to-date period reflected a GAAP combined ratio of 94.0 percent, as compared to 91.2 percent in the prior year period.  This increase of 2.8 points in the combined ratio was driven by a $586 million pre-tax increase in catastrophe losses (increase of 3.7 points), partially offset by a $72 million pre-tax increase in net favorable prior year reserve development (reduction of 0.5 points).

The current year-to-date period underwriting gain excluding net favorable prior year reserve development and catastrophe losses reflected a GAAP combined ratio of 93.2 percent, as compared to 93.6 percent in the prior year period. The improvement of 0.4 points was concentrated in Personal Insurance and reflected earned rate increases modestly outpacing loss cost trends, as well as lower non-catastrophe weather-related losses.

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2010 Annual Guidance

Travelers expects that its full year 2010 operating income per diluted share will be in the range of $5.75 to $5.95, as compared to the previously announced range of $5.20 to $5.45. This guidance includes the reported results for the first nine months of 2010 and estimates for the remainder of 2010 based on a number of assumptions, including:

·Catastrophe losses of $1.170 billion pre-tax and $765 million after-tax, or $1.58 per diluted share, for the full year which incorporates actual experience for the first nine months of 2010 of $1.027 billion pre-tax and $674 million after-tax and projects $140 million pre-tax and $90 million after-tax, or $0.20 per diluted share, for the remainder of the year;

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

·Low single digit percentage decrease in average invested assets (excluding net unrealized investment gains and losses), after taking into account dividends and share repurchases;

·Common share repurchases in a range of $4.5 billion to $5.0 billion for the full year; and

·Weighted average diluted shares of approximately 485 million.

As noted above, the company’s earnings guidance for the full year 2010 reflects actual prior year reserve development through the third quarter, but does not assume any additional prior year reserve development, favorable or unfavorable.  The company understands that the earnings estimates published by third parties may include assumed amounts of prior year reserve development for future periods. As a result, third party earnings estimates for the company may not be expressed on a basis comparable to the earnings guidance provided by the company.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with a financial supplement that is available on our website at www.travelers.com.  Travelers management will discuss the contents of this release and other relevant topics via webcast at 9 a.m. Eastern (8 a.m. Central) on Thursday, October 21, 2010.  Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the company’s website.  Following the live event, an audio playback of the webcast and the slide presentation will be available on the company’s website.

To view the slides or to listen to the webcast or the playback, visit the “Webcasts & Presentations” section of the Travelers investor relations website at http://investor.travelers.com.

About Travelers

The Travelers Companies, Inc (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business.  A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $25 billion in 2009. For more information, visit www.travelers.com.

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From time to time, Travelers may use its website as a channel of distribution of material company information. Financial and other material information regarding the company is routinely posted on and accessible at http://investor.travelers.com.  In addition, you may automatically receive email alerts and other information about Travelers by enrolling your email by visiting the “Email Alert Service” section at http://investor.travelers.com.

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 automobile and homeowners insurance sold to individuals.

* * * * *

Forward Looking Statement

This press release contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements, other than statements of historical facts, may be forward-looking statements.  Specifically, earnings guidance, statements about the Company’s share repurchase plans and statements about the potential impact of investment markets and other economic conditions on the Company’s investment portfolio and underwriting results, among others, are forward looking, and the Company may also make forward-looking statements about, among other things:

·its results of operations and financial condition (including, among other things, premium volume, premium rates, net and operating income, investment income and performance, return on equity, and expected current returns and combined ratios);

·the sufficiency of the Company’s asbestos and other reserves (including, among other things, asbestos claim payment patterns);

·the impact of emerging claims issues;

·the cost and availability of reinsurance coverage;

·catastrophe losses;

·the impact of investment, economic and underwriting market conditions; and

·strategic initiatives.

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The Company cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following:

·catastrophe losses could materially and adversely affect the Company’s results of operations, its financial position and/or liquidity, and could adversely impact the Company’s ratings, the Company’s ability to raise capital and the availability and cost of reinsurance;

·during or following a period of financial market disruption or prolonged economic downturn, the Company’s business could be materially and adversely affected;

·the Company’s investment portfolio may suffer reduced returns or material losses, including as a result of a challenging economic environment that impacts the credit of municipal or other issuers in our portfolio;

·if actual claims exceed the Company’s loss reserves, or if changes in the estimated level of loss reserves are necessary, the Company’s financial results could be materially and adversely affected;

·the Company’s business could be harmed because of its potential exposure to asbestos and environmental claims and related litigation;

·the Company is exposed to, and may face adverse developments involving, mass tort claims such as those relating to exposure to potentially harmful products or substances;

·the effects of emerging claim and coverage issues on the Company’s business are uncertain;

·the intense competition that the Company faces could harm its ability to maintain or increase its business volumes and profitability;

·the Company may not be able to collect all amounts due to it from reinsurers, and reinsurance coverage may not be available to the Company in the future at commercially reasonable rates or at all;

·the Company is exposed to credit risk in certain of its business operations;

·the Company’s businesses are heavily regulated and changes in regulation (including as a result of the adoption of financial services reform legislation) may reduce the Company’s profitability and limit its growth;

·a downgrade in the Company’s claims-paying and financial strength ratings could adversely impact the Company’s business volumes, adversely impact the Company’s ability to access the capital markets and increase the Company’s borrowing costs;

·the inability of the Company’s insurance subsidiaries to pay dividends to the Company’s holding company in sufficient amounts would harm the Company’s ability to meet its obligations and to pay future shareholder dividends;

·disruptions to the Company’s relationships with its independent agents and brokers could adversely affect the Company;

·the Company’s efforts to develop new products (including its direct to consumer initiative in Personal Insurance) or expand in targeted markets may not be successful, may create enhanced risks and may adversely impact results;

·the Company’s business success and profitability depend, in part, on effective information technology systems and on continuing to develop and implement improvements in technology;

·if the Company experiences difficulties with technology, data security and/or outsourcing relationships the Company’s ability to conduct its business could be negatively impacted;

·acquisitions and integration of acquired businesses may result in operating difficulties and other unintended consequences;

·the Company is subject to a number of risks associated with conducting business outside the United States;

·the Company could be adversely affected if its controls to ensure compliance with guidelines, policies and legal and regulatory standards are not effective;

·the Company’s businesses may be adversely affected if it is unable to hire and retain qualified employees;

·loss of or significant restriction on the use of credit scoring in the pricing and underwriting of Personal Insurance products could reduce the Company’s future profitability; and

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·the operation of the Company’s repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, catastrophe losses, other investment opportunities (including mergers and acquisitions), market conditions and other factors.

Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements.  For a more detailed discussion of these factors, see the information under the caption “Risk Factors” in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent annual report on Form 10-K and our quarterly report on Form 10-Q filed with the Securities and Exchange Commission.

*****

GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF NON-GAAP MEASURES TO GAAP MEASURES

The following measures are used by the company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis.  In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure. Reconciliations of non-GAAP measures to their most directly comparable GAAP measures also follows.

In the opinion of the company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users 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.   Internally, the company’s management uses these measures to evaluate performance against historical results, to establish financial targets on a consolidated basis and for other reasons, which are discussed below.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the company’s management.

RECONCILIATION OF OPERATING INCOME AND CERTAIN OTHER NON-GAAP MEASURES TO NET INCOME

Operating income (loss) is net income (loss) excluding the after-tax impact of net realized investment gains (losses) and discontinued operations.  Management uses operating income to analyze each segment’s performance and as a tool in making business decisions.  Financial statement users also consider operating income when analyzing the results and trends of insurance companies.  Operating earnings (loss) per share is operating income (loss) on a per common share basis.

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Reconciliation of Operating Income (Loss) less Preferred Dividends and Net Income (Loss) less Preferred Dividends to Net Income

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
($ in millions, after-tax)	2010		2009		2010		2009
Operating income, less preferred dividends	$	857	$	913	$	2,177	$	2,442
Preferred dividends	1		1		2		3
Operating income	858		914		2,179		2,445
Net realized investment gains (losses)	147		21		143		(108		)
Net income	$	1,005	$	935	$	2,322	$	2,337
Net income, less preferred dividends	$	1,004	$	934	$	2,320	$	2,334
Preferred dividends	1		1		2		3
Net income	$	1,005	$	935	$	2,322	$	2,337

	Twelve Months Ended December 31,
($ in millions; after-tax)	2009		2008			2007		2006		2005			2004
Operating income, less preferred dividends	$	3,597	$	3,191		$	4,496	$	4,195	$	2,020		$	889
Preferred dividends	3		4			4		5		6			6
Operating income	3,600		3,195			4,500		4,200		2,026			895
Net realized investment gains (losses)	22		(271		)	101		8		35			(28		)
Income from continuing operations	3,622		2,924			4,601		4,208		2,061			867
Discontinued operations	—		—			—		—		(439		)	88
Net income	$	3,622	$	2,924		$	4,601	$	4,208	$	1,622		$	955

Reconciliation of Operating Earnings per Share to Net Income per Share on a Basic and Diluted Basis

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2010		2009		2010		2009
Basic earnings per share
Operating income	$	1.83	$	1.62	$	4.44	$	4.24
Net realized investment gains (losses)	0.31		0.04		0.29		(0.19		)
Net income	$	2.14	$	1.66	$	4.73	$	4.05
Diluted earnings per share
Operating income	$	1.81	$	1.61	$	4.39	$	4.21
Net realized investment gains (losses)	0.30		0.04		0.29		(0.19		)
Net income	$	2.11	$	1.65	$	4.68	$	4.02

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Reconciliation of Operating Income by Segment to Total Operating Income

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions, after-tax)	2010			2009			2010			2009
Business Insurance	$	543		$	668		$	1,677		$	1,775
Financial, Professional & International Insurance	212			167			470			448
Personal Insurance	168			149			246			391
Total segment operating income	923			984			2,393			2,614
Interest Expense and Other	(65		)	(70		)	(214		)	(169		)
Total operating income	$	858		$	914		$	2,179		$	2,445

RECONCILIATION OF ADJUSTED SHAREHOLDERS’ EQUITY TO SHAREHOLDERS’ EQUITY AND OPERATING RETURN ON EQUITY TO RETURN ON EQUITY

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

Reconciliation of Adjusted Shareholders’ Equity to Shareholders’ Equity

	As of September 30,
($ in millions)	2010		2009
Adjusted shareholders’ equity	$	24,092	$	25,951
Net unrealized investment gains (losses), net of tax	2,990		2,236
Net realized investment gains (losses), net of tax	143		(108		)
Preferred stock	70		81
Shareholders’ equity	$	27,295	$	28,160
	As of December 31,
($ in millions)	2009		2008			2007		2006		2005			2004
Adjusted shareholders’ equity	$	25,453	$	25,645		$	25,783	$	24,545	$	22,227		$	20,087
Net unrealized investment gains (losses), net of tax	1,861		(144		)	620		453		327			866
Net realized investment gains (losses), net of tax	22		(271		)	101		8		35			(28		)
Preferred stock	79		89			112		129		153			188
Discontinued operations	—		—			—		—		(439		)	88
Shareholders’ equity	$	27,415	$	25,319		$	26,616	$	25,135	$	22,303		$	21,201

Return on equity is the ratio of annualized net income (loss) less preferred dividends to average shareholders’ equity for the periods presented.  Operating return on equity is the ratio of annualized operating income (loss) less preferred dividends to adjusted average shareholders’ equity for the periods presented.  In the opinion of the company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management.

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Calculation of Operating Return on Equity and Return on Equity

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, after-tax)	2010			2009			2010			2009
Annualized operating income, less preferred dividends	$	3,429		$	3,653		$	2,902		$	3,258
Adjusted average shareholders’ equity	23,960			25,897			24,424			25,834
Operating return on equity	14.3		%	14.1		%	11.9		%	12.6		%
Annualized net income, less preferred dividends	$	4,015		$	3,738		$	3,093		$	3,113
Average shareholders’ equity	26,719			27,458			26,696			26,634
Return on equity	15.0		%	13.6		%	11.6		%	11.7		%

Average annual operating return on equity over a period is the ratio of:

a) the sum of operating income (loss) less preferred dividends for the periods presented to

b) the sum of: 1) the sum of the adjusted average shareholders’ equity for all full years in the period presented, and 2) for partial years in the period presented, the number of quarters in that partial year divided by four, multiplied by the adjusted average shareholders’ equity of the partial year.

Calculation of Average Annual Operating Return on Equity from January 1, 2005 through September 30, 2010

			Nine Months Ended
			September 30,						Twelve Months Ended December 31,
($ in millions)			2010			2009			2009			2008			2007			2006			2005
Operating income, less preferred dividends			$	2,177		$	2,442		$	3,597		$	3,191		$	4,496		$	4,195		$	2,020
Operating income, less preferred dividends - annualized			2,902			3,258
Adjusted average shareholders’ equity			24,424			25,834			25,774			25,668			25,350			23,381			21,118
Operating return on equity			11.9		%	12.6		%	14.0		%	12.4		%	17.7		%	17.9		%	9.6		%
Average annual operating return on equity for the period January 1, 2005 through September 30, 2010	14.1	%

RECONCILIATION OF PRE-TAX UNDERWRITING GAIN (LOSS) EXCLUDING CERTAIN ITEMS TO NET INCOME

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.  In the opinion of the company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business.  This measure is used to assess each segment’s business performance and as a tool in making business decisions.  Pre-tax underwriting gain (loss), excluding the impact of catastrophes, net favorable (unfavorable) prior year loss reserve development and the re-estimation of current year loss ratios, is the underwriting gain (loss) adjusted to exclude claims, claim adjustment expenses, and reinstatement premiums and assessments related to catastrophes and loss reserve development related to time periods prior to the current quarter.  In the opinion of the company’s management, this measure is meaningful to users of the financial statements to understand the company’s periodic earnings and the variability of earnings caused by the unpredictable nature (i.e., the timing and amount) of catastrophes and loss reserve development.

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

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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 to users of the financial statements to understand the company’s periodic earnings and the variability in periodic earnings caused by the unpredictable nature of catastrophes.

Net favorable (unfavorable) prior year 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. Re-estimation of current year loss ratios is loss reserve development related to time periods in the current year that are prior to the current quarter.  Loss reserve development may be related to one or more prior years or the current year.  In the opinion of the company’s management, a discussion of loss reserve development is meaningful to users of the financial statements 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.

Reconciliation of Pre-tax Underwriting Gain (Loss) (Excluding the Impact of Catastrophes, Net Favorable (Unfavorable) Prior Year Loss Reserve Development and Re-Estimation of Current year Loss Ratios) to Net Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions; after-tax except as noted)	2010			2009			2010			2009
Pre-tax underwriting gain excluding the impact of catastrophes, net favorable prior year loss reserve development and re-estimation of current year loss ratios	$	360		$	302		$	978		$	931
Pre-tax impact of catastrophes	(117		)	(158		)	(1,027		)	(441		)
Pre-tax impact of net favorable prior year loss reserve development	222			309			900			828
Pre-tax impact of re-estimation of current year loss ratios	11			71			—			—
Pre-tax underwriting gain	476			524			851			1,318
Income tax expense on underwriting results	174			186			350			421
Underwriting gain	302			338			501			897
Net investment income	597			616			1,824			1,637
Other, including interest expense	(41		)	(40		)	(146		)	(89		)
Operating income	858			914			2,179			2,445
Net realized investment gains (losses)	147			21			143			(108		)
Net income	$	1,005		$	935		$	2,322		$	2,337

ADJUSTMENT TO THE GAAP COMBINED RATIO FOR THE INCREMENTAL IMPACT OF THE DIRECT TO CONSUMER INITIATIVE

GAAP combined ratio is the sum of the loss and loss adjustment expense ratio (loss and LAE ratio) and the underwriting expense ratio.  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.

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Calculation of the GAAP Combined Ratio

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, pre-tax)	2010			2009			2010			2009
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$	3,213		$	3,123		$	10,020		$	9,648
Less:
Policyholder dividends	9			7			24			21
Allocated fee income	23			24			90			86
Loss ratio numerator	$	3,181		$	3,092		$	9,906		$	9,541
Underwriting expense ratio
Amortization of deferred acquisition costs	$	966		$	967		$	2,845		$	2,864
General and administrative expenses	837			889			2,516			2,510
Less:
G&A included in Interest Expense and Other	6			11			21			31
Allocated fee income	41			48			129			148
Billing and policy fees	27			26			79			80
Expense ratio numerator	$	1,729		$	1,771		$	5,132		$	5,115
Earned premium	$	5,422		$	5,421		$	15,992		$	16,075
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	58.7		%	57.0		%	61.9		%	59.4		%
Underwriting expense ratio	31.9		%	32.7		%	32.1		%	31.8		%
Combined ratio	90.6		%	89.7		%	94.0		%	91.2		%

(1)For purposes of computing GAAP ratios, billing and policy fees (which are a component of other revenues) are allocated as a reduction of other underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expense and other underwriting expenses.

GAAP combined ratio excluding the incremental impact of the 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.

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Reconciliation of the Consolidated and Personal Insurance GAAP Combined Ratios (Excluding the Incremental Impact of the Direct to Consumer Initiative) to the Consolidated and Personal Insurance GAAP Combined Ratios

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2010		2009		2010		2009
Personal Insurance
Combined ratio excluding incremental impact of direct to consumer initiative	90.6	%	93.3	%	98.4	%	94.3	%
Incremental impact of direct to consumer initiative	2.5	%	1.9	%	2.1	%	1.7	%
Combined ratio	93.1	%	95.2	%	100.5	%	96.0	%
Consolidated
Combined ratio excluding incremental impact of direct to consumer initiative	89.7	%	89.1	%	93.3	%	90.6	%
Incremental impact of direct to consumer initiative	0.9	%	0.6	%	0.7	%	0.6	%
Combined ratio	90.6	%	89.7	%	94.0	%	91.2	%

ADJUSTMENT TO NET WRITTEN PREMIUMS FOR THE IMPACT OF CHANGES IN FOREIGN EXCHANGE RATES

Adjusting for the impact of changes in foreign exchange rates allows the effect of foreign exchange rate differences to be isolated in the analysis of changes in various financial statement line items that are translated from a local currency to the company’s reporting currency, U.S. dollars.  The impact is determined by assuming constant foreign exchange rates between periods as illustrated in the reconciliation below.  In the opinion of the company’s management, this is useful in an analysis of the results of the FP&II segment.

Reconciliation of the Impact of Changes in Foreign Exchange Rates on FP&II Net Written Premiums to FP&II Net Written Premiums

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
($ in millions)	2010			2009		Change		2010		2009		Change
Net written premium - holding foreign exchange rates constant	$	815		$	870	(6	)%	$	2,356	$	2,347	—	%
Impact of changes in foreign exchange rates	(7		)					22
Net written premium	$	808		$	870	(7	)%	$	2,378	$	2,347	1	%

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO BOOK VALUE PER SHARE AND SHAREHOLDERS’ EQUITY

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.  Tangible book value per share is adjusted book value per share excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding.  In the opinion of the company’s management, tangible book value per share is useful in an analysis of a property casualty company’s book value on a nominal basis

21

as it removes certain effects of purchase accounting (i.e., goodwill and other intangible assets), in addition to the effect of changing prices on invested assets.

Reconciliation of Tangible and Adjusted Common Shareholders’ Equity to Shareholders’ Equity

	As of
	September 30,			December 31,			September 30,
($ in millions; except per share amounts)	2010			2009			2009
Tangible common shareholders’ equity	$	20,403		$	21,587		$	21,935
Goodwill	3,365			3,365			3,365
Other intangible assets	522			588			612
Less: Impact of deferred tax on other intangible assets	(55		)	(65		)	(69		)
Adjusted common shareholders’ equity	24,235			25,475			25,843
Net unrealized investment gains, net of tax	2,990			1,861			2,236
Common shareholders’ equity	27,225			27,336			28,079
Preferred stock	70			79			81
Shareholders’ equity	$	27,295		$	27,415		$	28,160
Common shares outstanding	460.5			520.3			547.9
Tangible book value per share	$	44.30		$	41.49		$	40.03
Adjusted book value per share	52.62			48.96			47.16
Book value per share	59.11			52.54			51.24

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO TOTAL CAPITALIZATION

Total capitalization is the sum of total shareholders’ equity and debt.  Debt-to-capital ratio excluding net unrealized gain (loss) on investments is the ratio of debt to total capitalization 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 financial leverage.

Reconciliation of Total Debt and Equity Excluding Net Unrealized Investment Gain (Loss) to Total Capital

	As of
	September 30,			December 31,			September 30,
($ in millions)	2010			2009			2009
Debt	$	6,252		$	6,527		$	6,528
Shareholders’ equity	27,295			27,415			28,160
Total capital	33,547			33,942			34,688
Net unrealized investment gains, net of tax	2,990			1,861			2,236
Total capital excluding net unrealized gain on investments	$	30,557		$	32,081		$	32,452
Debt-to-capital ratio	18.6		%	19.2		%	18.8		%
Debt-to-capital ratio excluding net unrealized investment gains, net of tax	20.5		%	20.3		%	20.1		%

OTHER DEFINITIONS

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.  These are GAAP measures.

For the Business Insurance and Financial, Professional and International Insurance segments, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes. 

22

For the Personal Insurance segment, retention is the ratio of the expected number of renewal policies that will be retained throughout the annual policy period to the number of available renewal base policies.  For all of the segments, renewal rate change represents the estimated change in average premium on policies that renew, excluding exposure changes.  Exposure is the amount of change in premium on policies that renew attributable to the change in portfolio risk.  Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes.  New business volume is the amount of written premium related to new policyholders and additional products to existing policyholders.  These are operating statistics, which are subject to change based upon a number of factors, including changes in actuarial estimates.

An insurance company’s statutory surplus represents the excess of its assets over its liabilities in accordance with the statutory accounting practices required by state laws and regulations.

Holding company liquidity is the total cash, short-term invested assets and other readily marketable securities held by the holding company.  Holding company liquidity requirements primarily include shareholder dividends and debt service.

For a glossary of other financial terms used in this press release, we refer you to the company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

###

Contacts
Media:	Institutional Investors:	Individual Investors:
Shane Boyd	Gabriella Nawi	Marc Parr
917.778.6267, or	917.778.6844, or	860.277.0779
Jennifer Wislocki	Andrew Hersom
860.277.7458	860.277.0902

23

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - Third 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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,005		$	2,337		$	2,322
Net income per share:
Basic	$	1.12		$	1.27		$	1.66		$	2.39		$	1.26		$	1.37		$	2.14		$	4.05		$	4.73
Diluted	$	1.11		$	1.27		$	1.65		$	2.36		$	1.25		$	1.35		$	2.11		$	4.02		$	4.68
Operating income	$	799		$	732		$	914		$	1,155		$	631		$	690		$	858		$	2,445		$	2,179
Operating income per share:
Basic	$	1.36		$	1.26		$	1.62		$	2.15		$	1.23		$	1.41		$	1.83		$	4.24		$	4.44
Diluted	$	1.34		$	1.25		$	1.61		$	2.12		$	1.22		$	1.39		$	1.81		$	4.21		$	4.39
Return on equity	10.2		%	11.1		%	13.6		%	18.5		%	9.6		%	10.1		%	15.0		%	11.7		%	11.6		%
Operating return on equity	12.4		%	11.3		%	14.1		%	18.0		%	10.1		%	11.4		%	14.3		%	12.6		%	11.9		%
Total assets, at period end	$	110,313		$	111,135		$	112,407		$	109,560		$	108,696		$	107,023		$	108,154		$	112,407		$	108,154
Total equity, at period end	$	26,497		$	26,920		$	28,160		$	27,415		$	26,671		$	26,286		$	27,295		$	28,160		$	27,295
Book value per share, at period end	$	45.12		$	47.29		$	51.24		$	52.54		$	53.50		$	55.67		$	59.11		$	51.24		$	59.11
Less: Net unrealized investment gains, net of tax	0.93			1.53			4.08			3.58			3.90			5.05			6.49			4.08			6.49
Adjusted book value per share, at period end	$	44.19		$	45.76		$	47.16		$	48.96		$	49.60		$	50.62		$	52.62		$	47.16		$	52.62
Weighted average number of common shares outstanding (basic)	584.6			575.8			558.4			532.8			508.4			484.5			465.9			572.8			486.1
Weighted average number of common shares outstanding and common stock equivalents (diluted)	590.4			579.8			564.1			540.1			515.1			490.8			472.0			577.5			492.3
Common shares outstanding at period end	585.3			567.5			547.9			520.3			497.0			470.8			460.5			547.9			460.5
Common stock dividends declared	$	177		$	172		$	166		$	175		$	168		$	173		$	169		$	515		$	510
Common stock repurchased:
Under repurchase authorization (1)
Shares	—			18.5			20.8			30.1			27.0			28.0			11.8			39.3			66.8
Cost	$	—		$	750		$	1,000		$	1,550		$	1,400		$	1,400		$	600		$	1,750		$	3,400
Other
Shares	0.7			0.3			—			0.4			0.8			0.2			—			1.0			1.0
Cost	$	27		$	13		$	3		$	22		$	40		$	14		$	—		$	43		$	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			3Q		3Q			3Q
	2009			2009		2009		2009		2010		2010			2010		2009			2010
Net income
Operating income	$	799		$	732	$	914	$	1,155	$	631	$	690		$	858	$	2,445		$	2,179
Net realized investment gains (losses)	(137		)	8		21		130		16		(20		)	147		(108		)	143
Net income	$	662		$	740	$	935	$	1,285	$	647	$	670		$	1,005	$	2,337		$	2,322
Basic earnings per share
Operating income	$	1.36		$	1.26	$	1.62	$	2.15	$	1.23	$	1.41		$	1.83	$	4.24		$	4.44
Net realized investment gains (losses)	(0.24		)	0.01		0.04		0.24		0.03		(0.04		)	0.31		(0.19		)	0.29
Net income	$	1.12		$	1.27	$	1.66	$	2.39	$	1.26	$	1.37		$	2.14	$	4.05		$	4.73
Diluted earnings per share
Operating income	$	1.34		$	1.25	$	1.61	$	2.12	$	1.22	$	1.39		$	1.81	$	4.21		$	4.39
Net realized investment gains (losses)	(0.23		)	0.02		0.04		0.24		0.03		(0.04		)	0.30		(0.19		)	0.29
Net income	$	1.11		$	1.27	$	1.65	$	2.36	$	1.25	$	1.35		$	2.11	$	4.02		$	4.68

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Basic
Net income, as reported	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,005		$	2,337		$	2,322
Preferred stock dividends	(1		)	(1		)	(1		)	—			(1		)	—			(1		)	(3		)	(2		)
Participating share-based awards - allocated income	(5		)	(5		)	(6		)	(10		)	(5		)	(5		)	(8		)	(16		)	(18		)
Net income available to common shareholders - basic	$	656		$	734		$	928		$	1,275		$	641		$	665		$	996		$	2,318		$	2,302
Diluted
Net income available to common shareholders - basic	$	656		$	734		$	928		$	1,275		$	641		$	665		$	996		$	2,318		$	2,302
Effect of dilutive securities:
Convertible preferred stock	1			1			1			—			1			—			1			3			2
Performance shares	—			—			1			1			—			—			1			1			1
Zero coupon convertible notes	1			—			—			—			—			—			—			1			—
Net income available to common shareholders - diluted	$	658		$	735		$	930		$	1,276		$	642		$	665		$	998		$	2,323		$	2,305
Common Shares
Basic
Weighted average shares outstanding	584.6			575.8			558.4			532.8			508.4			484.5			465.9			572.8			486.1
Diluted
Weighted average shares outstanding	584.6			575.8			558.4			532.8			508.4			484.5			465.9			572.8			486.1
Weighted average effects of dilutive securities:
Convertible preferred stock	2.2			2.1			2.0			1.9			1.9			1.8			1.7			2.1			1.8
Stock options and performance shares	2.0			1.9			3.7			5.4			4.8			4.5			4.4			2.1			4.4
Zero coupon convertible notes	1.6			—			—			—			—			—			—			0.5			—
Diluted weighted average shares outstanding	590.4			579.8			564.1			540.1			515.1			490.8			472.0			577.5			492.3

(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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Revenues
Premiums	$	5,301		$	5,353		$	5,421		$	5,343		$	5,230		$	5,340		$	5,422		$	16,075		$	15,992
Net investment income	542			658			763			813			753			762			735			1,963			2,250
Fee income	73			89			72			72			79			76			64			234			219
Net realized investment gains (losses)	(214		)	13			29			189			25			(31		)	226			(172		)	220
Other revenues	33			49			42			39			32			32			35			124			99
Total revenues	5,735			6,162			6,327			6,456			6,119			6,179			6,482			18,224			18,780
Claims and expenses
Claims and claim adjustment expenses	3,190			3,335			3,123			2,760			3,388			3,419			3,213			9,648			10,020
Amortization of deferred acquisition costs	944			953			967			949			929			950			966			2,864			2,845
General and administrative expenses (1)	782			839			889			856			847			832			837			2,510			2,516
Interest expense	92			94			98			98			98			97			95			284			290
Total claims and expenses	5,008			5,221			5,077			4,663			5,262			5,298			5,111			15,306			15,671
Income before income taxes	727			941			1,250			1,793			857			881			1,371			2,918			3,109
Income tax expense	65			201			315			508			210			211			366			581			787
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,005		$	2,337		$	2,322
Net realized investment gains (losses)
Other-than-temporary impairment losses:
Total gains (losses)	$	(184	)	$	(75	)	$	(43	)	$	(21	)	$	(1	)	$	2		$	8		$	(302	)	$	9
Portion recognized in accumulated other changes in equity from nonowner sources	—			45			24			(4		)	(9		)	(6		)	(14		)	69			(29		)
Other-than-temporary impairment losses	(184		)	(30		)	(19		)	(25		)	(10		)	(4		)	(6		)	(233		)	(20		)
Other net realized investment gains (losses)	(30		)	43			48			214			35			(27		)	232			61			240
Net realized investment gains (losses)	$	(214	)	$	13		$	29		$	189		$	25		$	(31	)	$	226		$	(172	)	$	220
Other statistics
Effective tax rate on net investment income	12.6		%	16.7		%	19.2		%	19.8		%	18.9		%	19.1		%	18.8		%	16.6		%	18.9		%
Net investment income (after-tax)	$	474		$	547		$	616		$	653		$	610		$	617		$	597		$	1,637		$	1,824
Catastrophes, net of reinsurance:
Pre-tax	$	83		$	200		$	158		$	16		$	471		$	439		$	117		$	441		$	1,027
After-tax	$	54		$	130		$	103		$	10		$	312		$	285		$	77		$	287		$	674

(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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Underwriting gain	$	353		$	206		$	338		$	540		$	80		$	119		$	302		$	897		$	501
Net investment income	474			547			616			653			610			617			597			1,637			1,824
Other, including interest expense	(28		)	(21		)	(40		)	(38		)	(59		)	(46		)	(41		)	(89		)	(146		)
Operating income	799			732			914			1,155			631			690			858			2,445			2,179
Net realized investment gains (losses)	(137		)	8			21			130			16			(20		)	147			(108		)	143
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,005		$	2,337		$	2,322
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	59.7		%	61.4		%	57.0		%	51.1		%	64.0		%	63.3		%	58.7		%	59.4		%	61.9		%
Underwriting expense ratio (3)	30.9		%	31.8		%	32.7		%	32.3		%	32.4		%	31.9		%	31.9		%	31.8		%	32.1		%
Combined ratio	90.6		%	93.2		%	89.7		%	83.4		%	96.4		%	95.2		%	90.6		%	91.2		%	94.0		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	90.1		%	92.6		%	89.1		%	82.9		%	95.8		%	94.6		%	89.7		%	90.6		%	93.3		%
Impact of catastrophes on combined ratio	1.6		%	3.7		%	2.9		%	0.3		%	9.0		%	8.2		%	2.2		%	2.7		%	6.4		%
Impact of prior year reserve development on combined ratio	-4.9		%	-4.9		%	-5.7		%	-9.4		%	-5.6		%	-7.2		%	-4.1		%	-5.1		%	-5.6		%

(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
	2009		2009		2009		2009		2010		2010		2010		2009		2010
Billing and policy fees	$	27	$	27	$	26	$	27	$	27	$	25	$	27	$	80	$	79
Fee income:
Loss and loss adjustment expenses	$	20	$	42	$	24	$	28	$	36	$	31	$	23	$	86	$	90
Underwriting expenses	53		47		48		44		43		45		41		148		129
Total fee income	$	73	$	89	$	72	$	72	$	79	$	76	$	64	$	234	$	219

(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 (0.5) points for 1Q 2009, 2Q 2009, and YTD 3Q 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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Revenues
Premiums	$	5,301		$	5,353		$	5,421		$	5,343		$	5,230		$	5,340		$	5,422		$	16,075		$	15,992
Net investment income	542			658			763			813			753			762			735			1,963			2,250
Fee income	73			89			72			72			79			76			64			234			219
Other revenues	33			49			42			39			32			32			35			124			99
Total revenues	5,949			6,149			6,298			6,267			6,094			6,210			6,256			18,396			18,560
Claims and expenses
Claims and claim adjustment expenses	3,190			3,335			3,123			2,760			3,388			3,419			3,213			9,648			10,020
Amortization of deferred acquisition costs	944			953			967			949			929			950			966			2,864			2,845
General and administrative expenses	782			839			889			856			847			832			837			2,510			2,516
Interest expense	92			94			98			98			98			97			95			284			290
Total claims and expenses	5,008			5,221			5,077			4,663			5,262			5,298			5,111			15,306			15,671
Operating income before income taxes	941			928			1,221			1,604			832			912			1,145			3,090			2,889
Income tax expense	142			196			307			449			201			222			287			645			710
Operating income	$	799		$	732		$	914		$	1,155		$	631		$	690		$	858		$	2,445		$	2,179
Other statistics
Effective tax rate on net investment income	12.6		%	16.7		%	19.2		%	19.8		%	18.9		%	19.1		%	18.8		%	16.6		%	18.9		%
Net investment income (after-tax)	$	474		$	547		$	616		$	653		$	610		$	617		$	597		$	1,637		$	1,824
Catastrophes, net of reinsurance:
Pre-tax	$	83		$	200		$	158		$	16		$	471		$	439		$	117		$	441		$	1,027
After-tax	$	54		$	130		$	103		$	10		$	312		$	285		$	77		$	287		$	674

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
	2009			2009		2009			2009			2010			2010			2010			2009		2010
Statutory underwriting
Gross written premiums	$	5,863		$	5,969	$	5,935		$	5,518		$	5,803		$	5,974		$	6,004		$	17,767	$	17,781
Net written premiums	$	5,203		$	5,605	$	5,340		$	5,188		$	5,251		$	5,688		$	5,462		$	16,148	$	16,401
Net earned premiums	$	5,301		$	5,353	$	5,421		$	5,343		$	5,230		$	5,340		$	5,422		$	16,075	$	15,992
Losses and loss adjustment expenses	3,159			3,300		3,090			2,736			3,349			3,382			3,185			9,549		9,916
Underwriting expenses	1,710			1,724		1,770			1,658			1,708			1,757			1,766			5,204		5,231
Statutory underwriting gain	432			329		561			949			173			201			471			1,322		845
Policyholder dividends	8			6		7			4			8			7			9			21		24
Statutory underwriting gain after policyholder dividends	$	424		$	323	$	554		$	945		$	165		$	194		$	462		$	1,301	$	821
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	41,156		$	41,495	$	41,357		$	40,923		$	40,849		$	40,766		$	40,640		$	41,357	$	40,640
Increase (decrease) in reserves	$	(151	)	$	339	$	(138	)	$	(434	)	$	(74	)	$	(83	)	$	(126	)	$	50	$	(283	)
Statutory surplus	$	21,561		$	21,267	$	22,050		$	23,195		$	21,607		$	21,077		$	20,868		$	22,050	$	20,868
Net written premiums/surplus (1)	1.01:1			1.02:1		0.98:1			0.92:1			0.99:1			1.02:1			1.03:1			0.98:1		1.03:1

(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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Written premiums
Gross	$	5,863		$	5,969		$	5,935		$	5,518		$	5,803		$	5,974		$	6,004		$	17,767		$	17,781
Ceded	(660		)	(364		)	(595		)	(330		)	(552		)	(286		)	(542		)	(1,619		)	(1,380		)
Net	$	5,203		$	5,605		$	5,340		$	5,188		$	5,251		$	5,688		$	5,462		$	16,148		$	16,401
Earned premiums
Gross	$	5,808		$	5,862		$	5,915		$	5,835		$	5,697		$	5,770		$	5,864		$	17,585		$	17,331
Ceded	(507		)	(509		)	(494		)	(492		)	(467		)	(430		)	(442		)	(1,510		)	(1,339		)
Net	$	5,301		$	5,353		$	5,421		$	5,343		$	5,230		$	5,340		$	5,422		$	16,075		$	15,992

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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Revenues
Premiums	$	2,757		$	2,770		$	2,768		$	2,673		$	2,628		$	2,663		$	2,736		$	8,295		$	8,027
Net investment income	355			451			529			567			528			537			514			1,335			1,579
Fee income	73			89			72			72			79			76			64			234			219
Other revenues	6			12			14			10			6			7			10			32			23
Total revenues	3,191			3,322			3,383			3,322			3,241			3,283			3,324			9,896			9,848
Claims and expenses
Claims and claim adjustment expenses	1,618			1,644			1,508			1,267			1,583			1,621			1,683			4,770			4,887
Amortization of deferred acquisition costs	449			450			448			428			425			439			448			1,347			1,312
General and administrative expenses (1)	467			493			517			489			481			469			463			1,477			1,413
Total claims and expenses	2,534			2,587			2,473			2,184			2,489			2,529			2,594			7,594			7,612
Operating income before federal income taxes	657			735			910			1,138			752			754			730			2,302			2,236
Income taxes	110			175			242			323			185			187			187			527			559
Operating income	$	547		$	560		$	668		$	815		$	567		$	567		$	543		$	1,775		$	1,677
Other statistics
Effective tax rate on net investment income	10.8		%	15.9		%	18.8		%	19.7		%	18.6		%	18.8		%	18.5		%	15.7		%	18.6		%
Net investment income (after-tax)	$	317		$	379		$	429		$	456		$	430		$	435		$	420		$	1,125		$	1,285
Catastrophes, net of reinsurance:
Pre-tax	$	12		$	59		$	86		$	19		$	135		$	179		$	53		$	157		$	367
After-tax	$	8		$	38		$	56		$	12		$	88		$	116		$	35		$	102		$	239

(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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Underwriting gain	$	226		$	172		$	228		$	351		$	132		$	127		$	116		$	626		$	375
Net investment income	317			379			429			456			430			435			420			1,125			1,285
Other	4			9			11			8			5			5			7			24			17
Operating income	$	547		$	560		$	668		$	815		$	567		$	567		$	543		$	1,775		$	1,677
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	57.8		%	57.6		%	53.5		%	46.3		%	58.7		%	59.5		%	60.5		%	56.3		%	59.6		%
Underwriting expense ratio (3)	31.2		%	32.2		%	33.0		%	32.5		%	32.7		%	32.3		%	31.6		%	32.1		%	32.2		%
Combined ratio	89.0		%	89.8		%	86.5		%	78.8		%	91.4		%	91.8		%	92.1		%	88.4		%	91.8		%
Impact of catastrophes on combined ratio	0.4		%	2.1		%	3.1		%	0.7		%	5.1		%	6.7		%	2.0		%	1.9		%	4.6		%
Impact of prior year reserve development on combined ratio	-6.6		%	-7.8		%	-9.5		%	-13.6		%	-9.2		%	-11.3		%	-3.8		%	-8.0		%	-8.1		%

(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
	2009		2009		2009		2009		2010		2010		2010		2009		2010
Billing and policy fees	$	4	$	4	$	4	$	4	$	4	$	4	$	5	$	12	$	13
Fee income:
Loss and loss adjustment expenses	$	20	$	42	$	24	$	28	$	36	$	31	$	23	$	86	$	90
Underwriting expenses	53		47		48		44		43		45		41		148		129
Total fee income	$	73	$	89	$	72	$	72	$	79	$	76	$	64	$	234	$	219

(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 (0.5) points for 1Q 2009, 2Q 2009, and YTD 3Q 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		3Q		3Q		3Q
	2009		2009		2009		2009		2010		2010		2010		2009		2010
Statutory underwriting
Gross written premiums	$	3,294	$	3,046	$	3,029	$	2,729	$	3,118	$	2,996	$	3,027	$	9,369	$	9,141
Net written premiums	$	2,963	$	2,813	$	2,611	$	2,515	$	2,834	$	2,795	$	2,651	$	8,387	$	8,280
Net earned premiums	$	2,757	$	2,770	$	2,768	$	2,673	$	2,628	$	2,663	$	2,736	$	8,295	$	8,027
Losses and loss adjustment expenses	1,592		1,603		1,479		1,240		1,547		1,586		1,659		4,674		4,792
Underwriting expenses	903		877		892		820		866		869		867		2,672		2,602
Statutory underwriting gain	262		290		397		613		215		208		210		949		633
Policyholder dividends	4		4		4		3		4		6		5		12		15
Statutory underwriting gain after policyholder dividends	$	258	$	286	$	393	$	610	$	211	$	202	$	205	$	937	$	618

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
	2009			2009		2009		2009		2010		2010		2010		2009			2010
Net written premiums by market
Select Accounts	$	731		$	732	$	655	$	638	$	702	$	716	$	664	$	2,118		$	2,082
Commercial Accounts	710			564		609		610		706		581		655		1,883			1,942
National Accounts	259			227		197		219		226		194		173		683			593
Industry-Focused Underwriting	617			581		564		517		569		584		590		1,762			1,743
Target Risk Underwriting	422			458		360		328		412		469		342		1,240			1,223
Specialized Distribution	222			247		221		199		215		247		222		690			684
Total core	2,961			2,809		2,606		2,511		2,830		2,791		2,646		8,376			8,267
Business Insurance other	2			4		5		4		4		4		5		11			13
Total	$	2,963		$	2,813	$	2,611	$	2,515	$	2,834	$	2,795	$	2,651	$	8,387		$	8,280
Net written premiums by product line
Commercial multi-peril	$	789		$	730	$	682	$	732	$	784	$	752	$	728	$	2,201		$	2,264
Workers’ compensation	748			593		587		558		725		600		635		1,928			1,960
Commercial automobile	485			497		498		447		483		492		494		1,480			1,469
Property	463			507		401		356		430		493		360		1,371			1,283
General liability	479			486		443		421		412		458		434		1,408			1,304
Other	(1		)	—		—		1		—		—		—		(1		)	—
Total	$	2,963		$	2,813	$	2,611	$	2,515	$	2,834	$	2,795	$	2,651	$	8,387		$	8,280
National accounts
Additions to claim volume under administration (1)	$	594		$	452	$	403	$	454	$	536	$	399	$	348	$	1,449		$	1,283
Written fees	$	85		$	70	$	65	$	63	$	74	$	64	$	57	$	220		$	195

(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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Revenues
Premiums	$	801		$	810		$	861		$	861		$	824		$	855		$	820		$	2,472		$	2,499
Net investment income	104			107			118			123			111			110			110			329			331
Other revenues	6			7			7			7			6			7			7			20			20
Total revenues	911			924			986			991			941			972			937			2,821			2,850
Claims and expenses
Claims and claim adjustment expenses	442			442			463			400			516			414			350			1,347			1,280
Amortization of deferred acquisition costs	146			151			162			163			153			153			154			459			460
General and administrative expenses (1)	138			146			141			154			149			148			153			425			450
Total claims and expenses	726			739			766			717			818			715			657			2,231			2,190
Operating income before federal income taxes	185			185			220			274			123			257			280			590			660
Income taxes	37			52			53			80			37			85			68			142			190
Operating income	$	148		$	133		$	167		$	194		$	86		$	172		$	212		$	448		$	470
Other statistics
Effective tax rate on net investment income	19.4		%	20.9		%	21.7		%	20.8		%	21.0		%	20.7		%	20.6		%	20.7		%	20.8		%
Net investment income (after-tax)	$	84		$	84		$	93		$	97		$	87		$	89		$	86		$	261		$	262
Catastrophes, net of reinsurance (2):
Pre-tax	$	—		$	2		$	4		$	(3	)	$	86		$	3		$	(2	)	$	6		$	87
After-tax	$	—		$	1		$	3		$	(2	)	$	62		$	2		$	(2	)	$	4		$	62

(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 and 3Q 2010 “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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Underwriting gain (loss)	$	60		$	44		$	69		$	93		$	(5	)	$	79		$	121		$	173		$	195
Net investment income	84			84			93			97			87			89			86			261			262
Other	4			5			5			4			4			4			5			14			13
Operating income	$	148		$	133		$	167		$	194		$	86		$	172		$	212		$	448		$	470
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	54.7		%	54.4		%	53.3		%	46.3		%	62.3		%	48.1		%	42.2		%	54.1		%	50.8		%
Underwriting expense ratio (2)	35.5		%	36.5		%	35.4		%	36.8		%	36.6		%	35.2		%	37.4		%	35.8		%	36.4		%
Combined ratio	90.2		%	90.9		%	88.7		%	83.1		%	98.9		%	83.3		%	79.6		%	89.9		%	87.2		%
Impact of catastrophes on combined ratio	0.0		%	0.2		%	0.5		%	-0.3		%	10.4		%	0.4		%	-0.3		%	0.2		%	3.4		%
Impact of prior year reserve development on combined ratio	-1.4		%	-1.4		%	-2.9		%	-13.9		%	-4.2		%	-8.4		%	-11.8		%	-1.9		%	-8.1		%

(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 (0.0) for 1Q 2009 and YTD 3Q 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		3Q		3Q		3Q
	2009		2009		2009		2009		2010			2010		2010		2009		2010
Statutory underwriting
Gross written premiums	$	842	$	975	$	918	$	978	$	898		$	915	$	852	$	2,735	$	2,665
Net written premiums	$	563	$	914	$	870	$	938	$	681		$	889	$	808	$	2,347	$	2,378
Net earned premiums	$	801	$	810	$	861	$	861	$	824		$	855	$	820	$	2,472	$	2,499
Losses and loss adjustment expenses	437		448		459		403		513			412		346		1,344		1,271
Underwriting expenses	286		298		288		301		308			303		291		872		902
Statutory underwriting gain	78		64		114		157		3			140		183		256		326
Policyholder dividends	4		2		3		1		4			1		4		9		9
Statutory underwriting gain (loss) after policyholder dividends	$	74	$	62	$	111	$	156	$	(1	)	$	139	$	179	$	247	$	317

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
	2009		2009		2009		2009		2010		2010		2010		2009		2010
Net written premiums by market
Bond & Financial Products	$	334	$	558	$	574	$	574	$	362	$	559	$	547	$	1,466	$	1,468
International	229		356		296		364		319		330		261		881		910
Total	$	563	$	914	$	870	$	938	$	681	$	889	$	808	$	2,347	$	2,378
Net written premiums by product line
General liability	$	129	$	256	$	252	$	269	$	132	$	232	$	242	$	637	$	606
Fidelity & surety	170		265		291		274		194		292		273		726		759
International	229		356		296		364		319		330		261		881		910
Other	35		37		31		31		36		35		32		103		103
Total	$	563	$	914	$	870	$	938	$	681	$	889	$	808	$	2,347	$	2,378

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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Revenues
Premiums	$	1,743		$	1,773		$	1,792		$	1,809		$	1,778		$	1,822		$	1,866		$	5,308		$	5,466
Net investment income	83			100			116			123			114			115			111			299			340
Other revenues	21			21			20			22			20			18			18			62			56
Total revenues	1,847			1,894			1,928			1,954			1,912			1,955			1,995			5,669			5,862
Claims and expenses
Claims and claim adjustment expenses	1,130			1,249			1,152			1,093			1,289			1,384			1,180			3,531			3,853
Amortization of deferred acquisition costs	349			352			357			358			351			358			364			1,058			1,073
General and administrative expenses (1)	170			187			220			207			207			210			215			577			632
Total claims and expenses	1,649			1,788			1,729			1,658			1,847			1,952			1,759			5,166			5,558
Operating income before federal income taxes	198			106			199			296			65			3			236			503			304
Income taxes	44			18			50			86			6			(16		)	68			112			58
Operating income	$	154		$	88		$	149		$	210		$	59		$	19		$	168		$	391		$	246
Other statistics
Effective tax rate on net investment income	12.0		%	16.1		%	18.7		%	19.5		%	18.6		%	18.7		%	18.5		%	16.0		%	18.6		%
Net investment income (after-tax)	$	73		$	84		$	94		$	100		$	93		$	93		$	91		$	251		$	277
Catastrophes, net of reinsurance:
Pre-tax	$	71		$	139		$	68		$	—		$	250		$	257		$	66		$	278		$	573
After-tax	$	46		$	91		$	44		$	—		$	162		$	167		$	44		$	181		$	373

(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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Underwriting gain (loss)	$	67		$	(10	)	$	41		$	96		$	(47	)	$	(87	)	$	65		$	98		$	(69	)
Net investment income	73			84			94			100			93			93			91			251			277
Other	14			14			14			14			13			13			12			42			38
Operating income	$	154		$	88		$	149		$	210		$	59		$	19		$	168		$	391		$	246
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	64.9		%	70.5		%	64.3		%	60.4		%	72.5		%	76.0		%	63.2		%	66.5		%	70.5		%
Underwriting expense ratio (2)	28.4		%	29.1		%	30.9		%	30.0		%	30.1		%	29.9		%	29.9		%	29.5		%	30.0		%
Combined ratio	93.3		%	99.6		%	95.2		%	90.4		%	102.6		%	105.9		%	93.1		%	96.0		%	100.5		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	91.7		%	97.7		%	93.3		%	89.0		%	100.9		%	104.0		%	90.6		%	94.3		%	98.4		%
Impact of catastrophes on combined ratio	4.1		%	7.9		%	3.8		%	0.0		%	14.0		%	14.0		%	3.6		%	5.2		%	10.5		%
Impact of prior year reserve development on combined ratio	-3.7		%	-1.9		%	-1.3		%	-0.8		%	-1.0		%	-0.5		%	-1.2		%	-2.2		%	-0.9		%

(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
	2009		2009		2009		2009		2010		2010		2010		2009		2010
Billing and policy fees	$	23	$	23	$	22	$	23	$	23	$	21	$	22	$	68	$	66

(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 (0.9) points for 1Q 2009, 2Q 2009, and YTD 3Q 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			3Q		3Q		3Q
	2009		2009			2009		2009		2010			2010			2010		2009		2010
Statutory underwriting
Gross written premiums	$	1,727	$	1,948		$	1,988	$	1,811	$	1,787		$	2,063		$	2,125	$	5,663	$	5,975
Net written premiums	$	1,677	$	1,878		$	1,859	$	1,735	$	1,736		$	2,004		$	2,003	$	5,414	$	5,743
Net earned premiums	$	1,743	$	1,773		$	1,792	$	1,809	$	1,778		$	1,822		$	1,866	$	5,308	$	5,466
Losses and loss adjustment expenses	1,130		1,249			1,152		1,093		1,289			1,384			1,180		3,531		3,853
Underwriting expenses	521		549			590		537		534			585			608		1,660		1,727
Statutory underwriting gain (loss)	$	92	$	(25	)	$	50	$	179	$	(45	)	$	(147	)	$	78	$	117	$	(114	)
Policies in force (in thousands)
Automobile	2,509		2,491			2,482		2,480		2,489			2,516			2,536		2,482		2,536
Homeowners and other	4,861		4,901			4,944		4,985		5,030			5,100			5,143		4,944		5,143

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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Statutory underwriting
Gross written premiums	$	924		$	919		$	905		$	862		$	917		$	951		$	958		$	2,748		$	2,826
Net written premiums	$	917		$	914		$	898		$	857		$	913		$	945		$	952		$	2,729		$	2,810
Net earned premiums	$	913		$	917		$	915		$	916		$	892		$	905		$	914		$	2,745		$	2,711
Losses and loss adjustment expenses	668			639			643			682			613			638			628			1,950			1,879
Underwriting expenses	254			249			247			237			249			254			254			750			757
Statutory underwriting gain (loss)	$	(9	)	$	29		$	25		$	(3	)	$	30		$	13		$	32		$	45		$	75
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	73.2		%	69.7		%	70.2		%	74.5		%	68.7		%	70.5		%	68.7		%	71.0		%	69.3		%
Underwriting expense ratio	27.0		%	26.7		%	27.1		%	26.4		%	26.7		%	26.9		%	26.2		%	26.9		%	26.6		%
Combined ratio	100.2		%	96.4		%	97.3		%	100.9		%	95.4		%	97.4		%	94.9		%	97.9		%	95.9		%
Impact of catastrophes on combined ratio	0.9		%	1.0		%	0.8		%	0.0		%	0.8		%	1.6		%	0.3		%	0.9		%	0.9		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	8		$	9		$	7		$	—		$	7		$	14		$	3		$	24		$	24
After-tax	$	5		$	6		$	5		$	—		$	4		$	10		$	2		$	16		$	16
Policies in force (in thousands)	2,489			2,466			2,451			2,443			2,447			2,468			2,482
Change from prior year quarter	-0.2		%	-2.3		%	-3.0		%	-2.7		%	-1.7		%	0.1		%	1.3		%
Change from prior quarter	-0.9		%	-0.9		%	-0.6		%	-0.3		%	0.2		%	0.9		%	0.6		%

(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		3Q		3Q		3Q
	2009		2009		2009		2009		2010		2010		2010		2009		2010
Billing and policy fees	$	13	$	14	$	12	$	13	$	13	$	11	$	12	$	39	$	36

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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Statutory underwriting
Gross written premiums	$	792		$	1,018		$	1,067		$	932		$	849		$	1,089		$	1,140		$	2,877		$	3,078
Net written premiums	$	749		$	952		$	946		$	861		$	803		$	1,035		$	1,024		$	2,647		$	2,862
Net earned premiums	$	824		$	846		$	865		$	879		$	870		$	897		$	930		$	2,535		$	2,697
Losses and loss adjustment expenses	458			599			499			399			662			729			534			1,556			1,925
Underwriting expenses	239			268			306			275			252			292			305			813			849
Statutory underwriting gain (loss)	$	127		$	(21	)	$	60		$	205		$	(44	)	$	(124	)	$	91		$	166		$	(77	)
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	55.6		%	70.8		%	57.7		%	45.4		%	76.1		%	81.3		%	57.4		%	61.4		%	71.4		%
Underwriting expense ratio	26.8		%	28.4		%	31.3		%	31.2		%	30.6		%	29.4		%	28.9		%	28.9		%	29.6		%
Combined ratio	82.4		%	99.2		%	89.0		%	76.6		%	106.7		%	110.7		%	86.3		%	90.3		%	101.0		%
Impact of catastrophes on combined ratio	7.6		%	15.3		%	7.0		%	0.0		%	27.9		%	26.8		%	6.9		%	10.0		%	20.3		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	63		$	130		$	61		$	—		$	242		$	241		$	64		$	254		$	547
After-tax	$	41		$	85		$	39		$	—		$	158		$	156		$	41		$	165		$	355
Policies in force (in thousands)	4,850			4,886			4,924			4,959			5,000			5,064			5,103
Change from prior year quarter	3.1		%	2.8		%	2.5		%	2.8		%	3.1		%	3.6		%	3.6		%
Change from prior quarter	0.5		%	0.7		%	0.8		%	0.7		%	0.8		%	1.3		%	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
	2009		2009		2009		2009		2010		2010		2010		2009		2010
Billing and policy fees	$	10	$	9	$	10	$	10	$	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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Revenues
Net investment income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other revenues	—			9			1			—			—			—			—			10			—
Total revenues	—			9			1			—			—			—			—			10			—
Claims and expenses
Interest expense	92			94			98			98			98			97			95			284			290
General and administrative expenses	7			13			11			6			10			5			6			31			21
Total claims and expenses	99			107			109			104			108			102			101			315			311
Operating loss before federal income tax benefit	(99		)	(98		)	(108		)	(104		)	(108		)	(102		)	(101		)	(305		)	(311		)
Income taxes	(49		)	(49		)	(38		)	(40		)	(27		)	(34		)	(36		)	(136		)	(97		)
Operating loss	$	(50	)	$	(49	)	$	(70	)	$	(64	)	$	(81	)	$	(68	)	$	(65	)	$	(169	)	$	(214	)

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,
	2010 (1)		2009
Assets
Fixed maturities, available for sale, at fair value (including $210 and $90 subject to securities lending) (amortized cost $61,028 and $63,311)	$	65,427	$	65,847
Equity securities, available for sale, at fair value (cost $374 and $373)	506		451
Real estate	843		865
Short-term securities	4,981		4,852
Other investments	2,960		2,950
Total investments	74,717		74,965
Cash	298		255
Investment income accrued	771		825
Premiums receivable	5,696		5,471
Reinsurance recoverables	12,060		12,816
Ceded unearned premiums	952		916
Deferred acquisition costs	1,840		1,758
Deferred tax asset	—		672
Contractholder receivables	5,517		5,797
Goodwill	3,365		3,365
Other intangible assets	522		588
Other assets	2,416		2,132
Total assets	$	108,154	$	109,560

	September 30,			December 31,
	2010 (1)			2009
Liabilities
Claims and claim adjustment expense reserves	$	51,973		$	53,127
Unearned premium reserves	11,272			10,861
Contractholder payables	5,517			5,797
Payables for reinsurance premiums	553			546
Deferred tax liability	62			—
Debt	6,252			6,527
Other liabilities	5,230			5,287
Total liabilities	80,859			82,145
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.2 shares issued and outstanding at both dates)	70			79
Common stock (1,748.6 shares authorized; 460.5 and 520.3 shares issued and outstanding)	19,980			19,593
Retained earnings	18,118			16,315
Accumulated other changes in equity from nonowner sources	2,372			1,219
Treasury stock, at cost (267.4 and 199.6 shares)	(13,245		)	(9,791		)
Total shareholders’ equity	27,295			27,415
Total liabilities and shareholders’ equity	$	108,154		$	109,560

(1) Preliminary.

22

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

	September 30,		Pre-tax Book		December 31,		Pre-tax Book
	2010		Yield (1)		2009		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	24,499	4.88	%	$	25,006	4.91	%
Tax-exempt fixed maturities	40,928		4.07	%	40,841		4.08	%
Total fixed maturities	65,427		4.38	%	65,847		4.40	%
Non-redeemable preferred stocks	234		6.59	%	232		6.60	%
Common stocks	272				219
Total equity securities	506				451
Real estate	843				865
Short-term securities	4,981		0.22	%	4,852		0.19	%
Private equities	1,706				1,557
Hedge funds	495				472
Real estate partnerships	545				508
Mortgage loans	35		6.48	%	40		6.56	%
Trading securities	21				24
Other investments	158				349
Total other investments	2,960				2,950
Total investments	$	74,717			$	74,965
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	2,990			$	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)

	September 30,		December 31,
	2010		2009
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,111	$	2,574
Obligations of states and political subdivisions	41,425		41,333
Debt securities issued by foreign governments	2,016		1,957
Mortgage-backed securities - principally obligations of U.S. Government agencies	4,543		5,207
Corporates (including redeemable preferreds)	15,332		14,776
Total fixed maturities	$	65,427	$	65,847

Fixed Maturities

Quality Characteristics (1)

	September 30, 2010
	Amount		% of Total
Quality Ratings
Aaa	$	32,089	49.0	%
Aa	20,477		31.3
A	6,517		10.0
Baa	4,420		6.8
Total investment grade	63,503		97.1
Ba	843		1.3
B	604		0.9
Caa and lower	477		0.7
Total below investment grade	1,924		2.9
Total fixed maturities	$	65,427	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	3.5

(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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Gross investment income
Fixed maturities	$	713		$	691		$	703		$	715		$	691		$	678		$	674		$	2,107		$	2,043
Short-term securities	10			7			5			5			3			3			3			22			9
Other	(175		)	(33		)	63			105			66			89			65			(145		)	220
	548			665			771			825			760			770			742			1,984			2,272
Investment expenses	6			7			8			12			7			8			7			21			22
Net investment income, pre-tax	542			658			763			813			753			762			735			1,963			2,250
Income taxes	68			111			147			160			143			145			138			326			426
Net investment income, after-tax	$	474		$	547		$	616		$	653		$	610		$	617		$	597		$	1,637		$	1,824
Effective tax rate	12.6		%	16.7		%	19.2		%	19.8		%	18.9		%	19.1		%	18.8		%	16.6		%	18.9		%
Average invested assets (1)	$	72,720		$	72,589		$	73,515		$	73,573		$	72,659		$	71,294		$	70,929		$	72,991		$	71,718
Average yield pre-tax (1)	3.0		%	3.6		%	4.2		%	4.4		%	4.1		%	4.3		%	4.1		%	3.6		%	4.2		%
Average yield after-tax	2.6		%	3.0		%	3.4		%	3.5		%	3.4		%	3.5		%	3.4		%	3.0		%	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			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Net realized investment gains (losses)
Fixed maturities	$	(100	)	$	(2	)	$	19		$	14		$	22		$	17		$	25		$	(83	)	$	64
Equity securities (1)	(74		)	1			2			3			8			3			104			(71		)	115
Other (1) (2)	(40		)	14			8			172			(5		)	(51		)	97			(18		)	41
Realized investment gains (losses) before tax	(214		)	13			29			189			25			(31		)	226			(172		)	220
Related taxes	(77		)	5			8			59			9			(11		)	79			(64		)	77
Net realized investment gains (losses)	$	(137	)	$	8		$	21		$	130		$	16		$	(20	)	$	147		$	(108	)	$	143
Gross investment gains (2)	$	105		$	116		$	132		$	310		$	89		$	75		$	322		$	353		$	486
Gross investment losses before impairments (2)	(135		)	(73		)	(84		)	(96		)	(54		)	(102		)	(90		)	(292		)	(246		)
Net investment gains (losses) before impairments	(30		)	43			48			214			35			(27		)	232			61			240
Other-than-temporary impairment losses:
Total gains (losses)	(184		)	(75		)	(43		)	(21		)	(1		)	2			8			(302		)	9
Portion recognized in accumulated other changes in equity from nonowner sources	—			45			24			(4		)	(9		)	(6		)	(14		)	69			(29		)
Other-than-temporary impairment losses	(184		)	(30		)	(19		)	(25		)	(10		)	(4		)	(6		)	(233		)	(20		)
Net realized investment gains (losses) before tax	(214		)	13			29			189			25			(31		)	226			(172		)	220
Related taxes	(77		)	5			8			59			9			(11		)	79			(64		)	77
Net realized investment gains (losses)	$	(137	)	$	8		$	21		$	130		$	16		$	(20	)	$	147		$	(108	)	$	143
	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,
	2009			2009			2009			2009			2010			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		$	4,399
Equity securities & other	71			157			262			294			296			296			160
Unrealized investment gains before tax	803			1,296			3,404			2,830			2,949			3,626			4,559
Related taxes	260			431			1,168			969			1,011			1,245			1,569
Balance, end of period	$	543		$	865		$	2,236		$	1,861		$	1,938		$	2,381		$	2,990

(1)    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 (included in the “Other” category above) on the sale in 4Q 2009. In 3Q 2010, the Company sold most of its remaining common stock holdings in Verisk for total proceeds of approximately $230 million as part of the secondary public offering of Verisk. The Company recorded a pretax realized investment gain of $205 million on this sale in 3Q 2010 ($102 million included in the “Equity securities” and $103 million included in the “Other investments” categories above).

(2)    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	$	52	$	186	$	115
Gross investment Treasury future losses	$	76	$	46	$	50	$	47	$	33	$	63	$	71	$	172	$	167

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,
	2010			2009
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	7,387		$	8,138
Allowance for uncollectible reinsurance	(373		)	(523		)
Net reinsurance recoverables	7,014			7,615
Mandatory pools and associations	1,643			1,745
Structured settlements	3,403			3,456
Total reinsurance recoverables	$	12,060		$	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	September 30,		December 31,
Reinsurer	Predominant Reinsurer	2010		2009
Munich Re Group	A+ second highest of 16 ratings	$	787	$	779
Swiss Re Group	A third highest of 16 ratings	779		895
Transatlantic Holdings, Inc.	A third highest of 16 ratings	404		485
XL Capital Group	A third highest of 16 ratings	375		398
Berkshire Hathaway Group	A++ highest of 16 ratings	364		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 September 30, 2010, after deducting mandatory pools and associations and structured settlement balances, $5.6 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:  5% 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, $2.2 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at September 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	September 30,		December 31,
Group	Predominant Insurer	2010		2009
Old Mutual	B++ fifth highest of 16 ratings	$	1,033	$	1,050
Metlife	A+ second highest of 16 ratings	516		529
Genworth	A third highest of 16 ratings	463		472
Symetra	A third highest of 16 ratings	278		286
ING Group	A third highest of 16 ratings	231		235

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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Business Insurance
Beginning of period	$	32,270		$	32,043		$	31,986		$	31,750		$	31,289		$	31,079		$	30,900		$	32,270		$	31,289
Incurred	1,592			1,603			1,479			1,240			1,547			1,586			1,659			4,674			4,792
Paid	(1,816		)	(1,688		)	(1,726		)	(1,704		)	(1,747		)	(1,751		)	(1,822		)	(5,230		)	(5,320		)
Foreign exchange and other	(3		)	28			11			3			(10		)	(14		)	15			36			(9		)
End of period	$	32,043		$	31,986		$	31,750		$	31,289		$	31,079		$	30,900		$	30,752		$	31,750		$	30,752
Financial, Professional & International Insurance
Beginning of period	$	5,397		$	5,503		$	5,821		$	5,970		$	6,003		$	6,022		$	5,995		$	5,397		$	6,003
Incurred	437			448			459			403			513			412			346			1,344			1,271
Paid	(309		)	(338		)	(354		)	(386		)	(443		)	(363		)	(312		)	(1,001		)	(1,118		)
Foreign exchange and other	(22		)	208			44			16			(51		)	(76		)	96			230			(31		)
End of period	$	5,503		$	5,821		$	5,970		$	6,003		$	6,022		$	5,995		$	6,125		$	5,970		$	6,125
Personal Insurance
Beginning of period	$	3,640		$	3,610		$	3,688		$	3,637		$	3,631		$	3,748		$	3,871		$	3,640		$	3,631
Incurred	1,130			1,249			1,152			1,093			1,289			1,384			1,180			3,531			3,853
Paid	(1,160		)	(1,171		)	(1,203		)	(1,099		)	(1,172		)	(1,261		)	(1,288		)	(3,534		)	(3,721		)
End of period	$	3,610		$	3,688		$	3,637		$	3,631		$	3,748		$	3,871		$	3,763		$	3,637		$	3,763
Total
Beginning of period	$	41,307		$	41,156		$	41,495		$	41,357		$	40,923		$	40,849		$	40,766		$	41,307		$	40,923
Incurred	3,159			3,300			3,090			2,736			3,349			3,382			3,185			9,549			9,916
Paid	(3,285		)	(3,197		)	(3,283		)	(3,189		)	(3,362		)	(3,375		)	(3,422		)	(9,765		)	(10,159		)
Foreign exchange and other	(25		)	236			55			19			(61		)	(90		)	111			266			(40		)
End of period	$	41,156		$	41,495		$	41,357		$	40,923		$	40,849		$	40,766		$	40,640		$	41,357		$	40,640
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	185		$	—		$	—		$	—		$	140		$	185		$	140
Environmental	—			70			—			—			—			35			—			70			35
All other	(182		)	(286		)	(447		)	(366		)	(242		)	(338		)	(242		)	(915		)	(822		)
Prior year development excluding accretion of discount	(182		)	(216		)	(262		)	(366		)	(242		)	(303		)	(102		)	(660		)	(647		)
Accretion of discount	14			14			14			12			11			12			11			42			34
Total Business Insurance	(168		)	(202		)	(248		)	(354		)	(231		)	(291		)	(91		)	(618		)	(613		)
Financial, Professional & International Insurance	(12		)	(11		)	(25		)	(120		)	(34		)	(72		)	(97		)	(48		)	(203		)
Personal Insurance	(64		)	(34		)	(22		)	(15		)	(18		)	(9		)	(23		)	(120		)	(50		)
Total	$	(244	)	$	(247	)	$	(295	)	$	(489	)	$	(283	)	$	(372	)	$	(211	)	$	(786	)	$	(866	)

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
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Asbestos reserves
Beginning reserves:
Direct	$	3,299		$	3,216		$	3,136		$	3,251		$	3,097		$	3,004		$	2,867		$	3,299		$	3,097
Ceded	(385		)	(363		)	(345		)	(336		)	(339		)	(320		)	(274		)	(385		)	(339		)
Net	2,914			2,853			2,791			2,915			2,758			2,684			2,593			2,914			2,758
Incurred losses and loss expenses:
Direct	—			—			185			—			—			—			262			185			262
Ceded	—			—			—			—			—			—			(122		)	—			(122		)
Losses paid:
Direct	83			80			70			154			93			137			71			233			301
Ceded	(22		)	(18		)	(9		)	3			(19		)	(46		)	4			(49		)	(61		)
Ending reserves:
Direct	3,216			3,136			3,251			3,097			3,004			2,867			3,058			3,251			3,058
Ceded	(363		)	(345		)	(336		)	(339		)	(320		)	(274		)	(400		)	(336		)	(400		)
Net	$	2,853		$	2,791		$	2,915		$	2,758		$	2,684		$	2,593		$	2,658		$	2,915		$	2,658
Environmental reserves
Beginning reserves:
Direct	$	400		$	378		$	425		$	411		$	389		$	373		$	399		$	400		$	389
Ceded	14			14			3			3			4			4			(6		)	14			4
Net	414			392			428			414			393			377			393			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			16			74			51
Ceded	—			(4		)	—			(1		)	—			—			—			(4		)	—
Ending reserves:
Direct	378			425			411			389			373			399			383			411			383
Ceded	14			3			3			4			4			(6		)	(6		)	3			(6		)
Net	$	392		$	428		$	414		$	393		$	377		$	393		$	377		$	414		$	377

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,
	2010			2009
Debt
Short-term debt
Commercial paper	$	100		$	100
7.22% Real estate non-recourse debt due September 1, 2011	9			—
8.125% Senior notes due April 15, 2010	—			250
7.415% Medium-term notes due August 23, 2010	—			21
7.81% Private placement note due September 16, 2010	—			2
Total short-term debt	109			373
Long-term debt
7.22% Real estate non-recourse debt due September 1, 2011	—			9
7.81% Private placement note due September 16, 2011	—			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	6,154			6,165
Unamortized fair value adjustment	54			58
Unamortized debt issuance costs	(65		)	(69		)
	6,143			6,154
Total debt	6,252			6,527
Preferred equity	70			79
Common equity (excluding net unrealized investment gains, net of tax)	24,235			25,475
Total capital (excluding net unrealized investment gains, net of tax)	$	30,557		$	32,081
Total debt to capital (excluding net unrealized investment gains, net of tax)	20.5		%	20.3		%

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

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

30

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

	September 30,			December 31,
	2010 (1)			2009
Statutory surplus	$	20,868		$	23,195
GAAP adjustments
Goodwill and intangible assets	3,696			3,752
Investments	4,915			2,999
Noninsurance companies	(3,254		)	(4,166		)
Deferred acquisition costs	1,840			1,758
Deferred federal income tax	(1,740		)	(1,038		)
Current federal income tax	(97		)	(90		)
Reinsurance recoverables	255			255
Furniture, equipment & software	673			640
Employee benefits	(4		)	(12		)
Agents balances	118			110
Other	25			12
Total GAAP adjustments	6,427			4,220
GAAP shareholders’ equity	$	27,295		$	27,415

(1) Estimated and Preliminary

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

31

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Cash flows from operating activities
Net income	$	662		$	740		$	935		$	1,285		$	647		$	670		$	1,005		$	2,337		$	2,322
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	214			(13		)	(29		)	(189		)	(25		)	31			(226		)	172			(220		)
Depreciation and amortization	206			209			187			195			216			195			197			602			608
Deferred federal income tax expense (benefit)	22			(53		)	77			167			76			(25		)	98			46			149
Amortization of deferred acquisition costs	944			953			967			949			929			950			966			2,864			2,845
Equity in (income) loss from other investments	194			58			(41		)	(85		)	(45		)	(71		)	(45		)	211			(161		)
Premiums receivable	(44		)	(150		)	282			276			(97		)	(285		)	154			88			(228		)
Reinsurance recoverables	167			371			355			523			86			442			226			893			754
Deferred acquisition costs	(948		)	(997		)	(970		)	(882		)	(939		)	(991		)	(998		)	(2,915		)	(2,928		)
Claims and claim adjustment expense reserves	(373		)	22			(448		)	(797		)	(224		)	(468		)	(420		)	(799		)	(1,112		)
Unearned premium reserves	64			163			25			(348		)	86			184			148			252			418
Other	(295		)	(327		)	75			(67		)	(179		)	(112		)	236			(547		)	(55		)
Net cash provided by operating activities	813			976			1,415			1,027			531			520			1,341			3,204			2,392
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,210			1,179			1,380			1,547			1,229			1,249			1,403			3,769			3,881
Proceeds from sales of investments:
Fixed maturities	630			1,234			342			599			1,646			1,135			500			2,206			3,281
Equity securities	16			15			6			28			19			8			130			37			157
Real estate	—			—			—			—			9			1			—			—			10
Other investments	92			48			77			294			114			75			237			217			426
Purchases of investments:
Fixed maturities	(2,265		)	(2,006		)	(2,079		)	(3,297		)	(2,175		)	(1,765		)	(1,227		)	(6,350		)	(5,167		)
Equity securities	(12		)	(6		)	(4		)	(2		)	(5		)	(14		)	(10		)	(22		)	(29		)
Real estate	(5		)	(4		)	(3		)	(3		)	(3		)	(5		)	(7		)	(12		)	(15		)
Other investments	(112		)	(74		)	(76		)	(87		)	(104		)	(123		)	(146		)	(262		)	(373		)
Net (purchases) sales of short-term securities	(451		)	(772		)	(122		)	1,715			202			848			(1,116		)	(1,345		)	(66		)
Securities transactions in course of settlement	398			(32		)	222			(193		)	95			(93		)	(242		)	588			(240		)
Other	(84		)	(121		)	(66		)	(55		)	(75		)	(70		)	(75		)	(271		)	(220		)
Net cash provided by (used in) investing activities	(583		)	(539		)	(323		)	546			952			1,246			(553		)	(1,445		)	1,645

32

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2009			2009			2009			2009			2010			2010			2010			2009			2010
Cash flows from financing activities
Payment of debt	(141		)	—			(2		)	—			—			(250		)	(25		)	(143		)	(275		)
Issuance of debt	—			494			—			—			—			—			—			494			—
Dividends paid to shareholders	(178		)	(172		)	(168		)	(175		)	(168		)	(175		)	(169		)	(518		)	(512		)
Issuance of common stock - employee share options	10			18			48			104			123			76			68			76			267
Treasury stock acquired - share repurchase authorization	—			(750		)	(970		)	(1,539		)	(1,407		)	(1,397		)	(637		)	(1,720		)	(3,441		)
Treasury stock acquired - net employee share-based compensation	(27		)	(1		)	(1		)	—			(38		)	(2		)	—			(29		)	(40		)
Excess tax benefits from share-based payment arrangements	1			1			2			4			4			1			1			4			6
Net cash used in financing activities	(335		)	(410		)	(1,091		)	(1,606		)	(1,486		)	(1,747		)	(762		)	(1,836		)	(3,995		)
Effect of exchange rate changes on cash	—			10			3			2			(1		)	(4		)	6			13			1
Net increase (decrease) in cash	(105		)	37			4			(31		)	(4		)	15			32			(64		)	43
Cash at beginning of period	350			245			282			286			255			251			266			350			255
Cash at end of period	$	245		$	282		$	286		$	255		$	251		$	266		$	298		$	286		$	298
Income taxes paid	$	34		$	329		$	210		$	303		$	44		$	265		$	202		$	573		$	511
Interest paid	$	63		$	122		$	63		$	137		$	63		$	137		$	63		$	248		$	263

33

The Travelers Companies, Inc.
Financial Supplement - Third 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 financial statements or are not required to be disclosed in the notes to financial statements or, 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, financial analysts, rating agencies and other financial statement users 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.  Internally, the Company’s management uses these measures to evaluate performance against historical results and establish financial targets on a consolidated basis.

Some of these measures exclude net realized gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.

Operating income (loss) is net income (loss) excluding the after-tax impact of net realized investment gains (losses).  Management uses operating income to analyze each segment’s performance and as a tool in making business decisions.  Financial statement users also consider operating income when analyzing the results and trends of insurance companies.  Operating earnings (loss) per share is operating income (loss) on a per common share basis.

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

Return on equity is the ratio of annualized net income (loss) less preferred dividends to average shareholders’ equity for the periods presented.  Operating return on equity is the ratio of annualized operating income (loss) less preferred dividends to adjusted average shareholders’ equity for the periods presented.  In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management.

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.  In the opinion of the Company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business.  This measure is used to assess each segment’s business performance and as a tool in making business decisions.

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 to users of the financial statements to understand the Company’s periodic earnings and the variability in periodic earnings caused by the unpredictable nature of catastrophes.

Net favorable (unfavorable) prior year 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, a discussion of loss reserve development is meaningful to users of the financial statements 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) and the underwriting expense ratio.  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 the incremental impact of the 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.

Total capital is the sum of total shareholders’ equity and debt.  Debt-to-capital ratio excluding net unrealized gain (loss) on investments is the ratio of debt to total capital 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 financial leverage.

Statutory surplus represents the excess of an insurance company’s assets over its liabilities in accordance with the statutory accounting practices required by state laws and regulations.

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.

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