8-K

UNITED STATESSECURITIES 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):  April 21, 2011

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 AvenueNew 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 April 21, 2011, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended March 31, 2011, and the availability of the Company’s first 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 April 21, 2011, reporting results of operations (This exhibit is furnished and not filed.)
99.2	First Quarter 2011 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

2

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:     April 21, 2011	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Matthew S. Furman
		Name:  Matthew S. Furman
		Title:  Senior Vice President

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated April 21, 2011, reporting results of operations (This exhibit is furnished and not filed.)
99.2	First Quarter 2011 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

4

EX-99.1

Exhibit 99.1

NYSE: TRV The Travelers Companies, Inc. 485 Lexington Avenue New York, NY 10017-2630 www.travelers.com

Travelers Reports First Quarter Net and Operating Income per Diluted Share of $1.92 and $1.89, an Increase of 54% and 55%, Respectively, From a Year Ago

·EPS up as a result of significantly lower catastrophe losses, the impact of fewer outstanding shares and the favorable resolution of prior year tax matters.

·Total net written premiums up nearly 4% and notably reflect overall gains in pricing and renewing Business Insurance customers purchasing more insurance.

·Repurchased 18.9 million common shares for $1.1 billion.

·Board of Directors approves a 14% increase in the company’s regular quarterly dividend per share to $0.41.

New York, April 21, 2011 — The Travelers Companies, Inc. today reported results for the first quarter 2011.

Consolidated Highlights

($ in millions, except for per share amounts, and after-tax,	Three Months Ended March 31,
except for premiums & revenues)	2011			2010			Change
Net written premiums	$	5,437		$	5,251		4	%
Earned premiums	$	5,371		$	5,230		3
Net investment income	779			753			3
Fee income & other	128			136			(6	)
Total revenues	$	6,278		$	6,119		3
Operating income	$	826		$	631		31
per diluted share	$	1.89		$	1.22		55
Net income	$	839		$	647		30
per diluted share	$	1.92		$	1.25		54
Diluted weighted average shares outstanding	434.4			515.1			(16	)
GAAP combined ratio	94.7		%	96.4		%	(1.7	)pts
Operating return on equity	14.1		%	10.1		%	4.0	pts
Return on equity	13.3		%	9.6		%	3.7	pts

	As of March 31,
	2011		2010		Change
Book value per share	$	59.91	$	53.50	12	%
Adjusted book value per share	55.59		49.60		12

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

“We are very pleased to be starting the year with strong earnings,” commented Jay Fishman, Chairman and Chief Executive Officer.  “Underwriting results and net investment income reflected solid performance. In addition, we were pleased to see the favorable impact of pricing and improved economic conditions on net written premiums.

1

“Across our diversified commercial insurance businesses, pricing continued to improve with renewal rate change turning positive early in the quarter and trending upward from there. We also continued to see growth in the number of accounts. In addition, exposure change at renewal increased, and we were very pleased that audit premiums turned positive for the first time since second quarter 2009. In Personal Insurance, the environment remained generally stable, and renewal premium change was once again positive.  Importantly, retention levels remained high across all of our business segments, demonstrating the significant value we provide to our customers, agents and brokers.

“Looking forward, we feel very good about our position in the marketplace and are cautiously but increasingly optimistic about the operating environment,” concluded Fishman.

First Quarter 2011 Consolidated Results

	Three Months Ended March 31,
	2011			2010			2011			2010
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	247		$	155		$	249		$	80
Underwriting gain includes:
Net favorable prior year reserve development	237			294			155			192
Catastrophes, net of reinsurance	(186		)	(471		)	(122		)	(312		)
Resolution of prior year tax matters							100			—
Net investment income	779			753			622			610
Other, including interest expense	(77		)	(76		)	(45		)	(59		)
Other also includes:
Resolution of prior year tax matters							4			—
Operating income	949			832			826			631
Net realized investment gains	20			25			13			16
Income before income taxes	$	969		$	857
Net income							$	839		$	647
GAAP combined ratio	94.7		%	96.4		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	93.8		%	95.8		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(4.4		)pts	(5.6		)pts
Catastrophes, net of reinsurance	3.4		pts	9.0		pts

Operating income of $826 million after-tax in the current quarter increased $195 million from the prior year quarter primarily due to a $169 million after-tax increase in the underwriting gain which included a $100 million benefit from favorable resolution of prior year tax matters primarily related to 2007 and 2008.

The improvement in the underwriting gain in the current quarter reflected a GAAP combined ratio of 94.7 percent, as compared to 96.4 percent in the prior year quarter. This improvement of 1.7 points in the combined ratio was primarily driven by a $285 million pre-tax decrease in catastrophe losses (improvement of 5.6 points), partially offset by a $57 million pre-tax decrease in net favorable prior year reserve development (increase of 1.2 points). Catastrophe losses in the current quarter were primarily due to winter storms throughout the United States. Net favorable prior year reserve development in the current quarter occurred in all three segments, but particularly in Business Insurance as a result of better than expected loss experience in the general liability and property product lines.

The current quarter underwriting gain excluding net favorable prior year reserve development and catastrophe losses reflected a GAAP combined ratio of 95.7 percent, as compared to 93.0 percent in the prior year quarter.  This increase of 2.7 points was primarily due to the impact of reduced underwriting margins related to earned

2

pricing and loss cost trends in Business Insurance and higher non-catastrophe weather-related losses in Personal Insurance.

Total revenues of $6.278 billion in the current quarter increased $159 million, or 3 percent, from the prior year quarter due to a $141 million increase in earned premiums and a $26 million increase in pre-tax net investment income. After-tax net investment income in the current quarter increased 2 percent from the prior year quarter due to strong results in the non-fixed income portfolio. Net investment income from the fixed income portfolio decreased modestly from the prior year quarter due to lower average invested assets that reflected the impact of the company’s common share repurchases, as well as lower reinvestment rates.

Net written premiums of $5.437 billion in the current quarter increased 4 percent from the prior year quarter due to strong results in Business Insurance and Personal Insurance. Retention rates remained high and new business volumes were generally stable across all three business segments. Renewal rate change was positive in Business Insurance and Personal Insurance but was slightly negative in Financial, Professional & International Insurance. Net written premiums in Business Insurance also benefited from modestly positive audit premiums, compared to significant negative audit premiums in the prior year quarter.

Capital Management

“We remain very pleased with our capital structure and balance sheet strength,” commented Jay S. Benet, Vice Chairman and Chief Financial Officer. “Our ongoing commitment to returning excess capital to our shareholders was evidenced by the $1.1 billion in common share repurchases during the first quarter and the 14 percent increase in our quarterly dividend that we announced today.”

Shareholders’ equity ended first quarter 2011 at $25.2 billion, a slight decrease from year-end 2010 resulting from common share repurchases. Included in shareholders’ equity at the end of the current quarter were after-tax unrealized gains of $1.8 billion, compared to $1.9 billion at year-end 2010. All of the company’s financial strength indicators remained at or better than target as statutory surplus ended the current quarter at $20.6 billion, holding company liquidity was $2.9 billion and the debt-to-capital ratio (excluding net unrealized investment gains) was 22.0 percent.

The Board of Directors declared a regular quarterly dividend of $0.41 per common share.  This dividend, which is $0.05 higher than the last regular quarterly dividend, is payable June 30, 2011, to shareholders of record as of the close of business June 10, 2011.

Business Insurance Segment Financial Results

“The improved trends in Business Insurance seen in fourth quarter 2010 continued into the new year,” commented Brian MacLean, President and Chief Operating Officer. “These favorable trends in pricing and exposure drove strong net written premium growth in the quarter. The investments we have made in our franchise over the past few years, which we believe have driven our sizable account growth, position us well to continue to grow our business profitably.”

3

	Three Months Ended March 31,
	2011			2010			2011			2010
($ in millions)	Pre-tax						After-tax
Underwriting gain	$	129		$	218		$	153		$	132
Underwriting gain includes:
Net favorable prior year reserve development	143			242			93			158
Catastrophes, net of reinsurance	(112		)	(135		)	(73		)	(88		)
Resolution of prior year tax matters							76			—
Net investment income	556			528			445			430
Other	9			6			6			5
Operating income	$	694		$	752		$	604		$	567
GAAP combined ratio	94.9		%	91.4		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(5.2		)pts	(9.2		)pts
Catastrophes, net of reinsurance	4.1		pts	5.1		pts

Operating income in the current quarter of $604 million after-tax increased $37 million from the prior year quarter primarily due to a $21 million after-tax increase in the underwriting gain and a $15 million after-tax increase in net investment income. The underwriting gain in the current quarter included a $76 million benefit from favorable resolution of prior year tax matters.

The underwriting gain in the current quarter reflected a GAAP combined ratio of 94.9 percent, as compared to 91.4 percent in the prior year quarter. This increase of 3.5 points in the combined ratio was primarily due to a $99 million pre-tax decrease in net favorable prior year reserve development (increase of 4.0 points), partially offset by a $23 million pre-tax decrease in catastrophe losses (improvement of 1.0 point). Catastrophe losses in the current quarter were primarily due to winter storms throughout the United States. Net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience in the excess coverages of the general liability product line for accident years 2008 and prior, as well as the property product line for the most recent accident year.

The current quarter underwriting gain excluding net favorable prior year reserve development and catastrophe losses reflected a GAAP combined ratio of 96.0 percent, as compared to 95.5 percent in the prior year quarter.  This increase of 0.5 points was primarily due to reduced underwriting margins related to earned pricing and loss cost trends, partially offset by the favorable impact on the expense ratio of higher earned premium volume.

Business Insurance net written premiums of $3.020 billion in the current quarter increased 7 percent from the prior year quarter. Net written premiums benefited from improved economic activity as evidenced by positive exposure change at renewal as well as modestly positive audit premiums, compared to significant negative audit premiums in the prior year quarter. Retention rates remained high and increased from recent quarters. The impact of renewal rate change was slightly positive compared to slightly negative in recent quarters. New business volumes remained strong, but decreased modestly from the prior year quarter.

Select Accounts

·Net written premiums of $732 million increased 4 percent from the prior year quarter.

·Retention rates remained strong and increased from recent quarters.

·Renewal premium change remained positive and increased from recent quarters.

·New business volumes increased from the prior year quarter due to continued strong volumes from TravelersExpressSM, the company’s enhanced quote-to-issue agency platform and multivariate pricing program for smaller businesses, and increased volumes in larger accounts served by Select.

Commercial Accounts

·Net written premiums of $822 million increased 16 percent from the prior year quarter.

4

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

·Renewal premium change was positive for the second consecutive quarter and increased from recent quarters.

·New business volumes were strong and increased from the prior year quarter.

National Accounts

·Net written premiums of $211 million decreased 7 percent from the prior year quarter primarily due to lower prior year retrospective premium adjustments, partially offset by strong retention rates.

Industry-Focused Underwriting

·Net written premiums of $628 million increased 10 percent from the prior year quarter. Premium increases were concentrated in the Construction and Technology business units.

Target Risk Underwriting

·Net written premiums of $413 million approximated the prior year quarter.

Specialized Distribution

·Net written premiums of $209 million decreased 3 percent from the prior year quarter primarily due to lower new business volumes in the Northland business unit.

Financial, Professional & International Insurance Segment Financial Results

“In FP&II, operating income in the quarter compared to a year ago benefited significantly from lower losses associated with earthquakes and significant weather events,” commented MacLean. “While written and earned premiums have been reduced in the current and recent quarters, the work we have done to improve risk and reward in our International business, particularly in the catastrophe exposed lines in our Lloyd’s syndicate, successfully mitigated losses this quarter. Low levels of construction spending coupled with our commitment to disciplined underwriting continued to impact business volumes in our surety businesses, and we continue to maintain our focus on returns in our management liability businesses.”

	Three Months Ended March 31,
	2011			2010			2011			2010
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	33		$	6		$	32		$	(5	)
Underwriting gain (loss) includes:
Net favorable prior year reserve development	39			34			26			22
Catastrophes, net of reinsurance	(21		)	(86		)	(15		)	(62		)
Resolution of prior year tax matters							14			—
Net investment income	106			111			84			87
Other	7			6			4			4
Operating income	$	146		$	123		$	120		$	86
GAAP combined ratio	95.3		%	98.9		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(5.1		)pts	(4.2		)pts
Catastrophes, net of reinsurance	2.7		pts	10.4		pts

Operating income in the current quarter of $120 million after-tax increased $34 million from the prior year quarter due to a $37 million after-tax increase in underwriting results. The underwriting gain in the current quarter included a $14 million benefit from favorable resolution of prior year tax matters.

5

The improvement in underwriting results in the current quarter reflected a GAAP combined ratio of 95.3 percent, as compared to 98.9 percent in the prior year quarter. This improvement of 3.6 points in the combined ratio was driven by a $65 million pre-tax decrease in catastrophe losses (improvement of 7.7 points) and $5 million pre-tax increase in net favorable prior year reserve development (improvement of 0.9 points). Catastrophe losses in the current quarter were concentrated in the company’s Lloyd’s operations and related to the earthquake in Japan. Net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience in older accident years for the fidelity & surety line of business within Bond & Financial Products.

The current quarter underwriting gain excluding net favorable prior year reserve development and catastrophes reflected a GAAP combined ratio of 97.7 percent, as compared to 92.7 percent in the prior year quarter. This increase of 5.0 points was primarily due to several large losses within International, including losses related to the earthquake in New Zealand that did not meet the company’s threshold for classification as catastrophe losses, as well as an increase in the expense ratio attributable to infrastructure investments within International and lower earned premium volume across the segment.

Financial, Professional & International Insurance net written premiums of $624 million decreased 8 percent from the prior year quarter. Adjusting for the impact of changes in foreign exchange rates, net written premiums decreased 9 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 $369 million increased 2 percent from the prior year quarter reflecting changes in ceded reinsurance, partially offset by lower business volumes in construction surety due to the continued slowdown in construction spending and disciplined underwriting.

·Retention rates remained strong and increased from the most recent quarter.

·Renewal premium change was slightly negative but improved from recent quarters.

·New business volumes increased from the prior year quarter.

International

·Net written premiums of $255 million decreased 20 percent from the prior year quarter. Adjusting for the impact of changes in foreign exchange rates, net written premiums decreased 22 percent. This decrease is primarily attributable to intentional underwriting actions taken at the company’s operations at Lloyd’s intended to improve risk and reward (particularly in the catastrophe exposed lines of business), timing related to policies written in the prior year quarter with terms longer than 12 months that will be available for renewal later in 2011 and the termination of an exclusive relationship with a distribution partner in Ireland during fourth quarter 2010.

·Retention rates continued to be impacted by the termination of the distribution relationship in Ireland and intentional underwriting actions at Lloyd’s.

·Renewal premium change was negative, as the impact of positive renewal rate change was more than offset by reduced insured exposures primarily resulting from intentional underwriting actions at Lloyd’s.

·New business volumes decreased from the prior year quarter primarily due to the termination of the distribution relationship in Ireland and intentional underwriting actions at Lloyd’s.

Personal Insurance Segment Financial Results

“Personal Insurance performance remained strong, as we continue our disciplined rate actions,” commented MacLean. “We remain pleased with our production trends and the underlying profitability of our product portfolio.”

6

	Three Months Ended March 31,
	2011			2010			2011			2010
($ in millions)	Pre-tax						After-tax
Underwriting gain (loss)	$	85		$	(69	)	$	64		$	(47	)
Underwriting gain (loss) includes:
Net favorable prior year reserve development	55			18			36			12
Catastrophes, net of reinsurance	(53		)	(250		)	(34		)	(162		)
Resolution of prior year tax matters							10			—
Net investment income	117			114			93			93
Other	18			20			13			13
Operating income	$	220		$	65		$	170		$	59
GAAP combined ratio	94.2		%	102.6		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	91.4		%	100.9		%
Impact on GAAP combined ratio
Net favorable prior year reserve development	(3.0		)pts	(1.0		)pts
Catastrophes, net of reinsurance	2.8		pts	14.0		pts

Operating income in the current quarter of $170 million after-tax increased $111 million from the prior year quarter due to a $111 million after-tax increase in underwriting results. The underwriting gain in the current quarter included a $10 million benefit from favorable resolution of prior year tax matters.

The improvement in underwriting results in the current quarter reflected a GAAP combined ratio of 94.2 percent, as compared to 102.6 percent in the prior year quarter. This improvement of 8.4 points in the combined ratio was primarily driven by a $197 million pre-tax decrease in catastrophe losses (improvement of 11.2 points) and a $37 million pre-tax increase in net favorable prior year reserve development (improvement of 2.0 points).  Catastrophe losses in the current quarter were due to winter storms throughout the United States. The net favorable prior year reserve development in the current quarter primarily resulted from better than expected loss experience related to 2010 catastrophes in Homeowners and Other.

The current quarter underwriting results excluding net favorable prior year reserve development and catastrophe losses reflected a GAAP combined ratio of 94.4 percent, as compared to 89.6 percent in the prior year quarter. This increase of 4.8 points was primarily due to much higher non-catastrophe weather-related losses and higher expenses related to the company’s direct to consumer initiative, partially offset by the favorable impact of earned rate increases.

Personal Insurance net written premiums of $1.793 billion increased 3 percent from prior year quarter, including the company’s direct to consumer initiative, reflecting continued positive renewal premium change and strong retention rates.

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

Agency Automobile

·Net written premiums of $918 million increased 1 percent from the prior year quarter.

·Policies in force continued to increase, up 2 percent from the prior year quarter.

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

·New business volumes were consistent with the prior year quarter.

Agency Homeowners and Other

·Net written premiums of $845 million increased 5 percent from the prior year quarter.

7

·Policies in force continued to increase, up 3 percent from the prior year quarter.

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

·New business volumes decreased from the prior year quarter.

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, April 21, 2011. 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. The company’s diverse business lines offer its customers a wide range of coverage sold primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and operations in the U.S., Canada, U.K. and Ireland. For more information, visit www.travelers.com.

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 Partner Services; 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 financial liability coverages, which primarily use credit-based underwriting processes, as well as property and casualty products that are primarily marketed on a domestic basis in the United Kingdom, Canada and the Republic of Ireland, and on an international basis as a corporate member of 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

8

historical facts, may be forward-looking statements. Words such as “may”, “will”, “should”, “likely”, “anticipates”, “expects”, “intends”, “plans”, “projects”, “believes”, “estimates” and similar expressions are used to identify these forward-looking statements.  Specifically, 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.

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 economic downturn, the company’s business could be materially and adversely affected;

·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 investment portfolio may suffer reduced returns or material realized or unrealized losses;

·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 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, pay future shareholder dividends or make future share repurchases;

·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 or expand in targeted markets may not be successful and may create enhanced risks;

·the company’s net deferred tax assets could be adversely affected by a reduction in the U.S. Federal corporate income tax rate;

·the company may be adversely affected if its pricing and capital models are inaccurate;

9

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

·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 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

·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 captions “Risk Factors” 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 follow.

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.

10

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.

Reconciliation of Operating Income less Preferred Dividends and Net Income less Preferred Dividends to Net Income

	Three Months Ended
	March 31,
($ in millions, after-tax)	2011		2010
Operating income, less preferred dividends	$	825	$	630
Preferred dividends	1		1
Operating income	826		631
Net realized investment gains	13		16
Net income	$	839	$	647
Net income, less preferred dividends	$	838	$	646
Preferred dividends	1		1
Net income	$	839	$	647

	Twelve Months Ended December 31,
($ in millions; after-tax)	2010		2009		2008			2007		2006		2005
Operating income, less preferred dividends	$	3,040	$	3,597	$	3,191		$	4,496	$	4,195	$	2,020
Preferred dividends	3		3		4			4		5		6
Operating income	3,043		3,600		3,195			4,500		4,200		2,026
Net realized investment gains (losses)	173		22		(271		)	101		8		35
Income from continuing operations	3,216		3,622		2,924			4,601		4,208		2,061
Discontinued operations	—		—		—			—		—		(439		)
Net income	$	3,216	$	3,622	$	2,924		$	4,601	$	4,208	$	1,622

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

	Three Months Ended
	March 31,
	2011		2010
Basic earnings per share
Operating income	$	1.91	$	1.23
Net realized investment gains	0.03		0.03
Net income	$	1.94	$	1.26
Diluted earnings per share
Operating income	$	1.89	$	1.22
Net realized investment gains	0.03		0.03
Net income	$	1.92	$	1.25

11

Reconciliation of Operating Income by Segment to Total Operating Income

	Three Months Ended
	March 31,
($ in millions, after-tax)	2011			2010
Business Insurance	$	604		$	567
Financial, Professional & International Insurance	120			86
Personal Insurance	170			59
Total segment operating income	894			712
Interest Expense and Other	(68		)	(81		)
Total operating income	$	826		$	631

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 March 31,
($ in millions)	2011		2010
Adjusted shareholders’ equity	$	23,348	$	24,640
Net unrealized investment gains, net of tax	1,816		1,938
Net realized investment gains, net of tax	13		16
Preferred stock	66		77
Shareholders’ equity	$	25,243	$	26,671
	As of December 31,
($ in millions)	2010		2009		2008			2007		2006		2005			2004
Adjusted shareholders’ equity	$	23,376	$	25,453	$	25,645		$	25,783	$	24,545	$	22,227		$	20,087
Net unrealized investment gains (losses), net of tax	1,858		1,861		(144		)	620		453		327			866
Net realized investment gains (losses), net of tax	173		22		(271		)	101		8		35			(28		)
Preferred stock	68		79		89			112		129		153			188
Discontinued operations	—		—		—			—		—		(439		)	88
Shareholders’ equity	$	25,475	$	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.

12

Calculation of Operating Return on Equity and Return on Equity

	Three Months Ended
	March 31,
($ in millions, after-tax)	2011			2010
Annualized operating income, less preferred dividends	$	3,303		$	2,521
Adjusted average shareholders’ equity	23,449			25,057
Operating return on equity	14.1		%	10.1		%
Annualized net income, less preferred dividends	$	3,354		$	2,586
Average shareholders’ equity	25,293			26,965
Return on equity	13.3		%	9.6		%

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 March 31, 2011

			Three Months Ended
			March 31,						Twelve Months Ended December 31,
($ in millions)			2011			2010			2010			2009			2008			2007			2006			2005
Operating income, less preferred dividends			$	825		$	630		$	3,040		$	3,597		$	3,191		$	4,496		$	4,195		$	2,020
Operating income, less preferred dividends - annualized			3,303			2,521
Adjusted average shareholders’ equity			23,449			25,057			24,287			25,774			25,668			25,350			23,381			21,118
Operating return on equity			14.1		%	10.1		%	12.5		%	14.0		%	12.4		%	17.7		%	17.9		%	9.6		%
Average annual operating return on equity for the period January 1, 2005 through March 31, 2011	14.1	%

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

Underwriting gain 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, 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 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 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.

13

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, which may be related to one or more prior years. 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 (Excluding the Impact of Catastrophes and Net Favorable Prior Year Loss Reserve Development) to Net Income

	Three Months Ended
	March 31,
($ in millions; after-tax except as noted)	2011			2010
Pre-tax underwriting gain excluding the impact of catastrophes, and net favorable prior year loss reserve development	$	196		$	332
Pre-tax impact of catastrophes	(186		)	(471		)
Pre-tax impact of net favorable prior year loss reserve development	237			294
Pre-tax underwriting gain	247			155
Income tax expense (benefit) on underwriting results	(2		)	75
Underwriting gain	249			80
Net investment income	622			610
Other, including interest expense	(45		)	(59		)
Operating income	826			631
Net realized investment gains	13			16
Net income	$	839		$	647

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.

14

Calculation of the GAAP Combined Ratio

	Three Months Ended
	March 31,
($ in millions, pre-tax)	2011			2010
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$	3,382		$	3,388
Less:
Policyholder dividends	10			8
Allocated fee income	33			36
Loss ratio numerator	$	3,339		$	3,344
Underwriting expense ratio
Amortization of deferred acquisition costs	$	948		$	929
General and administrative expenses	883			847
Less:
G&A included in Interest Expense and Other	15			10
Allocated fee income	41			43
Billing and policy fees	26			27
Expense ratio numerator	$	1,749		$	1,696
Earned premium	$	5,371		$	5,230
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	62.1		%	64.0		%
Underwriting expense ratio	32.6		%	32.4		%
Combined ratio	94.7		%	96.4		%

(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.

15

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
	March 31,
	2011		2010
Personal Insurance
Combined ratio excluding incremental impact of direct to consumer initiative	91.4	%	100.9	%
Incremental impact of direct to consumer initiative	2.8	%	1.7	%
Combined ratio	94.2	%	102.6	%
Consolidated
Combined ratio excluding incremental impact of direct to consumer initiative	93.8	%	95.8	%
Incremental impact of direct to consumer initiative	0.9	%	0.6	%
Combined ratio	94.7	%	96.4	%

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
	March 31,
($ in millions)	2011		2010		Change
Net written premium - holding foreign exchange rates constant	$	618	$	681	(9	)%
Impact of changes in foreign exchange rates	6
Net written premium	$	624	$	681	(8	)%

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 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.

16

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

	As of
	March 31,			December 31,			March 31,
($ in millions; except per share amounts)	2011			2010			2010
Tangible common shareholders’ equity	$	19,566		$	19,737		$	20,788
Goodwill	3,365			3,365			3,365
Other intangible assets	482			502			564
Less: Impact of deferred tax on other intangible assets	(52		)	(55		)	(61		)
Adjusted common shareholders’ equity	23,361			23,549			24,656
Net unrealized investment gains, net of tax	1,816			1,858			1,938
Common shareholders’ equity	25,177			25,407			26,594
Preferred stock	66			68			77
Shareholders’ equity	$	25,243		$	25,475		$	26,671
Common shares outstanding	420.3			434.6			497.0
Tangible book value per share	$	46.56		$	45.42		$	41.82
Adjusted book value per share	55.59			54.19			49.60
Book value per share	59.91			58.47			53.50

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 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 to Total Capital

	As of
	March 31,			December 31,			March 31,
($ in millions)	2011			2010			2010
Debt	$	6,611		$	6,611		$	6,525
Shareholders’ equity	25,243			25,475			26,671
Total capitalization	31,854			32,086			33,196
Net unrealized investment gains, net of tax	1,816			1,858			1,938
Total capitalization excluding net unrealized gain on investments	$	30,038		$	30,228		$	31,258
Debt-to-capital ratio	20.8		%	20.6		%	19.7		%
Debt-to-capital ratio excluding net unrealized investment gains, net of tax	22.0		%	21.9		%	20.9		%

OTHER DEFINITIONS

Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract. 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. 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 measure of risk used in the pricing of an insurance product. The change in 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.

17

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

18

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - First Quarter 2011

	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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Net income	$	647		$	670		$	1,005		$	894		$	839
Net income per share:
Basic	$	1.26		$	1.37		$	2.14		$	1.98		$	1.94
Diluted	$	1.25		$	1.35		$	2.11		$	1.95		$	1.92
Operating income	$	631		$	690		$	858		$	864		$	826
Operating income per share:
Basic	$	1.23		$	1.41		$	1.83		$	1.91		$	1.91
Diluted	$	1.22		$	1.39		$	1.81		$	1.89		$	1.89
Return on equity	9.6		%	10.1		%	15.0		%	13.6		%	13.3		%
Operating return on equity	10.1		%	11.4		%	14.3		%	14.5		%	14.1		%
Total assets, at period end (1)	$	109,171		$	107,498		$	108,629		$	105,656		$	105,252
Total equity, at period end	$	26,671		$	26,286		$	27,295		$	25,475		$	25,243
Book value per share, at period end	$	53.50		$	55.67		$	59.11		$	58.47		$	59.91
Less: Net unrealized investment gains, net of tax	3.90			5.05			6.49			4.28			4.32
Adjusted book value per share, at period end	$	49.60		$	50.62		$	52.62		$	54.19		$	55.59
Weighted average number of common shares outstanding (basic)	508.4			484.5			465.9			447.9			428.2
Weighted average number of common shares outstanding and common stock equivalents (diluted)	515.1			490.8			472.0			454.7			434.4
Common shares outstanding at period end	497.0			470.8			460.5			434.6			420.3
Common stock dividends declared	$	168		$	173		$	169		$	160		$	155
Common stock repurchased:
Under repurchase authorization (2)
Shares	27.0			28.0			11.8			28.9			18.9
Cost	$	1,400		$	1,400		$	600		$	1,600		$	1,100
Other
Shares	0.8			0.2			—			0.3			0.8
Cost	$	40		$	14		$	—		$	12		$	46

(1)  Includes impact from certain reclassifications made to 2010 amounts to conform to 2011 presentation.

(2)  Repurchased under Board of Director authorization.

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

1

The Travelers Companies, Inc.
Reconciliation to Net Income and Earnings Per Share
($ and shares in millions, except earnings per share)

	1Q		2Q			3Q		4Q		1Q
	2010		2010			2010		2010		2011
Net income
Operating income	$	631	$	690		$	858	$	864	$	826
Net realized investment gains (losses)	16		(20		)	147		30		13
Net income	$	647	$	670		$	1,005	$	894	$	839
Basic earnings per share
Operating income	$	1.23	$	1.41		$	1.83	$	1.91	$	1.91
Net realized investment gains (losses)	0.03		(0.04		)	0.31		0.07		0.03
Net income	$	1.26	$	1.37		$	2.14	$	1.98	$	1.94
Diluted earnings per share
Operating income	$	1.22	$	1.39		$	1.81	$	1.89	$	1.89
Net realized investment gains (losses)	0.03		(0.04		)	0.30		0.06		0.03
Net income	$	1.25	$	1.35		$	2.11	$	1.95	$	1.92

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

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Basic
Net income, as reported	$	647		$	670		$	1,005		$	894		$	839
Preferred stock dividends	(1		)	—			(1		)	(1		)	(1		)
Participating share-based awards - allocated income	(5		)	(5		)	(8		)	(7		)	(7		)
Net income available to common shareholders - basic	$	641		$	665		$	996		$	886		$	831
Diluted
Net income available to common shareholders - basic	$	641		$	665		$	996		$	886		$	831
Effect of dilutive securities:
Convertible preferred stock	1			—			1			1			1
Performance shares	—			—			1			1			—
Net income available to common shareholders - diluted	$	642		$	665		$	998		$	888		$	832
Common Shares
Basic
Weighted average shares outstanding	508.4			484.5			465.9			447.9			428.2
Diluted
Weighted average shares outstanding	508.4			484.5			465.9			447.9			428.2
Weighted average effects of dilutive securities:
Convertible preferred stock	1.9			1.8			1.7			1.7			1.6
Stock options and performance shares	4.8			4.5			4.4			5.1			4.6
Diluted weighted average shares outstanding	515.1			490.8			472.0			454.7			434.4

(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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Revenues
Premiums	$	5,230		$	5,340		$	5,422		$	5,440		$	5,371
Net investment income	753			762			735			809			779
Fee income	79			76			64			68			74
Net realized investment gains (losses)	25			(31		)	226			44			20
Other revenues (1)	32			32			35			(29		)	34
Total revenues	6,119			6,179			6,482			6,332			6,278
Claims and expenses
Claims and claim adjustment expenses	3,388			3,419			3,213			3,190			3,382
Amortization of deferred acquisition costs	929			950			966			957			948
General and administrative expenses	847			832			837			890			883
Interest expense	98			97			95			98			96
Total claims and expenses	5,262			5,298			5,111			5,135			5,309
Income before income taxes	857			881			1,371			1,197			969
Income tax expense	210			211			366			303			130
Net income	$	647		$	670		$	1,005		$	894		$	839
Net realized investment gains (losses)
Other-than-temporary impairment losses:
Total gains (losses)	$	(1	)	$	2		$	8		$	(2	)	$	2
Non-credit component of impairments recognized in accumulated other changes in equity from nonowner sources	(9		)	(6		)	(14		)	(4		)	(6		)
Other-than-temporary impairment losses	(10		)	(4		)	(6		)	(6		)	(4		)
Other net realized investment gains (losses)	35			(27		)	232			50			24
Net realized investment gains (losses)	$	25		$	(31	)	$	226		$	44		$	20
Other statistics
Effective tax rate on net investment income	18.9		%	19.1		%	18.8		%	20.3		%	20.2		%
Net investment income (after-tax)	$	610		$	617		$	597		$	644		$	622
Catastrophes, net of reinsurance:
Pre-tax	$	471		$	439		$	117		$	86		$	186
After-tax	$	312		$	285		$	77		$	55		$	122

(1)  In 4Q 2010, “Other revenues” include $(60) million of expenses related to the Company’s purchase and retirement of $885 million of its $1 billion 6.25% fixed-to-floating rate junior subordinated debentures.

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Underwriting gain	$	80		$	119		$	302		$	303		$	249
Net investment income	610			617			597			644			622
Other, including interest expense (1)	(59		)	(46		)	(41		)	(83		)	(45		)
Operating income	631			690			858			864			826
Net realized investment gains (losses)	16			(20		)	147			30			13
Net income	$	647		$	670		$	1,005		$	894		$	839
GAAP Combined ratio (2) (3)
Loss and loss adjustment expense ratio	64.0		%	63.3		%	58.7		%	58.0		%	62.1		%
Underwriting expense ratio	32.4		%	31.9		%	31.9		%	32.6		%	32.6		%
Combined ratio	96.4		%	95.2		%	90.6		%	90.6		%	94.7		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	95.8		%	94.6		%	89.7		%	89.6		%	93.8		%
Impact of catastrophes on combined ratio	9.0		%	8.2		%	2.2		%	1.5		%	3.4		%
Impact of prior year reserve development on combined ratio	-5.6		%	-7.2		%	-4.1		%	-6.4		%	-4.4		%

(1)  In 4Q 2010, “Other, including interest expense” includes $(39) million, net of tax, of expenses related to the Company’s purchase and retirement of $885 million of its $1 billion 6.25% fixed-to-floating rate junior subordinated debentures.

(2)  Before policyholder dividends.

(3)  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:

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Billing and policy fees	$	27	$	25	$	27	$	25	$	26
Fee income:
Loss and loss adjustment expenses	$	36	$	31	$	23	$	30	$	33
Underwriting expenses	43		45		41		38		41
Total fee income	$	79	$	76	$	64	$	68	$	74

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

4

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

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Revenues
Premiums	$	5,230		$	5,340		$	5,422		$	5,440		$	5,371
Net investment income	753			762			735			809			779
Fee income	79			76			64			68			74
Other revenues (1)	32			32			35			(29		)	34
Total revenues	6,094			6,210			6,256			6,288			6,258
Claims and expenses
Claims and claim adjustment expenses	3,388			3,419			3,213			3,190			3,382
Amortization of deferred acquisition costs	929			950			966			957			948
General and administrative expenses	847			832			837			890			883
Interest expense	98			97			95			98			96
Total claims and expenses	5,262			5,298			5,111			5,135			5,309
Operating income before income taxes	832			912			1,145			1,153			949
Income tax expense	201			222			287			289			123
Operating income	$	631		$	690		$	858		$	864		$	826
Other statistics
Effective tax rate on net investment income	18.9		%	19.1		%	18.8		%	20.3		%	20.2		%
Net investment income (after-tax)	$	610		$	617		$	597		$	644		$	622
Catastrophes, net of reinsurance:
Pre-tax	$	471		$	439		$	117		$	86		$	186
After-tax	$	312		$	285		$	77		$	55		$	122

(1)  In 4Q 2010, “Other revenues” include $(60) million of expenses related to the Company’s purchase and retirement of $885 million of its $1 billion 6.25% fixed-to-floating rate junior subordinated debentures.

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Statutory underwriting
Gross written premiums	$	5,803		$	5,974		$	6,004		$	5,521		$	5,961
Net written premiums	$	5,251		$	5,688		$	5,462		$	5,234		$	5,437
Net earned premiums	$	5,230		$	5,340		$	5,422		$	5,440		$	5,371
Losses and loss adjustment expenses	3,349			3,382			3,185			3,156			3,342
Underwriting expenses	1,708			1,757			1,766			1,725			1,772
Statutory underwriting gain	173			201			471			559			257
Policyholder dividends	8			7			9			6			10
Statutory underwriting gain after policyholder dividends	$	165		$	194		$	462		$	553		$	247
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	40,849		$	40,766		$	40,640		$	40,235		$	40,301
Increase (decrease) in reserves	$	(74	)	$	(83	)	$	(126	)	$	(405	)	$	66
Statutory surplus	$	21,607		$	21,077		$	20,868		$	20,066		$	20,588
Net written premiums/surplus (1)	0.99:1			1.02:1			1.03:1			1.08:1			1.06:1

(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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Written premiums
Gross	$	5,803		$	5,974		$	6,004		$	5,521		$	5,961
Ceded	(552		)	(286		)	(542		)	(287		)	(524		)
Net	$	5,251		$	5,688		$	5,462		$	5,234		$	5,437
Earned premiums
Gross	$	5,697		$	5,770		$	5,864		$	5,866		$	5,804
Ceded	(467		)	(430		)	(442		)	(426		)	(433		)
Net	$	5,230		$	5,340		$	5,422		$	5,440		$	5,371

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Revenues
Premiums	$	2,628		$	2,663		$	2,736		$	2,739		$	2,745
Net investment income	528			537			514			577			556
Fee income	79			76			64			66			74
Other revenues	6			7			10			5			9
Total revenues	3,241			3,283			3,324			3,387			3,384
Claims and expenses
Claims and claim adjustment expenses	1,583			1,621			1,683			1,617			1,773
Amortization of deferred acquisition costs	425			439			448			437			444
General and administrative expenses	481			469			463			491			473
Total claims and expenses	2,489			2,529			2,594			2,545			2,690
Operating income before federal income taxes	752			754			730			842			694
Income taxes	185			187			187			218			90
Operating income	$	567		$	567		$	543		$	624		$	604
Other statistics
Effective tax rate on net investment income	18.6		%	18.8		%	18.5		%	20.3		%	20.0		%
Net investment income (after-tax)	$	430		$	435		$	420		$	459		$	445
Catastrophes, net of reinsurance:
Pre-tax	$	135		$	179		$	53		$	70		$	112
After-tax	$	88		$	116		$	35		$	45		$	73

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Underwriting gain	$	132		$	127		$	116		$	161		$	153
Net investment income	430			435			420			459			445
Other	5			5			7			4			6
Operating income	$	567		$	567		$	543		$	624		$	604
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	58.7		%	59.5		%	60.5		%	57.8		%	63.1		%
Underwriting expense ratio	32.7		%	32.3		%	31.6		%	32.3		%	31.8		%
Combined ratio	91.4		%	91.8		%	92.1		%	90.1		%	94.9		%
Impact of catastrophes on combined ratio	5.1		%	6.7		%	2.0		%	2.6		%	4.1		%
Impact of prior year reserve development on combined ratio	-9.2		%	-11.3		%	-3.8		%	-9.3		%	-5.2		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Billing and policy fees	$	4	$	4	$	5	$	4	$	5
Fee income:
Loss and loss adjustment expenses	$	36	$	31	$	23	$	28	$	33
Underwriting expenses	43		45		41		38		41
Total fee income	$	79	$	76	$	64	$	66	$	74

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)

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Statutory underwriting
Gross written premiums	$	3,118	$	2,996	$	3,027	$	2,750	$	3,306
Net written premiums	$	2,834	$	2,795	$	2,651	$	2,577	$	3,020
Net earned premiums	$	2,628	$	2,663	$	2,736	$	2,739	$	2,745
Losses and loss adjustment expenses	1,547		1,586		1,659		1,583		1,736
Underwriting expenses	866		869		867		854		899
Statutory underwriting gain	215		208		210		302		110
Policyholder dividends	4		6		5		6		7
Statutory underwriting gain after policyholder dividends	$	211	$	202	$	205	$	296	$	103

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)

	1Q		2Q		3Q		4Q			1Q
	2010		2010		2010		2010			2011
Net written premiums by market
Select Accounts	$	702	$	716	$	664	$	636		$	732
Commercial Accounts	706		581		655		634			822
National Accounts	226		194		173		213			211
Industry-Focused Underwriting	569		584		590		556			628
Target Risk Underwriting	412		469		342		350			413
Specialized Distribution	215		247		222		188			209
Total core	2,830		2,791		2,646		2,577			3,015
Business Insurance other	4		4		5		—			5
Total	$	2,834	$	2,795	$	2,651	$	2,577		$	3,020
Net written premiums by product line
Commercial multi-peril	$	784	$	752	$	728	$	731		$	841
Workers’ compensation	725		600		635		626			854
Commercial automobile	483		492		494		441			493
Property	430		493		360		358			414
General liability	412		458		434		422			415
Other	—		—		—		(1		)	3
Total	$	2,834	$	2,795	$	2,651	$	2,577		$	3,020
National accounts
Additions to claim volume under administration (1)	$	536	$	399	$	348	$	496		$	540
Written fees	$	74	$	64	$	57	$	62		$	73

(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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Revenues
Premiums	$	824		$	855		$	820		$	818		$	773
Net investment income	111			110			110			108			106
Fee income	—			—			—			2			—
Other revenues	6			7			7			7			7
Total revenues	941			972			937			935			886
Claims and expenses
Claims and claim adjustment expenses	516			414			350			420			433
Amortization of deferred acquisition costs	153			153			154			152			147
General and administrative expenses	149			148			153			158			160
Total claims and expenses	818			715			657			730			740
Operating income before federal income taxes	123			257			280			205			146
Income taxes	37			85			68			55			26
Operating income	$	86		$	172		$	212		$	150		$	120
Other statistics
Effective tax rate on net investment income	21.0		%	20.7		%	20.6		%	20.5		%	21.2		%
Net investment income (after-tax)	$	87		$	89		$	86		$	86		$	84
Catastrophes, net of reinsurance (1):
Pre-tax	$	86		$	3		$	(2	)	$	(5	)	$	21
After-tax	$	62		$	2		$	(2	)	$	(3	)	$	15

(1)  In 3Q 2010 and 4Q 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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Underwriting gain (loss)	$	(5	)	$	79		$	121		$	59		$	32
Net investment income	87			89			86			86			84
Other	4			4			5			5			4
Operating income	$	86		$	172		$	212		$	150		$	120
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	62.3		%	48.1		%	42.2		%	51.2		%	55.6		%
Underwriting expense ratio	36.6		%	35.2		%	37.4		%	38.0		%	39.7		%
Combined ratio	98.9		%	83.3		%	79.6		%	89.2		%	95.3		%
Impact of catastrophes on combined ratio	10.4		%	0.4		%	-0.3		%	-0.6		%	2.7		%
Impact of prior year reserve development on combined ratio	-4.2		%	-8.4		%	-11.8		%	-6.8		%	-5.1		%

(1)  Before policyholder dividends.

(2)  Fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses as follows:

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Fee income:
Loss and loss adjustment expenses	$	—	$	—	$	—	$	2	$	—
Underwriting expenses	—		—		—		—		—
Total fee income	$	—	$	—	$	—	$	2	$	—

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)

	1Q			2Q		3Q		4Q		1Q
	2010			2010		2010		2010		2011
Statutory underwriting
Gross written premiums	$	898		$	915	$	852	$	869	$	810
Net written premiums	$	681		$	889	$	808	$	833	$	624
Net earned premiums	$	824		$	855	$	820	$	818	$	773
Losses and loss adjustment expenses	513			412		346		420		430
Underwriting expenses	308			303		291		290		309
Statutory underwriting gain	3			140		183		108		34
Policyholder dividends	4			1		4		—		3
Statutory underwriting gain (loss) after policyholder dividends	$	(1	)	$	139	$	179	$	108	$	31

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)

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Net written premiums by market
Bond & Financial Products	$	362	$	559	$	547	$	513	$	369
International	319		330		261		320		255
Total	$	681	$	889	$	808	$	833	$	624
Net written premiums by product line
General liability	$	132	$	232	$	242	$	246	$	138
Fidelity & surety	194		292		273		236		196
International	319		330		261		320		255
Other	36		35		32		31		35
Total	$	681	$	889	$	808	$	833	$	624

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Revenues
Premiums	$	1,778		$	1,822		$	1,866		$	1,883		$	1,853
Net investment income	114			115			111			124			117
Other revenues	20			18			18			19			18
Total revenues	1,912			1,955			1,995			2,026			1,988
Claims and expenses
Claims and claim adjustment expenses	1,289			1,384			1,180			1,153			1,176
Amortization of deferred acquisition costs	351			358			364			368			357
General and administrative expenses	207			210			215			235			235
Total claims and expenses	1,847			1,952			1,759			1,756			1,768
Operating income before federal income taxes	65			3			236			270			220
Income taxes	6			(16		)	68			76			50
Operating income	$	59		$	19		$	168		$	194		$	170
Other statistics
Effective tax rate on net investment income	18.6		%	18.7		%	18.5		%	20.0		%	20.0		%
Net investment income (after-tax)	$	93		$	93		$	91		$	99		$	93
Catastrophes, net of reinsurance:
Pre-tax	$	250		$	257		$	66		$	21		$	53
After-tax	$	162		$	167		$	44		$	13		$	34

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Underwriting gain (loss)	$	(47	)	$	(87	)	$	65		$	83		$	64
Net investment income	93			93			91			99			93
Other	13			13			12			12			13
Operating income	$	59		$	19		$	168		$	194		$	170
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	72.5		%	76.0		%	63.2		%	61.2		%	63.4		%
Underwriting expense ratio	30.1		%	29.9		%	29.9		%	30.9		%	30.8		%
Combined ratio	102.6		%	105.9		%	93.1		%	92.1		%	94.2		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	100.9		%	104.0		%	90.6		%	89.1		%	91.4		%
Impact of catastrophes on combined ratio	14.0		%	14.0		%	3.6		%	1.1		%	2.8		%
Impact of prior year reserve development on combined ratio	-1.0		%	-0.5		%	-1.2		%	-2.0		%	-3.0		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Billing and policy fees	$	23	$	21	$	22	$	21	$	21

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)

	1Q			2Q			3Q		4Q		1Q
	2010			2010			2010		2010		2011
Statutory underwriting
Gross written premiums	$	1,787		$	2,063		$	2,125	$	1,902	$	1,845
Net written premiums	$	1,736		$	2,004		$	2,003	$	1,824	$	1,793
Net earned premiums	$	1,778		$	1,822		$	1,866	$	1,883	$	1,853
Losses and loss adjustment expenses	1,289			1,384			1,180		1,153		1,176
Underwriting expenses	534			585			608		581		564
Statutory underwriting gain (loss)	$	(45	)	$	(147	)	$	78	$	149	$	113
Policies in force (in thousands)
Automobile	2,489			2,516			2,536		2,547		2,559
Homeowners and other	5,030			5,100			5,143		5,165		5,183

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Statutory underwriting
Gross written premiums	$	917		$	951		$	958		$	894		$	923
Net written premiums	$	913		$	945		$	952		$	888		$	918
Net earned premiums	$	892		$	905		$	914		$	918		$	896
Losses and loss adjustment expenses	613			638			628			674			620
Underwriting expenses	249			254			254			250			249
Statutory underwriting gain (loss)	$	30		$	13		$	32		$	(6	)	$	27
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	68.7		%	70.5		%	68.7		%	73.4		%	69.2		%
Underwriting expense ratio	26.7		%	26.9		%	26.2		%	26.9		%	26.6		%
Combined ratio	95.4		%	97.4		%	94.9		%	100.3		%	95.8		%
Impact of catastrophes on combined ratio	0.8		%	1.6		%	0.3		%	0.5		%	0.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	7		$	14		$	3		$	4		$	1
After-tax	$	4		$	10		$	2		$	2		$	—
Policies in force (in thousands)	2,447			2,468			2,482			2,490			2,497
Change from prior year quarter	-1.7		%	0.1		%	1.3		%	1.9		%	2.0		%
Change from prior quarter	0.2		%	0.9		%	0.6		%	0.3		%	0.3		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Billing and policy fees	$	13	$	11	$	12	$	12	$	12

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Statutory underwriting
Gross written premiums	$	849		$	1,089		$	1,140		$	982		$	891
Net written premiums	$	803		$	1,035		$	1,024		$	910		$	845
Net earned premiums	$	870		$	897		$	930		$	942		$	932
Losses and loss adjustment expenses	662			729			534			459			532
Underwriting expenses	252			292			305			276			263
Statutory underwriting gain (loss)	$	(44	)	$	(124	)	$	91		$	207		$	137
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio	76.1		%	81.3		%	57.4		%	48.7		%	57.1		%
Underwriting expense ratio	30.6		%	29.4		%	28.9		%	29.5		%	30.0		%
Combined ratio	106.7		%	110.7		%	86.3		%	78.2		%	87.1		%
Impact of catastrophes on combined ratio	27.9		%	26.8		%	6.9		%	1.6		%	5.6		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	242		$	241		$	64		$	15		$	52
After-tax	$	158		$	156		$	41		$	10		$	34
Policies in force (in thousands)	5,000			5,064			5,103			5,121			5,135
Change from prior year quarter	3.1		%	3.6		%	3.6		%	3.3		%	2.7		%
Change from prior quarter	0.8		%	1.3		%	0.8		%	0.4		%	0.3		%

(1)  Represents Homeowners and Other Lines sold through agents, brokers and other intermediaries, and excludes direct to consumer.

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

Billing and policy fees are as follows:

	1Q		2Q		3Q		4Q		1Q
	2010		2010		2010		2010		2011
Billing and policy fees	$	10	$	9	$	10	$	9	$	9

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Revenues
Other revenues (1)	$	—		$	—		$	—		$	(60	)	$	—
Claims and expenses
Interest expense	98			97			95			98			96
General and administrative expenses	10			5			6			6			15
Total claims and expenses	108			102			101			104			111
Operating loss before federal income tax benefit	(108		)	(102		)	(101		)	(164		)	(111		)
Income taxes	(27		)	(34		)	(36		)	(60		)	(43		)
Operating loss	$	(81	)	$	(68	)	$	(65	)	$	(104	)	$	(68	)

(1)  In 4Q 2010, “Other revenues” include $(60) million of expenses related to the Company’s purchase and retirement of $885 million of its $1 billion 6.25% fixed-to-floating rate junior subordinated debentures.

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

21

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

	March 31,		December 31,
	2011 (1)		2010
Assets
Fixed maturities, available for sale, at fair value (including $164 and $186 subject to securities lending) (amortized cost $59,720 and $60,170)	$	62,276	$	62,820
Equity securities, available for sale, at fair value (cost $421 and $372)	583		519
Real estate	866		838
Short-term securities	5,652		5,616
Other investments	3,014		2,929
Total investments	72,391		72,722
Cash	239		200
Investment income accrued	736		791
Premiums receivable	5,668		5,497
Reinsurance recoverables	11,786		11,994
Ceded unearned premiums	911		813
Deferred acquisition costs	1,801		1,782
Deferred tax asset	357		493
Contractholder receivables	5,271		5,343
Goodwill	3,365		3,365
Other intangible assets	482		502
Other assets	2,245		2,154
Total assets	$	105,252	$	105,656

	March 31,			December 31,
	2011 (1)			2010
Liabilities
Claims and claim adjustment expense reserves	$	51,440		$	51,606
Unearned premium reserves	11,116			10,921
Contractholder payables	5,271			5,343
Payables for reinsurance premiums	513			407
Debt	6,611			6,611
Other liabilities	5,058			5,293
Total liabilities	80,009			80,181
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.2 shares issued and outstanding)	66			68
Common stock (1,748.6 shares authorized; 420.3 and 434.6 shares issued and outstanding)	20,370			20,162
Retained earnings	19,538			18,847
Accumulated other changes in equity from nonowner sources	1,272			1,255
Treasury stock, at cost (316.3 and 296.6 shares)	(16,003		)	(14,857		)
Total shareholders’ equity	25,243			25,475
Total liabilities and shareholders’ equity	$	105,252		$	105,656

(1)  Preliminary.

Note:  Certain reclassifications have been made to the 2010 consolidated balance sheet to conform to the 2011 presentation.

22

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

	March 31,		Pre-tax Book		December 31,		Pre-tax Book
	2011		Yield (1)		2010		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	23,821	4.66	%	$	23,790	4.80	%
Tax-exempt fixed maturities	38,455		4.04	%	39,030		4.03	%
Total fixed maturities	62,276		4.28	%	62,820		4.32	%
Non-redeemable preferred stocks	220		6.44	%	215		6.47	%
Common stocks	363				304
Total equity securities	583				519
Real estate	866				838
Short-term securities	5,652		0.20	%	5,616		0.19	%
Private equities	1,784				1,725
Hedge funds	526				512
Real estate partnerships	589				580
Mortgage loans	37		6.22	%	34		6.28	%
Trading securities	24				23
Other investments	54				55
Total other investments	3,014				2,929
Total investments	$	72,391			$	72,722
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	1,816			$	1,858

(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)

	March 31,		December 31,
	2011		2010
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,194	$	2,008
Obligations of states and political subdivisions:
Pre-refunded	7,167		7,291
All other	31,781		32,244
Total	38,948		39,535
Debt securities issued by foreign governments	2,049		2,202
Mortgage-backed securities - principally obligations of U.S. Government agencies	3,929		4,164
Corporates (including redeemable preferreds)	15,156		14,911
Total fixed maturities	$	62,276	$	62,820

Fixed Maturities

Quality Characteristics (1)

	March 31, 2011
	Amount		% of Total
Quality Ratings
Aaa	$	29,156	46.8	%
Aa	20,151		32.4
A	6,565		10.5
Baa	4,542		7.3
Total investment grade	60,414		97.0
Ba	846		1.4
B	572		0.9
Caa and lower	444		0.7
Total below investment grade	1,862		3.0
Total fixed maturities	$	62,276	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	3.6

(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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Gross investment income
Fixed maturities	$	691		$	678		$	674		$	667		$	642
Short-term securities	3			3			3			4			4
Other	66			89			65			150			140
	760			770			742			821			786
Investment expenses	7			8			7			12			7
Net investment income, pre-tax	753			762			735			809			779
Income taxes	143			145			138			165			157
Net investment income, after-tax	$	610		$	617		$	597		$	644		$	622
Effective tax rate	18.9		%	19.1		%	18.8		%	20.3		%	20.2		%
Average invested assets (1)	$	72,659		$	71,294		$	70,929		$	71,359		$	70,771
Average yield pre-tax (1)	4.1		%	4.3		%	4.1		%	4.5		%	4.4		%
Average yield after-tax	3.4		%	3.5		%	3.4		%	3.6		%	3.5		%

(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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Net realized investment gains (losses)
Fixed maturities	$	22		$	17		$	25		$	18		$	10
Equity securities (1)	8			3			104			10			1
Other (1) (2)	(5		)	(51		)	97			16			9
Realized investment gains (losses) before tax	25			(31		)	226			44			20
Related taxes	9			(11		)	79			14			7
Net realized investment gains (losses)	$	16		$	(20	)	$	147		$	30		$	13
Gross investment gains (2)	$	89		$	75		$	322		$	108		$	109
Gross investment losses before impairments (2)	(54		)	(102		)	(90		)	(58		)	(85		)
Net investment gains (losses) before impairments	35			(27		)	232			50			24
Other-than-temporary impairment losses:
Total gains (losses)	(1		)	2			8			(2		)	2
Non-credit component of impairments recognized in accumulated other changes in equity from nonowner sources	(9		)	(6		)	(14		)	(4		)	(6		)
Other-than-temporary impairment losses	(10		)	(4		)	(6		)	(6		)	(4		)
Net realized investment gains (losses) before tax	25			(31		)	226			44			20
Related taxes	9			(11		)	79			14			7
Net realized investment gains (losses)	$	16		$	(20	)	$	147		$	30		$	13

	March 31,		June 30,		September 30,		December 31,		March 31,
	2010		2010		2010		2010		2011
Net unrealized investment gains, net of tax, by asset type
Fixed maturities	$	2,653	$	3,330	$	4,399	$	2,650	$	2,556
Equity securities & other	296		296		160		175		208
Unrealized investment gains before tax	2,949		3,626		4,559		2,825		2,764
Related taxes	1,011		1,245		1,569		967		948
Balance, end of period	$	1,938	$	2,381	$	2,990	$	1,858	$	1,816

(1)  In 3Q 2010, the Company sold most of its remaining common stock holdings in Verisk Analytics, Inc. (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	$	26	$	37	$	52	$	73	$	47
Gross investment Treasury future losses	$	33	$	63	$	71	$	51	$	47

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)

	March 31,			December 31,
	2011			2010
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	6,739		$	6,934
Allowance for uncollectible reinsurance	(362		)	(363		)
Net reinsurance recoverables	6,377			6,571
Mandatory pools and associations (1)	2,056			2,043
Structured settlements	3,353			3,380
Total reinsurance recoverables	$	11,786		$	11,994

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

	A.M. Best Rating of Group’s	March 31,		December 31,
Reinsurer	Predominant Reinsurer	2011		2010
Munich Re Group	A+ second highest of 16 ratings	$	741	$	744
Swiss Re Group	A third highest of 16 ratings	673		707
Transatlantic Holdings, Inc.	A third highest of 16 ratings	381		385
Berkshire Hathaway Group	A++ highest of 16 ratings	329		319
XL Capital Group	A third highest of 16 ratings	311		320

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 March 31, 2011, after deducting mandatory pools and associations and structured settlement balances, $5.0 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: 6% related to the Company’s participation in voluntary pools, 10% related to recoverables from captive insurance companies and 5% were balances from other companies not rated by A.M. Best Company. In addition, $2.0 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at March 31, 2011.

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	March 31,		December 31,
Group	Predominant Insurer	2011		2010
Old Mutual U.S. Life Holdings, Inc. (2)	B++ fifth highest of 16 ratings	$	1,016	$	1,028
Metlife	A+ second highest of 16 ratings	506		508
Genworth	A third highest of 16 ratings	455		458
Symetra	A third highest of 16 ratings	270		272
ING Group	A third highest of 16 ratings	227		229

(1)  Includes impact from certain reclassifications made to 2010 amounts to conform to 2011 presentation.

(2)  In April 2011, Old Mutual plc, a U.K. company, completed the sale of Old Mutual U.S. Life Holdings, Inc., its U.S. life insurance subsidiary, to Harbinger Group Inc.

27

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

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Business Insurance
Beginning of period	$	31,289		$	31,079		$	30,900		$	30,752		$	30,505
Incurred	1,547			1,586			1,659			1,583			1,736
Paid	(1,747		)	(1,751		)	(1,822		)	(1,832		)	(1,759		)
Foreign exchange and other	(10		)	(14		)	15			2			7
End of period	$	31,079		$	30,900		$	30,752		$	30,505		$	30,489
Financial, Professional & International Insurance
Beginning of period	$	6,003		$	6,022		$	5,995		$	6,125		$	6,068
Incurred	513			412			346			420			430
Paid	(443		)	(363		)	(312		)	(478		)	(294		)
Foreign exchange and other	(51		)	(76		)	96			1			63
End of period	$	6,022		$	5,995		$	6,125		$	6,068		$	6,267
Personal Insurance
Beginning of period	$	3,631		$	3,748		$	3,871		$	3,763		$	3,662
Incurred	1,289			1,384			1,180			1,153			1,176
Paid	(1,172		)	(1,261		)	(1,288		)	(1,254		)	(1,293		)
End of period	$	3,748		$	3,871		$	3,763		$	3,662		$	3,545
Total
Beginning of period	$	40,923		$	40,849		$	40,766		$	40,640		$	40,235
Incurred	3,349			3,382			3,185			3,156			3,342
Paid	(3,362		)	(3,375		)	(3,422		)	(3,564		)	(3,346		)
Foreign exchange and other	(61		)	(90		)	111			3			70
End of period	$	40,849		$	40,766		$	40,640		$	40,235		$	40,301
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	140		$	—		$	—
Environmental	—			35			—			—			—
All other	(242		)	(338		)	(242		)	(254		)	(143		)
Prior year development excluding accretion of discount	(242		)	(303		)	(102		)	(254		)	(143		)
Accretion of discount	11			12			11			11			11
Total Business Insurance	(231		)	(291		)	(91		)	(243		)	(132		)
Financial, Professional & International Insurance	(34		)	(72		)	(97		)	(56		)	(39		)
Personal Insurance	(18		)	(9		)	(23		)	(37		)	(55		)
Total	$	(283	)	$	(372	)	$	(211	)	$	(336	)	$	(226	)

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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Asbestos reserves
Beginning reserves:
Direct	$	3,097		$	3,004		$	2,867		$	3,058		$	2,941
Ceded	(339		)	(320		)	(274		)	(400		)	(393		)
Net	2,758			2,684			2,593			2,658			2,548
Incurred losses and loss expenses:
Direct	—			—			262			—			—
Ceded	—			—			(122		)	—			—
Losses paid:
Direct	93			137			71			117			65
Ceded	(19		)	(46		)	4			(7		)	(19		)
Ending reserves:
Direct	3,004			2,867			3,058			2,941			2,876
Ceded	(320		)	(274		)	(400		)	(393		)	(374		)
Net	$	2,684		$	2,593		$	2,658		$	2,548		$	2,502
Environmental reserves
Beginning reserves:
Direct	$	389		$	373		$	399		$	383		$	354
Ceded	4			4			(6		)	(6		)	(3		)
Net	393			377			393			377			351
Incurred losses and loss expenses:
Direct	—			45			—			—			—
Ceded	—			(10		)	—			—			—
Losses paid:
Direct	16			19			16			29			15
Ceded	—			—			—			(3		)	—
Ending reserves:
Direct	373			399			383			354			339
Ceded	4			(6		)	(6		)	(3		)	(3		)
Net	$	377		$	393		$	377		$	351		$	336

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

29

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

	March 31,			December 31,
	2011			2010
Debt
Short-term debt
Commercial paper	$	100		$	100
7.22% Real estate non-recourse debt due September 1, 2011	9			9
Total short-term debt	109			109
Long-term debt
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
3.90% Senior notes due November 1, 2020 (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
5.35% Senior notes due November 1, 2040 (1)	750			750
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)	115			115
Total long-term debt	6,519			6,519
Unamortized fair value adjustment	53			54
Unamortized debt issuance costs	(70		)	(71		)
	6,502			6,502
Total debt	6,611			6,611
Preferred equity	66			68
Common equity (excluding net unrealized investment gains, net of tax)	23,361			23,549
Total capital (excluding net unrealized investment gains, net of tax)	$	30,038		$	30,228
Total debt to capital (excluding net unrealized investment gains, net of tax)	22.0		%	21.9		%

(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)

	March 31,			December 31,
	2011 (1)			2010
Statutory surplus	$	20,588		$	20,066
GAAP adjustments
Goodwill and intangible assets	3,662			3,679
Investments	3,143			3,179
Noninsurance companies	(3,626		)	(2,963		)
Deferred acquisition costs	1,801			1,782
Deferred federal income tax	(1,305		)	(1,238		)
Current federal income tax	(36		)	(100		)
Reinsurance recoverables	244			244
Furniture, equipment & software	681			690
Employee benefits	(13		)	(11		)
Agents balances	109			110
Other	(5		)	37
Total GAAP adjustments	4,655			5,409
GAAP shareholders’ equity	$	25,243		$	25,475

(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)

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Cash flows from operating activities
Net income	$	647		$	670		$	1,005		$	894		$	839
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(25		)	31			(226		)	(44		)	(20		)
Depreciation and amortization	216			195			197			204			208
Deferred federal income tax expense (benefit)	76			(25		)	98			29			153
Amortization of deferred acquisition costs	929			950			966			957			948
Equity in income from other investments	(45		)	(71		)	(45		)	(122		)	(122		)
Premiums receivable	(97		)	(285		)	154			199			(167		)
Reinsurance recoverables	86			442			226			546			218
Deferred acquisition costs	(939		)	(991		)	(998		)	(898		)	(964		)
Claims and claim adjustment expense reserves	(224		)	(468		)	(420		)	(856		)	(251		)
Unearned premium reserves	86			184			148			(355		)	175
Other	(179		)	(112		)	236			108			(384		)
Net cash provided by operating activities	531			520			1,341			662			633
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,229			1,249			1,403			2,015			1,849
Proceeds from sales of investments:
Fixed maturities	1,646			1,135			500			432			490
Equity securities	19			8			130			44			8
Real estate	9			1			—			—			—
Other investments	114			75			237			291			161
Purchases of investments:
Fixed maturities	(2,175		)	(1,765		)	(1,227		)	(1,618		)	(1,824		)
Equity securities	(5		)	(14		)	(10		)	(32		)	(51		)
Real estate	(3		)	(5		)	(7		)	(6		)	(30		)
Other investments	(104		)	(123		)	(146		)	(141		)	(107		)
Net (purchases) sales of short-term securities	202			848			(1,116		)	(633		)	(31		)
Securities transactions in course of settlement	95			(93		)	(242		)	210			134
Other	(75		)	(70		)	(75		)	(98		)	(69		)
Net cash provided by (used in) investing activities	952			1,246			(553		)	464			530

32

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

	1Q			2Q			3Q			4Q			1Q
	2010			2010			2010			2010			2011
Cash flows from financing activities
Payment of debt	—			(250		)	(25		)	(885		)	—
Issuance of debt	—			—			—			1,234			—
Dividends paid to shareholders	(168		)	(175		)	(169		)	(161		)	(155		)
Issuance of common stock - employee share options	123			76			68			141			168
Treasury stock acquired - share repurchase authorization	(1,407		)	(1,397		)	(637		)	(1,557		)	(1,104		)
Treasury stock acquired - net employee share-based compensation	(38		)	(2		)	—			—			(44		)
Excess tax benefits from share-based payment arrangements	4			1			1			2			7
Net cash used in financing activities	(1,486		)	(1,747		)	(762		)	(1,226		)	(1,128		)
Effect of exchange rate changes on cash	(1		)	(4		)	6			2			4
Net increase (decrease) in cash	(4		)	15			32			(98		)	39
Cash at beginning of period	255			251			266			298			200
Cash at end of period	$	251		$	266		$	298		$	200		$	239
Income taxes paid	$	44		$	265		$	202		$	273		$	112
Interest paid	$	63		$	137		$	63		$	134		$	35

33

The Travelers Companies, Inc. Financial Supplement - First Quarter 2011 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 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 Partner Services; and Specialized Distribution including Northland and National Programs.  Business Insurance also includes the Special Liability Group (which manages the Company’s asbestos and environmental liabilities) and the assumed reinsurance, and certain international and other runoff operations, which collectively are referred to as Business Insurance Other.

Financial, Professional & International Insurance - The Financial, Professional & International Insurance segment includes surety and management liability coverages, which require a primarily credit-based underwriting process, as well as property and casualty products that are primarily marketed on a domestic basis in the United Kingdom, Ireland and Canada, and on an international basis through Lloyd’s.  The businesses in Financial, Professional & International Insurance are Bond & Financial Products and International.

Personal Insurance - The Personal Insurance segment writes virtually all types of property and casualty insurance covering personal risks.  The primary coverages in this segment are personal automobile and homeowners insurance sold to individuals.

34