Exhibit 99.2

The Travelers Companies, Inc. Financial Supplement - Second Quarter 2013

	Page Number
Consolidated Results
Financial Highlights	1
Reconciliation to Net Income and Earnings Per Share	2
Statement of Income	3
Net Income by Major Component and Combined Ratio	4
Operating Income	5
Selected Statistics - Property and Casualty Operations	6
Written and Earned Premiums - Property and Casualty Operations	7
Business Insurance
Operating Income	8
Operating Income by Major Component and Combined Ratio	9
Selected Statistics	10
Net Written Premiums	11
Financial, Professional & International Insurance
Operating Income	12
Operating Income by Major Component and Combined Ratio	13
Selected Statistics	14
Net Written Premiums	15
Personal Insurance
Operating Income (Loss)	16
Operating Income (Loss) by Major Component and Combined Ratio	17
Selected Statistics	18
Selected Statistics - Agency Automobile	19
Selected Statistics - Agency Homeowners and Other	20
Selected Statistics - Direct to Consumer	21
Supplemental Detail
Interest Expense and Other	22
Consolidated Balance Sheet	23
Investment Portfolio	24
Investment Portfolio - Fixed Maturities Data	25
Investment Income	26
Net Realized and Unrealized Investment Gains	27
Reinsurance Recoverables	28
Net Reserves for Losses and Loss Adjustment Expense	29
Asbestos and Environmental Reserves	30
Capitalization	31
Statutory to GAAP Shareholders’ Equity Reconciliation	32
Statement of Cash Flows	33
Statement of Cash Flows (continued)	34
Glossary of Financial Measures and Description of Reportable Business Segments	35

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

Index

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	1,305		$	1,821
Net income per share:
Basic	$	2.04		$	1.27		$	2.23		$	0.79		$	2.36		$	2.44		$	3.32		$	4.80
Diluted	$	2.02		$	1.26		$	2.21		$	0.78		$	2.33		$	2.41		$	3.29		$	4.75
Operating income	$	801		$	495		$	867		$	278		$	887		$	816		$	1,296		$	1,703
Operating income per share:
Basic	$	2.03		$	1.27		$	2.24		$	0.72		$	2.33		$	2.15		$	3.30		$	4.49
Diluted	$	2.01		$	1.26		$	2.22		$	0.72		$	2.31		$	2.13		$	3.27		$	4.44
Return on equity	13.1		%	8.0		%	13.6		%	4.7		%	14.1		%	14.6		%	10.5		%	14.4		%
Operating return on equity	14.7		%	9.0		%	15.5		%	5.0		%	15.8		%	14.2		%	11.8		%	15.0		%
Total assets, at period end	$	104,838		$	104,330		$	105,445		$	104,938		$	103,897		$	101,900		$	104,330		$	101,900
Total equity, at period end	$	24,872		$	25,049		$	25,905		$	25,405		$	25,596		$	24,890		$	25,049		$	24,890
Book value per share, at period end	$	63.81		$	64.90		$	67.81		$	67.31		$	68.00		$	66.65		$	64.90		$	66.65
Less: Net unrealized investment gains, net of tax	7.28			7.72			8.68			8.22			7.61			4.53			7.72			4.53
Adjusted book value per share, at period end	$	56.53		$	57.18		$	59.13		$	59.09		$	60.39		$	62.12		$	57.18		$	62.12
Weighted average number of common shares outstanding (basic)	392.0			388.0			384.0			381.0			377.7			375.9			390.0			376.8
Weighted average number of common shares outstanding and common stock equivalents (diluted)	395.8			391.6			387.9			385.3			381.9			379.9			393.5			380.8
Common shares outstanding at period end	389.8			386.0			382.0			377.4			376.4			373.5			386.0			373.5
Common stock dividends declared	$	162		$	181		$	179		$	178		$	176		$	191		$	343		$	367
Common stock repurchased:
Under Board of Directors authorization
Shares	6.0			5.6			5.4			5.4			3.7			3.6			11.6			7.3
Cost	$	350		$	350		$	350		$	400		$	300		$	300		$	700		$	600
Other
Shares	0.8			—			—			0.1			0.7			—			0.8			0.7
Cost	$	52		$	1		$	—		$	2		$	58		$	1		$	53		$	59

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

1

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

														YTD		YTD
	1Q		2Q		3Q			4Q		1Q		2Q		2Q		2Q
	2012		2012		2012			2012		2013		2013		2012		2013
Net income
Operating income	$	801	$	495	$	867		$	278	$	887	$	816	$	1,296	$	1,703
Net realized investment gains (losses)	5		4		(3		)	26		9		109		9		118
Net income	$	806	$	499	$	864		$	304	$	896	$	925	$	1,305	$	1,821
Basic earnings per share
Operating income	$	2.03	$	1.27	$	2.24		$	0.72	$	2.33	$	2.15	$	3.30	$	4.49
Net realized investment gains (losses)	0.01		—		(0.01		)	0.07		0.03		0.29		0.02		0.31
Net income	$	2.04	$	1.27	$	2.23		$	0.79	$	2.36	$	2.44	$	3.32	$	4.80
Diluted earnings per share
Operating income	$	2.01	$	1.26	$	2.22		$	0.72	$	2.31	$	2.13	$	3.27	$	4.44
Net realized investment gains (losses)	0.01		—		(0.01		)	0.06		0.02		0.28		0.02		0.31
Net income	$	2.02	$	1.26	$	2.21		$	0.78	$	2.33	$	2.41	$	3.29	$	4.75

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Basic and Diluted
Net income, as reported	$	806		$	499		$	864		$	304		$	896		$	925		$	1,305		$	1,821
Participating share-based awards - allocated income	(6		)	(4		)	(6		)	(2		)	(6		)	(7		)	(10		)	(14		)
Net income available to common shareholders - basic and diluted	$	800		$	495		$	858		$	302		$	890		$	918		$	1,295		$	1,807
Common Shares
Basic
Weighted average shares outstanding	392.0			388.0			384.0			381.0			377.7			375.9			390.0			376.8
Diluted
Weighted average shares outstanding	392.0			388.0			384.0			381.0			377.7			375.9			390.0			376.8
Weighted average effects of dilutive securities - stock options and performance shares	3.8			3.6			3.9			4.3			4.2			4.0			3.5			4.0
Diluted weighted average shares outstanding	395.8			391.6			387.9			385.3			381.9			379.9			393.5			380.8

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

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

2

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Revenues
Premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	11,052		$	11,120
Net investment income	740			738			722			689			670			687			1,478			1,357
Fee income	82			59			92			90			97			82			141			179
Net realized investment gains (losses)	10			4			(2		)	39			10			167			14			177
Other revenues	37			29			34			20			34			135			66			169
Total revenues	6,392			6,359			6,512			6,477			6,328			6,674			12,751			13,002
Claims and expenses
Claims and claim adjustment expenses	3,364			3,786			3,359			4,167			3,153			3,530			7,150			6,683
Amortization of deferred acquisition costs	971			976			986			977			948			950			1,947			1,898
General and administrative expenses	884			893			904			929			915			931			1,777			1,846
Interest expense	96			96			93			93			92			86			192			178
Total claims and expenses	5,315			5,751			5,342			6,166			5,108			5,497			11,066			10,605
Income before income taxes	1,077			608			1,170			311			1,220			1,177			1,685			2,397
Income tax expense	271			109			306			7			324			252			380			576
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	1,305		$	1,821
Other-than-temporary impairments (OTTI)
Total OTTI gains (losses)	$	—		$	11		$	17		$	(1	)	$	—		$	(1	)	$	11		$	(1	)
OTTI losses recognized in net realized investment gains (losses)	$	(4	)	$	(4	)	$	(3	)	$	(4	)	$	(5	)	$	(2	)	$	(8	)	$	(7	)
OTTI gains recognized in other comprehensive income	$	4		$	15		$	20		$	3		$	5		$	1		$	19		$	6
Other statistics
Effective tax rate on net investment income	19.9		%	20.2		%	20.0		%	19.2		%	19.2		%	19.7		%	20.0		%	19.4		%
Net investment income (after-tax)	$	593		$	589		$	578		$	556		$	542		$	551		$	1,182		$	1,093
Catastrophes, net of reinsurance:
Pre-tax	$	168		$	549		$	91		$	1,054		$	99		$	340		$	717		$	439
After-tax	$	109		$	357		$	59		$	689		$	65		$	221		$	466		$	286
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	304		$	221		$	193		$	222		$	231		$	192		$	525		$	423
After-tax	$	200		$	147		$	129		$	146		$	154		$	125		$	347		$	279

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

3

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Underwriting gain (loss)	$	248		$	(47	)	$	327		$	(232	)	$	385		$	235		$	201		$	620
Net investment income	593			589			578			556			542			551			1,182			1,093
Other, including interest expense	(40		)	(47		)	(38		)	(46		)	(40		)	30			(87		)	(10		)
Operating income	801			495			867			278			887			816			1,296			1,703
Net realized investment gains (losses)	5			4			(3		)	26			9			109			9			118
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	1,305		$	1,821
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.1		%	68.1		%	58.4		%	73.0		%	56.2		%	62.3		%	64.1		%	59.3		%
Underwriting expense ratio	32.1		%	32.4		%	31.9		%	32.4		%	32.3		%	32.0		%	32.2		%	32.1		%
Combined ratio	92.2		%	100.5		%	90.3		%	105.4		%	88.5		%	94.3		%	96.3		%	91.4		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	91.4		%	99.8		%	89.3		%	104.6		%	87.8		%	93.8		%	95.6		%	90.8		%
Impact of catastrophes on combined ratio	3.1		%	10.0		%	1.6		%	18.7		%	1.8		%	6.1		%	6.5		%	3.9		%
Impact of prior year reserve development on combined ratio	-5.5		%	-4.0		%	-3.4		%	-4.0		%	-4.1		%	-3.5		%	-4.8		%	-3.8		%

(1)  Before policyholder dividends.

(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses

and underwriting expenses as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Billing and policy fees and other	$	27	$	25	$	24	$	22	$	24	$	25	$	52	$	49
Fee income:
Loss and loss adjustment expenses	$	35	$	11	$	40	$	38	$	42	$	27	$	46	$	69
Underwriting expenses	47		48		52		52		55		55		95		110
Total fee income	$	82	$	59	$	92	$	90	$	97	$	82	$	141	$	179

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

4

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Revenues
Premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	11,052		$	11,120
Net investment income	740			738			722			689			670			687			1,478			1,357
Fee income	82			59			92			90			97			82			141			179
Other revenues	37			29			34			20			34			135			66			169
Total revenues	6,382			6,355			6,514			6,438			6,318			6,507			12,737			12,825
Claims and expenses
Claims and claim adjustment expenses	3,364			3,786			3,359			4,167			3,153			3,530			7,150			6,683
Amortization of deferred acquisition costs	971			976			986			977			948			950			1,947			1,898
General and administrative expenses	884			893			904			929			915			931			1,777			1,846
Interest expense	96			96			93			93			92			86			192			178
Total claims and expenses	5,315			5,751			5,342			6,166			5,108			5,497			11,066			10,605
Operating income before income taxes	1,067			604			1,172			272			1,210			1,010			1,671			2,220
Income tax expense (benefit)	266			109			305			(6		)	323			194			375			517
Operating income	$	801		$	495		$	867		$	278		$	887		$	816		$	1,296		$	1,703
Other statistics
Effective tax rate on net investment income	19.9		%	20.2		%	20.0		%	19.2		%	19.2		%	19.7		%	20.0		%	19.4		%
Net investment income (after-tax)	$	593		$	589		$	578		$	556		$	542		$	551		$	1,182		$	1,093
Catastrophes, net of reinsurance:
Pre-tax	$	168		$	549		$	91		$	1,054		$	99		$	340		$	717		$	439
After-tax	$	109		$	357		$	59		$	689		$	65		$	221		$	466		$	286
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	304		$	221		$	193		$	222		$	231		$	192		$	525		$	423
After-tax	$	200		$	147		$	129		$	146		$	154		$	125		$	347		$	279

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

5

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

																			YTD		YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q		2Q
	2012			2012			2012			2012			2013			2013			2012		2013
Statutory underwriting
Gross written premiums	$	6,073		$	6,240		$	6,271		$	5,725		$	6,188		$	6,247		$	12,313	$	12,435
Net written premiums	$	5,497		$	5,868		$	5,697		$	5,385		$	5,597		$	5,824		$	11,365	$	11,421
Net earned premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	11,052	$	11,120
Losses and loss adjustment expenses	3,318			3,791			3,310			4,119			3,070			3,490			7,109		6,560
Underwriting expenses	1,797			1,838			1,840			1,780			1,799			1,808			3,635		3,607
Statutory underwriting gain (loss)	408			(100		)	516			(260		)	648			305			308		953
Policyholder dividends	12			11			11			12			10			13			23		23
Statutory underwriting gain (loss) after policyholder dividends	$	396		$	(111	)	$	505		$	(272	)	$	638		$	292		$	285	$	930
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,925	$	40,145
Increase (decrease) in reserves	$	(108	)	$	134		$	(397	)	$	128		$	(441	)	$	(70	)	$	26	$	(511	)
Statutory basis surplus	$	19,867		$	19,841		$	20,291		$	20,048		$	20,692		$	20,672		$	19,841	$	20,672
Net written premiums/surplus (1)	1.12:1			1.12:1			1.10:1			1.12:1			1.09:1			1.09:1			1.12:1		1.09:1

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

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

6

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Written premiums
Gross	$	6,073		$	6,240		$	6,271		$	5,725		$	6,188		$	6,247		$	12,313		$	12,435
Ceded	(576		)	(372		)	(574		)	(340		)	(591		)	(423		)	(948		)	(1,014		)
Net	$	5,497		$	5,868		$	5,697		$	5,385		$	5,597		$	5,824		$	11,365		$	11,421
Earned premiums
Gross	$	5,973		$	5,985		$	6,132		$	6,110		$	5,985		$	6,091		$	11,958		$	12,076
Ceded	(450		)	(456		)	(466		)	(471		)	(468		)	(488		)	(906		)	(956		)
Net	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	11,052		$	11,120

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

7

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Revenues
Premiums	$	2,876		$	2,860		$	2,982		$	2,973		$	2,942		$	3,018		$	5,736		$	5,960
Net investment income	532			536			524			498			487			502			1,068			989
Fee income	82			58			92			90			97			82			140			179
Other revenues	14			8			9			9			13			114			22			127
Total revenues	3,504			3,462			3,607			3,570			3,539			3,716			6,966			7,255
Claims and expenses
Claims and claim adjustment expenses	1,709			2,049			1,906			2,193			1,749			2,008			3,758			3,757
Amortization of deferred acquisition costs	467			465			477			475			475			481			932			956
General and administrative expenses	498			504			504			514			517			511			1,002			1,028
Total claims and expenses	2,674			3,018			2,887			3,182			2,741			3,000			5,692			5,741
Operating income before income taxes	830			444			720			388			798			716			1,274			1,514
Income tax expense	218			82			177			62			208			137			300			345
Operating income	$	612		$	362		$	543		$	326		$	590		$	579		$	974		$	1,169
Other statistics
Effective tax rate on net investment income	20.0		%	20.3		%	20.1		%	19.1		%	19.2		%	19.8		%	20.2		%	19.5		%
Net investment income (after-tax)	$	425		$	428		$	419		$	402		$	394		$	402		$	853		$	796
Catastrophes, net of reinsurance:
Pre-tax	$	53		$	252		$	50		$	439		$	35		$	148		$	305		$	183
After-tax	$	34		$	164		$	33		$	285		$	23		$	96		$	198		$	119
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	248		$	58		$	41		$	120		$	113		$	55		$	306		$	168
After-tax	$	162		$	38		$	27		$	78		$	75		$	36		$	200		$	111

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

8

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Underwriting gain (loss)	$	177		$	(71	)	$	117		$	(82	)	$	188		$	102		$	106		$	290
Net investment income	425			428			419			402			394			402			853			796
Other	10			5			7			6			8			75			15			83
Operating income	$	612		$	362		$	543		$	326		$	590		$	579		$	974		$	1,169
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	57.8		%	71.0		%	62.3		%	72.2		%	57.7		%	65.3		%	64.4		%	61.6		%
Underwriting expense ratio	31.8		%	32.0		%	31.0		%	31.3		%	31.7		%	30.9		%	31.9		%	31.3		%
Combined ratio	89.6		%	103.0		%	93.3		%	103.5		%	89.4		%	96.2		%	96.3		%	92.9		%
Impact of catastrophes on combined ratio	1.8		%	8.8		%	1.7		%	14.7		%	1.2		%	4.9		%	5.3		%	3.1		%
Impact of prior year reserve development on combined ratio	-8.6		%	-2.0		%	-1.4		%	-4.0		%	-3.9		%	-1.8		%	-5.3		%	-2.8		%

(1)  Before policyholder dividends.

(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment

expenses and underwriting expenses as follows:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Billing and policy fees and other	$	5	$	5	$	5	$	4	$	4	$	5	$	10	$	9
Fee income:
Loss and loss adjustment expenses	$	35	$	10	$	40	$	38	$	42	$	27	$	45	$	69
Underwriting expenses	47		48		52		52		55		55		95		110
Total fee income	$	82	$	58	$	92	$	90	$	97	$	82	$	140	$	179

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

9

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

															YTD		YTD
	1Q		2Q			3Q		4Q			1Q		2Q		2Q		2Q
	2012		2012			2012		2012			2013		2013		2012		2013
Statutory underwriting
Gross written premiums	$	3,429	$	3,280		$	3,382	$	3,020		$	3,626	$	3,344	$	6,709	$	6,970
Net written premiums	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	6,126	$	6,328
Net earned premiums	$	2,876	$	2,860		$	2,982	$	2,973		$	2,942	$	3,018	$	5,736	$	5,960
Losses and loss adjustment expenses	1,663		2,057			1,860		2,147			1,668		1,970		3,720		3,638
Underwriting expenses	940		928			937		894			969		933		1,868		1,902
Statutory underwriting gain (loss)	273		(125		)	185		(68		)	305		115		148		420
Policyholder dividends	10		8			9		10			8		11		18		19
Statutory underwriting gain (loss) after policyholder dividends	$	263	$	(133	)	$	176	$	(78	)	$	297	$	104	$	130	$	401

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

10

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

															YTD			YTD
	1Q		2Q			3Q		4Q			1Q		2Q		2Q			2Q
	2012		2012			2012		2012			2013		2013		2012			2013
Net written premiums by market
Select Accounts	$	718	$	721		$	679	$	657		$	724	$	709	$	1,439		$	1,433
Commercial Accounts	861		717			805		718			908		732		1,578			1,640
National Accounts	235		226			202		244			277		242		461			519
Industry-Focused Underwriting	648		636			671		599			699		653		1,284			1,352
Target Risk Underwriting	429		486			382		369			448		500		915			948
Specialized Distribution	208		242			222		198			204		232		450			436
Total core	3,099		3,028			2,961		2,785			3,260		3,068		6,127			6,328
Business Insurance other	1		(2		)	1		(1		)	—		—		(1		)	—
Total	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	6,126		$	6,328
Net written premiums by product line
Commercial multi-peril	$	819	$	777		$	769	$	735		$	828	$	771	$	1,596		$	1,599
Workers’ compensation	944		800			849		807			1,056		860		1,744			1,916
Commercial automobile	489		499			498		438			484		476		988			960
Commercial property	416		481			373		377			427		484		897			911
General liability	426		464			452		423			458		469		890			927
Other	6		5			21		4			7		8		11			15
Total	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	6,126		$	6,328
National Accounts
Additions to claim volume under administration (1)	$	639	$	472		$	480	$	549		$	701	$	523	$	1,111		$	1,224
Written fees	$	88	$	77		$	77	$	74		$	104	$	88	$	165		$	192

(1)  Includes new and renewal business.

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

11

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Revenues
Premiums	$	737		$	766		$	772		$	770		$	735		$	751		$	1,503		$	1,486
Net investment income	104			99			97			95			92			91			203			183
Fee income	—			1			—			—			—			—			1			—
Other revenues	8			5			8			5			5			5			13			10
Total revenues	849			871			877			870			832			847			1,720			1,679
Claims and expenses
Claims and claim adjustment expenses	341			302			309			362			302			332			643			634
Amortization of deferred acquisition costs	143			149			149			148			143			147			292			290
General and administrative expenses	165			165			165			172			162			172			330			334
Total claims and expenses	649			616			623			682			607			651			1,265			1,258
Operating income before income taxes	200			255			254			188			225			196			455			421
Income tax expense	51			73			74			57			62			42			124			104
Operating income	$	149		$	182		$	180		$	131		$	163		$	154		$	331		$	317
Other statistics
Effective tax rate on net investment income	18.9		%	19.7		%	19.3		%	19.1		%	18.6		%	18.6		%	19.3		%	18.6		%
Net investment income (after-tax)	$	85		$	79		$	78		$	77		$	75		$	74		$	164		$	149
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	4		$	1		$	45		$	—		$	46		$	4		$	46
After-tax	$	—		$	3		$	—		$	34		$	—		$	30		$	3		$	30
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	46		$	96		$	87		$	69		$	58		$	72		$	142		$	130
After-tax	$	31		$	66		$	60		$	46		$	40		$	47		$	97		$	87

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

12

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Underwriting gain	$	59		$	99		$	97		$	50		$	85		$	76		$	158		$	161
Net investment income	85			79			78			77			75			74			164			149
Other	5			4			5			4			3			4			9			7
Operating income	$	149		$	182		$	180		$	131		$	163		$	154		$	331		$	317
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	46.0		%	39.1		%	39.7		%	46.6		%	40.8		%	43.9		%	42.5		%	42.4		%
Underwriting expense ratio	41.8		%	40.9		%	40.5		%	41.7		%	41.5		%	42.4		%	41.3		%	41.9		%
Combined ratio	87.8		%	80.0		%	80.2		%	88.3		%	82.3		%	86.3		%	83.8		%	84.3		%
Impact of catastrophes on combined ratio	0.0		%	0.4		%	0.1		%	5.9		%	0.0		%	6.1		%	0.2		%	3.1		%
Impact of prior year reserve development on combined ratio	-6.1		%	-12.5		%	-11.3		%	-9.1		%	-7.8		%	-9.7		%	-9.4		%	-8.8		%

(1)  Before policyholder dividends.

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Fee income:
Loss and loss adjustment expenses	$	—	$	1	$	—	$	—	$	—	$	—	$	1	$	—
Underwriting expenses	—		—		—		—		—		—		—		—
Total fee income	$	—	$	1	$	—	$	—	$	—	$	—	$	1	$	—

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

13

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Statutory underwriting
Gross written premiums	$	791	$	882	$	763	$	839	$	799	$	906	$	1,673	$	1,705
Net written premiums	$	604	$	840	$	729	$	808	$	647	$	849	$	1,444	$	1,496
Net earned premiums	$	737	$	766	$	772	$	770	$	735	$	751	$	1,503	$	1,486
Losses and loss adjustment expenses	341		299		307		359		300		330		640		630
Underwriting expenses	316		319		295		314		317		323		635		640
Statutory underwriting gain	80		148		170		97		118		98		228		216
Policyholder dividends	2		3		2		2		2		2		5		4
Statutory underwriting gain after policyholder dividends	$	78	$	145	$	168	$	95	$	116	$	96	$	223	$	212

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

14

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Net written premiums by market
Bond & Financial Products	$	357	$	524	$	529	$	514	$	395	$	531	$	881	$	926
International	247		316		200		294		252		318		563		570
Total	$	604	$	840	$	729	$	808	$	647	$	849	$	1,444	$	1,496
Net written premiums by product line
General liability	$	143	$	236	$	233	$	247	$	168	$	237	$	379	$	405
Fidelity & surety	172		248		246		229		178		253		420		431
International	247		316		200		294		252		318		563		570
Other	42		40		50		38		49		41		82		90
Total	$	604	$	840	$	729	$	808	$	647	$	849	$	1,444	$	1,496

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

15

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Revenues
Premiums	$	1,910		$	1,903		$	1,912		$	1,896		$	1,840		$	1,834		$	3,813		$	3,674
Net investment income	104			103			101			96			91			94			207			185
Other revenues	19			16			17			14			18			15			35			33
Total revenues	2,033			2,022			2,030			2,006			1,949			1,943			4,055			3,892
Claims and expenses
Claims and claim adjustment expenses	1,314			1,435			1,144			1,612			1,102			1,190			2,749			2,292
Amortization of deferred acquisition costs	361			362			360			354			330			322			723			652
General and administrative expenses	214			219			230			237			232			241			433			473
Total claims and expenses	1,889			2,016			1,734			2,203			1,664			1,753			3,905			3,417
Operating income (loss) before income taxes	144			6			296			(197		)	285			190			150			475
Income tax expense (benefit)	36			(11		)	90			(83		)	88			48			25			136
Operating income (loss)	$	108		$	17		$	206		$	(114	)	$	197		$	142		$	125		$	339
Other statistics
Effective tax rate on net investment income	20.1		%	20.4		%	20.2		%	19.4		%	19.5		%	20.1		%	20.3		%	19.8		%
Net investment income (after-tax)	$	83		$	82		$	81		$	77		$	73		$	75		$	165		$	148
Catastrophes, net of reinsurance:
Pre-tax	$	115		$	293		$	40		$	570		$	64		$	146		$	408		$	210
After-tax	$	75		$	190		$	26		$	370		$	42		$	95		$	265		$	137
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	10		$	67		$	65		$	33		$	60		$	65		$	77		$	125
After-tax	$	7		$	43		$	42		$	22		$	39		$	42		$	50		$	81

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

16

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Underwriting gain (loss)	$	12		$	(75	)	$	113		$	(200	)	$	112		$	57		$	(63	)	$	169
Net investment income	83			82			81			77			73			75			165			148
Other	13			10			12			9			12			10			23			22
Operating income (loss)	$	108		$	17		$	206		$	(114	)	$	197		$	142		$	125		$	339
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	68.8		%	75.4		%	59.8		%	85.0		%	59.9		%	64.9		%	72.1		%	62.4		%
Underwriting expense ratio	29.0		%	29.4		%	29.9		%	30.2		%	29.5		%	29.6		%	29.2		%	29.5		%
Combined ratio	97.8		%	104.8		%	89.7		%	115.2		%	89.4		%	94.5		%	101.3		%	91.9		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	95.7		%	102.9		%	86.8		%	113.1		%	87.5		%	92.9		%	99.3		%	90.2		%
Impact of catastrophes on combined ratio	6.0		%	15.3		%	2.1		%	30.1		%	3.5		%	8.0		%	10.7		%	5.7		%
Impact of prior year reserve development on combined ratio	-0.5		%	-3.5		%	-3.4		%	-1.8		%	-3.3		%	-3.5		%	-2.1		%	-3.4		%

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Billing and policy fees and other	$	22	$	20	$	19	$	18	$	20	$	20	$	42	$	40

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

17

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

															YTD			YTD
	1Q		2Q			3Q		4Q			1Q		2Q		2Q			2Q
	2012		2012			2012		2012			2013		2013		2012			2013
Statutory underwriting
Gross written premiums	$	1,853	$	2,078		$	2,126	$	1,866		$	1,763	$	1,997	$	3,931		$	3,760
Net written premiums	$	1,793	$	2,002		$	2,006	$	1,793		$	1,690	$	1,907	$	3,795		$	3,597
Net earned premiums	$	1,910	$	1,903		$	1,912	$	1,896		$	1,840	$	1,834	$	3,813		$	3,674
Losses and loss adjustment expenses	1,314		1,435			1,143		1,613			1,102		1,190		2,749			2,292
Underwriting expenses	541		591			608		572			513		552		1,132			1,065
Statutory underwriting gain (loss)	$	55	$	(123	)	$	161	$	(289	)	$	225	$	92	$	(68	)	$	317
Policies in force (in thousands)
Automobile	2,554		2,505			2,436		2,361			2,286		2,217		2,505			2,217
Homeowners and other	5,195		5,133			5,020		4,898			4,792		4,705		5,133			4,705

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

18

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Statutory underwriting
Gross written premiums	$	904		$	903		$	911		$	826		$	835		$	838		$	1,807		$	1,673
Net written premiums	$	900		$	899		$	906		$	822		$	831		$	834		$	1,799		$	1,665
Net earned premiums	$	902		$	891		$	888		$	875		$	844		$	837		$	1,793		$	1,681
Losses and loss adjustment expenses	641			674			659			778			594			599			1,315			1,193
Underwriting expenses	235			238			233			229			218			224			473			442
Statutory underwriting gain (loss)	$	26		$	(21	)	$	(4	)	$	(132	)	$	32		$	14		$	5		$	46
Other statistics
GAAP combined ratio (2):
Loss and loss adjustment expense ratio	71.1		%	75.6		%	74.1		%	89.0		%	70.4		%	71.6		%	73.3		%	71.0		%
Underwriting expense ratio	25.4		%	25.9		%	25.3		%	26.5		%	25.6		%	26.2		%	25.7		%	25.9		%
Combined ratio	96.5		%	101.5		%	99.4		%	115.5		%	96.0		%	97.8		%	99.0		%	96.9		%
Impact of catastrophes on combined ratio	1.0		%	3.8		%	0.4		%	7.9		%	1.0		%	1.4		%	2.4		%	1.2		%
Impact of prior year reserve development on combined ratio	-0.2		%	0.0		%	0.9		%	1.9		%	0.6		%	0.0		%	-0.1		%	0.3		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	9		$	34		$	4		$	69		$	8		$	12		$	43		$	20
After-tax	$	6		$	22		$	3		$	44		$	6		$	7		$	28		$	13
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	2		$	—		$	(8	)	$	(17	)	$	(6	)	$	—		$	2		$	(6	)
After-tax	$	1		$	—		$	(5	)	$	(11	)	$	(4	)	$	—		$	1		$	(4	)
Policies in force (in thousands)	2,473			2,423			2,353			2,278			2,204			2,136
Change from prior year quarter	-1.0		%	-3.2		%	-5.9		%	-8.7		%	-10.9		%	-11.8		%
Change from prior quarter	-0.8		%	-2.0		%	-2.9		%	-3.2		%	-3.2		%	-3.1		%

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

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Billing and policy fees and other	$	12	$	10	$	11	$	9	$	10	$	9	$	22	$	19

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

19

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Statutory underwriting
Gross written premiums	$	912		$	1,135		$	1,171		$	1,002		$	889		$	1,119		$	2,047		$	2,008
Net written premiums	$	855		$	1,064		$	1,056		$	934		$	820		$	1,033		$	1,919		$	1,853
Net earned premiums	$	973		$	976		$	986		$	983		$	957		$	958		$	1,949		$	1,915
Losses and loss adjustment expenses	643			730			457			800			480			561			1,373			1,041
Underwriting expenses	262			309			315			294			255			293			571			548
Statutory underwriting gain (loss)	$	68		$	(63	)	$	214		$	(111	)	$	222		$	104		$	5		$	326
Other statistics
GAAP combined ratio (2):
Loss and loss adjustment expense ratio	66.0		%	74.8		%	46.4		%	81.4		%	50.2		%	58.6		%	70.4		%	54.3		%
Underwriting expense ratio	29.0		%	29.4		%	29.0		%	29.5		%	29.8		%	30.1		%	29.2		%	30.0		%
Combined ratio	95.0		%	104.2		%	75.4		%	110.9		%	80.0		%	88.7		%	99.6		%	84.3		%
Impact of catastrophes on combined ratio	10.7		%	26.1		%	3.6		%	50.3		%	5.6		%	13.9		%	18.4		%	9.8		%
Impact of prior year reserve development on combined ratio	-1.1		%	-6.9		%	-7.3		%	-4.9		%	-6.7		%	-6.7		%	-4.0		%	-6.8		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	104		$	256		$	35		$	495		$	54		$	133		$	360		$	187
After-tax	$	68		$	166		$	22		$	322		$	35		$	87		$	234		$	122
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	10		$	68		$	71		$	48		$	65		$	65		$	78		$	130
After-tax	$	7		$	44		$	46		$	31		$	42		$	42		$	51		$	84
Policies in force (in thousands)	5,128			5,061			4,945			4,821			4,713			4,624
Change from prior year quarter	-0.1		%	-1.9		%	-4.3		%	-6.6		%	-8.1		%	-8.6		%
Change from prior quarter	-0.7		%	-1.3		%	-2.3		%	-2.5		%	-2.2		%	-1.9		%

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

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2012		2012		2012		2012		2013		2013		2012		2013
Billing and policy fees and other	$	10	$	8	$	9	$	8	$	9	$	10	$	18	$	19

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

20

The Travelers Companies, Inc. Selected Statistics - Direct to Consumer (1) ($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Net written premiums
Automobile	$	29		$	28		$	32		$	26		$	29		$	27		$	57		$	56
Homeowners and other	9			11			12			11			10			13			20			23
Total net written premiums	$	38		$	39		$	44		$	37		$	39		$	40		$	77		$	79
Revenues
Premiums	$	35		$	36		$	38		$	38		$	39		$	39		$	71		$	78
Other revenues	—			—			1			—			—			—			—			—
Total revenues	35			36			39			38			39			39			71			78
Claims and expenses
Claims and claim adjustment expenses	31			31			27			34			28			30			62			58
Amortization of deferred acquisition costs	1			1			1			—			1			1			2			2
General and administrative expenses	42			42			61			51			40			34			84			74
Total claims and expenses	74			74			89			85			69			65			148			134
Operating loss before income taxes	(39		)	(38		)	(50		)	(47		)	(30		)	(26		)	(77		)	(56		)
Income taxes	(14		)	(13		)	(17		)	(17		)	(11		)	(9		)	(27		)	(20		)
Operating loss	$	(25	)	$	(25	)	$	(33	)	$	(30	)	$	(19	)	$	(17	)	$	(50	)	$	(36	)
Other statistics
Policies in force (in thousands)
Automobile	81			82			83			83			82			81
Homeowners and other	67			72			75			77			79			81
Catastrophes, net of reinsurance:
Pre-tax	$	2		$	3		$	1		$	6		$	2		$	1		$	5		$	3
After-tax	$	1		$	2		$	1		$	4		$	1		$	1		$	3		$	2
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	(2	)	$	(1	)	$	2		$	2		$	1		$	—		$	(3	)	$	1
After-tax	$	(1	)	$	(1	)	$	1		$	2		$	1		$	—		$	(2	)	$	1

(1)  Represents incremental premiums, other revenues and claims and expenses of Direct to Consumer business activities included in Personal Insurance operating income (loss).

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

21

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Revenues
Other revenues	$	(4	)	$	—		$	—		$	(8	)	$	(2	)	$	1		$	(4	)	$	(1	)
Claims and expenses
Interest expense	96			96			93			93			92			86			192			178
General and administrative expenses	7			5			5			6			4			7			12			11
Total claims and expenses	103			101			98			99			96			93			204			189
Operating loss before income tax benefit	(107		)	(101		)	(98		)	(107		)	(98		)	(92		)	(208		)	(190		)
Income taxes	(39		)	(35		)	(36		)	(42		)	(35		)	(33		)	(74		)	(68		)
Operating loss	$	(68	)	$	(66	)	$	(62	)	$	(65	)	$	(63	)	$	(59	)	$	(134	)	$	(122	)

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

22

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

	June 30,			December 31,
	2013 (1)			2012
Assets
Fixed maturities, available for sale, at fair value (amortized cost $60,494 and $60,829)	$	62,843		$	65,393
Equity securities, available for sale, at fair value (cost $463 and $462)	701			645
Real estate investments	921			883
Short-term securities	3,394			3,483
Other investments	3,408			3,434
Total investments	71,267			73,838
Cash	308			330
Investment income accrued	734			752
Premiums receivable	6,268			5,872
Reinsurance recoverables	9,887			10,712
Ceded unearned premiums	913			856
Deferred acquisition costs	1,802			1,792
Deferred taxes	257			—
Contractholder receivables	4,448			4,806
Goodwill	3,365			3,365
Other intangible assets	358			381
Other assets	2,293			2,234
Total assets	$	101,900		$	104,938
Liabilities
Claims and claim adjustment expense reserves	$	49,620		$	50,922
Unearned premium reserves	11,557			11,241
Contractholder payables	4,448			4,806
Payables for reinsurance premiums	395			346
Deferred taxes	—			338
Debt	5,852			6,350
Other liabilities	5,138			5,530
Total liabilities	77,010			79,533
Shareholders’ equity
Common stock (1,750.0 shares authorized; 373.5 and 377.4 shares issued and outstanding)	21,367			21,161
Retained earnings	22,806			21,352
Accumulated other comprehensive income	720			2,236
Treasury stock, at cost (380.3 and 372.3 shares)	(20,003		)	(19,344		)
Total shareholders’ equity	24,890			25,405
Total liabilities and shareholders’ equity	$	101,900		$	104,938

(1)  Preliminary.

23

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

	June 30,		Pre-tax Book		December 31,		Pre-tax Book
	2013		Yield (1)		2012		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	26,222	3.76	%	$	27,188	3.92	%
Tax-exempt fixed maturities	36,621		3.83	%	38,205		3.87	%
Total fixed maturities	62,843		3.80	%	65,393		3.89	%
Non-redeemable preferred stocks	124		5.13	%	135		6.27	%
Common stocks	577				510
Total equity securities	701				645
Real estate investments	921				883
Short-term securities	3,394		0.18	%	3,483		0.21	%
Private equities	1,939				1,888
Hedge funds	379				381
Real estate partnerships	603				610
Mortgage loans	2		5.62	%	4		6.21	%
Trading securities	—				30
Other investments	485				521
Total other investments	3,408				3,434
Total investments	$	71,267			$	73,838
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	1,692			$	3,103

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

24

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

	June 30,		December 31,
	2013		2012
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,103	$	2,222
Obligations of states and political subdivisions:
Pre-refunded	9,932		9,025
All other	27,136		29,656
Total	37,068		38,681
Debt securities issued by foreign governments	2,079		2,257
Mortgage-backed securities - principally obligations of U.S. Government agencies	2,595		2,997
Corporates (including redeemable preferreds)	18,998		19,236
Total fixed maturities	$	62,843	$	65,393
Fixed Maturities Quality Characteristics (1)
	June 30, 2013
	Amount		% of Total
Quality Ratings
Aaa	$	26,723	42.5		%
Aa	19,813		31.6
A	8,474		13.5
Baa	5,798		9.2
Total investment grade	60,808		96.8
Ba	1,031		1.6
B	464		0.7
Caa and lower	540		0.9
Total below investment grade	2,035		3.2
Total fixed maturities	$	62,843	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.

25

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Gross investment income
Fixed maturities	$	620		$	611		$	604		$	604		$	586		$	574		$	1,231		$	1,160
Short-term securities	2			3			3			2			2			2			5			4
Other	128			133			124			91			92			120			261			212
	750			747			731			697			680			696			1,497			1,376
Investment expenses	10			9			9			8			10			9			19			19
Net investment income, pre-tax	740			738			722			689			670			687			1,478			1,357
Income taxes	147			149			144			133			128			136			296			264
Net investment income, after-tax	$	593		$	589		$	578		$	556		$	542		$	551		$	1,182		$	1,093
Effective tax rate	19.9		%	20.2		%	20.0		%	19.2		%	19.2		%	19.7		%	20.0		%	19.4		%
Average invested assets (1)	$	69,494		$	69,623		$	69,813		$	70,419		$	69,996		$	69,701		$	69,555		$	69,903
Average yield pre-tax (1)	4.3		%	4.2		%	4.1		%	3.9		%	3.8		%	3.9		%	4.2		%	3.9		%
Average yield after-tax	3.4		%	3.4		%	3.3		%	3.2		%	3.1		%	3.2		%	3.4		%	3.1		%

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

26

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

																				YTD			YTD
		1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
		2012			2012			2012			2012			2013			2013			2012			2013
Net realized investment gains (losses)
Fixed maturities		$	8		$	17		$	14		$	14		$	11		$	14		$	25		$	25
Equity securities		3			2			—			(1		)	6			4			5			10
Other (1)		(1		)	(15		)	(16		)	26			(7		)	149			(16		)	142
Realized investment gains (losses) before tax		10			4			(2		)	39			10			167			14			177
Related taxes		5			—			1			13			1			58			5			59
Net realized investment gains (losses)		$	5		$	4		$	(3	)	$	26		$	9		$	109		$	9		$	118
Gross investment gains (1)		$	121		$	78		$	78		$	97		$	108		$	352		$	199		$	460
Gross investment losses before impairments (1)		(107		)	(70		)	(77		)	(54		)	(93		)	(183		)	(177		)	(276		)
Net investment gains before impairments		14			8			1			43			15			169			22			184
Other-than-temporary impairment losses		(4		)	(4		)	(3		)	(4		)	(5		)	(2		)	(8		)	(7		)
Net realized investment gains (losses) before tax		10			4			(2		)	39			10			167			14			177
Related taxes		5			—			1			13			1			58			5			59
Net realized investment gains (losses)		$	5		$	4		$	(3	)	$	26		$	9		$	109		$	9		$	118
		March 31,			June 30,			September 30,			December 31,			March 31,			June 30,
		2012			2012			2012			2012			2013			2013
Net unrealized investment gains, net of tax, by asset type
Fixed maturities		$	4,166		$	4,392		$	4,870		$	4,564		$	4,121		$	2,349
Equity securities & other		181			176			209			197			274			250
Unrealized investment gains before tax		4,347			4,568			5,079			4,761			4,395			2,599
Related taxes		1,509			1,588			1,764			1,658			1,531			907
Balance, end of period		$	2,838		$	2,980		$	3,315		$	3,103		$	2,864		$	1,692
(1)  Includes the following gross investment gains and gross investment losses related to U.S. Treasury futures, which are settled daily:
	Gross investment Treasury future gains	$	47		$	25		$	27		$	26		$	56		$	287		$	72		$	343
	Gross investment Treasury future losses	$	41		$	38		$	35		$	25		$	75		$	153		$	79		$	228

The Company entered into these arrangements as part of its strategy to manage the duration of its 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.

27

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

		June 30,			December 31,
		2013			2012
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses		$	5,029		$	5,256
Allowance for uncollectible reinsurance		(247		)	(258			)
Net reinsurance recoverables (i)		4,782			4,998
Mandatory pools and associations (ii)		1,950			2,549
Structured settlements (iii)		3,155			3,165
Total reinsurance recoverables		$	9,887		$	10,712
(i)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in net reinsurance recoverables is as follows:
	A.M. Best Rating of Group’s	June 30,			December 31,
Reinsurer	Predominant Reinsurer	2013			2012
Munich Re Group	A+ second highest of 16 ratings	$	552		$		550
Swiss Re Group	A+ second highest of 16 ratings	501			517
Alleghany Group	A third highest of 16 ratings	311			302
XL Capital Group	A third highest of 16 ratings	261			266
Berkshire Hathaway Group	A++ highest of 16 ratings	254			258

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 incurred but not reported claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, about half is attributable to 10 reinsurer groups.

The net reinsurance recoverables reflect an allowance for uncollectible reinsurance that is based upon the Company’s ongoing review of amounts outstanding, reinsurer solvency, the Company’s experience, current economic conditions, and other relevant factors.  Of the total net recoverables due from reinsurers at June 30, 2013, after deducting mandatory pools and associations and structured settlement balances, $3.8 billion, or 80%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% were rated A- or better.  The remaining 20% of net recoverables from reinsurers were comprised of the following:  7% related to the Company’s participation in voluntary pools, 10% related to recoverables from captive insurance companies and 3% were balances from other companies not rated by A.M. Best Company.  In addition, $1.4 billion of the net recoverables were collateralized by letters of credit, funds held or trust agreements at June 30, 2013.

(ii)  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.  Recoverables due from the National Flood Insurance Program are included with mandatory pools.

(iii)  Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion.  In cases where the Company did not receive a release from the claimant, the amount due from the life insurance company related to the structured settlement is included in the Company’s consolidated balance sheet as a liability and as a reinsurance recoverable, as the Company retains the contingent liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments.  The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.

The Company’s top five groups by structured settlement is as follows:

	A.M. Best Rating of Group’s	June 30,		December 31,
Group	Predominant Insurer	2013		2012
Fidelity and Guaranty Life	B++ fifth highest of 16 ratings	$	978	$	981
Metlife	A+ second highest of 16 ratings	464		474
Genworth Financial Group	A third highest of 16 ratings	435		437
Symetra Financial Corporation	A third highest of 16 ratings	252		256
John Hancock Group	A+ second highest of 16 ratings	186		190

28

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Statutory Basis Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period	$	31,131		$	31,006		$	31,126		$	31,051		$	31,120		$	30,929		$	31,131		$	31,120
Incurred	1,663			2,057			1,860			2,147			1,668			1,970			3,720			3,638
Paid	(1,792		)	(1,932		)	(1,937		)	(2,080		)	(1,860		)	(1,892		)	(3,724		)	(3,752		)
Foreign exchange and other	4			(5		)	2			2			1			(1		)	(1		)	—
End of period	$	31,006		$	31,126		$	31,051		$	31,120		$	30,929		$	31,006		$	31,126		$	31,006
Financial, Professional & International Insurance
Beginning of period	$	6,019		$	6,045		$	5,992		$	5,894		$	5,849		$	5,757		$	6,019		$	5,849
Incurred	341			299			307			359			300			330			640			630
Paid	(361		)	(307		)	(453		)	(411		)	(316		)	(399		)	(668		)	(715		)
Foreign exchange and other	46			(45		)	48			7			(76		)	(15		)	1			(91		)
End of period	$	6,045		$	5,992		$	5,894		$	5,849		$	5,757		$	5,673		$	5,992		$	5,673
Personal Insurance
Beginning of period	$	3,749		$	3,740		$	3,807		$	3,583		$	3,687		$	3,529		$	3,749		$	3,687
Incurred	1,314			1,435			1,143			1,613			1,102			1,190			2,749			2,292
Paid	(1,323		)	(1,368		)	(1,367		)	(1,509		)	(1,260		)	(1,253		)	(2,691		)	(2,513		)
End of period	$	3,740		$	3,807		$	3,583		$	3,687		$	3,529		$	3,466		$	3,807		$	3,466
Total
Beginning of period	$	40,899		$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,899		$	40,656
Incurred	3,318			3,791			3,310			4,119			3,070			3,490			7,109			6,560
Paid	(3,476		)	(3,607		)	(3,757		)	(4,000		)	(3,436		)	(3,544		)	(7,083		)	(6,980		)
Foreign exchange and other	50			(50		)	50			9			(75		)	(16		)	—			(91		)
End of period	$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,925		$	40,145
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	167		$	—		$	—		$	—		$	—		$	—
Environmental	—			90			—			—			—			65			90			65
All other	(248		)	(148		)	(208		)	(120		)	(113		)	(120		)	(396		)	(233		)
Total Business Insurance (1)	(248		)	(58		)	(41		)	(120		)	(113		)	(55		)	(306		)	(168		)
Financial, Professional & International Insurance
Asbestos	—			—			8			—			—			—			—			—
All other	(46		)	(96		)	(95		)	(69		)	(58		)	(72		)	(142		)	(130		)
Total Financial, Professional & International Insurance	(46		)	(96		)	(87		)	(69		)	(58		)	(72		)	(142		)	(130		)
Personal Insurance	(10		)	(67		)	(65		)	(33		)	(60		)	(65		)	(77		)	(125		)
Total	$	(304	)	$	(221	)	$	(193	)	$	(222	)	$	(231	)	$	(192	)	$	(525	)	$	(423	)

(1)  Excludes accretion of discount.

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

29

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Asbestos reserves
Beginning reserves:
Gross	$	2,780		$	2,724		$	2,660		$	2,771		$	2,689		$	2,626		$	2,780		$	2,689
Ceded	(341		)	(340		)	(335		)	(324		)	(311		)	(292		)	(341		)	(311		)
Net	2,439			2,384			2,325			2,447			2,378			2,334			2,439			2,378
Incurred losses and loss expenses:
Gross	—			—			171			—			—			—			—			—
Ceded	—			—			4			—			—			—			—			—
Losses paid:
Gross	56			64			60			82			63			60			120			123
Ceded	(1		)	(5		)	(7		)	(13		)	(19		)	(4		)	(6		)	(23		)
Ending reserves:
Gross	2,724			2,660			2,771			2,689			2,626			2,566			2,660			2,566
Ceded	(340		)	(335		)	(324		)	(311		)	(292		)	(288		)	(335		)	(288		)
Net	$	2,384		$	2,325		$	2,447		$	2,378		$	2,334		$	2,278		$	2,325		$	2,278
Environmental reserves
Beginning reserves:
Gross	$	346		$	321		$	396		$	380		$	352		$	340		$	346		$	352
Ceded	(5		)	(4		)	(9		)	(7		)	(5		)	(4		)	(5		)	(5		)
Net	341			317			387			373			347			336			341			347
Incurred losses and loss expenses:
Gross	—			96			3			—			—			72			96			72
Ceded	—			(6		)	(3		)	—			—			(7		)	(6		)	(7		)
Losses paid:
Gross	25			21			19			28			12			13			46			25
Ceded	(1		)	(1		)	(5		)	(2		)	(1		)	—			(2		)	(1		)
Ending reserves:
Gross	321			396			380			352			340			399			396			399
Ceded	(4		)	(9		)	(7		)	(5		)	(4		)	(11		)	(9		)	(11		)
Net	$	317		$	387		$	373		$	347		$	336		$	388		$	387		$	388

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

30

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

	June 30,			December 31,
Debt	2013			2012
Short-term debt
Commercial paper	$	100		$	100
5.00% Senior notes due March 15, 2013 (1)	—			500
Total short-term debt	100			600
Long-term debt
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)	107			107
Total long-term debt	5,761			5,761
Unamortized fair value adjustment	51			52
Unamortized debt issuance costs	(60		)	(63		)
	5,752			5,750
Total debt	5,852			6,350
Common equity (excluding net unrealized investment gains, net of tax)	23,198			22,302
Total capital (excluding net unrealized investment gains, net of tax)	$	29,050		$	28,652
Total debt to capital (excluding net unrealized investment gains, net of tax)	20.1		%	22.2		%

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

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

31

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

	June 30,			December 31,
	2013 (1)			2012
Statutory basis surplus	$	20,672		$	20,048
GAAP adjustments
Goodwill and intangible assets	3,552			3,573
Investments	3,104			5,351
Noninsurance companies	(3,890		)	(4,302		)
Deferred acquisition costs	1,802			1,792
Deferred federal income tax	(1,542		)	(2,220		)
Current federal income tax	21			(9		)
Reinsurance recoverables	201			201
Furniture, equipment & software	615			664
Employee benefits	(7		)	(13		)
Agents balances	153			151
Other	209			169
Total GAAP adjustments	4,218			5,357
GAAP shareholders’ equity	$	24,890		$	25,405

(1) Estimated and Preliminary

See Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

32

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Cash flows from operating activities
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	1,305		$	1,821
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(10		)	(4		)	2			(39		)	(10		)	(167		)	(14		)	(177		)
Depreciation and amortization	216			196			206			209			219			216			412			435
Deferred federal income tax expense	119			6			96			2			131			20			125			151
Amortization of deferred acquisition costs	971			976			986			977			948			950			1,947			1,898
Equity in income from other investments	(114		)	(114		)	(43		)	(71		)	(74		)	(101		)	(228		)	(175		)
Premiums receivable	(151		)	(317		)	161			169			(155		)	(248		)	(468		)	(403		)
Reinsurance recoverables	495			257			174			(473		)	390			357			752			747
Deferred acquisition costs	(984		)	(1,016		)	(1,005		)	(909		)	(954		)	(958		)	(2,000		)	(1,912		)
Claims and claim adjustment expense reserves	(504		)	(95		)	(597		)	656			(751		)	(377		)	(599		)	(1,128		)
Unearned premium reserves	117			229			160			(383		)	187			158			346			345
Other	(147		)	(166		)	497			22			(297		)	(53		)	(313		)	(350		)
Net cash provided by operating activities	814			451			1,501			464			530			722			1,265			1,252
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,615			2,552			1,688			2,514			2,123			1,778			4,167			3,901
Proceeds from sales of investments:
Fixed maturities	223			319			182			363			234			338			542			572
Equity securities	15			7			9			6			36			14			22			50
Real estate investments	—			3			—			50			—			—			3			—
Other investments	203			183			130			319			174			207			386			381
Purchases of investments:
Fixed maturities	(2,604		)	(2,596		)	(2,477		)	(2,770		)	(2,339		)	(2,149		)	(5,200		)	(4,488		)
Equity securities	(10		)	(23		)	(6		)	(9		)	(13		)	(27		)	(33		)	(40		)
Real estate investments	(5		)	(53		)	(4		)	(33		)	(6		)	(53		)	(58		)	(59		)
Other investments	(114		)	(107		)	(71		)	(242		)	(95		)	(114		)	(221		)	(209		)
Net sales (purchases) of short-term securities	226			141			(408		)	158			109			(28		)	367			81
Securities transactions in course of settlement	248			(171		)	(24		)	(76		)	180			(120		)	77			60
Other	(92		)	(41		)	(96		)	(94		)	(100		)	(57		)	(133		)	(157		)
Net cash provided by (used in) investing activities	(295		)	214			(1,077		)	186			303			(211		)	(81		)	92

33

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2012			2012			2012			2012			2013			2013			2012			2013
Cash flows from financing activities
Payment of debt	—			(258		)	—			—			(500		)	—			(258		)	(500		)
Dividends paid to shareholders	(161		)	(180		)	(178		)	(175		)	(175		)	(191		)	(341		)	(366		)
Issuance of common stock - employee share options	77			93			77			48			98			41			170			139
Treasury stock acquired - share repurchase authorization	(354		)	(353		)	(349		)	(418		)	(300		)	(300		)	(707		)	(600		)
Treasury stock acquired - net employee share-based compensation	(52		)	—			—			(1		)	(58		)	(1		)	(52		)	(59		)
Excess tax benefits from share-based payment arrangements	12			7			13			6			21			8			19			29
Net cash used in financing activities	(478		)	(691		)	(437		)	(540		)	(914		)	(443		)	(1,169		)	(1,357		)
Effect of exchange rate changes on cash	3			(2		)	3			—			(6		)	(3		)	1			(9		)
Net increase (decrease) in cash	44			(28		)	(10		)	110			(87		)	65			16			(22		)
Cash at beginning of period	214			258			230			220			330			243			214			330
Cash at end of period	$	258		$	230		$	220		$	330		$	243		$	308		$	230		$	308
Income taxes paid (received)	$	20		$	276		$	14		$	(122	)	$	27		$	468		$	296		$	495
Interest paid	$	35		$	156		$	35		$	149		$	35		$	149		$	191		$	184

34

The Travelers Companies, Inc.
Financial Supplement - Second Quarter 2013
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 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.

Operating income (loss) is net income (loss) excluding the after-tax impact of net realized investment gains (losses).  Management uses operating income (loss) 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 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 and net realized investment gains (losses), net of tax, for the period presented.  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) to average shareholders’ equity for the periods presented.  Operating return on equity is the ratio of annualized operating income (loss) 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, 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 (loss), 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 and other 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.  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 basis surplus represents the excess of an insurance company’s assets over its liabilities in accordance with statutory accounting practices.

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 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 through Lloyd’s.  The segment includes Bond & Financial Products as well as International.

Personal Insurance - The Personal Insurance segment writes a broad range of property and casualty insurance covering individuals’ personal risks.  The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

35