8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported):  October 22, 2013

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

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

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

(917) 778-6000

(Registrant’s telephone number, including area code)

Not Applicable

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

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

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

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

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

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

Item 2.02.  Results of Operations and Financial Condition.

On October 22, 2013, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2013, and the availability of the Company’s third quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

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

Item 9.01.  Financial Statements and Exhibits.

(d)           Exhibits.

Exhibit No.	Description
99.1	Press Release, dated October 22, 2013, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2013 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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SIGNATURES

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

Date:       October 22, 2013	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Matthew S. Furman
		Name:	Matthew S. Furman
		Title:	Senior Vice President

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated October 22, 2013, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third Quarter 2013 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

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EX-99.1

Exhibit 99.1

NYSE: TRV

Travelers Reports Net Income per Diluted Share of $2.30, Up 4% from Prior Year Quarter

Record Quarterly Operating Income per Diluted Share of $2.35, Up 6% from Prior Year Quarter

Return on Equity and Operating Return on Equity of 13.9% and 15.2%, Respectively

·Strong net and operating income of $864 million and $883 million, respectively, generally consistent with the prior year quarter.

·Continued improvement in underlying underwriting margins.

·Written rate gains continued to exceed expected loss cost trends in all segments.

·Total capital returned to shareholders of $985 million in the quarter, including $800 million in share repurchases. Year-to-date total capital returned to shareholders of $1.952 billion.

·Board of Directors authorizes an additional $5.0 billion of share repurchases.

·Increase in book value per share of 1% to $68.15 and increase in adjusted book value per share of 8% to $63.87 from year-end 2012.

New York, October 22, 2013 — The Travelers Companies, Inc. today reported net income of $864 million, or $2.30 per diluted share, for the quarter ended September 30, 2013, compared to $864 million, or $2.21 per diluted share, in the prior year quarter. Operating income in the current quarter was $883 million, or $2.35 per diluted share, compared to $867 million, or $2.22 per diluted share, in the prior year quarter. The increase in net and operating income per diluted share compared to the prior year quarter primarily resulted from a higher underlying underwriting gain (i.e., excluding prior year reserve development and catastrophe losses) and the impact of share repurchases, partially offset by lower net investment income and lower net favorable prior year reserve development.

Consolidated Highlights

($ in millions, except for per share amounts, and after-tax,	Three Months Ended September 30,								Nine Months Ended September 30,
except for premiums & revenues)	2013			2012			Change		2013			2012			Change
Net written premiums	$	5,713		$	5,697		—	%	$	17,134		$	17,062		—	%
Total revenues	$	6,452		$	6,512		(1	)	$	19,454		$	19,263		1
Operating income	$	883		$	867		2		$	2,586		$	2,163		20
per diluted share	$	2.35		$	2.22		6		$	6.79		$	5.48		24
Net income	$	864		$	864		—		$	2,685		$	2,169		24
per diluted share	$	2.30		$	2.21		4		$	7.05		$	5.50		28
Diluted weighted average shares outstanding	372.9			387.9			(4	)	378.1			391.5			(3	)
GAAP combined ratio	88.9		%	90.3		%	(1.4	)pts	90.6		%	94.3		%	(3.7	)pts
Underlying GAAP combined ratio	90.0		%	92.1		%	(2.1	)pts	90.8		%	93.7		%	(2.9	)pts
Operating return on equity	15.2		%	15.5		%	(0.3	)pts	15.1		%	13.1		%	2.0	pts
Return on equity	13.9		%	13.6		%	0.3	pts	14.2		%	11.6		%	2.6	pts

							Change from
	September 30,		December 31,		September 30,		December 31,		September 30,
	2013		2012		2012		2012		2012
Book value per share	$	68.15	$	67.31	$	67.81	1	%	1	%
Adjusted book value per share	63.87		59.09		59.13		8		8

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

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“We are very pleased to report quarterly operating income per diluted share of $2.35, a record dating back to Travelers’ initial public offering in 2002 and operating income of $883 million,” commented Jay Fishman, Chairman and Chief Executive Officer, “as well as operating return on equity of 15.2%. The current quarter benefited from earned rate increases exceeding loss cost trends in each segment, largely the result of the pricing strategy we have been pursuing since the middle of 2010, low weather-related losses and meaningful net favorable prior year reserve development. Our strong results for the first nine months of this year enabled us to return almost $2 billion in capital to shareholders year-to-date through share repurchases and dividends, including almost $1 billion in the quarter.

“We continue to be pleased with the execution of our granular pricing strategies in our commercial lines businesses.  Retention and renewal rate change levels remained strong and consistent with recent quarters, while new business was up slightly from the prior year quarter. We intend to stay the course on this strategy as our expectations of more volatile weather patterns and continued low interest rates have not changed.  In Personal Insurance, we are pleased that profitability continues to improve and our retention levels remain consistent with recent quarters.  We plan on introducing our new auto insurance product, Quantum 2.0, in approximately fifteen states in the fourth quarter, and we are optimistic that this new product which incorporates a meaningfully lower cost structure will enable us to improve new business volumes at attractive returns.

“We expect that the Dominion acquisition will close in the fourth quarter of 2013, subject to customary closing conditions.  We are excited about the transaction and look forward to welcoming the Dominion employees to Travelers.

“Our results, both currently and over time, demonstrate the successful execution of our strategy. We remain committed to delivering top-tier earnings and returning excess capital to shareholders,” concluded Mr. Fishman.

Consolidated Results

	Three Months Ended September 30,									Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain:	$	595		$	514		$	81		$	1,478		$	845		$	633
Underwriting gain includes:
Net favorable prior year reserve development	158			193			(35		)	581			718			(137		)
Catastrophes, net of reinsurance	(99		)	(91		)	(8		)	(538		)	(808		)	270
Net investment income	657			722			(65		)	2,014			2,200			(186		)
Other, including interest expense	(53		)	(64		)	11			(73		)	(202		)	129
Operating income before income taxes	1,199			1,172			27			3,419			2,843			576
Income tax expense	316			305			11			833			680			153
Operating income	883			867			16			2,586			2,163			423
Net realized investment gains (losses) after income taxes	(19		)	(3		)	(16		)	99			6			93
Net Income	$	864		$	864		$	—		$	2,685		$	2,169		$	516
GAAP combined ratio	88.9		%	90.3		%	(1.4		)pts	90.6		%	94.3		%	(3.7		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(2.8		)pts	(3.4		)pts	0.6		pts	(3.4		)pts	(4.3		)pts	0.9		pts
Catastrophes, net of reinsurance	1.7		pts	1.6		pts	0.1		pts	3.2		pts	4.9		pts	(1.7		)pts
Underlying GAAP combined ratio	90.0		%	92.1		%	(2.1		)pts	90.8		%	93.7		%	(2.9		)pts
Net written premiums
Business Insurance	$	3,032		$	2,962		2		%	$	9,360		$	9,088		3		%
Financial, Professional & International Insurance	770			729			6			2,266			2,173			4
Personal Insurance	1,911			2,006			(5		)	5,508			5,801			(5		)
Total	$	5,713		$	5,697		—		%	$	17,134		$	17,062		—		%

Third Quarter 2013 Results

(All comparisons vs. third quarter 2012, unless noted otherwise)

Net income of $864 million after-tax was level with the prior year quarter. Operating income of $883 million after-tax increased $16 million or 2%, primarily reflecting a higher underlying underwriting gain, partially offset by lower net investment income and lower net favorable prior year reserve development. Both the current quarter and prior year quarter benefited from benign levels of catastrophe losses.

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Underwriting results

·The GAAP combined ratio improved 1.4 points to 88.9% due to higher underlying underwriting margins (2.1 points), partially offset by lower net favorable prior year reserve development (0.6 points) and slightly higher catastrophe losses (0.1 point).

·Net favorable prior year reserve development occurred in all segments. Catastrophe losses primarily resulted from wind and hail storms in several regions in the United States, as well as increases in estimated losses related to wind and hail storms that occurred in the second quarter.

·The underlying GAAP combined ratio improved 2.1 points to 90.0%, primarily resulting from earned rate increases exceeding loss cost trends in each segment, as well as lower non-catastrophe weather-related losses in Personal Insurance.

Net investment income of $657 million decreased primarily due to lower reinvestment rates in the fixed income portfolio and lower real estate partnership returns in the non-fixed income portfolio.

Net written premiums of $5.713 billion were slightly higher than the prior year quarter as higher net written premiums in Business Insurance and Financial, Professional & International Insurance were mostly offset by lower net written premiums in Personal Insurance.

Year-to-Date 2013 Results

(All comparisons vs. year-to-date 2012, unless noted otherwise)

Net income of $2.685 billion after-tax increased $516 million or 24% due to higher operating income and higher net realized investment gains after-tax. Operating income of $2.586 billion increased $423 million, primarily reflecting improved underwriting results driven by a higher underlying underwriting gain, lower catastrophe losses, a $63 million benefit resulting from the resolution of prior year tax matters and a $59 million after-tax ($91 million pre-tax) gain from the settlement of a legal proceeding. These improvements were partially offset by lower net investment income and lower net favorable prior year reserve development.

Underwriting results

·The GAAP combined ratio improved 3.7 points to 90.6% due to higher underlying underwriting margins (2.9 points) and lower catastrophe losses (1.7 points), partially offset by lower net favorable prior year reserve development (0.9 points).

·Net favorable prior year reserve development occurred in all segments. Catastrophe losses primarily resulted from tornado, wind and hail storms in several regions of the United States, as well as flooding in Alberta, Canada.

·The underlying GAAP combined ratio improved 2.9 points to 90.8%, primarily resulting from earned rate increases exceeding loss cost trends in each segment, as well as lower non-catastrophe weather-related losses.

Net investment income of $2.014 billion decreased primarily due to the same factors discussed above for the third quarter.

Net realized investment gains of $99 million after-tax ($155 million pre-tax) increased primarily from an $87 million after-tax ($134 million pre-tax) gain in the second quarter related to a short position in U.S. Treasury futures contracts. The company closed this position by the end of the second quarter.

Net written premiums of $17.134 billion were slightly higher than the prior year period reflecting the same factors discussed above for the third quarter.

Shareholders’ Equity

Shareholders’ equity of $24.811 billion was generally consistent with the end of second quarter 2013, but decreased 2% from the end of 2012. Included in shareholders’ equity were after-tax net unrealized investment gains of $1.559 billion, compared to $1.692 billion at the end of the second quarter and $3.103 billion at the end of the prior year. These lower net unrealized investment gains as compared to the end of the prior year resulted from increased interest rates.

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The company repurchased 9.7 million shares during the quarter and 17.0 million shares year-to-date under its existing share repurchase authorization at a total cost of $800 million and $1.400 billion, respectively. Statutory surplus was $21.509 billion, and the ratio of debt-to-capital (excluding after-tax net unrealized investment gains) was 21.4%, well within its target range of 15% to 25%.

Travelers’ Board of Directors has authorized an additional $5.0 billion of share repurchases. This amount is in addition to the $759 million that remained from previous authorizations as of September 30, 2013. This authorization does not have a stated expiration date. The timing and actual number of shares to be repurchased will depend on a variety of factors, including the factors described below in the Forward-Looking Statement section.

The Board of Directors also declared a quarterly dividend of $0.50 per share. This dividend is payable December 31, 2013, to shareholders of record as of the close of business on December 10, 2013.

Business Insurance Segment Financial Results

	Three Months Ended September 30,									Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain	$	205		$	187		$	18		$	603		$	371		$	232
Underwriting gain includes:
Net favorable prior year reserve development	36			41			(5		)	204			347			(143		)
Catastrophes, net of reinsurance	(61		)	(50		)	(11		)	(244		)	(355		)	111
Net investment income	479			524			(45		)	1,468			1,592			(124		)
Other	8			9			(1		)	135			31			104
Operating income before income taxes	692			720			(28		)	2,206			1,994			212
Income tax expense	166			177			(11		)	511			477			34
Operating income	$	526		$	543		$	(17	)	$	1,695		$	1,517		$	178
GAAP combined ratio	93.0		%	93.3		%	(0.3		)pts	92.9		%	95.3		%	(2.4		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(1.2		)pts	(1.4		)pts	0.2		pts	(2.3		)pts	(4.0		)pts	1.7		pts
Catastrophes, net of reinsurance	2.0		pts	1.7		pts	0.3		pts	2.7		pts	4.1		pts	(1.4		)pts
Underlying GAAP combined ratio	92.2		%	93.0		%	(0.8		)pts	92.5		%	95.2		%	(2.7		)pts
Net written premiums by market
Select Accounts	$	654		$	679		(4		)%	$	2,087		$	2,118		(1		)%
Commercial Accounts	807			805			—			2,447			2,383			3
National Accounts	236			202			17			755			663			14
Industry-Focused Underwriting	673			671			—			2,025			1,955			4
Target Risk Underwriting	441			382			15			1,389			1,297			7
Specialized Distribution	220			222			(1		)	656			672			(2		)
Other	1			1			—			1			—			NM
Total	$	3,032		$	2,962		2		%	$	9,360		$	9,088		3		%

NM = Not Meaningful

Third Quarter 2013 Results

(All comparisons vs. third quarter 2012, unless noted otherwise)

Operating income of $526 million after-tax decreased $17 million or 3%, primarily reflecting lower net investment income, higher catastrophe losses and lower net favorable prior year reserve development, partially offset by a higher underlying underwriting gain.

Underwriting results

·The GAAP combined ratio improved 0.3 points to 93.0% due to higher underlying underwriting margins (0.8 points), partially offset by higher catastrophe losses (0.3 points) and lower net favorable prior year development (0.2 points).

·Net favorable prior year reserve development resulted from better than expected loss experience related to the general liability product line for accident years 2009 through 2012, as well as the property product line related to

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catastrophe and non-catastrophe losses for accident years 2010 through 2012. These improvements were partially offset by a $124 million after-tax ($190 million pre-tax) increase to asbestos reserves.

·The asbestos reserve strengthening was primarily driven by increases in the company’s estimate for projected settlement and defense costs related to a broad number of policyholders, as well as slightly higher projected payments on assumed reinsurance accounts. The increase in the estimate of projected settlement and defense costs resulted from recent payment trends that continue to be moderately higher than previously anticipated due to the impact of the current litigation environment. Notwithstanding these payment trends, the company’s overall view of the underlying asbestos environment is essentially unchanged from recent periods and there remains a high degree of uncertainty with respect to future exposure from asbestos claims.

·The underlying GAAP combined ratio improved 0.8 points to 92.2%, primarily resulting from earned rate increases exceeding loss cost trends and a decrease in the expense ratio, partially offset by higher non-catastrophe weather-related losses.

Business Insurance net written premiums of $3.032 billion increased 2% primarily driven by continued increases in renewal rate change. Retention rates remained strong and generally consistent with recent quarters. New business volumes increased modestly from the prior year quarter. Net written premiums also benefited from positive exposure change at renewal which was higher than the prior year quarter, as well as positive audit premiums, which were lower than the prior year quarter.

Year-to-Date 2013 Results

(All comparisons vs. year-to-date 2012, unless noted otherwise)

Operating income of $1.695 billion after-tax increased $178 million or 12%, primarily reflecting improved underwriting results driven by a higher underlying underwriting gain, lower catastrophe losses, a $59 million after-tax ($91 million pre-tax) gain from the settlement of a legal proceeding and a $43 million benefit resulting from the resolution of prior year tax matters. These improvements were partially offset by lower net favorable prior year reserve development and lower net investment income.

Underwriting results

·The GAAP combined ratio improved 2.4 points to 92.9% due to higher underlying underwriting margins (2.7 points), and lower catastrophe losses (1.4 points), partially offset by lower net favorable prior year reserve development (1.7 points).

·Net favorable prior year reserve development was primarily driven by the same factors discussed above for the third quarter. Also included in net favorable prior year reserve development was a $42 million pre-tax ($27 million after-tax) charge that was precipitated by legislation in New York enacted in the first quarter 2013 related to the New York Fund for Reopened Cases for workers’ compensation.

·The underlying GAAP combined ratio improved 2.7 points to 92.5%, primarily resulting from earned rate increases exceeding loss cost trends.

Business Insurance net written premiums of $9.360 billion increased 3% primarily driven by the same factors discussed above for the third quarter.

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Financial, Professional & International Insurance Segment Financial Results

	Three Months Ended September 30,									Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain	$	131		$	149		$	(18	)	$	359		$	388		$	(29	)
Underwriting gain includes:
Net favorable prior year reserve development	74			87			(13		)	204			229			(25		)
Catastrophes, net of reinsurance	—			(1		)	1			(46		)	(5		)	(41		)
Net investment income	88			97			(9		)	271			300			(29		)
Other	5			8			(3		)	15			21			(6		)
Operating income before income taxes	224			254			(30		)	645			709			(64		)
Income tax expense	64			74			(10		)	168			198			(30		)
Operating income	$	160		$	180		$	(20	)	$	477		$	511		$	(34	)
GAAP combined ratio	83.2		%	80.2		%	3.0		pts	83.9		%	82.6		%	1.3		pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(9.3		)pts	(11.3		)pts	2.0		pts	(9.0		)pts	(10.0		)pts	1.0		pts
Catastrophes, net of reinsurance	—		pts	0.1		pts	(0.1		)pts	2.0		pts	0.2		pts	1.8		pts
Underlying GAAP combined ratio	92.5		%	91.4		%	1.1		pts	90.9		%	92.4		%	(1.5		)pts
Net written premiums by market
Bond & Financial Products	$	553		$	529		5		%	$	1,479		$	1,410		5		%
International	217			200			9			787			763			3
Total	$	770		$	729		6		%	$	2,266		$	2,173		4		%

Third Quarter 2013 Results

(All comparisons vs. third quarter 2012, unless noted otherwise)

Operating income of $160 million after-tax decreased $20 million or 11% primarily reflecting lower underlying underwriting results, which were impacted by a higher level of large losses as compared to a particularly low level of large losses in the prior year quarter, lower net favorable prior year reserve development and lower net investment income.

Underwriting results

·The GAAP combined ratio increased 3.0 points to 83.2% due to lower net favorable prior year reserve development (2.0 points) and lower underlying underwriting margins (1.1 points), primarily reflecting a higher level of large losses, partially offset by lower catastrophe losses (0.1 point).

·Net favorable prior year reserve development primarily resulted from better than expected loss experience in the surety line of business for accident years 2004 through 2010 within Bond & Financial Products, as well as in the surety line of business in Canada and the marine line of business in the company’s operations at Lloyd’s within International.

·The underlying GAAP combined ratio increased 1.1 points to 92.5%, primarily resulting from a higher level of large losses within International and an increase in the expense ratio as a result of business mix and timing, largely offset by earned rate increases exceeding loss cost trends.

Financial, Professional & International Insurance net written premiums of $770 million increased 6%, primarily reflecting higher volumes in construction surety and renewal rate increases in management liability within Bond & Financial Products, as well as higher new business volumes within International.

Year-to-Date 2013 Results

(All comparisons vs. year-to-date 2012, unless noted otherwise)

Operating income of $477 million after-tax decreased $34 million or 7%, primarily reflecting lower underwriting results and lower net investment income. The lower underwriting results were driven by higher catastrophe losses and lower net favorable prior year reserve development, partially offset by a higher underlying underwriting gain.

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Underwriting results

·The GAAP combined ratio increased 1.3 points to 83.9% due to higher catastrophe losses (1.8 points) and lower net favorable prior year reserve development (1.0 point), partially offset by higher underlying underwriting margins (1.5 points).

·Net favorable prior year reserve development was primarily driven by the same factors discussed above for the third quarter. Catastrophe losses primarily resulted from flooding in Alberta, Canada.

·The underlying GAAP combined ratio improved 1.5 points to 90.9%, primarily resulting from earned rate increases exceeding loss cost trends, partially offset by an increase in the expense ratio.

Financial, Professional & International Insurance net written premiums of $2.266 billion increased 4%, primarily driven by the same factors discussed above for the third quarter, as well as lower reinsurance costs (resulting from price decreases and slightly higher retention levels).

Personal Insurance Segment Financial Results

	Three Months Ended September 30,									Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain	$	259		$	178		$	81		$	516		$	86		$	430
Underwriting gain includes:
Net favorable prior year reserve development	48			65			(17		)	173			142			31
Catastrophes, net of reinsurance	(38		)	(40		)	2			(248		)	(448		)	200
Net investment income	90			101			(11		)	275			308			(33		)
Other	34			17			17			67			52			15
Operating income before income taxes	383			296			87			858			446			412
Income tax expense	121			90			31			257			115			142
Operating income	$	262		$	206		$	56		$	601		$	331		$	270
GAAP combined ratio	84.7		%	89.7		%	(5.0		)pts	89.5		%	97.4		%	(7.9		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(2.6		)pts	(3.4		)pts	0.8		pts	(3.2		)pts	(2.5		)pts	(0.7		)pts
Catastrophes, net of reinsurance	2.0		pts	2.1		pts	(0.1		)pts	4.5		pts	7.8		pts	(3.3		)pts
Underlying GAAP combined ratio	85.3		%	91.0		%	(5.7		)pts	88.2		%	92.1		%	(3.9		)pts
Net written premiums
Agency Automobile(1)	$	828		$	906		(9		)%	$	2,493		$	2,705		(8		)%
Agency Homeowners & Other(1)	1,039			1,056			(2		)	2,892			2,975			(3		)
Direct to Consumer	44			44			—			123			121			2
Total	$	1,911		$	2,006		(5		)%	$	5,508		$	5,801		(5		)%

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

Third Quarter 2013 Results

(All comparisons vs. third quarter 2012, unless noted otherwise)

Operating income of $262 million after-tax increased $56 million or 27%, primarily reflecting improved underwriting results driven by a higher underlying underwriting gain, partially offset by lower net favorable prior year reserve development and lower net investment income.

Underwriting results

·The GAAP combined ratio improved 5.0 points to 84.7% due to higher underlying underwriting margins (5.7 points) and slightly lower catastrophe losses (0.1 point), partially offset by lower net favorable prior year reserve development (0.8 points).

·Net favorable prior year reserve development primarily resulted from better than expected loss experience in Homeowners & Other for catastrophe losses incurred in accident year 2012.

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·The underlying GAAP combined ratio improved 5.7 points to 85.3% primarily resulting from lower non-catastrophe weather-related losses, as well as earned rate increases exceeding loss cost trends in both Automobile and Homeowners & Other.

Personal Insurance net written premiums of $1.911 billion decreased 5%, largely as a result of the company’s pricing strategy, increasing deductibles and other profitability improvement initiatives. Renewal premium change and retention rates remained strong, while new business was lower than the prior year quarter.

Year-to-Date 2013 Results

(All comparisons vs. year-to-date 2012, unless noted otherwise)

Operating income of $601 million after-tax increased $270 million or 82%, primarily reflecting improved underwriting results driven by higher underlying underwriting gain, lower catastrophe losses and higher net favorable prior year reserve development, partially offset by lower net investment income.

Underwriting results

·The GAAP combined ratio improved 7.9 points to 89.5% due to higher underlying underwriting margins (3.9 points), lower catastrophe losses (3.3 points) and higher net favorable prior year reserve development (0.7 points).

·Net favorable prior year reserve development was primarily driven by the same factors discussed above for the third quarter, as well as net favorable prior year reserve development in the first six months of 2013 in Homeowners & Other for accident year 2011 and 2012 for both catastrophe and non-catastrophe weather-related losses, as well as non-weather-related losses.

·The underlying GAAP combined ratio improved 3.9 points to 88.2%, primarily resulting from earned rate increases exceeding loss cost trends in both Automobile and Homeowners & Other, and lower non-catastrophe weather-related losses.

Personal Insurance net written premiums of $5.508 billion decreased 5%, primarily driven by the same factors discussed above for the third 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 Tuesday, October 22, 2013. Investors can access the call via webcast at http://investor.travelers.com or by dialing 1-800-698-9012 within the U.S. and 1-303-223-2680 outside the U.S. (use passcode 14788 for both the U.S. and international calls). 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 at the same website. An audio playback can also be accessed by phone at 1-800-633-8284 within the U.S. and 1-402-977-9140 outside the U.S. (use reservation 21674246 for both the U.S. and international calls).

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 approximately 30,000 employees and operations in the United States and selected International markets. For more information, visit www.travelers.com.

From time to time, Travelers may use its website and/or social media outlets, such as Facebook and Twitter, as distribution channels of material company information.  Financial and other important information regarding the company is routinely accessible through and posted on our website at http://investor.travelers.com, our Facebook page at https://www.facebook.com/travelers and our Twitter account (@TRV_Insurance) at https://twitter.com/TRV_Insurance.     In addition, you may automatically receive email alerts and other information about Travelers when you enroll your email address by visiting the “Email Alert Service” section at http://investor.travelers.com.

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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 businesses in Financial, Professional & International Insurance are Bond & Financial Products and 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.

* * * * *

Forward-Looking Statement

This press release contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. 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, expected margin improvement, future pension plan contributions and 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, loss costs, return on equity, and expected current returns and combined ratios);

·the sufficiency of the company’s asbestos and other reserves;

·the impact of emerging claims issues as well as other insurance and non-insurance litigation;

·the cost and availability of reinsurance coverage;

·catastrophe losses;

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

·strategic initiatives, including initiatives, such as in Personal Insurance, to improve profitability and competitiveness; and

·the potential closing date and impact of its merger and acquisition transactions, including the acquisition of The Dominion of Canada General Insurance Company (The Dominion).

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.

9

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 (including, among other things, following a government shutdown or potential default), the company’s business could be materially and adversely affected;

·if actual claims exceed the company’s claims and claim adjustment expense reserves, or if changes in the estimated level of claims and claim adjustment expense 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;

·within the United States, the company’s businesses are heavily regulated by the states in which it conducts business, including licensing and supervision, and changes in regulation may reduce the company’s profitability and limit its growth;

·changes in federal regulation could impose significant burdens on the company and otherwise adversely impact its results;

·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, including in Personal Insurance, or expand in targeted markets may not be successful and may create enhanced risks;

·changes in U.S. tax laws or in the tax laws of other jurisdictions in which the company operates could adversely impact the company;

·the company may be adversely affected if its pricing and capital models provide materially different indications than actual results;

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

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

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

·new regulations outside of the U.S., including in the European Union, could adversely impact the company’s results of operations and limit its growth;

·acquisitions and integration of acquired businesses, including the company’s planned acquisition of The Dominion, may result in operating difficulties and other unintended consequences;

·changes to existing accounting standards may adversely impact the company’s reported results;

·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;

10

·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;

·the company’s repurchase plans depend on a variety of factors, including the company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels commensurate with the company’s desired ratings from independent rating agencies, funding of the company’s qualified pension plan, capital requirements of the company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions and other factors;

·the company may not achieve the anticipated benefits of its transactions or its strategic initiatives, including in Personal Insurance, or complete a transaction that is subject to closing conditions; and

·conditions in the capital markets may not be suitable for the company to incur additional indebtedness and/or to issue preferred or other capital stock.

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 (SEC).

*****

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.

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

Operating income is net income 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 per share is operating income on a per common share basis.

11

Reconciliation of Operating Income less Preferred Dividends to Net Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, pre-tax)	2013			2012			2013		2012
Operating income	$	1,199		$	1,172		$	3,419	$	2,843
Net realized investment gains (losses)	(22		)	(2		)	155		12
Net income	$	1,177		$	1,170		$	3,574	$	2,855

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, after-tax)	2013			2012			2013		2012
Operating income	$	883		$	867		$	2,586	$	2,163
Net realized investment gains (losses)	(19		)	(3		)	99		6
Net income	$	864		$	864		$	2,685	$	2,169

	Twelve Months Ended December 31,
($ in millions, after-tax)	2012		2011		2010		2009		2008			2007		2006		2005
Operating income, less preferred dividends	$	2,441	$	1,389	$	3,040	$	3,597	$	3,191		$	4,496	$	4,195	$	2,020
Preferred dividends	—		1		3		3		4			4		5		6
Operating income	2,441		1,390		3,043		3,600		3,195			4,500		4,200		2,026
Net realized investment gains (losses)	32		36		173		22		(271		)	101		8		35
Income from continuing operations	2,473		1,426		3,216		3,622		2,924			4,601		4,208		2,061
Discontinued operations	—		—		—		—		—			—		—		(439		)
Net income	$	2,473	$	1,426	$	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						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013		2012
Basic earnings per share
Operating income	$	2.38		$	2.24		$	6.86	$	5.53
Net realized investment gains (losses)	(0.05		)	(0.01		)	0.26		0.02
Net income	$	2.33		$	2.23		$	7.12	$	5.55
Diluted earnings per share
Operating income	$	2.35		$	2.22		$	6.79	$	5.48
Net realized investment gains (losses)	(0.05		)	(0.01		)	0.26		0.02
Net income	$	2.30		$	2.21		$	7.05	$	5.50

12

Reconciliation of Operating Income by Segment to Total Operating Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, after-tax)	2013			2012			2013			2012
Business Insurance	$	526		$	543		$	1,695		$	1,517
Financial, Professional & International Insurance	160			180			477			511
Personal Insurance	262			206			601			331
Total segment operating income	948			929			2,773			2,359
Interest Expense and Other	(65		)	(62		)	(187		)	(196		)
Total operating income	$	883		$	867		$	2,586		$	2,163

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

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

Reconciliation of Adjusted Shareholders’ Equity to Shareholders’ Equity

	As of September 30,
($ in millions)	2013		2012
Adjusted shareholders’ equity	$	23,153	$	22,584
Net unrealized investment gains, net of tax	1,559		3,315
Net realized investment gains, net of tax	99		6
Shareholders’ equity	$	24,811	$	25,905

	As of December 31,
($ in millions)	2012		2011		2010		2009		2008			2007		2006		2005			2004
Adjusted shareholders’ equity	$	22,270	$	21,570	$	23,375	$	25,458	$	25,647		$	25,783	$	24,545	$	22,227		$	20,087
Net unrealized investment gains (losses), net of tax	3,103		2,871		1,859		1,856		(146		)	620		453		327			866
Net realized investment gains (losses), net of tax	32		36		173		22		(271		)	101		8		35			(28		)
Preferred stock	—		—		68		79		89			112		129		153			188
Discontinued operations	—		—		—		—		—			—		—		(439		)	88
Shareholders’ equity	$	25,405	$	24,477	$	25,475	$	27,415	$	25,319		$	26,616	$	25,135	$	22,303		$	21,201

Return on equity is the ratio of annualized net income less preferred dividends to average shareholders’ equity for the periods presented. Operating return on equity is the ratio of annualized operating income 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.

13

Calculation of Operating Return on Equity and Return on Equity

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, after-tax)	2013			2012			2013			2012
Annualized operating income	$	3,534		$	3,467		$	3,448		$	2,884
Adjusted average shareholders’ equity	23,235			22,331			22,886			22,066
Operating return on equity	15.2		%	15.5		%	15.1		%	13.1		%
Annualized net income	$	3,458		$	3,458		$	3,580		$	2,892
Average shareholders’ equity	24,851			25,477			25,198			25,037
Return on equity	13.9		%	13.6		%	14.2		%	11.6		%

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

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

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

Calculation of Average Annual Operating Return on Equity from January 1, 2005 through September 30, 2013

	Nine Months Ended
	September 30,						Twelve Months Ended December 31,
($ in millions)	2013			2012			2012			2011			2010			2009			2008			2007			2006			2005
Operating income, less preferred dividends	$	2,586		$	2,163		$	2,441		$	1,389		$	3,040		$	3,597		$	3,191		$	4,496		$	4,195		$	2,020
Annualized operating income	3,448			2,884
Adjusted average shareholders’ equity	22,886			22,066			22,158			22,806			24,285			25,777			25,668			25,350			23,381			21,118
Operating return on equity	15.1		%	13.1		%	11.0		%	6.1		%	12.5		%	14.0		%	12.4		%	17.7		%	17.9		%	9.6		%
Average annual operating return on equity for the period Jan. 1, 2005 through Sept. 30, 2013	13.0		%

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

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses. In the opinion of the company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business. This measure is used to assess each segment’s business performance and as a tool in making business decisions.  Pre-tax underwriting gain, excluding the impact of catastrophes and net favorable prior year loss reserve development, is the underwriting gain (loss) adjusted to exclude claims and claim adjustment expenses, reinstatement premiums and assessments related to catastrophes and loss reserve development related to time periods prior to the current year. 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. This measure is also referred to as underlying underwriting margin or underlying underwriting gain (loss).

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

14

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.

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						Nine Months Ended
	September 30,						September 30,
($ in millions, after-tax except as noted)	2013			2012			2013			2012
Pre-tax underwriting gain excluding the impact of catastrophes and net favorable prior year loss reserve development	$	536		$	412		$	1,435		$	935
Pre-tax impact of catastrophes	(99		)	(91		)	(538		)	(808		)
Pre-tax impact of net favorable prior year loss reserve development	158			193			581			718
Pre-tax underwriting gain	595			514			1,478			845
Income tax expense on underwriting results	208			187			471			317
Underwriting gain	387			327			1,007			528
Net investment income	531			578			1,624			1,760
Other, including interest expense	(35		)	(38		)	(45		)	(125		)
Operating income	883			867			2,586			2,163
Net realized investment gains (losses)	(19		)	(3		)	99			6
Net income	$	864		$	864		$	2,685		$	2,169

GAAP COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING GAAP COMBINED RATIO

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.

Underlying GAAP combined ratio represents the GAAP combined ratio excluding the impact of net prior year reserve development and catastrophes.  In the opinion of the company’s management, this measure is meaningful to users of the financial statements to understand the company’s periodic underwriting profitability and the variability of underwriting profitability caused by the unpredictable nature of catastrophes and loss reserve development.

15

Calculation of the GAAP Combined Ratio

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions, pre-tax)	2013			2012			2013			2012
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$	3,297		$	3,359		$	9,980		$	10,509
Less:
Policyholder dividends	7			11			30			34
Allocated fee income	44			40			113			86
Loss ratio numerator	$	3,246		$	3,308		$	9,837		$	10,389
Underwriting expense ratio
Amortization of deferred acquisition costs	$	953		$	986		$	2,851		$	2,933
General and administrative expenses (G&A)	934			904			2,780			2,681
Less:
G&A included in Interest Expense and Other	6			5			17			17
Allocated fee income	63			52			173			147
Billing and policy fees and other	25			24			74			76
Expense ratio numerator	$	1,793		$	1,809		$	5,367		$	5,374
Earned premium	$	5,666		$	5,666		$	16,786		$	16,718
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	57.3		%	58.4		%	58.6		%	62.1		%
Underwriting expense ratio	31.6		%	31.9		%	32.0		%	32.2		%
Combined ratio	88.9		%	90.3		%	90.6		%	94.3		%

(1)For purposes of computing GAAP ratios, 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.

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 International market and the Financial, Professional & International (FP&II) segment.

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Reconciliation of the Impact of Changes in Foreign Exchange Rates on International Net Written Premiums to International Net Written Premiums

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
($ in millions)	2013			2012		Change		2013			2012		Change
Net written premiums - holding foreign exchange rates constant	$	220		$	200	10	%	$	795		$	763	4	%
Impact of changes in foreign exchange rates	(3		)					(8		)
Net written premiums	$	217		$	200	9	%	$	787		$	763	3	%

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

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
($ in millions)	2013			2012		Change		2013			2012		Change
Net written premiums - holding foreign exchange rates constant	$	773		$	729	6	%	$	2,274		$	2,173	5	%
Impact of changes in foreign exchange rates	(3		)					(8		)
Net written premiums	$	770		$	729	6	%	$	2,266		$	2,173	4	%

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.

17

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

	As of
	September 30,			December 31,			September 30,
($ in millions, except per share amounts)	2013			2012			2012
Tangible shareholders’ equity	$	19,589		$	18,604		$	18,879
Goodwill	3,365			3,365			3,365
Other intangible assets	347			381			393
Less: Impact of deferred tax on other intangible assets	(49		)	(48		)	(47		)
Adjusted shareholders’ equity	23,252			22,302			22,590
Net unrealized investment gains, net of tax	1,559			3,103			3,315
Shareholders’ equity	$	24,811		$	25,405		$	25,905
Common shares outstanding	364.1			377.4			382.0
Tangible book value per share	$	53.81		$	49.29		$	49.42
Adjusted book value per share	63.87			59.09			59.13
Book value per share	68.15			67.31			67.81

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 Capitalization

	As of
	September 30,			December 31,			September 30,
($ in millions)	2013			2012			2012
Debt	$	6,346		$	6,350		$	6,350
Shareholders’ equity	24,811			25,405			25,905
Total capitalization	31,157			31,755			32,255
Net unrealized investment gains, net of tax	1,559			3,103			3,315
Total capitalization excluding net unrealized gain on investments, net of tax	$	29,598		$	28,652		$	28,940
Debt-to-capital ratio	20.4		%	20.0		%	19.7		%
Debt-to-capital ratio excluding net unrealized investment gains, net of tax	21.4		%	22.2		%	21.9		%

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

18

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 sold to existing policyholders.  These are operating statistics, which are subject to change based upon a number of factors, including changes in actuarial estimates.  For the Business Insurance segment, retention, renewal premium change and new business volumes exclude National Accounts and Business Insurance-Other.

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 funds available at the holding company level to fund general corporate purposes, primarily the payment of shareholder dividends and debt service.  These funds consist of total cash, short-term invested assets and other readily marketable securities held by the holding company.

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:
Patrick Linehan	Gabriella Nawi	Marc Parr
917.778.6267	917.778.6844, or	860.277.0779
	Andrew Hersom
	860.277.0902

19

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - Third 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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	2,169		$	2,685
Net income per share:
Basic	$	2.04		$	1.27		$	2.23		$	0.79		$	2.36		$	2.44		$	2.33		$	5.55		$	7.12
Diluted	$	2.02		$	1.26		$	2.21		$	0.78		$	2.33		$	2.41		$	2.30		$	5.50		$	7.05
Operating income	$	801		$	495		$	867		$	278		$	887		$	816		$	883		$	2,163		$	2,586
Operating income per share:
Basic	$	2.03		$	1.27		$	2.24		$	0.72		$	2.33		$	2.15		$	2.38		$	5.53		$	6.86
Diluted	$	2.01		$	1.26		$	2.22		$	0.72		$	2.31		$	2.13		$	2.35		$	5.48		$	6.79
Return on equity	13.1		%	8.0		%	13.6		%	4.7		%	14.1		%	14.6		%	13.9		%	11.6		%	14.2		%
Operating return on equity	14.7		%	9.0		%	15.5		%	5.0		%	15.8		%	14.2		%	15.2		%	13.1		%	15.1		%
Total assets, at period end	$	104,838		$	104,330		$	105,445		$	104,938		$	103,897		$	101,900		$	102,685		$	105,445		$	102,685
Total equity, at period end	$	24,872		$	25,049		$	25,905		$	25,405		$	25,596		$	24,890		$	24,811		$	25,905		$	24,811
Book value per share, at period end	$	63.81		$	64.90		$	67.81		$	67.31		$	68.00		$	66.65		$	68.15		$	67.81		$	68.15
Less: Net unrealized investment gains, net of tax	7.28			7.72			8.68			8.22			7.61			4.53			4.28			8.68			4.28
Adjusted book value per share, at period end	$	56.53		$	57.18		$	59.13		$	59.09		$	60.39		$	62.12		$	63.87		$	59.13		$	63.87
Weighted average number of common shares outstanding (basic)	392.0			388.0			384.0			381.0			377.7			375.9			368.9			388.0			374.1
Weighted average number of common shares outstanding and common stock equivalents (diluted)	395.8			391.6			387.9			385.3			381.9			379.9			372.9			391.5			378.1
Common shares outstanding at period end	389.8			386.0			382.0			377.4			376.4			373.5			364.1			382.0			364.1
Common stock dividends declared	$	162		$	181		$	179		$	178		$	176		$	191		$	185		$	522		$	552
Common stock repurchased:
Under Board of Directors authorization
Shares	6.0			5.6			5.4			5.4			3.7			3.6			9.7			17.0			17.0
Cost	$	350		$	350		$	350		$	400		$	300		$	300		$	800		$	1,050		$	1,400
Other
Shares	0.8			—			—			0.1			0.7			—			0.1			0.8			0.8
Cost	$	52		$	1		$	—		$	2		$	58		$	1		$	1		$	53		$	60

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		3Q			3Q		3Q
	2012		2012		2012			2012		2013		2013		2013			2012		2013
Net income
Operating income	$	801	$	495	$	867		$	278	$	887	$	816	$	883		$	2,163	$	2,586
Net realized investment gains (losses)	5		4		(3		)	26		9		109		(19		)	6		99
Net income	$	806	$	499	$	864		$	304	$	896	$	925	$	864		$	2,169	$	2,685
Basic earnings per share
Operating income	$	2.03	$	1.27	$	2.24		$	0.72	$	2.33	$	2.15	$	2.38		$	5.53	$	6.86
Net realized investment gains (losses)	0.01		—		(0.01		)	0.07		0.03		0.29		(0.05		)	0.02		0.26
Net income	$	2.04	$	1.27	$	2.23		$	0.79	$	2.36	$	2.44	$	2.33		$	5.55	$	7.12
Diluted earnings per share
Operating income	$	2.01	$	1.26	$	2.22		$	0.72	$	2.31	$	2.13	$	2.35		$	5.48	$	6.79
Net realized investment gains (losses)	0.01		—		(0.01		)	0.06		0.02		0.28		(0.05		)	0.02		0.26
Net income	$	2.02	$	1.26	$	2.21		$	0.78	$	2.33	$	2.41	$	2.30		$	5.50	$	7.05

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Basic and Diluted
Net income, as reported	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	2,169		$	2,685
Participating share-based awards - allocated income	(6		)	(4		)	(6		)	(2		)	(6		)	(7		)	(6		)	(17		)	(20		)
Net income available to common shareholders - basic and diluted	$	800		$	495		$	858		$	302		$	890		$	918		$	858		$	2,152		$	2,665
Common Shares
Basic
Weighted average shares outstanding	392.0			388.0			384.0			381.0			377.7			375.9			368.9			388.0			374.1
Diluted
Weighted average shares outstanding	392.0			388.0			384.0			381.0			377.7			375.9			368.9			388.0			374.1
Weighted average effects of dilutive securities - stock options and performance shares	3.8			3.6			3.9			4.3			4.2			4.0			4.0			3.5			4.0
Diluted weighted average shares outstanding	395.8			391.6			387.9			385.3			381.9			379.9			372.9			391.5			378.1

(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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Revenues
Premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	16,718		$	16,786
Net investment income	740			738			722			689			670			687			657			2,200			2,014
Fee income	82			59			92			90			97			82			107			233			286
Net realized investment gains (losses)	10			4			(2		)	39			10			167			(22		)	12			155
Other revenues	37			29			34			20			34			135			44			100			213
Total revenues	6,392			6,359			6,512			6,477			6,328			6,674			6,452			19,263			19,454
Claims and expenses
Claims and claim adjustment expenses	3,364			3,786			3,359			4,167			3,153			3,530			3,297			10,509			9,980
Amortization of deferred acquisition costs	971			976			986			977			948			950			953			2,933			2,851
General and administrative expenses	884			893			904			929			915			931			934			2,681			2,780
Interest expense	96			96			93			93			92			86			91			285			269
Total claims and expenses	5,315			5,751			5,342			6,166			5,108			5,497			5,275			16,408			15,880
Income before income taxes	1,077			608			1,170			311			1,220			1,177			1,177			2,855			3,574
Income tax expense	271			109			306			7			324			252			313			686			889
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	2,169		$	2,685
Other-than-temporary impairments (OTTI)
Total OTTI gains (losses)	$	—		$	11		$	17		$	(1	)	$	—		$	(1	)	$	—		$	28		$	(1	)
OTTI losses recognized in net realized investment gains (losses)	$	(4	)	$	(4	)	$	(3	)	$	(4	)	$	(5	)	$	(2	)	$	(3	)	$	(11	)	$	(10	)
OTTI gains recognized in other comprehensive income	$	4		$	15		$	20		$	3		$	5		$	1		$	3		$	39		$	9
Other statistics
Effective tax rate on net investment income	19.9		%	20.2		%	20.0		%	19.2		%	19.2		%	19.7		%	19.1		%	20.0		%	19.3		%
Net investment income (after-tax)	$	593		$	589		$	578		$	556		$	542		$	551		$	531		$	1,760		$	1,624
Catastrophes, net of reinsurance:
Pre-tax	$	168		$	549		$	91		$	1,054		$	99		$	340		$	99		$	808		$	538
After-tax	$	109		$	357		$	59		$	689		$	65		$	221		$	64		$	525		$	350
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	304		$	221		$	193		$	222		$	231		$	192		$	158		$	718		$	581
After-tax	$	200		$	147		$	129		$	146		$	154		$	125		$	107		$	476		$	386

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Underwriting gain (loss)	$	248		$	(47	)	$	327		$	(232	)	$	385		$	235		$	387		$	528		$	1,007
Net investment income	593			589			578			556			542			551			531			1,760			1,624
Other, including interest expense	(40		)	(47		)	(38		)	(46		)	(40		)	30			(35		)	(125		)	(45		)
Operating income	801			495			867			278			887			816			883			2,163			2,586
Net realized investment gains (losses)	5			4			(3		)	26			9			109			(19		)	6			99
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	2,169		$	2,685
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.1		%	68.1		%	58.4		%	73.0		%	56.2		%	62.3		%	57.3		%	62.1		%	58.6		%
Underwriting expense ratio	32.1		%	32.4		%	31.9		%	32.4		%	32.3		%	32.0		%	31.6		%	32.2		%	32.0		%
Combined ratio	92.2		%	100.5		%	90.3		%	105.4		%	88.5		%	94.3		%	88.9		%	94.3		%	90.6		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	91.4		%	99.8		%	89.3		%	104.6		%	87.8		%	93.8		%	88.4		%	93.5		%	90.0		%
Impact of catastrophes on combined ratio	3.1		%	10.0		%	1.6		%	18.7		%	1.8		%	6.1		%	1.7		%	4.9		%	3.2		%
Impact of prior year reserve development on combined ratio	-5.5		%	-4.0		%	-3.4		%	-4.0		%	-4.1		%	-3.5		%	-2.8		%	-4.3		%	-3.4		%

(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		3Q		3Q		3Q
	2012		2012		2012		2012		2013		2013		2013		2012		2013
Billing and policy fees and other	$	27	$	25	$	24	$	22	$	24	$	25	$	25	$	76	$	74
Fee income:
Loss and loss adjustment expenses	$	35	$	11	$	40	$	38	$	42	$	27	$	44	$	86	$	113
Underwriting expenses	47		48		52		52		55		55		63		147		173
Total fee income	$	82	$	59	$	92	$	90	$	97	$	82	$	107	$	233	$	286

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Revenues
Premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	16,718		$	16,786
Net investment income	740			738			722			689			670			687			657			2,200			2,014
Fee income	82			59			92			90			97			82			107			233			286
Other revenues	37			29			34			20			34			135			44			100			213
Total revenues	6,382			6,355			6,514			6,438			6,318			6,507			6,474			19,251			19,299
Claims and expenses
Claims and claim adjustment expenses	3,364			3,786			3,359			4,167			3,153			3,530			3,297			10,509			9,980
Amortization of deferred acquisition costs	971			976			986			977			948			950			953			2,933			2,851
General and administrative expenses	884			893			904			929			915			931			934			2,681			2,780
Interest expense	96			96			93			93			92			86			91			285			269
Total claims and expenses	5,315			5,751			5,342			6,166			5,108			5,497			5,275			16,408			15,880
Operating income before income taxes	1,067			604			1,172			272			1,210			1,010			1,199			2,843			3,419
Income tax expense (benefit)	266			109			305			(6		)	323			194			316			680			833
Operating income	$	801		$	495		$	867		$	278		$	887		$	816		$	883		$	2,163		$	2,586
Other statistics
Effective tax rate on net investment income	19.9		%	20.2		%	20.0		%	19.2		%	19.2		%	19.7		%	19.1		%	20.0		%	19.3		%
Net investment income (after-tax)	$	593		$	589		$	578		$	556		$	542		$	551		$	531		$	1,760		$	1,624
Catastrophes, net of reinsurance:
Pre-tax	$	168		$	549		$	91		$	1,054		$	99		$	340		$	99		$	808		$	538
After-tax	$	109		$	357		$	59		$	689		$	65		$	221		$	64		$	525		$	350
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	304		$	221		$	193		$	222		$	231		$	192		$	158		$	718		$	581
After-tax	$	200		$	147		$	129		$	146		$	154		$	125		$	107		$	476		$	386

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Statutory underwriting
Gross written premiums	$	6,073		$	6,240		$	6,271		$	5,725		$	6,188		$	6,247		$	6,310		$	18,584		$	18,745
Net written premiums	$	5,497		$	5,868		$	5,697		$	5,385		$	5,597		$	5,824		$	5,713		$	17,062		$	17,134
Net earned premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	16,718		$	16,786
Losses and loss adjustment expenses	3,318			3,791			3,310			4,119			3,070			3,490			3,250			10,419			9,810
Underwriting expenses	1,797			1,838			1,840			1,780			1,799			1,808			1,799			5,475			5,406
Statutory underwriting gain (loss)	408			(100		)	516			(260		)	648			305			617			824			1,570
Policyholder dividends	12			11			11			12			10			13			7			34			30
Statutory underwriting gain (loss) after policyholder dividends	$	396		$	(111	)	$	505		$	(272	)	$	638		$	292		$	610		$	790		$	1,540
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,037		$	40,528		$	40,037
Increase (decrease) in reserves	$	(108	)	$	134		$	(397	)	$	128		$	(441	)	$	(70	)	$	(108	)	$	(371	)	$	(619	)
Statutory basis surplus	$	19,867		$	19,841		$	20,291		$	20,048		$	20,692		$	20,672		$	21,509		$	20,291		$	21,509
Net written premiums/surplus (1)	1.12:1			1.12:1			1.10:1			1.12:1			1.09:1			1.09:1			1.05:1			1.10:1			1.05:1

(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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Written premiums
Gross	$	6,073		$	6,240		$	6,271		$	5,725		$	6,188		$	6,247		$	6,310		$	18,584		$	18,745
Ceded	(576		)	(372		)	(574		)	(340		)	(591		)	(423		)	(597		)	(1,522		)	(1,611		)
Net	$	5,497		$	5,868		$	5,697		$	5,385		$	5,597		$	5,824		$	5,713		$	17,062		$	17,134
Earned premiums
Gross	$	5,973		$	5,985		$	6,132		$	6,110		$	5,985		$	6,091		$	6,163		$	18,090		$	18,239
Ceded	(450		)	(456		)	(466		)	(471		)	(468		)	(488		)	(497		)	(1,372		)	(1,453		)
Net	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	16,718		$	16,786

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Revenues
Premiums	$	2,876		$	2,860		$	2,982		$	2,973		$	2,942		$	3,018		$	3,046		$	8,718		$	9,006
Net investment income	532			536			524			498			487			502			479			1,592			1,468
Fee income	82			58			92			90			97			82			106			232			285
Other revenues	14			8			9			9			13			114			8			31			135
Total revenues	3,504			3,462			3,607			3,570			3,539			3,716			3,639			10,573			10,894
Claims and expenses
Claims and claim adjustment expenses	1,709			2,049			1,906			2,193			1,749			2,008			1,965			5,664			5,722
Amortization of deferred acquisition costs	467			465			477			475			475			481			479			1,409			1,435
General and administrative expenses	498			504			504			514			517			511			503			1,506			1,531
Total claims and expenses	2,674			3,018			2,887			3,182			2,741			3,000			2,947			8,579			8,688
Operating income before income taxes	830			444			720			388			798			716			692			1,994			2,206
Income tax expense	218			82			177			62			208			137			166			477			511
Operating income	$	612		$	362		$	543		$	326		$	590		$	579		$	526		$	1,517		$	1,695
Other statistics
Effective tax rate on net investment income	20.0		%	20.3		%	20.1		%	19.1		%	19.2		%	19.8		%	19.2		%	20.1		%	19.4		%
Net investment income (after-tax)	$	425		$	428		$	419		$	402		$	394		$	402		$	387		$	1,272		$	1,183
Catastrophes, net of reinsurance:
Pre-tax	$	53		$	252		$	50		$	439		$	35		$	148		$	61		$	355		$	244
After-tax	$	34		$	164		$	33		$	285		$	23		$	96		$	40		$	231		$	159
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	248		$	58		$	41		$	120		$	113		$	55		$	36		$	347		$	204
After-tax	$	162		$	38		$	27		$	78		$	75		$	36		$	24		$	227		$	135

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Underwriting gain (loss)	$	177		$	(71	)	$	117		$	(82	)	$	188		$	102		$	134		$	223		$	424
Net investment income	425			428			419			402			394			402			387			1,272			1,183
Other	10			5			7			6			8			75			5			22			88
Operating income	$	612		$	362		$	543		$	326		$	590		$	579		$	526		$	1,517		$	1,695
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	57.8		%	71.0		%	62.3		%	72.2		%	57.7		%	65.3		%	63.0		%	63.7		%	62.0		%
Underwriting expense ratio	31.8		%	32.0		%	31.0		%	31.3		%	31.7		%	30.9		%	30.0		%	31.6		%	30.9		%
Combined ratio	89.6		%	103.0		%	93.3		%	103.5		%	89.4		%	96.2		%	93.0		%	95.3		%	92.9		%
Impact of catastrophes on combined ratio	1.8		%	8.8		%	1.7		%	14.7		%	1.2		%	4.9		%	2.0		%	4.1		%	2.7		%
Impact of prior year reserve development on combined ratio	-8.6		%	-2.0		%	-1.4		%	-4.0		%	-3.9		%	-1.8		%	-1.2		%	-4.0		%	-2.3		%

(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		3Q		3Q		3Q
	2012		2012		2012		2012		2013		2013		2013		2012		2013
Billing and policy fees and other	$	5	$	5	$	5	$	4	$	4	$	5	$	4	$	15	$	13
Fee income:
Loss and loss adjustment expenses	$	35	$	10	$	40	$	38	$	42	$	27	$	43	$	85	$	112
Underwriting expenses	47		48		52		52		55		55		63		147		173
Total fee income	$	82	$	58	$	92	$	90	$	97	$	82	$	106	$	232	$	285

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		3Q		3Q		3Q
	2012		2012			2012		2012			2013		2013		2013		2012		2013
Statutory underwriting
Gross written premiums	$	3,429	$	3,280		$	3,382	$	3,020		$	3,626	$	3,344	$	3,483	$	10,091	$	10,453
Net written premiums	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	3,032	$	9,088	$	9,360
Net earned premiums	$	2,876	$	2,860		$	2,982	$	2,973		$	2,942	$	3,018	$	3,046	$	8,718	$	9,006
Losses and loss adjustment expenses	1,663		2,057			1,860		2,147			1,668		1,970		1,920		5,580		5,558
Underwriting expenses	940		928			937		894			969		933		913		2,805		2,815
Statutory underwriting gain (loss)	273		(125		)	185		(68		)	305		115		213		333		633
Policyholder dividends	10		8			9		10			8		11		5		27		24
Statutory underwriting gain (loss) after policyholder dividends	$	263	$	(133	)	$	176	$	(78	)	$	297	$	104	$	208	$	306	$	609

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		3Q		3Q		3Q
	2012		2012			2012		2012			2013		2013		2013		2012		2013
Net written premiums by market
Select Accounts	$	718	$	721		$	679	$	657		$	724	$	709	$	654	$	2,118	$	2,087
Commercial Accounts	861		717			805		718			908		732		807		2,383		2,447
National Accounts	235		226			202		244			277		242		236		663		755
Industry-Focused Underwriting	648		636			671		599			699		653		673		1,955		2,025
Target Risk Underwriting	429		486			382		369			448		500		441		1,297		1,389
Specialized Distribution	208		242			222		198			204		232		220		672		656
Total core	3,099		3,028			2,961		2,785			3,260		3,068		3,031		9,088		9,359
Business Insurance other	1		(2		)	1		(1		)	—		—		1		—		1
Total	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	3,032	$	9,088	$	9,360
Net written premiums by product line
Commercial multi-peril	$	819	$	777		$	769	$	735		$	828	$	771	$	755	$	2,365	$	2,354
Workers’ compensation	944		800			849		807			1,056		860		885		2,593		2,801
Commercial automobile	489		499			498		438			484		476		488		1,486		1,448
Commercial property	416		481			373		377			427		484		424		1,270		1,335
General liability	426		464			452		423			458		469		458		1,342		1,385
Other	6		5			21		4			7		8		22		32		37
Total	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	3,032	$	9,088	$	9,360
National Accounts
Additions to claim volume under administration (1)	$	639	$	472		$	480	$	549		$	701	$	523	$	523	$	1,591	$	1,747
Written fees	$	88	$	77		$	77	$	74		$	104	$	88	$	92	$	242	$	284

(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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Revenues
Premiums	$	737		$	766		$	772		$	770		$	735		$	751		$	785		$	2,275		$	2,271
Net investment income	104			99			97			95			92			91			88			300			271
Fee income	—			1			—			—			—			—			1			1			1
Other revenues	8			5			8			5			5			5			5			21			15
Total revenues	849			871			877			870			832			847			879			2,597			2,558
Claims and expenses
Claims and claim adjustment expenses	341			302			309			362			302			332			331			952			965
Amortization of deferred acquisition costs	143			149			149			148			143			147			155			441			445
General and administrative expenses	165			165			165			172			162			172			169			495			503
Total claims and expenses	649			616			623			682			607			651			655			1,888			1,913
Operating income before income taxes	200			255			254			188			225			196			224			709			645
Income tax expense	51			73			74			57			62			42			64			198			168
Operating income	$	149		$	182		$	180		$	131		$	163		$	154		$	160		$	511		$	477
Other statistics
Effective tax rate on net investment income	18.9		%	19.7		%	19.3		%	19.1		%	18.6		%	18.6		%	18.2		%	19.3		%	18.5		%
Net investment income (after-tax)	$	85		$	79		$	78		$	77		$	75		$	74		$	72		$	242		$	221
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	4		$	1		$	45		$	—		$	46		$	—		$	5		$	46
After-tax	$	—		$	3		$	—		$	34		$	—		$	30		$	—		$	3		$	30
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	46		$	96		$	87		$	69		$	58		$	72		$	74		$	229		$	204
After-tax	$	31		$	66		$	60		$	46		$	40		$	47		$	51		$	157		$	138

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			3Q			3Q			3Q
		2012			2012			2012			2012			2013			2013			2013			2012			2013
Underwriting gain		$	59		$	99		$	97		$	50		$	85		$	76		$	85		$	255		$	246
Net investment income		85			79			78			77			75			74			72			242			221
Other		5			4			5			4			3			4			3			14			10
Operating income		$	149		$	182		$	180		$	131		$	163		$	154		$	160		$	511		$	477
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio		46.0		%	39.1		%	39.7		%	46.6		%	40.8		%	43.9		%	41.8		%	41.5		%	42.2		%
Underwriting expense ratio		41.8		%	40.9		%	40.5		%	41.7		%	41.5		%	42.4		%	41.4		%	41.1		%	41.7		%
Combined ratio		87.8		%	80.0		%	80.2		%	88.3		%	82.3		%	86.3		%	83.2		%	82.6		%	83.9		%
Impact of catastrophes on combined ratio		0.0		%	0.4		%	0.1		%	5.9		%	0.0		%	6.1		%	0.0		%	0.2		%	2.0		%
Impact of prior year reserve development on combined ratio		-6.1		%	-12.5		%	-11.3		%	-9.1		%	-7.8		%	-9.7		%	-9.3		%	-10.0		%	-9.0		%
(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			3Q			3Q			3Q
		2012			2012			2012			2012			2013			2013			2013			2012			2013
	Fee income:
	Loss and loss adjustment expenses	$	—		$	1		$	—		$	—		$	—		$	—		$	1		$	1		$	1
	Underwriting expenses	—			—			—			—			—			—			—			—			—
	Total fee income	$	—		$	1		$	—		$	—		$	—		$	—		$	1		$	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		3Q		3Q		3Q
	2012		2012		2012		2012		2013		2013		2013		2012		2013
Statutory underwriting
Gross written premiums	$	791	$	882	$	763	$	839	$	799	$	906	$	799	$	2,436	$	2,504
Net written premiums	$	604	$	840	$	729	$	808	$	647	$	849	$	770	$	2,173	$	2,266
Net earned premiums	$	737	$	766	$	772	$	770	$	735	$	751	$	785	$	2,275	$	2,271
Losses and loss adjustment expenses	341		299		307		359		300		330		329		947		959
Underwriting expenses	316		319		295		314		317		323		313		930		953
Statutory underwriting gain	80		148		170		97		118		98		143		398		359
Policyholder dividends	2		3		2		2		2		2		2		7		6
Statutory underwriting gain after policyholder dividends	$	78	$	145	$	168	$	95	$	116	$	96	$	141	$	391	$	353

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		3Q		3Q		3Q
	2012		2012		2012		2012		2013		2013		2013		2012		2013
Net written premiums by market
Bond & Financial Products	$	357	$	524	$	529	$	514	$	395	$	531	$	553	$	1,410	$	1,479
International	247		316		200		294		252		318		217		763		787
Total	$	604	$	840	$	729	$	808	$	647	$	849	$	770	$	2,173	$	2,266
Net written premiums by product line
General liability	$	143	$	236	$	233	$	247	$	168	$	237	$	249	$	612	$	654
Fidelity & surety	172		248		246		229		178		253		255		666		686
International	247		316		200		294		252		318		217		763		787
Other	42		40		50		38		49		41		49		132		139
Total	$	604	$	840	$	729	$	808	$	647	$	849	$	770	$	2,173	$	2,266

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Revenues
Premiums	$	1,910		$	1,903		$	1,912		$	1,896		$	1,840		$	1,834		$	1,835		$	5,725		$	5,509
Net investment income	104			103			101			96			91			94			90			308			275
Other revenues	19			16			17			14			18			15			34			52			67
Total revenues	2,033			2,022			2,030			2,006			1,949			1,943			1,959			6,085			5,851
Claims and expenses
Claims and claim adjustment expenses	1,314			1,435			1,144			1,612			1,102			1,190			1,001			3,893			3,293
Amortization of deferred acquisition costs	361			362			360			354			330			322			319			1,083			971
General and administrative expenses	214			219			230			237			232			241			256			663			729
Total claims and expenses	1,889			2,016			1,734			2,203			1,664			1,753			1,576			5,639			4,993
Operating income (loss) before income taxes	144			6			296			(197		)	285			190			383			446			858
Income tax expense (benefit)	36			(11		)	90			(83		)	88			48			121			115			257
Operating income (loss)	$	108		$	17		$	206		$	(114	)	$	197		$	142		$	262		$	331		$	601
Other statistics
Effective tax rate on net investment income	20.1		%	20.4		%	20.2		%	19.4		%	19.5		%	20.1		%	19.5		%	20.2		%	19.7		%
Net investment income (after-tax)	$	83		$	82		$	81		$	77		$	73		$	75		$	72		$	246		$	220
Catastrophes, net of reinsurance:
Pre-tax	$	115		$	293		$	40		$	570		$	64		$	146		$	38		$	448		$	248
After-tax	$	75		$	190		$	26		$	370		$	42		$	95		$	24		$	291		$	161
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	10		$	67		$	65		$	33		$	60		$	65		$	48		$	142		$	173
After-tax	$	7		$	43		$	42		$	22		$	39		$	42		$	32		$	92		$	113

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Underwriting gain (loss)	$	12		$	(75	)	$	113		$	(200	)	$	112		$	57		$	168		$	50		$	337
Net investment income	83			82			81			77			73			75			72			246			220
Other	13			10			12			9			12			10			22			35			44
Operating income (loss)	$	108		$	17		$	206		$	(114	)	$	197		$	142		$	262		$	331		$	601
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	68.8		%	75.4		%	59.8		%	85.0		%	59.9		%	64.9		%	54.5		%	68.0		%	59.8		%
Underwriting expense ratio	29.0		%	29.4		%	29.9		%	30.2		%	29.5		%	29.6		%	30.2		%	29.4		%	29.7		%
Combined ratio	97.8		%	104.8		%	89.7		%	115.2		%	89.4		%	94.5		%	84.7		%	97.4		%	89.5		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	95.7		%	102.9		%	86.8		%	113.1		%	87.5		%	92.9		%	82.9		%	95.1		%	87.8		%
Impact of catastrophes on combined ratio	6.0		%	15.3		%	2.1		%	30.1		%	3.5		%	8.0		%	2.0		%	7.8		%	4.5		%
Impact of prior year reserve development on combined ratio	-0.5		%	-3.5		%	-3.4		%	-1.8		%	-3.3		%	-3.5		%	-2.6		%	-2.5		%	-3.2		%

(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		3Q		3Q		3Q
	2012		2012		2012		2012		2013		2013		2013		2012		2013
Billing and policy fees and other	$	22	$	20	$	19	$	18	$	20	$	20	$	21	$	61	$	61

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		3Q		3Q		3Q
	2012		2012			2012		2012			2013		2013		2013		2012		2013
Statutory underwriting
Gross written premiums	$	1,853	$	2,078		$	2,126	$	1,866		$	1,763	$	1,997	$	2,028	$	6,057	$	5,788
Net written premiums	$	1,793	$	2,002		$	2,006	$	1,793		$	1,690	$	1,907	$	1,911	$	5,801	$	5,508
Net earned premiums	$	1,910	$	1,903		$	1,912	$	1,896		$	1,840	$	1,834	$	1,835	$	5,725	$	5,509
Losses and loss adjustment expenses	1,314		1,435			1,143		1,613			1,102		1,190		1,001		3,892		3,293
Underwriting expenses	541		591			608		572			513		552		573		1,740		1,638
Statutory underwriting gain (loss)	$	55	$	(123	)	$	161	$	(289	)	$	225	$	92	$	261	$	93	$	578
Policies in force (in thousands)
Automobile	2,554		2,505			2,436		2,361			2,286		2,217		2,151		2,436		2,151
Homeowners and other (1)	4,971		4,902			4,794		4,672			4,563		4,477		4,386		4,794		4,386

(1)  In 3Q 2013, the Company sold the renewal rights related to its National Flood Insurance Program business.  Policies in force have been adjusted to exclude National Flood Insurance Program business for all periods presented.

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Statutory underwriting
Gross written premiums	$	904		$	903		$	911		$	826		$	835		$	838		$	834		$	2,718		$	2,507
Net written premiums	$	900		$	899		$	906		$	822		$	831		$	834		$	828		$	2,705		$	2,493
Net earned premiums	$	902		$	891		$	888		$	875		$	844		$	837		$	827		$	2,681		$	2,508
Losses and loss adjustment expenses	641			674			659			778			594			599			591			1,974			1,784
Underwriting expenses	235			238			233			229			218			224			222			706			664
Statutory underwriting gain (loss)	$	26		$	(21	)	$	(4	)	$	(132	)	$	32		$	14		$	14		$	1		$	60
Other statistics
GAAP combined ratio (2):
Loss and loss adjustment expense ratio	71.1		%	75.6		%	74.1		%	89.0		%	70.4		%	71.6		%	71.5		%	73.6		%	71.1		%
Underwriting expense ratio	25.4		%	25.9		%	25.3		%	26.5		%	25.6		%	26.2		%	26.4		%	25.5		%	26.1		%
Combined ratio	96.5		%	101.5		%	99.4		%	115.5		%	96.0		%	97.8		%	97.9		%	99.1		%	97.2		%
Impact of catastrophes on combined ratio	1.0		%	3.8		%	0.4		%	7.9		%	1.0		%	1.4		%	0.3		%	1.8		%	0.9		%
Impact of prior year reserve development on combined ratio	-0.2		%	0.0		%	0.9		%	1.9		%	0.6		%	0.0		%	0.0		%	0.2		%	0.2		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	9		$	34		$	4		$	69		$	8		$	12		$	2		$	47		$	22
After-tax	$	6		$	22		$	3		$	44		$	6		$	7		$	1		$	31		$	14
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	2		$	—		$	(8	)	$	(17	)	$	(6	)	$	—		$	—		$	(6	)	$	(6	)
After-tax	$	1		$	—		$	(5	)	$	(11	)	$	(4	)	$	—		$	—		$	(4	)	$	(4	)
Policies in force (in thousands)	2,473			2,423			2,353			2,278			2,204			2,136			2,071
Change from prior year quarter	-1.0		%	-3.2		%	-5.9		%	-8.7		%	-10.9		%	-11.8		%	-12.0		%
Change from prior quarter	-0.8		%	-2.0		%	-2.9		%	-3.2		%	-3.2		%	-3.1		%	-3.0		%

(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		3Q		3Q		3Q
	2012		2012		2012		2012		2013		2013		2013		2012		2013
Billing and policy fees and other	$	12	$	10	$	11	$	9	$	10	$	9	$	9	$	33	$	28

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Statutory underwriting
Gross written premiums	$	912		$	1,135		$	1,171		$	1,002		$	889		$	1,119		$	1,150		$	3,218		$	3,158
Net written premiums	$	855		$	1,064		$	1,056		$	934		$	820		$	1,033		$	1,039		$	2,975		$	2,892
Net earned premiums	$	973		$	976		$	986		$	983		$	957		$	958		$	969		$	2,935		$	2,884
Losses and loss adjustment expenses	643			730			457			800			480			561			382			1,830			1,423
Underwriting expenses	262			309			315			294			255			293			313			886			861
Statutory underwriting gain (loss)	$	68		$	(63	)	$	214		$	(111	)	$	222		$	104		$	274		$	219		$	600
Other statistics
GAAP combined ratio (2):
Loss and loss adjustment expense ratio	66.0		%	74.8		%	46.4		%	81.4		%	50.2		%	58.6		%	39.4		%	62.4		%	49.3		%
Underwriting expense ratio	29.0		%	29.4		%	29.0		%	29.5		%	29.8		%	30.1		%	30.8		%	29.1		%	30.3		%
Combined ratio	95.0		%	104.2		%	75.4		%	110.9		%	80.0		%	88.7		%	70.2		%	91.5		%	79.6		%
Impact of catastrophes on combined ratio	10.7		%	26.1		%	3.6		%	50.3		%	5.6		%	13.9		%	3.6		%	13.5		%	7.7		%
Impact of prior year reserve development on combined ratio	-1.1		%	-6.9		%	-7.3		%	-4.9		%	-6.7		%	-6.7		%	-5.0		%	-5.1		%	-6.2		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	104		$	256		$	35		$	495		$	54		$	133		$	35		$	395		$	222
After-tax	$	68		$	166		$	22		$	322		$	35		$	87		$	22		$	256		$	144
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	10		$	68		$	71		$	48		$	65		$	65		$	48		$	149		$	178
After-tax	$	7		$	44		$	46		$	31		$	42		$	42		$	32		$	97		$	116
Policies in force (in thousands) (3)	4,903			4,830			4,718			4,594			4,484			4,396			4,303
Change from prior year quarter	-0.2		%	-2.1		%	-4.6		%	-6.9		%	-8.5		%	-9.0		%	-8.8		%
Change from prior quarter	-0.7		%	-1.5		%	-2.3		%	-2.6		%	-2.4		%	-2.0		%	-2.1		%

(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		3Q		3Q		3Q
	2012		2012		2012		2012		2013		2013		2013		2012		2013
Billing and policy fees and other	$	10	$	8	$	9	$	8	$	9	$	10	$	12	$	27	$	31

(3)  In 3Q 2013, the Company sold the renewal rights related to its National Flood Insurance Program business.  Policies in force have been adjusted to exclude National Flood Insurance Program business for all periods presented.

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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Net written premiums
Automobile	$	29		$	28		$	32		$	26		$	29		$	27		$	30		$	89		$	86
Homeowners and other	9			11			12			11			10			13			14			32			37
Total net written premiums	$	38		$	39		$	44		$	37		$	39		$	40		$	44		$	121		$	123
Revenues
Premiums	$	35		$	36		$	38		$	38		$	39		$	39		$	39		$	109		$	117
Other revenues	—			—			1			—			—			—			1			1			1
Total revenues	35			36			39			38			39			39			40			110			118
Claims and expenses
Claims and claim adjustment expenses	31			31			27			34			28			30			28			89			86
Amortization of deferred acquisition costs	1			1			1			—			1			1			1			3			3
General and administrative expenses	42			42			61			51			40			34			37			145			111
Total claims and expenses	74			74			89			85			69			65			66			237			200
Operating loss before income taxes	(39		)	(38		)	(50		)	(47		)	(30		)	(26		)	(26		)	(127		)	(82		)
Income taxes	(14		)	(13		)	(17		)	(17		)	(11		)	(9		)	(9		)	(44		)	(29		)
Operating loss	$	(25	)	$	(25	)	$	(33	)	$	(30	)	$	(19	)	$	(17	)	$	(17	)	$	(83	)	$	(53	)
Other statistics
Policies in force (in thousands)
Automobile	81			82			83			83			82			81			80
Homeowners and other	68			72			76			78			79			81			83
Catastrophes, net of reinsurance:
Pre-tax	$	2		$	3		$	1		$	6		$	2		$	1		$	1		$	6		$	4
After-tax	$	1		$	2		$	1		$	4		$	1		$	1		$	1		$	4		$	3
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	(2	)	$	(1	)	$	2		$	2		$	1		$	—		$	—		$	(1	)	$	1
After-tax	$	(1	)	$	(1	)	$	1		$	2		$	1		$	—		$	—		$	(1	)	$	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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Revenues
Other revenues	$	(4	)	$	—		$	—		$	(8	)	$	(2	)	$	1		$	(3	)	$	(4	)	$	(4	)
Claims and expenses
Interest expense	96			96			93			93			92			86			91			285			269
General and administrative expenses	7			5			5			6			4			7			6			17			17
Total claims and expenses	103			101			98			99			96			93			97			302			286
Operating loss before income tax benefit	(107		)	(101		)	(98		)	(107		)	(98		)	(92		)	(100		)	(306		)	(290		)
Income taxes	(39		)	(35		)	(36		)	(42		)	(35		)	(33		)	(35		)	(110		)	(103		)
Operating loss	$	(68	)	$	(66	)	$	(62	)	$	(65	)	$	(63	)	$	(59	)	$	(65	)	$	(196	)	$	(187	)

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

22

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

	September 30,			December 31,
	2013 (1)			2012
Assets
Fixed maturities, available for sale, at fair value (amortized cost $59,960 and $60,829)	$	62,102		$	65,393
Equity securities, available for sale, at fair value (cost $470 and $462)	708			645
Real estate investments	917			883
Short-term securities	5,379			3,483
Other investments	3,425			3,434
Total investments	72,531			73,838
Cash	295			330
Investment income accrued	673			752
Premiums receivable	6,113			5,872
Reinsurance recoverables	9,544			10,712
Ceded unearned premiums	1,015			856
Deferred acquisition costs	1,802			1,792
Deferred taxes	321			—
Contractholder receivables	4,450			4,806
Goodwill	3,365			3,365
Other intangible assets	347			381
Other assets	2,229			2,234
Total assets	$	102,685		$	104,938
Liabilities
Claims and claim adjustment expense reserves	$	49,153		$	50,922
Unearned premium reserves	11,716			11,241
Contractholder payables	4,450			4,806
Payables for reinsurance premiums	438			346
Deferred taxes	—			338
Debt	6,346			6,350
Other liabilities	5,771			5,530
Total liabilities	77,874			79,533
Shareholders’ equity
Common stock (1,750.0 shares authorized; 364.1 and 377.4 shares issued and outstanding)	21,425			21,161
Retained earnings	23,485			21,352
Accumulated other comprehensive income	705			2,236
Treasury stock, at cost (390.1 and 372.3 shares)	(20,804		)	(19,344		)
Total shareholders’ equity	24,811			25,405
Total liabilities and shareholders’ equity	$	102,685		$	104,938

(1)  Preliminary.

23

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

	September 30,		Pre-tax Book		December 31,		Pre-tax Book
	2013		Yield (1)		2012		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	26,251	3.72	%	$	27,188	3.92	%
Tax-exempt fixed maturities	35,851		3.84	%	38,205		3.87	%
Total fixed maturities	62,102		3.79	%	65,393		3.89	%
Non-redeemable preferred stocks	124		6.35	%	135		6.27	%
Common stocks	584				510
Total equity securities	708				645
Real estate investments	917				883
Short-term securities	5,379		0.15	%	3,483		0.21	%
Private equities	1,945				1,888
Hedge funds	368				381
Real estate partnerships	619				610
Mortgage loans	2		5.27	%	4		6.21	%
Trading securities	—				30
Other investments	491				521
Total other investments	3,425				3,434
Total investments	$	72,531			$	73,838
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	1,559			$	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)

	September 30,		December 31,
	2013		2012
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,109	$	2,222
Obligations of states and political subdivisions:
Pre-refunded	9,629		9,025
All other	26,621		29,656
Total	36,250		38,681
Debt securities issued by foreign governments	1,974		2,257
Mortgage-backed securities - principally obligations of U.S. Government agencies	2,516		2,997
Corporates (including redeemable preferreds)	19,253		19,236
Total fixed maturities	$	62,102	$	65,393

Fixed Maturities

Quality Characteristics (1)

	September 30, 2013
	Amount		% of Total
Quality Ratings
Aaa	$	26,206	42.2	%
Aa	19,402		31.2
A	8,571		13.8
Baa	5,910		9.5
Total investment grade	60,089		96.7
Ba	1,030		1.7
B	475		0.8
Caa and lower	508		0.8
Total below investment grade	2,013		3.3
Total fixed maturities	$	62,102	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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Gross investment income
Fixed maturities	$	620		$	611		$	604		$	604		$	586		$	574		$	571		$	1,835		$	1,731
Short-term securities	2			3			3			2			2			2			3			8			7
Other	128			133			124			91			92			120			91			385			303
	750			747			731			697			680			696			665			2,228			2,041
Investment expenses	10			9			9			8			10			9			8			28			27
Net investment income, pre-tax	740			738			722			689			670			687			657			2,200			2,014
Income taxes	147			149			144			133			128			136			126			440			390
Net investment income, after-tax	$	593		$	589		$	578		$	556		$	542		$	551		$	531		$	1,760		$	1,624
Effective tax rate	19.9		%	20.2		%	20.0		%	19.2		%	19.2		%	19.7		%	19.1		%	20.0		%	19.3		%
Average invested assets (1)	$	69,494		$	69,623		$	69,813		$	70,419		$	69,996		$	69,701		$	70,419		$	69,684		$	70,128
Average yield pre-tax (1)	4.3		%	4.2		%	4.1		%	3.9		%	3.8		%	3.9		%	3.7		%	4.2		%	3.8		%
Average yield after-tax	3.4		%	3.4		%	3.3		%	3.2		%	3.1		%	3.2		%	3.0		%	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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Net realized investment gains (losses)
Fixed maturities	$	8		$	17		$	14		$	14		$	11		$	14		$	5		$	39		$	30
Equity securities	3			2			—			(1		)	6			4			(1		)	5			9
Other (1)	(1		)	(15		)	(16		)	26			(7		)	149			(26		)	(32		)	116
Realized investment gains (losses) before tax	10			4			(2		)	39			10			167			(22		)	12			155
Related taxes	5			—			1			13			1			58			(3		)	6			56
Net realized investment gains (losses)	$	5		$	4		$	(3	)	$	26		$	9		$	109		$	(19	)	$	6		$	99
Gross investment gains (1)	$	121		$	78		$	78		$	97		$	108		$	352		$	12		$	277		$	472
Gross investment losses before impairments (1)	(107		)	(70		)	(77		)	(54		)	(93		)	(183		)	(31		)	(254		)	(307		)
Net investment gains before impairments	14			8			1			43			15			169			(19		)	23			165
Other-than-temporary impairment losses	(4		)	(4		)	(3		)	(4		)	(5		)	(2		)	(3		)	(11		)	(10		)
Net realized investment gains (losses) before tax	10			4			(2		)	39			10			167			(22		)	12			155
Related taxes	5			—			1			13			1			58			(3		)	6			56
Net realized investment gains (losses)	$	5		$	4		$	(3	)	$	26		$	9		$	109		$	(19	)	$	6		$	99
	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,
	2012			2012			2012			2012			2013			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		$	2,142
Equity securities & other	181			176			209			197			274			250			252
Unrealized investment gains before tax	4,347			4,568			5,079			4,761			4,395			2,599			2,394
Related taxes	1,509			1,588			1,764			1,658			1,531			907			835
Balance, end of period	$	2,838		$	2,980		$	3,315		$	3,103		$	2,864		$	1,692		$	1,559

(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	$	—	$	99	$	343
Gross investment Treasury future losses	$	41	$	38	$	35	$	25	$	75	$	153	$	—	$	114	$	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)

	September 30,			December 31,
	2013			2012
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	4,761		$	5,256
Allowance for uncollectible reinsurance	(245		)	(258		)
Net reinsurance recoverables (i)	4,516			4,998
Mandatory pools and associations (ii)	1,878			2,549
Structured settlements (iii)	3,150			3,165
Total reinsurance recoverables	$	9,544		$	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	September 30,		December 31,
Reinsurer	Predominant Reinsurer	2013		2012
Munich Re Group	A+ second highest of 16 ratings	$	511	$	550
Swiss Re Group	A+ second highest of 16 ratings	473		517
Alleghany Group	A third highest of 16 ratings	260		302
Berkshire Hathaway Group	A++ highest of 16 ratings	243		258
NKSJ Holdings Inc Group	A+ second highest of 16 ratings	241		220

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 September 30, 2013, after deducting mandatory pools and associations and structured settlement balances, $3.6 billion, or 79%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% were rated A- or better.  The remaining 21% of net recoverables from reinsurers were comprised of the following:  7% related to the Company’s participation in voluntary pools, 11% 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 September 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	September 30,		December 31,
Group	Predominant Insurer	2013		2012
Fidelity and Guaranty Life	B++ fifth highest of 16 ratings	$	982	$	981
Metlife	A+ second highest of 16 ratings	460		474
Genworth Financial Group	A third highest of 16 ratings	433		437
Symetra Financial Corporation	A third highest of 16 ratings	250		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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			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		$	31,006		$	31,131		$	31,120
Incurred	1,663			2,057			1,860			2,147			1,668			1,970			1,920			5,580			5,558
Paid	(1,792		)	(1,932		)	(1,937		)	(2,080		)	(1,860		)	(1,892		)	(1,901		)	(5,661		)	(5,653		)
Foreign exchange and other	4			(5		)	2			2			1			(1		)	4			1			4
End of period	$	31,006		$	31,126		$	31,051		$	31,120		$	30,929		$	31,006		$	31,029		$	31,051		$	31,029
Financial, Professional & International Insurance
Beginning of period	$	6,019		$	6,045		$	5,992		$	5,894		$	5,849		$	5,757		$	5,673		$	6,019		$	5,849
Incurred	341			299			307			359			300			330			329			947			959
Paid	(361		)	(307		)	(453		)	(411		)	(316		)	(399		)	(361		)	(1,121		)	(1,076		)
Foreign exchange and other	46			(45		)	48			7			(76		)	(15		)	73			49			(18		)
End of period	$	6,045		$	5,992		$	5,894		$	5,849		$	5,757		$	5,673		$	5,714		$	5,894		$	5,714
Personal Insurance
Beginning of period	$	3,749		$	3,740		$	3,807		$	3,583		$	3,687		$	3,529		$	3,466		$	3,749		$	3,687
Incurred	1,314			1,435			1,143			1,613			1,102			1,190			1,001			3,892			3,293
Paid	(1,323		)	(1,368		)	(1,367		)	(1,509		)	(1,260		)	(1,253		)	(1,173		)	(4,058		)	(3,686		)
End of period	$	3,740		$	3,807		$	3,583		$	3,687		$	3,529		$	3,466		$	3,294		$	3,583		$	3,294
Total
Beginning of period	$	40,899		$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,899		$	40,656
Incurred	3,318			3,791			3,310			4,119			3,070			3,490			3,250			10,419			9,810
Paid	(3,476		)	(3,607		)	(3,757		)	(4,000		)	(3,436		)	(3,544		)	(3,435		)	(10,840		)	(10,415		)
Foreign exchange and other	50			(50		)	50			9			(75		)	(16		)	77			50			(14		)
End of period	$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,037		$	40,528		$	40,037
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	167		$	—		$	—		$	—		$	190		$	167		$	190
Environmental	—			90			—			—			—			65			—			90			65
All other	(248		)	(148		)	(208		)	(120		)	(113		)	(120		)	(226		)	(604		)	(459		)
Total Business Insurance (1)	(248		)	(58		)	(41		)	(120		)	(113		)	(55		)	(36		)	(347		)	(204		)
Financial, Professional & International Insurance
Asbestos	—			—			8			—			—			—			—			8			—
All other	(46		)	(96		)	(95		)	(69		)	(58		)	(72		)	(74		)	(237		)	(204		)
Total Financial, Professional & International Insurance	(46		)	(96		)	(87		)	(69		)	(58		)	(72		)	(74		)	(229		)	(204		)
Personal Insurance	(10		)	(67		)	(65		)	(33		)	(60		)	(65		)	(48		)	(142		)	(173		)
Total	$	(304	)	$	(221	)	$	(193	)	$	(222	)	$	(231	)	$	(192	)	$	(158	)	$	(718	)	$	(581	)

(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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Asbestos reserves
Beginning reserves:
Gross	$	2,780		$	2,724		$	2,660		$	2,771		$	2,689		$	2,626		$	2,566		$	2,780		$	2,689
Ceded	(341		)	(340		)	(335		)	(324		)	(311		)	(292		)	(288		)	(341		)	(311		)
Net	2,439			2,384			2,325			2,447			2,378			2,334			2,278			2,439			2,378
Incurred losses and loss expenses:
Gross	—			—			171			—			—			—			190			171			190
Ceded	—			—			4			—			—			—			—			4			—
Losses paid:
Gross	56			64			60			82			63			60			70			180			193
Ceded	(1		)	(5		)	(7		)	(13		)	(19		)	(4		)	(25		)	(13		)	(48		)
Ending reserves:
Gross	2,724			2,660			2,771			2,689			2,626			2,566			2,686			2,771			2,686
Ceded	(340		)	(335		)	(324		)	(311		)	(292		)	(288		)	(263		)	(324		)	(263		)
Net	$	2,384		$	2,325		$	2,447		$	2,378		$	2,334		$	2,278		$	2,423		$	2,447		$	2,423
Environmental reserves
Beginning reserves:
Gross	$	346		$	321		$	396		$	380		$	352		$	340		$	399		$	346		$	352
Ceded	(5		)	(4		)	(9		)	(7		)	(5		)	(4		)	(11		)	(5		)	(5		)
Net	341			317			387			373			347			336			388			341			347
Incurred losses and loss expenses:
Gross	—			96			3			—			—			72			—			99			72
Ceded	—			(6		)	(3		)	—			—			(7		)	—			(9		)	(7		)
Losses paid:
Gross	25			21			19			28			12			13			28			65			53
Ceded	(1		)	(1		)	(5		)	(2		)	(1		)	—			1			(7		)	—
Ending reserves:
Gross	321			396			380			352			340			399			371			380			371
Ceded	(4		)	(9		)	(7		)	(5		)	(4		)	(11		)	(12		)	(7		)	(12		)
Net	$	317		$	387		$	373		$	347		$	336		$	388		$	359		$	373		$	359

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

30

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

	September 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
4.60% Senior notes due August 1, 2043 (1)	500			—
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	6,261			5,761
Unamortized fair value adjustment	51			52
Unamortized debt issuance costs	(66		)	(63		)
	6,246			5,750
Total debt	6,346			6,350
Common equity (excluding net unrealized investment gains, net of tax)	23,252			22,302
Total capital (excluding net unrealized investment gains, net of tax)	$	29,598		$	28,652
Total debt to capital (excluding net unrealized investment gains, net of tax)	21.4		%	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)

	September 30,			December 31,
	2013 (1)			2012
Statutory basis surplus	$	21,509		$	20,048
GAAP adjustments
Goodwill and intangible assets	3,542			3,573
Investments	2,928			5,351
Noninsurance companies	(4,645		)	(4,302		)
Deferred acquisition costs	1,802			1,792
Deferred federal income tax	(1,503		)	(2,220		)
Current federal income tax	21			(9		)
Reinsurance recoverables	201			201
Furniture, equipment & software	612			664
Employee benefits	(8		)	(13		)
Agents balances	167			151
Other	185			169
Total GAAP adjustments	3,302			5,357
GAAP shareholders’ equity	$	24,811		$	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			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Cash flows from operating activities
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	2,169		$	2,685
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(10		)	(4		)	2			(39		)	(10		)	(167		)	22			(12		)	(155		)
Depreciation and amortization	216			196			206			209			219			216			207			618			642
Deferred federal income tax expense	119			6			96			2			131			20			(19		)	221			132
Amortization of deferred acquisition costs	971			976			986			977			948			950			953			2,933			2,851
Equity in income from other investments	(114		)	(114		)	(43		)	(71		)	(74		)	(101		)	(72		)	(271		)	(247		)
Premiums receivable	(151		)	(317		)	161			169			(155		)	(248		)	161			(307		)	(242		)
Reinsurance recoverables	495			257			174			(473		)	390			357			355			926			1,102
Deferred acquisition costs	(984		)	(1,016		)	(1,005		)	(909		)	(954		)	(958		)	(950		)	(3,005		)	(2,862		)
Claims and claim adjustment expense reserves	(504		)	(95		)	(597		)	656			(751		)	(377		)	(556		)	(1,196		)	(1,684		)
Unearned premium reserves	117			229			160			(383		)	187			158			138			506			483
Other	(147		)	(166		)	497			22			(297		)	(53		)	534			184			184
Net cash provided by operating activities	814			451			1,501			464			530			722			1,637			2,766			2,889
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,615			2,552			1,688			2,514			2,123			1,778			2,016			5,855			5,917
Proceeds from sales of investments:
Fixed maturities	223			319			182			363			234			338			588			724			1,160
Equity securities	15			7			9			6			36			14			7			31			57
Real estate investments	—			3			—			50			—			—			—			3			—
Other investments	203			183			130			319			174			207			164			516			545
Purchases of investments:
Fixed maturities	(2,604		)	(2,596		)	(2,477		)	(2,770		)	(2,339		)	(2,149		)	(2,004		)	(7,677		)	(6,492		)
Equity securities	(10		)	(23		)	(6		)	(9		)	(13		)	(27		)	(10		)	(39		)	(50		)
Real estate investments	(5		)	(53		)	(4		)	(33		)	(6		)	(53		)	(6		)	(62		)	(65		)
Other investments	(114		)	(107		)	(71		)	(242		)	(95		)	(114		)	(103		)	(292		)	(312		)
Net sales (purchases) of short-term securities	226			141			(408		)	158			109			(28		)	(1,974		)	(41		)	(1,893		)
Securities transactions in course of settlement	248			(171		)	(24		)	(76		)	180			(120		)	220			53			280
Other	(92		)	(41		)	(96		)	(94		)	(100		)	(57		)	(97		)	(229		)	(254		)
Net cash provided by (used in) investing activities	(295		)	214			(1,077		)	186			303			(211		)	(1,199		)	(1,158		)	(1,107		)

33

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2012			2012			2012			2012			2013			2013			2013			2012			2013
Cash flows from financing activities
Payment of debt	—			(258		)	—			—			(500		)	—			—			(258		)	(500		)
Issuance of debt	—			—			—			—			—			—			494			—			494
Dividends paid to shareholders	(161		)	(180		)	(178		)	(175		)	(175		)	(191		)	(183		)	(519		)	(549		)
Issuance of common stock - employee share options	77			93			77			48			98			41			19			247			158
Treasury stock acquired - share repurchase authorization	(354		)	(353		)	(349		)	(418		)	(300		)	(300		)	(800		)	(1,056		)	(1,400		)
Treasury stock acquired - net employee share-based compensation	(52		)	—			—			(1		)	(58		)	(1		)	(1		)	(52		)	(60		)
Excess tax benefits from share-based payment arrangements	12			7			13			6			21			8			14			32			43
Net cash used in financing activities	(478		)	(691		)	(437		)	(540		)	(914		)	(443		)	(457		)	(1,606		)	(1,814		)
Effect of exchange rate changes on cash	3			(2		)	3			—			(6		)	(3		)	6			4			(3		)
Net increase (decrease) in cash	44			(28		)	(10		)	110			(87		)	65			(13		)	6			(35		)
Cash at beginning of period	214			258			230			220			330			243			308			214			330
Cash at end of period	$	258		$	230		$	220		$	330		$	243		$	308		$	295		$	220		$	295
Income taxes paid (received)	$	20		$	276		$	14		$	(122	)	$	27		$	468		$	229		$	310		$	724
Interest paid	$	35		$	156		$	35		$	149		$	35		$	149		$	22		$	226		$	206

34

The Travelers Companies, Inc.
Financial Supplement - Third 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