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):  January 21, 2014

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 January 21, 2014, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended December 31, 2013, and the availability of the Company’s fourth 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 January 21, 2014, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Fourth 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:       January 21, 2014	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 January 21, 2014, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Fourth 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 Quarterly Records for Net and Operating Income per Diluted Share of $2.70 and $2.68, Respectively, as Compared to $0.78 and $0.72 in the Prior Year Quarter

Fourth Quarter Return on Equity and Operating Return on Equity of 15.9% and 16.8%, Respectively

Record Full Year Net Income per Diluted Share of $9.74 Generating Return on Equity of 14.6%

·Fourth quarter net and operating income of $988 million and $981 million, respectively.

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

·Net written premiums of $5.6 billion, up 5% from prior year quarter including the impact of Dominion acquisition.

·Total capital returned to shareholders of $1.2 billion in the quarter, including $1.0 billion in share repurchases. Full year total capital returned to shareholders of $3.1 billion.

·Increases in book value per share of 4% to $70.15 and adjusted book value per share of 12% to $66.41 from year-end 2012.

New York, January 21, 2014 — The Travelers Companies, Inc. today reported net income of $988 million, or $2.70 per diluted share, for the quarter ended December 31, 2013, compared to $304 million, or $0.78 per diluted share, in the prior year quarter. Operating income in the current quarter was $981 million, or $2.68 per diluted share, compared to $278 million, or $0.72 per diluted share, in the prior year quarter. The increase in net and operating income compared to the prior year quarter primarily resulted from lower catastrophe losses.

Consolidated Highlights

($ in millions, except for per share amounts, and after-tax,	Three Months Ended December 31,								Twelve Months Ended December 31,
except for premiums & revenues)	2013			2012			Change		2013			2012			Change
Net written premiums	$	5,633		$	5,385		5	%	$	22,767		$	22,447		1	%
Total revenues	$	6,737		$	6,477		4		$	26,191		$	25,740		2
Operating income	$	981		$	278		253		$	3,567		$	2,441		46
per diluted share	$	2.68		$	0.72		272		$	9.46		$	6.21		52
Net income	$	988		$	304		225		$	3,673		$	2,473		49
per diluted share	$	2.70		$	0.78		246		$	9.74		$	6.30		55
Diluted weighted average shares outstanding	363.4			385.3			(6	)	374.3			389.8			(4	)
GAAP combined ratio	87.7		%	105.4		%	(17.7	)pts	89.8		%	97.1		%	(7.3	)pts
Underlying GAAP combined ratio	91.2		%	90.7		%	0.5	pts	90.9		%	93.0		%	(2.1	)pts
Operating return on equity	16.8		%	5.0		%	11.8	pts	15.5		%	11.0		%	4.5	pts
Return on equity	15.9		%	4.7		%	11.2	pts	14.6		%	9.8		%	4.8	pts

	As of December 31,
	2013		2012		Change
Book value per share	$	70.15	$	67.31	4	%
Adjusted book value per share	$	66.41	$	59.09	12

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

“Fourth quarter operating income of almost a billion dollars provided a very strong finish to an excellent 2013,” commented Jay Fishman, Chairman and Chief Executive Officer.  “For the full year, we achieved record levels of net and operating income per diluted share of $9.74 and $9.46, respectively.  Full year operating return on equity was 15.5%, driven by

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strong underwriting profitability, solid investment income and our capital management strategy, which permitted us to return more than $3 billion of capital to our shareholders in 2013.

“We continue to be very pleased with the execution of our business strategies.  In Business Insurance, our active pricing strategy improved profitability, as well as delivered meaningful written rate gains and higher retention levels.  Within the Financial, Professional & International segment, our Management Liability business continued to improve profitability and achieve written rate gains in excess of loss trend.  In International, our acquisition of Dominion closed on November 1, and we are on track with the integration.  We are also pleased with the profitability of our Personal Insurance business, particularly the improvement in Automobile. Finally, we launched our new auto product, Quantum 2.0, in October and are encouraged in these early days by the market receptivity.

“Our focus on delivering top-tier operating return on equity by generating appropriate returns on our products and right sizing capital has created significant shareholder value.  From the beginning of 2005 through the end of 2013, we have delivered an average annual operating return on equity of 13.1%, returned over $27 billion in capital to our shareholders through dividends and share repurchases, and grown book value per share at a compound annual growth rate of 9%. Total return to shareholders over that period, including dividends reinvested, exceeded 200%. We are encouraged by the strength of our 2013 results, and we remain committed to taking the steps necessary to continue to improve returns consistent with our long-held goal of producing mid-teens operating return on equity over time,” concluded Fishman.

Consolidated Results

	Three Months Ended December 31,									Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain (loss):	$	689		$	(338	)	$	1,027		$	2,167		$	507		$	1,660
Underwriting gain (loss) includes:
Net favorable prior year reserve development	259			222			37			840			940			(100		)
Catastrophes, net of reinsurance	(53		)	(1,054		)	1,001			(591		)	(1,862		)	1,271
Net investment income	702			689			13			2,716			2,889			(173		)
Other, including interest expense	(31		)	(79		)	48			(104		)	(281		)	177
Operating income before income taxes	1,360			272			1,088			4,779			3,115			1,664
Income tax expense (benefit)	379			(6		)	385			1,212			674			538
Operating income	981			278			703			3,567			2,441			1,126
Net realized investment gains after income taxes	7			26			(19		)	106			32			74
Net Income	$	988		$	304		$	684		$	3,673		$	2,473		$	1,200
GAAP combined ratio	87.7		%	105.4		%	(17.7		)pts	89.8		%	97.1		%	(7.3		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(4.4		)pts	(4.0		)pts	(0.4		)pts	(3.7		)pts	(4.2		)pts	0.5		pts
Catastrophes, net of reinsurance	0.9		pts	18.7		pts	(17.8		)pts	2.6		pts	8.3		pts	(5.7		)pts
Underlying GAAP combined ratio	91.2		%	90.7		%	0.5		pts	90.9		%	93.0		%	(2.1		)pts
Net written premiums
Business Insurance	$	2,873		$	2,784		3		%	$	12,233		$	11,872		3		%
Financial, Professional & International Insurance	1,043			808			29			3,309			2,981			11
Personal Insurance	1,717			1,793			(4		)	7,225			7,594			(5		)
Total	$	5,633		$	5,385		5		%	$	22,767		$	22,447		1		%

Fourth Quarter 2013 Results

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

Net and operating income of $988 million after-tax and $981 million after-tax, respectively, increased $684 million and $703 million, primarily due to lower catastrophe losses.

Underwriting results

·The GAAP combined ratio improved 17.7 points to 87.7% due to lower catastrophe losses (17.8 points) and higher net favorable prior year reserve development (0.4 points), partially offset by lower underlying underwriting margins (0.5 points).

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·Net favorable prior year reserve development occurred in all segments. Catastrophe losses primarily resulted from wind and hail storms in the Midwestern United States and Storm Xaver in the United Kingdom.

·The underlying GAAP combined ratio increased 0.5 points to 91.2% as Business Insurance improved while Personal Insurance and Financial, Professional & International Insurance were negatively impacted by higher levels of non-catastrophe weather-related losses and non-weather related property losses.

Net investment income of $562 million after-tax ($702 million pre-tax) increased modestly primarily due to higher private equity and real estate partnership returns in the non-fixed income portfolio, partially offset by lower reinvestment rates in the fixed income portfolio.

On November 1, 2013, the company acquired The Dominion of Canada General Insurance Company (Dominion) for an aggregate purchase price of approximately $1.034 billion.

Net written premiums of $5.633 billion increased 5% primarily due to the inclusion of Dominion within Financial, Professional & International Insurance, as well as higher net written premiums in Business Insurance. These increases were partially offset by lower net written premiums in Personal Insurance.

Full Year 2013 Results

(All comparisons vs. full year 2012, unless noted otherwise)

Net income of $3.673 billion after-tax increased $1.200 billion or 49%, primarily due to higher operating income. Operating income of $3.567 billion increased $1.126 billion, primarily reflecting improved underwriting results driven by lower catastrophe losses, a higher underlying underwriting gain, 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 7.3 points to 89.8% due to lower catastrophe losses (5.7 points) and higher underlying underwriting margins (2.1 points), partially offset by lower net favorable prior year reserve development (0.5 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.

·The underlying GAAP combined ratio improved 2.1 points to 90.9%, primarily resulting from earned rate increases exceeding loss cost trends in each segment.

Net investment income of $2.186 billion after-tax ($2.716 billion pre-tax) 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 realized investment gains of $106 million after-tax ($166 million pre-tax) increased primarily, due to 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 $22.767 billion increased 1% reflecting the same factors discussed above for the fourth quarter.

Shareholders’ Equity

Shareholders’ equity of $24.796 billion was generally consistent with the end of the third quarter 2013 but decreased 2% from the end of 2012. Included in shareholders’ equity were after-tax net unrealized investment gains of $1.322 billion, compared to $1.559 billion at the end of the third quarter 2013 and $3.103 billion at the end of the prior year. These lower net unrealized investment gains resulted from increased interest rates. The company repurchased 11.4 million shares during the fourth quarter and 28.4 million shares during the full year under its existing share repurchase authorization at a total cost of $1.0 billion and $2.4 billion, respectively, leaving $4.759 billion of capacity under that authorization for future share

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repurchases. Statutory surplus was $21.123 billion, and the ratio of debt-to-capital (excluding after-tax net unrealized investment gains) was 21.3%, well within its target range of 15% to 25%.

The Board of Directors declared a quarterly dividend of $0.50 per share. This dividend is payable March 31, 2014, to shareholders of record as of the close of business on March 10, 2014.

Business Insurance Segment Financial Results

	Three Months Ended December 31,									Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain (loss):	$	333		$	(119	)	$	452		$	936		$	252		$	684
Underwriting gain (loss) includes:
Net favorable prior year reserve development	121			120			1			325			467			(142		)
Catastrophes, net of reinsurance	(41		)	(439		)	398			(285		)	(794		)	509
Net investment income	507			498			9			1,975			2,090			(115		)
Other	23			9			14			158			40			118
Operating income before income taxes	863			388			475			3,069			2,382			687
Income tax expense	229			62			167			740			539			201
Operating income	$	634		$	326		$	308		$	2,329		$	1,843		$	486
GAAP combined ratio	88.9		%	103.5		%	(14.6		)pts	91.9		%	97.4		%	(5.5		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(3.9		)pts	(4.0		)pts	0.1		pts	(2.7		)pts	(4.0		)pts	1.3		pts
Catastrophes, net of reinsurance	1.3		pts	14.7		pts	(13.4		)pts	2.4		pts	6.8		pts	(4.4		)pts
Underlying GAAP combined ratio	91.5		%	92.8		%	(1.3		)pts	92.2		%	94.6		%	(2.4		)pts
Net written premiums by market
Select Accounts	$	637		$	657		(3		)%	$	2,724		$	2,775		(2		)%
Commercial Accounts	750			718			4			3,197			3,101			3
National Accounts	255			244			5			1,010			907			11
Industry-Focused Underwriting	620			599			4			2,645			2,554			4
Target Risk Underwriting	410			369			11			1,799			1,666			8
Specialized Distribution	202			198			2			858			870			(1		)
Other	(1		)	(1		)	—			—			(1		)	NM
Total	$	2,873		$	2,784		3		%	$	12,233		$	11,872		3		%

NM = Not Meaningful

Fourth Quarter 2013 Results

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

Operating income of $634 million after-tax increased $308 million or 94%, primarily reflecting improved underwriting results driven by lower catastrophe losses and a higher underlying underwriting gain.

Underwriting results

·The GAAP combined ratio improved 14.6 points to 88.9% due to lower catastrophe losses (13.4 points) and higher underlying underwriting margins (1.3 points).

·Net favorable prior year reserve development primarily resulted from better than expected loss experience related to the general liability product line, which was concentrated in excess coverages for accident years 2006 through 2012, reflecting more favorable legal and judicial environments than what the company previously expected. Catastrophe losses primarily resulted from wind and hail storms in the Midwestern United States.

·The underlying GAAP combined ratio improved 1.3 points to 91.5%, primarily resulting from earned rate increases exceeding loss cost trends and a decrease in the expense ratio.

Business Insurance net written premiums of $2.873 billion increased 3% primarily driven by continued increases in renewal rate change. Retention rates remained strong and higher than recent quarters. New business volumes decreased modestly from the prior year quarter. Net written premiums also benefited from positive exposure change at renewal and positive audit premiums, both of which were slightly higher than the prior year quarter.

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Full Year 2013 Results

(All comparisons vs. full year 2012, unless noted otherwise)

Operating income of $2.329 billion after-tax increased $486 million or 26%, primarily reflecting improved underwriting results driven by lower catastrophe losses, a higher underlying underwriting gain, 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 5.5 points to 91.9% due to lower catastrophe losses (4.4 points) and higher underlying underwriting margins (2.4 points), partially offset by lower net favorable prior year reserve development (1.3 points).

·Net favorable prior year reserve development primarily resulted from better than expected loss experience related to the general liability product line for accident years 2012 and prior, the property product line for accident years 2010 through 2012 and the workers’ compensation product line for accident years 2008 and prior. 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. Catastrophe losses primarily resulted from tornado, wind and hail storms in several regions of the United States.

·The underlying GAAP combined ratio improved 2.4 points to 92.2%, primarily resulting from earned rate increases exceeding loss cost trends and a decrease in the expense ratio.

Business Insurance net written premiums of $12.233 billion, a record full year level, increased 3%, primarily driven by continued increases in renewal rate change. Retention rates remained strong, while new business volumes increased modestly from the prior year. Net written premiums also benefited from positive exposure change at renewal and positive audit premiums, although at lower levels than the prior year.

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Financial, Professional & International Insurance Segment Financial Results

	Three Months Ended December 31,									Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain	$	140		$	88		$	52		$	499		$	476		$	23
Underwriting gain includes:
Net favorable prior year reserve development	102			69			33			306			298			8
Catastrophes, net of reinsurance	(10		)	(45		)	35			(56		)	(50		)	(6		)
Net investment income	101			95			6			372			395			(23		)
Other	7			5			2			22			26			(4		)
Operating income before income taxes	248			188			60			893			897			(4		)
Income tax expense	77			57			20			245			255			(10		)
Operating income	$	171		$	131		$	40		$	648		$	642		$	6
GAAP combined ratio	85.0		%	88.3		%	(3.3		)pts	84.3		%	84.1		%	0.2		pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(10.7		)pts	(9.1		)pts	(1.6		)pts	(9.5		)pts	(9.8		)pts	0.3		pts
Catastrophes, net of reinsurance	1.0		pts	5.9		pts	(4.9		)pts	1.8		pts	1.7		pts	0.1		pts
Underlying GAAP combined ratio	94.7		%	91.5		%	3.2		pts	92.0		%	92.2		%	(0.2		)pts
Net written premiums by market
Bond & Financial Products	$	551		$	514		7		%	$	2,030		$	1,924		6		%
International	492			294			67			1,279			1,057			21
Total	$	1,043		$	808		29		%	$	3,309		$	2,981		11		%

Fourth Quarter 2013 Results

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

Operating income of $171 million after-tax increased $40 million or 31%, primarily reflecting improved underwriting results driven by lower catastrophe losses and higher net favorable prior year reserve development.

Underwriting results

·The GAAP combined ratio improved 3.3 points to 85.0% due to lower catastrophe losses (4.9 points) and higher net favorable prior year reserve development (1.6 points), partially offset by lower underlying underwriting margins (3.2 points), primarily reflecting higher levels of large losses and non-catastrophe weather-related losses within International.

·Net favorable prior year reserve development primarily resulted from better than expected loss experience in the surety line of business within Bond & Financial Products for accident years 2010 and prior, reflecting favorable resolutions on certain claims. Catastrophe losses primarily resulted from Storm Xaver in the United Kingdom.

·The underlying GAAP combined ratio increased 3.2 points to 94.7%, due to a higher underlying loss ratio reflecting higher levels of large losses and non-catastrophe weather-related losses within International as well as the inclusion of Dominion, partially offset by earned rate increases exceeding loss cost trends. The increase in the underlying loss ratio was partially offset by a lower expense ratio due to the inclusion of Dominion.

Financial, Professional & International Insurance net written premiums of $1.043 billion increased 29% as result of higher net written premiums in both Bond & Financial Products and International. Bond & Financial Products net written premiums of $551 million increased 7% primarily due to a change in a reinsurance program as well as continued strong retention rates and renewal rate increases in management liability. International net written premiums of $492 million increased 67% primarily due to the inclusion of Dominion.

Full Year 2013 Results

(All comparisons vs. full year 2012, unless noted otherwise)

Operating income of $648 million after-tax increased $6 million or 1%, primarily reflecting improved underwriting results driven by a higher underlying underwriting gain. This improvement was mostly offset by lower net investment income.

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Underwriting results

·The GAAP combined ratio of 84.3% was essentially unchanged from the prior year.

·Net favorable prior year reserve development was primarily driven by the same factors discussed above for the fourth quarter, as well as better than expected loss experience in the surety line of business in Canada and the marine line of business in the company’s operations at Lloyd’s within International. Catastrophe losses primarily resulted from the same factor discussed above for the fourth quarter as well as from flooding in Alberta, Canada.

·The underlying GAAP combined ratio improved 0.2 points to 92.0%, primarily resulting from earned rate increases exceeding loss cost trends, partially offset by a higher level of large losses and higher non-catastrophe weather-related losses.

Financial, Professional & International Insurance net written premiums of $3.309 billion increased 11%, primarily driven by the same factors discussed above for the fourth quarter.

Personal Insurance Segment Financial Results

	Three Months Ended December 31,									Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2013			2012			Change			2013			2012			Change
Underwriting gain (loss):	$	216		$	(307	)	$	523		$	732		$	(221	)	$	953
Underwriting gain (loss) includes:
Net favorable prior year reserve development	36			33			3			209			175			34
Catastrophes, net of reinsurance	(2		)	(570		)	568			(250		)	(1,018		)	768
Net investment income	94			96			(2		)	369			404			(35		)
Other	36			14			22			103			66			37
Operating income before income taxes	346			(197		)	543			1,204			249			955
Income tax expense (benefit)	109			(83		)	192			366			32			334
Operating income (loss)	$	237		$	(114	)	$	351		$	838		$	217		$	621
GAAP combined ratio	86.9		%	115.2		%	(28.3		)pts	88.9		%	101.9		%	(13.0		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(2.0		)pts	(1.8		)pts	(0.2		)pts	(2.8		)pts	(2.3		)pts	(0.5		)pts
Catastrophes, net of reinsurance	0.1		pts	30.1		pts	(30.0		)pts	3.4		pts	13.4		pts	(10.0		)pts
Underlying GAAP combined ratio	88.8		%	86.9		%	1.9		pts	88.3		%	90.8		%	(2.5		)pts
Net written premiums
Agency Automobile(1)	$	765		$	822		(7		)%	$	3,258		$	3,527		(8		)%
Agency Homeowners & Other(1)	913			934			(2		)	3,805			3,909			(3		)
Direct to Consumer	39			37			5			162			158			3
Total	$	1,717		$	1,793		(4		)%	$	7,225		$	7,594		(5		)%

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

Fourth Quarter 2013 Results

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

Operating income was $237 million after-tax, compared to an operating loss of $114 million after-tax in the prior year quarter, primarily reflecting lower catastrophe losses.

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Underwriting results

·The GAAP combined ratio improved 28.3 points to 86.9% due to lower catastrophe losses (30.0 points) and slightly higher net favorable prior year reserve development (0.2 points), partially offset by lower underlying underwriting margins (1.9 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 and liability losses for accident years 2009 through 2012.

·The underlying GAAP combined ratio increased 1.9 points to 88.8% primarily resulting from higher levels of non-catastrophe weather-related losses and non-weather related property losses as compared to a particularly low level of these losses in the prior year quarter, partially offset by earned rate increases exceeding loss cost trends in both Automobile and Homeowners & Other.

Personal Insurance net written premiums of $1.717 billion decreased 4%. Renewal premium change remained strong, and retention rates increased from recent quarters.  New business was higher than the prior year quarter due in part to the company’s new auto product, Quantum 2.0, which was introduced in 18 states by year-end.

Full Year 2013 Results

(All comparisons vs. full year 2012, unless noted otherwise)

Operating income of $838 million after-tax increased $621 million, primarily reflecting improved underwriting results driven by lower catastrophe losses, a higher underlying underwriting gain and higher net favorable prior year reserve development, partially offset by lower net investment income.

Underwriting results

·The GAAP combined ratio improved 13.0 points to 88.9% due to lower catastrophe losses (10.0 points), higher underlying underwriting margins (2.5 points) and higher net favorable prior year reserve development (0.5 points).

·Net favorable prior year reserve development was primarily driven by the same factors discussed above for the fourth quarter, as well as better than expected loss experience in Homeowners & Other for accident years 2011 and 2012 for non-catastrophe weather-related losses and non-weather related losses.

·The underlying GAAP combined ratio improved 2.5 points to 88.3%, 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 $7.225 billion decreased 5%. Renewal premium change and retention rates remained strong and generally consistent with the prior year, while new business was lower than the prior year.

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, January 21, 2014. Investors can access the call via webcast at http://investor.travelers.com or by dialing 1-800-748-8543 within the U.S. and 1-212-231-2915 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 21698069 for both the U.S. and international calls).

8

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. The company’s diverse business lines offer its customers a wide range of coverage sold primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and operations in the 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.

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 Canada, the United Kingdom 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.

* * * * *

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, potential returns, 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;

9

·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 impact of its merger and acquisition transactions, including the acquisition of 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.

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;

10

·acquisitions and integration of acquired businesses, including 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;

·loss of or significant restriction on the use of credit scoring or other underwriting criteria in the pricing and underwriting of 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; and

·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.

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				Twelve Months Ended
	December 31,				December 31,
($ in millions, pre-tax)	2013		2012		2013		2012
Operating income	$	1,360	$	272	$	4,779	$	3,115
Net realized investment gains	11		39		166		51
Net income	$	1,371	$	311	$	4,945	$	3,166

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
($ in millions, after-tax)	2013		2012		2013		2012
Operating income	$	981	$	278	$	3,567	$	2,441
Net realized investment gains	7		26		106		32
Net income	$	988	$	304	$	3,673	$	2,473

	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				Twelve Months Ended
	December 31,				December 31,
	2013		2012		2013		2012
Basic earnings per share
Operating income	$	2.71	$	0.72	$	9.56	$	6.27
Net realized investment gains	0.02		0.07		0.28		0.08
Net income	$	2.73	$	0.79	$	9.84	$	6.35
Diluted earnings per share
Operating income	$	2.68	$	0.72	$	9.46	$	6.21
Net realized investment gains	0.02		0.06		0.28		0.09
Net income	$	2.70	$	0.78	$	9.74	$	6.30

12

Reconciliation of Operating Income (Loss) by Segment to Total Operating Income

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
($ in millions, after-tax)	2013			2012			2013			2012
Business Insurance	$	634		$	326		$	2,329		$	1,843
Financial, Professional & International Insurance	171			131			648			642
Personal Insurance	237			(114		)	838			217
Total segment operating income	1,042			343			3,815			2,702
Interest Expense and Other	(61		)	(65		)	(248		)	(261		)
Total operating income	$	981		$	278		$	3,567		$	2,441

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 December 31,
($ in millions)	2013		2012		2011		2010		2009		2008			2007		2006		2005			2004
Adjusted shareholders’ equity	$	23,368	$	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	1,322		3,103		2,871		1,859		1,856		(146		)	620		453		327			866
Net realized investment gains (losses), net of tax	106		32		36		173		22		(271		)	101		8		35			(28		)
Preferred stock	—		—		—		68		79		89			112		129		153			188
Discontinued operations	—		—		—		—		—		—			—		—		(439		)	88
Shareholders’ equity	$	24,796	$	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.

Calculation of Operating Return on Equity and Return on Equity

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
($ in millions, after-tax)	2013			2012			2013			2012
Annualized operating income	$	3,924		$	1,111		$	3,567		$	2,441
Adjusted average shareholders’ equity	23,360			22,433			23,004			22,158
Operating return on equity	16.8		%	5.0		%	15.5		%	11.0		%
Annualized net income	$	3,950		$	1,215		$	3,673		$	2,473
Average shareholders’ equity	24,804			25,655			25,099			25,192
Return on equity	15.9		%	4.7		%	14.6		%	9.8		%

13

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 December 31, 2013

	Twelve Months Ended December 31,
($ in millions)	2013			2012			2011			2010			2009			2008			2007			2006			2005
Operating income, less preferred dividends	$	3,567		$	2,441		$	1,389		$	3,040		$	3,597		$	3,191		$	4,496		$	4,195		$	2,020
Adjusted average shareholders’ equity	23,004			22,158			22,806			24,285			25,777			25,668			25,350			23,381			21,118
Operating return on equity	15.5		%	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 Dec. 31, 2013	13.1		%

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 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.

14

Reconciliation of Pre-tax Underwriting Gain (Loss) (Excluding the Impact of Catastrophes and Net Favorable Prior Year Loss Reserve Development) to Net Income

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
($ 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	$	483		$	494		$	1,918		$	1,429
Pre-tax impact of catastrophes	(53		)	(1,054		)	(591		)	(1,862		)
Pre-tax impact of net favorable prior year loss reserve development	259			222			840			940
Pre-tax underwriting gain (loss)	689			(338		)	2,167			507
Income tax expense (benefit) on underwriting results	254			(106		)	725			211
Underwriting gain (loss)	435			(232		)	1,442			296
Net investment income	562			556			2,186			2,316
Other, including interest expense	(16		)	(46		)	(61		)	(171		)
Operating income	981			278			3,567			2,441
Net realized investment gains	7			26			106			32
Net income	$	988		$	304		$	3,673		$	2,473

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. The ratio of losses and loss expenses incurred to premiums earned and other underwriting expenses to net premiums written are defined and used in connection with statutory accounting.  The loss and LAE and the underwriting expense ratio are the GAAP equivalents to the statutory ratios, and they are calculated on the same basis as the statutory ratios.  In the opinion of the Company’s management, the loss and LAE ratio, the underwriting expense ratio and the combined ratio are important indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business, and overall profitability, respectively.

In the opinion of the Company’s management, the loss and LAE ratio, the underwriting expense ratio and the combined ratio are important indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business, and overall profitability, respectively.

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						Twelve Months Ended
	December 31,						December 31,
($ in millions, pre-tax)	2013			2012			2013			2012
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$	3,327		$	4,167		$	13,307		$	14,676
Less:
Policyholder dividends	5			12			35			46
Allocated fee income	46			38			159			124
Loss ratio numerator	$	3,276		$	4,117		$	13,113		$	14,506
Underwriting expense ratio
Amortization of deferred acquisition costs	$	970		$	977		$	3,821		$	3,910
General and administrative expenses (G&A)	977			929			3,757			3,610
Less:
G&A included in Interest Expense and Other	3			6			20			23
Allocated fee income	63			52			236			199
Billing and policy fees and other	28			22			102			98
Expense ratio numerator	$	1,853		$	1,826		$	7,220		$	7,200
Earned premium	$	5,851		$	5,639		$	22,637		$	22,357
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	56.0		%	73.0		%	57.9		%	64.9		%
Underwriting expense ratio	31.7		%	32.4		%	31.9		%	32.2		%
Combined ratio	87.7		%	105.4		%	89.8		%	97.1		%

(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.

16

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

	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
($ in millions)	2013			2012		Change		2013			2012		Change
Net written premiums - holding foreign exchange rates constant	$	495		$	294	68	%	$	1,290		$	1,057	22	%
Impact of changes in foreign exchange rates	(3		)					(11		)
Net written premiums	$	492		$	294	67	%	$	1,279		$	1,057	21	%

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							Twelve Months Ended
	December 31,							December 31,
($ in millions)	2013			2012		Change		2013			2012		Change
Net written premiums - holding foreign exchange rates constant	$	1,046		$	808	29	%	$	3,320		$	2,981	11	%
Impact of changes in foreign exchange rates	(3		)					(11		)
Net written premiums	$	1,043		$	808	29	%	$	3,309		$	2,981	11	%

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
	December 31,			December 31,
($ in millions, except per share amounts)	2013			2012
Tangible shareholders’ equity	$	19,543		$	18,604
Goodwill	3,634			3,365
Other intangible assets	351			381
Less: Impact of deferred tax on other intangible assets	(54		)	(48		)
Adjusted shareholders’ equity	23,474			22,302
Net unrealized investment gains, net of tax	1,322			3,103
Shareholders’ equity	$	24,796		$	25,405
Common shares outstanding	353.5			377.4
Tangible book value per share	$	55.29		$	49.29
Adjusted book value per share	66.41			59.09
Book value per share	70.15			67.31

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
	December 31,			December 31,
($ in millions)	2013			2012
Debt	$	6,346		$	6,350
Shareholders’ equity	24,796			25,405
Total capitalization	31,142			31,755
Net unrealized investment gains, net of tax	1,322			3,103
Total capitalization excluding net unrealized gain on investments, net of tax	$	29,820		$	28,652
Debt-to-capital ratio	20.4		%	20.0		%
Debt-to-capital ratio excluding net unrealized investment gains, net of tax	21.3		%	22.2		%

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

18

the estimated change in average premium on policies that renew, excluding exposure changes. Exposure is the measure of risk used in the pricing of an insurance product. The change in exposure is the amount of change in premium on policies that renew attributable to the change in portfolio risk. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. New business volume is the amount of written premium related to new policyholders and additional products 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 - Fourth 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

On November 1, 2013, the Company acquired all of the issued and outstanding shares of The Dominion of Canada General Insurance Company (Dominion) for an aggregate purchase price of approximately $1.034 billion.  The results of operations of the acquired business are reported in the Company’s Financial, Professional & International Insurance segment from the closing date.

The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-K 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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	988		$	2,473		$	3,673
Net income per share:
Basic	$	2.04		$	1.27		$	2.23		$	0.79		$	2.36		$	2.44		$	2.33		$	2.73		$	6.35		$	9.84
Diluted	$	2.02		$	1.26		$	2.21		$	0.78		$	2.33		$	2.41		$	2.30		$	2.70		$	6.30		$	9.74
Operating income	$	801		$	495		$	867		$	278		$	887		$	816		$	883		$	981		$	2,441		$	3,567
Operating income per share:
Basic	$	2.03		$	1.27		$	2.24		$	0.72		$	2.33		$	2.15		$	2.38		$	2.71		$	6.27		$	9.56
Diluted	$	2.01		$	1.26		$	2.22		$	0.72		$	2.31		$	2.13		$	2.35		$	2.68		$	6.21		$	9.46
Return on equity	13.1		%	8.0		%	13.6		%	4.7		%	14.1		%	14.6		%	13.9		%	15.9		%	9.8		%	14.6		%
Operating return on equity	14.7		%	9.0		%	15.5		%	5.0		%	15.8		%	14.2		%	15.2		%	16.8		%	11.0		%	15.5		%
Total assets, at period end	$	104,838		$	104,330		$	105,445		$	104,938		$	103,897		$	101,900		$	102,685		$	103,812		$	104,938		$	103,812
Total equity, at period end	$	24,872		$	25,049		$	25,905		$	25,405		$	25,596		$	24,890		$	24,811		$	24,796		$	25,405		$	24,796
Book value per share, at period end	$	63.81		$	64.90		$	67.81		$	67.31		$	68.00		$	66.65		$	68.15		$	70.15		$	67.31		$	70.15
Less: Net unrealized investment gains, net of tax	7.28			7.72			8.68			8.22			7.61			4.53			4.28			3.74			8.22			3.74
Adjusted book value per share, at period end	$	56.53		$	57.18		$	59.13		$	59.09		$	60.39		$	62.12		$	63.87		$	66.41		$	59.09		$	66.41
Weighted average number of common shares outstanding (basic)	392.0			388.0			384.0			381.0			377.7			375.9			368.9			359.1			386.2			370.3
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			363.4			389.8			374.3
Common shares outstanding at period end	389.8			386.0			382.0			377.4			376.4			373.5			364.1			353.5			377.4			353.5
Common stock dividends declared	$	162		$	181		$	179		$	178		$	176		$	191		$	185		$	182		$	700		$	734
Common stock repurchased:
Under Board of Directors authorization
Shares	6.0			5.6			5.4			5.4			3.7			3.6			9.7			11.4			22.4			28.4
Cost	$	350		$	350		$	350		$	400		$	300		$	300		$	800		$	1,000		$	1,450		$	2,400
Other
Shares	0.8			—			—			0.1			0.7			—			0.1			—			0.9			0.8
Cost	$	52		$	1		$	—		$	2		$	58		$	1		$	1		$	1		$	55		$	61

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			4Q		4Q		4Q
	2012		2012		2012			2012		2013		2013		2013			2013		2012		2013
Net income
Operating income	$	801	$	495	$	867		$	278	$	887	$	816	$	883		$	981	$	2,441	$	3,567
Net realized investment gains (losses)	5		4		(3		)	26		9		109		(19		)	7		32		106
Net income	$	806	$	499	$	864		$	304	$	896	$	925	$	864		$	988	$	2,473	$	3,673
Basic earnings per share
Operating income	$	2.03	$	1.27	$	2.24		$	0.72	$	2.33	$	2.15	$	2.38		$	2.71	$	6.27	$	9.56
Net realized investment gains (losses)	0.01		—		(0.01		)	0.07		0.03		0.29		(0.05		)	0.02		0.08		0.28
Net income	$	2.04	$	1.27	$	2.23		$	0.79	$	2.36	$	2.44	$	2.33		$	2.73	$	6.35	$	9.84
Diluted earnings per share
Operating income	$	2.01	$	1.26	$	2.22		$	0.72	$	2.31	$	2.13	$	2.35		$	2.68	$	6.21	$	9.46
Net realized investment gains (losses)	0.01		—		(0.01		)	0.06		0.02		0.28		(0.05		)	0.02		0.09		0.28
Net income	$	2.02	$	1.26	$	2.21		$	0.78	$	2.33	$	2.41	$	2.30		$	2.70	$	6.30	$	9.74

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Basic and Diluted
Net income, as reported	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	988		$	2,473		$	3,673
Participating share-based awards - allocated income	(6		)	(4		)	(6		)	(2		)	(6		)	(7		)	(6		)	(8		)	(19		)	(27		)
Net income available to common shareholders - basic and diluted	$	800		$	495		$	858		$	302		$	890		$	918		$	858		$	980		$	2,454		$	3,646
Common Shares
Basic
Weighted average shares outstanding	392.0			388.0			384.0			381.0			377.7			375.9			368.9			359.1			386.2			370.3
Diluted
Weighted average shares outstanding	392.0			388.0			384.0			381.0			377.7			375.9			368.9			359.1			386.2			370.3
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			4.3			3.6			4.0
Diluted weighted average shares outstanding	395.8			391.6			387.9			385.3			381.9			379.9			372.9			363.4			389.8			374.3

(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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Revenues
Premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	5,851		$	22,357		$	22,637
Net investment income	740			738			722			689			670			687			657			702			2,889			2,716
Fee income	82			59			92			90			97			82			107			109			323			395
Net realized investment gains (losses)	10			4			(2		)	39			10			167			(22		)	11			51			166
Other revenues	37			29			34			20			34			135			44			64			120			277
Total revenues	6,392			6,359			6,512			6,477			6,328			6,674			6,452			6,737			25,740			26,191
Claims and expenses
Claims and claim adjustment expenses	3,364			3,786			3,359			4,167			3,153			3,530			3,297			3,327			14,676			13,307
Amortization of deferred acquisition costs	971			976			986			977			948			950			953			970			3,910			3,821
General and administrative expenses	884			893			904			929			915			931			934			977			3,610			3,757
Interest expense	96			96			93			93			92			86			91			92			378			361
Total claims and expenses	5,315			5,751			5,342			6,166			5,108			5,497			5,275			5,366			22,574			21,246
Income before income taxes	1,077			608			1,170			311			1,220			1,177			1,177			1,371			3,166			4,945
Income tax expense	271			109			306			7			324			252			313			383			693			1,272
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	988		$	2,473		$	3,673
Other-than-temporary impairments (OTTI)
Total OTTI gains (losses)	$	—		$	11		$	17		$	(1	)	$	—		$	(1	)	$	—		$	(9	)	$	27		$	(10	)
OTTI losses recognized in net realized investment gains (losses)	$	(4	)	$	(4	)	$	(3	)	$	(4	)	$	(5	)	$	(2	)	$	(3	)	$	(5	)	$	(15	)	$	(15	)
OTTI gains (losses) recognized in other comprehensive income	$	4		$	15		$	20		$	3		$	5		$	1		$	3		$	(4	)	$	42		$	5
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		%	19.8		%	19.5		%
Net investment income (after-tax)	$	593		$	589		$	578		$	556		$	542		$	551		$	531		$	562		$	2,316		$	2,186
Catastrophes, net of reinsurance:
Pre-tax	$	168		$	549		$	91		$	1,054		$	99		$	340		$	99		$	53		$	1,862		$	591
After-tax	$	109		$	357		$	59		$	689		$	65		$	221		$	64		$	37		$	1,214		$	387
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	304		$	221		$	193		$	222		$	231		$	192		$	158		$	259		$	940		$	840
After-tax	$	200		$	147		$	129		$	146		$	154		$	125		$	107		$	166		$	622		$	552

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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Underwriting gain (loss)	$	248		$	(47	)	$	327		$	(232	)	$	385		$	235		$	387		$	435		$	296		$	1,442
Net investment income	593			589			578			556			542			551			531			562			2,316			2,186
Other, including interest expense	(40		)	(47		)	(38		)	(46		)	(40		)	30			(35		)	(16		)	(171		)	(61		)
Operating income	801			495			867			278			887			816			883			981			2,441			3,567
Net realized investment gains (losses)	5			4			(3		)	26			9			109			(19		)	7			32			106
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	988		$	2,473		$	3,673
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		%	56.0		%	64.9		%	57.9		%
Underwriting expense ratio	32.1		%	32.4		%	31.9		%	32.4		%	32.3		%	32.0		%	31.6		%	31.7		%	32.2		%	31.9		%
Combined ratio	92.2		%	100.5		%	90.3		%	105.4		%	88.5		%	94.3		%	88.9		%	87.7		%	97.1		%	89.8		%
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		%	87.1		%	96.3		%	89.3		%
Impact of catastrophes on combined ratio	3.1		%	10.0		%	1.6		%	18.7		%	1.8		%	6.1		%	1.7		%	0.9		%	8.3		%	2.6		%
Impact of prior year reserve development on combined ratio	-5.5		%	-4.0		%	-3.4		%	-4.0		%	-4.1		%	-3.5		%	-2.8		%	-4.4		%	-4.2		%	-3.7		%
(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		4Q		4Q		4Q
	2012		2012		2012		2012		2013		2013		2013		2013		2012		2013
Billing and policy fees and other	$	27	$	25	$	24	$	22	$	24	$	25	$	25	$	28	$	98	$	102
Fee income:
Loss and loss adjustment expenses	$	35	$	11	$	40	$	38	$	42	$	27	$	44	$	46	$	124	$	159
Underwriting expenses	47		48		52		52		55		55		63		63		199		236
Total fee income	$	82	$	59	$	92	$	90	$	97	$	82	$	107	$	109	$	323	$	395

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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Revenues
Premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	5,851		$	22,357		$	22,637
Net investment income	740			738			722			689			670			687			657			702			2,889			2,716
Fee income	82			59			92			90			97			82			107			109			323			395
Other revenues	37			29			34			20			34			135			44			64			120			277
Total revenues	6,382			6,355			6,514			6,438			6,318			6,507			6,474			6,726			25,689			26,025
Claims and expenses
Claims and claim adjustment expenses	3,364			3,786			3,359			4,167			3,153			3,530			3,297			3,327			14,676			13,307
Amortization of deferred acquisition costs	971			976			986			977			948			950			953			970			3,910			3,821
General and administrative expenses	884			893			904			929			915			931			934			977			3,610			3,757
Interest expense	96			96			93			93			92			86			91			92			378			361
Total claims and expenses	5,315			5,751			5,342			6,166			5,108			5,497			5,275			5,366			22,574			21,246
Operating income before income taxes	1,067			604			1,172			272			1,210			1,010			1,199			1,360			3,115			4,779
Income tax expense (benefit)	266			109			305			(6		)	323			194			316			379			674			1,212
Operating income	$	801		$	495		$	867		$	278		$	887		$	816		$	883		$	981		$	2,441		$	3,567
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		%	19.8		%	19.5		%
Net investment income (after-tax)	$	593		$	589		$	578		$	556		$	542		$	551		$	531		$	562		$	2,316		$	2,186
Catastrophes, net of reinsurance:
Pre-tax	$	168		$	549		$	91		$	1,054		$	99		$	340		$	99		$	53		$	1,862		$	591
After-tax	$	109		$	357		$	59		$	689		$	65		$	221		$	64		$	37		$	1,214		$	387
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	304		$	221		$	193		$	222		$	231		$	192		$	158		$	259		$	940		$	840
After-tax	$	200		$	147		$	129		$	146		$	154		$	125		$	107		$	166		$	622		$	552

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			4Q		4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013		2012			2013
Statutory underwriting
Gross written premiums	$	6,073		$	6,240		$	6,271		$	5,725		$	6,188		$	6,247		$	6,310		$	5,912	$	24,309		$	24,657
Net written premiums	$	5,497		$	5,868		$	5,697		$	5,385		$	5,597		$	5,824		$	5,713		$	5,633	$	22,447		$	22,767
Net earned premiums	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	5,851	$	22,357		$	22,637
Losses and loss adjustment expenses	3,318			3,791			3,310			4,119			3,070			3,490			3,250			3,282		14,538			13,092
Underwriting expenses	1,797			1,838			1,840			1,780			1,799			1,808			1,799			1,794		7,255			7,200
Statutory underwriting gain (loss)	408			(100		)	516			(260		)	648			305			617			775		564			2,345
Policyholder dividends	12			11			11			12			10			13			7			5		46			35
Statutory underwriting gain (loss) after policyholder dividends	$	396		$	(111	)	$	505		$	(272	)	$	638		$	292		$	610		$	770	$	518		$	2,310
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,037		$	41,568	$	40,656		$	41,568
Increase (decrease) in reserves	$	(108	)	$	134		$	(397	)	$	128		$	(441	)	$	(70	)	$	(108	)	$	1,531	$	(243	)	$	912
Statutory basis surplus	$	19,867		$	19,841		$	20,291		$	20,048		$	20,692		$	20,672		$	21,509		$	21,123	$	20,048		$	21,123
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			1.08:1		1.12:1			1.08:1

(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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Written premiums
Gross	$	6,073		$	6,240		$	6,271		$	5,725		$	6,188		$	6,247		$	6,310		$	5,912		$	24,309		$	24,657
Ceded	(576		)	(372		)	(574		)	(340		)	(591		)	(423		)	(597		)	(279		)	(1,862		)	(1,890		)
Net	$	5,497		$	5,868		$	5,697		$	5,385		$	5,597		$	5,824		$	5,713		$	5,633		$	22,447		$	22,767
Earned premiums
Gross	$	5,973		$	5,985		$	6,132		$	6,110		$	5,985		$	6,091		$	6,163		$	6,369		$	24,200		$	24,608
Ceded	(450		)	(456		)	(466		)	(471		)	(468		)	(488		)	(497		)	(518		)	(1,843		)	(1,971		)
Net	$	5,523		$	5,529		$	5,666		$	5,639		$	5,517		$	5,603		$	5,666		$	5,851		$	22,357		$	22,637

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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Revenues
Premiums	$	2,876		$	2,860		$	2,982		$	2,973		$	2,942		$	3,018		$	3,046		$	3,078		$	11,691		$	12,084
Net investment income	532			536			524			498			487			502			479			507			2,090			1,975
Fee income	82			58			92			90			97			82			106			108			322			393
Other revenues	14			8			9			9			13			114			8			23			40			158
Total revenues	3,504			3,462			3,607			3,570			3,539			3,716			3,639			3,716			14,143			14,610
Claims and expenses
Claims and claim adjustment expenses	1,709			2,049			1,906			2,193			1,749			2,008			1,965			1,854			7,857			7,576
Amortization of deferred acquisition costs	467			465			477			475			475			481			479			478			1,884			1,913
General and administrative expenses	498			504			504			514			517			511			503			521			2,020			2,052
Total claims and expenses	2,674			3,018			2,887			3,182			2,741			3,000			2,947			2,853			11,761			11,541
Operating income before income taxes	830			444			720			388			798			716			692			863			2,382			3,069
Income tax expense	218			82			177			62			208			137			166			229			539			740
Operating income	$	612		$	362		$	543		$	326		$	590		$	579		$	526		$	634		$	1,843		$	2,329
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		%	19.9		%	19.6		%
Net investment income (after-tax)	$	425		$	428		$	419		$	402		$	394		$	402		$	387		$	406		$	1,674		$	1,589
Catastrophes, net of reinsurance:
Pre-tax	$	53		$	252		$	50		$	439		$	35		$	148		$	61		$	41		$	794		$	285
After-tax	$	34		$	164		$	33		$	285		$	23		$	96		$	40		$	27		$	516		$	186
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	248		$	58		$	41		$	120		$	113		$	55		$	36		$	121		$	467		$	325
After-tax	$	162		$	38		$	27		$	78		$	75		$	36		$	24		$	78		$	305		$	213

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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Underwriting gain (loss)	$	177		$	(71	)	$	117		$	(82	)	$	188		$	102		$	134		$	212		$	141		$	636
Net investment income	425			428			419			402			394			402			387			406			1,674			1,589
Other	10			5			7			6			8			75			5			16			28			104
Operating income	$	612		$	362		$	543		$	326		$	590		$	579		$	526		$	634		$	1,843		$	2,329
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		%	58.6		%	65.9		%	61.2		%
Underwriting expense ratio	31.8		%	32.0		%	31.0		%	31.3		%	31.7		%	30.9		%	30.0		%	30.3		%	31.5		%	30.7		%
Combined ratio	89.6		%	103.0		%	93.3		%	103.5		%	89.4		%	96.2		%	93.0		%	88.9		%	97.4		%	91.9		%
Impact of catastrophes on combined ratio	1.8		%	8.8		%	1.7		%	14.7		%	1.2		%	4.9		%	2.0		%	1.3		%	6.8		%	2.4		%
Impact of prior year reserve development on combined ratio	-8.6		%	-2.0		%	-1.4		%	-4.0		%	-3.9		%	-1.8		%	-1.2		%	-3.9		%	-4.0		%	-2.7		%
(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		4Q		4Q		4Q
	2012		2012		2012		2012		2013		2013		2013		2013		2012		2013
Billing and policy fees and other	$	5	$	5	$	5	$	4	$	4	$	5	$	4	$	4	$	19	$	17
Fee income:
Loss and loss adjustment expenses	$	35	$	10	$	40	$	38	$	42	$	27	$	43	$	45	$	123	$	157
Underwriting expenses	47		48		52		52		55		55		63		63		199		236
Total fee income	$	82	$	58	$	92	$	90	$	97	$	82	$	106	$	108	$	322	$	393

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		4Q		4Q		4Q
	2012		2012			2012		2012			2013		2013		2013		2013		2012		2013
Statutory underwriting
Gross written premiums	$	3,429	$	3,280		$	3,382	$	3,020		$	3,626	$	3,344	$	3,483	$	3,124	$	13,111	$	13,577
Net written premiums	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	3,032	$	2,873	$	11,872	$	12,233
Net earned premiums	$	2,876	$	2,860		$	2,982	$	2,973		$	2,942	$	3,018	$	3,046	$	3,078	$	11,691	$	12,084
Losses and loss adjustment expenses	1,663		2,057			1,860		2,147			1,668		1,970		1,920		1,805		7,727		7,363
Underwriting expenses	940		928			937		894			969		933		913		888		3,699		3,703
Statutory underwriting gain (loss)	273		(125		)	185		(68		)	305		115		213		385		265		1,018
Policyholder dividends	10		8			9		10			8		11		5		4		37		28
Statutory underwriting gain (loss) after policyholder dividends	$	263	$	(133	)	$	176	$	(78	)	$	297	$	104	$	208	$	381	$	228	$	990

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		4Q			4Q			4Q
	2012		2012			2012		2012			2013		2013		2013		2013			2012			2013
Net written premiums by market
Select Accounts	$	718	$	721		$	679	$	657		$	724	$	709	$	654	$	637		$	2,775		$	2,724
Commercial Accounts	861		717			805		718			908		732		807		750			3,101			3,197
National Accounts	235		226			202		244			277		242		236		255			907			1,010
Industry-Focused Underwriting	648		636			671		599			699		653		673		620			2,554			2,645
Target Risk Underwriting	429		486			382		369			448		500		441		410			1,666			1,799
Specialized Distribution	208		242			222		198			204		232		220		202			870			858
Total core	3,099		3,028			2,961		2,785			3,260		3,068		3,031		2,874			11,873			12,233
Business Insurance other	1		(2		)	1		(1		)	—		—		1		(1		)	(1		)	—
Total	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	3,032	$	2,873		$	11,872		$	12,233
Net written premiums by product line
Commercial multi-peril	$	819	$	777		$	769	$	735		$	828	$	771	$	755	$	729		$	3,100		$	3,083
Workers’ compensation	944		800			849		807			1,056		860		885		841			3,400			3,642
Commercial automobile	489		499			498		438			484		476		488		449			1,924			1,897
Commercial property	416		481			373		377			427		484		424		413			1,647			1,748
General liability	426		464			452		423			458		469		458		438			1,765			1,823
Other	6		5			21		4			7		8		22		3			36			40
Total	$	3,100	$	3,026		$	2,962	$	2,784		$	3,260	$	3,068	$	3,032	$	2,873		$	11,872		$	12,233
National Accounts
Additions to claim volume under administration (1)	$	639	$	472		$	480	$	549		$	701	$	523	$	523	$	596		$	2,140		$	2,343
Written fees	$	88	$	77		$	77	$	74		$	104	$	88	$	92	$	81		$	316		$	365

(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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Revenues
Premiums	$	737		$	766		$	772		$	770		$	735		$	751		$	785		$	958		$	3,045		$	3,229
Net investment income	104			99			97			95			92			91			88			101			395			372
Fee income	—			1			—			—			—			—			1			1			1			2
Other revenues	8			5			8			5			5			5			5			7			26			22
Total revenues	849			871			877			870			832			847			879			1,067			3,467			3,625
Claims and expenses
Claims and claim adjustment expenses	341			302			309			362			302			332			331			439			1,314			1,404
Amortization of deferred acquisition costs	143			149			149			148			143			147			155			178			589			623
General and administrative expenses	165			165			165			172			162			172			169			202			667			705
Total claims and expenses	649			616			623			682			607			651			655			819			2,570			2,732
Operating income before income taxes	200			255			254			188			225			196			224			248			897			893
Income tax expense	51			73			74			57			62			42			64			77			255			245
Operating income	$	149		$	182		$	180		$	131		$	163		$	154		$	160		$	171		$	642		$	648
Other statistics
Effective tax rate on net investment income	18.9		%	19.7		%	19.3		%	19.1		%	18.6		%	18.6		%	18.2		%	19.4		%	19.2		%	18.7		%
Net investment income (after-tax)	$	85		$	79		$	78		$	77		$	75		$	74		$	72		$	81		$	319		$	302
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	4		$	1		$	45		$	—		$	46		$	—		$	10		$	50		$	56
After-tax	$	—		$	3		$	—		$	34		$	—		$	30		$	—		$	9		$	37		$	39
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	46		$	96		$	87		$	69		$	58		$	72		$	74		$	102		$	298		$	306
After-tax	$	31		$	66		$	60		$	46		$	40		$	47		$	51		$	66		$	203		$	204

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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Underwriting gain	$	59		$	99		$	97		$	50		$	85		$	76		$	85		$	85		$	305		$	331
Net investment income	85			79			78			77			75			74			72			81			319			302
Other	5			4			5			4			3			4			3			5			18			15
Operating income	$	149		$	182		$	180		$	131		$	163		$	154		$	160		$	171		$	642		$	648
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		%	45.7		%	42.8		%	43.2		%
Underwriting expense ratio	41.8		%	40.9		%	40.5		%	41.7		%	41.5		%	42.4		%	41.4		%	39.3		%	41.3		%	41.1		%
Combined ratio	87.8		%	80.0		%	80.2		%	88.3		%	82.3		%	86.3		%	83.2		%	85.0		%	84.1		%	84.3		%
Impact of catastrophes on combined ratio	0.0		%	0.4		%	0.1		%	5.9		%	0.0		%	6.1		%	0.0		%	1.0		%	1.7		%	1.8		%
Impact of prior year reserve development on combined ratio	-6.1		%	-12.5		%	-11.3		%	-9.1		%	-7.8		%	-9.7		%	-9.3		%	-10.7		%	-9.8		%	-9.5		%
(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		4Q		4Q		4Q
	2012		2012		2012		2012		2013		2013		2013		2013		2012		2013
Billing and policy fees and other	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	3
Fee income:
Loss and loss adjustment expenses	$	—	$	1	$	—	$	—	$	—	$	—	$	1	$	1	$	1	$	2
Underwriting expenses	—		—		—		—		—		—		—		—		—		—
Total fee income	$	—	$	1	$	—	$	—	$	—	$	—	$	1	$	1	$	1	$	2

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		4Q		4Q		4Q
	2012		2012		2012		2012		2013		2013		2013		2013		2012		2013
Statutory underwriting
Gross written premiums	$	791	$	882	$	763	$	839	$	799	$	906	$	799	$	1,042	$	3,275	$	3,546
Net written premiums	$	604	$	840	$	729	$	808	$	647	$	849	$	770	$	1,043	$	2,981	$	3,309
Net earned premiums	$	737	$	766	$	772	$	770	$	735	$	751	$	785	$	958	$	3,045	$	3,229
Losses and loss adjustment expenses	341		299		307		359		300		330		329		439		1,306		1,398
Underwriting expenses	316		319		295		314		317		323		313		377		1,244		1,330
Statutory underwriting gain	80		148		170		97		118		98		143		142		495		501
Policyholder dividends	2		3		2		2		2		2		2		1		9		7
Statutory underwriting gain after policyholder dividends	$	78	$	145	$	168	$	95	$	116	$	96	$	141	$	141	$	486	$	494

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		4Q		4Q		4Q
	2012		2012		2012		2012		2013		2013		2013		2013		2012		2013
Net written premiums by market
Bond & Financial Products	$	357	$	524	$	529	$	514	$	395	$	531	$	553	$	551	$	1,924	$	2,030
International	247		316		200		294		252		318		217		492		1,057		1,279
Total	$	604	$	840	$	729	$	808	$	647	$	849	$	770	$	1,043	$	2,981	$	3,309
Net written premiums by product line
General liability	$	143	$	236	$	233	$	247	$	168	$	237	$	249	$	280	$	859	$	934
Fidelity & surety	172		248		246		229		178		253		255		232		895		918
International	247		316		200		294		252		318		217		492		1,057		1,279
Other	42		40		50		38		49		41		49		39		170		178
Total	$	604	$	840	$	729	$	808	$	647	$	849	$	770	$	1,043	$	2,981	$	3,309

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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Revenues
Premiums	$	1,910		$	1,903		$	1,912		$	1,896		$	1,840		$	1,834		$	1,835		$	1,815		$	7,621		$	7,324
Net investment income	104			103			101			96			91			94			90			94			404			369
Other revenues	19			16			17			14			18			15			34			36			66			103
Total revenues	2,033			2,022			2,030			2,006			1,949			1,943			1,959			1,945			8,091			7,796
Claims and expenses
Claims and claim adjustment expenses	1,314			1,435			1,144			1,612			1,102			1,190			1,001			1,034			5,505			4,327
Amortization of deferred acquisition costs	361			362			360			354			330			322			319			314			1,437			1,285
General and administrative expenses	214			219			230			237			232			241			256			251			900			980
Total claims and expenses	1,889			2,016			1,734			2,203			1,664			1,753			1,576			1,599			7,842			6,592
Operating income (loss) before income taxes	144			6			296			(197		)	285			190			383			346			249			1,204
Income tax expense (benefit)	36			(11		)	90			(83		)	88			48			121			109			32			366
Operating income (loss)	$	108		$	17		$	206		$	(114	)	$	197		$	142		$	262		$	237		$	217		$	838
Other statistics
Effective tax rate on net investment income	20.1		%	20.4		%	20.2		%	19.4		%	19.5		%	20.1		%	19.5		%	20.3		%	20.1		%	19.9		%
Net investment income (after-tax)	$	83		$	82		$	81		$	77		$	73		$	75		$	72		$	75		$	323		$	295
Catastrophes, net of reinsurance:
Pre-tax	$	115		$	293		$	40		$	570		$	64		$	146		$	38		$	2		$	1,018		$	250
After-tax	$	75		$	190		$	26		$	370		$	42		$	95		$	24		$	1		$	661		$	162
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	10		$	67		$	65		$	33		$	60		$	65		$	48		$	36		$	175		$	209
After-tax	$	7		$	43		$	42		$	22		$	39		$	42		$	32		$	22		$	114		$	135

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			4Q			4Q			4Q
		2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Underwriting gain (loss)		$	12		$	(75	)	$	113		$	(200	)	$	112		$	57		$	168		$	138		$	(150	)	$	475
Net investment income		83			82			81			77			73			75			72			75			323			295
Other		13			10			12			9			12			10			22			24			44			68
Operating income (loss)		$	108		$	17		$	206		$	(114	)	$	197		$	142		$	262		$	237		$	217		$	838
GAAP combined ratio (1)
Loss and loss adjustment expense ratio		68.8		%	75.4		%	59.8		%	85.0		%	59.9		%	64.9		%	54.5		%	57.0		%	72.3		%	59.1		%
Underwriting expense ratio		29.0		%	29.4		%	29.9		%	30.2		%	29.5		%	29.6		%	30.2		%	29.9		%	29.6		%	29.8		%
Combined ratio		97.8		%	104.8		%	89.7		%	115.2		%	89.4		%	94.5		%	84.7		%	86.9		%	101.9		%	88.9		%
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		%	85.1		%	99.6		%	87.1		%
Impact of catastrophes on combined ratio		6.0		%	15.3		%	2.1		%	30.1		%	3.5		%	8.0		%	2.0		%	0.1		%	13.4		%	3.4		%
Impact of prior year reserve development on combined ratio		-0.5		%	-3.5		%	-3.4		%	-1.8		%	-3.3		%	-3.5		%	-2.6		%	-2.0		%	-2.3		%	-2.8		%
(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			4Q			4Q			4Q
		2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
	Billing and policy fees and other	$	22		$	20		$	19		$	18		$	20		$	20		$	21		$	21		$	79		$	82

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		4Q		4Q			4Q
	2012		2012			2012		2012			2013		2013		2013		2013		2012			2013
Statutory underwriting
Gross written premiums	$	1,853	$	2,078		$	2,126	$	1,866		$	1,763	$	1,997	$	2,028	$	1,746	$	7,923		$	7,534
Net written premiums	$	1,793	$	2,002		$	2,006	$	1,793		$	1,690	$	1,907	$	1,911	$	1,717	$	7,594		$	7,225
Net earned premiums	$	1,910	$	1,903		$	1,912	$	1,896		$	1,840	$	1,834	$	1,835	$	1,815	$	7,621		$	7,324
Losses and loss adjustment expenses	1,314		1,435			1,143		1,613			1,102		1,190		1,001		1,038		5,505			4,331
Underwriting expenses	541		591			608		572			513		552		573		529		2,312			2,167
Statutory underwriting gain (loss)	$	55	$	(123	)	$	161	$	(289	)	$	225	$	92	$	261	$	248	$	(196	)	$	826
Policies in force (in thousands)
Automobile	2,554		2,505			2,436		2,361			2,286		2,217		2,151		2,103		2,361			2,103
Homeowners and other (1)	4,971		4,902			4,794		4,672			4,563		4,477		4,386		4,294		4,672			4,294

(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			4Q			4Q			4Q
		2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Statutory underwriting
Gross written premiums		$	904		$	903		$	911		$	826		$	835		$	838		$	834		$	770		$	3,544		$	3,277
Net written premiums		$	900		$	899		$	906		$	822		$	831		$	834		$	828		$	765		$	3,527		$	3,258
Net earned premiums		$	902		$	891		$	888		$	875		$	844		$	837		$	827		$	812		$	3,556		$	3,320
Losses and loss adjustment expenses		641			674			659			778			594			599			591			636			2,752			2,420
Underwriting expenses		235			238			233			229			218			224			222			208			935			872
Statutory underwriting gain (loss)		$	26		$	(21	)	$	(4	)	$	(132	)	$	32		$	14		$	14		$	(32	)	$	(131	)	$	28
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		%	77.8		%	77.4		%	72.8		%
Underwriting expense ratio		25.4		%	25.9		%	25.3		%	26.5		%	25.6		%	26.2		%	26.4		%	26.2		%	25.7		%	26.1		%
Combined ratio		96.5		%	101.5		%	99.4		%	115.5		%	96.0		%	97.8		%	97.9		%	104.0		%	103.1		%	98.9		%
Impact of catastrophes on combined ratio		1.0		%	3.8		%	0.4		%	7.9		%	1.0		%	1.4		%	0.3		%	0.0		%	3.3		%	0.7		%
Impact of prior year reserve development on combined ratio		-0.2		%	0.0		%	0.9		%	1.9		%	0.6		%	0.0		%	0.0		%	1.8		%	0.6		%	0.6		%
Catastrophe losses, net of reinsurance:
Pre-tax		$	9		$	34		$	4		$	69		$	8		$	12		$	2		$	—		$	116		$	22
After-tax		$	6		$	22		$	3		$	44		$	6		$	7		$	1		$	—		$	75		$	14
Prior year reserve development - favorable (unfavorable)
Pre-tax		$	2		$	—		$	(8	)	$	(17	)	$	(6	)	$	—		$	—		$	(14	)	$	(23	)	$	(20	)
After-tax		$	1		$	—		$	(5	)	$	(11	)	$	(4	)	$	—		$	—		$	(10	)	$	(15	)	$	(14	)
Policies in force (in thousands)		2,473			2,423			2,353			2,278			2,204			2,136			2,071			2,022
Change from prior year quarter		-1.0		%	-3.2		%	-5.9		%	-8.7		%	-10.9		%	-11.8		%	-12.0		%	-11.2		%
Change from prior quarter		-0.8		%	-2.0		%	-2.9		%	-3.2		%	-3.2		%	-3.1		%	-3.0		%	-2.4		%
(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			4Q			4Q			4Q
		2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
	Billing and policy fees and other	$	12		$	10		$	11		$	9		$	10		$	9		$	9		$	9		$	42		$	37

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			4Q			4Q			4Q
		2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Statutory underwriting
Gross written premiums		$	912		$	1,135		$	1,171		$	1,002		$	889		$	1,119		$	1,150		$	936		$	4,220		$	4,094
Net written premiums		$	855		$	1,064		$	1,056		$	934		$	820		$	1,033		$	1,039		$	913		$	3,909		$	3,805
Net earned premiums		$	973		$	976		$	986		$	983		$	957		$	958		$	969		$	963		$	3,918		$	3,847
Losses and loss adjustment expenses		643			730			457			800			480			561			382			371			2,630			1,794
Underwriting expenses		262			309			315			294			255			293			313			286			1,180			1,147
Statutory underwriting gain (loss)		$	68		$	(63	)	$	214		$	(111	)	$	222		$	104		$	274		$	306		$	108		$	906
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		%	38.5		%	67.2		%	46.6		%
Underwriting expense ratio		29.0		%	29.4		%	29.0		%	29.5		%	29.8		%	30.1		%	30.8		%	30.7		%	29.2		%	30.4		%
Combined ratio		95.0		%	104.2		%	75.4		%	110.9		%	80.0		%	88.7		%	70.2		%	69.2		%	96.4		%	77.0		%
Impact of catastrophes on combined ratio		10.7		%	26.1		%	3.6		%	50.3		%	5.6		%	13.9		%	3.6		%	0.0		%	22.7		%	5.8		%
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		%	-5.0		%	-5.9		%
Catastrophe losses, net of reinsurance:
Pre-tax		$	104		$	256		$	35		$	495		$	54		$	133		$	35		$	1		$	890		$	223
After-tax		$	68		$	166		$	22		$	322		$	35		$	87		$	22		$	1		$	578		$	145
Prior year reserve development - favorable (unfavorable)
Pre-tax		$	10		$	68		$	71		$	48		$	65		$	65		$	48		$	50		$	197		$	228
After-tax		$	7		$	44		$	46		$	31		$	42		$	42		$	32		$	32		$	128		$	148
Policies in force (in thousands) (3)		4,903			4,830			4,718			4,594			4,484			4,396			4,303			4,209
Change from prior year quarter		-0.2		%	-2.1		%	-4.6		%	-6.9		%	-8.5		%	-9.0		%	-8.8		%	-8.4		%
Change from prior quarter		-0.7		%	-1.5		%	-2.3		%	-2.6		%	-2.4		%	-2.0		%	-2.1		%	-2.2		%
(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			4Q			4Q			4Q
		2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
	Billing and policy fees and other	$	10		$	8		$	9		$	8		$	9		$	10		$	12		$	12		$	35		$	43

(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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Net written premiums
Automobile	$	29		$	28		$	32		$	26		$	29		$	27		$	30		$	26		$	115		$	112
Homeowners and other	9			11			12			11			10			13			14			13			43			50
Total net written premiums	$	38		$	39		$	44		$	37		$	39		$	40		$	44		$	39		$	158		$	162
Revenues
Premiums	$	35		$	36		$	38		$	38		$	39		$	39		$	39		$	40		$	147		$	157
Other revenues	—			—			1			—			—			—			1			—			1			1
Total revenues	35			36			39			38			39			39			40			40			148			158
Claims and expenses
Claims and claim adjustment expenses	31			31			27			34			28			30			28			31			123			117
Amortization of deferred acquisition costs	1			1			1			—			1			1			1			1			3			4
General and administrative expenses	42			42			61			51			40			34			37			36			196			147
Total claims and expenses	74			74			89			85			69			65			66			68			322			268
Operating loss before income taxes	(39		)	(38		)	(50		)	(47		)	(30		)	(26		)	(26		)	(28		)	(174		)	(110		)
Income taxes	(14		)	(13		)	(17		)	(17		)	(11		)	(9		)	(9		)	(10		)	(61		)	(39		)
Operating loss	$	(25	)	$	(25	)	$	(33	)	$	(30	)	$	(19	)	$	(17	)	$	(17	)	$	(18	)	$	(113	)	$	(71	)
Other statistics
Policies in force (in thousands)
Automobile	81			82			83			83			82			81			80			81
Homeowners and other	68			72			76			78			79			81			83			85
Catastrophes, net of reinsurance:
Pre-tax	$	2		$	3		$	1		$	6		$	2		$	1		$	1		$	1		$	12		$	5
After-tax	$	1		$	2		$	1		$	4		$	1		$	1		$	1		$	—		$	8		$	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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Revenues
Other revenues	$	(4	)	$	—		$	—		$	(8	)	$	(2	)	$	1		$	(3	)	$	(2	)	$	(12	)	$	(6	)
Claims and expenses
Interest expense	96			96			93			93			92			86			91			92			378			361
General and administrative expenses	7			5			5			6			4			7			6			3			23			20
Total claims and expenses	103			101			98			99			96			93			97			95			401			381
Operating loss before income tax benefit	(107		)	(101		)	(98		)	(107		)	(98		)	(92		)	(100		)	(97		)	(413		)	(387		)
Income taxes	(39		)	(35		)	(36		)	(42		)	(35		)	(33		)	(35		)	(36		)	(152		)	(139		)
Operating loss	$	(68	)	$	(66	)	$	(62	)	$	(65	)	$	(63	)	$	(59	)	$	(65	)	$	(61	)	$	(261	)	$	(248	)

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

22

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

	December 31,			December 31,
	2013 (1)			2012
Assets
Fixed maturities, available for sale, at fair value (amortized cost $62,196 and $60,829)	$	63,956		$	65,393
Equity securities, available for sale, at fair value (cost $686 and $462)	943			645
Real estate investments	938			883
Short-term securities	3,882			3,483
Other investments	3,441			3,434
Total investments	73,160			73,838
Cash	294			330
Investment income accrued	734			752
Premiums receivable	6,125			5,872
Reinsurance recoverables	9,713			10,712
Ceded unearned premiums	801			856
Deferred acquisition costs	1,804			1,792
Deferred taxes	303			—
Contractholder receivables	4,328			4,806
Goodwill	3,634			3,365
Other intangible assets	351			381
Other assets	2,565			2,234
Total assets	$	103,812		$	104,938
Liabilities
Claims and claim adjustment expense reserves	$	50,895		$	50,922
Unearned premium reserves	11,850			11,241
Contractholder payables	4,328			4,806
Payables for reinsurance premiums	298			346
Deferred taxes	—			338
Debt	6,346			6,350
Other liabilities	5,299			5,530
Total liabilities	79,016			79,533
Shareholders’ equity
Common stock (1,750.0 shares authorized; 353.5 and 377.4 shares issued and outstanding)	21,500			21,161
Retained earnings	24,291			21,352
Accumulated other comprehensive income	810			2,236
Treasury stock, at cost (401.5 and 372.3 shares)	(21,805		)	(19,344		)
Total shareholders’ equity	24,796			25,405
Total liabilities and shareholders’ equity	$	103,812		$	104,938

(1)  Preliminary.

23

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

	December 31,		Pre-tax Book		December 31,		Pre-tax Book
	2013		Yield (1)		2012		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	28,788	3.55	%	$	27,188	3.92	%
Tax-exempt fixed maturities	35,168		3.84	%	38,205		3.87	%
Total fixed maturities	63,956		3.71	%	65,393		3.89	%
Non-redeemable preferred stocks	333		5.70	%	135		6.27	%
Common stocks	610				510
Total equity securities	943				645
Real estate investments	938				883
Short-term securities	3,882		0.15	%	3,483		0.21	%
Private equities	1,926				1,888
Hedge funds	390				381
Real estate partnerships	618				610
Trading securities	—				30
Other investments	507				525
Total other investments	3,441				3,434
Total investments	$	73,160			$	73,838
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	1,322			$	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)

	December 31,		December 31,
	2013		2012
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,315	$	2,222
Obligations of states and political subdivisions:
Pre-refunded	9,518		9,025
All other	26,044		29,656
Total	35,562		38,681
Debt securities issued by foreign governments	2,577		2,257
Mortgage-backed securities - principally obligations of U.S. Government agencies	2,424		2,997
Corporates (including redeemable preferreds)	21,078		19,236
Total fixed maturities	$	63,956	$	65,393

Fixed Maturities

Quality Characteristics (1)

	December 31, 2013
	Amount		% of Total
Quality Ratings
Aaa	$	27,209	42.5	%
Aa	19,430		30.4
A	9,331		14.6
Baa	6,054		9.5
Total investment grade	62,024		97.0
Ba	1,025		1.6
B	428		0.7
Caa and lower	479		0.7
Total below investment grade	1,932		3.0
Total fixed maturities	$	63,956	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	3.7

(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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Gross investment income
Fixed maturities	$	620		$	611		$	604		$	604		$	586		$	574		$	571		$	579		$	2,439		$	2,310
Short-term securities	2			3			3			2			2			2			3			4			10			11
Other	128			133			124			91			92			120			91			129			476			432
	750			747			731			697			680			696			665			712			2,925			2,753
Investment expenses	10			9			9			8			10			9			8			10			36			37
Net investment income, pre-tax	740			738			722			689			670			687			657			702			2,889			2,716
Income taxes	147			149			144			133			128			136			126			140			573			530
Net investment income, after-tax	$	593		$	589		$	578		$	556		$	542		$	551		$	531		$	562		$	2,316		$	2,186
Effective tax rate	19.9		%	20.2		%	20.0		%	19.2		%	19.2		%	19.7		%	19.1		%	20.0		%	19.8		%	19.5		%
Average invested assets (1)	$	69,494		$	69,623		$	69,813		$	70,419		$	69,996		$	69,701		$	70,419		$	72,165		$	69,863		$	70,697
Average yield pre-tax (1)	4.3		%	4.2		%	4.1		%	3.9		%	3.8		%	3.9		%	3.7		%	3.9		%	4.1		%	3.8		%
Average yield after-tax	3.4		%	3.4		%	3.3		%	3.2		%	3.1		%	3.2		%	3.0		%	3.1		%	3.3		%	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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Net realized investment gains (losses)
Fixed maturities	$	8		$	17		$	14		$	14		$	11		$	14		$	5		$	6		$	53		$	36
Equity securities	3			2			—			(1		)	6			4			(1		)	1			4			10
Other (1)	(1		)	(15		)	(16		)	26			(7		)	149			(26		)	4			(6		)	120
Realized investment gains (losses) before tax	10			4			(2		)	39			10			167			(22		)	11			51			166
Related taxes	5			—			1			13			1			58			(3		)	4			19			60
Net realized investment gains (losses)	$	5		$	4		$	(3	)	$	26		$	9		$	109		$	(19	)	$	7		$	32		$	106
Gross investment gains (1)	$	121		$	78		$	78		$	97		$	108		$	352		$	12		$	57		$	374		$	529
Gross investment losses before impairments (1)	(107		)	(70		)	(77		)	(54		)	(93		)	(183		)	(31		)	(41		)	(308		)	(348		)
Net investment gains before impairments	14			8			1			43			15			169			(19		)	16			66			181
Other-than-temporary impairment losses	(4		)	(4		)	(3		)	(4		)	(5		)	(2		)	(3		)	(5		)	(15		)	(15		)
Net realized investment gains (losses) before tax	10			4			(2		)	39			10			167			(22		)	11			51			166
Related taxes	5			—			1			13			1			58			(3		)	4			19			60
Net realized investment gains (losses)	$	5		$	4		$	(3	)	$	26		$	9		$	109		$	(19	)	$	7		$	32		$	106
	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,			December 31,
	2012			2012			2012			2012			2013			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		$	1,760
Equity securities & other	181			176			209			197			274			250			252			270
Unrealized investment gains before tax	4,347			4,568			5,079			4,761			4,395			2,599			2,394			2,030
Related taxes	1,509			1,588			1,764			1,658			1,531			907			835			708
Balance, end of period	$	2,838		$	2,980		$	3,315		$	3,103		$	2,864		$	1,692		$	1,559		$	1,322

(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	$	—	$	—	$	125	$	343
Gross investment Treasury future losses	$	41	$	38	$	35	$	25	$	75	$	153	$	—	$	—	$	139	$	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)

	December 31,			December 31,
	2013			2012
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	4,707		$	5,256
Allowance for uncollectible reinsurance	(239		)	(258		)
Net reinsurance recoverables (i)	4,468			4,998
Mandatory pools and associations (ii)	1,897			2,549
Structured settlements (iii)	3,348			3,165
Total reinsurance recoverables	$	9,713		$	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	December 31,		December 31,
Reinsurer	Predominant Reinsurer	2013		2012
Munich Re Group	A+ second highest of 16 ratings	$	525	$	550
Swiss Re Group	A+ second highest of 16 ratings	491		517
Alleghany Group	A third highest of 16 ratings	254		302
XL Capital Group	A third highest of 16 ratings	242		266
NKSJ Holdings Inc Group	A+ second highest of 16 ratings	242		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 December 31, 2013, after deducting mandatory pools and associations and structured settlement balances, $3.6 billion, or 80%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% were rated A- or better.  The remaining 20% of net recoverables from reinsurers were comprised of the following:  6% 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 December 31, 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	December 31,		December 31,
Group	Predominant Insurer	2013		2012
Fidelity and Guaranty Life	B++ fifth highest of 16 ratings	$	972	$	981
Metlife	A+ second highest of 16 ratings	456		474
Genworth Financial Group	A third highest of 16 ratings	429		437
John Hancock Group (1)	A+ second highest of 16 ratings	255		190
Symetra Financial Corporation	A third highest of 16 ratings	248		256

(1) December 31, 2013 includes $71 million from Dominion acquisition.

28

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2012			2012			2012			2012			2013			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		$	31,029		$	31,131		$	31,120
Incurred	1,663			2,057			1,860			2,147			1,668			1,970			1,920			1,805			7,727			7,363
Paid	(1,792		)	(1,932		)	(1,937		)	(2,080		)	(1,860		)	(1,892		)	(1,901		)	(1,941		)	(7,741		)	(7,594		)
Foreign exchange and other	4			(5		)	2			2			1			(1		)	4			(1		)	3			3
End of period	$	31,006		$	31,126		$	31,051		$	31,120		$	30,929		$	31,006		$	31,029		$	30,892		$	31,120		$	30,892
Financial, Professional & International Insurance
Beginning of period	$	6,019		$	6,045		$	5,992		$	5,894		$	5,849		$	5,757		$	5,673		$	5,714		$	6,019		$	5,849
Incurred	341			299			307			359			300			330			329			439			1,306			1,398
Paid	(361		)	(307		)	(453		)	(411		)	(316		)	(399		)	(361		)	(504		)	(1,532		)	(1,580		)
Acquired reserves, foreign exchange and other (1)	46			(45		)	48			7			(76		)	(15		)	73			1,771			56			1,753
End of period	$	6,045		$	5,992		$	5,894		$	5,849		$	5,757		$	5,673		$	5,714		$	7,420		$	5,849		$	7,420
Personal Insurance
Beginning of period	$	3,749		$	3,740		$	3,807		$	3,583		$	3,687		$	3,529		$	3,466		$	3,294		$	3,749		$	3,687
Incurred	1,314			1,435			1,143			1,613			1,102			1,190			1,001			1,038			5,505			4,331
Paid	(1,323		)	(1,368		)	(1,367		)	(1,509		)	(1,260		)	(1,253		)	(1,173		)	(1,076		)	(5,567		)	(4,762		)
End of period	$	3,740		$	3,807		$	3,583		$	3,687		$	3,529		$	3,466		$	3,294		$	3,256		$	3,687		$	3,256
Total
Beginning of period	$	40,899		$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,037		$	40,899		$	40,656
Incurred	3,318			3,791			3,310			4,119			3,070			3,490			3,250			3,282			14,538			13,092
Paid	(3,476		)	(3,607		)	(3,757		)	(4,000		)	(3,436		)	(3,544		)	(3,435		)	(3,521		)	(14,840		)	(13,936		)
Acquired reserves, foreign exchange and other (1)	50			(50		)	50			9			(75		)	(16		)	77			1,770			59			1,756
End of period	$	40,791		$	40,925		$	40,528		$	40,656		$	40,215		$	40,145		$	40,037		$	41,568		$	40,656		$	41,568
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		)	(121		)	(724		)	(580		)
Total Business Insurance (2)	(248		)	(58		)	(41		)	(120		)	(113		)	(55		)	(36		)	(121		)	(467		)	(325		)
Financial, Professional & International Insurance
Asbestos	—			—			8			—			—			—			—			—			8			—
All other	(46		)	(96		)	(95		)	(69		)	(58		)	(72		)	(74		)	(102		)	(306		)	(306		)
Total Financial, Professional & International Insurance	(46		)	(96		)	(87		)	(69		)	(58		)	(72		)	(74		)	(102		)	(298		)	(306		)
Personal Insurance	(10		)	(67		)	(65		)	(33		)	(60		)	(65		)	(48		)	(36		)	(175		)	(209		)
Total	$	(304	)	$	(221	)	$	(193	)	$	(222	)	$	(231	)	$	(192	)	$	(158	)	$	(259	)	$	(940	)	$	(840	)

(1)  Includes Dominion acquired reserves in 4Q 2013.

(2)  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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Asbestos reserves
Beginning reserves:
Gross	$	2,780		$	2,724		$	2,660		$	2,771		$	2,689		$	2,626		$	2,566		$	2,686		$	2,780		$	2,689
Ceded	(341		)	(340		)	(335		)	(324		)	(311		)	(292		)	(288		)	(263		)	(341		)	(311		)
Net	2,439			2,384			2,325			2,447			2,378			2,334			2,278			2,423			2,439			2,378
Incurred losses and loss expenses:
Gross	—			—			171			—			—			—			190			—			171			190
Ceded	—			—			4			—			—			—			—			—			4			—
Losses paid:
Gross	56			64			60			82			62			60			71			80			262			273
Ceded	(1		)	(5		)	(7		)	(13		)	(19		)	(4		)	(25		)	(7		)	(26		)	(55		)
Foreign exchange and other:
Gross	—			—			—			—			(1		)	—			1			—			—			—
Ceded	—			—			—			—			—			—			—			—			—			—
Ending reserves:
Gross	2,724			2,660			2,771			2,689			2,626			2,566			2,686			2,606			2,689			2,606
Ceded	(340		)	(335		)	(324		)	(311		)	(292		)	(288		)	(263		)	(256		)	(311		)	(256		)
Net	$	2,384		$	2,325		$	2,447		$	2,378		$	2,334		$	2,278		$	2,423		$	2,350		$	2,378		$	2,350
Environmental reserves
Beginning reserves:
Gross	$	346		$	321		$	396		$	380		$	352		$	340		$	399		$	371		$	346		$	352
Ceded	(5		)	(4		)	(9		)	(7		)	(5		)	(4		)	(11		)	(12		)	(5		)	(5		)
Net	341			317			387			373			347			336			388			359			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			34			93			87
Ceded	(1		)	(1		)	(5		)	(2		)	(1		)	—			1			(3		)	(9		)	(3		)
Acquired reserves, foreign exchange and other: (1)
Gross	—			—			—			—			—			—			—			18			—			18
Ceded	—			—			—			—			—			—			—			(2		)	—			(2		)
Ending reserves:
Gross	321			396			380			352			340			399			371			355			352			355
Ceded	(4		)	(9		)	(7		)	(5		)	(4		)	(11		)	(12		)	(11		)	(5		)	(11		)
Net	$	317		$	387		$	373		$	347		$	336		$	388		$	359		$	344		$	347		$	344

(1)  Includes Dominion acquired reserves in 4Q 2013.

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

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

	December 31,			December 31,
	2013			2012
Debt
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)	23,474			22,302
Total capital (excluding net unrealized investment gains, net of tax)	$	29,820		$	28,652
Total debt to capital (excluding net unrealized investment gains, net of tax)	21.3		%	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)

	December 31,			December 31,
	2013 (1)			2012
Statutory basis surplus	$	21,123		$	20,048
GAAP adjustments
Goodwill and intangible assets	3,816			3,573
Investments	2,541			5,351
Noninsurance companies	(4,453		)	(4,302		)
Deferred acquisition costs	1,804			1,792
Deferred federal income tax	(1,259		)	(2,220		)
Current federal income tax	(32		)	(9		)
Reinsurance recoverables	160			201
Furniture, equipment & software	708			664
Employee benefits	2			(13		)
Agents balances	135			151
Other	251			169
Total GAAP adjustments	3,673			5,357
GAAP shareholders’ equity	$	24,796		$	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			4Q			4Q			4Q
	2012			2012			2012			2012			2013			2013			2013			2013			2012			2013
Cash flows from operating activities
Net income	$	806		$	499		$	864		$	304		$	896		$	925		$	864		$	988		$	2,473		$	3,673
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(10		)	(4		)	2			(39		)	(10		)	(167		)	22			(11		)	(51		)	(166		)
Depreciation and amortization	216			196			206			209			219			216			207			225			827			867
Deferred federal income tax expense	119			6			96			2			131			20			(19		)	35			223			167
Amortization of deferred acquisition costs	971			976			986			977			948			950			953			970			3,910			3,821
Equity in income from other investments	(114		)	(114		)	(43		)	(71		)	(74		)	(101		)	(72		)	(110		)	(342		)	(357		)
Premiums receivable	(151		)	(317		)	161			169			(155		)	(248		)	161			296			(138		)	54
Reinsurance recoverables	495			257			174			(473		)	390			357			355			182			453			1,284
Deferred acquisition costs	(984		)	(1,016		)	(1,005		)	(909		)	(954		)	(958		)	(950		)	(897		)	(3,914		)	(3,759		)
Claims and claim adjustment expense reserves	(504		)	(95		)	(597		)	656			(751		)	(377		)	(556		)	(373		)	(540		)	(2,057		)
Unearned premium reserves	117			229			160			(383		)	187			158			138			(456		)	123			27
Other	(147		)	(166		)	497			22			(297		)	(53		)	534			78			206			262
Net cash provided by operating activities	814			451			1,501			464			530			722			1,637			927			3,230			3,816
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			1,987			8,369			7,904
Proceeds from sales of investments:
Fixed maturities	223			319			182			363			234			338			588			475			1,087			1,635
Equity securities	15			7			9			6			36			14			7			29			37			86
Real estate investments	—			3			—			50			—			—			—			18			53			18
Other investments	203			183			130			319			174			207			164			217			835			762
Purchases of investments:
Fixed maturities	(2,604		)	(2,596		)	(2,477		)	(2,770		)	(2,339		)	(2,149		)	(2,004		)	(2,975		)	(10,447		)	(9,467		)
Equity securities	(10		)	(23		)	(6		)	(9		)	(13		)	(27		)	(10		)	(7		)	(48		)	(57		)
Real estate investments	(5		)	(53		)	(4		)	(33		)	(6		)	(53		)	(6		)	(42		)	(95		)	(107		)
Other investments	(114		)	(107		)	(71		)	(242		)	(95		)	(114		)	(103		)	(134		)	(534		)	(446		)
Net sales (purchases) of short-term securities	226			141			(408		)	158			109			(28		)	(1,974		)	2,004			117			111
Securities transactions in course of settlement	248			(171		)	(24		)	(76		)	180			(120		)	220			(259		)	(23		)	21
Acquisition, net of cash acquired	—			—			—			—			—			—			—			(997		)	—			(997		)
Other	(92		)	(41		)	(96		)	(94		)	(100		)	(57		)	(97		)	(119		)	(323		)	(373		)
Net cash provided by (used in) investing activities	(295		)	214			(1,077		)	186			303			(211		)	(1,199		)	197			(972		)	(910		)

33

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

																									YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			4Q			4Q			4Q
	2012			2012			2012			2012			2013			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		)	(180		)	(694		)	(729		)
Issuance of common stock - employee share options	77			93			77			48			98			41			19			48			295			206
Treasury stock acquired - share repurchase authorization	(354		)	(353		)	(349		)	(418		)	(300		)	(300		)	(800		)	(1,000		)	(1,474		)	(2,400		)
Treasury stock acquired - net employee share-based compensation	(52		)	—			—			(1		)	(58		)	(1		)	(1		)	(1		)	(53		)	(61		)
Excess tax benefits from share-based payment arrangements	12			7			13			6			21			8			14			8			38			51
Net cash used in financing activities	(478		)	(691		)	(437		)	(540		)	(914		)	(443		)	(457		)	(1,125		)	(2,146		)	(2,939		)
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		)	(1		)	116			(36		)
Cash at beginning of period	214			258			230			220			330			243			308			295			214			330
Cash at end of period	$	258		$	230		$	220		$	330		$	243		$	308		$	295		$	294		$	330		$	294
Income taxes paid (received)	$	20		$	276		$	14		$	(122	)	$	27		$	468		$	229		$	333		$	188		$	1,057
Interest paid	$	35		$	156		$	35		$	149		$	35		$	149		$	22		$	149		$	375		$	355

34

The Travelers Companies, Inc. Financial Supplement - Fourth 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. The ratio of losses and loss expenses incurred to premiums earned and other underwriting expenses to net premiums written are defined and used in connection with statutory accounting.  The loss and LAE and the underwriting expense ratio are the GAAP equivalents to the statutory ratios, and they are calculated on the same basis as the statutory ratios.  In the opinion of the Company’s management, the loss and LAE ratio, the underwriting expense ratio and the combined ratio are important indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business, and overall profitability, respectively.

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 Canada, the United Kingdom 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