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):  April 22, 2014

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

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

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

(917) 778-6000

(Registrant’s telephone number, including area code)

Not Applicable

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

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

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

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

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

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

Item 2.02.  Results of Operations and Financial Condition.

On April 22, 2014, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended March 31, 2014, and the availability of the Company’s first quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

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

Item 9.01.  Financial Statements and Exhibits.

(d)Exhibits.

Exhibit No.	Description
99.1	Press Release, dated April 22, 2014, reporting results of operations (This exhibit is furnished and not filed.)
99.2	First Quarter 2014 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

2

SIGNATURES

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

Date: April 22, 2014	THE TRAVELERS COMPANIES, INC.
	By:	/s/ Matthew S. Furman
		Name: Matthew S. Furman
		Title: Senior Vice President

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated April 22, 2014, reporting results of operations (This exhibit is furnished and not filed.)
99.2	First Quarter 2014 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

4

EX-99.1

Exhibit 99.1

NYSE: TRV

Travelers Reports Record Quarterly Net and Operating Income per Diluted Share of $2.95, Up 27% and 28%, Respectively, from Prior Year Quarter

Return on Equity and Operating Return on Equity of 16.8% and 17.8%, Respectively

Board of Directors Approves 10% Increase in the Company’s Regular Quarterly Dividend per Share to $0.55

·Net and operating income of $1.052 billion, up 17% and 19%, respectively, from prior year quarter.

·Increase primarily attributable to higher underlying underwriting gains and higher investment income.

·Written rate gains exceeded expected loss cost trends in all segments.

·Record quarterly net written premiums of $5.9 billion, up 5% from prior year quarter primarily reflecting the impact of Dominion of Canada, acquired in November 2013.

·Total capital returned to shareholders of $882 million in the quarter, including $705 million in share repurchases.

·Increases in book value per share of 4% to $73.06 and adjusted book value per share of 3% to $68.25 from year-end 2013.

New York, April 22, 2014 — The Travelers Companies, Inc. today reported net and operating income of $1.052 billion, or $2.95 per diluted share, for the quarter ended March 31, 2014, compared to net income of $896 million, or $2.33 per diluted share, and operating income of $887 million, or $2.31 per diluted share in the prior year quarter. The increases in net and operating income compared to the prior year quarter primarily resulted from higher underlying underwriting gains (i.e., excluding prior year reserve development and catastrophe losses), higher net investment income and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. Underlying underwriting gains in the current quarter included a $49 million after-tax ($76 million pre-tax) benefit resulting from a reduction in the estimated liability for state assessments to be paid by the company related to workers’ compensation premiums.

Consolidated Highlights

($ in millions, except for per share amounts, and after-tax,	Three Months Ended March 31,
except for premiums & revenues)	2014			2013			Change
Net written premiums	$	5,873		$	5,597		5	%
Total revenues	$	6,708		$	6,328		6
Operating income	$	1,052		$	887		19
per diluted share	$	2.95		$	2.31		28
Net income	$	1,052		$	896		17
per diluted share	$	2.95		$	2.33		27
Diluted weighted average shares outstanding	354.6			381.9			(7	)
GAAP combined ratio	85.7		%	88.5		%	(2.8	)pts
Underlying GAAP combined ratio	88.2		%	90.8		%	(2.6	)pts
Operating return on equity	17.8		%	15.8		%	2.0	pts
Return on equity	16.8		%	14.1		%	2.7	pts

	March 31,		December 31,
	2014		2013		Change
Book value per share	$	73.06	$	70.15	4	%
Adjusted book value per share	$	68.25	$	66.41	3

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

1

“We are very pleased to report $2.95 in net and operating income per diluted share, record quarterly amounts for both of these measures,” commented Jay Fishman, Chairman and Chief Executive Officer. “Operating income of over $1 billion increased 19% from the prior year quarter, resulting in an operating return on equity of 17.8%, our highest quarterly level since 2009.  Underwriting results were excellent, with a combined ratio of 85.7%. Net investment income increased 7% after-tax, benefiting from strong returns in our non-fixed income portfolio. We also returned $882 million in capital to shareholders, including $705 million in share repurchases. The Board of Directors has also announced a 10% increase in our quarterly dividend per share to $0.55. This marks the 10th consecutive year we have increased the quarterly dividend per share, and this increase brings the compound annual growth rate over this time period to 9.6%.

“Results in each of our business segments were very strong this quarter. In Business Insurance, profitability improved despite the impact of severe winter weather as underlying underwriting margins continued to improve. We achieved written rate gains in excess of loss trends while increasing retention from already strong levels. Importantly, the written rate gains we achieved this quarter continued to be consistent with our expectations and were the result of our proactive, account by account, class by class pricing actions.  In Financial, Professional & International Insurance, operating income growth of 20% and net written premium growth of 47% were the result of the Dominion acquisition as well as strong performance in both our management liability and surety businesses.  Personal Insurance also performed very well as underlying underwriting margins expanded in both Auto and Homeowners. Our new auto product, Quantum 2.0, has now been implemented in 28 states and the District of Columbia and is being well received by both customers and agents, as evidenced by the meaningful increase in new business volumes we have experienced in those states where the product has been available for several months.

“Our performance this quarter is a very encouraging start to the year. Our very deep agent, broker and customer relationships, highly segmented pricing strategies and expense discipline continued to deliver strong and improving underwriting results.  These underwriting results, along with our proven investment philosophy and active capital management strategy, leave us well positioned to deliver on our goal of producing a mid-teens operating return on equity over time.”

2

Consolidated Results

	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2014			2013			Change
Underwriting gains:	$	791		$	602		$	189
Underwriting gains includes:
Net favorable prior year reserve development	294			231			63
Catastrophes, net of reinsurance	(149		)	(99		)	(50		)
Net investment income	736			670			66
Other, including interest expense	(58		)	(62		)	4
Operating income before income taxes	1,469			1,210			259
Income tax expense	417			323			94
Operating income	1,052			887			165
Net realized investment gains after income taxes	—			9			(9		)
Net Income	$	1,052		$	896		$	156
GAAP combined ratio	85.7		%	88.5		%	(2.8		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(5.1		)pts	(4.1		)pts	(1.0		)pts
Catastrophes, net of reinsurance	2.6		pts	1.8		pts	0.8		pts
Underlying GAAP combined ratio	88.2		%	90.8		%	(2.6		)pts
Net written premiums
Business Insurance	$	3,304		$	3,260		1		%
Financial, Professional & International Insurance	950			647			47
Personal Insurance	1,619			1,690			(4		)
Total	$	5,873		$	5,597		5		%

First Quarter 2014 Results

(All comparisons vs. first quarter 2013, unless noted otherwise)

Net and operating income of $1.052 billion after-tax increased 17% and 19%, respectively, primarily reflecting improved underwriting results driven by higher underlying underwriting gains, higher net favorable prior year reserve development, and higher net investment income. These improvements were partially offset by higher catastrophe losses. The underlying underwriting gains in the current quarter included lower general and administrative expenses due to a $49 million after-tax ($76 million pre-tax) benefit resulting from a reduction in the estimated liability for state assessments to be paid by the company related to workers’ compensation premiums.

Underwriting results

·The GAAP combined ratio improved 2.8 points to 85.7% due to higher underlying underwriting margins (2.6 points) and higher net favorable prior year reserve development (1.0 points), partially offset by higher catastrophe losses (0.8 points).

·Net favorable prior year reserve development occurred in all segments. Catastrophe losses primarily resulted from winter storms in the United States.

·The underlying GAAP combined ratio improved 2.6 points to 88.2% resulting from lower expense ratios in each segment. The underlying loss ratio was consistent with the prior year quarter as earned rate increases exceeding loss cost trends were offset by higher non-catastrophe weather-related losses.

Net investment income of $582 million after-tax ($736 million pre-tax) increased primarily due to higher private equity and real estate partnership returns, modestly offset by lower reinvestment rates in the fixed income portfolio.

3

Record net written premiums of $5.873 billion increased 5% primarily due to the inclusion of Dominion within Financial, Professional & International Insurance, as well as slightly higher net written premiums in Business Insurance. These increases were partially offset by lower net written premiums in Personal Insurance.

Shareholders’ Equity

Shareholders’ equity of $25.387 billion increased 2% from the end of 2013. Included in shareholders’ equity were after-tax net unrealized investment gains of $1.674 billion, compared to $1.322 billion at the end of the prior year. The company repurchased 8.5 million shares during the first quarter at a total cost of $705 million, including 7.8 million shares at a total cost of $650 million, under its existing share repurchase authorization, leaving $4.109 billion of capacity under that authorization for future share repurchases. Statutory surplus was $21.440 billion, and the ratio of debt-to-capital (excluding after-tax net unrealized investment gains) was 21.1%, well within its target range of 15% to 25%.

The Board of Directors declared a regular quarterly dividend of $0.55 per share. This dividend, which is $0.05 higher than the last regular quarterly dividend, is payable June 30, 2014, to shareholders of record as of the close of business June 10, 2014.

Business Insurance Segment Financial Results

	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2014			2013			Change
Underwriting gains:	$	361		$	298		$	63
Underwriting gains includes:
Net favorable prior year reserve development	93			113			(20		)
Catastrophes, net of reinsurance	(80		)	(35		)	(45		)
Net investment income	530			487			43
Other	8			13			(5		)
Operating income before income taxes	899			798			101
Income tax expense	246			208			38
Operating income	$	653		$	590		$	63
GAAP combined ratio	87.7		%	89.4		%	(1.7		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(3.1		)pts	(3.9		)pts	0.8		pts
Catastrophes, net of reinsurance	2.7		pts	1.2		pts	1.5		pts
Underlying GAAP combined ratio	88.1		%	92.1		%	(4.0		)pts
Net written premiums by market
Select Accounts	$	718		$	724		(1		)%
Commercial Accounts	893			908			(2		)
National Accounts	300			277			8
Industry-Focused Underwriting	732			699			5
Target Risk Underwriting	454			448			1
Specialized Distribution	207			204			1
Total	$	3,304		$	3,260		1		%

First Quarter 2014 Results

(All comparisons vs. first quarter 2013, unless noted otherwise)

Operating income of $653 million after-tax increased $63 million or 11%, primarily reflecting higher underlying underwriting gains and higher net investment income. These improvements were partially offset by lower net favorable prior year reserve development and higher catastrophe losses.  The underlying underwriting gains in the current quarter

4

included lower general and administrative expenses due to a $49 million after-tax ($76 million pre-tax) benefit resulting from a reduction in the estimated liability for state assessments to be paid by the company related to workers’ compensation premiums.

Underwriting results

·The GAAP combined ratio improved 1.7 points to 87.7% due to higher underlying underwriting margins (4.0 points), partially offset by higher catastrophes (1.5 points) and lower net favorable prior year reserve development (0.8 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 2011 and prior, as well as the property product line for accident years 2010 through 2013. These improvements were partially offset by higher than expected loss experience for liability coverages in the commercial multi-peril product line for accident years 2010 through 2013.

·The underlying GAAP combined ratio improved 4.0 points to 88.1%, mostly resulting from a lower expense ratio that included the impact of the reduction in the estimated liability for assessments to be paid by the company related to workers’ compensation premiums. The underlying loss ratio improved slightly as earned rate increases exceeding loss cost trends were mostly offset by higher non-catastrophe weather-related losses.

Record quarterly Business Insurance net written premiums of $3.304 billion increased 1%, primarily driven by continued meaningful improvement in renewal rate. Net written premiums also benefited from positive exposure change at renewal.  Retention rates remained strong and, consistent with the company’s pricing strategy, improved from recent quarters, while new business volumes decreased modestly from the prior year quarter.

Financial, Professional & International Insurance Segment Financial Results

	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2014			2013			Change
Underwriting gains	$	162		$	128		$	34
Underwriting gains includes:
Net favorable prior year reserve development	69			58			11
Catastrophes, net of reinsurance	4			—			4
Net investment income	106			92			14
Other	8			5			3
Operating income before income taxes	276			225			51
Income tax expense	81			62			19
Operating income	$	195		$	163		$	32
GAAP combined ratio	83.8		%	82.3		%	1.5		pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(6.6		)pts	(7.8		)pts	1.2		pts
Catastrophes, net of reinsurance	0.4		pts	—		pts	0.4		pts
Underlying GAAP combined ratio	90.0		%	90.1		%	(0.1		)pts
Net written premiums by market
Bond & Financial Products	$	482		$	395		22		%
International	468			252			86
Total	$	950		$	647		47		%

5

First Quarter 2014 Results

(All comparisons vs. first quarter 2013, unless noted otherwise)

Operating income of $195 million after-tax increased $32 million or 20% as a result of improved underwriting results, driven by higher underlying underwriting gains in Bond & Financial Products, the inclusion of Dominion and higher net favorable prior year reserve development. Operating income in the current quarter also benefited from higher net investment income driven by the inclusion of Dominion.

Underwriting results

·The GAAP combined ratio increased 1.5 points to 83.8%. While the dollar amount of net favorable prior year reserve development was higher by $11 million pre-tax, the impact on the GAAP combined ratio was less favorable than the prior year quarter by 1.2 points due to an increase in earned premiums primarily due to the inclusion of Dominion.

·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 2007 through 2010.

·The underlying GAAP combined ratio improved slightly from 90.1% to 90.0%. An improvement in the underlying loss ratio from earned rate increases exceeding loss cost trends and lower reinsurance costs in Bond & Financial Products was more than offset by the impact of Dominion on the underlying loss ratio. This higher underlying loss ratio was more than offset by a reduction in the expense ratio reflecting the inclusion of Dominion.

Financial, Professional & International Insurance net written premiums of $950 million increased 47% as a result of higher net written premiums in both Bond & Financial Products and International. Bond & Financial Products net written premiums of $482 million increased 22% primarily due to an elimination of a reinsurance program, continued strong retention rates and renewal rate increases in management liability, as well as higher construction surety volume. International net written premiums of $468 million increased 86% due to the inclusion of Dominion.

6

Personal Insurance Segment Financial Results

	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2014			2013			Change
Underwriting gains:	$	268		$	176		$	92
Underwriting gains includes:
Net favorable prior year reserve development	132			60			72
Catastrophes, net of reinsurance	(65		)	(64		)	(1		)
Net investment income	100			91			9
Other	26			18			8
Operating income before income taxes	394			285			109
Income tax expense	126			88			38
Operating income	$	268		$	197		$	71
GAAP combined ratio	83.6		%	89.4		%	(5.8		)pts
Impact on GAAP combined ratio
Net favorable prior year reserve development	(7.5		)pts	(3.3		)pts	(4.2		)pts
Catastrophes, net of reinsurance	3.7		pts	3.5		pts	0.2		pts
Underlying GAAP combined ratio	87.4		%	89.2		%	(1.8		)pts
Net written premiums
Agency Automobile(1)	$	788		$	831		(5		)%
Agency Homeowners & Other(1)	788			820			(4		)
Direct to Consumer	43			39			10
Total	$	1,619		$	1,690		(4		)%

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

First Quarter 2014 Results

(All comparisons vs. first quarter 2013, unless noted otherwise)

Operating income of $268 million after-tax increased $71 million or 36%, primarily reflecting improved underwriting results driven by higher net favorable prior year development and higher underlying underwriting gains, as well as higher net investment income.

Underwriting results

·The GAAP combined ratio improved 5.8 points to 83.6% primarily due to higher net favorable prior year reserve development (4.2 points) and higher underlying underwriting margins (1.8 points).

·Net favorable prior year reserve development primarily resulted from better than expected loss experience in Homeowners & Other for non-catastrophe weather-related losses for accident year 2013 and catastrophe losses for accident years 2011 through 2013.

·The underlying GAAP combined ratio improved 1.8 points to 87.4% primarily resulting from a decrease in the expense ratio and earned rate increases exceeding loss cost trends in both Automobile and Homeowners & Other, partially offset by higher non-catastrophe weather-related losses.

Personal Insurance net written premiums of $1.619 billion decreased 4%. Renewal premium change remained positive, but lower than the prior year quarter. Retention rates continued to be strong and generally consistent with recent quarters.  New business was meaningfully higher than the prior year quarter due to the company’s new auto product, Quantum 2.0, which was introduced in 28 states and the District of Columbia by the end of the first quarter.

7

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, April 22, 2014. Investors can access the call via webcast at http://investor.travelers.com or by dialing 1-800-745-9476 within the U.S. and 1-212-231-2918 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 21711670 for both the U.S. and international calls).

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. The company’s diverse business lines offer its customers a wide range of coverage sold primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has 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 as a corporate member of Lloyd’s. The segment includes the Bond & Financial Products groups as well as the International group. The International group includes The Dominion of Canada General Insurance Company, which the company acquired in November 2013 and which writes personal lines and small commercial insurance business in Canada. In addition, the company owns 49.5% of the common stock of J. Malucelli Participações em Seguros e Resseguros S.A., its joint venture in Brazil.

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-

8

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 outlook, 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;

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

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

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

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

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

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

·if actual claims exceed the company’s 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 state or federal regulation or enforcement practices could impose significant burdens on the company and otherwise adversely impact the company’s results;

9

·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, such as Quantum 2.0, or expand in targeted markets may not be successful and may create enhanced risks;

·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 United States, including in the European Union, could adversely impact the company’s results of operations and limit its growth;

·loss of or significant restriction on the use of particular types of underwriting criteria, such as credit scoring, in the pricing and underwriting of the company’s products could reduce the company’s future profitability;

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

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

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

·intellectual property is important to the company’s business, and the company may be unable to protect and enforce its own intellectual property or the company may be subject to claims for infringing on the intellectual property of others;

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

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

·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.

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).

*****

10

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.

Reconciliation of Operating Income less Preferred Dividends to Net Income

	Three Months Ended
	March 31,
($ in millions, pre-tax)	2014		2013
Operating income	$	1,469	$	1,210
Net realized investment gains	1		10
Net income	$	1,470	$	1,220

	Three Months Ended
	March 31,
($ in millions, after-tax)	2014		2013
Operating income	$	1,052	$	887
Net realized investment gains	—		9
Net income	$	1,052	$	896

11

	Twelve Months Ended December 31,
($ in millions, after-tax)	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
Preferred dividends	—		—		1		3		3		4			4		5		6
Operating income	3,567		2,441		1,390		3,043		3,600		3,195			4,500		4,200		2,026
Net realized investment gains (losses)	106		32		36		173		22		(271		)	101		8		35
Income from continuing operations	3,673		2,473		1,426		3,216		3,622		2,924			4,601		4,208		2,061
Discontinued operations	—		—		—		—		—		—			—		—		(439		)
Net income	$	3,673	$	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
	March 31,
	2014		2013
Basic earnings per share
Operating income	$	2.98	$	2.33
Net realized investment gains	—		0.03
Net income	$	2.98	$	2.36
Diluted earnings per share
Operating income	$	2.95	$	2.31
Net realized investment gains	—		0.02
Net income	$	2.95	$	2.33

Reconciliation of Operating Income by Segment to Total Operating Income

	Three Months Ended
	March 31,
($ in millions, after-tax)	2014			2013
Business Insurance	$	653		$	590
Financial, Professional & International Insurance	195			163
Personal Insurance	268			197
Total segment operating income	1,116			950
Interest Expense and Other	(64		)	(63		)
Total operating income	$	1,052		$	887

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 and discontinued operations.

12

Reconciliation of Adjusted Shareholders’ Equity to Shareholders’ Equity

	As of March 31,
($ in millions)	2014		2013
Adjusted shareholders’ equity	$	23,713	$	22,723
Net unrealized investment gains, net of tax	1,674		2,864
Net realized investment gains, net of tax	—		9
Shareholders’ equity	$	25,387	$	25,596

	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
	March 31,
($ in millions, after-tax)	2014			2013
Annualized operating income	$	4,207		$	3,550
Adjusted average shareholders’ equity	23,594			22,512
Operating return on equity	17.8		%	15.8		%
Annualized net income	$	4,209		$	3,586
Average shareholders’ equity	25,092			25,500
Return on equity	16.8		%	14.1		%

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.

13

Calculation of Average Annual Operating Return on Equity from January 1, 2005 through March 31, 2014

	Three Months Ended
	March 31,						Twelve Months Ended December 31,
($ in millions)	2014			2013			2013			2012			2011			2010			2009			2008			2007			2006			2005
Operating income, less preferred dividends	$	1,052		$	887		$	3,567		$	2,441		$	1,389		$	3,040		$	3,597		$	3,191		$	4,496		$	4,195		$	2,020
Annualized operating income	4,207			3,550
Adjusted average shareholders’ equity	23,594			22,512			23,004			22,158			22,806			24,285			25,777			25,668			25,350			23,381			21,118
Operating return on equity	17.8		%	15.8		%	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 Mar. 31, 2014							13.2		%

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

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

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 (Excluding the Impact of Catastrophes and Net Favorable Prior Year Loss Reserve Development) to Net Income

	Three Months Ended
	March 31,
($ in millions, after-tax except as noted)	2014			2013
Pre-tax underwriting gain excluding the impact of catastrophes and net favorable prior year loss reserve development	$	646		$	470
Pre-tax impact of catastrophes	(149		)	(99		)
Pre-tax impact of net favorable prior year loss reserve development	294			231
Pre-tax underwriting gain	791			602
Income tax expense on underwriting results	284			217
Underwriting gain	507			385
Net investment income	582			542
Other, including interest expense	(37		)	(40		)
Operating income	1,052			887
Net realized investment gains	—			9
Net income	$	1,052		$	896

GAAP COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING GAAP COMBINED RATIO

Combined ratio (SAP and GAAP)  For SAP, it is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators.  The GAAP combined ratio is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premium and the GAAP underwriting expense ratio is based on net earned premiums.  The loss and LAE ratio for SAP is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The GAAP ratio is calculated in the same manner as the SAP ratio.  The underwriting expense ratio for SAP is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees, to net written premiums as defined in the statutory financial statements required by insurance regulators. For GAAP, it is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums.

The GAAP combined ratio, GAAP loss and LAE ratio, and GAAP underwriting expense ratio are used as indicators of the company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

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
	March 31,
($ in millions, pre-tax)	2014			2013
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$	3,315		$	3,153
Less:
Policyholder dividends	11			10
Allocated fee income	43			42
Loss ratio numerator	$	3,261		$	3,101
Underwriting expense ratio
Amortization of deferred acquisition costs	$	950		$	948
General and administrative expenses (G&A)	881			915
Less:
G&A included in Interest Expense and Other	7			4
Allocated fee income	64			55
Billing and policy fees and other	30			24
Expense ratio numerator	$	1,730		$	1,780
Earned premium	$	5,823		$	5,517
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	56.0		%	56.2		%
Underwriting expense ratio	29.7		%	32.3		%
Combined ratio	85.7		%	88.5		%

(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.

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

	Three Months Ended
	March 31,
($ in millions)	2014		2013		Change
Net written premiums - holding foreign exchange rates constant	$	467	$	252	85	%
Impact of changes in foreign exchange rates	1
Net written premiums	$	468	$	252	86	%

16

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

	Three Months Ended
	March 31,
($ in millions)	2014		2013		Change
Net written premiums - holding foreign exchange rates constant	$	949	$	647	47	%
Impact of changes in foreign exchange rates	1
Net written premiums	$	950	$	647	47	%

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.

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

	As of
	March 31,			December 31,			March 31,
($ in millions, except per share amounts)	2014			2013			2013
Tangible shareholders’ equity	$	19,804		$	19,543		$	19,046
Goodwill	3,624			3,634			3,365
Other intangible assets	339			351			370
Less: Impact of deferred tax on other intangible assets	(54		)	(54		)	(49		)
Adjusted shareholders’ equity	23,713			23,474			22,732
Net unrealized investment gains, net of tax	1,674			1,322			2,864
Shareholders’ equity	$	25,387		$	24,796		$	25,596
Common shares outstanding	347.5			353.5			376.4
Tangible book value per share	$	57.00		$	55.29		$	50.60
Adjusted book value per share	68.25			66.41			60.39
Book value per share	73.06			70.15			68.00

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.

17

Reconciliation of Total Debt and Equity Excluding Net Unrealized Investment Gain to Total Capitalization

	As of
	March 31,			December 31,			March 31,
($ in millions)	2014			2013			2013
Debt	$	6,347		$	6,346		$	5,851
Shareholders’ equity	25,387			24,796			25,596
Total capitalization	31,734			31,142			31,447
Net unrealized investment gains, net of tax	1,674			1,322			2,864
Total capitalization excluding net unrealized gain on investments, net of tax	$	30,060		$	29,820		$	28,583
Debt-to-capital ratio	20.0		%	20.4		%	18.6		%
Debt-to-capital ratio excluding net unrealized investment gains, net of tax	21.1		%	21.3		%	20.5		%

OTHER DEFINITIONS

Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract. Net written premiums reflect gross written premiums less premiums ceded to reinsurers. These are GAAP measures.

For the Business Insurance and Financial, Professional and International Insurance segments, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes. For the Personal Insurance segment, retention is the ratio of the expected number of renewal policies that will be retained throughout the annual policy period to the number of available renewal base policies. For all of the segments, renewal rate change represents the estimated change in average premium on policies that renew, excluding exposure changes. Exposure is the measure of risk used in the pricing of an insurance product. The change in exposure is the amount of change in premium on policies that renew attributable to the change in portfolio risk. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. New business volume is the amount of written premium related to new policyholders and additional products 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

18

EX-99.2

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - First Quarter 2014

	Page Number
Consolidated Results
Financial Highlights	1
Reconciliation to Net Income and Earnings Per Share	2
Statement of Income	3
Net Income by Major Component and Combined Ratio	4
Operating Income	5
Selected Statistics - Property and Casualty Operations	6
Written and Earned Premiums - Property and Casualty Operations	7
Business Insurance
Operating Income	8
Operating Income by Major Component and Combined Ratio	9
Selected Statistics	10
Net Written Premiums	11
Financial, Professional & International Insurance
Operating Income	12
Operating Income by Major Component and Combined Ratio	13
Selected Statistics	14
Net Written Premiums	15
Personal Insurance
Operating Income	16
Operating Income by Major Component and Combined Ratio	17
Selected Statistics	18
Selected Statistics - Agency Automobile	19
Selected Statistics - Agency Homeowners and Other	20
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 $1.035 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-Q which will be filed with the Securities and Exchange Commission.

Index

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Net income	$	896		$	925		$	864		$	988		$	1,052
Net income per share:
Basic	$	2.36		$	2.44		$	2.33		$	2.73		$	2.98
Diluted	$	2.33		$	2.41		$	2.30		$	2.70		$	2.95
Operating income	$	887		$	816		$	883		$	981		$	1,052
Operating income per share:
Basic	$	2.33		$	2.15		$	2.38		$	2.71		$	2.98
Diluted	$	2.31		$	2.13		$	2.35		$	2.68		$	2.95
Return on equity	14.1		%	14.6		%	13.9		%	15.9		%	16.8		%
Operating return on equity	15.8		%	14.2		%	15.2		%	16.8		%	17.8		%
Total assets, at period end	$	103,897		$	101,900		$	102,685		$	103,812		$	104,134
Total equity, at period end	$	25,596		$	24,890		$	24,811		$	24,796		$	25,387
Book value per share, at period end	$	68.00		$	66.65		$	68.15		$	70.15		$	73.06
Less: Net unrealized investment gains, net of tax	7.61			4.53			4.28			3.74			4.81
Adjusted book value per share, at period end	$	60.39		$	62.12		$	63.87		$	66.41		$	68.25
Weighted average number of common shares outstanding (basic)	377.7			375.9			368.9			359.1			350.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)	381.9			379.9			372.9			363.4			354.6
Common shares outstanding at period end	376.4			373.5			364.1			353.5			347.5
Common stock dividends declared	$	176		$	191		$	185		$	182		$	177
Common stock repurchased:
Under Board of Directors authorization
Shares	3.7			3.6			9.7			11.4			7.8
Cost	$	300		$	300		$	800		$	1,000		$	650
Other
Shares	0.7			—			0.1			—			0.7
Cost	$	58		$	1		$	1		$	1		$	55

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)

	1Q		2Q		3Q			4Q		1Q
	2013		2013		2013			2013		2014
Net income
Operating income	$	887	$	816	$	883		$	981	$	1,052
Net realized investment gains (losses), after-tax	9		109		(19		)	7		—
Net income	$	896	$	925	$	864		$	988	$	1,052
Basic earnings per share
Operating income	$	2.33	$	2.15	$	2.38		$	2.71	$	2.98
Net realized investment gains (losses), after-tax	0.03		0.29		(0.05		)	0.02		—
Net income	$	2.36	$	2.44	$	2.33		$	2.73	$	2.98
Diluted earnings per share
Operating income	$	2.31	$	2.13	$	2.35		$	2.68	$	2.95
Net realized investment gains (losses), after-tax	0.02		0.28		(0.05		)	0.02		—
Net income	$	2.33	$	2.41	$	2.30		$	2.70	$	2.95

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Basic and Diluted
Net income, as reported	$	896		$	925		$	864		$	988		$	1,052
Participating share-based awards - allocated income	(6		)	(7		)	(6		)	(8		)	(7		)
Net income available to common shareholders - basic and diluted	$	890		$	918		$	858		$	980		$	1,045
Common Shares
Basic
Weighted average shares outstanding	377.7			375.9			368.9			359.1			350.9
Diluted
Weighted average shares outstanding	377.7			375.9			368.9			359.1			350.9
Weighted average effects of dilutive securities - stock options and performance shares	4.2			4.0			4.0			4.3			3.7
Diluted weighted average shares outstanding	381.9			379.9			372.9			363.4			354.6

(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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Revenues
Premiums	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823
Net investment income	670			687			657			702			736
Fee income	97			82			107			109			107
Net realized investment gains (losses)	10			167			(22		)	11			1
Other revenues	34			135			44			64			41
Total revenues	6,328			6,674			6,452			6,737			6,708
Claims and expenses
Claims and claim adjustment expenses	3,153			3,530			3,297			3,327			3,315
Amortization of deferred acquisition costs	948			950			953			970			950
General and administrative expenses	915			931			934			977			881
Interest expense	92			86			91			92			92
Total claims and expenses	5,108			5,497			5,275			5,366			5,238
Income before income taxes	1,220			1,177			1,177			1,371			1,470
Income tax expense	324			252			313			383			418
Net income	$	896		$	925		$	864		$	988		$	1,052
Other-than-temporary impairments (OTTI)
Total OTTI gains (losses)	$	—		$	(1	)	$	—		$	(9	)	$	(7	)
OTTI losses recognized in net realized investment gains (losses)	$	(5	)	$	(2	)	$	(3	)	$	(5	)	$	(9	)
OTTI gains (losses) recognized in other comprehensive income	$	5		$	1		$	3		$	(4	)	$	2
Other statistics
Effective tax rate on net investment income	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%
Net investment income (after-tax)	$	542		$	551		$	531		$	562		$	582
Catastrophes, net of reinsurance:
Pre-tax	$	99		$	340		$	99		$	53		$	149
After-tax	$	65		$	221		$	64		$	37		$	97
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	231		$	192		$	158		$	259		$	294
After-tax	$	154		$	125		$	107		$	166		$	190

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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Underwriting gain	$	385		$	235		$	387		$	435		$	507
Net investment income	542			551			531			562			582
Other, including interest expense	(40		)	30			(35		)	(16		)	(37		)
Operating income	887			816			883			981			1,052
Net realized investment gains (losses)	9			109			(19		)	7			—
Net income	$	896		$	925		$	864		$	988		$	1,052
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	56.2		%	62.3		%	57.3		%	56.0		%	56.0		%
Underwriting expense ratio	32.3		%	32.0		%	31.6		%	31.7		%	29.7		%
Combined ratio	88.5		%	94.3		%	88.9		%	87.7		%	85.7		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	87.8		%	93.8		%	88.4		%	87.1		%	85.3		%
Impact of catastrophes on combined ratio	1.8		%	6.1		%	1.7		%	0.9		%	2.6		%
Impact of prior year reserve development on combined ratio	-4.1		%	-3.5		%	-2.8		%	-4.4		%	-5.1		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Billing and policy fees and other	$	24	$	25	$	25	$	28	$	30
Fee income:
Loss and loss adjustment expenses	$	42	$	27	$	44	$	46	$	43
Underwriting expenses	55		55		63		63		64
Total fee income	$	97	$	82	$	107	$	109	$	107

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

4

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Revenues
Premiums	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823
Net investment income	670			687			657			702			736
Fee income	97			82			107			109			107
Other revenues	34			135			44			64			41
Total revenues	6,318			6,507			6,474			6,726			6,707
Claims and expenses
Claims and claim adjustment expenses	3,153			3,530			3,297			3,327			3,315
Amortization of deferred acquisition costs	948			950			953			970			950
General and administrative expenses	915			931			934			977			881
Interest expense	92			86			91			92			92
Total claims and expenses	5,108			5,497			5,275			5,366			5,238
Operating income before income taxes	1,210			1,010			1,199			1,360			1,469
Income tax expense	323			194			316			379			417
Operating income	$	887		$	816		$	883		$	981		$	1,052
Other statistics
Effective tax rate on net investment income	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%
Net investment income (after-tax)	$	542		$	551		$	531		$	562		$	582
Catastrophes, net of reinsurance:
Pre-tax	$	99		$	340		$	99		$	53		$	149
After-tax	$	65		$	221		$	64		$	37		$	97
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	231		$	192		$	158		$	259		$	294
After-tax	$	154		$	125		$	107		$	166		$	190

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)

	1Q			2Q			3Q			4Q		1Q
	2013			2013			2013			2013		2014
Statutory underwriting
Gross written premiums	$	6,188		$	6,247		$	6,310		$	5,912	$	6,401
Net written premiums	$	5,597		$	5,824		$	5,713		$	5,633	$	5,873
Net earned premiums	$	5,517		$	5,603		$	5,666		$	5,851	$	5,823
Losses and loss adjustment expenses	3,070			3,490			3,250			3,282		3,267
Underwriting expenses	1,799			1,808			1,799			1,794		1,783
Statutory underwriting gain	648			305			617			775		773
Policyholder dividends	10			13			7			5		11
Statutory underwriting gain after policyholder dividends	$	638		$	292		$	610		$	770	$	762
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	40,215		$	40,145		$	40,037		$	41,568	$	41,383
Increase (decrease) in reserves	$	(441	)	$	(70	)	$	(108	)	$	1,531	$	(185	)
Statutory basis surplus	$	20,692		$	20,672		$	21,509		$	21,123	$	21,440
Net written premiums/surplus (1)	1.09:1			1.09:1			1.05:1			1.08:1		1.07:1

(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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Written premiums
Gross	$	6,188		$	6,247		$	6,310		$	5,912		$	6,401
Ceded	(591		)	(423		)	(597		)	(279		)	(528		)
Net	$	5,597		$	5,824		$	5,713		$	5,633		$	5,873
Earned premiums
Gross	$	5,985		$	6,091		$	6,163		$	6,369		$	6,295
Ceded	(468		)	(488		)	(497		)	(518		)	(472		)
Net	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823

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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Revenues
Premiums	$	2,942		$	3,018		$	3,046		$	3,078		$	3,016
Net investment income	487			502			479			507			530
Fee income	97			82			106			108			107
Other revenues	13			114			8			23			8
Total revenues	3,539			3,716			3,639			3,716			3,661
Claims and expenses
Claims and claim adjustment expenses	1,749			2,008			1,965			1,854			1,853
Amortization of deferred acquisition costs	475			481			479			478			471
General and administrative expenses	517			511			503			521			438
Total claims and expenses	2,741			3,000			2,947			2,853			2,762
Operating income before income taxes	798			716			692			863			899
Income tax expense	208			137			166			229			246
Operating income	$	590		$	579		$	526		$	634		$	653
Other statistics
Effective tax rate on net investment income	19.2		%	19.8		%	19.2		%	20.1		%	21.1		%
Net investment income (after-tax)	$	394		$	402		$	387		$	406		$	418
Catastrophes, net of reinsurance:
Pre-tax	$	35		$	148		$	61		$	41		$	80
After-tax	$	23		$	96		$	40		$	27		$	52
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	113		$	55		$	36		$	121		$	93
After-tax	$	75		$	36		$	24		$	78		$	60

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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Underwriting gain	$	188		$	102		$	134		$	212		$	230
Net investment income	394			402			387			406			418
Other	8			75			5			16			5
Operating income	$	590		$	579		$	526		$	634		$	653
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	57.7		%	65.3		%	63.0		%	58.6		%	59.8		%
Underwriting expense ratio	31.7		%	30.9		%	30.0		%	30.3		%	27.9		%
Combined ratio	89.4		%	96.2		%	93.0		%	88.9		%	87.7		%
Impact of catastrophes on combined ratio	1.2		%	4.9		%	2.0		%	1.3		%	2.7		%
Impact of prior year reserve development on combined ratio	-3.9		%	-1.8		%	-1.2		%	-3.9		%	-3.1		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Billing and policy fees and other	$	4	$	5	$	4	$	4	$	4
Fee income:
Loss and loss adjustment expenses	$	42	$	27	$	43	$	45	$	43
Underwriting expenses	55		55		63		63		64
Total fee income	$	97	$	82	$	106	$	108	$	107

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)

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Statutory underwriting
Gross written premiums	$	3,626	$	3,344	$	3,483	$	3,124	$	3,668
Net written premiums	$	3,260	$	3,068	$	3,032	$	2,873	$	3,304
Net earned premiums	$	2,942	$	3,018	$	3,046	$	3,078	$	3,016
Losses and loss adjustment expenses	1,668		1,970		1,920		1,805		1,805
Underwriting expenses	969		933		913		888		876
Statutory underwriting gain	305		115		213		385		335
Policyholder dividends	8		11		5		4		8
Statutory underwriting gain after policyholder dividends	$	297	$	104	$	208	$	381	$	327

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)

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Net written premiums by market
Select Accounts	$	724	$	709	$	654	$	637	$	718
Commercial Accounts	908		732		808		749		893
National Accounts	277		242		236		255		300
Industry-Focused Underwriting	699		653		673		620		732
Target Risk Underwriting	448		500		441		410		454
Specialized Distribution	204		232		220		202		207
Total	$	3,260	$	3,068	$	3,032	$	2,873	$	3,304
Net written premiums by product line
Commercial multi-peril	$	828	$	771	$	755	$	729	$	821
Workers’ compensation	1,056		860		885		841		1,076
Commercial automobile	484		476		488		449		490
Commercial property	427		484		424		413		440
General liability	458		469		458		438		469
Other	7		8		22		3		8
Total	$	3,260	$	3,068	$	3,032	$	2,873	$	3,304
National Accounts
Additions to claim volume under administration (1)	$	701	$	523	$	523	$	596	$	727
Written fees	$	104	$	88	$	92	$	81	$	111

(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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Revenues
Premiums	$	735		$	751		$	785		$	958		$	1,045
Net investment income	92			91			88			101			106
Fee income	—			—			1			1			—
Other revenues	5			5			5			7			8
Total revenues	832			847			879			1,067			1,159
Claims and expenses
Claims and claim adjustment expenses	302			332			331			439			483
Amortization of deferred acquisition costs	143			147			155			178			187
General and administrative expenses	162			172			169			202			213
Total claims and expenses	607			651			655			819			883
Operating income before income taxes	225			196			224			248			276
Income tax expense	62			42			64			77			81
Operating income	$	163		$	154		$	160		$	171		$	195
Other statistics
Effective tax rate on net investment income	18.6		%	18.6		%	18.2		%	19.4		%	19.8		%
Net investment income (after-tax)	$	75		$	74		$	72		$	81		$	85
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	46		$	—		$	10		$	4
After-tax	$	—		$	30		$	—		$	9		$	3
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	58		$	72		$	74		$	102		$	69
After-tax	$	40		$	47		$	51		$	66		$	44

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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Underwriting gain	$	85		$	76		$	85		$	85		$	105
Net investment income	75			74			72			81			85
Other	3			4			3			5			5
Operating income	$	163		$	154		$	160		$	171		$	195
GAAP combined ratio (1) (2)
Loss and loss adjustment expense ratio	40.8		%	43.9		%	41.8		%	45.7		%	45.9		%
Underwriting expense ratio	41.5		%	42.4		%	41.4		%	39.3		%	37.9		%
Combined ratio	82.3		%	86.3		%	83.2		%	85.0		%	83.8		%
Impact of catastrophes on combined ratio	0.0		%	6.1		%	0.0		%	1.0		%	0.4		%
Impact of prior year reserve development on combined ratio	-7.8		%	-9.7		%	-9.3		%	-10.7		%	-6.6		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Billing and policy fees and other	$	—	$	—	$	—	$	3	$	4
Fee income:
Loss and loss adjustment expenses	$	—	$	—	$	1	$	1	$	—
Underwriting expenses	—		—		—		—		—
Total fee income	$	—	$	—	$	1	$	1	$	—

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

13

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

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Statutory underwriting
Gross written premiums	$	799	$	906	$	799	$	1,042	$	1,084
Net written premiums	$	647	$	849	$	770	$	1,043	$	950
Net earned premiums	$	735	$	751	$	785	$	958	$	1,045
Losses and loss adjustment expenses	300		330		329		439		482
Underwriting expenses	317		323		313		377		426
Statutory underwriting gain	118		98		143		142		137
Policyholder dividends	2		2		2		1		3
Statutory underwriting gain after policyholder dividends	$	116	$	96	$	141	$	141	$	134

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)

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Net written premiums by market
Bond & Financial Products	$	395	$	531	$	553	$	551	$	482
International	252		318		217		492		468
Total	$	647	$	849	$	770	$	1,043	$	950
Net written premiums by product line
General liability	$	168	$	237	$	249	$	280	$	223
Fidelity & surety	178		253		255		232		211
International	252		318		217		492		468
Other	49		41		49		39		48
Total	$	647	$	849	$	770	$	1,043	$	950

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

15

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Revenues
Premiums	$	1,840		$	1,834		$	1,835		$	1,815		$	1,762
Net investment income	91			94			90			94			100
Other revenues	18			15			34			36			26
Total revenues	1,949			1,943			1,959			1,945			1,888
Claims and expenses
Claims and claim adjustment expenses	1,102			1,190			1,001			1,034			979
Amortization of deferred acquisition costs	330			322			319			314			292
General and administrative expenses	232			241			256			251			223
Total claims and expenses	1,664			1,753			1,576			1,599			1,494
Operating income before income taxes	285			190			383			346			394
Income tax expense	88			48			121			109			126
Operating income	$	197		$	142		$	262		$	237		$	268
Other statistics
Effective tax rate on net investment income	19.5		%	20.1		%	19.5		%	20.3		%	21.3		%
Net investment income (after-tax)	$	73		$	75		$	72		$	75		$	79
Catastrophes, net of reinsurance:
Pre-tax	$	64		$	146		$	38		$	2		$	65
After-tax	$	42		$	95		$	24		$	1		$	42
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	60		$	65		$	48		$	36		$	132
After-tax	$	39		$	42		$	32		$	22		$	86

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

16

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Underwriting gain	$	112		$	57		$	168		$	138		$	172
Net investment income	73			75			72			75			79
Other	12			10			22			24			17
Operating income	$	197		$	142		$	262		$	237		$	268
GAAP combined ratio (1)
Loss and loss adjustment expense ratio	59.9		%	64.9		%	54.5		%	57.0		%	55.6		%
Underwriting expense ratio	29.5		%	29.6		%	30.2		%	29.9		%	28.0		%
Combined ratio	89.4		%	94.5		%	84.7		%	86.9		%	83.6		%
GAAP combined ratio excluding incremental impact of direct to consumer initiative	87.5		%	92.9		%	82.9		%	85.1		%	82.0		%
Impact of catastrophes on combined ratio	3.5		%	8.0		%	2.0		%	0.1		%	3.7		%
Impact of prior year reserve development on combined ratio	-3.3		%	-3.5		%	-2.6		%	-2.0		%	-7.5		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Billing and policy fees and other	$	20	$	20	$	21	$	21	$	22

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)

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Statutory underwriting
Gross written premiums	$	1,763	$	1,997	$	2,028	$	1,746	$	1,649
Net written premiums	$	1,690	$	1,907	$	1,911	$	1,717	$	1,619
Net earned premiums	$	1,840	$	1,834	$	1,835	$	1,815	$	1,762
Losses and loss adjustment expenses	1,102		1,190		1,001		1,038		980
Underwriting expenses	513		552		573		529		481
Statutory underwriting gain	$	225	$	92	$	261	$	248	$	301
Policies in force (in thousands)
Automobile	2,286		2,217		2,151		2,103		2,079
Homeowners and other	4,563		4,477		4,386		4,294		4,232

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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Statutory underwriting
Gross written premiums	$	835		$	838		$	834		$	770		$	795
Net written premiums	$	831		$	834		$	828		$	765		$	788
Net earned premiums	$	844		$	837		$	827		$	812		$	787
Losses and loss adjustment expenses	594			599			591			636			533
Underwriting expenses	218			224			222			208			208
Statutory underwriting gain (loss)	$	32		$	14		$	14		$	(32	)	$	46
Other statistics
GAAP combined ratio (2):
Loss and loss adjustment expense ratio	70.4		%	71.6		%	71.5		%	77.8		%	67.7		%
Underwriting expense ratio	25.6		%	26.2		%	26.4		%	26.2		%	25.6		%
Combined ratio	96.0		%	97.8		%	97.9		%	104.0		%	93.3		%
Impact of catastrophes on combined ratio	1.0		%	1.4		%	0.3		%	0.0		%	0.0		%
Impact of prior year reserve development on combined ratio	0.6		%	0.0		%	0.0		%	1.8		%	0.0		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	8		$	12		$	2		$	—		$	—
After-tax	$	6		$	7		$	1		$	—		$	—
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	(6	)	$	—		$	—		$	(14	)	$	—
After-tax	$	(4	)	$	—		$	—		$	(10	)	$	—
Policies in force (in thousands)	2,204			2,136			2,071			2,022			1,996
Change from prior year quarter	-10.9		%	-11.8		%	-12.0		%	-11.2		%	-9.4		%
Change from prior quarter	-3.2		%	-3.1		%	-3.0		%	-2.4		%	-1.3		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Billing and policy fees and other	$	10	$	9	$	9	$	9	$	9

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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Statutory underwriting
Gross written premiums	$	889		$	1,119		$	1,150		$	936		$	811
Net written premiums	$	820		$	1,033		$	1,039		$	913		$	788
Net earned premiums	$	957		$	958		$	969		$	963		$	935
Losses and loss adjustment expenses	480			561			382			371			419
Underwriting expenses	255			293			313			286			240
Statutory underwriting gain	$	222		$	104		$	274		$	306		$	276
Other statistics
GAAP combined ratio (2):
Loss and loss adjustment expense ratio	50.2		%	58.6		%	39.4		%	38.5		%	44.8		%
Underwriting expense ratio	29.8		%	30.1		%	30.8		%	30.7		%	27.6		%
Combined ratio	80.0		%	88.7		%	70.2		%	69.2		%	72.4		%
Impact of catastrophes on combined ratio	5.6		%	13.9		%	3.6		%	0.0		%	6.8		%
Impact of prior year reserve development on combined ratio	-6.7		%	-6.7		%	-5.0		%	-5.1		%	-14.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	54		$	133		$	35		$	1		$	64
After-tax	$	35		$	87		$	22		$	1		$	41
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	65		$	65		$	48		$	50		$	132
After-tax	$	42		$	42		$	32		$	32		$	86
Policies in force (in thousands)	4,484			4,396			4,303			4,209			4,146
Change from prior year quarter	-8.5		%	-9.0		%	-8.8		%	-8.4		%	-7.5		%
Change from prior quarter	-2.4		%	-2.0		%	-2.1		%	-2.2		%	-1.5		%

(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:

	1Q		2Q		3Q		4Q		1Q
	2013		2013		2013		2013		2014
Billing and policy fees and other	$	9	$	10	$	12	$	12	$	13

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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Net written premiums
Automobile	$	29		$	27		$	30		$	26		$	31
Homeowners and other	10			13			14			13			12
Total net written premiums	$	39		$	40		$	44		$	39		$	43
Revenues
Premiums	$	39		$	39		$	39		$	40		$	40
Other revenues	—			—			1			—			—
Total revenues	39			39			40			40			40
Claims and expenses
Claims and claim adjustment expenses	28			30			28			31			28
Amortization of deferred acquisition costs	1			1			1			1			1
General and administrative expenses	40			34			37			36			33
Total claims and expenses	69			65			66			68			62
Operating loss before income taxes	(30		)	(26		)	(26		)	(28		)	(22		)
Income taxes	(11		)	(9		)	(9		)	(10		)	(8		)
Operating loss	$	(19	)	$	(17	)	$	(17	)	$	(18	)	$	(14	)
Other statistics
Policies in force (in thousands)
Automobile	82			81			80			81			83
Homeowners and other	79			81			83			85			86
Catastrophes, net of reinsurance:
Pre-tax	$	2		$	1		$	1		$	1		$	1
After-tax	$	1		$	1		$	1		$	—		$	1
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	1		$	—		$	—		$	—		$	—
After-tax	$	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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Revenues
Other revenues	$	(2	)	$	1		$	(3	)	$	(2	)	$	(1	)
Claims and expenses
Interest expense	92			86			91			92			92
General and administrative expenses	4			7			6			3			7
Total claims and expenses	96			93			97			95			99
Operating loss before income tax benefit	(98		)	(92		)	(100		)	(97		)	(100		)
Income taxes	(35		)	(33		)	(35		)	(36		)	(36		)
Operating loss	$	(63	)	$	(59	)	$	(65	)	$	(61	)	$	(64	)

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

22

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

	March 31,			December 31,
	2014 (1)			2013
Assets
Fixed maturities, available for sale, at fair value (amortized cost $61,995 and $62,196)	$	64,271		$	63,956
Equity securities, available for sale, at fair value (cost $660 and $686)	938			943
Real estate investments	936			938
Short-term securities	4,034			3,882
Other investments	3,539			3,441
Total investments	73,718			73,160
Cash	260			294
Investment income accrued	686			734
Premiums receivable	6,302			6,125
Reinsurance recoverables	9,590			9,713
Ceded unearned premiums	851			801
Deferred acquisition costs	1,836			1,804
Deferred taxes	—			303
Contractholder receivables	4,361			4,328
Goodwill	3,624			3,634
Other intangible assets	339			351
Other assets	2,567			2,565
Total assets	$	104,134		$	103,812
Liabilities
Claims and claim adjustment expense reserves	$	50,588		$	50,895
Unearned premium reserves	11,917			11,850
Contractholder payables	4,361			4,328
Payables for reinsurance premiums	370			298
Deferred taxes	54			—
Debt	6,347			6,346
Other liabilities	5,110			5,299
Total liabilities	78,747			79,016
Shareholders’ equity
Common stock (1,750.0 shares authorized; 347.5 and 353.5 shares issued and outstanding)	21,603			21,500
Retained earnings	25,167			24,291
Accumulated other comprehensive income	1,127			810
Treasury stock, at cost (410.0 and 401.5 shares)	(22,510		)	(21,805		)
Total shareholders’ equity	25,387			24,796
Total liabilities and shareholders’ equity	$	104,134		$	103,812

(1)  Preliminary.

23

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

	March 31,		Pre-tax Book		December 31,		Pre-tax Book
	2014		Yield (1)		2013		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	29,278	3.51	%	$	28,788	3.55	%
Tax-exempt fixed maturities	34,993		3.83	%	35,168		3.84	%
Total fixed maturities	64,271		3.68	%	63,956		3.71	%
Non-redeemable preferred stocks	307		5.80	%	333		5.70	%
Common stocks	631				610
Total equity securities	938				943
Real estate investments	936				938
Short-term securities	4,034		0.15	%	3,882		0.15	%
Private equities	1,978				1,926
Hedge funds	400				390
Real estate partnerships	634				618
Other investments	527				507
Total other investments	3,539				3,441
Total investments	$	73,718			$	73,160
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	1,674			$	1,322

(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)

	March 31,		December 31,
	2014		2013
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,223	$	2,315
Obligations of states and political subdivisions:
Pre-refunded	8,699		9,518
All other	26,693		26,044
Total	35,392		35,562
Debt securities issued by foreign governments	2,571		2,577
Mortgage-backed securities - principally obligations of U.S. Government agencies	2,361		2,424
Corporates (including redeemable preferreds)	21,724		21,078
Total fixed maturities	$	64,271	$	63,956

Fixed Maturities
Quality Characteristics (1)

	March 31, 2014
	Amount		% of Total
Quality Ratings
Aaa	$	27,267	42.5	%
Aa	19,604		30.5
A	9,332		14.5
Baa	6,132		9.5
Total investment grade	62,335		97.0
Ba	1,039		1.6
B	441		0.7
Caa and lower	456		0.7
Total below investment grade	1,936		3.0
Total fixed maturities	$	64,271	100.0	%
Average weighted quality	Aa2, AA
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	3.6

(1)  Rated using external rating agencies or by Travelers when a public rating does not exist.  Below investment grade assets refer to securities rated “Ba” or below.

25

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Gross investment income
Fixed maturities	$	586		$	574		$	571		$	579		$	580
Short-term securities	2			2			3			4			2
Other	92			120			91			129			163
	680			696			665			712			745
Investment expenses	10			9			8			10			9
Net investment income, pre-tax	670			687			657			702			736
Income taxes	128			136			126			140			154
Net investment income, after-tax	$	542		$	551		$	531		$	562		$	582
Effective tax rate	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%
Average invested assets (1)	$	69,996		$	69,701		$	70,419		$	72,165		$	72,112
Average yield pre-tax (1)	3.8		%	3.9		%	3.7		%	3.9		%	4.1		%
Average yield after-tax	3.1		%	3.2		%	3.0		%	3.1		%	3.2		%

(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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Net realized investment gains (losses)
Fixed maturities	$	11		$	14		$	5		$	6		$	6
Equity securities	6			4			(1		)	1			(4		)
Other (1)	(7		)	149			(26		)	4			(1		)
Realized investment gains (losses) before tax	10			167			(22		)	11			1
Related taxes	1			58			(3		)	4			1
Net realized investment gains (losses)	$	9		$	109		$	(19	)	$	7		$	—
Gross investment gains (1)	$	108		$	352		$	12		$	57		$	59
Gross investment losses before impairments (1)	(93		)	(183		)	(31		)	(41		)	(49		)
Net investment gains before impairments	15			169			(19		)	16			10
Other-than-temporary impairment losses	(5		)	(2		)	(3		)	(5		)	(9		)
Net realized investment gains (losses) before tax	10			167			(22		)	11			1
Related taxes	1			58			(3		)	4			1
Net realized investment gains (losses)	$	9		$	109		$	(19	)	$	7		$	—

	March 31,		June 30,		September 30,		December 31,		March 31,
	2013		2013		2013		2013		2014
Net unrealized investment gains, net of tax, by asset type
Fixed maturities	$	4,121	$	2,349	$	2,142	$	1,760	$	2,276
Equity securities & other	274		250		252		270		293
Unrealized investment gains before tax	4,395		2,599		2,394		2,030		2,569
Related taxes	1,531		907		835		708		895
Balance, end of period	$	2,864	$	1,692	$	1,559	$	1,322	$	1,674

(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	$	56	$	287	$	—	$	—	$	4
Gross investment Treasury future losses	$	75	$	153	$	—	$	—	$	3

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)

	March 31,			December 31,
	2014			2013
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	4,633		$	4,707
Allowance for uncollectible reinsurance	(240		)	(239		)
Net reinsurance recoverables (i)	4,393			4,468
Mandatory pools and associations (ii)	1,899			1,897
Structured settlements (iii)	3,298			3,348
Total reinsurance recoverables	$	9,590		$	9,713

(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	March 31,
Reinsurer	Predominant Reinsurer	2014
Munich Re Group	A+ second highest of 16 ratings	$	515
Swiss Re Group	A+ second highest of 16 ratings	505
NKSJ Holdings Inc Group	A+ second highest of 16 ratings	246
Berkshire Hathaway	A++ highest of 16 ratings	244
XL Capital Group	A third highest of 16 ratings	235

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 March 31, 2014, after deducting mandatory pools and associations and structured settlement balances, $3.5 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, 10% related to recoverables from captive insurance companies and 4% were balances from other companies not rated by A.M. Best Company.  In addition, $1.3 billion of the net recoverables were collateralized by letters of credit, funds held or trust agreements at March 31, 2014.

(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	March 31,
Group	Predominant Insurer	2014
Fidelity and Guaranty Life	B++ fifth highest of 16 ratings	$	962
Metlife	A+ second highest of 16 ratings	452
Genworth Financial Group	A third highest of 16 ratings	422
John Hancock Group	A+ second highest of 16 ratings	251
Symetra Financial Corporation	A third highest of 16 ratings	247

28

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Statutory Basis Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period	$	31,120		$	30,929		$	31,006		$	31,029		$	30,892
Incurred	1,668			1,970			1,920			1,805			1,805
Paid	(1,860		)	(1,892		)	(1,901		)	(1,941		)	(1,786		)
Foreign exchange and other	1			(1		)	4			(1		)	(1		)
End of period	$	30,929		$	31,006		$	31,029		$	30,892		$	30,910
Financial, Professional & International Insurance
Beginning of period	$	5,849		$	5,757		$	5,673		$	5,714		$	7,420
Incurred	300			330			329			439			482
Paid	(316		)	(399		)	(361		)	(504		)	(488		)
Acquired reserves, foreign exchange and other (1)	(76		)	(15		)	73			1,771			(78		)
End of period	$	5,757		$	5,673		$	5,714		$	7,420		$	7,336
Personal Insurance
Beginning of period	$	3,687		$	3,529		$	3,466		$	3,294		$	3,256
Incurred	1,102			1,190			1,001			1,038			980
Paid	(1,260		)	(1,253		)	(1,173		)	(1,076		)	(1,099		)
End of period	$	3,529		$	3,466		$	3,294		$	3,256		$	3,137
Total
Beginning of period	$	40,656		$	40,215		$	40,145		$	40,037		$	41,568
Incurred	3,070			3,490			3,250			3,282			3,267
Paid	(3,436		)	(3,544		)	(3,435		)	(3,521		)	(3,373		)
Acquired reserves, foreign exchange and other (1)	(75		)	(16		)	77			1,770			(79		)
End of period	$	40,215		$	40,145		$	40,037		$	41,568		$	41,383
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	190		$	—		$	—
Environmental	—			65			—			—			—
All other	(113		)	(120		)	(226		)	(121		)	(93		)
Total Business Insurance (2)	(113		)	(55		)	(36		)	(121		)	(93		)
Financial, Professional & International Insurance
Asbestos	—			—			—			—			—
All other	(58		)	(72		)	(74		)	(102		)	(69		)
Total Financial, Professional & International Insurance	(58		)	(72		)	(74		)	(102		)	(69		)
Personal Insurance	(60		)	(65		)	(48		)	(36		)	(132		)
Total	$	(231	)	$	(192	)	$	(158	)	$	(259	)	$	(294	)

(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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Asbestos reserves
Beginning reserves:
Gross	$	2,689		$	2,626		$	2,566		$	2,686		$	2,606
Ceded	(311		)	(292		)	(288		)	(263		)	(256		)
Net	2,378			2,334			2,278			2,423			2,350
Incurred losses and loss expenses:
Gross	—			—			190			—			—
Ceded	—			—			—			—			—
Paid loss and loss expenses:
Gross	62			60			71			80			59
Ceded	(19		)	(4		)	(25		)	(7		)	(14		)
Foreign exchange and other:
Gross	(1		)	—			1			—			—
Ceded	—			—			—			—			—
Ending reserves:
Gross	2,626			2,566			2,686			2,606			2,547
Ceded	(292		)	(288		)	(263		)	(256		)	(242		)
Net	$	2,334		$	2,278		$	2,423		$	2,350		$	2,305
Environmental reserves
Beginning reserves:
Gross	$	352		$	340		$	399		$	371		$	355
Ceded	(5		)	(4		)	(11		)	(12		)	(11		)
Net	347			336			388			359			344
Incurred losses and loss expenses:
Gross	—			72			—			—			—
Ceded	—			(7		)	—			—			—
Paid loss and loss expenses:
Gross	12			13			28			34			24
Ceded	(1		)	—			1			(3		)	—
Acquired reserves, foreign exchange and other: (1)
Gross	—			—			—			18			—
Ceded	—			—			—			(2		)	—
Ending reserves:
Gross	340			399			371			355			331
Ceded	(4		)	(11		)	(12		)	(11		)	(11		)
Net	$	336		$	388		$	359		$	344		$	320

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

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

30

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

	March 31,			December 31,
	2014			2013
Debt
Short-term debt
Commercial paper	$	100		$	100
Total short-term debt	100			100
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			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			6,261
Unamortized fair value adjustment	51			51
Unamortized debt issuance costs	(65		)	(66		)
	6,247			6,246
Total debt	6,347			6,346
Common equity (excluding net unrealized investment gains, net of tax)	23,713			23,474
Total capital (excluding net unrealized investment gains, net of tax)	$	30,060		$	29,820
Total debt to capital (excluding net unrealized investment gains, net of tax)	21.1		%	21.3		%

(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)

	March 31,			December 31,
	2014 (1)			2013
Statutory basis surplus	$	21,440		$	21,123
GAAP adjustments
Goodwill and intangible assets	3,794			3,816
Investments	3,034			2,541
Noninsurance companies	(4,426		)	(4,453		)
Deferred acquisition costs	1,836			1,804
Deferred federal income tax	(1,496		)	(1,259		)
Current federal income tax	(32		)	(32		)
Reinsurance recoverables	160			160
Furniture, equipment & software	676			708
Employee benefits	(2		)	2
Agents balances	136			135
Other	267			251
Total GAAP adjustments	3,947			3,673
GAAP shareholders’ equity	$	25,387		$	24,796

(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)

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Cash flows from operating activities
Net income	$	896		$	925		$	864		$	988		$	1,052
Adjustments to reconcile net income to net cash
provided by operating activities:
Net realized investment (gains) losses	(10		)	(167		)	22			(11		)	(1		)
Depreciation and amortization	219			216			207			225			227
Deferred federal income tax expense	131			20			(19		)	35			153
Amortization of deferred acquisition costs	948			950			953			970			950
Equity in income from other investments	(74		)	(101		)	(72		)	(110		)	(139		)
Premiums receivable	(155		)	(248		)	161			296			(189		)
Reinsurance recoverables	390			357			355			182			106
Deferred acquisition costs	(954		)	(958		)	(950		)	(897		)	(986		)
Claims and claim adjustment expense reserves	(751		)	(377		)	(556		)	(373		)	(209		)
Unearned premium reserves	187			158			138			(456		)	94
Other	(297		)	(53		)	534			78			(355		)
Net cash provided by operating activities	530			722			1,637			927			703
Cash flows from investing activities
Proceeds from maturities of fixed maturities	2,123			1,778			2,016			1,987			2,312
Proceeds from sales of investments:
Fixed maturities	234			338			588			475			406
Equity securities	36			14			7			29			36
Real estate investments	—			—			—			18			1
Other investments	174			207			164			217			167
Purchases of investments:
Fixed maturities	(2,339		)	(2,149		)	(2,004		)	(2,975		)	(2,715		)
Equity securities	(13		)	(27		)	(10		)	(7		)	(18		)
Real estate investments	(6		)	(53		)	(6		)	(42		)	(9		)
Other investments	(95		)	(114		)	(103		)	(134		)	(113		)
Net sales (purchases) of short-term securities	109			(28		)	(1,974		)	2,004			(160		)
Securities transactions in course of settlement	180			(120		)	220			(259		)	240
Acquisition, net of cash acquired	—			—			—			(997		)	(12		)
Other	(100		)	(57		)	(97		)	(119		)	(60		)
Net cash provided by (used in) investing activities	303			(211		)	(1,199		)	197			75

33

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

	1Q			2Q			3Q			4Q			1Q
	2013			2013			2013			2013			2014
Cash flows from financing activities
Payment of debt	(500		)	—			—			—			—
Issuance of debt	—			—			494			—			—
Dividends paid to shareholders	(175		)	(191		)	(183		)	(180		)	(176		)
Issuance of common stock - employee share options	98			41			19			48			57
Treasury stock acquired - share repurchase authorization	(300		)	(300		)	(800		)	(1,000		)	(650		)
Treasury stock acquired - net employee share-based compensation	(58		)	(1		)	(1		)	(1		)	(54		)
Excess tax benefits from share-based payment arrangements	21			8			14			8			13
Net cash used in financing activities	(914		)	(443		)	(457		)	(1,125		)	(810		)
Effect of exchange rate changes on cash	(6		)	(3		)	6			—			(2		)
Net increase (decrease) in cash	(87		)	65			(13		)	(1		)	(34		)
Cash at beginning of period	330			243			308			295			294
Cash at end of period	$	243		$	308		$	295		$	294		$	260
Income taxes paid	$	27		$	468		$	229		$	333		$	93
Interest paid	$	35		$	149		$	22		$	149		$	34

34

The Travelers Companies, Inc.
Financial Supplement - First Quarter 2014
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.

Combined ratio (SAP and GAAP)  For SAP, it is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators.  The GAAP combined ratio is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premium and the GAAP underwriting expense ratio is based on net earned premiums.  The Loss and LAE ratio for SAP is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The GAAP ratio is calculated in the same manner as the SAP ratio.  The Underwriting expense ratio for SAP is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees, to net written premiums as defined in the statutory financial statements required by insurance regulators. For GAAP, it is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums.

The GAAP combined ratio, GAAP Loss and LAE ratio, and GAAP Underwriting expense ratio are used as indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

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.  The International group includes The Dominion of Canada General Insurance Company, which the Company acquired in November 2013 and which writes personal lines and small commercial insurance business in Canada. In addition, the Company owns 49.5% of the common stock of J. Malucelli Participações em Seguros e Resseguros S.A., its joint venture in Brazil.

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