Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - Second 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 June 10, 2014, the Company announced a realignment of its management team that gave rise to a realignment of two of its three business segments, effective July 1, 2014. The Company’s International Insurance group, which had previously been included in the Financial, Professional & International Insurance segment, will be combined with the Company’s previous Business Insurance segment to create a new Business & International Insurance segment. The Bond & Financial Products group, which was the remaining business in the Financial, Professional & International Insurance segment, will now comprise the new Bond & Financial Products segment. The Personal Insurance segment will not be impacted by these changes. The changes were designed to reflect the realignment of the Company’s management team and the manner in which the Company’s businesses are managed effective July 1, 2014, and represent an aggregation of products and services based on type of customer, how the business is marketed and the manner in which risks are underwritten. The newly aligned segments will be presented in the Company’s financial statements beginning with the period ending September 30, 2014 and the prior periods presented will be restated to conform to the new presentation. The following discussion of segment results in this financial supplement is based on the Company’s reportable business segment structure as it existed on June 30, 2014.

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	1,821		$	1,735
Net income per share:
Basic	$	2.36		$	2.44		$	2.33		$	2.73		$	2.98		$	1.98		$	4.80		$	4.97
Diluted	$	2.33		$	2.41		$	2.30		$	2.70		$	2.95		$	1.95		$	4.75		$	4.91
Operating income	$	887		$	816		$	883		$	981		$	1,052		$	673		$	1,703		$	1,725
Operating income per share:
Basic	$	2.33		$	2.15		$	2.38		$	2.71		$	2.98		$	1.95		$	4.49		$	4.94
Diluted	$	2.31		$	2.13		$	2.35		$	2.68		$	2.95		$	1.93		$	4.44		$	4.89
Return on equity	14.1		%	14.6		%	13.9		%	15.9		%	16.8		%	10.7		%	14.4		%	13.7		%
Operating return on equity	15.8		%	14.2		%	15.2		%	16.8		%	17.8		%	11.4		%	15.0		%	14.6		%
Total assets, at period end	$	103,897		$	101,900		$	102,685		$	103,812		$	104,134		$	104,811		$	101,900		$	104,811
Total equity, at period end	$	25,596		$	24,890		$	24,811		$	24,796		$	25,387		$	25,532		$	24,890		$	25,532
Book value per share, at period end	$	68.00		$	66.65		$	68.15		$	70.15		$	73.06		$	75.32		$	66.65		$	75.32
Less: Net unrealized investment gains, net of tax	7.61			4.53			4.28			3.74			4.81			5.94			4.53			5.94
Adjusted book value per share, at period end	$	60.39		$	62.12		$	63.87		$	66.41		$	68.25		$	69.38		$	62.12		$	69.38
Weighted average number of common shares outstanding (basic)	377.7			375.9			368.9			359.1			350.9			343.0			376.8			346.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)	381.9			379.9			372.9			363.4			354.6			346.7			380.8			350.5
Common shares outstanding at period end	376.4			373.5			364.1			353.5			347.5			339.0			373.5			339.0
Common stock dividends declared	$	176		$	191		$	185		$	182		$	177		$	190		$	367		$	367
Common stock repurchased:
Under Board of Directors authorization
Shares	3.7			3.6			9.7			11.4			7.8			9.5			7.3			17.3
Cost	$	300		$	300		$	800		$	1,000		$	650		$	875		$	600		$	1,525
Other
Shares	0.7			—			0.1			—			0.7			—			0.7			0.7
Cost	$	58		$	1		$	1		$	1		$	55		$	1		$	59		$	56

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

1

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

														YTD		YTD
	1Q		2Q		3Q			4Q		1Q		2Q		2Q		2Q
	2013		2013		2013			2013		2014		2014		2013		2014
Net income
Operating income	$	887	$	816	$	883		$	981	$	1,052	$	673	$	1,703	$	1,725
Net realized investment gains (losses), after-tax	9		109		(19		)	7		—		10		118		10
Net income	$	896	$	925	$	864		$	988	$	1,052	$	683	$	1,821	$	1,735
Basic earnings per share
Operating income	$	2.33	$	2.15	$	2.38		$	2.71	$	2.98	$	1.95	$	4.49	$	4.94
Net realized investment gains (losses), after-tax	0.03		0.29		(0.05		)	0.02		—		0.03		0.31		0.03
Net income	$	2.36	$	2.44	$	2.33		$	2.73	$	2.98	$	1.98	$	4.80	$	4.97
Diluted earnings per share
Operating income	$	2.31	$	2.13	$	2.35		$	2.68	$	2.95	$	1.93	$	4.44	$	4.89
Net realized investment gains (losses), after-tax	0.02		0.28		(0.05		)	0.02		—		0.02		0.31		0.02
Net income	$	2.33	$	2.41	$	2.30		$	2.70	$	2.95	$	1.95	$	4.75	$	4.91

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Basic and Diluted
Net income, as reported	$	896		$	925		$	864		$	988		$	1,052		$	683		$	1,821		$	1,735
Participating share-based awards - allocated income	(6		)	(7		)	(6		)	(8		)	(7		)	(5		)	(14		)	(12		)
Net income available to common shareholders - basic and diluted	$	890		$	918		$	858		$	980		$	1,045		$	678		$	1,807		$	1,723
Common Shares
Basic
Weighted average shares outstanding	377.7			375.9			368.9			359.1			350.9			343.0			376.8			346.9
Diluted
Weighted average shares outstanding	377.7			375.9			368.9			359.1			350.9			343.0			376.8			346.9
Weighted average effects of dilutive securities - stock options and performance shares	4.2			4.0			4.0			4.3			3.7			3.7			4.0			3.6
Diluted weighted average shares outstanding	381.9			379.9			372.9			363.4			354.6			346.7			380.8			350.5

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

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

2

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Revenues
Premiums	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823		$	5,928		$	11,120		$	11,751
Net investment income	670			687			657			702			736			695			1,357			1,431
Fee income	97			82			107			109			107			112			179			219
Net realized investment gains (losses)	10			167			(22		)	11			1			16			177			17
Other revenues	34			135			44			64			41			34			169			75
Total revenues	6,328			6,674			6,452			6,737			6,708			6,785			13,002			13,493
Claims and expenses
Claims and claim adjustment expenses	3,153			3,530			3,297			3,327			3,315			3,826			6,683			7,141
Amortization of deferred acquisition costs	948			950			953			970			950			965			1,898			1,915
General and administrative expenses	915			931			934			977			881			1,001			1,846			1,882
Interest expense	92			86			91			92			92			92			178			184
Total claims and expenses	5,108			5,497			5,275			5,366			5,238			5,884			10,605			11,122
Income before income taxes	1,220			1,177			1,177			1,371			1,470			901			2,397			2,371
Income tax expense	324			252			313			383			418			218			576			636
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	1,821		$	1,735
Other-than-temporary impairments (OTTI)
Total OTTI gains (losses)	$	—		$	(1	)	$	—		$	(9	)	$	(7	)	$	(1	)	$	(1	)	$	(8	)
OTTI losses recognized in net realized investment gains (losses)	$	(5	)	$	(2	)	$	(3	)	$	(5	)	$	(9	)	$	(1	)	$	(7	)	$	(10	)
OTTI gains (losses) recognized in other comprehensive income	$	5		$	1		$	3		$	(4	)	$	2		$	—		$	6		$	2
Other statistics
Effective tax rate on net investment income	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%	20.5		%	19.4		%	20.7		%
Net investment income (after-tax)	$	542		$	551		$	531		$	562		$	582		$	553		$	1,093		$	1,135
Catastrophes, net of reinsurance:
Pre-tax	$	99		$	340		$	99		$	53		$	149		$	436		$	439		$	585
After-tax	$	65		$	221		$	64		$	37		$	97		$	284		$	286		$	381
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	231		$	192		$	158		$	259		$	294		$	183		$	423		$	477
After-tax	$	154		$	125		$	107		$	166		$	190		$	122		$	279		$	312

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

3

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Underwriting gain	$	385		$	235		$	387		$	435		$	507		$	162		$	620		$	669
Net investment income	542			551			531			562			582			553			1,093			1,135
Other, including interest expense	(40		)	30			(35		)	(16		)	(37		)	(42		)	(10		)	(79		)
Operating income	887			816			883			981			1,052			673			1,703			1,725
Net realized investment gains (losses)	9			109			(19		)	7			—			10			118			10
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	1,821		$	1,735
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	56.2		%	62.3		%	57.3		%	56.0		%	56.0		%	63.6		%	59.3		%	59.9		%
Underwriting expense ratio	32.3		%	32.0		%	31.6		%	31.7		%	29.7		%	31.5		%	32.1		%	30.6		%
Combined ratio	88.5		%	94.3		%	88.9		%	87.7		%	85.7		%	95.1		%	91.4		%	90.5		%
Combined ratio excluding incremental impact of direct to consumer initiative	87.8		%	93.8		%	88.4		%	87.1		%	85.3		%	94.6		%	90.8		%	90.0		%
Impact of catastrophes on combined ratio	1.8		%	6.1		%	1.7		%	0.9		%	2.6		%	7.3		%	3.9		%	5.0		%
Impact of prior year reserve development on combined ratio	-4.1		%	-3.5		%	-2.8		%	-4.4		%	-5.1		%	-3.1		%	-3.8		%	-4.1		%

(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:
														YTD		YTD
		1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
		2013		2013		2013		2013		2014		2014		2013		2014
	Billing and policy fees and other	$	24	$	25	$	25	$	28	$	30	$	25	$	49	$	55
	Fee income:
	Loss and loss adjustment expenses	$	42	$	27	$	44	$	46	$	43	$	46	$	69	$	89
	Underwriting expenses	55		55		63		63		64		66		110		130
	Total fee income	$	97	$	82	$	107	$	109	$	107	$	112	$	179	$	219

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

4

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Revenues
Premiums	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823		$	5,928		$	11,120		$	11,751
Net investment income	670			687			657			702			736			695			1,357			1,431
Fee income	97			82			107			109			107			112			179			219
Other revenues	34			135			44			64			41			34			169			75
Total revenues	6,318			6,507			6,474			6,726			6,707			6,769			12,825			13,476
Claims and expenses
Claims and claim adjustment expenses	3,153			3,530			3,297			3,327			3,315			3,826			6,683			7,141
Amortization of deferred acquisition costs	948			950			953			970			950			965			1,898			1,915
General and administrative expenses	915			931			934			977			881			1,001			1,846			1,882
Interest expense	92			86			91			92			92			92			178			184
Total claims and expenses	5,108			5,497			5,275			5,366			5,238			5,884			10,605			11,122
Operating income before income taxes	1,210			1,010			1,199			1,360			1,469			885			2,220			2,354
Income tax expense	323			194			316			379			417			212			517			629
Operating income	$	887		$	816		$	883		$	981		$	1,052		$	673		$	1,703		$	1,725
Other statistics
Effective tax rate on net investment income	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%	20.5		%	19.4		%	20.7		%
Net investment income (after-tax)	$	542		$	551		$	531		$	562		$	582		$	553		$	1,093		$	1,135
Catastrophes, net of reinsurance:
Pre-tax	$	99		$	340		$	99		$	53		$	149		$	436		$	439		$	585
After-tax	$	65		$	221		$	64		$	37		$	97		$	284		$	286		$	381
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	231		$	192		$	158		$	259		$	294		$	183		$	423		$	477
After-tax	$	154		$	125		$	107		$	166		$	190		$	122		$	279		$	312

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

5

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

																	YTD			YTD
	1Q			2Q			3Q			4Q		1Q			2Q		2Q			2Q
	2013			2013			2013			2013		2014			2014		2013			2014
Statutory underwriting
Gross written premiums	$	6,188		$	6,247		$	6,310		$	5,912	$	6,401		$	6,525	$	12,435		$	12,926
Net written premiums	$	5,597		$	5,824		$	5,713		$	5,633	$	5,873		$	6,168	$	11,421		$	12,041
Net earned premiums	$	5,517		$	5,603		$	5,666		$	5,851	$	5,823		$	5,934	$	11,120		$	11,757
Losses and loss adjustment expenses	3,070			3,490			3,250			3,282		3,267			3,766		6,560			7,033
Underwriting expenses	1,799			1,808			1,799			1,794		1,783			1,918		3,607			3,701
Statutory underwriting gain	648			305			617			775		773			250		953			1,023
Policyholder dividends	10			13			7			5		11			7		23			18
Statutory underwriting gain after policyholder dividends	$	638		$	292		$	610		$	770	$	762		$	243	$	930		$	1,005
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	40,215		$	40,145		$	40,037		$	41,568	$	41,383		$	41,715	$	40,145		$	41,715
Increase (decrease) in reserves	$	(441	)	$	(70	)	$	(108	)	$	1,531	$	(185	)	$	332	$	(511	)	$	147
Statutory basis surplus	$	20,692		$	20,672		$	21,509		$	21,123	$	21,440		$	21,036	$	20,672		$	21,036
Net written premiums/surplus (1)	1.09:1			1.09:1			1.05:1			1.08:1		1.07:1			1.11:1		1.09:1			1.11:1

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

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

6

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Written premiums
Gross	$	6,188		$	6,247		$	6,310		$	5,912		$	6,401		$	6,519		$	12,435		$	12,920
Ceded	(591		)	(423		)	(597		)	(279		)	(528		)	(357		)	(1,014		)	(885		)
Net	$	5,597		$	5,824		$	5,713		$	5,633		$	5,873		$	6,162		$	11,421		$	12,035
Earned premiums
Gross	$	5,985		$	6,091		$	6,163		$	6,369		$	6,295		$	6,378		$	12,076		$	12,673
Ceded	(468		)	(488		)	(497		)	(518		)	(472		)	(450		)	(956		)	(922		)
Net	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823		$	5,928		$	11,120		$	11,751

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

7

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Revenues
Premiums	$	2,942		$	3,018		$	3,046		$	3,078		$	3,016		$	3,067		$	5,960		$	6,083
Net investment income	487			502			479			507			530			496			989			1,026
Fee income	97			82			106			108			107			111			179			218
Other revenues	13			114			8			23			8			8			127			16
Total revenues	3,539			3,716			3,639			3,716			3,661			3,682			7,255			7,343
Claims and expenses
Claims and claim adjustment expenses	1,749			2,008			1,965			1,854			1,853			2,142			3,757			3,995
Amortization of deferred acquisition costs	475			481			479			478			471			479			956			950
General and administrative expenses	517			511			503			521			438			535			1,028			973
Total claims and expenses	2,741			3,000			2,947			2,853			2,762			3,156			5,741			5,918
Operating income before income taxes	798			716			692			863			899			526			1,514			1,425
Income tax expense	208			137			166			229			246			117			345			363
Operating income	$	590		$	579		$	526		$	634		$	653		$	409		$	1,169		$	1,062
Other statistics
Effective tax rate on net investment income	19.2		%	19.8		%	19.2		%	20.1		%	21.1		%	20.6		%	19.5		%	20.9		%
Net investment income (after-tax)	$	394		$	402		$	387		$	406		$	418		$	394		$	796		$	812
Catastrophes, net of reinsurance:
Pre-tax	$	35		$	148		$	61		$	41		$	80		$	236		$	183		$	316
After-tax	$	23		$	96		$	40		$	27		$	52		$	154		$	119		$	206
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	113		$	55		$	36		$	121		$	93		$	25		$	168		$	118
After-tax	$	75		$	36		$	24		$	78		$	60		$	16		$	111		$	76

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

8

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Underwriting gain	$	188		$	102		$	134		$	212		$	230		$	10		$	290		$	240
Net investment income	394			402			387			406			418			394			796			812
Other	8			75			5			16			5			5			83			10
Operating income	$	590		$	579		$	526		$	634		$	653		$	409		$	1,169		$	1,062
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	57.7		%	65.3		%	63.0		%	58.6		%	59.8		%	68.2		%	61.6		%	64.0		%
Underwriting expense ratio	31.7		%	30.9		%	30.0		%	30.3		%	27.9		%	30.8		%	31.3		%	29.4		%
Combined ratio	89.4		%	96.2		%	93.0		%	88.9		%	87.7		%	99.0		%	92.9		%	93.4		%
Impact of catastrophes on combined ratio	1.2		%	4.9		%	2.0		%	1.3		%	2.7		%	7.7		%	3.1		%	5.2		%
Impact of prior year reserve development on combined ratio	-3.9		%	-1.8		%	-1.2		%	-3.9		%	-3.1		%	-0.8		%	-2.8		%	-1.9		%

(1)  Before policyholder dividends.

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Billing and policy fees and other	$	4	$	5	$	4	$	4	$	4	$	4	$	9	$	8
Fee income:
Loss and loss adjustment expenses	$	42	$	27	$	43	$	45	$	43	$	45	$	69	$	88
Underwriting expenses	55		55		63		63		64		66		110		130
Total fee income	$	97	$	82	$	106	$	108	$	107	$	111	$	179	$	218

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

9

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Statutory underwriting
Gross written premiums	$	3,626	$	3,344	$	3,483	$	3,124	$	3,668	$	3,385	$	6,970	$	7,053
Net written premiums	$	3,260	$	3,068	$	3,032	$	2,873	$	3,304	$	3,107	$	6,328	$	6,411
Net earned premiums	$	2,942	$	3,018	$	3,046	$	3,078	$	3,016	$	3,073	$	5,960	$	6,089
Losses and loss adjustment expenses	1,668		1,970		1,920		1,805		1,805		2,086		3,638		3,891
Underwriting expenses	969		933		913		888		876		936		1,902		1,812
Statutory underwriting gain	305		115		213		385		335		51		420		386
Policyholder dividends	8		11		5		4		8		5		19		13
Statutory underwriting gain after policyholder dividends	$	297	$	104	$	208	$	381	$	327	$	46	$	401	$	373

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

10

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Net written premiums by market
Select Accounts	$	724	$	709	$	654	$	637	$	718	$	705	$	1,433	$	1,423
Commercial Accounts	908		732		808		749		893		738		1,640		1,631
National Accounts	277		242		236		255		300		243		519		543
Industry-Focused Underwriting	699		653		673		620		732		678		1,352		1,410
Target Risk Underwriting	448		500		441		410		454		513		948		967
Specialized Distribution	204		232		220		202		207		224		436		431
Total	$	3,260	$	3,068	$	3,032	$	2,873	$	3,304	$	3,101	$	6,328	$	6,405
Net written premiums by product line
Commercial multi-peril	$	828	$	771	$	755	$	729	$	821	$	750	$	1,599	$	1,571
Workers’ compensation	1,056		860		885		841		1,076		904		1,916		1,980
Commercial automobile	484		476		488		449		490		456		960		946
Commercial property	427		484		424		413		440		505		911		945
General liability	458		469		458		438		469		477		927		946
Other	7		8		22		3		8		9		15		17
Total	$	3,260	$	3,068	$	3,032	$	2,873	$	3,304	$	3,101	$	6,328	$	6,405
National Accounts
Additions to claim volume under administration (1)	$	701	$	523	$	523	$	596	$	727	$	511	$	1,224	$	1,238
Written fees	$	104	$	88	$	92	$	81	$	111	$	87	$	192	$	198

(1)  Includes new and renewal business.

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

11

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Revenues
Premiums	$	735		$	751		$	785		$	958		$	1,045		$	1,088		$	1,486		$	2,133
Net investment income	92			91			88			101			106			105			183			211
Fee income	—			—			1			1			—			1			—			1
Other revenues	5			5			5			7			8			8			10			16
Total revenues	832			847			879			1,067			1,159			1,202			1,679			2,361
Claims and expenses
Claims and claim adjustment expenses	302			332			331			439			483			423			634			906
Amortization of deferred acquisition costs	143			147			155			178			187			196			290			383
General and administrative expenses	162			172			169			202			213			220			334			433
Total claims and expenses	607			651			655			819			883			839			1,258			1,722
Operating income before income taxes	225			196			224			248			276			363			421			639
Income tax expense	62			42			64			77			81			109			104			190
Operating income	$	163		$	154		$	160		$	171		$	195		$	254		$	317		$	449
Other statistics
Effective tax rate on net investment income	18.6		%	18.6		%	18.2		%	19.4		%	19.8		%	19.5		%	18.6		%	19.7		%
Net investment income (after-tax)	$	75		$	74		$	72		$	81		$	85		$	85		$	149		$	170
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	46		$	—		$	10		$	4		$	10		$	46		$	14
After-tax	$	—		$	30		$	—		$	9		$	3		$	7		$	30		$	10
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	58		$	72		$	74		$	102		$	69		$	146		$	130		$	215
After-tax	$	40		$	47		$	51		$	66		$	44		$	98		$	87		$	142

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

12

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Underwriting gain	$	85		$	76		$	85		$	85		$	105		$	163		$	161		$	268
Net investment income	75			74			72			81			85			85			149			170
Other	3			4			3			5			5			6			7			11
Operating income	$	163		$	154		$	160		$	171		$	195		$	254		$	317		$	449
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	40.8		%	43.9		%	41.8		%	45.7		%	45.9		%	38.7		%	42.4		%	42.2		%
Underwriting expense ratio	41.5		%	42.4		%	41.4		%	39.3		%	37.9		%	37.9		%	41.9		%	38.0		%
Combined ratio	82.3		%	86.3		%	83.2		%	85.0		%	83.8		%	76.6		%	84.3		%	80.2		%
Impact of catastrophes on combined ratio	0.0		%	6.1		%	0.0		%	1.0		%	0.4		%	0.9		%	3.1		%	0.7		%
Impact of prior year reserve development on combined ratio	-7.8		%	-9.7		%	-9.3		%	-10.7		%	-6.6		%	-13.5		%	-8.8		%	-10.1		%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Billing and policy fees and other	$	—	$	—	$	—	$	3	$	4	$	3	$	—	$	7
Fee income:
Loss and loss adjustment expenses	$	—	$	—	$	1	$	1	$	—	$	1	$	—	$	1
Underwriting expenses	—		—		—		—		—		—		—		—
Total fee income	$	—	$	—	$	1	$	1	$	—	$	1	$	—	$	1

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

13

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Statutory underwriting
Gross written premiums	$	799	$	906	$	799	$	1,042	$	1,084	$	1,224	$	1,705	$	2,308
Net written premiums	$	647	$	849	$	770	$	1,043	$	950	$	1,168	$	1,496	$	2,118
Net earned premiums	$	735	$	751	$	785	$	958	$	1,045	$	1,088	$	1,486	$	2,133
Losses and loss adjustment expenses	300		330		329		439		482		419		630		901
Underwriting expenses	317		323		313		377		426		443		640		869
Statutory underwriting gain	118		98		143		142		137		226		216		363
Policyholder dividends	2		2		2		1		3		2		4		5
Statutory underwriting gain after policyholder dividends	$	116	$	96	$	141	$	141	$	134	$	224	$	212	$	358

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

14

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Net written premiums by market
Bond & Financial Products	$	395	$	531	$	553	$	551	$	482	$	540	$	926	$	1,022
International	252		318		217		492		468		628		570		1,096
Total	$	647	$	849	$	770	$	1,043	$	950	$	1,168	$	1,496	$	2,118
Net written premiums by product line
General liability	$	168	$	237	$	249	$	280	$	223	$	239	$	405	$	462
Fidelity & surety	178		253		255		232		211		257		431		468
International	252		318		217		492		468		628		570		1,096
Other	49		41		49		39		48		44		90		92
Total	$	647	$	849	$	770	$	1,043	$	950	$	1,168	$	1,496	$	2,118

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Revenues
Premiums	$	1,840		$	1,834		$	1,835		$	1,815		$	1,762		$	1,773		$	3,674		$	3,535
Net investment income	91			94			90			94			100			94			185			194
Other revenues	18			15			34			36			26			17			33			43
Total revenues	1,949			1,943			1,959			1,945			1,888			1,884			3,892			3,772
Claims and expenses
Claims and claim adjustment expenses	1,102			1,190			1,001			1,034			979			1,261			2,292			2,240
Amortization of deferred acquisition costs	330			322			319			314			292			290			652			582
General and administrative expenses	232			241			256			251			223			237			473			460
Total claims and expenses	1,664			1,753			1,576			1,599			1,494			1,788			3,417			3,282
Operating income before income taxes	285			190			383			346			394			96			475			490
Income tax expense	88			48			121			109			126			21			136			147
Operating income	$	197		$	142		$	262		$	237		$	268		$	75		$	339		$	343
Other statistics
Effective tax rate on net investment income	19.5		%	20.1		%	19.5		%	20.3		%	21.3		%	20.7		%	19.8		%	21.0		%
Net investment income (after-tax)	$	73		$	75		$	72		$	75		$	79		$	74		$	148		$	153
Catastrophes, net of reinsurance:
Pre-tax	$	64		$	146		$	38		$	2		$	65		$	190		$	210		$	255
After-tax	$	42		$	95		$	24		$	1		$	42		$	123		$	137		$	165
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	60		$	65		$	48		$	36		$	132		$	12		$	125		$	144
After-tax	$	39		$	42		$	32		$	22		$	86		$	8		$	81		$	94

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)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Underwriting gain (loss)	$	112		$	57		$	168		$	138		$	172		$	(11	)	$	169		$	161
Net investment income	73			75			72			75			79			74			148			153
Other	12			10			22			24			17			12			22			29
Operating income	$	197		$	142		$	262		$	237		$	268		$	75		$	339		$	343
Combined ratio (1)
Loss and loss adjustment expense ratio	59.9		%	64.9		%	54.5		%	57.0		%	55.6		%	71.1		%	62.4		%	63.4		%
Underwriting expense ratio	29.5		%	29.6		%	30.2		%	29.9		%	28.0		%	28.7		%	29.5		%	28.3		%
Combined ratio	89.4		%	94.5		%	84.7		%	86.9		%	83.6		%	99.8		%	91.9		%	91.7		%
Combined ratio excluding incremental impact of direct to consumer initiative	87.5		%	92.9		%	82.9		%	85.1		%	82.0		%	98.3		%	90.2		%	90.1		%
Impact of catastrophes on combined ratio	3.5		%	8.0		%	2.0		%	0.1		%	3.7		%	10.7		%	5.7		%	7.2		%
Impact of prior year reserve development on combined ratio	-3.3		%	-3.5		%	-2.6		%	-2.0		%	-7.5		%	-0.7		%	-3.4		%	-4.1		%

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Billing and policy fees and other	$	20	$	20	$	21	$	21	$	22	$	18	$	40	$	40

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

17

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

														YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q			2Q		2Q
	2013		2013		2013		2013		2014		2014			2013		2014
Statutory underwriting
Gross written premiums	$	1,763	$	1,997	$	2,028	$	1,746	$	1,649	$	1,916		$	3,760	$	3,565
Net written premiums	$	1,690	$	1,907	$	1,911	$	1,717	$	1,619	$	1,893		$	3,597	$	3,512
Net earned premiums	$	1,840	$	1,834	$	1,835	$	1,815	$	1,762	$	1,773		$	3,674	$	3,535
Losses and loss adjustment expenses	1,102		1,190		1,001		1,038		980		1,261			2,292		2,241
Underwriting expenses	513		552		573		529		481		539			1,065		1,020
Statutory underwriting gain	$	225	$	92	$	261	$	248	$	301	$	(27	)	$	317	$	274
Policies in force (in thousands)
Automobile (1)	2,273		2,204		2,139		2,091		2,068		2,068			2,204		2,068
Homeowners and other	4,563		4,477		4,386		4,294		4,232		4,199			4,477		4,199

(1)  Policies in force have been adjusted to exclude assigned risk auto business for all periods presented.

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

18

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Statutory underwriting
Gross written premiums	$	835		$	838		$	834		$	770		$	795		$	834		$	1,673		$	1,629
Net written premiums	$	831		$	834		$	828		$	765		$	788		$	831		$	1,665		$	1,619
Net earned premiums	$	844		$	837		$	827		$	812		$	787		$	792		$	1,681		$	1,579
Losses and loss adjustment expenses	594			599			591			636			533			588			1,193			1,121
Underwriting expenses	218			224			222			208			208			221			442			429
Statutory underwriting gain (loss)	$	32		$	14		$	14		$	(32	)	$	46		$	(17	)	$	46		$	29
Other statistics
Combined ratio (2):
Loss and loss adjustment expense ratio	70.4		%	71.6		%	71.5		%	77.8		%	67.7		%	74.3		%	71.0		%	71.0		%
Underwriting expense ratio	25.6		%	26.2		%	26.4		%	26.2		%	25.6		%	26.5		%	25.9		%	26.1		%
Combined ratio	96.0		%	97.8		%	97.9		%	104.0		%	93.3		%	100.8		%	96.9		%	97.1		%
Impact of catastrophes on combined ratio	1.0		%	1.4		%	0.3		%	0.0		%	0.0		%	4.6		%	1.2		%	2.3		%
Impact of prior year reserve development on combined ratio	0.6		%	0.0		%	0.0		%	1.8		%	0.0		%	0.0		%	0.3		%	0.0		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	8		$	12		$	2		$	—		$	—		$	36		$	20		$	36
After-tax	$	6		$	7		$	1		$	—		$	—		$	23		$	13		$	23
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	(6	)	$	—		$	—		$	(14	)	$	—		$	—		$	(6	)	$	—
After-tax	$	(4	)	$	—		$	—		$	(10	)	$	—		$	—		$	(4	)	$	—
Policies in force (in thousands) (3)	2,191			2,123			2,058			2,010			1,985			1,981
Change from prior year quarter	-10.9		%	-11.9		%	-12.0		%	-11.2		%	-9.4		%	-6.7		%
Change from prior quarter	-3.3		%	-3.1		%	-3.1		%	-2.3		%	-1.3		%	-0.2		%

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

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Billing and policy fees and other	$	10	$	9	$	9	$	9	$	9	$	8	$	19	$	17

(3)  Policies in force have been adjusted to exclude assigned risk auto business for all periods presented.

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

19

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Statutory underwriting
Gross written premiums	$	889		$	1,119		$	1,150		$	936		$	811		$	1,036		$	2,008		$	1,847
Net written premiums	$	820		$	1,033		$	1,039		$	913		$	788		$	1,016		$	1,853		$	1,804
Net earned premiums	$	957		$	958		$	969		$	963		$	935		$	938		$	1,915		$	1,873
Losses and loss adjustment expenses	480			561			382			371			419			639			1,041			1,058
Underwriting expenses	255			293			313			286			240			283			548			523
Statutory underwriting gain	$	222		$	104		$	274		$	306		$	276		$	16		$	326		$	292
Other statistics
Combined ratio (2):
Loss and loss adjustment expense ratio	50.2		%	58.6		%	39.4		%	38.5		%	44.8		%	68.1		%	54.3		%	56.5		%
Underwriting expense ratio	29.8		%	30.1		%	30.8		%	30.7		%	27.6		%	28.0		%	30.0		%	27.8		%
Combined ratio	80.0		%	88.7		%	70.2		%	69.2		%	72.4		%	96.1		%	84.3		%	84.3		%
Impact of catastrophes on combined ratio	5.6		%	13.9		%	3.6		%	0.0		%	6.8		%	15.9		%	9.8		%	11.4		%
Impact of prior year reserve development on combined ratio	-6.7		%	-6.7		%	-5.0		%	-5.1		%	-14.1		%	-1.3		%	-6.8		%	-7.7		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	54		$	133		$	35		$	1		$	64		$	150		$	187		$	214
After-tax	$	35		$	87		$	22		$	1		$	41		$	98		$	122		$	139
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	65		$	65		$	48		$	50		$	132		$	12		$	130		$	144
After-tax	$	42		$	42		$	32		$	32		$	86		$	8		$	84		$	94
Policies in force (in thousands)	4,484			4,396			4,303			4,209			4,146			4,110
Change from prior year quarter	-8.5		%	-9.0		%	-8.8		%	-8.4		%	-7.5		%	-6.5		%
Change from prior quarter	-2.4		%	-2.0		%	-2.1		%	-2.2		%	-1.5		%	-0.9		%

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

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2013		2013		2013		2013		2014		2014		2013		2014
Billing and policy fees and other	$	9	$	10	$	12	$	12	$	13	$	9	$	19	$	22

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

20

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Net written premiums
Automobile	$	29		$	27		$	30		$	26		$	31		$	31		$	56		$	62
Homeowners and other	10			13			14			13			12			15			23			27
Total net written premiums	$	39		$	40		$	44		$	39		$	43		$	46		$	79		$	89
Revenues
Premiums	$	39		$	39		$	39		$	40		$	40		$	43		$	78		$	83
Other revenues	—			—			1			—			—			—			—			—
Total revenues	39			39			40			40			40			43			78			83
Claims and expenses
Claims and claim adjustment expenses	28			30			28			31			28			33			58			61
Amortization of deferred acquisition costs	1			1			1			1			1			1			2			2
General and administrative expenses	40			34			37			36			33			35			74			68
Total claims and expenses	69			65			66			68			62			69			134			131
Operating loss before income taxes	(30		)	(26		)	(26		)	(28		)	(22		)	(26		)	(56		)	(48		)
Income taxes	(11		)	(9		)	(9		)	(10		)	(8		)	(9		)	(20		)	(17		)
Operating loss	$	(19	)	$	(17	)	$	(17	)	$	(18	)	$	(14	)	$	(17	)	$	(36	)	$	(31	)
Other statistics
Policies in force (in thousands)
Automobile	82			81			81			81			83			87
Homeowners and other	79			81			83			85			86			89
Catastrophes, net of reinsurance:
Pre-tax	$	2		$	1		$	1		$	1		$	1		$	4		$	3		$	5
After-tax	$	1		$	1		$	1		$	—		$	1		$	2		$	2		$	3
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	1		$	—		$	—		$	—		$	—		$	—		$	1		$	—
After-tax	$	1		$	—		$	—		$	—		$	—		$	—		$	1		$	—

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

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

21

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Revenues
Other revenues	$	(2	)	$	1		$	(3	)	$	(2	)	$	(1	)	$	1		$	(1	)	$	—
Claims and expenses
Interest expense	92			86			91			92			92			92			178			184
General and administrative expenses	4			7			6			3			7			9			11			16
Total claims and expenses	96			93			97			95			99			101			189			200
Operating loss before income tax benefit	(98		)	(92		)	(100		)	(97		)	(100		)	(100		)	(190		)	(200		)
Income taxes	(35		)	(33		)	(35		)	(36		)	(36		)	(35		)	(68		)	(71		)
Operating loss	$	(63	)	$	(59	)	$	(65	)	$	(61	)	$	(64	)	$	(65	)	$	(122	)	$	(129	)

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

22

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

	June 30,			December 31,
	2014			2013
Assets
Fixed maturities, available for sale, at fair value (amortized cost $61,841 and $62,196)	$	64,583		$	63,956
Equity securities, available for sale, at fair value (cost $648 and $686)	980			943
Real estate investments	954			938
Short-term securities	3,818			3,882
Other investments	3,606			3,441
Total investments	73,941			73,160
Cash	311			294
Investment income accrued	710			734
Premiums receivable	6,589			6,125
Reinsurance recoverables	9,508			9,713
Ceded unearned premiums	762			801
Deferred acquisition costs	1,879			1,804
Deferred taxes	—			303
Contractholder receivables	4,371			4,328
Goodwill	3,634			3,634
Other intangible assets	328			351
Other assets	2,778			2,565
Total assets	$	104,811		$	103,812
Liabilities
Claims and claim adjustment expense reserves	$	50,856		$	50,895
Unearned premium reserves	12,089			11,850
Contractholder payables	4,371			4,328
Payables for reinsurance premiums	397			298
Deferred taxes	239			—
Debt	6,347			6,346
Other liabilities	4,980			5,299
Total liabilities	79,279			79,016
Shareholders’ equity
Common stock (1,750.0 shares authorized; 339.0 and 353.5 shares issued and outstanding)	21,694			21,500
Retained earnings	25,662			24,291
Accumulated other comprehensive income	1,562			810
Treasury stock, at cost (419.5 and 401.5 shares)	(23,386		)	(21,805		)
Total shareholders’ equity	25,532			24,796
Total liabilities and shareholders’ equity	$	104,811		$	103,812

23

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

	June 30,		Pre-tax Book		December 31,		Pre-tax Book
	2014		Yield (1)		2013		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	29,952	3.48	%	$	28,788	3.55	%
Tax-exempt fixed maturities	34,631		3.80	%	35,168		3.84	%
Total fixed maturities	64,583		3.65	%	63,956		3.71	%
Non-redeemable preferred stocks	281		5.74	%	333		5.70	%
Common stocks	699				610
Total equity securities	980				943
Real estate investments	954				938
Short-term securities	3,818		0.16	%	3,882		0.15	%
Private equities	2,010				1,926
Hedge funds	404				390
Real estate partnerships	648				618
Other investments	544				507
Total other investments	3,606				3,441
Total investments	$	73,941			$	73,160
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	2,013			$	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)

	June 30,		December 31,
	2014		2013
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,094	$	2,315
Obligations of states and political subdivisions:
Pre-refunded	8,455		9,518
All other	26,570		26,044
Total	35,025		35,562
Debt securities issued by foreign governments	2,582		2,577
Mortgage-backed securities - principally obligations of U.S. Government agencies	2,326		2,424
Corporates (including redeemable preferreds)	22,556		21,078
Total fixed maturities	$	64,583	$	63,956
Fixed Maturities
Quality Characteristics (1)
	June 30, 2014
	Amount		% of Total
Quality Ratings
Aaa	$	27,088	41.9		%
Aa	19,686		30.5
A	9,621		14.9
Baa	6,268		9.7
Total investment grade	62,663		97.0
Ba	1,031		1.6
B	452		0.7
Caa and lower	437		0.7
Total below investment grade	1,920		3.0
Total fixed maturities	$	64,583	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	3.5

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

25

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Gross investment income
Fixed maturities	$	586		$	574		$	571		$	579		$	580		$	562		$	1,160		$	1,142
Short-term securities	2			2			3			4			2			2			4			4
Other	92			120			91			129			163			140			212			303
	680			696			665			712			745			704			1,376			1,449
Investment expenses	10			9			8			10			9			9			19			18
Net investment income, pre-tax	670			687			657			702			736			695			1,357			1,431
Income taxes	128			136			126			140			154			142			264			296
Net investment income, after-tax	$	542		$	551		$	531		$	562		$	582		$	553		$	1,093		$	1,135
Effective tax rate	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%	20.5		%	19.4		%	20.7		%
Average invested assets (1)	$	69,996		$	69,701		$	70,419		$	72,165		$	72,112		$	71,880		$	69,903		$	72,010
Average yield pre-tax (1)	3.8		%	3.9		%	3.7		%	3.9		%	4.1		%	3.9		%	3.9		%	4.0		%
Average yield after-tax	3.1		%	3.2		%	3.0		%	3.1		%	3.2		%	3.1		%	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)

																						YTD					YTD
		1Q			2Q			3Q			4Q			1Q			2Q					2Q					2Q
		2013			2013			2013			2013			2014			2014					2013					2014
Net realized investment gains (losses)
Fixed maturities		$	11		$	14		$	5		$	6		$	6		$		9			$		25			$		15
Equity securities		6			4			(1		)	1			(4		)	15					10					11
Other (1)		(7		)	149			(26		)	4			(1		)	(8				)	142					(9				)
Realized investment gains (losses) before tax		10			167			(22		)	11			1			16					177					17
Related taxes		1			58			(3		)	4			1			6					59					7
Net realized investment gains (losses)		$	9		$	109		$	(19	)	$	7		$	—		$		10			$		118			$		10
Gross investment gains (1)		$	108		$	352		$	12		$	57		$	59		$		46			$		460			$		105
Gross investment losses before impairments (1)		(93		)	(183		)	(31		)	(41		)	(49		)	(29				)	(276				)	(78				)
Net investment gains before impairments		15			169			(19		)	16			10			17					184					27
Other-than-temporary impairment losses		(5		)	(2		)	(3		)	(5		)	(9		)	(1				)	(7				)	(10				)
Net realized investment gains (losses) before tax		10			167			(22		)	11			1			16					177					17
Related taxes		1			58			(3		)	4			1			6					59					7
Net realized investment gains (losses)		$	9		$	109		$	(19	)	$	7		$	—		$		10			$		118			$		10
		March 31,			June 30,			September 30,			December 31,			March 31,			June 30,
		2013			2013			2013			2013			2014			2014
Net unrealized investment gains, net of tax, by asset type
Fixed maturities		$	4,121		$	2,349		$	2,142		$	1,760		$	2,276		$		2,742
Equity securities & other		274			250			252			270			293			346
Unrealized investment gains before tax		4,395			2,599			2,394			2,030			2,569			3,088
Related taxes		1,531			907			835			708			895			1,075
Balance, end of period		$	2,864		$	1,692		$	1,559		$	1,322		$	1,674		$		2,013
(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			$		4			$		343			$		8
	Gross investment Treasury future losses	$	75		$	153		$	—		$	—		$	3			$		5			$		228			$		8

The Company entered into these arrangements as part of its strategy to manage the duration of its fixed maturity portfolio.  In a changing interest rate environment, the change in the value of the futures contracts can be expected to partially offset changes in the value of the fixed maturity portfolio.

27

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

		June 30,			December 31,
		2014			2013
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses		$	4,576		$	4,707
Allowance for uncollectible reinsurance		(239		)	(239		)
Net reinsurance recoverables (i)		4,337			4,468
Mandatory pools and associations (ii)		1,878			1,897
Structured settlements (iii)		3,293			3,348
Total reinsurance recoverables		$	9,508		$	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	June 30,
Reinsurer	Predominant Reinsurer	2014
Munich Re Group	A+ second highest of 16 ratings	$	508
Swiss Re Group	A+ second highest of 16 ratings	485
NKSJ Holdings Inc Group	A+ second highest of 16 ratings	250
Berkshire Hathaway	A++ highest of 16 ratings	234
XL Capital Group	A third highest of 16 ratings	229
The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, about half is attributable to 10 reinsurer groups. The net reinsurance recoverables reflect an allowance for uncollectible reinsurance that is based upon the Company’s ongoing review of amounts outstanding, reinsurer solvency, the Company’s experience, current economic conditions, and other relevant factors.  Of the total net recoverables due from reinsurers at June 30, 2014, after deducting mandatory pools and associations and structured settlement balances, $3.4 billion, or 79%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% were rated A- or better.  The remaining 21% of net recoverables from reinsurers were comprised of the following:  6% related to the Company’s participation in voluntary pools, 11% related to recoverables from captive insurance companies and 4% were balances from other companies not rated by A.M. Best Company.  In addition, $1.2 billion of the net recoverables were collateralized by letters of credit, funds held or trust agreements at June 30, 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	June 30,
Group	Predominant Insurer	2014
Fidelity and Guaranty Life	B++ fifth highest of 16 ratings	$	949
Metlife	A+ second highest of 16 ratings	446
Genworth Financial Group	A third highest of 16 ratings	418
John Hancock Group	A+ second highest of 16 ratings	253
Symetra Financial Corporation	A third highest of 16 ratings	245

28

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			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		$	30,910		$	31,120		$	30,892
Incurred	1,668			1,970			1,920			1,805			1,805			2,086			3,638			3,891
Paid	(1,860		)	(1,892		)	(1,901		)	(1,941		)	(1,786		)	(1,858		)	(3,752		)	(3,644		)
Foreign exchange and other	1			(1		)	4			(1		)	(1		)	1			—			—
End of period	$	30,929		$	31,006		$	31,029		$	30,892		$	30,910		$	31,139		$	31,006		$	31,139
Financial, Professional & International Insurance
Beginning of period	$	5,849		$	5,757		$	5,673		$	5,714		$	7,420		$	7,336		$	5,849		$	7,420
Incurred	300			330			329			439			482			419			630			901
Paid	(316		)	(399		)	(361		)	(504		)	(488		)	(565		)	(715		)	(1,053		)
Acquired reserves, foreign exchange and other (1)	(76		)	(15		)	73			1,771			(78		)	101			(91		)	23
End of period	$	5,757		$	5,673		$	5,714		$	7,420		$	7,336		$	7,291		$	5,673		$	7,291
Personal Insurance
Beginning of period	$	3,687		$	3,529		$	3,466		$	3,294		$	3,256		$	3,137		$	3,687		$	3,256
Incurred	1,102			1,190			1,001			1,038			980			1,261			2,292			2,241
Paid	(1,260		)	(1,253		)	(1,173		)	(1,076		)	(1,099		)	(1,113		)	(2,513		)	(2,212		)
End of period	$	3,529		$	3,466		$	3,294		$	3,256		$	3,137		$	3,285		$	3,466		$	3,285
Total
Beginning of period	$	40,656		$	40,215		$	40,145		$	40,037		$	41,568		$	41,383		$	40,656		$	41,568
Incurred	3,070			3,490			3,250			3,282			3,267			3,766			6,560			7,033
Paid	(3,436		)	(3,544		)	(3,435		)	(3,521		)	(3,373		)	(3,536		)	(6,980		)	(6,909		)
Acquired reserves, foreign exchange and other (1)	(75		)	(16		)	77			1,770			(79		)	102			(91		)	23
End of period	$	40,215		$	40,145		$	40,037		$	41,568		$	41,383		$	41,715		$	40,145		$	41,715
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	190		$	—		$	—		$	—		$	—		$	—
Environmental	—			65			—			—			—			87			65			87
All other	(113		)	(120		)	(226		)	(121		)	(93		)	(112		)	(233		)	(205		)
Total Business Insurance (2)	(113		)	(55		)	(36		)	(121		)	(93		)	(25		)	(168		)	(118		)
Financial, Professional & International Insurance
Asbestos	—			—			—			—			—			—			—			—
All other	(58		)	(72		)	(74		)	(102		)	(69		)	(146		)	(130		)	(215		)
Total Financial, Professional & International Insurance	(58		)	(72		)	(74		)	(102		)	(69		)	(146		)	(130		)	(215		)
Personal Insurance	(60		)	(65		)	(48		)	(36		)	(132		)	(12		)	(125		)	(144		)
Total	$	(231	)	$	(192	)	$	(158	)	$	(259	)	$	(294	)	$	(183	)	$	(423	)	$	(477	)

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

(2)  Excludes accretion of discount.

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

29

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Asbestos reserves
Beginning reserves:
Gross	$	2,689		$	2,626		$	2,566		$	2,686		$	2,606		$	2,547		$	2,689		$	2,606
Ceded	(311		)	(292		)	(288		)	(263		)	(256		)	(242		)	(311		)	(256		)
Net	2,378			2,334			2,278			2,423			2,350			2,305			2,378			2,350
Incurred losses and loss expenses:
Gross	—			—			190			—			—			—			—			—
Ceded	—			—			—			—			—			—			—			—
Paid loss and loss expenses:
Gross	62			60			71			80			59			65			122			124
Ceded	(19		)	(4		)	(25		)	(7		)	(14		)	(10		)	(23		)	(24		)
Foreign exchange and other:
Gross	(1		)	—			1			—			—			—			(1		)	—
Ceded	—			—			—			—			—			—			—			—
Ending reserves:
Gross	2,626			2,566			2,686			2,606			2,547			2,482			2,566			2,482
Ceded	(292		)	(288		)	(263		)	(256		)	(242		)	(232		)	(288		)	(232		)
Net	$	2,334		$	2,278		$	2,423		$	2,350		$	2,305		$	2,250		$	2,278		$	2,250
Environmental reserves
Beginning reserves:
Gross	$	352		$	340		$	399		$	371		$	355		$	331		$	352		$	355
Ceded	(5		)	(4		)	(11		)	(12		)	(11		)	(11		)	(5		)	(11		)
Net	347			336			388			359			344			320			347			344
Incurred losses and loss expenses:
Gross	—			72			—			—			—			94			72			94
Ceded	—			(7		)	—			—			—			(7		)	(7		)	(7		)
Paid loss and loss expenses:
Gross	12			13			28			34			24			29			25			53
Ceded	(1		)	—			1			(3		)	—			(4		)	(1		)	(4		)
Acquired reserves, foreign exchange and other: (1)
Gross	—			—			—			18			—			—			—			—
Ceded	—			—			—			(2		)	—			—			—			—
Ending reserves:
Gross	340			399			371			355			331			396			399			396
Ceded	(4		)	(11		)	(12		)	(11		)	(11		)	(14		)	(11		)	(14		)
Net	$	336		$	388		$	359		$	344		$	320		$	382		$	388		$	382

(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)

	June 30,			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	50			51
Unamortized debt issuance costs	(64		)	(66		)
	6,247			6,246
Total debt	6,347			6,346
Common equity (excluding net unrealized investment gains, net of tax)	23,519			23,474
Total capital (excluding net unrealized investment gains, net of tax)	$	29,866		$	29,820
Total debt to capital (excluding net unrealized investment gains, net of tax)	21.3		%	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)

	June 30,			December 31,
	2014 (1)			2013
Statutory basis surplus	$	21,036		$	21,123
GAAP adjustments
Goodwill and intangible assets	3,793			3,816
Investments	3,536			2,541
Noninsurance companies	(4,218		)	(4,453		)
Deferred acquisition costs	1,879			1,804
Deferred federal income tax	(1,725		)	(1,259		)
Current federal income tax	(36		)	(32		)
Reinsurance recoverables	160			160
Furniture, equipment & software	673			708
Employee benefits	12			2
Agents balances	150			135
Other	272			251
Total GAAP adjustments	4,496			3,673
GAAP shareholders’ equity	$	25,532		$	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
($ in millions)

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Cash flows from operating activities
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	1,821		$	1,735
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(10		)	(167		)	22			(11		)	(1		)	(16		)	(177		)	(17		)
Depreciation and amortization	219			216			207			225			227			215			435			442
Deferred federal income tax expense	131			20			(19		)	35			153			(22		)	151			131
Amortization of deferred acquisition costs	948			950			953			970			950			965			1,898			1,915
Equity in income from other investments	(74		)	(101		)	(72		)	(110		)	(139		)	(118		)	(175		)	(257		)
Premiums receivable	(155		)	(248		)	161			296			(189		)	(274		)	(403		)	(463		)
Reinsurance recoverables	390			357			355			182			106			100			747			206
Deferred acquisition costs	(954		)	(958		)	(950		)	(897		)	(986		)	(1,003		)	(1,912		)	(1,989		)
Claims and claim adjustment expense reserves	(751		)	(377		)	(556		)	(373		)	(209		)	149			(1,128		)	(60		)
Unearned premium reserves	187			158			138			(456		)	94			141			345			235
Other	(297		)	(53		)	534			78			(355		)	(195		)	(350		)	(550		)
Net cash provided by operating activities	530			722			1,637			927			703			625			1,252			1,328
Cash flows from investing activities
Proceeds from maturities of fixed maturities	2,123			1,778			2,016			1,987			2,312			2,603			3,901			4,915
Proceeds from sales of investments:
Fixed maturities	234			338			588			475			406			379			572			785
Equity securities	36			14			7			29			36			59			50			95
Real estate investments	—			—			—			18			1			4			—			5
Other investments	174			207			164			217			167			171			381			338
Purchases of investments:
Fixed maturities	(2,339		)	(2,149		)	(2,004		)	(2,975		)	(2,715		)	(2,734		)	(4,488		)	(5,449		)
Equity securities	(13		)	(27		)	(10		)	(7		)	(18		)	(22		)	(40		)	(40		)
Real estate investments	(6		)	(53		)	(6		)	(42		)	(9		)	(27		)	(59		)	(36		)
Other investments	(95		)	(114		)	(103		)	(134		)	(113		)	(113		)	(209		)	(226		)
Net sales (purchases) of short-term securities	109			(28		)	(1,974		)	2,004			(160		)	220			81			60
Securities transactions in course of settlement	180			(120		)	220			(259		)	240			(36		)	60			204
Acquisition, net of cash acquired	—			—			—			(997		)	(12		)	—			—			(12		)
Other	(100		)	(57		)	(97		)	(119		)	(60		)	(92		)	(157		)	(152		)
Net cash provided by (used in) investing activities	303			(211		)	(1,199		)	197			75			412			92			487

33

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2013			2013			2013			2013			2014			2014			2013			2014
Cash flows from financing activities
Payment of debt	(500		)	—			—			—			—			—			(500		)	—
Issuance of debt	—			—			494			—			—			—			—			—
Dividends paid to shareholders	(175		)	(191		)	(183		)	(180		)	(176		)	(189		)	(366		)	(365		)
Issuance of common stock - employee share options	98			41			19			48			57			65			139			122
Treasury stock acquired - share repurchase authorization	(300		)	(300		)	(800		)	(1,000		)	(650		)	(875		)	(600		)	(1,525		)
Treasury stock acquired - net employee share-based compensation	(58		)	(1		)	(1		)	(1		)	(54		)	(1		)	(59		)	(55		)
Excess tax benefits from share-based payment arrangements	21			8			14			8			13			11			29			24
Net cash used in financing activities	(914		)	(443		)	(457		)	(1,125		)	(810		)	(989		)	(1,357		)	(1,799		)
Effect of exchange rate changes on cash	(6		)	(3		)	6			—			(2		)	3			(9		)	1
Net increase (decrease) in cash	(87		)	65			(13		)	(1		)	(34		)	51			(22		)	17
Cash at beginning of period	330			243			308			295			294			260			330			294
Cash at end of period	$	243		$	308		$	295		$	294		$	260		$	311		$	308		$	311
Income taxes paid	$	27		$	468		$	229		$	333		$	93		$	634		$	495		$	727
Interest paid	$	35		$	149		$	22		$	149		$	34		$	149		$	184		$	183

34

The Travelers Companies, Inc.
Financial Supplement - Second 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  For Statutory Accounting Practices (SAP), the combined ratio 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 combined ratio, as used in this financial supplement, 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 underwriting expense ratio as used in this financial supplement is based on net earned premiums.  For SAP, the loss and LAE ratio 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 loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio.  For SAP, the underwriting expense ratio 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. The underwriting expense ratio as used in this financial supplement, 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 combined ratio, loss and LAE ratio, and 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.

Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.

Combined ratio excluding the incremental impact of the direct to consumer initiative is the 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