The Travelers Companies, Inc. (TRV) 8-K Travelers Reports First Quarter 2007 Net Income of $1.086 Billion, or $1.56 per Diluted Share

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - First Quarter 2007

	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 - Automobile	19
Selected Statistics - Homeowners and Other	20
Supplemental Detail
Interest Expense and Other	21
Consolidated Balance Sheet	22
Investment Portfolio	23
Investment Portfolio - Fixed Maturities Data	24
Investment Income	25
Net Realized and Unrealized Investment Gains (Losses)	26
Reinsurance Recoverables	27
Net Reserves for Losses and Loss Adjustment Expense	28
Asbestos and Environmental Reserves	29
Capitalization	30
Statutory to GAAP Shareholders’ Equity Reconciliation	31
Statement of Cash Flows	32
Statement of Cash Flows (continued)	33
Glossary of Financial Measures and Description of Operating Segments	34

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
	2006			2006			2006			2006			2007
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086
Net income per share:
Basic	$	1.45		$	1.40		$	1.52		$	1.75		$	1.62
Diluted	$	1.41		$	1.36		$	1.47		$	1.68		$	1.56
Operating income	$	1,011		$	959		$	1,037		$	1,193		$	1,078
Operating income per share:
Basic	$	1.46		$	1.39		$	1.51		$	1.75		$	1.61
Diluted	$	1.41		$	1.34		$	1.46		$	1.69		$	1.55
Return on equity	17.9		%	17.0		%	17.6		%	19.1		%	17.3		%
Operating return on equity	18.1		%	16.6		%	17.4		%	19.6		%	17.5		%
Total assets, at period end	$	113,376		$	113,886		$	115,498		$	113,761		$	114,121
Total equity, at period end	$	22,837		$	23,052		$	24,747		$	25,135		$	25,357
Book value per share, at period end	$	32.59		$	33.14		$	35.69		$	36.86		$	37.93
Adjusted book value per share, at period end	$	32.68		$	33.83		$	35.10		$	36.20		$	37.26
Weighted average number of common shares outstanding (basic)	692.2			691.8			685.3			679.2			669.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)	720.8			720.4			714.6			711.0			701.2
Common shares outstanding at period end	696.2			691.4			689.5			678.3			665.3
Common stock dividends declared	$	160		$	180		$	180		$	176		$	174
Common stock repurchased:
Under repurchase program (1)
Shares	—			5.6			2.8			14.4			13.9
Cost	$	—		$	250		$	121		$	750		$	725
Other
Shares	0.5			0.1			—			0.7			0.6
Cost	$	22		$	3		$	5		$	31		$	31

(1)  Repurchased under the Board authorized repurchase program of $5 billion.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

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
	2006			2006		2006		2006			2007
Net income
Operating income	$	1,011		$	959	$	1,037	$	1,193		$	1,078
Net realized investment gains (losses)	(5		)	11		6		(4		)	8
Net income	$	1,006		$	970	$	1,043	$	1,189		$	1,086
Basic earnings per share
Operating income	$	1.46		$	1.39	$	1.51	$	1.75		$	1.61
Net realized investment gains (losses)	(0.01		)	0.01		0.01		—			0.01
Net income	$	1.45		$	1.40	$	1.52	$	1.75		$	1.62
Diluted earnings per share
Operating income	$	1.41		$	1.34	$	1.46	$	1.69		$	1.55
Net realized investment gains (losses)	—			0.02		0.01		(0.01		)	0.01
Net income	$	1.41		$	1.36	$	1.47	$	1.68		$	1.56

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Basic
Net income, as reported	$	1,006		$	970		$	1,043		$	1,189		$	1,086
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(2		)	(1		)
Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085
Diluted
Net income available to common shareholders - basic	$	1,005		$	969		$	1,042		$	1,187		$	1,085
Effect of dilutive securities:
Convertible preferred stock	1			1			1			2			1
Zero coupon convertible notes	1			1			1			1			1
Convertible junior subordinated notes	7			6			7			6			7
Net income available to common shareholders - diluted	$	1,014		$	977		$	1,051		$	1,196		$	1,094
Common Shares
Basic
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9
Diluted
Weighted average shares outstanding	692.2			691.8			685.3			679.2			669.9
Weighted average effects of dilutive securities:
Stock options and other incentive plans	5.9			6.0			6.8			9.5			9.1
Convertible preferred stock	3.6			3.5			3.4			3.2			3.1
Zero coupon convertible notes	2.4			2.4			2.4			2.4			2.4
Convertible junior subordinated notes	16.7			16.7			16.7			16.7			16.7
Diluted weighted average shares outstanding	720.8			720.4			714.6			711.0			701.2

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

See Glossary of Financial Measures and Description of Operating Segments on page 34.

2

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Revenues
Premiums	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295
Net investment income	875			874			858			910			960
Fee income	150			153			150			138			120
Net realized investment gains (losses)	(6		)	10			12			(5		)	14
Other revenues	40			37			36			98			38
Total revenues	6,050			6,255			6,316			6,469			6,427
Claims and expenses
Claims and claim adjustment expenses	3,042			3,153			3,047			3,002			3,189
Amortization of deferred acquisition costs	800			814			858			867			869
General and administrative expenses	794			866			869			929			833
Interest expense	76			78			88			82			76
Total claims and expenses	4,712			4,911			4,862			4,880			4,967
Income before income taxes	1,338			1,344			1,454			1,589			1,460
Income tax expense	332			374			411			400			374
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086
Other statistics:
Effective tax rate on net investment income	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%
Net investment income (after-tax)	$	670		$	673		$	668		$	701		$	737
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45
After-tax	$	—		$	44		$	10		$	13		$	29

See Glossary of Financial Measures and Description of Operating Segments on page 34.

3

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Underwriting gain	$	337		$	311		$	407		$	487		$	341
Net investment income	670			673			668			701			737
Other, including interest expense	4			(25		)	(38		)	5			—
Operating income	1,011			959			1,037			1,193			1,078
Net realized investment gains (losses)	(5		)	11			6			(4		)	8
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	58.9		%	59.5		%	56.7		%	55.1		%	59.2		%
Underwriting expense ratio	30.0		%	30.3		%	30.5		%	31.6		%	30.0		%
Combined ratio	88.9		%	89.8		%	87.2		%	86.7		%	89.2		%
Impact of catastrophes on combined ratio	0.0		%	1.3		%	0.3		%	0.4		%	0.9		%
Impact of prior year reserve development on combined ratio	-1.0		%	-2.0		%	-1.7		%	-3.0		%	-1.2		%

(1)  Before policyholder dividends.

(2)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other 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
	2006		2006		2006		2006		2007
Billing and policy fees	$	28	$	26	$	28	$	28	$	29
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47
Underwriting expenses	58		87		91		79		73
Total fee income	$	150	$	153	$	150	$	138	$	120

See Glossary of Financial Measures and Description of Operating Segments on page 34.

4

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Revenues
Premiums	$	4,991	$	5,181	$	5,260	$	5,328	$	5,295
Net investment income	875		874		858		910		960
Fee income	150		153		150		138		120
Other revenues	40		37		36		98		38
Total revenues	6,056		6,245		6,304		6,474		6,413
Claims and expenses
Claims and claim adjustment expenses	3,042		3,153		3,047		3,002		3,189
Amortization of deferred acquisition costs	800		814		858		867		869
General and administrative expenses	794		866		869		929		833
Interest expense	76		78		88		82		76
Total claims and expenses	4,712		4,911		4,862		4,880		4,967
Operating income before income taxes	1,344		1,334		1,442		1,594		1,446
Income tax expense	333		375		405		401		368
Operating income	$	1,011	$	959	$	1,037	$	1,193	$	1,078

See Glossary of Financial Measures and Description of Operating Segments on page 34.

5

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

	1Q		2Q			3Q			4Q			1Q
	2006		2006			2006			2006			2007
Statutory underwriting
Gross written premiums	$	5,810	$	6,197		$	6,100		$	5,932		$	6,071
Net written premiums	$	4,774	$	5,655		$	5,284		$	5,437		$	5,144
Net earned premiums	$	4,991	$	5,181		$	5,260		$	5,328		$	5,295
Losses and loss adjustment expenses	2,951		3,095			2,987			2,939			3,128
Underwriting expenses	1,493		1,609			1,524			1,644			1,670
Statutory underwriting gain	547		477			749			745			497
Policyholder dividends	9		6			5			6			7
Statutory underwriting gain after policyholder dividends	$	538	$	471		$	744		$	739		$	490
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	43,256	$	43,116		$	43,084		$	42,948		$	42,942
Increase (decrease) in reserves (1)	$	65	$	(140	)	$	(32	)	$	(136	)	$	(6	)
Statutory surplus	$	18,522	$	19,037		$	19,961		$	20,945		$	21,204
Net written premiums/surplus (2)	1.10:1		1.09:1			1.05:1			1.01:1			1.01:1

(1)  Includes a reinsurance to close transaction for Lloyd’s in 1Q 2006, increasing reserves by $538 million.

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

See Glossary of Financial Measures and Description of Operating Segments on page 34.

6

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Written premiums
Gross	$	5,810		$	6,197		$	6,100		$	5,932		$	6,071
Ceded	(1,036		)	(542		)	(816		)	(495		)	(927		)
Net	$	4,774		$	5,655		$	5,284		$	5,437		$	5,144
Earned premiums
Gross	$	5,733		$	5,899		$	6,006		$	6,120		$	6,001
Ceded	(742		)	(718		)	(746		)	(792		)	(706		)
Net	$	4,991		$	5,181		$	5,260		$	5,328		$	5,295

See Glossary of Financial Measures and Description of Operating Segments on page 34.

7

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Revenues
Premiums	$	2,643	$	2,715	$	2,737	$	2,781	$	2,763
Net investment income	636		635		610		657		694
Fee income	150		153		150		138		120
Other revenues	7		9		8		20		4
Total revenues	3,436		3,512		3,505		3,596		3,581
Claims and expenses
Claims and claim adjustment expenses	1,706		1,695		1,746		1,706		1,741
Amortization of deferred acquisition costs	376		374		397		400		403
General and administrative expenses	474		533		531		566		509
Interest expense	1		3		—		1		—
Total claims and expenses	2,557		2,605		2,674		2,673		2,653
Operating income before federal income taxes	879		907		831		923		928
Income taxes	228		252		218		220		250
Operating income	$	651	$	655	$	613	$	703	$	678

See Glossary of Financial Measures and Description of Operating Segments on page 34.

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
	2006			2006			2006			2006			2007
Underwriting gain	$	155		$	159		$	131		$	181		$	140
Net investment income	492			491			478			507			534
Other	4			5			4			15			4
Operating income	$	651		$	655		$	613		$	703		$	678
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.9		%	60.0		%	61.5		%	59.1		%	61.2		%
Underwriting expense ratio	29.8		%	30.1		%	30.5		%	31.8		%	30.3		%
Combined ratio	90.7		%	90.1		%	92.0		%	90.9		%	91.5		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%
Impact of prior year reserve development on combined ratio	-0.7		%	-1.2		%	1.7		%	-0.5		%	-0.9		%

(1)  Before policyholder dividends.

(2)  Billing and policy fees, which are a component of other revenues, are allocated as a reduction of other 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
	2006		2006		2006		2006		2007
Billing and policy fees	$	3	$	3	$	3	$	3	$	3
Fee income:
Loss and loss adjustment expenses	$	92	$	66	$	59	$	59	$	47
Underwriting expenses	58		87		91		79		73
Total fee income	$	150	$	153	$	150	$	138	$	120

See Glossary of Financial Measures and Description of Operating Segments on page 34.

9

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Statutory underwriting
Gross written premiums	$	3,254		$	3,314		$	3,257		$	3,222		$	3,387
Net written premiums	$	2,687		$	2,872		$	2,644		$	2,843		$	2,880
Net earned premiums	$	2,643		$	2,715		$	2,737		$	2,781		$	2,763
Losses and loss adjustment expenses	1,621			1,640			1,686			1,648			1,684
Underwriting expenses	756			813			761			857			866
Statutory underwriting gain	266			262			290			276			213
Policyholder dividends	5			3			2			3			3
Statutory underwriting gain after policyholder dividends	$	261		$	259		$	288		$	273		$	210
Other statistics
Effective tax rate on net investment income	22.8		%	22.6		%	21.6		%	22.8		%	23.1		%
Net investment income (after-tax)	$	492		$	491		$	478		$	507		$	534
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—
After-tax	$	—		$	—		$	—		$	—		$	—

See Glossary of Financial Measures and Description of Operating Segments on page 34.

10

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

	1Q		2Q		3Q		4Q			1Q
	2006		2006		2006		2006			2007
Net written premiums by market
Select Accounts	$	679	$	705	$	625	$	654		$	701
Commercial Accounts	575		548		575		678			641
National Accounts	268		298		254		315			255
Industry-Focused Underwriting	521		560		548		567			582
Target Risk Underwriting	398		463		377		391			417
Specialized Distribution	245		280		255		242			252
Total core	2,686		2,854		2,634		2,847			2,848
Business Insurance other	1		18		10		(4		)	32
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880
Net written premiums by product line
Commercial multi-peril	$	804	$	776	$	708	$	795		$	805
Workers’ compensation	540		529		474		592			614
Commercial automobile	467		522		509		515			506
Property	467		521		469		482			494
General liability	407		512		476		462			434
Other	2		12		8		(3		)	27
Total	$	2,687	$	2,872	$	2,644	$	2,843		$	2,880
National accounts
Additions to claim volume under administration (1)	$	890	$	742	$	650	$	722		$	836
Written fees	$	144	$	134	$	121	$	113		$	123

(1)  Includes new and renewal business.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

11

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Revenues
Premiums	$	788	$	839	$	850	$	844	$	844
Net investment income	103		102		108		116		121
Other revenues	5		6		5		10		5
Total revenues	896		947		963		970		970
Claims and expenses
Claims and claim adjustment expenses	421		445		462		466		451
Amortization of deferred acquisition costs	150		159		164		165		163
General and administrative expenses	126		142		134		134		145
Total claims and expenses	697		746		760		765		759
Operating income before federal income taxes	199		201		203		205		211
Income taxes	58		52		59		30		55
Operating income	$	141	$	149	$	144	$	175	$	156

See Glossary of Financial Measures and Description of Operating Segments on page 34.

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
	2006			2006			2006			2006			2007
Underwriting gain	$	60		$	68		$	59		$	79		$	62
Net investment income	77			77			82			89			91
Other	4			4			3			7			3
Operating income	$	141		$	149		$	144		$	175		$	156
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0		%	52.6		%	54.1		%	54.9		%	53.0		%
Underwriting expense ratio	35.0		%	35.8		%	34.9		%	35.5		%	36.4		%
Combined ratio	88.0		%	88.4		%	89.0		%	90.4		%	89.4		%
Impact of catastrophes on combined ratio	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%
Impact of prior year reserve development on combined ratio	0.0		%	-1.1		%	-0.2		%	-0.4		%	0.0		%

(1)  Before policyholder dividends.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

13

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Statutory underwriting
Gross written premiums	$	935		$	1,043		$	974		$	1,029		$	975
Net written premiums	$	515		$	1,002		$	912		$	964		$	600
Net earned premiums	$	788		$	839		$	850		$	844		$	844
Losses and loss adjustment expenses	415			442			461			462			447
Underwriting expenses	292			299			273			287			322
Statutory underwriting gain	81			98			116			95			75
Policyholder dividends	4			3			3			3			4
Statutory underwriting gain after policyholder dividends	$	77		$	95		$	113		$	92		$	71
Other statistics
Effective tax rate on net investment income	24.7		%	24.3		%	24.2		%	24.4		%	24.6		%
Net investment income (after-tax)	$	77		$	77		$	82		$	89		$	91
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	—		$	—		$	—		$	—
After-tax	$	—		$	—		$	—		$	—		$	—

See Glossary of Financial Measures and Description of Operating Segments on page 34.

14

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Net written premiums by market
Bond & Financial Products	$	293	$	660	$	664	$	638	$	311
International and Lloyd’s	222		342		248		326		289
Total	$	515	$	1,002	$	912	$	964	$	600
Net written premiums by product line
General liability	$	110	$	282	$	297	$	317	$	96
Fidelity & Surety	152		342		338		293		180
International	222		342		248		326		289
Other	31		36		29		28		35
Total	$	515	$	1,002	$	912	$	964	$	600

See Glossary of Financial Measures and Description of Operating Segments on page 34.

15

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Revenues
Premiums	$	1,560	$	1,627	$	1,673	$	1,703	$	1,688
Net investment income	134		137		140		137		145
Other revenues	24		22		23		25		24
Total revenues	1,718		1,786		1,836		1,865		1,857
Claims and expenses
Claims and claim adjustment expenses	915		1,013		839		830		997
Amortization of deferred acquisition costs	274		281		297		302		303
General and administrative expenses	183		197		200		224		170
Total claims and expenses	1,372		1,491		1,336		1,356		1,470
Operating income before federal income taxes	346		295		500		509		387
Income taxes	106		92		159		161		121
Operating income	$	240	$	203	$	341	$	348	$	266

See Glossary of Financial Measures and Description of Operating Segments on page 34.

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
	2006			2006			2006			2006			2007
Underwriting gain	$	122		$	84		$	217		$	226		$	139
Net investment income	102			105			108			106			112
Other	16			14			16			16			15
Operating income	$	240		$	203		$	341		$	348		$	266
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	58.7		%	62.2		%	50.2		%	48.7		%	59.0		%
Underwriting expense ratio	27.7		%	27.9		%	28.2		%	29.4		%	26.5		%
Combined ratio	86.4		%	90.1		%	78.4		%	78.1		%	85.5		%
Impact of catastrophes on combined ratio	0.0		%	4.1		%	0.9		%	1.3		%	2.7		%
Impact of prior year reserve development on combined ratio	-1.9		%	-3.6		%	-7.9		%	-8.2		%	-2.1		%

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	25	$	23	$	25	$	25	$	26

See Glossary of Financial Measures and Description of Operating Segments on page 34.

17

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Statutory underwriting
Gross written premiums	$	1,621		$	1,840		$	1,869		$	1,681		$	1,709
Net written premiums	$	1,572		$	1,781		$	1,728		$	1,630		$	1,664
Net earned premiums	$	1,560		$	1,627		$	1,673		$	1,703		$	1,688
Losses and loss adjustment expenses	915			1,013			840			829			997
Underwriting expenses	445			497			490			500			482
Statutory underwriting gain	$	200		$	117		$	343		$	374		$	209
Other statistics
Effective tax rate on net investment income	23.6		%	23.5		%	23.0		%	22.6		%	22.8		%
Net investment income (after-tax)	$	102		$	105		$	108		$	106		$	112
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	67		$	15		$	21		$	45
After-tax	$	—		$	44		$	10		$	13		$	29
Policies in force (in thousands)
Automobile	2,429			2,510			2,567			2,584			2,594
Homeowners and other	4,291			4,407			4,512			4,562			4,593

See Glossary of Financial Measures and Description of Operating Segments on page 34.

18

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Statutory underwriting
Gross written premiums	$	942		$	960		$	943		$	886		$	975
Net written premiums	$	932		$	951		$	934		$	875		$	965
Net earned premiums	$	872		$	910		$	939		$	951		$	939
Losses and loss adjustment expenses	590			626			598			543			595
Underwriting expenses	239			259			240			252			254
Statutory underwriting gain	$	43		$	25		$	101		$	156		$	90
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	67.7		%	68.7		%	63.7		%	57.1		%	63.3		%
Underwriting expense ratio	25.3		%	26.8		%	26.0		%	26.8		%	24.1		%
Combined ratio	93.0		%	95.5		%	89.7		%	83.9		%	87.4		%
Impact of catastrophes on combined ratio	0.0		%	0.4		%	0.0		%	0.0		%	0.1		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	3		$	—		$	—		$	1
After-tax	$	—		$	2		$	—		$	—		$	1
Policies in force (in thousands)	2,429			2,510			2,567			2,584			2,594
Change from prior year quarter	7.0		%	10.0		%	11.3		%	10.1		%	6.8		%
Change from prior quarter	3.5		%	3.3		%	2.3		%	0.7		%	0.4		%

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	16	$	15	$	16	$	16	$	17

See Glossary of Financial Measures and Description of Operating Segments on page 34.

19

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Statutory underwriting
Gross written premiums	$	679		$	880		$	926		$	795		$	734
Net written premiums	$	640		$	830		$	794		$	755		$	699
Net earned premiums	$	688		$	717		$	734		$	752		$	749
Losses and loss adjustment expenses	325			387			242			286			402
Underwriting expenses	206			238			250			248			228
Statutory underwriting gain	$	157		$	92		$	242		$	218		$	119
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	47.3		%	54.0		%	33.0		%	38.0		%	53.7		%
Underwriting expense ratio	30.8		%	29.3		%	31.1		%	32.8		%	29.4		%
Combined ratio	78.1		%	83.3		%	64.1		%	70.8		%	83.1		%
Impact of catastrophes on combined ratio	0.0		%	8.9		%	2.1		%	2.8		%	5.9		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	—		$	64		$	15		$	21		$	44
After-tax	$	—		$	42		$	10		$	13		$	28
Policies in force (in thousands)	4,291			4,407			4,512			4,562			4,593
Change from prior year quarter	6.3		%	7.8		%	8.7		%	8.1		%	7.0		%
Change from prior quarter	1.7		%	2.7		%	2.4		%	1.1		%	0.7		%

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

	1Q		2Q		3Q		4Q		1Q
	2006		2006		2006		2006		2007
Billing and policy fees	$	9	$	9	$	9	$	8	$	9

See Glossary of Financial Measures and Description of Operating Segments on page 34.

20

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Revenues
Net investment income	$	2		$	—		$	—		$	—		$	—
Other revenues (1)	4			—			—			43			5
Total revenues	6			—			—			43			5
Claims and expenses
Interest expense	75			75			88			81			76
General and administrative expenses	11			(6		)	4			5			9
Total claims and expenses	86			69			92			86			85
Operating loss before federal income tax benefit	(80		)	(69		)	(92		)	(43		)	(80		)
Income taxes	(59		)	(21		)	(31		)	(10		)	(58		)
Operating loss	$	(21	)	$	(48	)	$	(61	)	$	(33	)	$	(22	)

(1)  Other revenues in the fourth quarter of 2006 include a $42 million gain on the Company’s redemption of its 7.60%, $593 million subordinated debentures, representing the remaining unamortized fair value adjustment recorded at the merger date.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

21

The Travelers Companies, Inc.
Consolidated Balance Sheet (1)
(in millions)

	March 31,			December 31,
	2007 (1)			2006
Assets
Fixed maturities, available for sale at fair value (including $1,582 and $1,674 subject to securities lending) (amortized cost $62,716 and $62,244)	$	63,133		$	62,666
Equity securities, at fair value (cost $442 and $436)	481			473
Real estate	810			793
Short-term securities	4,886			4,938
Other investments	3,380			3,398
Total investments	72,690			72,268
Cash	378			459
Investment income accrued	795			827
Premiums receivable	6,156			6,181
Reinsurance recoverables	17,265			17,820
Ceded unearned premiums	1,479			1,243
Deferred acquisition costs	1,696			1,615
Deferred tax asset	1,713			1,536
Contractholder receivables	5,079			5,023
Goodwill	3,437			3,438
Intangible assets	920			764
Other assets	2,513			2,587
Total assets	$	114,121		$	113,761
Liabilities
Claims and claim adjustment expense reserves	$	58,821		$	59,288
Unearned premium reserves	11,240			11,228
Contractholder payables	5,079			5,023
Payables for reinsurance premiums	915			685
Debt	6,123			5,760
Other liabilities	6,586			6,642
Total liabilities	88,764			88,626
Shareholders’ equity
Preferred Stock Savings Plan - convertible preferred stock (0.4 shares issued and outstanding at both dates)	124			129
Common stock (1,750.0 shares authorized; 665.3 and 678.3 shares issued and outstanding)	18,634			18,530
Retained earnings	8,167			7,253
Accumulated other changes in equity from nonowner sources	417			452
Treasury stock, at cost (39.7 and 25.2 shares)	(1,985		)	(1,229		)
Total shareholders’ equity	25,357			25,135
Total liabilities and shareholders’ equity	$	114,121		$	113,761

(1) Preliminary and unaudited.

22

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

	March 31,		Pre-tax Book		December 31,		Pre-tax Book
	2007		Yield (1)		2006		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	26,459	5.12	%	$	27,035	5.09	%
Tax-exempt fixed maturities	36,674		4.17	%	35,631		4.17	%
Total fixed maturities	63,133		4.57	%	62,666		4.57	%
Non-redeemable preferred stocks	346		6.32	%	358		6.38	%
Common stocks	135				115
Total equity securities	481				473
Real estate	810				793
Short-term securities	4,886		5.42	%	4,938		5.45	%
Private equities	1,586				1,592
Arbitrage funds	950				984
Real estate joint ventures & other	766				743
Mortgage loans	51		7.71	%	53		7.22	%
Trading securities	27				26
Total other investments	3,380				3,398
Total investments	$	72,690			$	72,268
Net unrealized gain on investment securities, net of tax, included in shareholders’ equity	$	439			$	453

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

23

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

	March 31,		December 31,
	2007		2006
Fixed maturities
Mortgage-backed securities - principally obligations of U.S. Government agencies	$	7,477	$	7,589
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	2,328		2,718
Corporates (including redeemable preferreds)	14,966		14,900
Obligations of states and political subdivisions	36,956		35,907
Debt securities issued by foreign governments	1,406		1,552
Total fixed maturities	$	63,133	$	62,666

Fixed Maturities Quality Characteristics (1)

	March 31, 2007
	Amount		% of Total
Quality Ratings
Aaa	$	42,253	67.0	%
Aa	11,920		18.9
A	4,197		6.6
Baa	3,069		4.9
Total investment grade	61,439		97.4
Ba	772		1.2
B	711		1.1
Caa and lower	211		0.3
Total below investment grade	1,694		2.6
Total fixed maturities	$	63,133	100.0	%
Average weighted quality	AA1, 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	4.1

(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.

24

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Gross investment income
Fixed maturities	$	667		$	677		$	691		$	703		$	709
Short-term securities	60			60			81			84			73
Other	163			159			100			135			193
	890			896			872			922			975
Investment expenses	15			22			14			12			15
Net investment income, pre-tax	875			874			858			910			960
Income taxes	205			201			190			209			223
Net investment income, after-tax	$	670		$	673		$	668		$	701		$	737
Effective tax rate	23.5		%	23.0		%	22.1		%	23.0		%	23.2		%
Average invested assets (1)	$	69,701		$	70,491		$	72,050		$	72,808		$	72,737
Average yield pre-tax (1)	5.0		%	5.0		%	4.8		%	5.0		%	5.3		%
Average yield after-tax	3.8		%	3.8		%	3.7		%	3.9		%	4.1		%

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

25

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Net realized investment gains (losses)
Fixed maturities	$	—		$	(29	)	$	(6	)	$	2		$	9
Equity securities	14			2			7			(2		)	2
Other	(20		)	37			11			(5		)	3
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14
Related taxes	(1		)	(1		)	6			(1		)	6
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8
Gross investment gains (1)	$	125		$	101		$	86		$	80		$	60
Gross investment losses before impairments (1)	(121		)	(88		)	(61		)	(63		)	(37		)
Impairments	(10		)	(3		)	(13		)	(22		)	(9		)
Realized investment gains (losses) before tax	(6		)	10			12			(5		)	14
Related taxes	(1		)	(1		)	6			(1		)	6
Net realized investment gains (losses)	$	(5	)	$	11		$	6		$	(4	)	$	8

	March 31,			June 30,			September 30,		December 31,		March 31,
	2006			2006			2006		2006		2007
Net unrealized investment gains (losses), by asset type
Fixed maturities	$	(328	)	$	(917	)	$	440	$	422	$	417
Equity securities & other	217			174			173		258		252
Unrealized investment gains (losses) before tax	(111		)	(743		)	613		680		669
Related taxes	(50		)	(267		)	202		227		230
Balance, end of period	$	(61	)	$	(476	)	$	411	$	453	$	439

(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	$	71	$	34	$	14	$	25	$	18
Gross investment Treasury future losses	$	43	$	25	$	24	$	22	$	19

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

26

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

	March 31,			December 31,
	2007			2006
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	12,129		$	12,837
Allowance for uncollectible reinsurance	(766		)	(773		)
Net reinsurance recoverables	11,363			12,064
Mandatory pools and associations	2,160			1,998
Structured settlements	3,742			3,758
Total reinsurance recoverables	$	17,265		$	17,820

The Company’s top five reinsurer groups, including retroactive reinsurance, by reinsurance recoverable is as follows:

	A.M. Best Rating of Group’s	March 31,		December 31,
Reinsurer	Predominant Reinsurer	2007		2006
Swiss Re Group	A+ second highest of 16 ratings	$	1,528	$	1,478
Munich Re Group	A third highest of 16 ratings	1,049		1,125
Berkshire Hathaway Group	A++ highest of 16 ratings	790		900
American International Group	A+ second highest of 16 ratings	677		718
XL Capital Group	A+ second highest of 16 ratings	541		552

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 unasserted 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 recorded on the basis of periodic evaluations of balances due, reinsurer solvency, the Company’s experience and current economic conditions.  Of the total net recoverables due from reinsurers at March 31, 2007, after deducting mandatory pool and structured settlement balances, $8.9 billion, or 78%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 97% were rated A- or better.  The remaining 22% net recoverables from reinsurers was comprised of the following:  6% related to the Company’s participation in voluntary pools, 8% related to recoverables from captive insurance companies and 8% were balances from other companies not rated by A.M. Best Company.  In addition, $3.2 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at March 31, 2007.

The allowance for uncollectible reinsurance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, and other relevant factors.

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.

The structured settlements represent annuities that are purchased from life insurance companies to settle personal physical injury claims, with workers’ compensation claims comprising a significant proportion.  The Company retains the ultimate liability to the claimant in the event that the assigned company fails to pay, so the amount is reflected as a liability and as a recoverable for GAAP purposes.

27

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Business Insurance
Beginning of period	$	35,312		$	35,158		$	34,776		$	34,650		$	34,444
Incurred	1,621			1,640			1,686			1,648			1,684
Paid	(2,147		)	(2,070		)	(1,815		)	(1,868		)	(1,661		)
Acquired reserves, foreign exchange and other (1)	372			48			3			14			(11		)
End of period	$	35,158		$	34,776		$	34,650		$	34,444		$	34,456
Financial, Professional & International Insurance
Beginning of period	$	4,242		$	4,513		$	4,646		$	4,822		$	5,014
Incurred	415			442			461			462			447
Paid	(347		)	(366		)	(293		)	(318		)	(318		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	203			57			8			48			(152		)
End of period	$	4,513		$	4,646		$	4,822		$	5,014		$	4,991
Personal Insurance
Beginning of period	$	3,637		$	3,585		$	3,694		$	3,612		$	3,490
Incurred	915			1,013			840			829			997
Paid	(967		)	(904		)	(922		)	(951		)	(992		)
End of period	$	3,585		$	3,694		$	3,612		$	3,490		$	3,495
Total
Beginning of period	$	43,191		$	43,256		$	43,116		$	43,084		$	42,948
Incurred	2,951			3,095			2,987			2,939			3,128
Paid	(3,461		)	(3,340		)	(3,030		)	(3,137		)	(2,971		)
Acquired (sold) reserves, foreign exchange and other (1) (2)	575			105			11			62			(163		)
End of period	$	43,256		$	43,116		$	43,084		$	42,948		$	42,942
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—		$	—		$	155		$	—		$	—
Environmental	—			—			120			—			—
All other	(19		)	(34		)	(229		)	(14		)	(27		)
Prior year development excluding accretion	(19		)	(34		)	46			(14		)	(27		)
Accretion of discount	16			15			16			15			15
Total Business Insurance	(3		)	(19		)	62			1			(12		)
Financial, Professional & International Insurance	—			(9		)	(1		)	(4		)	—
Personal Insurance	(30		)	(58		)	(132		)	(139		)	(35		)
Total	$	(33	)	$	(86	)	$	(71	)	$	(142	)	$	(47	)

(1)  Acquired reserves include a reinsurance to close transaction for Lloyd’s in 1Q 2006, increasing reserves by $358 million and $180 million in Business Insurance and Financial, Professional & International Insurance, respectively.

(2)  Sold reserves include the sale of Afianzadora in 1Q 2007, decreasing reserves by $118 million in Financial, Professional & International Insurance.

See Glossary of Financial Measures and Description of Operating Segments on page 34.

28

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Asbestos reserves
Beginning reserves:
Direct	$	5,103		$	5,000		$	4,838		$	4,925		$	4,777
Ceded	(739		)	(720		)	(716		)	(746		)	(726		)
Net	4,364			4,280			4,122			4,179			4,051
Incurred losses and loss expenses:
Direct	—			—			196			—			—
Ceded	—			—			(41		)	—			—
Accretion of discount:
Direct	—			—			1			—			—
Ceded	—			—			—			—			—
Losses paid:
Direct	103			162			110			148			152
Ceded	(19		)	(4		)	(11		)	(20		)	(27		)
Ending reserves:
Direct	5,000			4,838			4,925			4,777			4,625
Ceded	(720		)	(716		)	(746		)	(726		)	(699		)
Net	$	4,280		$	4,122		$	4,179		$	4,051		$	3,926
Environmental reserves
Beginning reserves:
Direct	$	494		$	406		$	379		$	460		$	413
Ceded	(69		)	(19		)	(7		)	6			5
Net	425			387			372			466			418
Incurred losses and loss expenses:
Direct	—			—			108			—			—
Ceded	—			—			12			—			—
Losses paid:
Direct	88			27			27			47			49
Ceded	(50		)	(12		)	(1		)	1			(3		)
Ending reserves:
Direct	406			379			460			413			364
Ceded	(19		)	(7		)	6			5			8
Net	$	387		$	372		$	466		$	418		$	372

See Glossary of Financial Measures and Description of Operating Segments on page 34.

29

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

	March 31,			December 31,
Debt	2007			2006
Short-term debt
Commercial paper	$	100		$	100
5.75% Senior notes due March 15, 2007	—			500
5.01% Senior notes due August 16, 2007	442			442
3.75% Senior notes due March 15, 2008 (1)	400			—
Medium-term notes maturing in the following 12 months	42			72
Total short-term debt	984			1,114
Long-term debt
Medium-term notes with various maturities through 2010	170			170
3.75% Senior notes due March 15, 2008 (1)	—			400
Zero coupon convertible notes due 2009, effective yield 4.17%, callable on March 3, 1999	129			128
8.125% Senior notes due April 15, 2010 (1)	250			250
7.81% Private placement notes due on various dates through 2011	12			12
5.00% Senior notes due March 15, 2013 (1)	500			500
5.50% Senior notes due December 1, 2015	400			400
6.25% Senior notes due June 20, 2016 (1)	400			400
7.75% Senior notes due April 15, 2026	200			200
7.625% Subordinated debentures due December 15, 2027	125			125
8.47% Subordinated debentures due January 10, 2027 (2)	—			81
4.50% Convertible junior subordinated notes due April 15, 2032, callable April 18, 2007 (3)	893			893
6.375% Senior notes due March 15, 2033 (1)	500			500
6.75% Senior notes due June 20, 2036 (1)	400			400
8.50% Subordinated debentures due December 15, 2045	56			56
8.312% Subordinated debentures due July 1, 2046	73			73
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067	1,000			—
Total long-term debt	5,108			4,588
Unamortized fair value adjustment	95			109
Unamortized debt issuance costs	(64		)	(51		)
	5,139			4,646
Total debt	6,123			5,760
Preferred equity	124			129
Common equity (excluding SFAS 115)	24,794			24,553
Total capital	$	31,041		$	30,442
Total debt to capital	19.7		%	18.9		%

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

(2)  Redeemed on January 18, 2007. 

(3)  Redeemed on April 18, 2007.

30

The Travelers Companies, Inc.
Statutory to GAAP Shareholders’ Equity Reconciliation (1)
($ in millions)

	March 31,			December 31,
	2007 (1)			2006
Statutory capital and surplus	$	21,204		$	20,945
GAAP adjustments
Goodwill and intangible assets	4,143			3,985
Investments	868			993
Noninsurance companies	(4,107		)	(4,007		)
Deferred acquisition costs	1,696			1,615
Deferred federal income tax	577			411
Current federal income tax	(242		)	3
Reinsurance recoverables	587			587
Furniture, equipment & software	384			382
Employee benefits	71			74
Agents balances	83			83
Other	93			64
Total GAAP adjustments	4,153			4,190
GAAP shareholders’ equity	$	25,357		$	25,135

(1) Estimated and Preliminary

31

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Cash flows from operating activities
Net income	$	1,006		$	970		$	1,043		$	1,189		$	1,086
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	6			(10		)	(12		)	5			(14		)
Depreciation and amortization	197			197			213			201			205
Deferred federal income taxes	159			44			150			168			(188		)
Amortization of deferred policy acquisition costs	800			814			858			867			869
Premium balances receivable	110			(358		)	154			37			17
Reinsurance recoverables	636			370			434			558			548
Deferred acquisition costs	(836		)	(874		)	(880		)	(837		)	(967		)
Claim and claim adjustment expense reserves	(1,137		)	(509		)	(351		)	(568		)	(350		)
Unearned premium reserves	103			272			87			(162		)	60
Trading account activities	4			2			—			—			(1		)
Excess tax benefits from share-based payment arrangements	(5		)	(1		)	(2		)	(8		)	(9		)
Gain on redemption of subordinated debentures	—			—			—			(42		)	—
Other	(481		)	(68		)	13			248			(389		)
Net cash provided by operating activities	562			849			1,707			1,656			867
Cash flows from investing activities
Proceeds from maturities of investments
Fixed maturities	1,571			1,079			1,758			1,402			1,637
Proceeds from sales of investments
Fixed maturities	1,320			1,854			452			775			729
Equity securities	94			32			98			61			25
Purchase of investments
Fixed maturities	(3,983		)	(4,066		)	(2,191		)	(3,605		)	(3,006		)
Equity securities	(47		)	(17		)	(27		)	8			(29		)
Real estate	(8		)	(6		)	(9		)	(52		)	(26		)
Short-term securities, (purchases) sales, net	67			(160		)	(1,275		)	1,283			(103		)
Other investments, net	154			(5		)	149			108			186
Securities transactions in course of settlement	490			19			(159		)	97			305
Other	(38		)	(84		)	(93		)	(110		)	(203		)
Net cash provided (used) by investing activities	(380		)	(1,354		)	(1,297		)	(33		)	(485		)

32

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

	1Q			2Q			3Q			4Q			1Q
	2006			2006			2006			2006			2007
Cash flows from financing activities
Issuance of debt	—			786			—			—			986
Payment of debt	(4		)	—			(42		)	(760		)	(611		)
Treasury stock acquired - net employee share-based compensation	(16		)	(1		)	—			—			(26		)
Treasury stock acquired - share repurchase program	—			(230		)	(137		)	(736		)	(698		)
Issuance of common stock - employee stock options	32			26			31			127			54
Dividends to shareholders	(161		)	(182		)	(181		)	(178		)	(175		)
Excess tax benefits from share-based payment arrangements	5			1			2			8			9
Other	(2		)	3			(1		)	17			(1		)
Net cash provided (used) by financing activities	(146		)	403			(328		)	(1,522		)	(462		)
Effect of exchange rate changes on cash	—			3			1			1			(1		)
Net increase (decrease) in cash	36			(99		)	83			102			(81		)
Cash at beginning of period	337			373			274			357			459
Cash at end of period	$	373		$	274		$	357		$	459		$	378
Income taxes paid (received)	$	(5	)	$	258		$	338		$	270		$	88
Interest paid	$	85		$	79		$	86		$	108		$	75

33

The Travelers Companies, Inc.
Financial Supplement - First Quarter 2007
Glossary of Financial Measures and Description of Operating 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 statement of income or required to be disclosed in the notes to financial statements, and 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 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.

Operating income (loss) is net income (loss) excluding the after-tax impact of net realized investment gains (losses).  Operating income (loss) per share is operating income (loss) on a per share basis.

Return on equity is the ratio of net income to average equity.  Operating return on equity is the ratio of operating income to average equity excluding net unrealized investment gains and losses, net of tax. 

In the opinion of the Company’s management, operating income, operating income per share and operating return on equity are meaningful indicators of underwriting and operating results.  These measures exclude net realized investment gains or losses which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.  Internally, the Company’s management uses operating income, operating income per share and operating return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis.

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses. 

A catastrophe is a severe loss, resulting from natural and manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorism and other similar events.  Each catastrophe has unique characteristics.  Catastrophes are not predictable as to timing or amount in advance, and therefore their effects are not included in earnings or claims and claim adjustment expense reserves prior to occurrence.  A catastrophe may also result in the payment of reinstatement premiums and assessments from various pools.  In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

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.  Loss reserve development may be related to prior year or current year development.  In the opinion of the Company’s management, discussion of prior year loss reserve development is useful to investors as it allows them to assess the impact between prior year and current year development on current earnings and changes in claims and claim adjustment expense reserve levels from period to period.

GAAP combined ratio is the sum of the loss and loss adjustment expense ratio (loss and LAE ratio), the underwriting expense ratio and, where applicable, the ratio of dividends to policyholders to net premiums earned.  For GAAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses reduced by an allocation of fee income to net earned premiums.  The underwriting expense ratio is the ratio of underwriting expenses incurred reduced by an allocation of fee income, and billing and policy fees to net earned premiums. A GAAP combined ratio under 100% generally indicates an underwriting profit. A GAAP combined ratio over 100% generally indicates an underwriting loss. The GAAP combined ratio is an operating statistic that includes GAAP measures in the numerator and the denominator.

Gross written premiums reflect the direct and assumed contractually determined amounts charged to the policyholders for the effective period of the contract based on the terms and conditions of the insurance contract.  Gross written premiums are a measure of overall business volume.

Adjusted book value per share represents assets less liabilities and preferred shareholders’ equity excluding the after-tax impact of net unrealized investment gains and losses, divided by the number of 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 on a nominal basis as it removes the effect of changing prices on invested assets, which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.

Travelers has organized its businesses into the following operating and reporting segments, beginning with the third quarter 2006:

Business Insurance - The Business Insurance segment offers a broad array of property and casualty insurance and insurance-related services in the United States.  Business Insurance is organized into the following 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 Accounts; and Specialized Distribution including Northland and National Programs.  Business Insurance also includes the Special Liability Group and policies written by Gulf (primarily management and professional liability coverages), and other runoff operations, which collectively are referred to as Business Insurance Other.

Financial, Professional & International Insurance - The Financial, Professional & International Insurance segment includes surety, crime, and financial liability businesses which primarily use credit-based underwriting processes, as well as property and casualty products that are predominantly marketed on an international basis.  The businesses in Financial, Professional & International Insurance are Bond & Financial Products and International and Lloyd’s.

Personal Insurance writes virtually all types of property and casualty insurance covering personal risks.  The primary coverages in this segment are personal automobile and homeowners insurance sold to individuals.

Prior quarter segment results have been reclassified from the historical presentation to conform with current business segment definitions where applicable.  The Company’s historical Commercial and Specialty segments have been realigned into two new segments:  the Business Insurance segment and the Financial, Professional & International Insurance segment.  As a result, prior quarter results of certain businesses have been disaggregated from the historical Specialty segment and are now reported in the Business Insurance segment.  In addition, the Personal segment has been renamed Personal Insurance.

34