The Travelers Companies, Inc. (TRV) 8-K Travelers Reports Second Quarter 2008 Net Income of $942 million, or $1.54 per Diluted Share

Exhibit 99.2

The Travelers Companies, Inc. Financial Supplement - Second Quarter 2008

	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 Reportable Business 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)

														YTD			YTD
	1Q		2Q			3Q		4Q		1Q		2Q		2Q			2Q
	2007		2007			2007		2007		2008		2008		2007			2008
Net income	$	1,086	$	1,254		$	1,198	$	1,063	$	967	$	942	$	2,340		$	1,909
Net income per share:
Basic	$	1.62	$	1.90		$	1.85	$	1.67	$	1.57	$	1.57	$	3.52		$	3.14
Diluted	$	1.56	$	1.86		$	1.81	$	1.64	$	1.54	$	1.54	$	3.41		$	3.08
Operating income	$	1,078	$	1,167		$	1,198	$	1,057	$	1,008	$	918	$	2,245		$	1,926
Operating income per share:
Basic	$	1.61	$	1.77		$	1.85	$	1.66	$	1.63	$	1.53	$	3.38		$	3.17
Diluted	$	1.55	$	1.73		$	1.81	$	1.63	$	1.61	$	1.50	$	3.27		$	3.11
Return on equity		17.3%		19.9%			18.6%		16.1%		14.6%		14.4%		18.6%			14.5%
Operating return on equity		17.5%		18.6%			18.6%		16.3%		15.6%		14.3%		18.0%			14.9%
Total assets, at period end	$	115,688	$	115,361		$	115,644	$	115,224	$	114,144	$	113,625	$	115,361		$	113,625
Total equity, at period end	$	25,357	$	25,322		$	26,307	$	26,616	$	26,388	$	25,923	$	25,322		$	25,923
Book value per share, at period end	$	37.93	$	38.36		$	40.54	$	42.22	$	43.31	$	43.56	$	38.36		$	43.56
Less: Net unrealized investment gains (losses), net of tax		0.67		(0.40	)		0.34		0.99		0.95		0.11		(0.40	)		0.11
Adjusted book value per share, at period end	$	37.26	$	38.76		$	40.20	$	41.23	$	42.36	$	43.45	$	38.76		$	43.45
Weighted average number of common shares outstanding (basic)		669.9		658.6			648.4		634.5		616.2		598.7		664.2			607.4
Weighted average number of common shares outstanding and common stock equivalents (diluted)		701.2		676.0			661.9		648.7		628.1		610.8		688.6			619.5
Common shares outstanding at period end		665.3		657.0			646.1		627.8		606.9		592.8		657.0			592.8
Common stock dividends declared	$	174	$	192		$	188	$	184	$	178	$	180	$	366		$	358
Common stock repurchased:
Under repurchase authorization (1)
Shares		13.9		11.4			11.7		19.0		20.8		15.3		25.3			36.1
Cost	$	725	$	622		$	600	$	1,000	$	1,000	$	750	$	1,347		$	1,750
Other
Shares		0.6		0.7			0.2		0.2		0.6		0.1		1.3			0.7
Cost	$	31	$	36		$	10	$	12	$	28	$	7	$	67		$	35

(1)  Repurchased under Board of Director authorization.

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

Page 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
	2007			2007			2007			2007			2008			2008			2007			2008
Net income
Operating income	$	1,078		$	1,167		$	1,198		$	1,057		$	1,008		$	918		$	2,245		$	1,926
Net realized investment gains (losses)	8			87			-			6			(41		)	24			95			(17		)
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967		$	942		$	2,340		$	1,909
Basic earnings per share
Operating income	$	1.61		$	1.77		$	1.85		$	1.66		$	1.63		$	1.53		$	3.38		$	3.17
Net realized investment gains (losses)	0.01			0.13			-			0.01			(0.06		)	0.04			0.14			(0.03		)
Net income	$	1.62		$	1.90		$	1.85		$	1.67		$	1.57		$	1.57		$	3.52		$	3.14
Diluted earnings per share
Operating income	$	1.55		$	1.73		$	1.81		$	1.63		$	1.61		$	1.50		$	3.27		$	3.11
Net realized investment gains (losses)	0.01			0.13			-			0.01			(0.07		)	0.04			0.14			(0.03		)
Net income	$	1.56		$	1.86		$	1.81		$	1.64		$	1.54		$	1.54		$	3.41		$	3.08
Adjustments to net income and weighted average shares
for net income EPS calculations: (1)
																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2007			2007			2007			2007			2008			2008			2007			2008
Basic
Net income, as reported	$	1,086		$	1,254		$	1,198		$	1,063		$	967		$	942		$	2,340		$	1,909
Preferred stock dividends, net of taxes	(1		)	(1		)	(1		)	(1		)	(1		)	(1		)	(2		)	(2		)
Net income available to common shareholders - basic	$	1,085		$	1,253		$	1,197		$	1,062		$	966		$	941		$	2,338		$	1,907
Diluted
Net income available to common shareholders - basic	$	1,085		$	1,253		$	1,197		$	1,062		$	966		$	941		$	2,338		$	1,907
Effect of dilutive securities:
Convertible preferred stock	1			1			1			1			1			1			2			2
Zero coupon convertible notes	1			1			1			1			1			1			2			2
Convertible junior subordinated notes (2)	7			1			-			-			-			-			8			-
Net income available to common shareholders - diluted	$	1,094		$	1,256		$	1,199		$	1,064		$	968		$	943		$	2,350		$	1,911
Common Shares
Basic
Weighted average shares outstanding	669.9			658.6			648.4			634.5			616.2			598.7			664.2			607.4
Diluted
Weighted average shares outstanding	669.9			658.6			648.4			634.5			616.2			598.7			664.2			607.4
Weighted average effects of dilutive securities:
Stock options and other incentive plans	9.1			8.9			8.3			9.0			6.9			7.1			9.1			7.1
Convertible preferred stock	3.1			3.0			2.8			2.8			2.6			2.6			3.0			2.6
Zero coupon convertible notes	2.4			2.4			2.4			2.4			2.4			2.4			2.4			2.4
Convertible junior subordinated notes (2)	16.7			3.1			-			-			-			-			9.9			-
Diluted weighted average shares outstanding	701.2			676.0			661.9			648.7			628.1			610.8			688.6			619.5

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

(2)  Redeemed in April 2007.

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

Page 2

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

														YTD		YTD
	1Q		2Q		3Q		4Q		1Q			2Q		2Q		2Q
	2007		2007		2007		2007		2008			2008		2007		2008
Revenues
Premiums	$	5,295	$	5,327	$	5,416	$	5,432	$	5,340		$	5,357	$	10,622	$	10,697
Net investment income		960		990		929		882		815			778		1,950		1,593
Fee income		120		127		148		113		105			90		247		195
Net realized investment gains (losses)		14		128		-		12		(62	)		36		142		(26	)
Other revenues		38		1		33		52		34			34		39		68
Total revenues		6,427		6,573		6,526		6,491		6,232			6,295		13,000		12,527
Claims and expenses
Claims and claim adjustment expenses		3,189		3,096		2,985		3,127		3,021			3,092		6,285		6,113
Amortization of deferred acquisition costs		869		915		956		966		954			961		1,784		1,915
General and administrative expenses		833		836		817		866		853			864		1,669		1,717
Interest expense		76		85		94		91		90			91		161		181
Total claims and expenses		4,967		4,932		4,852		5,050		4,918			5,008		9,899		9,926
Income before income taxes		1,460		1,641		1,674		1,441		1,314			1,287		3,101		2,601
Income tax expense		374		387		476		378		347			345		761		692
Net income	$	1,086	$	1,254	$	1,198	$	1,063	$	967		$	942	$	2,340	$	1,909
Other statistics:
Effective tax rate on net investment income		23.2%		23.4%		22.2%		21.1%		20.2%			19.8%		23.3%		20.0%
Net investment income (after-tax)	$	737	$	758	$	724	$	696	$	650		$	624	$	1,495	$	1,274
Catastrophes, net of reinsurance:
Pre-tax	$	45	$	40	$	14	$	68	$	95		$	356	$	85	$	451
After-tax	$	29	$	26	$	9	$	45	$	62		$	231	$	55	$	293

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

Page 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
	2007			2007			2007			2007			2008			2008			2007			2008
Underwriting gain	$	341		$	449		$	520		$	389		$	401		$	338		$	790		$	739
Net investment income		737			758			724			696			650			624			1,495			1,274
Other, including interest expense		-			(40	)		(46	)		(28	)		(43	)		(44	)		(40	)		(87	)
Operating income		1,078			1,167			1,198			1,057			1,008			918			2,245			1,926
Net realized investment gains (losses)		8			87			-			6			(41	)		24			95			(17	)
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967		$	942		$	2,340		$	1,909
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio		59.2	%		57.1	%		53.6	%		56.6	%		55.7	%		57.0	%		58.1	%		56.3	%
Underwriting expense ratio		30.0	%		30.7	%		30.8	%		31.8	%		31.9	%		32.3	%		30.4	%		32.2	%
Combined ratio		89.2	%		87.8	%		84.4	%		88.4	%		87.6	%		89.3	%		88.5	%		88.5	%
Impact of catastrophes on combined ratio		0.9	%		0.8	%		0.3	%		1.3	%		1.8	%		6.6	%		0.8	%		4.2	%
Impact of prior year reserve development on combined ratio		-1.2	%		-2.4	%		-4.3	%		-2.4	%		-7.5	%		-9.8	%		-1.8	%		-8.6	%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Billing and policy fees	$	29	$	25	$	26	$	27	$	27	$	26	$	54	$	53
Fee income:
Loss and loss adjustment expenses	$	47	$	48	$	71	$	47	$	43	$	30	$	95	$	73
Underwriting expenses		73		79		77		66		62		60		152		122
Total fee income	$	120	$	127	$	148	$	113	$	105	$	90	$	247	$	195

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

Page 4

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Revenues
Premiums	$	5,295	$	5,327	$	5,416	$	5,432	$	5,340	$	5,357	$	10,622	$	10,697
Net investment income		960		990		929		882		815		778		1,950		1,593
Fee income		120		127		148		113		105		90		247		195
Other revenues		38		1		33		52		34		34		39		68
Total revenues		6,413		6,445		6,526		6,479		6,294		6,259		12,858		12,553
Claims and expenses
Claims and claim adjustment expenses		3,189		3,096		2,985		3,127		3,021		3,092		6,285		6,113
Amortization of deferred acquisition costs		869		915		956		966		954		961		1,784		1,915
General and administrative expenses		833		836		817		866		853		864		1,669		1,717
Interest expense		76		85		94		91		90		91		161		181
Total claims and expenses		4,967		4,932		4,852		5,050		4,918		5,008		9,899		9,926
Operating income before income taxes		1,446		1,513		1,674		1,429		1,376		1,251		2,959		2,627
Income tax expense		368		346		476		372		368		333		714		701
Operating income	$	1,078	$	1,167	$	1,198	$	1,057	$	1,008	$	918	$	2,245	$	1,926

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

Page 5

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

																	YTD		YTD
	1Q			2Q		3Q				4Q		1Q			2Q		2Q		2Q
	2007			2007		2007				2007		2008			2008		2007		2008
Statutory underwriting
Gross written premiums	$	6,071		$	6,262	$	6,097			$	5,768	$	5,933		$	6,061	$	12,333	$	11,994
Net written premiums	$	5,144		$	5,714	$	5,394		��	$	5,366	$	5,188		$	5,629	$	10,858	$	10,817
Net earned premiums	$	5,295		$	5,327	$	5,416			$	5,432	$	5,340		$	5,357	$	10,622	$	10,697
Losses and loss adjustment expenses	3,128			3,059		2,921				3,067		2,978			3,118		6,187		6,096
Underwriting expenses	1,670			1,732		1,694				1,676		1,706			1,766		3,402		3,472
Statutory underwriting gain	497			536		801				689		656			473		1,033		1,129
Policyholder dividends	7			6		11				8		7			9		13		16
Statutory underwriting gain after policyholder dividends	$	490		$	530	$	790			$	681	$	649		$	464	$	1,020	$	1,113
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	42,942		$	43,029	$	43,000			$	43,068	$	42,840		$	42,885	$	43,029	$	42,885
Increase (decrease) in reserves	$	(6	)	$	87	$	(29	)		$	68	$	(228	)	$	45	$	81	$	(183	)
Statutory surplus	$	21,204		$	21,843	$	22,221			$	22,878	$	22,353		$	22,288	$	21,843	$	22,288
Net written premiums/surplus (1)	1.01:1			0.99:1		0.98:1				0.94:1		0.97:1			0.97:1		0.99:1		0.97:1

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

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

Page 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
	2007			2007			2007			2007			2008			2008			2007			2008
Written premiums
Gross	$	6,071		$	6,262		$	6,097		$	5,768		$	5,933		$	6,061		$	12,333		$	11,994
Ceded	(927		)	(548		)	(703		)	(402		)	(745		)	(432		)	(1,475		)	(1,177		)
Net	$	5,144		$	5,714		$	5,394		$	5,366		$	5,188		$	5,629		$	10,858		$	10,817
Earned premiums
Gross	$	6,001		$	6,031		$	6,073		$	6,075		$	5,932		$	5,957		$	12,032		$	11,889
Ceded	(706		)	(704		)	(657		)	(643		)	(592		)	(600		)	(1,410		)	(1,192		)
Net	$	5,295		$	5,327		$	5,416		$	5,432		$	5,340		$	5,357		$	10,622		$	10,697

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

Page 7

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Revenues
Premiums	$	2,763	$	2,802	$	2,850	$	2,868	$	2,786	$	2,781	$	5,565	$	5,567
Net investment income	694		717		664		633		573		540		1,411		1,113
Fee income	120		127		148		113		105		90		247		195
Other revenues	4		10		1		9		6		7		14		13
Total revenues	3,581		3,656		3,663		3,623		3,470		3,418		7,237		6,888
Claims and expenses
Claims and claim adjustment expenses	1,741		1,664		1,594		1,674		1,558		1,556		3,405		3,114
Amortization of deferred acquisition costs	403		435		451		453		451		451		838		902
General and administrative expenses	509		503		504		512		516		516		1,012		1,032
Interest expense	-		-		1		-		-		-		-		-
Total claims and expenses	2,653		2,602		2,550		2,639		2,525		2,523		5,255		5,048
Operating income before federal income taxes	928		1,054		1,113		984		945		895		1,982		1,840
Income taxes	250		249		310		255		262		237		499		499
Operating income	$	678	$	805	$	803	$	729	$	683	$	658	$	1,483	$	1,341

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

Page 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
	2007		2007		2007		2007		2008		2008		2007		2008
Underwriting gain	$	140	$	249	$	284	$	221	$	219	$	217	$	389	$	436
Net investment income	534		550		518		502		460		436		1,084		896
Other	4		6		1		6		4		5		10		9
Operating income	$	678	$	805	$	803	$	729	$	683	$	658	$	1,483	$	1,341
GAAP Combined ratio (1) (2)
Loss and loss adjustment expense ratio	61.2%		57.6%		53.3%		56.6%		54.2%		54.7%		59.3%		54.5%
Underwriting expense ratio	30.3%		30.5%		30.7%		31.2%		32.4%		32.4%		30.4%		32.4%
Combined ratio	91.5%		88.1%		84.0%		87.8%		86.6%		87.1%		89.7%		86.9%
Impact of catastrophes on combined ratio	0.0%		0.0%		0.0%		0.1%		2.1%		6.6%		0.0%		4.4%
Impact of prior year reserve development on combined ratio	-0.9%		-2.1%		-5.9%		-1.7%		-11.2%		-12.8%		-1.6%		-12.0%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Billing and policy fees	$	3	$	3	$	3	$	4	$	3	$	4	$	6	$	7
Fee income:
Loss and loss adjustment expenses	$	47	$	48	$	71	$	47	$	43	$	30	$	95	$	73
Underwriting expenses	73		79		77		66		62		60		152		122
Total fee income	$	120	$	127	$	148	$	113	$	105	$	90	$	247	$	195

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

Page 9

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	3,387	$	3,321	$	3,243	$	3,066	$	3,308	$	3,087	$	6,708	$	6,395
Net written premiums	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911	$	2,805	$	5,815	$	5,716
Net earned premiums	$	2,763	$	2,802	$	2,850	$	2,868	$	2,786	$	2,781	$	5,565	$	5,567
Losses and loss adjustment expenses	1,684		1,628		1,530		1,616		1,517		1,576		3,312		3,093
Underwriting expenses	866		882		870		867		903		897		1,748		1,800
Statutory underwriting gain	213		292		450		385		366		308		505		674
Policyholder dividends	3		3		5		4		4		6		6		10
Statutory underwriting gain after policyholder dividends	$	210	$	289	$	445	$	381	$	362	$	302	$	499	$	664
Other statistics
Effective tax rate on net investment income	23.1%		23.3%		22.0%		20.8%		19.7%		19.2%		23.2%		19.5%
Net investment income (after-tax)	$	534	$	550	$	518	$	502	$	460	$	436	$	1,084	$	896
Catastrophes, net of reinsurance:
Pre-tax	$	-	$	-	$	-	$	4	$	57	$	185	$	-	$	242
After-tax	$	-	$	-	$	-	$	3	$	37	$	120	$	-	$	157

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

Page 10

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Net written premiums by market
Select Accounts	$	701	$	731	$	637	$	642	$	708	$	724	$	1,432	$	1,432
Commercial Accounts	641		581		615		681		673		550		1,222		1,223
National Accounts	255		286		245		270		246		241		541		487
Industry-Focused Underwriting	582		580		584		555		613		584		1,162		1,197
Target Risk Underwriting	417		475		394		379		423		445		892		868
Specialized Distribution	252		276		243		244		244		259		528		503
Total core	2,848		2,929		2,718		2,771		2,907		2,803		5,777		5,710
Business Insurance other	32		6		8		6		4		2		38		6
Total	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911	$	2,805	$	5,815	$	5,716
Net written premiums by product line
Commercial multi-peril	$	805	$	778	$	713	$	770	$	791	$	726	$	1,583	$	1,517
Workers’ compensation	614		553		538		562		674		566		1,167		1,240
Commercial automobile	506		526		493		486		500		476		1,032		976
Property	494		549		476		471		482		515		1,043		997
General liability	434		527		501		481		462		520		961		982
Other	27		2		5		7		2		2		29		4
Total	$	2,880	$	2,935	$	2,726	$	2,777	$	2,911	$	2,805	$	5,815	$	5,716
National accounts
Additions to claim volume under administration (1)	$	836	$	640	$	554	$	641	$	712	$	522	$	1,476	$	1,234
Written fees	$	123	$	104	$	100	$	93	$	103	$	80	$	227	$	183

(1)  Includes new and renewal business.

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

Page 11

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Revenues
Premiums	$	844	$	844	$	854	$	842	$	847	$	852	$	1,688	$	1,699
Net investment income	121		125		126		122		122		120		246		242
Other revenues	5		6		5		13		5		8		11		13
Total revenues	970		975		985		977		974		980		1,945		1,954
Claims and expenses
Claims and claim adjustment expenses	451		464		419		403		390		376		915		766
Amortization of deferred acquisition costs	163		160		166		165		159		163		323		322
General and administrative expenses	145		146		144		155		144		149		291		293
Interest expense	-		-		-		-		-		1		-		1
Total claims and expenses	759		770		729		723		693		689		1,529		1,382
Operating income before federal income taxes	211		205		256		254		281		291		416		572
Income taxes	55		53		73		70		73		87		108		160
Operating income	$	156	$	152	$	183	$	184	$	208	$	204	$	308	$	412

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

Page 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
	2007		2007		2007		2007		2008		2008		2007		2008
Underwriting gain	$	62	$	53	$	84	$	83	$	112	$	107	$	115	$	219
Net investment income	91		95		95		94		93		92		186		185
Other	3		4		4		7		3		5		7		8
Operating income	$	156	$	152	$	183	$	184	$	208	$	204	$	308	$	412
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio	53.0%		54.7%		48.3%		47.4%		45.7%		43.7%		53.8%		44.7%
Underwriting expense ratio	36.4%		36.3%		36.3%		37.9%		35.7%		36.7%		36.4%		36.2%
Combined ratio	89.4%		91.0%		84.6%		85.3%		81.4%		80.4%		90.2%		80.9%
Impact of catastrophes on combined ratio	0.0%		0.0%		0.0%		0.0%		0.0%		0.6%		0.0%		0.3%
Impact of prior year reserve development on combined ratio	0.0%		-1.7%		-4.8%		-4.3%		-7.4%		-15.5%		-0.9%		-11.5%

(1)  Before policyholder dividends.

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

Page 13

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	975	$	1,063	$	978	$	1,021	$	946	$	1,065	$	2,038	$	2,011
Net written premiums	$	600	$	984	$	918	$	963	$	644	$	985	$	1,584	$	1,629
Net earned premiums	$	844	$	844	$	854	$	842	$	847	$	852	$	1,688	$	1,699
Losses and loss adjustment expenses	447		463		419		401		387		383		910		770
Underwriting expenses	322		314		302		305		311		317		636		628
Statutory underwriting gain	75		67		133		136		149		152		142		301
Policyholder dividends	4		3		6		4		3		3		7		6
Statutory underwriting gain after policyholder dividends	$	71	$	64	$	127	$	132	$	146	$	149	$	135	$	295
Other statistics
Effective tax rate on net investment income	24.6%		24.5%		24.0%		23.6%		23.5%		23.5%		24.5%		23.5%
Net investment income (after-tax)	$	91	$	95	$	95	$	94	$	93	$	92	$	186	$	185
Catastrophes, net of reinsurance:
Pre-tax	$	-	$	-	$	-	$	-	$	-	$	6	$	-	$	6
After-tax	$	-	$	-	$	-	$	-	$	-	$	4	$	-	$	4

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

Page 14

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Net written premiums by market
Bond & Financial Products excluding Afianzadora Insurgentes	$	292	$	652	$	655	$	604	$	378	$	621	$	944	$	999
Afianzadora Insurgentes (1)	19		6		-		-		-		-		25		-
Total Bond & Financial Products	311		658		655		604		378		621		969		999
International	289		326		263		359		266		364		615		630
Total	$	600	$	984	$	918	$	963	$	644	$	985	$	1,584	$	1,629
Net written premiums by product line
General liability	$	96	$	275	$	284	$	287	$	101	$	259	$	371	$	360
Fidelity & surety	180		344		341		287		239		328		524		567
International	289		326		263		359		266		364		615		630
Other	35		39		30		30		38		34		74		72
Total	$	600	$	984	$	918	$	963	$	644	$	985	$	1,584	$	1,629

(1)  In March 2007, the Company completed the sale of its Mexican surety subsidiary, Afianzadora Insurgentes.

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

Page 15

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Revenues
Premiums	$	1,688	$	1,681	$	1,712	$	1,722	$	1,707	$	1,724	$	3,369	$	3,431
Net investment income		145		148		139		127		120		118		293		238
Other revenues		24		21		23		22		21		19		45		40
Total revenues		1,857		1,850		1,874		1,871		1,848		1,861		3,707		3,709
Claims and expenses
Claims and claim adjustment expenses		997		968		972		1,050		1,073		1,160		1,965		2,233
Amortization of deferred acquisition costs		303		320		339		348		344		347		623		691
General and administrative expenses		170		177		162		190		181		193		347		374
Total claims and expenses		1,470		1,465		1,473		1,588		1,598		1,700		2,935		3,298
Operating income before federal income taxes		387		385		401		283		250		161		772		411
Income taxes		121		109		125		82		69		39		230		108
Operating income	$	266	$	276	$	276	$	201	$	181	$	122	$	542	$	303

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

Page 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
	2007		2007		2007		2007		2008		2008		2007		2008
Underwriting gain	$	139	$	147	$	152	$	85	$	70	$	14	$	286	$	84
Net investment income		112		113		111		100		97		96		225		193
Other		15		16		13		16		14		12		31		26
Operating income	$	266	$	276	$	276	$	201	$	181	$	122	$	542	$	303
GAAP Combined ratio (1)
Loss and loss adjustment expense ratio		59.0%		57.6%		56.8%		61.0%		62.9%		67.3%		58.3%		65.1%
Underwriting expense ratio		26.5%		28.3%		28.0%		29.8%		29.3%		30.0%		27.4%		29.7%
Combined ratio		85.5%		85.9%		84.8%		90.8%		92.2%		97.3%		85.7%		94.8%
Impact of catastrophes on combined ratio		2.7%		2.4%		0.8%		3.7%		2.2%		9.6%		2.5%		5.9%
Impact of prior year reserve development on combined ratio		-2.1%		-3.0%		-1.4%		-2.5%		-1.5%		-2.2%		-2.5%		-1.8%

(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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Billing and policy fees	$	26	$	22	$	23	$	23	$	24	$	22	$	48	$	46

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

Page 17

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	1,709	$	1,878	$	1,876	$	1,681	$	1,679	$	1,909	$	3,587	$	3,588
Net written premiums	$	1,664	$	1,795	$	1,750	$	1,626	$	1,633	$	1,839	$	3,459	$	3,472
Net earned premiums	$	1,688	$	1,681	$	1,712	$	1,722	$	1,707	$	1,724	$	3,369	$	3,431
Losses and loss adjustment expenses		997		968		972		1,050		1,074		1,159		1,965		2,233
Underwriting expenses		482		536		522		504		492		552		1,018		1,044
Statutory underwriting gain	$	209	$	177	$	218	$	168	$	141	$	13	$	386	$	154
Other statistics
Effective tax rate on net investment income		22.8%		22.8%		21.6%		20.1%		19.1%		18.9%		22.8%		19.0%
Net investment income (after-tax)	$	112	$	113	$	111	$	100	$	97	$	96	$	225	$	193
Catastrophes, net of reinsurance:
Pre-tax	$	45	$	40	$	14	$	64	$	38	$	165	$	85	$	203
After-tax	$	29	$	26	$	9	$	42	$	25	$	107	$	55	$	132
Policies in force (in thousands) (1)
Automobile		2,456		2,464		2,473		2,479		2,495		2,526		2,464		2,526
Homeowners and other		4,579		4,631		4,666		4,682		4,702		4,755		4,631		4,755

(1)  In April 2007, the Company completed the sale of its subsidiary, Mendota Insurance Company and its wholly-owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. Policies in force have been restated to exclude sold entities.

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

Page 18

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	975	$	927	$	914	$	857	$	930	$	939	$	1,902	$	1,869
Net written premiums:
Excluding Mendota	$	916	$	915	$	901	$	847	$	922	$	933	$	1,831	$	1,855
Mendota (1)		49		-		-		-		-		-		49		-
Total	$	965	$	915	$	901	$	847	$	922	$	933	$	1,880	$	1,855
Net earned premiums	$	939	$	912	$	920	$	921	$	911	$	919	$	1,851	$	1,830
Losses and loss adjustment expenses		595		593		599		622		649		637		1,188		1,286
Underwriting expenses		254		262		253		243		262		271		516		533
Statutory underwriting gain	$	90	$	57	$	68	$	56	$	-	$	11	$	147	$	11
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio		63.3%		65.1%		65.1%		67.6%		71.3%		69.3%		64.2%		70.3%
Underwriting expense ratio		24.1%		26.6%		26.3%		27.2%		27.7%		28.6%		25.4%		28.2%
Combined ratio		87.4%		91.7%		91.4%		94.8%		99.0%		97.9%		89.6%		98.5%
Impact of catastrophes on combined ratio		0.1%		0.4%		0.0%		0.0%		0.0%		1.5%		0.3%		0.8%
Catastrophe losses, net of reinsurance:
Pre-tax	$	1	$	4	$	-	$	-	$	-	$	14	$	5	$	14
After-tax	$	1	$	2	$	-	$	-	$	-	$	9	$	3	$	9
Policies in force (in thousands) (3)		2,456		2,464		2,473		2,479		2,495		2,526
Change from prior year quarter (3)		6.3%		3.6%		1.7%		1.2%		1.6%		2.5%
Change from prior quarter (3)		0.2%		0.3%		0.4%		0.2%		0.6%		1.2%

(1)  In April 2007, the Company completed the sale of its subsidiary, Mendota Insurance Company and its wholly-owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. (collectively, Mendota).

(2)  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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Billing and policy fees	$	17	$	13	$	14	$	13	$	14	$	13	$	30	$	27

(3)  Policies in force have been restated to exclude sold entities.

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

Page 19

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Statutory underwriting
Gross written premiums	$	734	$	951	$	962	$	824	$	749	$	970	$	1,685	$	1,719
Net written premiums:
Excluding Mendota	$	699	$	880	$	849	$	779	$	711	$	906	$	1,579	$	1,617
Mendota (1)		-		-		-		-		-		-		-		-
Total	$	699	$	880	$	849	$	779	$	711	$	906	$	1,579	$	1,617
Net earned premiums	$	749	$	769	$	792	$	801	$	796	$	805	$	1,518	$	1,601
Losses and loss adjustment expenses		402		375		373		428		425		522		777		947
Underwriting expenses		228		274		269		261		230		281		502		511
Statutory underwriting gain	$	119	$	120	$	150	$	112	$	141	$	2	$	239	$	143
Other statistics
GAAP Combined ratio (2):
Loss and loss adjustment expense ratio		53.7%		48.7%		47.1%		53.4%		53.3%		64.9%		51.2%		59.2%
Underwriting expense ratio		29.4%		30.2%		30.0%		32.9%		31.3%		31.6%		29.8%		31.4%
Combined ratio		83.1%		78.9%		77.1%		86.3%		84.6%		96.5%		81.0%		90.6%
Impact of catastrophes on combined ratio		5.9%		4.6%		1.8%		8.0%		4.8%		18.8%		5.3%		11.8%
Catastrophe losses, net of reinsurance:
Pre-tax	$	44	$	36	$	14	$	64	$	38	$	151	$	80	$	189
After-tax	$	28	$	24	$	9	$	42	$	25	$	98	$	52	$	123
Policies in force (in thousands) (3)		4,579		4,631		4,666		4,682		4,702		4,755
Change from prior year quarter (3)		7.2%		5.6%		3.9%		3.0%		2.7%		2.7%
Change from prior quarter (3)		0.8%		1.1%		0.8%		0.3%		0.4%		1.1%

(1)  In April 2007, the Company completed the sale of its subsidiary, Mendota Insurance Company and its wholly-owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. (collectively Mendota).

(2)  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:

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Billing and policy fees	$	9	$	9	$	9	$	10	$	10	$	9	$	18	$	19

(3)  Policies in force have been restated to exclude sold entities.

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

Page 20

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2007			2007			2007			2007			2008			2008			2007			2008
Revenues
Net investment income	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Other revenues (1)		5			(36	)		4			8			2			-			(31	)		2
Total revenues		5			(36	)		4			8			2			-			(31	)		2
Claims and expenses
Interest expense		76			85			93			91			90			90			161			180
General and administrative expenses		9			10			7			9			12			6			19			18
Total claims and expenses		85			95			100			100			102			96			180			198
Operating loss before federal income tax benefit		(80	)		(131	)		(96	)		(92	)		(100	)		(96	)		(211	)		(196	)
Income taxes		(58	)		(65	)		(32	)		(35	)		(36	)		(30	)		(123	)		(66	)
Operating loss	$	(22	)	$	(66	)	$	(64	)	$	(57	)	$	(64	)	$	(66	)	$	(88	)	$	(130	)

(1)  In the second quarter of 2007, other revenues includes a $39 million loss on the Company’s redemption of its 4.50% convertible junior subordinated notes, representing the redemption premium paid and the write off of the remaining unamortized debt issuance costs.

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

Page 21

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

	June 30,		December 31,			June 30,			December 31,
	2008 (1)		2007			2008 (1)			2007
Assets					Liabilities
Fixed maturities, available for sale at fair value					Claims and claim adjustment expense reserves	$	57,276		$	57,700
(including $1,613 and $1,988 subject to securities					Unearned premium reserves		11,339			11,227
lending) (amortized cost $63,216 and $64,152)	$	63,143	$	64,920	Contractholder payables		6,616			6,696
Equity securities, at fair value (cost $469 and $473)		464		488	Payables for reinsurance premiums		694			618
Real estate		833		850	Debt		6,336			6,242
Short-term securities		5,533		5,186	Other liabilities		5,441			6,125
Other investments		3,270		3,374	Total liabilities		87,702			88,608
Total investments		73,243		74,818
Cash		329		271
Investment income accrued		837		861
Premiums receivable		6,347		6,142	Shareholders’ equity
Reinsurance recoverables		15,359		15,641	Preferred Stock Savings Plan - convertible preferred stock
Ceded unearned premiums		1,116		1,123	(0.3 shares issued and outstanding)		103			112
Deferred acquisition costs		1,853		1,809	Common stock (1,750.0 shares authorized; 592.8 and 627.8
Deferred tax asset		1,459		1,207	shares issued and outstanding)		19,137			18,990
Contractholder receivables		6,616		6,696	Retained earnings		12,655			11,110
Goodwill		3,365		3,366	Accumulated other changes in equity from nonowner sources		79			670
Other intangible assets		747		814	Treasury stock, at cost (119.8 and 82.9 shares)		(6,051	)		(4,266	)
Other assets		2,354		2,476	Total shareholders’ equity		25,923			26,616
Total assets	$	113,625	$	115,224	Total liabilities and shareholders’ equity	$	113,625		$	115,224

(1) Preliminary.

Page 22

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

	June 30,		Pre-tax Book		December 31,		Pre-tax Book
	2008		Yield (1)		2007		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	25,128		5.23%	$	26,369		5.21%
Tax-exempt fixed maturities		38,015		4.17%		38,551		4.16%
Total fixed maturities		63,143		4.60%		64,920		4.59%
Non-redeemable preferred stocks		284		6.26%		305		6.27%
Common stocks		180				183
Total equity securities		464				488
Real estate		833				850
Short-term securities		5,533		2.40%		5,186		4.95%
Private equities		1,541				1,437
Hedge funds		718				914
Real estate joint ventures & other		944				948
Mortgage loans		44		7.51%		45		7.31%
Trading securities		23				30
Total other investments		3,270				3,374
Total investments	$	73,243			$	74,818
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	63			$	620

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

Page 23

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

	June 30,		December 31,
	2008		2007
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	1,833	$	2,150
Obligations of states and political subdivisions		38,281		38,822
Debt securities issued by foreign governments		1,662		1,635
Mortgage-backed securities - principally obligations of U.S. Government agencies		6,536		7,116
Corporates (including redeemable preferreds)		14,831		15,197
Total fixed maturities	$	63,143	$	64,920

Fixed Maturities

Quality Characteristics (1)

	June 30, 2008
		Amount		% of Total
Quality Ratings
Aaa		$	32,267	51.1	%
Aa			19,668	31.2
A			6,430	10.2
Baa			3,177	5.0
Total investment grade			61,542	97.5
Ba			831	1.3
B			601	0.9
Caa and lower			169	0.3
Total below investment grade			1,601	2.5
Total fixed maturities		$	63,143	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.

Page 24

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

													YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		2Q		2Q
	2007		2007		2007		2007		2008		2008		2007		2008
Gross investment income
Fixed maturities	$	709	$	712	$	731	$	741	$	736	$	726	$	1,421	$	1,462
Short-term securities		73		64		76		66		52		32		137		84
Other		193		229		137		89		39		32		422		71
		975		1,005		944		896		827		790		1,980		1,617
Investment expenses		15		15		15		14		12		12		30		24
Net investment income, pre-tax		960		990		929		882		815		778		1,950		1,593
Income taxes		223		232		205		186		165		154		455		319
Net investment income, after-tax	$	737	$	758	$	724	$	696	$	650	$	624	$	1,495	$	1,274
Effective tax rate		23.2%		23.4%		22.2%		21.1%		20.2%		19.8%		23.3%		20.0%
Average invested assets (1)	$	72,737	$	73,063	$	74,451	$	75,215	$	74,733	$	74,156	$	72,926	$	74,491
Average yield pre-tax (1)		5.3%		5.4%		5.0%		4.7%		4.4%		4.2%		5.3%		4.3%
Average yield after-tax		4.1%		4.2%		3.9%		3.7%		3.5%		3.4%		4.1%		3.4%

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

Page 25

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2007			2007			2007			2007			2008			2008			2007			2008
Net realized investment gains (losses)
Fixed maturities	$	9		$	13		$	(7	)	$	(10	)	$	(32	)	$	6		$	22		$	(26	)
Equity securities		2			3			(1	)		(2	)		(1	)		(14	)		5			(15	)
Other (1) (2)		3			112			8			24			(29	)		44			115			15
Realized investment gains (losses) before tax		14			128			-			12			(62	)		36			142			(26	)
Related taxes		6			41			-			6			(21	)		12			47			(9	)
Net realized investment gains (losses)	$	8		$	87		$	-		$	6		$	(41	)	$	24		$	95		$	(17	)
Gross investment gains (2)	$	69		$	173		$	64		$	155		$	89		$	138		$	242		$	227
Gross investment losses before impairments (2)		(46	)		(36	)		(50	)		(105	)		(113	)		(74	)		(82	)		(187	)
Impairments		(9	)		(9	)		(14	)		(38	)		(38	)		(28	)		(18	)		(66	)
Realized investment gains (losses) before tax		14			128			-			12			(62	)		36			142			(26	)
Related taxes		6			41			-			6			(21	)		12			47			(9	)
Net realized investment gains (losses)	$	8		$	87		$	-		$	6		$	(41	)	$	24		$	95		$	(17	)
	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,
	2007			2007			2007			2007			2008			2008
Net unrealized investment gains (losses), net of tax, by asset type
Fixed maturities	$	417		$	(591	)	$	155		$	768		$	695		$	(73	)
Equity securities & other		252			174			175			169			168			159
Unrealized investment gains (losses) before tax		669			(417	)		330			937			863			86
Related taxes		230			(154	)		109			317			287			23
Balance, end of period	$	439		$	(263	)	$	221		$	620		$	576		$	63
(1)  In the second quarter of 2007, includes $81 million from the bundled sale of a substantial portion of the Company’s venture capital investment holdings.
(2)  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	$	18	$	18	$	13	$	21	$	42	$	49	$	36	$	91
Gross investment Treasury future losses	$	19	$	11	$	18	$	30	$	56	$	39	$	30	$	95

 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.

Page 26

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

		June 30,			December 31,
		2008			2007
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses		$	10,466		$	10,731
Allowance for uncollectible reinsurance			(712	)		(688	)
Net reinsurance recoverables			9,754			10,043
Mandatory pools and associations			2,038			1,983
Structured settlements			3,567			3,615
Total reinsurance recoverables		$	15,359		$	15,641
The Company’s top five reinsurer groups, including retroactive reinsurance, by reinsurance recoverable is as follows:
	A.M. Best Rating of Group’s	June 30,			December 31,
Reinsurer	Predominant Reinsurer	2008			2007
Swiss Re Group	A+ second highest of 16 ratings	$	1,145		$	1,266
Munich Re Group	A+ second highest of 16 ratings		897			994
American International Group	A+ second highest of 16 ratings		619			553
Berkshire Hathaway Group	A++ highest of 16 ratings		586			591
XL Capital Group	A third highest of 16 ratings		550			511

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 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, 2008, after deducting mandatory pool and structured settlement balances, $7.6 billion, or 78%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% were rated A- or better.  The remaining 22% net recoverables from reinsurers were 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, $2.8 billion of the net recoverables were collateralized by letters of credit, funds held and trust agreements at June 30, 2008.

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.

Page 27

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2007			2007			2007			2007			2008			2008			2007			2008
Business Insurance
Beginning of period	$	34,444		$	34,456		$	34,295		$	34,131		$	34,021		$	33,718		$	34,444		$	34,021
Incurred		1,684			1,628			1,530			1,616			1,517			1,576			3,312			3,093
Paid		(1,661	)		(1,814	)		(1,708	)		(1,767	)		(1,736	)		(1,696	)		(3,475	)		(3,432	)
Acquired reserves, foreign exchange and other		(11	)		25			14			41			(84	)		51			14			(33	)
End of period	$	34,456		$	34,295		$	34,131		$	34,021		$	33,718		$	33,649		$	34,295		$	33,649
Financial, Professional & International Insurance
Beginning of period	$	5,014		$	4,991		$	5,285		$	5,416		$	5,520		$	5,590		$	5,014		$	5,520
Incurred		447			463			419			401			387			383			910			770
Paid		(318	)		(256	)		(333	)		(339	)		(324	)		(294	)		(574	)		(618	)
Acquired (sold) reserves, foreign exchange and other (1)		(152	)		87			45			42			7			(29	)		(65	)		(22	)
End of period	$	4,991		$	5,285		$	5,416		$	5,520		$	5,590		$	5,650		$	5,285		$	5,650
Personal Insurance
Beginning of period	$	3,490		$	3,495		$	3,449		$	3,453		$	3,527		$	3,532		$	3,490		$	3,527
Incurred		997			968			972			1,050			1,074			1,159			1,965			2,233
Paid		(992	)		(952	)		(968	)		(976	)		(1,069	)		(1,105	)		(1,944	)		(2,174	)
Sold reserves (2)		-			(62	)		-			-			-			-			(62	)		-
End of period	$	3,495		$	3,449		$	3,453		$	3,527		$	3,532		$	3,586		$	3,449		$	3,586
Total
Beginning of period	$	42,948		$	42,942		$	43,029		$	43,000		$	43,068		$	42,840		$	42,948		$	43,068
Incurred		3,128			3,059			2,921			3,067			2,978			3,118			6,187			6,096
Paid		(2,971	)		(3,022	)		(3,009	)		(3,082	)		(3,129	)		(3,095	)		(5,993	)		(6,224	)
Acquired (sold) reserves, foreign exchange and other (1) (2)		(163	)		50			59			83			(77	)		22			(113	)		(55	)
End of period	$	42,942		$	43,029		$	43,000		$	43,068		$	42,840		$	42,885		$	43,029		$	42,885
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Environmental		-			185			-			-			-			85			185			85
All other		(27	)		(245	)		(165	)		(49	)		(312	)		(442	)		(272	)		(754	)
Prior year development excluding accretion of discount		(27	)		(60	)		(165	)		(49	)		(312	)		(357	)		(87	)		(669	)
Accretion of discount		15			15			15			15			15			16			30			31
Total Business Insurance		(12	)		(45	)		(150	)		(34	)		(297	)		(341	)		(57	)		(638	)
Financial, Professional & International Insurance		-			(15	)		(42	)		(36	)		(63	)		(132	)		(15	)		(195	)
Personal Insurance		(35	)		(50	)		(24	)		(43	)		(25	)		(37	)		(85	)		(62	)
Total	$	(47	)	$	(110	)	$	(216	)	$	(113	)	$	(385	)	$	(510	)	$	(157	)	$	(895	)

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

(2)  Reflects the sale of Mendota and its subsidiaries in 2Q 2007, decreasing reserves by $62 million in Personal Insurance.

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

Page 28

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2007			2007			2007			2007			2008			2008			2007			2008
Asbestos reserves
Beginning reserves:
Direct	$	4,777		$	4,625		$	4,532		$	4,447		$	4,353		$	4,272		$	4,777		$	4,353
Ceded		(726	)		(699	)		(673	)		(662	)		(619	)		(600	)		(726	)		(619	)
Net		4,051			3,926			3,859			3,785			3,734			3,672			4,051			3,734
Incurred losses and loss expenses:
Direct		-			-			(1	)		-			-			-			-			-
Ceded		-			-			1			-			-			-			-			-
Accretion of discount:
Direct		-			-			-			-			-			-			-			-
Ceded		-			-			-			-			-			-			-			-
Losses paid:
Direct		152			93			84			94			81			88			245			169
Ceded		(27	)		(26	)		(10	)		(43	)		(19	)		(12	)		(53	)		(31	)
Ending reserves:
Direct		4,625			4,532			4,447			4,353			4,272			4,184			4,532			4,184
Ceded		(699	)		(673	)		(662	)		(619	)		(600	)		(588	)		(673	)		(588	)
Net	$	3,926		$	3,859		$	3,785		$	3,734		$	3,672		$	3,596		$	3,859		$	3,596
Environmental reserves
Beginning reserves:
Direct	$	413		$	364		$	529		$	498		$	478		$	450		$	413		$	478
Ceded		5			8			8			14			12			12			5			12
Net		418			372			537			512			490			462			418			490
Incurred losses and loss expenses:
Direct		-			185			(3	)		-			-			85			185			85
Ceded		-			-			3			-			-			-			-			-
Losses paid:
Direct		49			20			28			20			28			36			69			64
Ceded		(3	)		-			(3	)		2			-			-			(3	)		-
Ending reserves:
Direct		364			529			498			478			450			499			529			499
Ceded		8			8			14			12			12			12			8			12
Net	$	372		$	537		$	512		$	490		$	462		$	511		$	537		$	511

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

Page 29

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

	June 30,			December 31,
Debt	2008			2007
Short-term debt
Commercial paper	$	101		$	100
3.75% Senior notes due March 15, 2008		-			400
7.81% Private placement note due September 16, 2008		3			3
6.38% Medium-term note due December 15, 2008		149			149
Zero coupon convertible notes due March 3, 2009, effective yield 4.17%		137			-
Total short-term debt		390			652
Long-term debt
Medium-term notes with maturities in 2010		21			21
Zero coupon convertible notes due March 3, 2009, effective yield 4.17%		-			134
8.125% Senior notes due April 15, 2010 (1)		250			250
7.22% Real estate non-recourse debt due September 1, 2011		9			9
7.81% Private placement notes due on various dates through 2011		6			6
5.375% Senior notes due June 15, 2012 (1)		250			250
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
5.75% Senior notes due December 15, 2017 (1)		450			450
5.80% Senior notes due May 15, 2018 (1)		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
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		1,000			1,000
Total long-term debt		5,940			5,574
Unamortized fair value adjustment		76			83
Unamortized debt issuance costs		(70	)		(67	)
		5,946			5,590
Total debt		6,336			6,242
Preferred equity		103			112
Common equity (excluding net unrealized investment gains (losses), net of tax)		25,757			25,884
Total capital	$	32,196		$	32,238
Total debt to capital		19.7%			19.4%

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

Page 30

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

	June 30,			December 31,
	2008 (1)			2007
Statutory capital and surplus	$	22,288		$	22,878
GAAP adjustments
Goodwill and intangible assets	3,896			3,958
Investments	623			1,407
Noninsurance companies	(3,902		)	(4,307		)
Deferred acquisition costs	1,853			1,809
Deferred federal income tax	249			(18		)
Current federal income tax	(117		)	(124		)
Reinsurance recoverables	371			370
Furniture, equipment & software	483			423
Employee benefits	56			68
Agents balances	130			130
Other	(7		)	22
Total GAAP adjustments	3,635			3,738
GAAP shareholders’ equity	$	25,923		$	26,616

(1) Estimated and Preliminary

Page 31

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

																			YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
	2007			2007			2007			2007			2008			2008			2007			2008
Cash flows from operating activities
Net income	$	1,086		$	1,254		$	1,198		$	1,063		$	967		$	942		$	2,340		$	1,909
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses		(14	)		(128	)		-			(12	)		62			(36	)		(142	)		26
Depreciation and amortization		205			203			197			206			213			201			408			414
Deferred federal income taxes		(188	)		369			68			(19	)		(8	)		34			181			26
Amortization of deferred policy acquisition costs		869			915			956			966			954			961			1,784			1,915
Equity in income from other investments		(167	)		(205	)		(117	)		(81	)		(17	)		(16	)		(372	)		(33	)
Premiums receivable		17			(368	)		216			131			(28	)		(177	)		(351	)		(205	)
Reinsurance recoverables		548			531			615			478			272			10			1,079			282
Deferred acquisition costs		(967	)		(1,024	)		(997	)		(937	)		(968	)		(991	)		(1,991	)		(1,959	)
Claims and claim adjustment expense reserves		(350	)		(255	)		(469	)		(336	)		(386	)		(38	)		(605	)		(424	)
Unearned premium reserves		60			275			28			(260	)		15			97			335			112
Trading account activities		(1	)		(3	)		1			-			2			5			(4	)		7
Loss (gain) on redemption of subordinated debentures		(7	)		39			-			-			-			-			32			-
Excess tax benefits from share-based payment arrangements		(9	)		(11	)		(3	)		(2	)		(4	)		(3	)		(20	)		(7	)
Other		(215	)		(535	)		322			150			(147	)		(285	)		(750	)		(432	)
Net cash provided by operating activities		867			1,057			2,015			1,347			927			704			1,924			1,631
Cash flows from investing activities
Proceeds from maturities of fixed maturities		1,637			927			1,393			1,348			1,604			1,084			2,564			2,688
Proceeds from sales of investments
Fixed maturities		729			809			2,143			3,642			1,044			1,405			1,538			2,449
Equity securities		25			31			21			29			12			38			56			50
Real estate		-			-			10			1			-			25			-			25
Other investments		325			606			222			307			246			178			931			424
Purchases of investments
Fixed maturities		(3,006	)		(3,007	)		(3,673	)		(5,033	)		(2,350	)		(2,063	)		(6,013	)		(4,413	)
Equity securities		(29	)		(26	)		(8	)		(72	)		(21	)		(39	)		(55	)		(60	)
Real estate		(26	)		(27	)		(16	)		(5	)		(9	)		(16	)		(53	)		(25	)
Other investments		(139	)		(232	)		(191	)		(178	)		(123	)		(162	)		(371	)		(285	)
Net (purchases) sales of short-term securities		(103	)		407			(368	)		(498	)		320			(667	)		304			(347	)
Securities transactions in course of settlement		305			(251	)		(385	)		208			43			31			54			74
Other		(203	)		(7	)		(82	)		(86	)		(72	)		(91	)		(210	)		(163	)
Net cash provided by (used in) investing activities		(485	)		(770	)		(934	)		(337	)		694			(277	)		(1,255	)		417

Page 32

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

																				YTD			YTD
		1Q			2Q			3Q			4Q			1Q			2Q			2Q			2Q
		2007			2007			2007			2007			2008			2008			2007			2008
Cash flows from financing activities
Issuance of debt		986			1,475			-			-			-			496			2,461			496
Payment of debt		(611	)		(857	)		(488	)		-			(400	)		-			(1,468	)		(400	)
Treasury stock acquired - net employee share-based compensation		(26	)		(12	)		(1	)		-			(26	)		(2	)		(38	)		(28	)
Treasury stock acquired - share repurchase program		(698	)		(637	)		(612	)		(973	)		(1,000	)		(765	)		(1,335	)		(1,765	)
Issuance of common stock - employee stock options		54			106			32			26			15			44			160			59
Dividends paid to shareholders		(175	)		(193	)		(189	)		(185	)		(179	)		(180	)		(368	)		(359	)
Excess tax benefits from share-based payment arrangements		9			11			3			2			4			3			20			7
Other		(1	)		1			1			(1	)		-			-			-			-
Net cash used in financing activities		(462	)		(106	)		(1,254	)		(1,131	)		(1,586	)		(404	)		(568	)		(1,990	)
Effect of exchange rate changes on cash		(1	)		3			2			1			2			(2	)		2			-
Net increase (decrease) in cash		(81	)		184			(171	)		(120	)		37			21			103			58
Cash at beginning of period		459			378			562			391			271			308			459			271
Cash at end of period	$	378		$	562		$	391		$	271		$	308		$	329		$	562		$	329
Income taxes paid	$	88		$	698		$	149		$	411		$	78		$	637		$	786		$	715
Interest paid	$	75		$	86		$	79		$	117		$	72		$	112		$	161		$	184

Page 33

The Travelers Companies, Inc.
Financial Supplement - Second Quarter 2008
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 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 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 for investors to understand 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 one or more prior years or the current year.  In the opinion of the Company’s management, discussion of loss reserve development is useful to investors 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, 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.  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 (i.e., excluding FAS 115), 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.

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 Accounts; 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 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 businesses, which primarily use credit-based underwriting processes, as well as property and casualty products that are primarily marketed on a domestic basis in the United Kingdom, Ireland and Canada, and on an international basis through Lloyd’s.  The businesses in Financial, Professional & International Insurance are Bond & Financial Products and International.

Personal Insurance - The Personal Insurance segment writes 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.

Page 34