The Travelers Companies, Inc. (TRV) 10-Q 22 Oct 09 2009 Q3 Quarterly report Financial data

Consolidated Statement of Incom

Consolidated Statement of Income (Unaudited) (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenues
Premiums	$5,421	$5,448	$16,075	$16,145
Net investment income	763	716	1,963	2,309
Fee income	72	120	234	315
Net realized investment gains (losses)	29	(170)	(172)	(196)
Other revenues	42	31	124	99
Total revenues	6,327	6,145	18,224	18,672
Claims and expenses
Claims and claim adjustment expenses	3,123	3,871	9,648	9,984
Amortization of deferred policy acquisition costs	967	990	2,864	2,905
General and administrative expenses	889	1,001	2,510	2,718
Interest expense, debt	98	95	284	276
Total claims and expenses	5,077	5,957	15,306	15,883
Income before income taxes	1,250	188	2,918	2,789
Income tax expense (benefit)	315	(26)	581	666
Net income	935	214	2,337	2,123
Net income per share
Net income per share, basic	1.66	0.36	4.05	3.51
Net income per share, diluted	1.65	0.36	4.02	3.47
Weighted average number of common shares outstanding
Weighted average number of common shares outstanding, basic	558.4	586.7	572.8	600
Weighted average number of common shares outstanding, diluted	564.1	594.7	577.5	609.1
Other-than-temporary impairment losses:
Other-than-temporary impairment losses, total losses	(43)	(156)	(302)	(222)
Other-than-temporary impairment losses, portion of losses recognized in accumulated other changes in equity from nonowner sources	24	0	69	0
Other-than-temporary impairment losses	(19)	(156)	(233)	(222)
Other net realized investment gains (losses)	48	(14)	61	26
Net realized investment gains (losses)	$29	($170)	($172)	($196)

Common Domain Members

Common Domain Members (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 16, 2009	Jun. 30, 2008
Entity [Domain]
Entity Registrant Name	Travelers Companies, Inc.
Entity Central Index Key	0000086312
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$25,642,673,490
Entity Common Stock, Shares Outstanding		546,373,306

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited at September 30, 2009) (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Assets
Fixed maturities, available for sale at fair value (including $81 and $8 subject to securities lending) (amortized cost $62,208 and $61,569)	$65,350	$61,275
Equity securities, at fair value (cost $387 and $461)	435	379
Real estate	872	827
Short-term securities	6,567	5,222
Other investments	2,899	3,035
Total investments	76,123	70,738
Cash	286	350
Investment income accrued	794	823
Premiums receivable	5,957	5,954
Reinsurance recoverables	13,339	14,232
Ceded unearned premiums	1,076	941
Deferred acquisition costs	1,825	1,774
Deferred tax asset	603	1,965
Contractholder receivables	6,457	6,350
Goodwill	3,365	3,366
Other intangible assets	612	688
Other assets	2,180	2,570
Total assets	112,617	109,751
Liabilities
Claims and claim adjustment expense reserves	53,924	54,723
Unearned premium reserves	11,209	10,957
Contractholder payables	6,457	6,350
Payables for reinsurance premiums	687	528
Debt	6,528	6,181
Other liabilities	5,652	5,693
Total liabilities	84,457	84,432
Shareholders' equity
Preferred stock savings plan - convertible preferred stock (0.2 and 0.3 shares issued and outstanding)	81	89
Common stock (1,750.0 shares authorized; 547.9 and 585.1 shares issued and outstanding)	19,433	19,242
Retained earnings	15,208	13,314
Accumulated other changes in equity from nonowner sources	1,657	(900)
Treasury stock, at cost (169.1 and 128.8 shares)	(8,219)	(6,426)
Total shareholders' equity	28,160	25,319
Total liabilities and shareholders' equity	$112,617	$109,751

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parentheticals (Unaudited at September 30, 2009) (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Balance Sheet Parentheticals
Fixed maturities, subject to securities lending	$81	$8
Fixed maturities, amortized cost	62,208	61,569
Equity securities, at cost	$387	$461
Preferred stock savings plan, shares issued	0.2	0.3
Preferred stock savings plan, shares outstanding	0.2	0.3
Common stock, shares authorized	1,750	1,750
Common stock, shares issued	547.9	585.1
Common stock, shares outstanding	547.9	585.1
Treasury stock (at cost), shares	169.1	128.8

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Convertible preferred stock - savings plan
Convertible preferred stock - savings plan, balance, beginning of year	$89	$112
Convertible preferred stock - savings plan, redemptions during period	(8)	(20)
Convertible preferred stock - savings plan, balance, end of period	81	92
Common stock [Abstract]
Common stock, balance, beginning of year	19,242	18,990
Common stock, employee share-based compensation	94	96
Common stock, compensation amortization under share-based plans and other changes	97	110
Common stock, balance, end of period	19,433	19,196
Retained Earnings
Retained earnings, balance, beginning of year	13,314	11,110
Retained earnings, cumulative effect of adoption of ASC 320 at April 1, 2009 (see note 1)	71	0
Net income	2,337	2,123
Dividends	(521)	(538)
Retained earnings, other	7	(5)
Retained earnings, balance, end of period	15,208	12,690
Accumulated other changes in equity from nonowner sources, net of tax
Accumulated other changes in equity from nonowner sources, net of tax, balance, begining of year	(900)	670
Accumulated other changes in equity from nonowner sources, net of tax, cumulative effect of adoption of ASC 320 at April 1, 2009 (see note 1)	(71)	0
Change in net unrealized gain (loss) on investments having no credit losses recognized in the consolidated statement of income	2,348	(1,438)
Change in net unrealized gain (loss) on investments having credit losses recognized in the consolidated statement of income	103	0
Net change in unrealized foreign currency translation and other changes	177	(164)
Accumulated other changes in equity from nonowner sources, net of taxes, balance, end of period	1,657	(932)
Treasury stock (at cost)
Treasury stock (at cost), balance, beginning of year	(6,426)	(4,266)
Treasury stock (at cost), treasury shares acquired - share repurchase authorization	(1,750)	(2,022)
Treasury stock (at cost), net shares acquired related to employee share-based compensation plans	(43)	(37)
Treasury stock (at cost), balance, end of period	(8,219)	(6,325)
Total common shareholders' equity	28,079	24,629
Total shareholders' equity	28,160	24,721
Common shares outstanding
Common shares outstanding, balance, beginning of year	585.1	627.8
Common shares outstanding, shares acquired - share repurchase authorization	-39.3	-42.3
Common shares outstanding, net shares issued under employee share-based compensation plans	2.1	1.7
Common shares outstanding, balance, end of period	547.9	587.2
Summary of changes in equity from nonowner sources
Net income	2,337	2,123
Other changes in equity from nonowner sources, net of tax	2,628	(1,602)
Total changes in equity from nonowner sources	$4,965	$521

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities
Net income	$2,337	$2,123
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment losses	172	196
Depreciation and amortization expense	602	627
Deferred federal income tax expense	46	49
Amortization of deferred policy acquisition costs	2,864	2,905
Equity in loss from other investments	211	34
Change in premiums receivable	(3)	(47)
Change in reinsurance recoverables	893	533
Change in deferred acquisition costs	(2,915)	(2,950)
Change in claims and claim adjustment expense reserves	(799)	(673)
Change in unearned premium reserves	252	150
Other operating activities	(456)	(374)
Net cash provided by operating activities	3,204	2,573
Cash flows from investing activities
Proceeds from maturities of fixed maturities	3,769	3,670
Proceeds from sales of investments, fixed maturities	2,206	3,588
Proceeds from sales of investments, equity securities	37	47
Proceeds from sales of investments, real estate	0	25
Proceeds from sales of investments, other investments	217	547
Purchases of investments, fixed maturities	(6,350)	(6,635)
Purchases of investments, equity securities	(22)	(89)
Purchases of investments, real estate	(12)	(31)
Purchases of investments, other investments	(262)	(527)
Net (purchases) sales of short-term securities	(1,345)	60
Securities transactions in course of settlement	588	(387)
Other investing activities	(271)	(267)
Net cash provided by (used in) investing activities	(1,445)	1
Cash flows from financing activities
Payment of debt	(143)	(403)
Issuance of debt	494	496
Dividends paid to shareholders	(518)	(536)
Issuance of common stock - employee share options	76	72
Treasury stock acquired - share repurchase authorization	(1,720)	(2,055)
Treasury stock acquired - net employee share-based compensation	(29)	(28)
Excess tax benefits from share-based payment arrangements, financing activities	4	8
Net cash used in financing activities	(1,836)	(2,446)
Effect of exchange rate changes on cash	13	(12)
Net increase (decrease) in cash	(64)	116
Cash at beginning of period	350	271
Cash at end of period	286	387
Supplemental disclosure of cash flow information
Income taxes paid	573	832
Interest paid	$248	$248

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies disclosure
	9 Months Ended Sep. 30, 2009
Basis of Presentation and Accounting Policies disclosure [Abstract]
Basis of Presentation and Accounting Policies Disclosure	1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies,Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Companys management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. Certain reclassifications have been made to the 2008 financial statements and notes to conform to the 2009 presentation. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Companys consolidated financial statements and related notes included in the Companys 2008 Annual Report on Form10-K. The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. Adoption of New Accounting Standards Accounting Standards Codification In June2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No.168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No.162 (The Codification). The Codification reorganized existing U.S. accounting and reporting standards issued by the FASB and other related private sector standard setters into a single source of authoritative accounting principles arranged by topic. The Codification supersedes all existing U.S. accounting standards; all other accounting literature not included in the Codification (other than Securities and Exchange Commission guidance for publicly-traded companies) is considered non-authoritative. The Codification was effective on a prospective basis for interim and annual reporting periods ending after September15, 2009. The adoption of the Codification changed the Companys references to U.S. GAAP accounting standards but did not impact the Companys results of operations, financial position or liquidity. Other-Than-Temporary Impairments In April2009, the FASB issued new guidance for the accounting for other-than-temporary impairments. Under the new guidance, which is now part of Accounting Standards Codification (ASC) 320, Investments Debt and Equity Securities (ASC 320), an other-than-temporary impairment is recognized when an entity has the intent to sell a debt security or when it is more likely than not that an entity will be required to sell the debt security before its

Segment Information disclosure

Segment Information disclosure
	9 Months Ended Sep. 30, 2009
Segment Information disclosure [Abstract]
Segment Information Disclosure	2. SEGMENT INFORMATION The following tables summarize the components of the Companys revenues, operating income and total assets by reportable business segments: (for the three monthsended September30,in millions) BusinessInsurance Financial, Professional International Insurance PersonalInsurance TotalReportableSegments 2009 Premiums $ 2,768 $ 861 $ 1,792 $ 5,421 Net investment income 529 118 116 763 Fee income 72 72 Other revenues 14 7 20 41 Total operating revenues (1) $ 3,383 $ 986 $ 1,928 $ 6,297 Operating income (1) $ 668 $ 167 $ 149 $ 984 2008 Premiums $ 2,823 $ 863 $ 1,762 $ 5,448 Net investment income 494 114 108 716 Fee income 120 120 Other revenues 8 5 18 31 Total operating revenues (1) $ 3,445 $ 982 $ 1,888 $ 6,315 Operating income (loss) (1) $ 378 $ 83 $ (64 ) $ 397 (for the nine monthsended September30,in millions) BusinessInsurance Financial, Professional International Insurance PersonalInsurance TotalReportableSegments 2009 Premiums $ 8,295 $ 2,472 $ 5,308 $ 16,075 Net investment income 1,335 329 299 1,963 Fee income 234 234 Other revenues 32 20 62 114 Total operating revenues (1) $ 9,896 $ 2,821 $ 5,669 $ 18,386 Operating income (1) $ 1,775 $ 448 $ 391 $ 2,614 2008 Premiums $ 8,390 $ 2,562 $ 5,193 $ 16,145 Net investment income 1,607 356 346 2,309 Fee income 315 315 Other revenues 21 18 58 97 Total operating revenues (1) $ 10,333 $ 2,936 $ 5,597 $ 18,866 Operating income (1) $ 1,719 $ 495 $ 239 $ 2,453 (1) Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income (loss) for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). Business Segment Reconciliations Three Months EndedSeptember30, Nine Months EndedSeptember30, (in millions) 2009 2008 2009 2008 Revenue reconciliation Earned premiums Business Insurance: Commercial multi-peril $ 726 $ 750 $ 2,171 $ 2,254 Workers compensation 627 607 1,883 1,776 Commercial automobile 504 496 1,473 1,482 Property 447 468 1,339 1,414 General liability 463 499 1,429 1,457 Other 1 3 7 Total Business Insurance 2,768 2,823 8,295 8,390 F

Investments disclosure

Investments disclosure
	9 Months Ended Sep. 30, 2009
Investments disclosure [Abstract]
Investments disclosure	3. INVESTMENTS Fixed Maturities The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows: Amortized Gross Unrealized Fair (at September30, 2009, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities $ 1,544 $ 106 $ $ 1,650 Obligations of states, municipalities and political subdivisions 39,281 2,471 20 41,732 Debt securities issued by foreign governments 1,820 58 2 1,876 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 5,407 219 198 5,428 All other corporate bonds 14,108 654 146 14,616 Redeemable preferred stock 48 1 1 48 Total $ 62,208 $ 3,509 $ 367 $ 65,350 Amortized Gross Unrealized Fair (at December31, 2008, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities $ 1,681 $ 160 $ $ 1,841 Obligations of states, municipalities and political subdivisions 38,598 920 456 39,062 Debt securities issued by foreign governments 1,453 67 1 1,519 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 6,266 157 364 6,059 All other corporate bonds 13,498 121 882 12,737 Redeemable preferred stock 73 1 17 57 Total $ 61,569 $ 1,426 $ 1,720 $ 61,275 Equity Securities The cost and fair value of investments in equity securities were as follows: GrossUnrealized Fair (at September30, 2009, in millions) Cost Gains Losses Value Common stock $ 172 $ 30 $ 8 $ 194 Non-redeemable preferred stock 215 43 17 241 Total $ 387 $ 73 $ 25 $ 435 GrossUnrealized Fair (at December31, 2008, in millions) Cost Gains Losses Value Common stock $ 189 $ 2 $ 31 $ 160 Non-redeemable preferred stock 272 7 60 219 Total $ 461 $ 9 $ 91 $ 379 Unrealized Investment Losses The following tables summarize, for all investments in an unrealized loss position at September30, 2009 and December31, 2008, the aggregate fair value and gross unrealized losses by length of time those securities have been continuously in an unrealized loss position. 12 months or Less than 12 months longer (1) Total (at September30, 2009, in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fixed maturities U.S. Treasury securities and obliga

Fair Value Measurements disclos

Fair Value Measurements disclosure
	9 Months Ended Sep. 30, 2009
Fair Value Measurements disclosure [Abstract]
Fair Value Measurements disclosure	4. FAIR VALUE MEASUREMENTS The Companys estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Companys significant market assumptions. The three levels of the hierarchy are as follows: Level 1- Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2- Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. Level 3- Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Companys own assumptions about the inputs that market participants would use. Valuation of Investments Reported at Fair Value in Financial Statements The fair value of a financial instrument is the estimated amount at which the instrument could be exchanged in an orderly transaction between knowledgeable, unrelated willing parties, i.e., not in a forced transaction. The estimated fair value of a financial instrument may differ from the amount that could be realized if the security was sold in an immediate sale, e.g., a forced transaction. Additionally, the valuation of fixed maturity investments is more subjective when markets are less liquid due to the lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction would occur. For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in Level 1 of the hierarchy. The Company receives the quoted market prices from a third party, nationally recognized pricing service (pricing service). When quoted market prices are unavailable, the Company utilizes a pricing service to determine an estimate of fair value, which is mainly used for its fixed maturity investments. The fair value estimates provided from this pricing service are included in the amount disclosed in Level 2 of the hierarchy. If quoted market prices and an estimate from a pricing service are unavailable, the Company produces an estimate of fair value based on internally developed valuation techniques, which, depending o

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets disclosure
	9 Months Ended Sep. 30, 2009
Goodwill and Other Intangible Assets disclosure [Abstract]
Goodwill and Other Intangible Assets disclosure	5. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Companys goodwill by segment at September30, 2009 and December31, 2008: (in millions) September30,2009 December31, 2008 Business Insurance $ 2,168 $ 2,168 Financial, Professional International Insurance 557 556 Personal Insurance 613 613 Other 27 29 Total $ 3,365 $ 3,366 Other Intangible Assets The following tables present a summary of the Companys other intangible assets by major asset class at September30, 2009 and December31, 2008: (at September30, 2009, in millions) Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization Customer-related $ 935 $ 705 $ 230 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables (1) 191 25 166 Total intangible assets subject to amortization 1,126 730 396 Intangible assets not subject to amortization 216 216 Total other intangible assets $ 1,342 $ 730 $ 612 (at December31, 2008, in millions) Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization Customer-related $ 935 $ 650 $ 285 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables (1) 191 4 187 Total intangible assets subject to amortization 1,126 654 472 Intangible assets not subject to amortization 216 216 Total other intangible assets $ 1,342 $ 654 $ 688 (1) The time value of money and the risk margin (cost of capital) components of the intangible asset run off at different rates, and, as such, the amount recognized in income may be a net benefit in some periods and a net expense in other periods. The following table presents a summary of the Companys amortization expense for other intangible assets by major asset class: Three Months Ended September30, Nine Months Ended September30, (in millions) 2009 2008 2009 2008 Customer-related $ 17 $ 23 $ 55 $ 75 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables 7 8 21 23 Total amortization expense $ 24 $ 31 $ 76 $ 98 Intangible asset amortization expense is estimated to be $24 million for the remainder of 2009, $86 million in 2010, $69 million in 2011, $52 million in 2012 and $45 million in 2013.

Debt disclosure

Debt disclosure
	9 Months Ended Sep. 30, 2009
Debt disclosure [Abstract]
Debt disclosure	6. DEBT Convertible Note Maturity. On March3, 2009, the Companys zero coupon convertible notes with an effective yield of 4.17% and a remaining principal balance of $141 million matured and were fully paid. Senior Debt Issuance. On June2, 2009, the Company issued $500 million aggregate principal amount of 5.90% senior notes that will mature on June2, 2019. The net proceeds of the issuance, after original issuance discount and the deduction of underwriting expenses and commissions and other expenses, totaled approximately $494 million. Interest on the senior notes is payable semi-annually in arrears on June2 and December2 of each year, commencing December2, 2009. The senior notes are redeemable in whole at any time or in part from time to time, at the Companys option, at a redemption price equal to the greater of (a)100% of the principal amount of senior notes to be redeemed or (b)the sum of the present values of the remaining scheduled payments of principal and interest on the senior notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current treasury rate (as defined) plus 35 basis points for the senior notes.

Share Repurchase Authorization

Share Repurchase Authorization disclosure
	9 Months Ended Sep. 30, 2009
Share Repurchase Authorization disclosure [Abstract]
Share Repurchase Authorization disclosure	7. SHARE REPURCHASE AUTHORIZATION The Companys board of directors has authorized the repurchase of the Companys common shares. Under the authorization, repurchasesmay be madefrom time to time in the open market, pursuant to preset trading plans meeting the requirements of Rule10b5-1 under the Securities Exchange Act of 1934, in private transactions or otherwise. The authorization does not have a stated expiration date. The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including corporate and regulatory requirements, price, catastrophe losses and other market conditions. During the three months and nine months ended September30, 2009, the Company repurchased 20.8 million and 39.3 million shares, respectively, under its share repurchase authorization for a total cost of approximately $1.00 billion and $1.75 billion, respectively. The average cost per share repurchased during the three months and nine months ended September30, 2009 was $48.02 and $44.56, respectively. At September30, 2009, the Company had $2.06 billion of capacity remaining under its share repurchase authorization. In October2009, the Companys board of directors authorized up to an additional $6 billion for share repurchases.

Changes in Equity from Nonowner

Changes in Equity from Nonowner Sources disclosure
	9 Months Ended Sep. 30, 2009
Changes in Equity from Nonowner Sources disclosure [Abstract]
Change in Equity from Nonowner Sources disclosure	8. CHANGES IN EQUITY FROM NONOWNER SOURCES The Companys total changes in equity from nonowner sources were as follows: Three Months EndedSeptember30, Nine Months EndedSeptember30, (in millions, after-tax) 2009 2008 2009 2008 Net income $ 935 $ 214 $ 2,337 $ 2,123 Change in net unrealized gain (loss) on investments: Having no credit losses recognized in the consolidated statement of income 1,322 (881 ) 2,348 (1,438 ) Having credit losses recognized in the consolidated statement of income 50 103 Other changes 27 (130 ) 177 (164 ) Total changes in equity from nonowner sources $ 2,334 $ (797 ) $ 4,965 $ 521

Earnings per Share disclosure

Earnings per Share disclosure
	9 Months Ended Sep. 30, 2009
Earnings per Share disclosure [Abstract]
Earnings per Share disclosure	9. EARNINGS PER SHARE Basic earnings per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities. On January1, 2009, the Company adopted the new guidance related to earnings per share as described in note 1. The impact of the adoption of this guidance was a reduction of previously reported basic earnings per share by $0.02 per share for the nine months ended September30, 2008. The adoption had no impact on previously reported basic earnings per share for the three months ended September30, 2008, and it had no impact on the previously reported diluted earnings per share for both of those periods. The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations: Three Months EndedSeptember30, Nine Months EndedSeptember30, (in millions, except per share amounts) 2009 2008 2009 2008 Basic Net income, as reported $ 935 $ 214 $ 2,337 $ 2,123 Preferred stock dividends (1 ) (1 ) (3 ) (3 ) Participating share-based awards allocated income (6 ) (1 ) (16 ) (14 ) Net income available to common shareholders basic $ 928 $ 212 $ 2,318 $ 2,106 Diluted Net income available to common shareholders $ 928 $ 212 $ 2,318 $ 2,106 Effect of dilutive securities: Performance shares 1 1 Convertible preferred stock 1 1 3 3 Zero coupon convertible notes 1 1 3 Net income available to common shareholders diluted $ 930 $ 214 $ 2,323 $ 2,112 Common shares Basic Weighted average shares outstanding 558.4 586.7 572.8 600.0 Diluted Weighted average shares outstanding 558.4 586.7 572.8 600.0 Weighted average effects of dilutive securities: Stock options and performance shares 3.7 3.3 2.1 4.2 Convertible preferred stock 2.0 2.3 2.1 2.5 Zero coupon convertible notes 2.4 0.5 2.4 Total 564.1 594.7 577.5 609.1 Net Income per Common Share Basic $ 1.66 $ 0.36 $ 4.05 $ 3.51 Diluted $ 1.65 $ 0.36 $ 4.02 $ 3.47

Share-Based Incentive Compensat

Share-Based Incentive Compensation disclosure
	9 Months Ended Sep. 30, 2009
Share-Based Incentive Compensation disclosure [Abstract]
Share-Based Incentive Compensation disclosure	10. SHARE-BASED INCENTIVE COMPENSATION The following presents information for fully vested stock option awards at September30, 2009: Stock Options Number Weighted Average Exercise Price Weighted Average Contractual Life Remaining AggregateIntrinsic Value($in millions) Vested at end of period (1) 27,596,760 $ 45.22 3.4 years $ 143 Exercisable at end of period 24,719,960 $ 45.21 2.9 years $ 129 (1)Represents awards for which the requisite service has been rendered, including those that are retirement eligible. The total compensation cost recognized in earnings for all share-based incentive compensation awards was $27 million and $31 million for the three months ended September30, 2009 and 2008, respectively, and $92 million and $97 million for the nine months ended September30, 2009 and 2008, respectively. The related tax benefit recognized in the consolidated statement of income was $9 million and $11 million for the three months ended September30, 2009 and 2008, respectively, and $31 million and $33 million for the nine months ended September30, 2009 and 2008, respectively. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at September30, 2009 was $135 million, which is expected to be recognized over a weighted-average period of 1.8 years. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at December31, 2008 was $112 million, which was expected to be recognized over a weighted-average period of 1.7 years.

Pension Plans, Retirement Benef

Pension Plans, Retirement Benefits and Savings Plan disclosure
	9 Months Ended Sep. 30, 2009
Pension Plans, Retirement Benefits and Savings Plans disclosure [Abstract]
Pension Plans, Retirement Benefits and Savings Plans disclosure	11. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The following table summarizes the components of net periodic benefit cost for the Companys pension and postretirement benefit plans recognized in the consolidated statement of income. (for the three months ended September30, in Pension Plans Postretirement Benefit Plans millions) 2009 2008 2009 2008 Net Periodic Benefit Cost: Service cost $ 20 $ 19 $ $ Interest cost on benefit obligation 31 29 4 3 Expected return on plan assets (45 ) (43 ) Amortization of unrecognized: Prior service benefit (1 ) (1 ) Net actuarial loss 5 2 Net benefit expense $ 10 $ 6 $ 4 $ 3 (for the nine months ended September30, in Pension Plans Postretirement Benefit Plans millions) 2009 2008 2009 2008 Net Periodic Benefit Cost: Service cost $ 60 $ 57 $ $ Interest cost on benefit obligation 94 88 13 11 Expected return on plan assets (132 ) (119 ) (1 ) (1 ) Amortization of unrecognized: Prior service benefit (4 ) (4 ) Net actuarial loss (gain) 16 6 (2 ) Net benefit expense $ 34 $ 28 $ 12 $ 8 Employer Contributions The Company previously disclosed in its Annual Report on Form10-K for the year ended December31, 2008 that it had not yet determined whether it would make additional pension plan funding during the 2009 fiscal year. In September2009, the Company made a contribution of $110 million to its pension plan.

Contingencies, Commitments and

Contingencies, Commitments and Guarantees disclosure
	9 Months Ended Sep. 30, 2009
Contingencies, Commitments and Guarantees disclosure [Abstract]
Contingencies, Commitments and Guarantees disclosure	12. CONTINGENCIES, COMMITMENTS AND GUARANTEES Contingencies The following section describes the major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or to which any of their properties are subject. Asbestos- and Environmental-Related Proceedings In the ordinary course of its insurance business, the Company receives claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos- and environmental-related exposures that are the subject of related coverage litigation, including, among others, the litigation described below. The Company continues to be subject to aggressive asbestos-related litigation. The conditions surrounding the final resolution of these claims and the related litigation continue to change. The Company is defending its asbestos- and environmental-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and aggressive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. For other information regarding the Companys asbestos and environmental exposure, including the results of its annual in-depth asbestos claim review as well as its quarterly asbestos reserve review, see PartI Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations Asbestos Claims and Litigation, Environmental Claims and Litigation and Uncertainty Regarding Adequacy of Asbestos and Environmental Reserves. Asbestos Direct Action Litigation In October2001 and April2002, two purported class action suits (Wise v. Travelers and Meninger v. Travelers) were filed against Travelers Property Casualty Corp. (TPC) and other insurers (not including The St. Paul Companies,Inc. (SPC)) in state court in West Virginia. These and other cases subsequently filed in West Virginia were consolidated into a single proceeding in the Circuit Court of Kanawha County, West Virginia. The plaintiffs allege that the insurer defendants engaged in unfair trade practices in violation of state statutes by inappropriately handling and settling asbestos claims. The plaintiffs seek to reopen large numbers of settled asbestos claims and to impose liability for damages, including punitive damages, directly on insurers. Similar lawsuits alleging inappropriate handling and settling of asbestos claims were filed in Massachusetts and Hawaii state courts. These suits are collectively referred to as the Statutory and Hawaii Actions. In March2002, the plaintiffs in consolidated asbestos actions pending before a mass tort panel of judges in West Virginia state court amended their complaint to include TPC as a defendant, alleging that TPC and other insurers breached alleged duties to certain users of asbestos products. The plaintiffs seek damages, including punitive damages. Lawsuits seeking similar relief and raising similar allegations, primarily violations of purpo

Subsequent Events disclosure

Subsequent Events disclosure
	9 Months Ended Sep. 30, 2009
Subsequent Events disclosure [Abstract]
Subsequent Events disclosure	13. SUBSEQUENT EVENTS In October2009, the Company sold 50% (8.7 million shares) of the common stock it owned in Verisk Analytics,Inc. (Verisk) for total proceeds of approximately $184 million as part of the initial public offering (IPO) of Verisk. As a result of the sale, the Company expects to record a pretax realized investment gain of approximately $159 million ($103 million after-tax) in the fourth quarter of 2009. The Company continues to own 8.7 million shares of common stock of Verisk, 50% of which are generally not transferable until 18 months following the IPO and 50% of which are generally not transferable until 24 months following the IPO. There were no further subsequent events requiring adjustment to the financial statements or disclosure through October22, 2009, the date that the Companys financial statements were issued.

Consolidating Financial Stateme

Consolidating Financial Statements disclosure
	9 Months Ended Sep. 30, 2009
Consolidating Financial Statements disclosure [Abstract]
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries	14. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES The following consolidating financial statements of the Company have been prepared pursuant to Rule3-10 of Regulation S-X. These consolidating financial statements have been prepared from the Companys financial information on the same basis of accounting as the consolidated financial statements. The Travelers Companies,Inc. has fully and unconditionally guaranteed certain debt obligations of TPC, its wholly-owned subsidiary, which totaled $1.19 billion at September30, 2009. Prior to the merger, TPC fully and unconditionally guaranteed the payment of all principal, premiums, if any, and interest on certain debt obligations of its wholly-owned subsidiary, Travelers Insurance Group Holdings,Inc. (TIGHI). The Travelers Companies,Inc. has fully and unconditionally guaranteed such guarantee obligations of TPC. TPC has no material assets or operations independent of TIGHI. Consolidating financial information for TIGHI has not been presented herein because such financial information would be substantially the same as the financial information provided for TPC. CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended September30, 2009 (in millions) TPC Other Subsidiaries Travelers(1) Eliminations Consolidated Revenues Premiums $ 3,653 $ 1,768 $ $ $ 5,421 Net investment income 524 233 6 763 Fee income 74 (2 ) 72 Net realized investment gains (losses) 12 (11 ) 28 29 Other revenues 34 8 42 Total revenues 4,297 1,996 34 6,327 Claims and expenses Claims and claim adjustment expenses 2,084 1,039 3,123 Amortization of deferred acquisition costs 646 321 967 General and administrative expenses 580 301 8 889 Interest expense 16 1 81 98 Total claims and expenses 3,326 1,662 89 5,077 Income (loss) before income taxes 971 334 (55 ) 1,250 Income tax expense (benefit) 244 85 (14 ) 315 Equity in net income of subsidiaries 976 (976 ) Net income $ 727 $ 249 $ 935 $ (976 ) $ 935 (in millions) TPC Other Subsidiaries Travelers (1) Eliminations Consolidated Net Realized Investment Gains (Losses) Other-than-temporary impairment losses: Total losses $ (16 ) $ (26 ) $ (1 ) $ $ (43 ) Portion of losses recognized in accumulated other changes in equity from nonowner sources 4 20 24 Other-than-temporary impairment losses (12 ) (6 ) (1 ) (19 ) Other net realized investment gains (losses) 24 (5 ) 29 48 Net realized investment gains (losses) $ 12 $ (11 ) $ 28 $ $ 29 (1) The Travelers Companies,In