The Travelers Companies, Inc. (TRV) 10-Q 23 Apr 10 2010 Q1 Quarterly report Financial data

Consolidated Statement of Incom

Consolidated Statement of Income (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues
Premiums	$5,230	$5,301
Net investment income	753	542
Fee income	79	73
Net realized investment gains (losses)	25	(214)
Other revenues	32	33
Total revenues	6,119	5,735
Claims and expenses
Claims and claim adjustment expenses	3,388	3,190
Amortization of deferred policy acquisition costs	929	944
General and administrative expenses	847	782
Interest expense, debt	98	92
Total claims and expenses	5,262	5,008
Income before income taxes	857	727
Income tax expense	210	65
Net income	647	662
Net income per share
Net income per share, basic	1.26	1.12
Net income per share, diluted	1.25	1.11
Weighted average number of common shares outstanding
Weighted average number of common shares outstanding, basic	508.4	584.6
Weighted average number of common shares outstanding, diluted	515.1	590.4
Other-than-temporary impairment losses:
Other-than-temporary impairment losses, total losses	(1)	(184)
Other-than-temporary impairment losses, portion of losses recognized in accumulated other changes in equity from nonowner sources	(9)
Other-than-temporary impairment losses	(10)	(184)
Other net realized investment gains (losses)	35	(30)
Net realized investment gains (losses)	$25	($214)

Common Domain Members

Common Domain Members
	3 Months Ended Mar. 31, 2010	Apr. 20, 2010
Entity Domain
Entity Registrant Name	Travelers Companies, Inc.
Entity Central Index Key	0000086312
Document Type	10-Q
Document Period End Date	2010-03-31
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 Common Stock, Shares Outstanding		495,339,156
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,010

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited at March 31, 2010) (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
Assets
Fixed maturities, available for sale, at fair value (including $83 and $90 subject to securities lending) (amortized cost $62,463 and $63,311)	$65,116	$65,847
Equity securities, available for sale, at fair value (cost $367 and $373)	463	451
Real estate	851	865
Short-term securities	4,648	4,852
Other investments	2,963	2,950
Total investments	74,041	74,965
Cash	251	255
Investment income accrued	777	825
Premiums receivable	5,564	5,471
Reinsurance recoverables	12,727	12,816
Ceded unearned premiums	997	916
Deferred acquisition costs	1,767	1,758
Deferred tax asset	560	672
Contractholder receivables	5,840	5,797
Goodwill	3,365	3,365
Other intangible assets	564	588
Other assets	2,243	2,132
Total assets	108,696	109,560
Liabilities
Claims and claim adjustment expense reserves	52,841	53,127
Unearned premium reserves	10,935	10,861
Contractholder payables	5,840	5,797
Payables for reinsurance premiums	638	546
Debt	6,525	6,527
Other liabilities	5,246	5,287
Total liabilities	82,025	82,145
Shareholders' equity
Preferred Stock Savings Plan - convertible preferred stock (0.2 shares issued and outstanding)	77	79
Common stock (1,748.6 shares authorized; 497.0 and 520.3 shares issued and outstanding)	19,762	19,593
Retained earnings	16,792	16,315
Accumulated other changes in equity from nonowner sources	1,271	1,219
Treasury stock, at cost (227.4 and 199.6 shares)	(11,231)	(9,791)
Total shareholders' equity	26,671	27,415
Total liabilities and shareholders' equity	$108,696	$109,560

Balance Sheet Parentheticals (U

Balance Sheet Parentheticals (Unaudited at March 31, 2010) (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
Balance Sheet Parentheticals
Fixed maturities, subject to securities lending	$83	$90
Fixed maturities, amortized cost	62,463	63,311
Equity securities, at cost	$367	$373
Preferred Stock Savings Plan, shares issued	0.2	0.2
Preferred Stock Savings Plan, shares outstanding	0.2	0.2
Common stock, shares authorized	1748.6	1748.6
Common stock, shares issued	497	520.3
Common stock, shares outstanding	497	520.3
Treasury stock (at cost), shares	227.4	199.6

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Convertible preferred stock - savings plan
Convertible preferred stock - savings plan, balance, beginning of year	$79	$89
Convertible preferred stock - savings plan, redemptions during period	(2)	(2)
Convertible preferred stock - savings plan, balance, end of period	77	87
Common stock [Abstract]
Common stock, balance, beginning of year	19,593	19,242
Common stock, employee share-based compensation	119	11
Common stock, compensation amortization under share-based plans and other changes	50	37
Common stock, balance, end of period	19,762	19,290
Retained earnings [Abstract]
Retained earnings, balance, beginning of year	16,315	13,314
Net income	647	662
Dividends	(169)	(178)
Retained earnings, other	(1)	7
Retained earnings, balance, end of period	16,792	13,805
Accumulated other changes in equity from nonowner sources, net of tax
Accumulated other changes in equity from nonowner sources, net of tax, balance, beginning of year	1,219	(900)
Change in net unrealized gain (loss) on investment securities having no credit losses recognized in the consolidated statement of income	54	687
Change in net unrealized gain (loss) on investment securities having credit losses recognized in the consolidated statement of income	23
Net change in unrealized foreign currency translation and other changes	(25)	(19)
Accumulated other changes in equity from nonowner sources, net of tax, balance, end of period	1,271	(232)
Treasury stock (at cost)
Treasury stock (at cost), balance, beginning of year	(9,791)	(6,426)
Treasury stock (at cost), treasury shares acquired - share repurchase authorization	(1,400)
Treasury stock (at cost), net shares acquired related to employee share-based compensation plans	(40)	(27)
Treasury stock (at cost), balance, end of period	(11,231)	(6,453)
Total common shareholders' equity	26,594	26,410
Total shareholders' equity	26,671	26,497
Common shares outstanding
Common shares outstanding, balance, beginning of year	520.3	585.1
Common shares outstanding, treasury shares acquired - share repurchase authorization	(27)
Common shares outstanding, net shares issued under employee share-based compensation plans	3.7	0.2
Common shares outstanding, balance, end of period	497	585.3
Summary of changes in equity from nonowner sources
Net income	647	662
Other changes in equity from nonowner sources, net of tax	52	668
Total changes in equity from nonowner sources	$699	$1,330

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities
Net income	$647	$662
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(25)	214
Depreciation and amortization expense	216	206
Deferred federal income tax expense	76	22
Amortization of deferred policy acquisition costs	929	944
Equity in (income) loss from other investments	(45)	194
Change in premiums receivable	(97)	(44)
Change in reinsurance recoverables	86	167
Change in deferred acquisition costs	(939)	(948)
Change in claims and claim adjustment expense reserves	(224)	(373)
Change in unearned premium reserves	86	64
Other operating activities	(179)	(295)
Net cash provided by operating activities	531	813
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,229	1,210
Proceeds from sales of investments, fixed maturities	1,646	630
Proceeds from sales of investments, equity securities	19	16
Proceeds from sales of investments, real estate	9
Proceeds from sales of investments, other investments	114	92
Purchases of investments, fixed maturities	(2,175)	(2,265)
Purchases of investments, equity securities	(5)	(12)
Purchases of investments, real estate	(3)	(5)
Purchases of investments, other investments	(104)	(112)
Net (purchases) sales of short-term securities	202	(451)
Securities transactions in course of settlement	95	398
Other investing activities	(75)	(84)
Net cash provided by (used in) investing activities	952	(583)
Cash flows from financing activities
Payment of debt		(141)
Dividends paid to shareholders	(168)	(178)
Issuance of common stock - employee share options	123	10
Treasury stock acquired - share repurchase authorization	(1,407)
Treasury stock acquired - net employee share-based compensation	(38)	(27)
Excess tax benefits from share-based payment arrangements, financing activities	4	1
Net cash used in financing activities	(1,486)	(335)
Effect of exchange rate changes on cash	(1)
Net decrease in cash	(4)	(105)
Cash at beginning of period	255	350
Cash at end of period	251	245
Supplemental disclosure of cash flow information
Income taxes paid	44	34
Interest paid	$63	$63

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies Footnote
	3 Months Ended Mar. 31, 2010
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 2009 financial statements and notes to conform to the 2010 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 2009 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 Accounting Standards Updates Amendments to Accounting for Variable Interest Entities In June2009, the FASB issued updated guidance on the accounting for variable interest entities that eliminates the concept of a qualifying special-purpose entity and the quantitative-based risks and rewards calculation for determining which company, if any, has a controlling financial interest in a variable interest entity. The updated guidance requires an analysis of whether a company has: (1)the power to direct the activities of a variable interest entity that most significantly impact the entitys economic performance and (2)the obligation to absorb the losses that could potentially be significant to the entity or the right to receive benefits from the entity that could potentially be significant to the entity. An entity is required to be re-evaluated as a variable interest entity when the holders of the equity investment at risk, as a group, lose the power from voting rights or similar rights to direct the activities that most significantly impact the entitys economic performance. Additional disclosures are required about a companys involvement in variable interest entities and an ongoing assessment of whether a company is the primary beneficiary. The updated guidance is effective for all variable interest entities owned on or formed after January1, 2010. The adoption of this guidance did not have any effect on the Companys results of operations, financial position or liquidity. Nature of Operations The Company is organized into three reportable business segments: Business Insurance; Financial, Professional In

Segment Information Footnote

Segment Information Footnote
	3 Months Ended Mar. 31, 2010
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 March31,in millions) BusinessInsurance Financial, Professional International Insurance PersonalInsurance TotalReportableSegments 2010 Premiums $ 2,628 $ 824 $ 1,778 $ 5,230 Net investment income 528 111 114 753 Fee income 79 79 Other revenues 6 6 20 32 Total operating revenues (1) $ 3,241 $ 941 $ 1,912 $ 6,094 Operating income (1) $ 567 $ 86 $ 59 $ 712 2009 Premiums $ 2,757 $ 801 $ 1,743 $ 5,301 Net investment income 355 104 83 542 Fee income 73 73 Other revenues 6 6 21 33 Total operating revenues (1) $ 3,191 $ 911 $ 1,847 $ 5,949 Operating income (1) $ 547 $ 148 $ 154 $ 849 (1) Operating revenues for reportable business segments exclude net realized investment gains (losses). Operating income for reportable business segments equals net income excluding the after-tax impact of net realized investment gains (losses). Business Segment Reconciliations Three Months EndedMarch31, (in millions) 2010 2009 Revenue reconciliation Earned premiums Business Insurance: Commercial multi-peril $ 710 $ 718 Workers compensation 600 633 Commercial automobile 471 479 Property 423 446 General liability 425 482 Other (1 ) (1 ) Total Business Insurance 2,628 2,757 Financial, Professional International Insurance: Fidelity and surety 247 248 General liability 226 228 International 318 292 Other 33 33 Total Financial, Professional International Insurance 824 801 Personal Insurance: Automobile 904 918 Homeowners and other 874 825 Total Personal Insurance 1,778 1,743 Total earned premiums 5,230 5,301 Net investment income 753 542 Fee income 79 73 Other revenues 32 33 Total operating revenues for reportable segments 6,094 5,949 Net realized investment gains (losses) 25 (214 ) Total consolidated revenues $ 6,119 $ 5,735 Income reconciliation, net of tax Total operating income for reportable segments $ 712 $ 849 Interest Expense and Other (1) (81 ) (50 ) Total operating income 631 799 Net realized investment gains (losses) 16 (137 ) Total consolidated net income $ 647 $ 662 (1) The primary component of Interest Expense and Other is after-tax interest expense of $64 million and $60 million for the three months ended March31, 2010 and 2009, respectively. The 2010 total included $12 million of tax expense associated with the recently enacted federal health care le

Investments Footnote

Investments Footnote
	3 Months Ended Mar. 31, 2010
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 March31, 2010, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities $ 2,019 $ 85 $ $ 2,104 Obligations of states, municipalities and political subdivisions 39,642 1,810 46 41,406 Debt securities issued by foreign governments 1,877 48 3 1,922 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 4,915 216 121 5,010 All other corporate bonds 13,962 723 62 14,623 Redeemable preferred stock 48 4 1 51 Total $ 62,463 $ 2,886 $ 233 $ 65,116 Amortized Gross Unrealized Fair (at December31, 2009, in millions) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government and government agencies and authorities $ 2,490 $ 85 $ 1 $ 2,574 Obligations of states, municipalities and political subdivisions 39,459 1,915 41 41,333 Debt securities issued by foreign governments 1,912 48 3 1,957 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 5,182 190 165 5,207 All other corporate bonds 14,221 623 116 14,728 Redeemable preferred stock 47 2 1 48 Total $ 63,311 $ 2,863 $ 327 $ 65,847 Equity Securities The cost and fair value of investments in equity securities were as follows: GrossUnrealized Fair (at March31, 2010, in millions) Cost Gains Losses Value Common stock $ 174 $ 54 $ 1 $ 227 Non-redeemable preferred stock 193 54 11 236 Total $ 367 $ 108 $ 12 $ 463 GrossUnrealized Fair (at December31, 2009, in millions) Cost Gains Losses Value Common stock $ 175 $ 46 $ 2 $ 219 Non-redeemable preferred stock 198 48 14 232 Total $ 373 $ 94 $ 16 $ 451 Variable Interest Entities Entities which do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (VIE). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is

Fair Value Measurements Footnot

Fair Value Measurements Footnote
	3 Months Ended Mar. 31, 2010
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 on th

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets Footnote
	3 Months Ended Mar. 31, 2010
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 March31, 2010 and December31, 2009: (in millions) March31,2010 December31, 2009 Business Insurance $ 2,168 $ 2,168 Financial, Professional International Insurance 557 557 Personal Insurance 613 613 Other 27 27 Total $ 3,365 $ 3,365 Other Intangible Assets The following presents a summary of the Companys other intangible assets by major asset class at March31, 2010 and December31, 2009: (at March31, 2010, in millions) Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization Customer-related $ 935 $ 739 $ 196 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables (1) 191 39 152 Total intangible assets subject to amortization 1,126 778 348 Intangible assets not subject to amortization 216 216 Total other intangible assets $ 1,342 $ 778 $ 564 (at December31, 2009, in millions) Gross Carrying Amount Accumulated Amortization Net Intangible assets subject to amortization Customer-related $ 935 $ 722 $ 213 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables (1) 191 32 159 Total intangible assets subject to amortization 1,126 754 372 Intangible assets not subject to amortization 216 216 Total other intangible assets $ 1,342 $ 754 $ 588 (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 presents a summary of the Companys amortization expense for other intangible assets by major asset class: (for the three months ended March31, in millions) 2010 2009 Customer-related $ 17 $ 21 Fair value adjustment on claims and claim adjustment expense reserves and reinsurance recoverables 7 7 Total amortization expense $ 24 $ 28 Intangible asset amortization expense is estimated to be $62 million for the remainder of 2010, $69 million in 2011, $52 million in 2012, $45 million in 2013 and $43 million in 2014.

Share Repurchase Authorization

Share Repurchase Authorization Footnote
	3 Months Ended Mar. 31, 2010
Share Repurchase Authorization disclosure [Abstract]
Share Repurchase Authorization disclosure	6. SHARE REPURCHASE AUTHORIZATION Since May2006, the Companys board of directors has approved four common share repurchase authorizations, for a cumulative authorization of up to $16 billion of shares of the Companys common stock. Under these authorizations, the most recent of which totaled $6 billion and was approved by the board of directors in October2009, 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 authorizations do 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 the Companys earnings, corporate and regulatory requirements, share price, catastrophe losses, strategic initiatives and other market conditions. During the three months ended March31, 2010, the Company repurchased 27.0 million shares under its share repurchase authorization, for a total cost of approximately $1.40 billion. The average cost per share repurchased was $51.88. At March31, 2010, the Company had $5.11 billion of capacity remaining under the share repurchase authorization.

Changes in Equity from Nonowner

Changes in Equity from Nonowner Sources Footnote
	3 Months Ended Mar. 31, 2010
Change in Equity from Nonowner Sources disclosure [Abstract]
Change in Equity from Nonowner Sources disclosure	7. CHANGES IN EQUITY FROM NONOWNER SOURCES The Companys total changes in equity from nonowner sources were as follows: Three Months EndedMarch31, (in millions, after-tax) 2010 2009 Net income $ 647 $ 662 Change in net unrealized gain (loss) on investments: Having no credit losses recognized in the consolidated statement of income 54 687 Having credit losses recognized in the consolidated statement of income 23 Other changes (25 ) (19 ) Total changes in equity from nonowner sources $ 699 $ 1,330

Earnings per Share Footnote

Earnings per Share Footnote
	3 Months Ended Mar. 31, 2010
Earnings per Share disclosure [Abstract]
Earnings per Share disclosure [Text Block]	8. EARNINGS PER SHARE The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations: Three Months EndedMarch31, (in millions, except per share amounts) 2010 2009 Basic Net income, as reported $ 647 $ 662 Preferred stock dividends (1 ) (1 ) Participating share-based awards allocated income (5 ) (5 ) Net income available to common shareholders basic $ 641 $ 656 Diluted Net income available to common shareholders $ 641 $ 656 Effect of dilutive securities: Convertible preferred stock 1 1 Zero coupon convertible notes 1 Net income available to common shareholders diluted $ 642 $ 658 Common Shares Basic Weighted average shares outstanding 508.4 584.6 Diluted Weighted average shares outstanding 508.4 584.6 Weighted average effects of dilutive securities: Stock options and performance shares 4.8 2.0 Convertible preferred stock 1.9 2.2 Zero coupon convertible notes 1.6 Total 515.1 590.4 Net Income per Common Share Basic $ 1.26 $ 1.12 Diluted $ 1.25 $ 1.11

Share-Based Incentive Compensat

Share-Based Incentive Compensation Footnote
	3 Months Ended Mar. 31, 2010
Share-Based Incentive Compensation disclosure [Abstract]
Share-Based Incentive Compensation disclosure	9. SHARE-BASED INCENTIVE COMPENSATION The following presents information for fully vested stock option awards at March31, 2010: Stock Options Number Weighted Average Exercise Price Weighted Average Contractual Life Remaining AggregateIntrinsic Value($in millions) Vested at end of period (1) 24,639,942 $ 46.20 3.6 years $ 201 Exercisable at end of period 21,136,868 $ 46.22 2.8 years $ 173 (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 $42 million and $37 million for the three months ended March31, 2010 and 2009, respectively. The related tax benefit recognized in earnings was $15 million and $13 million for the three months ended March31, 2010 and 2009, respectively. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at March31, 2010 was $186 million, which is expected to be recognized over a weighted-average period of 2.2 years. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards at December31, 2009 was $111 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 Plans Footnote
	3 Months Ended Mar. 31, 2010
Pension Plans, Retirement Benefits and Savings Plans disclosure [Abstract]
Pension Plans, Retirement Benefits and Savings Plans disclosure	10. 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. PensionPlans PostretirementBenefitPlans (forthethreemonthsendedMarch31,inmillions) 2010 2009 2010 2009 Net Periodic Benefit Cost: Service cost $ 24 $ 20 $ $ Interest cost on benefit obligation 32 31 4 4 Expected return on plan assets (46 ) (43 ) Amortization of unrecognized: Prior service benefit (1 ) (1 ) Net actuarial loss 15 5 Net benefit expense $ 24 $ 12 $ 4 $ 4

Contingencies, Commitments and

Contingencies, Commitments and Guarantees Footnote
	3 Months Ended Mar. 31, 2010
Contingencies, Commitments and Guarantees disclosure [Abstract]
Contingencies, Commitments and Guarantees disclosure	11. 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 purported com

Consolidating Financial Stateme

Consolidating Financial Statements Footnote
	3 Months Ended Mar. 31, 2010
Consolidating Financial Statements disclosure [Abstract]
Consolidating Financial Statements of The Travelers Companies, Inc. and Subsidiaries disclosure	12. 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 March31, 2010. 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 is deemed to have no 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 March31, 2010 (inmillions) TPC OtherSubsidiaries Travelers(1) Eliminations Consolidated Revenues Premiums $ 3,523 $ 1,707 $ $ $ 5,230 Net investment income 519 231 3 753 Fee income 79 79 Net realized investment gains (losses) 21 14 (10 ) 25 Other revenues 28 4 32 Total revenues 4,170 1,956 (7 ) 6,119 Claims and expenses Claims and claim adjustment expenses 2,225 1,163 3,388 Amortization of deferred acquisition costs 616 313 929 General and administrative expenses 574 267 6 847 Interest expense 18 80 98 Total claims and expenses 3,433 1,743 86 5,262 Income (loss) before income taxes 737 213 (93 ) 857 Income tax expense (benefit) 171 49 (10 ) 210 Equity in net income of subsidiaries 730 (730 ) Net income $ 566 $ 164 $ 647 $ (730 ) $ 647 (inmillions) TPC OtherSubsidiaries Travelers(1) Eliminations Consolidated Net Realized Investment Gains (Losses) Other-than-temporary impairment losses: Total losses $ 3 $ (4 ) $ $ $ (1 ) Portion of losses recognized in accumulated other changes in equity from nonowner sources (6 ) (3 ) (9 ) Other-than-temporary impairment losses (3 ) (7 ) (10 ) Other net realized investment gains (losses) 24 21 (10 ) 35 Net realized investment gains (losses) $ 21 $ 14 $ (10 ) $ $ 25 (1) The Travelers Companies,Inc., excluding its subsidiaries. CONSOLIDATING STATEMENT OF INCOME (Unaudited) For the three months ended March31, 2009 (in millions) TPC OtherSubsidiaries Travelers(1)