The Travelers Companies, Inc. (TRV) 8-K Travelers Reports Third Quarter Net Income per Diluted Share of $2.69, Up 17% from Prior Year Quarter

Exhibit 99.2

The Travelers Companies, Inc.
Financial Supplement - Third Quarter 2014

	Page Number
Business Realignment
Business and International Insurance	i
Bond & Specialty Insurance	ii
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 and International Insurance
Operating Income	8
Operating Income by Major Component and Combined Ratio	9
Selected Statistics	10
Net Written Premiums	11
Bond & Specialty Insurance
Operating Income	12
Operating Income by Major Component and Combined Ratio	13
Selected Statistics	14
Net Written Premiums	15
Personal Insurance
Operating Income	16
Operating Income by Major Component and Combined Ratio	17
Selected Statistics	18
Selected Statistics - Agency Automobile	19
Selected Statistics - Agency Homeowners and Other	20
Selected Statistics - Direct to Consumer	21
Supplemental Detail
Interest Expense and Other	22
Consolidated Balance Sheet	23
Investment Portfolio	24
Investment Portfolio - Fixed Maturities Data	25
Investment Income	26
Net Realized and Unrealized Investment Gains	27
Reinsurance Recoverables	28
Net Reserves for Losses and Loss Adjustment Expense	29
Asbestos and Environmental Reserves	30
Capitalization	31
Statutory to GAAP Shareholders’ Equity Reconciliation	32
Statement of Cash Flows	33
Statement of Cash Flows (continued)	34
Glossary of Financial Measures and Description of Reportable Business Segments	35

On November 1, 2013, the Company acquired all of the issued and outstanding shares of The Dominion of Canada General Insurance Company (Dominion) for an aggregate purchase price of approximately $1.035 billion.  The results of operations of the acquired business are reported in the Company’s Business and International Insurance segment from the closing date.

The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.

Index

The Travelers Companies, Inc. Financial Supplement - Third Quarter 2014 Business Realignment

On June 10, 2014, the Company announced a realignment of its management team, effective July 1, 2014, that gave rise to a realignment of two of its three reportable business segments, as follows:

· The Company’s International Insurance group, which had previously been included in the Financial, Professional & International Insurance segment, was combined with the Company’s previous Business Insurance segment to create a new Business and International Insurance segment.

· The Bond & Financial Products group, which comprised the remaining businesses in the Financial, Professional & International Insurance segment, now comprises the new Bond & Specialty Insurance segment.

· The Personal Insurance segment was not impacted by these changes.

The realignment of segments described above was made to reflect the realignment of the Company’s senior management responsibilities and the manner in which the Company’s businesses have been managed starting July 1, 2014, and the aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten.

In connection with these changes, the Company has realigned and revised the names of several businesses that comprise the Business and International Insurance segment.  The new reportable business segments are as follows:

Business and International Insurance

The Business and International Insurance segment offers a broad array of property and casualty insurance and insurance related services to its clients, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world as a corporate member of Lloyd’s.  Business and International Insurance is organized as follows:

Domestic

· Select Accounts provides small businesses with property and casualty products, including commercial multi-peril, commercial property, general liability, commercial auto and workers’ compensation insurance.

· Middle Market provides mid-sized businesses with property and casualty products, including commercial multi-peril, commercial property, general liability, commercial auto and workers’ compensation insurance, as well as risk management, claims handling and other services.  Middle Market generally provides these products to mid-sized businesses through Commercial Accounts, as well as to targeted industries through Construction, Technology, Public Sector Services and Oil & Gas.  Middle Market also provides mono-line umbrella and excess coverage insurance through Excess Casualty and insurance coverages for foreign organizations with United States exposures through Global Partner Services.

· National Accounts provides large companies with casualty products and services, including workers’ compensation, general liability and automobile liability, generally utilizing loss-sensitive products, on both a bundled and unbundled basis.  National Accounts also includes the Company’s commercial residual market business, which primarily offers workers’ compensation products and services to the involuntary market.

· First Party provides traditional and customized property insurance programs to large and mid-sized customers through National Property, insurance for goods in transit and movable objects, as well as builders’ risk insurance, through Inland Marine, insurance for the marine transportation industry and related services, as well as other businesses involved in international trade, through Ocean Marine and comprehensive breakdown coverages for equipment, including property and business interruption coverages, through Boiler & Machinery.

· Specialized Distribution markets and underwrites its products to customers predominantly through licensed wholesale agents and program managers that manage customers’ unique insurance requirements. Specialized Distribution provides insurance coverage for the commercial transportation industry, as well as commercial liability and commercial property policies for small, difficult to place specialty classes of commercial business primarily on an excess and surplus lines basis, through Northland, and tailored property and casualty programs on an admitted basis for customers with common risk characteristics or coverage requirements through National Programs.  Specialized Distribution also serves small to medium-sized agricultural businesses, including farms, ranches, wineries and related operations, through Agribusiness.

i

The Travelers Companies, Inc. Financial Supplement - Third Quarter 2014 Business Realignment (Continued)

International

· International, through its operations in Canada, the United Kingdom and the Republic of Ireland, offers property and casualty insurance and risk management services to several customer groups, including, among others, those in the technology, public services, and financial and professional services industry sectors.  In addition, International markets personal lines and small commercial insurance business in Canada through The Dominion of Canada General Insurance Company (Dominion), which the Company acquired on November 1, 2013.  International, through its Lloyd’s syndicate (Syndicate 5000), for which the Company provides 100% of the capital, underwrites five principal businesses — marine, global property, accident & special risks, power & utilities and aviation.

International also inlcudes the Company’s 49.5% ownership of the common stock of J. Malucelli Participações em Seguros e Resseguros S.A. (JMalucelli), its joint venture in Brazil. JMalucelli is currently the market leader in surety in Brazil based on market share.  JMalucelli commenced writing other property and casualty insurance business in 2012. The Company’s investment in JMalucelli is accounted for using the equity method and is included in “other investments” on the consolidated balance sheet.

Business and International Insurance also includes the Specialty Liability Group (which manages the Company’s asbestos and environmental liabilities) and the assumed reinsurance and certain other runoff operations, which are collectively referred to as Business and International Insurance Other.

Bond & Specialty Insurance

The Bond & Specialty Insurance segment provides a wide range of customers with bond and insurance products and risk management services. The range of coverages includes performance, payment and commercial surety and fidelity bonds for construction and general commercial enterprises; management liability coverages for losses caused by the actual or alleged negligence or misconduct of directors and officers or employee dishonesty; employment practices liability coverages and fiduciary coverages for public corporations, private companies and not-for-profit organizations; professional liability coverage for actual or alleged errors and omissions committed in the course of professional conduct or practice for a variety of professionals including, among others, lawyers and design professionals; and professional and management liability, property, workers’ compensation, auto and general liability and fidelity insurance for financial institutions.  The surety and financial liability coverages provided by Bond & Specialty Insurance primarily use credit-based underwriting processes.

Personal Insurance

The Personal Insurance segment writes a broad range of property and casualty insurance covering individuals’ personal risks.  The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

ii

The Travelers Companies, Inc. Financial Highlights ($ and shares in millions, except per share data) 

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	919		$	2,685		$	2,654
Net income per share:
Basic	$	2.36		$	2.44		$	2.33		$	2.73		$	2.98		$	1.98		$	2.72		$	7.12		$	7.68
Diluted	$	2.33		$	2.41		$	2.30		$	2.70		$	2.95		$	1.95		$	2.69		$	7.05		$	7.60
Operating income	$	887		$	816		$	883		$	981		$	1,052		$	673		$	893		$	2,586		$	2,618
Operating income per share:
Basic	$	2.33		$	2.15		$	2.38		$	2.71		$	2.98		$	1.95		$	2.64		$	6.86		$	7.58
Diluted	$	2.31		$	2.13		$	2.35		$	2.68		$	2.95		$	1.93		$	2.61		$	6.79		$	7.50
Return on equity	14.1		%	14.6		%	13.9		%	15.9		%	16.8		%	10.7		%	14.5		%	14.2		%	14.0		%
Operating return on equity	15.8		%	14.2		%	15.2		%	16.8		%	17.8		%	11.4		%	15.2		%	15.1		%	14.8		%
Total assets, at period end	$	103,897		$	101,900		$	102,685		$	103,812		$	104,134		$	104,811		$	104,522		$	102,685		$	104,522
Total equity, at period end	$	25,596		$	24,890		$	24,811		$	24,796		$	25,387		$	25,532		$	25,321		$	24,811		$	25,321
Book value per share, at period end	$	68.00		$	66.65		$	68.15		$	70.15		$	73.06		$	75.32		$	76.42		$	68.15		$	76.42
Less: Net unrealized investment gains, net of tax	7.61			4.53			4.28			3.74			4.81			5.94			5.78			4.28			5.78
Adjusted book value per share, at period end	$	60.39		$	62.12		$	63.87		$	66.41		$	68.25		$	69.38		$	70.64		$	63.87		$	70.64
Weighted average number of common shares outstanding (basic)	377.7			375.9			368.9			359.1			350.9			343.0			335.1			374.1			342.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)	381.9			379.9			372.9			363.4			354.6			346.7			338.9			378.1			346.5
Common shares outstanding at period end	376.4			373.5			364.1			353.5			347.5			339.0			331.4			364.1			331.4
Common stock dividends declared	$	176		$	191		$	185		$	182		$	177		$	190		$	186		$	552		$	553
Common stock repurchased:
Under Board of Directors authorization
Shares	3.7			3.6			9.7			11.4			7.8			9.5			8.1			17.0			25.4
Cost	$	300		$	300		$	800		$	1,000		$	650		$	875		$	750		$	1,400		$	2,275
Other
Shares	0.7			—			0.1			—			0.7			—			—			0.8			0.7
Cost	$	58		$	1		$	1		$	1		$	55		$	1		$	1		$	60		$	57

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

1

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

																YTD		YTD
	1Q		2Q		3Q			4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013			2013		2014		2014		2014		2013		2014
Net income
Operating income	$	887	$	816	$	883		$	981	$	1,052	$	673	$	893	$	2,586	$	2,618
Net realized investment gains (losses), after-tax	9		109		(19		)	7		—		10		26		99		36
Net income	$	896	$	925	$	864		$	988	$	1,052	$	683	$	919	$	2,685	$	2,654
Basic earnings per share
Operating income	$	2.33	$	2.15	$	2.38		$	2.71	$	2.98	$	1.95	$	2.64	$	6.86	$	7.58
Net realized investment gains (losses), after-tax	0.03		0.29		(0.05		)	0.02		—		0.03		0.08		0.26		0.10
Net income	$	2.36	$	2.44	$	2.33		$	2.73	$	2.98	$	1.98	$	2.72	$	7.12	$	7.68
Diluted earnings per share
Operating income	$	2.31	$	2.13	$	2.35		$	2.68	$	2.95	$	1.93	$	2.61	$	6.79	$	7.50
Net realized investment gains (losses), after-tax	0.02		0.28		(0.05		)	0.02		—		0.02		0.08		0.26		0.10
Net income	$	2.33	$	2.41	$	2.30		$	2.70	$	2.95	$	1.95	$	2.69	$	7.05	$	7.60

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Basic and Diluted
Net income, as reported	$	896		$	925		$	864		$	988		$	1,052		$	683		$	919		$	2,685		$	2,654
Participating share-based awards - allocated income	(6		)	(7		)	(6		)	(8		)	(7		)	(5		)	(7		)	(20		)	(19		)
Net income available to common shareholders - basic and diluted	$	890		$	918		$	858		$	980		$	1,045		$	678		$	912		$	2,665		$	2,635
Common Shares
Basic
Weighted average shares outstanding	377.7			375.9			368.9			359.1			350.9			343.0			335.1			374.1			342.9
Diluted
Weighted average shares outstanding	377.7			375.9			368.9			359.1			350.9			343.0			335.1			374.1			342.9
Weighted average effects of dilutive securities - stock options and performance shares	4.2			4.0			4.0			4.3			3.7			3.7			3.8			4.0			3.6
Diluted weighted average shares outstanding	381.9			379.9			372.9			363.4			354.6			346.7			338.9			378.1			346.5

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

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

2

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Revenues
Premiums	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823		$	5,928		$	5,983		$	16,786		$	17,734
Net investment income	670			687			657			702			736			695			719			2,014			2,150
Fee income	97			82			107			109			107			112			110			286			329
Net realized investment gains (losses)	10			167			(22		)	11			1			16			40			155			57
Other revenues	34			135			44			64			41			34			34			213			109
Total revenues	6,328			6,674			6,452			6,737			6,708			6,785			6,886			19,454			20,379
Claims and expenses
Claims and claim adjustment expenses	3,153			3,530			3,297			3,327			3,315			3,826			3,520			9,980			10,661
Amortization of deferred acquisition costs	948			950			953			970			950			965			984			2,851			2,899
General and administrative expenses	915			931			934			977			881			1,001			1,031			2,780			2,913
Interest expense	92			86			91			92			92			92			93			269			277
Total claims and expenses	5,108			5,497			5,275			5,366			5,238			5,884			5,628			15,880			16,750
Income before income taxes	1,220			1,177			1,177			1,371			1,470			901			1,258			3,574			3,629
Income tax expense	324			252			313			383			418			218			339			889			975
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	919		$	2,685		$	2,654
Other-than-temporary impairments (OTTI)
Total OTTI gains (losses)	$	—		$	(1	)	$	—		$	(9	)	$	(7	)	$	(1	)	$	(8	)	$	(1	)	$	(16	)
OTTI losses recognized in net realized investment gains (losses)	$	(5	)	$	(2	)	$	(3	)	$	(5	)	$	(9	)	$	(1	)	$	(10	)	$	(10	)	$	(20	)
OTTI gains (losses) recognized in other comprehensive income	$	5		$	1		$	3		$	(4	)	$	2		$	—		$	2		$	9		$	4
Other statistics
Effective tax rate on net investment income	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%	20.5		%	20.9		%	19.3		%	20.8		%
Net investment income (after-tax)	$	542		$	551		$	531		$	562		$	582		$	553		$	568		$	1,624		$	1,703
Catastrophes, net of reinsurance:
Pre-tax	$	99		$	340		$	99		$	53		$	149		$	436		$	83		$	538		$	668
After-tax	$	65		$	221		$	64		$	37		$	97		$	284		$	54		$	350		$	435
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	231		$	192		$	158		$	259		$	294		$	183		$	113		$	581		$	590
After-tax	$	154		$	125		$	107		$	166		$	190		$	122		$	74		$	386		$	386

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

3

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Underwriting gain	$	385		$	235		$	387		$	435		$	507		$	162		$	364		$	1,007		$	1,033
Net investment income	542			551			531			562			582			553			568			1,624			1,703
Other, including interest expense	(40		)	30			(35		)	(16		)	(37		)	(42		)	(39		)	(45		)	(118		)
Operating income	887			816			883			981			1,052			673			893			2,586			2,618
Net realized investment gains (losses)	9			109			(19		)	7			—			10			26			99			36
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	919		$	2,685		$	2,654
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	56.2		%	62.3		%	57.3		%	56.0		%	56.0		%	63.6		%	58.0		%	58.6		%	59.2		%
Underwriting expense ratio	32.3		%	32.0		%	31.6		%	31.7		%	29.7		%	31.5		%	32.0		%	32.0		%	31.1		%
Combined ratio	88.5		%	94.3		%	88.9		%	87.7		%	85.7		%	95.1		%	90.0		%	90.6		%	90.3		%
Combined ratio excluding incremental impact of direct to consumer initiative	87.8		%	93.8		%	88.4		%	87.1		%	85.3		%	94.6		%	89.4		%	90.0		%	89.8		%
Impact of catastrophes on combined ratio	1.8		%	6.1		%	1.7		%	0.9		%	2.6		%	7.3		%	1.4		%	3.2		%	3.7		%
Impact of prior year reserve development on combined ratio	-4.1		%	-3.5		%	-2.8		%	-4.4		%	-5.1		%	-3.1		%	-1.9		%	-3.4		%	-3.3		%

(1)  Before policyholder dividends.

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Billing and policy fees and other	$	24	$	25	$	25	$	28	$	30	$	25	$	25	$	74	$	80
Fee income:
Loss and loss adjustment expenses	$	42	$	27	$	44	$	46	$	43	$	46	$	43	$	113	$	132
Underwriting expenses	55		55		63		63		64		66		67		173		197
Total fee income	$	97	$	82	$	107	$	109	$	107	$	112	$	110	$	286	$	329

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

4

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Revenues
Premiums	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823		$	5,928		$	5,983		$	16,786		$	17,734
Net investment income	670			687			657			702			736			695			719			2,014			2,150
Fee income	97			82			107			109			107			112			110			286			329
Other revenues	34			135			44			64			41			34			34			213			109
Total revenues	6,318			6,507			6,474			6,726			6,707			6,769			6,846			19,299			20,322
Claims and expenses
Claims and claim adjustment expenses	3,153			3,530			3,297			3,327			3,315			3,826			3,520			9,980			10,661
Amortization of deferred acquisition costs	948			950			953			970			950			965			984			2,851			2,899
General and administrative expenses	915			931			934			977			881			1,001			1,031			2,780			2,913
Interest expense	92			86			91			92			92			92			93			269			277
Total claims and expenses	5,108			5,497			5,275			5,366			5,238			5,884			5,628			15,880			16,750
Operating income before income taxes	1,210			1,010			1,199			1,360			1,469			885			1,218			3,419			3,572
Income tax expense	323			194			316			379			417			212			325			833			954
Operating income	$	887		$	816		$	883		$	981		$	1,052		$	673		$	893		$	2,586		$	2,618
Other statistics
Effective tax rate on net investment income	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%	20.5		%	20.9		%	19.3		%	20.8		%
Net investment income (after-tax)	$	542		$	551		$	531		$	562		$	582		$	553		$	568		$	1,624		$	1,703
Catastrophes, net of reinsurance:
Pre-tax	$	99		$	340		$	99		$	53		$	149		$	436		$	83		$	538		$	668
After-tax	$	65		$	221		$	64		$	37		$	97		$	284		$	54		$	350		$	435
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	231		$	192		$	158		$	259		$	294		$	183		$	113		$	581		$	590
After-tax	$	154		$	125		$	107		$	166		$	190		$	122		$	74		$	386		$	386

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

5

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

																				YTD			YTD
	1Q			2Q			3Q			4Q		1Q			2Q		3Q			3Q			3Q
	2013			2013			2013			2013		2014			2014		2014			2013			2014
Statutory underwriting
Gross written premiums	$	6,188		$	6,247		$	6,310		$	5,912	$	6,401		$	6,525	$	6,578		$	18,745		$	19,504
Net written premiums	$	5,597		$	5,824		$	5,713		$	5,633	$	5,873		$	6,168	$	6,033		$	17,134		$	18,074
Net earned premiums	$	5,517		$	5,603		$	5,666		$	5,851	$	5,823		$	5,934	$	5,983		$	16,786		$	17,740
Losses and loss adjustment expenses	3,070			3,490			3,250			3,282		3,267			3,766		3,468			9,810			10,501
Underwriting expenses	1,799			1,808			1,799			1,794		1,783			1,918		1,946			5,406			5,647
Statutory underwriting gain	648			305			617			775		773			250		569			1,570			1,592
Policyholder dividends	10			13			7			5		11			7		9			30			27
Statutory underwriting gain after policyholder dividends	$	638		$	292		$	610		$	770	$	762		$	243	$	560		$	1,540		$	1,565
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	40,215		$	40,145		$	40,037		$	41,568	$	41,383		$	41,715	$	41,525		$	40,037		$	41,525
Increase (decrease) in reserves	$	(441	)	$	(70	)	$	(108	)	$	1,531	$	(185	)	$	332	$	(190	)	$	(619	)	$	(43	)
Statutory basis surplus	$	20,692		$	20,672		$	21,509		$	21,123	$	21,440		$	21,036	$	21,005		$	21,509		$	21,005
Net written premiums/surplus (1)	1.09:1			1.09:1			1.05:1			1.08:1		1.07:1			1.11:1		1.13:1			1.05:1			1.13:1

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

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

6

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Written premiums
Gross	$	6,188		$	6,247		$	6,310		$	5,912		$	6,401		$	6,519		$	6,578		$	18,745		$	19,498
Ceded	(591		)	(423		)	(597		)	(279		)	(528		)	(357		)	(545		)	(1,611		)	(1,430		)
Net	$	5,597		$	5,824		$	5,713		$	5,633		$	5,873		$	6,162		$	6,033		$	17,134		$	18,068
Earned premiums
Gross	$	5,985		$	6,091		$	6,163		$	6,369		$	6,295		$	6,378		$	6,437		$	18,239		$	19,110
Ceded	(468		)	(488		)	(497		)	(518		)	(472		)	(450		)	(454		)	(1,453		)	(1,376		)
Net	$	5,517		$	5,603		$	5,666		$	5,851		$	5,823		$	5,928		$	5,983		$	16,786		$	17,734

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

7

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

Historical results conform with current business segment definitions.

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Revenues
Premiums	$	3,199		$	3,277		$	3,325		$	3,531		$	3,558		$	3,631		$	3,660		$	9,801		$	10,849
Net investment income	513			527			504			543			570			539			557			1,544			1,666
Fee income	97			82			107			109			107			112			110			286			329
Other revenues	13			114			8			25			12			10			10			135			32
Total revenues	3,822			4,000			3,944			4,208			4,247			4,292			4,337			11,766			12,876
Claims and expenses
Claims and claim adjustment expenses	1,853			2,179			2,087			2,166			2,177			2,455			2,360			6,119			6,992
Amortization of deferred acquisition costs	527			534			536			561			565			580			589			1,597			1,734
General and administrative expenses	585			586			575			623			554			653			661			1,746			1,868
Total claims and expenses	2,965			3,299			3,198			3,350			3,296			3,688			3,610			9,462			10,594
Operating income before income taxes	857			701			746			858			951			604			727			2,304			2,282
Income tax expense	221			130			180			227			257			133			175			531			565
Operating income	$	636		$	571		$	566		$	631		$	694		$	471		$	552		$	1,773		$	1,717
Other statistics
Effective tax rate on net investment income	19.3		%	19.9		%	19.2		%	20.2		%	21.1		%	20.6		%	21.0		%	19.5		%	20.9		%
Net investment income (after-tax)	$	414		$	422		$	408		$	433		$	450		$	427		$	440		$	1,244		$	1,317
Catastrophes, net of reinsurance:
Pre-tax	$	35		$	189		$	59		$	50		$	83		$	242		$	31		$	283		$	356
After-tax	$	23		$	123		$	39		$	35		$	55		$	158		$	19		$	185		$	232
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	142		$	58		$	77		$	122		$	95		$	47		$	21		$	277		$	163
After-tax	$	96		$	38		$	54		$	78		$	61		$	33		$	14		$	188		$	108

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

8

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

Historical results conform with current business segment definitions.

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Underwriting gain	$	214		$	74		$	153		$	180		$	236		$	37		$	104		$	441		$	377
Net investment income	414			422			408			433			450			427			440			1,244			1,317
Other	8			75			5			18			8			7			8			88			23
Operating income	$	636		$	571		$	566		$	631		$	694		$	471		$	552		$	1,773		$	1,717
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	56.3		%	65.4		%	61.3		%	59.9		%	59.8		%	66.2		%	63.1		%	61.1		%	63.0		%
Underwriting expense ratio	32.9		%	32.3		%	31.4		%	31.6		%	29.4		%	31.9		%	32.1		%	32.2		%	31.2		%
Combined ratio	89.2		%	97.7		%	92.7		%	91.5		%	89.2		%	98.1		%	95.2		%	93.3		%	94.2		%
Impact of catastrophes on combined ratio	1.1		%	5.8		%	1.8		%	1.4		%	2.4		%	6.6		%	0.9		%	2.9		%	3.3		%
Impact of prior year reserve development on combined ratio	-4.5		%	-1.8		%	-2.3		%	-3.4		%	-2.7		%	-1.3		%	-0.6		%	-2.8		%	-1.5		%

(1)  Before policyholder dividends.

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Billing and policy fees and other	$	4	$	5	$	4	$	7	$	8	$	7	$	7	$	13	$	22
Fee income:
Loss and loss adjustment expenses	$	42	$	27	$	44	$	46	$	43	$	46	$	43	$	113	$	132
Underwriting expenses	55		55		63		63		64		66		67		173		197
Total fee income	$	97	$	82	$	107	$	109	$	107	$	112	$	110	$	286	$	329

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

9

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

Historical results conform with current business segment definitions.

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Statutory underwriting
Gross written premiums	$	3,927	$	3,707	$	3,721	$	3,637	$	4,224	$	4,067	$	4,057	$	11,355	$	12,348
Net written premiums	$	3,512	$	3,386	$	3,249	$	3,365	$	3,772	$	3,735	$	3,560	$	10,147	$	11,067
Net earned premiums	$	3,199	$	3,277	$	3,325	$	3,531	$	3,558	$	3,637	$	3,660	$	9,801	$	10,855
Losses and loss adjustment expenses	1,772		2,141		2,042		2,117		2,132		2,397		2,310		5,955		6,839
Underwriting expenses	1,100		1,063		1,028		1,073		1,105		1,178		1,169		3,191		3,452
Statutory underwriting gain	327		73		255		341		321		62		181		655		564
Policyholder dividends	9		10		5		4		8		5		7		24		20
Statutory underwriting gain after policyholder dividends	$	318	$	63	$	250	$	337	$	313	$	57	$	174	$	631	$	544

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

10

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

Historical results conform with current business segment definitions.

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Net written premiums by market
Domestic
Select Accounts	$	724	$	709	$	654	$	637	$	718	$	705	$	654	$	2,087	$	2,077
Middle Market	1,610		1,392		1,487		1,373		1,632		1,420		1,545		4,489		4,597
National Accounts	277		242		236		255		300		243		249		755		792
First Party	383		433		382		354		387		450		369		1,198		1,206
Specialized Distribution	266		292		273		254		267		283		262		831		812
Total Domestic	3,260		3,068		3,032		2,873		3,304		3,101		3,079		9,360		9,484
International	252		318		217		492		468		628		481		787		1,577
Total	$	3,512	$	3,386	$	3,249	$	3,365	$	3,772	$	3,729	$	3,560	$	10,147	$	11,061
Net written premiums by product line
Commercial multi-peril	$	828	$	771	$	755	$	729	$	821	$	750	$	759	$	2,354	$	2,330
Workers’ compensation	1,056		860		885		841		1,076		904		921		2,801		2,901
Commercial automobile	484		476		488		449		490		456		484		1,448		1,430
Commercial property	427		484		424		413		440		505		415		1,335		1,360
General liability	458		469		458		438		469		477		478		1,385		1,424
International	252		318		217		492		468		628		481		787		1,577
Other	7		8		22		3		8		9		22		37		39
Total	$	3,512	$	3,386	$	3,249	$	3,365	$	3,772	$	3,729	$	3,560	$	10,147	$	11,061
National Accounts
Additions to claim volume under administration (1)	$	701	$	523	$	523	$	596	$	727	$	511	$	546	$	1,747	$	1,784
Written fees	$	104	$	88	$	92	$	81	$	111	$	87	$	95	$	284	$	293

(1)  Includes new and renewal business.

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

11

The Travelers Companies, Inc. Operating Income - Bond & Specialty Insurance ($ in millions)

Historical results conform with current business segment definitions.

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Revenues
Premiums	$	478		$	492		$	506		$	505		$	503		$	524		$	527		$	1,476		$	1,554
Net investment income	66			66			63			65			66			62			64			195			192
Other revenues	5			5			5			5			4			6			5			15			15
Total revenues	549			563			574			575			573			592			596			1,686			1,761
Claims and expenses
Claims and claim adjustment expenses	198			161			209			127			159			110			152			568			421
Amortization of deferred acquisition costs	91			94			98			95			93			95			101			283			289
General and administrative expenses	94			97			97			100			97			102			101			288			300
Total claims and expenses	383			352			404			322			349			307			354			1,139			1,010
Operating income before income taxes	166			211			170			253			224			285			242			547			751
Income tax expense	49			49			50			79			70			93			77			148			240
Operating income	$	117		$	162		$	120		$	174		$	154		$	192		$	165		$	399		$	511
Other statistics
Effective tax rate on net investment income	17.8		%	17.9		%	17.6		%	18.1		%	18.9		%	18.4		%	19.0		%	17.8		%	18.8		%
Net investment income (after-tax)	$	55		$	54		$	51		$	54		$	53		$	52		$	51		$	160		$	156
Catastrophes, net of reinsurance:
Pre-tax	$	—		$	5		$	2		$	1		$	1		$	4		$	1		$	7		$	6
After-tax	$	—		$	3		$	1		$	1		$	—		$	3		$	1		$	4		$	4
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	29		$	69		$	33		$	101		$	67		$	124		$	79		$	131		$	270
After-tax	$	19		$	45		$	21		$	66		$	43		$	81		$	52		$	85		$	176

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

12

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

Historical results conform with current business segment definitions.

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Underwriting gain	$	59		$	104		$	66		$	117		$	99		$	136		$	110		$	229		$	345
Net investment income	55			54			51			54			53			52			51			160			156
Other	3			4			3			3			2			4			4			10			10
Operating income	$	117		$	162		$	120		$	174		$	154		$	192		$	165		$	399		$	511
Combined ratio
Loss and loss adjustment expense ratio	41.1		%	32.3		%	40.8		%	25.0		%	31.0		%	20.5		%	28.7		%	38.1		%	26.7		%
Underwriting expense ratio	38.7		%	38.7		%	38.6		%	38.7		%	37.6		%	37.9		%	38.2		%	38.6		%	37.9		%
Combined ratio	79.8		%	71.0		%	79.4		%	63.7		%	68.6		%	58.4		%	66.9		%	76.7		%	64.6		%
Impact of catastrophes on combined ratio	0.0		%	1.0		%	0.3		%	0.3		%	0.2		%	0.9		%	0.2		%	0.4		%	0.5		%
Impact of prior year reserve development on combined ratio	-6.0		%	-14.0		%	-6.6		%	-20.1		%	-13.2		%	-23.7		%	-15.0		%	-8.9		%	-17.4		%

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

13

The Travelers Companies, Inc. Selected Statistics - Bond & Specialty Insurance ($ in millions)

Historical results conform with current business segment definitions.

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Statutory underwriting
Gross written premiums	$	498	$	543	$	561	$	529	$	528	$	542	$	562	$	1,602	$	1,632
Net written premiums	$	395	$	531	$	553	$	551	$	482	$	540	$	556	$	1,479	$	1,578
Net earned premiums	$	478	$	492	$	506	$	505	$	503	$	524	$	527	$	1,476	$	1,554
Losses and loss adjustment expenses	196		159		207		127		155		108		152		562		415
Underwriting expenses	186		193		198		192		197		201		205		577		603
Statutory underwriting gain	96		140		101		186		151		215		170		337		536
Policyholder dividends	1		3		2		1		3		2		2		6		7
Statutory underwriting gain after policyholder dividends	$	95	$	137	$	99	$	185	$	148	$	213	$	168	$	331	$	529

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

14

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

Historical results conform with current business segment definitions.

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Net written premiums by product line
General liability	$	168	$	237	$	249	$	280	$	223	$	239	$	247	$	654	$	709
Fidelity & surety	178		253		255		232		211		257		260		686		728
Other	49		41		49		39		48		44		49		139		141
Total	$	395	$	531	$	553	$	551	$	482	$	540	$	556	$	1,479	$	1,578

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

15

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Revenues
Premiums	$	1,840		$	1,834		$	1,835		$	1,815		$	1,762		$	1,773		$	1,796		$	5,509		$	5,331
Net investment income	91			94			90			94			100			94			98			275			292
Other revenues	18			15			34			36			26			17			19			67			62
Total revenues	1,949			1,943			1,959			1,945			1,888			1,884			1,913			5,851			5,685
Claims and expenses
Claims and claim adjustment expenses	1,102			1,190			1,001			1,034			979			1,261			1,008			3,293			3,248
Amortization of deferred acquisition costs	330			322			319			314			292			290			294			971			876
General and administrative expenses	232			241			256			251			223			237			263			729			723
Total claims and expenses	1,664			1,753			1,576			1,599			1,494			1,788			1,565			4,993			4,847
Operating income before income taxes	285			190			383			346			394			96			348			858			838
Income tax expense	88			48			121			109			126			21			109			257			256
Operating income	$	197		$	142		$	262		$	237		$	268		$	75		$	239		$	601		$	582
Other statistics
Effective tax rate on net investment income	19.5		%	20.1		%	19.5		%	20.3		%	21.3		%	20.7		%	21.8		%	19.7		%	21.3		%
Net investment income (after-tax)	$	73		$	75		$	72		$	75		$	79		$	74		$	77		$	220		$	230
Catastrophes, net of reinsurance:
Pre-tax	$	64		$	146		$	38		$	2		$	65		$	190		$	51		$	248		$	306
After-tax	$	42		$	95		$	24		$	1		$	42		$	123		$	34		$	161		$	199
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	60		$	65		$	48		$	36		$	132		$	12		$	13		$	173		$	157
After-tax	$	39		$	42		$	32		$	22		$	86		$	8		$	8		$	113		$	102

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

16

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Underwriting gain (loss)	$	112		$	57		$	168		$	138		$	172		$	(11	)	$	150		$	337		$	311
Net investment income	73			75			72			75			79			74			77			220			230
Other	12			10			22			24			17			12			12			44			41
Operating income	$	197		$	142		$	262		$	237		$	268		$	75		$	239		$	601		$	582
Combined ratio (1)
Loss and loss adjustment expense ratio	59.9		%	64.9		%	54.5		%	57.0		%	55.6		%	71.1		%	56.0		%	59.8		%	60.9		%
Underwriting expense ratio	29.5		%	29.6		%	30.2		%	29.9		%	28.0		%	28.7		%	30.1		%	29.7		%	28.9		%
Combined ratio	89.4		%	94.5		%	84.7		%	86.9		%	83.6		%	99.8		%	86.1		%	89.5		%	89.8		%
Combined ratio excluding incremental impact of direct to consumer initiative	87.5		%	92.9		%	82.9		%	85.1		%	82.0		%	98.3		%	84.2		%	87.8		%	88.1		%
Impact of catastrophes on combined ratio	3.5		%	8.0		%	2.0		%	0.1		%	3.7		%	10.7		%	2.8		%	4.5		%	5.6		%
Impact of prior year reserve development on combined ratio	-3.3		%	-3.5		%	-2.6		%	-2.0		%	-7.5		%	-0.7		%	-0.7		%	-3.2		%	-2.9		%

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Billing and policy fees and other	$	20	$	20	$	21	$	21	$	22	$	18	$	18	$	61	$	58

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

17

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

																YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q			3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014			2014		2013		2014
Statutory underwriting
Gross written premiums	$	1,763	$	1,997	$	2,028	$	1,746	$	1,649	$	1,916		$	1,959	$	5,788	$	5,524
Net written premiums	$	1,690	$	1,907	$	1,911	$	1,717	$	1,619	$	1,893		$	1,917	$	5,508	$	5,429
Net earned premiums	$	1,840	$	1,834	$	1,835	$	1,815	$	1,762	$	1,773		$	1,796	$	5,509	$	5,331
Losses and loss adjustment expenses	1,102		1,190		1,001		1,038		980		1,261			1,006		3,293		3,247
Underwriting expenses	513		552		573		529		481		539			572		1,638		1,592
Statutory underwriting gain	$	225	$	92	$	261	$	248	$	301	$	(27	)	$	218	$	578	$	492
Policies in force (in thousands)
Automobile (1)	2,273		2,204		2,139		2,091		2,068		2,068			2,083		2,139		2,083
Homeowners and other	4,563		4,477		4,386		4,294		4,232		4,199			4,164		4,386		4,164

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

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

18

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Statutory underwriting
Gross written premiums	$	835		$	838		$	834		$	770		$	795		$	834		$	852		$	2,507		$	2,481
Net written premiums	$	831		$	834		$	828		$	765		$	788		$	831		$	849		$	2,493		$	2,468
Net earned premiums	$	844		$	837		$	827		$	812		$	787		$	792		$	804		$	2,508		$	2,383
Losses and loss adjustment expenses	594			599			591			636			533			588			564			1,784			1,685
Underwriting expenses	218			224			222			208			208			221			224			664			653
Statutory underwriting gain (loss)	$	32		$	14		$	14		$	(32	)	$	46		$	(17	)	$	16		$	60		$	45
Other statistics
Combined ratio (2):
Loss and loss adjustment expense ratio	70.4		%	71.6		%	71.5		%	77.8		%	67.7		%	74.3		%	70.1		%	71.1		%	70.8		%
Underwriting expense ratio	25.6		%	26.2		%	26.4		%	26.2		%	25.6		%	26.5		%	26.6		%	26.1		%	26.2		%
Combined ratio	96.0		%	97.8		%	97.9		%	104.0		%	93.3		%	100.8		%	96.7		%	97.2		%	97.0		%
Impact of catastrophes on combined ratio	1.0		%	1.4		%	0.3		%	0.0		%	0.0		%	4.6		%	0.6		%	0.9		%	1.8		%
Impact of prior year reserve development on combined ratio	0.6		%	0.0		%	0.0		%	1.8		%	0.0		%	0.0		%	0.0		%	0.2		%	0.0		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	8		$	12		$	2		$	—		$	—		$	36		$	5		$	22		$	41
After-tax	$	6		$	7		$	1		$	—		$	—		$	23		$	4		$	14		$	27
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	(6	)	$	—		$	—		$	(14	)	$	—		$	—		$	—		$	(6	)	$	—
After-tax	$	(4	)	$	—		$	—		$	(10	)	$	—		$	—		$	—		$	(4	)	$	—
Policies in force (in thousands) (3)	2,191			2,123			2,058			2,010			1,985			1,981			1,990
Change from prior year quarter	-10.9		%	-11.9		%	-12.0		%	-11.2		%	-9.4		%	-6.7		%	-3.3		%
Change from prior quarter	-3.3		%	-3.1		%	-3.1		%	-2.3		%	-1.3		%	-0.2		%	0.5		%

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

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Billing and policy fees and other	$	10	$	9	$	9	$	9	$	9	$	8	$	9	$	28	$	26

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

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.                                                                                           

19

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Statutory underwriting
Gross written premiums	$	889		$	1,119		$	1,150		$	936		$	811		$	1,036		$	1,055		$	3,158		$	2,902
Net written premiums	$	820		$	1,033		$	1,039		$	913		$	788		$	1,016		$	1,017		$	2,892		$	2,821
Net earned premiums	$	957		$	958		$	969		$	963		$	935		$	938		$	948		$	2,884		$	2,821
Losses and loss adjustment expenses	480			561			382			371			419			639			414			1,423			1,472
Underwriting expenses	255			293			313			286			240			283			303			861			826
Statutory underwriting gain	$	222		$	104		$	274		$	306		$	276		$	16		$	231		$	600		$	523
Other statistics
Combined ratio (2):
Loss and loss adjustment expense ratio	50.2		%	58.6		%	39.4		%	38.5		%	44.8		%	68.1		%	43.6		%	49.3		%	52.2		%
Underwriting expense ratio	29.8		%	30.1		%	30.8		%	30.7		%	27.6		%	28.0		%	29.9		%	30.3		%	28.5		%
Combined ratio	80.0		%	88.7		%	70.2		%	69.2		%	72.4		%	96.1		%	73.5		%	79.6		%	80.7		%
Impact of catastrophes on combined ratio	5.6		%	13.9		%	3.6		%	0.0		%	6.8		%	15.9		%	4.8		%	7.7		%	9.2		%
Impact of prior year reserve development on combined ratio	-6.7		%	-6.7		%	-5.0		%	-5.1		%	-14.1		%	-1.3		%	-1.4		%	-6.2		%	-5.5		%
Catastrophe losses, net of reinsurance:
Pre-tax	$	54		$	133		$	35		$	1		$	64		$	150		$	46		$	222		$	260
After-tax	$	35		$	87		$	22		$	1		$	41		$	98		$	30		$	144		$	169
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	65		$	65		$	48		$	50		$	132		$	12		$	13		$	178		$	157
After-tax	$	42		$	42		$	32		$	32		$	86		$	8		$	8		$	116		$	102
Policies in force (in thousands)	4,484			4,396			4,303			4,209			4,146			4,110			4,072
Change from prior year quarter	-8.5		%	-9.0		%	-8.8		%	-8.4		%	-7.5		%	-6.5		%	-5.4		%
Change from prior quarter	-2.4		%	-2.0		%	-2.1		%	-2.2		%	-1.5		%	-0.9		%	-0.9		%

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

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

															YTD		YTD
	1Q		2Q		3Q		4Q		1Q		2Q		3Q		3Q		3Q
	2013		2013		2013		2013		2014		2014		2014		2013		2014
Billing and policy fees and other	$	9	$	10	$	12	$	12	$	13	$	9	$	9	$	31	$	31

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

20

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Net written premiums
Automobile	$	29		$	27		$	30		$	26		$	31		$	31		$	36		$	86		$	98
Homeowners and other	10			13			14			13			12			15			15			37			42
Total net written premiums	$	39		$	40		$	44		$	39		$	43		$	46		$	51		$	123		$	140
Revenues
Premiums	$	39		$	39		$	39		$	40		$	40		$	43		$	44		$	117		$	127
Other revenues	—			—			1			—			—			—			1			1			1
Total revenues	39			39			40			40			40			43			45			118			128
Claims and expenses
Claims and claim adjustment expenses	28			30			28			31			28			33			29			86			90
Amortization of deferred acquisition costs	1			1			1			1			1			1			1			3			3
General and administrative expenses	40			34			37			36			33			35			43			111			111
Total claims and expenses	69			65			66			68			62			69			73			200			204
Operating loss before income taxes	(30		)	(26		)	(26		)	(28		)	(22		)	(26		)	(28		)	(82		)	(76		)
Income taxes	(11		)	(9		)	(9		)	(10		)	(8		)	(9		)	(10		)	(29		)	(27		)
Operating loss	$	(19	)	$	(17	)	$	(17	)	$	(18	)	$	(14	)	$	(17	)	$	(18	)	$	(53	)	$	(49	)
Other statistics
Policies in force (in thousands)
Automobile	82			81			81			81			83			87			93
Homeowners and other	79			81			83			85			86			89			92
Catastrophes, net of reinsurance:
Pre-tax	$	2		$	1		$	1		$	1		$	1		$	4		$	—		$	4		$	5
After-tax	$	1		$	1		$	1		$	—		$	1		$	2		$	—		$	3		$	3
Prior year reserve development - favorable (unfavorable)
Pre-tax	$	1		$	—		$	—		$	—		$	—		$	—		$	—		$	1		$	—
After-tax	$	1		$	—		$	—		$	—		$	—		$	—		$	—		$	1		$	—

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

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

21

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Revenues
Other revenues	$	(2	)	$	1		$	(3	)	$	(2	)	$	(1	)	$	1		$	—		$	(4	)	$	—
Claims and expenses
Interest expense	92			86			91			92			92			92			93			269			277
General and administrative expenses	4			7			6			3			7			9			6			17			22
Total claims and expenses	96			93			97			95			99			101			99			286			299
Operating loss before income tax benefit	(98		)	(92		)	(100		)	(97		)	(100		)	(100		)	(99		)	(290		)	(299		)
Income taxes	(35		)	(33		)	(35		)	(36		)	(36		)	(35		)	(36		)	(103		)	(107		)
Operating loss	$	(63	)	$	(59	)	$	(65	)	$	(61	)	$	(64	)	$	(65	)	$	(63	)	$	(187	)	$	(192	)

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

22

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

	September 30,			December 31,
	2014			2013
Assets
Fixed maturities, available for sale, at fair value (amortized cost $61,043 and $62,196)	$	63,622		$	63,956
Equity securities, available for sale, at fair value (cost $609 and $686)	949			943
Real estate investments	949			938
Short-term securities	5,033			3,882
Other investments	3,637			3,441
Total investments	74,190			73,160
Cash	367			294
Investment income accrued	663			734
Premiums receivable	6,439			6,125
Reinsurance recoverables	9,279			9,713
Ceded unearned premiums	848			801
Deferred acquisition costs	1,890			1,804
Deferred taxes	—			303
Contractholder receivables	4,367			4,328
Goodwill	3,621			3,634
Other intangible assets	316			351
Other assets	2,542			2,565
Total assets	$	104,522		$	103,812
Liabilities
Claims and claim adjustment expense reserves	$	50,402		$	50,895
Unearned premium reserves	12,181			11,850
Contractholder payables	4,367			4,328
Payables for reinsurance premiums	491			298
Deferred taxes	122			—
Debt	6,348			6,346
Other liabilities	5,290			5,299
Total liabilities	79,201			79,016
Shareholders’ equity
Common stock (1,750.0 shares authorized; 331.4 and 353.5 shares issued and outstanding)	21,764			21,500
Retained earnings	26,394			24,291
Accumulated other comprehensive income	1,300			810
Treasury stock, at cost (427.6 and 401.5 shares)	(24,137		)	(21,805		)
Total shareholders’ equity	25,321			24,796
Total liabilities and shareholders’ equity	$	104,522		$	103,812

23

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

	September 30,		Pre-tax Book		December 31,		Pre-tax Book
	2014		Yield (1)		2013		Yield (1)
Investment portfolio
Taxable fixed maturities (including redeemable preferred stock)	$	30,115	3.49	%	$	28,788	3.55	%
Tax-exempt fixed maturities	33,507		3.77	%	35,168		3.84	%
Total fixed maturities	63,622		3.64	%	63,956		3.71	%
Non-redeemable preferred stocks	241		5.74	%	333		5.70	%
Public common stocks	708				610
Total equity securities	949				943
Real estate investments	949				938
Short-term securities	5,033		0.15	%	3,882		0.15	%
Private equities	2,087				1,926
Hedge funds	430				390
Real estate partnerships	615				618
Other investments	505				507
Total other investments	3,637				3,441
Total investments	$	74,190			$	73,160
Net unrealized investment gains, net of tax, included in shareholders’ equity	$	1,914			$	1,322

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

24

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

	September 30,		December 31,
	2014		2013
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	2,074	$	2,315
Obligations of states and political subdivisions:
Pre-refunded	7,807		9,518
All other	26,090		26,044
Total	33,897		35,562
Debt securities issued by foreign governments	2,468		2,577
Mortgage-backed securities - principally obligations of U.S. Government agencies	2,274		2,424
Corporates (including redeemable preferreds)	22,909		21,078
Total fixed maturities	$	63,622	$	63,956

Fixed Maturities

Quality Characteristics (1)

	September 30, 2014
	Amount		% of Total
Quality Ratings
Aaa	$	26,592	41.8	%
Aa	19,130		30.1
A	9,599		15.1
Baa	6,333		9.9
Total investment grade	61,654		96.9
Ba	1,085		1.7
B	468		0.7
Caa and lower	415		0.7
Total below investment grade	1,968		3.1
Total fixed maturities	$	63,622	100.0	%
Average weighted quality	Aa2, AA
Average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	3.5

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

25

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Gross investment income
Fixed maturities	$	586		$	574		$	571		$	579		$	580		$	562		$	552		$	1,731		$	1,694
Short-term securities	2			2			3			4			2			2			2			7			6
Other	92			120			91			129			163			140			174			303			477
	680			696			665			712			745			704			728			2,041			2,177
Investment expenses	10			9			8			10			9			9			9			27			27
Net investment income, pre-tax	670			687			657			702			736			695			719			2,014			2,150
Income taxes	128			136			126			140			154			142			151			390			447
Net investment income, after-tax	$	542		$	551		$	531		$	562		$	582		$	553		$	568		$	1,624		$	1,703
Effective tax rate	19.2		%	19.7		%	19.1		%	20.0		%	21.0		%	20.5		%	20.9		%	19.3		%	20.8		%
Average invested assets (1)	$	69,996		$	69,701		$	70,419		$	72,165		$	72,112		$	71,880		$	72,062		$	70,128		$	72,062
Average yield pre-tax (1)	3.8		%	3.9		%	3.7		%	3.9		%	4.1		%	3.9		%	4.0		%	3.8		%	4.0		%
Average yield after-tax	3.1		%	3.2		%	3.0		%	3.1		%	3.2		%	3.1		%	3.2		%	3.1		%	3.2		%

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

26

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Net realized investment gains (losses)
Fixed maturities	$	11		$	14		$	5		$	6		$	6		$	9		$	—		$	30		$	15
Equity securities	6			4			(1		)	1			(4		)	15			—			9			11
Other (1)	(7		)	149			(26		)	4			(1		)	(8		)	40			116			31
Realized investment gains (losses) before tax	10			167			(22		)	11			1			16			40			155			57
Related taxes	1			58			(3		)	4			1			6			14			56			21
Net realized investment gains (losses)	$	9		$	109		$	(19	)	$	7		$	—		$	10		$	26		$	99		$	36
Gross investment gains (1)	$	108		$	352		$	12		$	57		$	59		$	46		$	101		$	472		$	206
Gross investment losses before impairments (1)	(93		)	(183		)	(31		)	(41		)	(49		)	(29		)	(51		)	(307		)	(129		)
Net investment gains before impairments	15			169			(19		)	16			10			17			50			165			77
Other-than-temporary impairment losses	(5		)	(2		)	(3		)	(5		)	(9		)	(1		)	(10		)	(10		)	(20		)
Net realized investment gains (losses) before tax	10			167			(22		)	11			1			16			40			155			57
Related taxes	1			58			(3		)	4			1			6			14			56			21
Net realized investment gains (losses)	$	9		$	109		$	(19	)	$	7		$	—		$	10		$	26		$	99		$	36
	March 31,			June 30,			September 30,			December 31,			March 31,			June 30,			September 30,
	2013			2013			2013			2013			2014			2014			2014
Net unrealized investment gains, net of tax, by asset type
Fixed maturities	$	4,121		$	2,349		$	2,142		$	1,760		$	2,276		$	2,742		$	2,579
Equity securities & other	274			250			252			270			293			346			356
Unrealized investment gains before tax	4,395			2,599			2,394			2,030			2,569			3,088			2,935
Related taxes	1,531			907			835			708			895			1,075			1,021
Balance, end of period	$	2,864		$	1,692		$	1,559		$	1,322		$	1,674		$	2,013		$	1,914

(1)  Includes the following gross investment gains and gross investment losses related to U.S. Treasury futures, which are settled daily:

Gross investment Treasury future gains	$	56	$	287	$	—	$	—	$	4	$	4	$	6	$	343	$	14
Gross investment Treasury future losses	$	75	$	153	$	—	$	—	$	3	$	5	$	6	$	228	$	14

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

27

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

	September 30,			December 31,
	2014			2013
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses	$	4,365		$	4,707
Allowance for uncollectible reinsurance	(233		)	(239		)
Net reinsurance recoverables (i)	4,132			4,468
Mandatory pools and associations (ii)	1,851			1,897
Structured settlements (iii)	3,296			3,348
Total reinsurance recoverables	$	9,279		$	9,713

(i)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in net reinsurance recoverables is as follows:

	A.M. Best Rating of Group’s	September 30,
Reinsurer	Predominant Reinsurer	2014
Munich Re Group	A+ second highest of 16 ratings	$	485
Swiss Re Group	A+ second highest of 16 ratings	456
Sompo Japan Nipponkoa Group (1)	A+ second highest of 16 ratings	256
Berkshire Hathaway	A++ highest of 16 ratings	222
XL Capital Group	A third highest of 16 ratings	196

The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, about half is attributable to 10 reinsurer groups.

The net reinsurance recoverables reflect an allowance for uncollectible reinsurance that is based upon the Company’s ongoing review of amounts outstanding, reinsurer solvency, the Company’s experience, current economic conditions, and other relevant factors.  Of the total net recoverables due from reinsurers at September 30, 2014, after deducting mandatory pools and associations and structured settlement balances, $3.3 billion, or 80%, were rated by A.M. Best Company.  Of the total rated by A.M. Best Company, 99% were rated A- or better.  The remaining 20% of net recoverables from reinsurers were comprised of the following:  6% related to the Company’s participation in voluntary pools, 11% related to recoverables from captive insurance companies and 3% were balances from other companies not rated by A.M. Best Company.  In addition, $1.2 billion of the net recoverables were collateralized by letters of credit, funds held or trust agreements at September 30, 2014.

(ii)  The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in.  These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market.  The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state.  In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.  Recoverables due from the National Flood Insurance Program are included with mandatory pools.

(iii)  Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion.  In cases where the Company did not receive a release from the claimant, the amount due from the life insurance company related to the structured settlement is included in the Company’s consolidated balance sheet as a liability and as a reinsurance recoverable, as the Company retains the contingent liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments.  The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.

The Company’s top five groups by structured settlement is as follows:

	A.M. Best Rating of Group’s	September 30,
Group	Predominant Insurer	2014
Fidelity and Guaranty Life	B++ fifth highest of 16 ratings	$	944
Metlife	A+ second highest of 16 ratings	442
Genworth Financial Group	A third highest of 16 ratings	417
John Hancock Group	A+ second highest of 16 ratings	261
Symetra Financial Corporation	A third highest of 16 ratings	242

(1)  On September 1, 2014, NKSJ Holdings, Inc. changed its name to Sompo Japan Nipponkoa Holdings, Inc.

28

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

Historical results conform with current business segment definitions.

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Statutory Basis Reserves for Losses and Loss Adjustment Expenses
Business and International Insurance
Beginning of period	$	33,270		$	32,934		$	33,011		$	33,079		$	34,717		$	34,661		$	34,929		$	33,270		$	34,717
Incurred	1,772			2,141			2,042			2,117			2,132			2,397			2,310			5,955			6,839
Paid	(2,033		)	(2,048		)	(2,051		)	(2,249		)	(2,109		)	(2,231		)	(2,170		)	(6,132		)	(6,510		)
Acquired reserves, foreign exchange and other (1)	(75		)	(16		)	77			1,770			(79		)	102			(182		)	(14		)	(159		)
End of period	$	32,934		$	33,011		$	33,079		$	34,717		$	34,661		$	34,929		$	34,887		$	33,079		$	34,887
Bond & Specialty Insurance
Beginning of period	$	3,699		$	3,752		$	3,668		$	3,664		$	3,595		$	3,585		$	3,501		$	3,699		$	3,595
Incurred	196			159			207			127			155			108			152			562			415
Paid	(143		)	(243		)	(211		)	(196		)	(165		)	(192		)	(237		)	(597		)	(594		)
End of period	$	3,752		$	3,668		$	3,664		$	3,595		$	3,585		$	3,501		$	3,416		$	3,664		$	3,416
Personal Insurance
Beginning of period	$	3,687		$	3,529		$	3,466		$	3,294		$	3,256		$	3,137		$	3,285		$	3,687		$	3,256
Incurred	1,102			1,190			1,001			1,038			980			1,261			1,006			3,293			3,247
Paid	(1,260		)	(1,253		)	(1,173		)	(1,076		)	(1,099		)	(1,113		)	(1,069		)	(3,686		)	(3,281		)
End of period	$	3,529		$	3,466		$	3,294		$	3,256		$	3,137		$	3,285		$	3,222		$	3,294		$	3,222
Total
Beginning of period	$	40,656		$	40,215		$	40,145		$	40,037		$	41,568		$	41,383		$	41,715		$	40,656		$	41,568
Incurred	3,070			3,490			3,250			3,282			3,267			3,766			3,468			9,810			10,501
Paid	(3,436		)	(3,544		)	(3,435		)	(3,521		)	(3,373		)	(3,536		)	(3,476		)	(10,415		)	(10,385		)
Acquired reserves, foreign exchange and other (1)	(75		)	(16		)	77			1,770			(79		)	102			(182		)	(14		)	(159		)
End of period	$	40,215		$	40,145		$	40,037		$	41,568		$	41,383		$	41,715		$	41,525		$	40,037		$	41,525
Prior Year Reserve Development: Unfavorable (Favorable)
Business and International Insurance
Asbestos	$	—		$	—		$	190		$	—		$	—		$	—		$	250		$	190		$	250
Environmental	—			65			—			—			—			87			—			65			87
All other	(142		)	(123		)	(267		)	(122		)	(95		)	(134		)	(271		)	(532		)	(500		)
Total Business and International Insurance (2)	(142		)	(58		)	(77		)	(122		)	(95		)	(47		)	(21		)	(277		)	(163		)
Bond & Specialty Insurance	(29		)	(69		)	(33		)	(101		)	(67		)	(124		)	(79		)	(131		)	(270		)
Personal Insurance	(60		)	(65		)	(48		)	(36		)	(132		)	(12		)	(13		)	(173		)	(157		)
Total	$	(231	)	$	(192	)	$	(158	)	$	(259	)	$	(294	)	$	(183	)	$	(113	)	$	(581	)	$	(590	)

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

(2)  Excludes accretion of discount.

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

29

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Asbestos reserves
Beginning reserves:
Gross	$	2,689		$	2,626		$	2,566		$	2,686		$	2,606		$	2,547		$	2,482		$	2,689		$	2,606
Ceded	(311		)	(292		)	(288		)	(263		)	(256		)	(242		)	(232		)	(311		)	(256		)
Net	2,378			2,334			2,278			2,423			2,350			2,305			2,250			2,378			2,350
Incurred losses and loss expenses:
Gross	—			—			190			—			—			—			258			190			258
Ceded	—			—			—			—			—			—			(8		)	—			(8		)
Paid loss and loss expenses:
Gross	62			60			71			80			59			65			74			193			198
Ceded	(19		)	(4		)	(25		)	(7		)	(14		)	(10		)	(20		)	(48		)	(44		)
Foreign exchange and other:
Gross	(1		)	—			1			—			—			—			(1		)	—			(1		)
Ceded	—			—			—			—			—			—			—			—			—
Ending reserves:
Gross	2,626			2,566			2,686			2,606			2,547			2,482			2,665			2,686			2,665
Ceded	(292		)	(288		)	(263		)	(256		)	(242		)	(232		)	(220		)	(263		)	(220		)
Net	$	2,334		$	2,278		$	2,423		$	2,350		$	2,305		$	2,250		$	2,445		$	2,423		$	2,445
Environmental reserves
Beginning reserves:
Gross	$	352		$	340		$	399		$	371		$	355		$	331		$	396		$	352		$	355
Ceded	(5		)	(4		)	(11		)	(12		)	(11		)	(11		)	(14		)	(5		)	(11		)
Net	347			336			388			359			344			320			382			347			344
Incurred losses and loss expenses:
Gross	—			72			—			—			—			94			—			72			94
Ceded	—			(7		)	—			—			—			(7		)	—			(7		)	(7		)
Paid loss and loss expenses:
Gross	12			13			28			34			24			29			20			53			73
Ceded	(1		)	—			1			(3		)	—			(4		)	(3		)	—			(7		)
Acquired reserves, foreign exchange and other: (1)
Gross	—			—			—			18			—			—			(1		)	—			(1		)
Ceded	—			—			—			(2		)	—			—			—			—			—
Ending reserves:
Gross	340			399			371			355			331			396			375			371			375
Ceded	(4		)	(11		)	(12		)	(11		)	(11		)	(14		)	(11		)	(12		)	(11		)
Net	$	336		$	388		$	359		$	344		$	320		$	382		$	364		$	359		$	364

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

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

30

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

	September 30,			December 31,
	2014			2013
Debt
Short-term debt
Commercial paper	$	100		$	100
Total short-term debt	100			100
Long-term debt
5.50% Senior notes due December 1, 2015 (1)	400			400
6.25% Senior notes due June 20, 2016 (1)	400			400
5.75% Senior notes due December 15, 2017 (1)	450			450
5.80% Senior notes due May 15, 2018 (1)	500			500
5.90% Senior notes due June 2, 2019 (1)	500			500
3.90% Senior notes due November 1, 2020 (1)	500			500
7.75% Senior notes due April 15, 2026	200			200
7.625% Junior subordinated debentures due December 15, 2027	125			125
6.375% Senior notes due March 15, 2033 (1)	500			500
6.75% Senior notes due June 20, 2036 (1)	400			400
6.25% Senior notes due June 15, 2037 (1)	800			800
5.35% Senior notes due November 1, 2040 (1)	750			750
4.60% Senior notes due August 1, 2043 (1)	500			500
8.50% Junior subordinated debentures due December 15, 2045	56			56
8.312% Junior subordinated debentures due July 1, 2046	73			73
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 (1)	107			107
Total long-term debt	6,261			6,261
Unamortized fair value adjustment	50			51
Unamortized debt issuance costs	(63		)	(66		)
	6,248			6,246
Total debt	6,348			6,346
Common equity (excluding net unrealized investment gains, net of tax)	23,407			23,474
Total capital (excluding net unrealized investment gains, net of tax)	$	29,755		$	29,820
Total debt to capital (excluding net unrealized investment gains, net of tax)	21.3		%	21.3		%

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

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

31

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

	September 30,			December 31,
	2014 (1)			2013
Statutory basis surplus	$	21,005		$	21,123
GAAP adjustments
Goodwill and intangible assets	3,770			3,816
Investments	3,288			2,541
Noninsurance companies	(4,262		)	(4,453		)
Deferred acquisition costs	1,890			1,804
Deferred federal income tax	(1,643		)	(1,259		)
Current federal income tax	(39		)	(32		)
Reinsurance recoverables	160			160
Furniture, equipment & software	646			708
Employee benefits	11			2
Agents balances	156			135
Other	339			251
Total GAAP adjustments	4,316			3,673
GAAP shareholders’ equity	$	25,321		$	24,796

(1) Estimated and Preliminary

See Business Realignment on pages i and ii and Glossary of Financial Measures and Description of Reportable Business Segments on page 35.

32

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Cash flows from operating activities
Net income	$	896		$	925		$	864		$	988		$	1,052		$	683		$	919		$	2,685		$	2,654
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(10		)	(167		)	22			(11		)	(1		)	(16		)	(40		)	(155		)	(57		)
Depreciation and amortization	219			216			207			225			227			215			211			642			653
Deferred federal income tax expense	131			20			(19		)	35			153			(22		)	(38		)	132			93
Amortization of deferred acquisition costs	948			950			953			970			950			965			984			2,851			2,899
Equity in income from other investments	(74		)	(101		)	(72		)	(110		)	(139		)	(118		)	(155		)	(247		)	(412		)
Premiums receivable	(155		)	(248		)	161			296			(189		)	(274		)	129			(242		)	(334		)
Reinsurance recoverables	390			357			355			182			106			100			197			1,102			403
Deferred acquisition costs	(954		)	(958		)	(950		)	(897		)	(986		)	(1,003		)	(1,004		)	(2,862		)	(2,993		)
Claims and claim adjustment expense reserves	(751		)	(377		)	(556		)	(373		)	(209		)	149			(238		)	(1,684		)	(298		)
Unearned premium reserves	187			158			138			(456		)	94			141			144			483			379
Other	(297		)	(53		)	534			78			(355		)	(195		)	731			184			181
Net cash provided by operating activities	530			722			1,637			927			703			625			1,840			2,889			3,168
Cash flows from investing activities
Proceeds from maturities of fixed maturities	2,123			1,778			2,016			1,987			2,312			2,603			3,060			5,917			7,975
Proceeds from sales of investments:
Fixed maturities	234			338			588			475			406			379			142			1,160			927
Equity securities	36			14			7			29			36			59			33			57			128
Real estate investments	—			—			—			18			1			4			—			—			5
Other investments	174			207			164			217			167			171			274			545			612
Purchases of investments:
Fixed maturities	(2,339		)	(2,149		)	(2,004		)	(2,975		)	(2,715		)	(2,734		)	(2,788		)	(6,492		)	(8,237		)
Equity securities	(13		)	(27		)	(10		)	(7		)	(18		)	(22		)	(7		)	(50		)	(47		)
Real estate investments	(6		)	(53		)	(6		)	(42		)	(9		)	(27		)	(5		)	(65		)	(41		)
Other investments	(95		)	(114		)	(103		)	(134		)	(113		)	(113		)	(180		)	(312		)	(406		)
Net sales (purchases) of short-term securities	109			(28		)	(1,974		)	2,004			(160		)	220			(1,223		)	(1,893		)	(1,163		)
Securities transactions in course of settlement	180			(120		)	220			(259		)	240			(36		)	(85		)	280			119
Acquisition, net of cash acquired	—			—			—			(997		)	(12		)	—			—			—			(12		)
Other	(100		)	(57		)	(97		)	(119		)	(60		)	(92		)	(110		)	(254		)	(262		)
Net cash provided by (used in) investing activities	303			(211		)	(1,199		)	197			75			412			(889		)	(1,107		)	(402		)

33

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

																						YTD			YTD
	1Q			2Q			3Q			4Q			1Q			2Q			3Q			3Q			3Q
	2013			2013			2013			2013			2014			2014			2014			2013			2014
Cash flows from financing activities
Payment of debt	(500		)	—			—			—			—			—			—			(500		)	—
Issuance of debt	—			—			494			—			—			—			—			494			—
Dividends paid to shareholders	(175		)	(191		)	(183		)	(180		)	(176		)	(189		)	(184		)	(549		)	(549		)
Issuance of common stock - employee share options	98			41			19			48			57			65			32			158			154
Treasury stock acquired - share repurchase authorization	(300		)	(300		)	(800		)	(1,000		)	(650		)	(875		)	(750		)	(1,400		)	(2,275		)
Treasury stock acquired - net employee share-based compensation	(58		)	(1		)	(1		)	(1		)	(54		)	(1		)	(1		)	(60		)	(56		)
Excess tax benefits from share-based payment arrangements	21			8			14			8			13			11			14			43			38
Net cash used in financing activities	(914		)	(443		)	(457		)	(1,125		)	(810		)	(989		)	(889		)	(1,814		)	(2,688		)
Effect of exchange rate changes on cash	(6		)	(3		)	6			—			(2		)	3			(6		)	(3		)	(5		)
Net increase (decrease) in cash	(87		)	65			(13		)	(1		)	(34		)	51			56			(35		)	73
Cash at beginning of period	330			243			308			295			294			260			311			330			294
Cash at end of period	$	243		$	308		$	295		$	294		$	260		$	311		$	367		$	295		$	367
Income taxes paid	$	27		$	468		$	229		$	333		$	93		$	634		$	58		$	724		$	785
Interest paid	$	35		$	149		$	22		$	149		$	34		$	149		$	34		$	206		$	217

34

The Travelers Companies, Inc.
Financial Supplement - Third Quarter 2014
Glossary of Financial Measures and Description of Reportable Business Segments

The following measures are used by the Company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis.  In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure.

In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance.  Internally, the Company’s management uses these measures to evaluate performance against historical results and establish financial targets on a consolidated basis.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends. 

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.

Operating income (loss) is net income (loss) excluding the after-tax impact of net realized investment gains (losses).  Management uses operating income (loss) to analyze each segment’s performance and as a tool in making business decisions.  Financial statement users also consider operating income when analyzing the results and trends of insurance companies.  Operating earnings (loss) per share is operating income (loss) on a per common share basis.

Average shareholders’ equity is (a) the sum of total shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.  Adjusted shareholders’ equity is shareholders’ equity excluding net unrealized investment gains (losses), net of tax and net realized investment gains (losses), net of tax, for the period presented.  Adjusted average shareholders’ equity is average shareholders’ equity excluding net unrealized investment gains (losses), net of tax, for all quarters included in the calculation and, for each quarterly period included in the calculation that quarter’s net realized investment gains (losses), net of tax.

Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented.  Operating return on equity is the ratio of annualized operating income (loss) to adjusted average shareholders’ equity for the periods presented.  In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management. 

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.  In the opinion of the Company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business.  This measure is used to assess each segment’s business performance and as a tool in making business decisions. 

A catastrophe is a severe loss, resulting from natural and man-made events, including risks such as fire, earthquake, windstorm, explosion, terrorism and other similar events.  Each catastrophe has unique characteristics, and catastrophes are not predictable as to timing or amount.  Their effects are included in net and operating income and claims and claim adjustment expense reserves upon occurrence.  A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools.  In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful to users of the financial statements to understand the Company’s periodic earnings and the variability in periodic earnings caused by the unpredictable nature of catastrophes.

Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years.  In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and operating income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.

Combined ratio For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators.  The combined ratio, as used in this financial supplement, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premium and the underwriting expense ratio as used in this financial supplement is based on net earned premiums.  For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio.  For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums.

The combined ratio, loss and LAE ratio, and underwriting expense ratio are used as indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

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

Combined ratio excluding the incremental impact of the direct to consumer initiative is the combined ratio adjusted to exclude the direct, variable impact of the Company’s direct-to-consumer initiative in Personal Insurance.  In the opinion of the Company’s management, this is useful in an analysis of the profitability of the Company’s ongoing agency business.

Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract.  Net written premiums reflect gross written premiums less premiums ceded to reinsurers.

Book value per share is total common shareholders’ equity divided by the number of common shares outstanding.  Adjusted book value per share is total common shareholders’ equity excluding the after-tax impact of net unrealized investment gains and losses, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share as it removes the effect of changing prices on invested assets, (i.e., net unrealized investment gains (losses), net of tax) which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.

Total capital is the sum of total shareholders’ equity and debt.  Debt-to-capital ratio excluding net unrealized gain (loss) on investments is the ratio of debt to total capital excluding the after-tax impact of net unrealized investment gains and losses.  In the opinion of the Company’s management, the debt to capital ratio is useful in an analysis of the Company’s financial leverage.

Statutory basis surplus represents the excess of an insurance company’s assets over its liabilities in accordance with statutory accounting practices.

Travelers has organized its businesses into the following reportable business segments, effective July 1, 2014:

Business and International Insurance - The Business and International Insurance segment offers a broad array of property and casualty insurance and insurance related services to its clients, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world as a corporate member of Lloyd’s.  Business and International Insurance is organized as follows: Select Accounts; Middle Market including Commercial Accounts, Construction, Technology, Public Sector Services, Oil & Gas, Excess Casualty and Global Partner Services; National Accounts; First Party including National Property, Inland Marine, Ocean Marine and Boiler & Machinery; Specialized Distribution including Northland, National Programs, and Agribusiness; and International.  In addition, the Company owns 49.5% of the common stock of J. Malucelli Participações em Seguros e Resseguros S.A., its joint venture in Brazil.  Business and International Insurance also includes the Special Liability Group (which manages the Company’s asbestos and environmental liabilities) and the assumed reinsurance and certain other runoff operations, which are collectively referred to as Business and International Insurance Other.

Bond & Specialty Insurance - The Bond & Specialty Insurance segment provides a wide range of customers with bond and insurance products and risk management services. The range of coverages includes performance, payment and commercial surety and fidelity bonds for construction and general commercial enterprises; management liability coverages for losses caused by the actual or alleged negligence or misconduct of directors and officers or employee dishonesty; employment practices liability coverages and fiduciary coverages for public corporations, private companies and not-for-profit organizations; professional liability coverage for actual or alleged errors and omissions committed in the course of professional conduct or practice for a variety of professionals including, among others, lawyers and design professionals; and professional and management liability, property, workers’ compensation, auto and general liability and fidelity insurance for financial institutions.  The surety and financial liability coverages provided by Bond & Specialty Insurance primarily use credit-based underwriting processes.

Personal Insurance - The Personal Insurance segment writes a broad range of property and casualty insurance covering individuals’ personal risks.  The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

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