Exhibit 99.11 TRAVELERS GROUP 401(k) SAVINGS PLAN (Formerly The Travelers Inc. 401(k) Savings Plan) December 31, 1994 and 1993 Index Page ---- Independent Auditors' Report 1 Financial Statements: Statement of Financial Position, With Fund Information at December 31, 1994 2 Statement of Financial Position, With Fund Information at December 31, 1993 8 Statement of Operations and Changes in Plan Equity, With Fund Information for the year ended December 31, 1994 14 Statement of Operations and Changes in Plan Equity, With Fund Information for the year ended December 31, 1993 20 Notes to Financial Statements 26 Supplemental Schedules: Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes at December 31, 1994 37 Schedule to Form 5500: Item 27(d) Schedule of Reportable Transactions for the year ended December 31, 1994 40 The other schedules required by Item 27 of Form 5500 are not applicable and are therefore omitted. Independent Auditors' Report ---------------------------- To the Annuity Board of Travelers Group 401(k) Savings Plan: We have audited the accompanying statements of financial position of Travelers Group 401(k) Savings Plan (formerly The Travelers Inc. 401(k) Savings Plan) as of December 31, 1994 and 1993, and the related statements of operations and changes in plan equity for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Plan as of December 31, 1994 and 1993, and the operations and changes in plan equity for the years then ended in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes, assets held for investment purposes which were both acquired and disposed within the plan year, and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department for Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statements of financial position and the statements of operations and changes in plan equity is presented for purposes of additional analysis rather than to present the financial position and results of operations and changes in plan equity of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ KPMG PEAT MARWICK LLP New York, New York June 29, 1995 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1994 --------------------------------------------------------------------------------------- The American American American American Travelers Inc. Capital Capital Capital Capital Common Stock Reserve Gov't. Securities Comstock Emerging Growth Assets Fund Fund Fund Fund Fund ------ ---- ---- ---- ---- ---- Investments (Notes 2 and 3) $ 123,836,997 11,840,613 4,443,863 7,457,863 44,587,338 Cash 208,569 112 4 16 2,262 Receivables: Employer Contribution 23,995,464 -- -- -- -- Participant Contribution and Other 402,704 1,162 2,974 4,343 209,231 ----------- ----------- ---------- ---------- ----------- Total Assets $ 148,443,734 11,841,886 4,446,841 7,462,223 44,798,830 ============ =========== ========== ========== =========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ 3,205,931 -- -- -- -- ----------- ----------- ---------- ---------- ----------- Total Liabilities 3,205,931 -- -- -- -- Plan Equity 145,237,803 11,841,886 4,446,841 7,462,223 44,798,830 ----------- ---------- --------- --------- ---------- Total Liabilities and Plan Equity $ 148,443,734 11,841,886 4,446,841 7,462,223 44,798,830 =========== ========== ========= ========= ========== See notes to financial statements. 3 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1994 --------------------------------------------------------------------------------------- Common Common Common Common Sense Sense Sense Sense Money Market Government Growth & Income Growth Loan Assets Fund Fund Fund Fund Fund ------ ---- ---- ---- ---- ---- Investments (Notes 2 and 3) $ 2,835,617 755,249 2,197,881 2,835,350 31,275,886 Cash 639 24 2 6 -- Receivables : Employer Contribution -- -- -- -- -- Participant Contribution and Other 13 1,098 642 378 -- ---------- --------- ----------- ----------- ------------ Total Assets $ 2,836,269 756,372 2,198,525 2,835,735 31,275,886 ========== ========= =========== =========== ============ Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- 1,064 -- ---------- --------- ----------- ----------- ------------ Total Liabilities -- -- -- 1,064 -- Plan Equity 2,836,269 756,372 2,198,525 2,834,670 31,275,886 ---------- --------- ----------- ----------- ------------ Total Liabilities and Plan Equity $ 2,836,269 756,372 2,198,525 2,835,735 31,275,886 ========== ========= =========== =========== ============ See notes to financial statements. 4 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- Smith Barney Smith Barney Smith Barney Smith Barney Income and U.S. Government Income Smith Barney Money Fund/ Growth Securities Return Equity Government Assets Fund Fund Fund Fund Fund ------ ---- ---- ---- ---- ---- Investments (Notes 2 and 3) $79,994,986 18,579,414 7,078,832 -- 29,718,296 Cash 2,310 915 699 -- 10,669 Receivables: Employer Contribution -- -- -- -- -- Participant Contribution and Other 124,546 39,703 2 -- 120,953 ---------- ---------- ----------- ----------- ----------- Total Assets $ 80,121,843 18,620,032 7,079,533 -- 29,849,918 ========== ========== =========== =========== =========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- -- -- ---------- ---------- ----------- ----------- ----------- Total Liabilities -- -- -- -- -- Plan Equity 80,121,843 18,620,032 7,079,533 -- 29,849,918 ---------- ---------- ----------- ----------- ----------- Total Liabilities and Plan Equity $ 80,121,843 18,620,032 7,079,533 -- 29,849,918 ========== ========== =========== =========== =========== See notes to financial statements. 5 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1994 ---------------------------------------------------------------------------- Smith Barney American American Salomon International Connecticut Capital Express Daily Brothers Equity General Enterprise Dividend Capital Assets Fund GIC Fund Fund Fund ------ ------ --- ---- ---- ------ Investments (Notes 2 and 3) $71,101,442 -- 13,870,616 -- -- Cash 2,046 -- 729 -- -- Receivables: Employer Contribution -- -- -- -- -- Participant Contribution and Other 273,808 -- 43,327 -- -- ---------- ---------- ----------- ----------- ----------- Total Assets $71,377,297 -- 13,914,672 -- -- ========== ========== =========== =========== =========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- -- -- ---------- ---------- ----------- ----------- ----------- Total Liabilities -- -- -- -- -- Plan Equity 71,377,297 13,914,672 ---------- ---------- ----------- ----------- ----------- Total Liabilities and Plan Equity $ 71,377,297 -- 13,914,672 -- -- ========== ========== =========== =========== =========== See notes to financial statements. 6 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1994 -------------------------------------------------------------------------------- Smith Barney Smith Barney Smith Barney Smith Barney Smith Barney Shearson High Shearson Shearson Shearson Shearson Global Income Aggressive Appreciation Diversified Opportunities Assets Fund Growth Fund Fund Strategic Fund Fund ------ ------ ---- ----------- ---- --------------- Investments (Notes 2 and 3) $9,775,793 22,797,316 101,479,606 11,907,701 10,596,627 Cash 8,770 765 803 3,839 829 Receivables: Employer Contribution --------- ---------- ----------- ---------- ---------- Participant Contribution and Other 18 28 174,738 59,389 14 ---------- ---------- ----------- ---------- ---------- Total Assets $9,784,581 22,798,109 101,655,148 11,970,929 10,597,470 ========= ========== =========== ========== ========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- -- -- --------- ---------- ----------- ---------- ---------- Total Liabilities -- -- -- -- -- Plan Equity 9,784,581 22,798,109 101,655,148 11,970,929 10,597,470 --------- ---------- ----------- ---------- ---------- Total Liabilities and Plan Equity $ 9,784,581 22,798,109 101,655,148 11,970,929 10,597,470 ========= ========== =========== ========== ========== See notes to financial statements. 7 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- Smith Barney Smith Barney American Deferred Shearson Shearson Express Profit Utility Guaranteed Common Stock Sharing Assets Fund Income Fund Fund Plan Total ------ ---- ----------- ---- ---- ----- Investments (Notes 2 and 3) $10,466,979 138,828,645 72,480,055 62,948 830,805,913 Cash 9,820 56,373 2,373 -- 312,574 Receivables: Employer Contribution -- -- -- -- 23,995,464 Participant Contribution and Other 49,251 1,104,512 553,094 -- 3,165,932 ---------- ----------- ----------- --------- ----------- Total Assets $ 10,526,050 139,989,530 73,035,522 62,948 858,279,883 ========== =========== ========== ====== =========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- -- 3,206,995 ---------- ----------- ----------- --------- ----------- Total Liabilities -- -- -- -- 3,206,995 Plan Equity 10,526,050 139,989,530 73,035,522 62,948 855,072,888 ---------- ----------- ---------- ------ ----------- Total Liabilities and Plan Equity $ 10,526,050 139,989,530 73,035,522 62,948 858,279,883 ========== =========== ========== ====== =========== See notes to financial statements. 8 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- The American American American American Travelers Inc. Capital Capital Capital Capital Common Stock Reserve Gov't. Securities Comstock Emerging Growth Assets Fund Fund Fund Fund Fund ------ ---- ---- ---- ---- ---- Investments (Notes 2 and 3) $110,793,540 12,022,631 4,780,310 7,306,554 11,146,795 Cash 167,082 -- -- -- -- Receivables: Participant Contribution and Other 40 -- -- -- -- ----------- ---------- ----------- ---------- ---------- Total Assets $ 110,960,662 12,022,631 4,780,310 7,306,554 11,146,795 =========== ========== ========= ========= ========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ 9,397,268 -- -- -- -- ----------- ---------- ----------- ---------- ---------- Total Liabilities 9,397,268 -- -- -- -- Plan Equity 101,563,394 12,022,631 4,780,310 7,306,554 11,146,795 ----------- ---------- --------- --------- ---------- Total Liabilities and Plan Equity $ 110,960,662 12,022,631 4,780,310 7,306,554 11,146,795 =========== ========== ========= ========= ========== See notes to financial statements. 9 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Common Common Common Common Sense Sense Sense Sense Money Market Government Growth & Income Growth Loan Assets Fund Fund Fund Fund Fund ------ ---- ---- ---- ---- ---- Investments (Notes 2 and 3) $2,996,511 785,330 2,060,532 2,750,817 12,574,983 Cash -- -- -- -- -- Receivables: Participant Contribution and Other -- -- -- -- -- ----------- ---------- ----------- ---------- ---------- Total Assets $ 2,996,511 785,330 2,060,532 2,750,817 12,574,983 ========= ======= ========= ========= ========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- -- -- ----------- ---------- ----------- ---------- ---------- Total Liabilities -- -- -- -- -- Plan Equity 2,996,511 785,330 2,060,532 2,750,817 12,574,983 --------- ------- --------- --------- ---------- Total Liabilities and Plan Equity $ 2,996,511 785,330 2,060,532 2,750,817 12,574,983 ========= ======= ========= ========= ========== See notes to financial statements. 10 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Bankers Smith Barney Smith Barney Smith Barney Trust Income and U.S. Government Income Smith Barney GIC Growth Securities Return Equity Assets Fund Fund Fund Fund Fund ------ ---- ---- ---- ---- ---- Investments (Notes 2 and 3) $ -- 78,563,180 21,888,499 10,210,027 9,148,249 Cash -- -- -- -- -- Receivables: Participant Contribution and Other -- -- -- -- -- ----------- ---------- ----------- ---------- ---------- Total Assets $ -- 78,563,180 21,888,499 10,210,027 9,148,249 =========== ========== =========== ========== ========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- -- -- ----------- ---------- ----------- ---------- ---------- Total Liabilities -- -- -- -- -- Plan Equity -- 78,563,180 21,888,499 10,210,027 9,148,249 ----------- ---------- ----------- ---------- ---------- Total Liabilities and Plan Equity $ -- 78,563,180 21,888,499 10,210,027 9,148,249 =========== ========== =========== ========== ========== See notes to financial statements. 11 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Smith Barney Smith Barney American American Money Fund/ International Connecticut Capital Express Daily Government Equity General Enterprise Dividend Assets Fund Fund GIC Fund Fund ------ ---- ---- --- ---- ---- Investments (Notes 2 and 3) $14,480,197 28,578,248 16,837,757 2,926,835 15,158,886 Cash -- -- -- -- -- Receivables: Participant Contribution and Other -- -- 138,785 -- 1,375 ----------- ---------- ----------- ---------- ---------- Total Assets $14,480,197 28,578,248 16,976,542 2,926,835 15,160,261 =========== ========== =========== ========== ========== Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- -- -- -- -- ----------- ---------- ----------- ---------- ---------- Total Liabilities -- -- -- -- -- Plan Equity 14,480,197 28,578,248 16,976,542 2,926,835 15,160,261 ---------- ---------- ---------- --------- ---------- Total Liabilities and Plan Equity $14,480,197 28,578,248 16,976,542 2,926,835 15,160,261 ========== ========== ========== ========= ========== See notes to financial statements. 12 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Salomon Smith Barney Smith Barney Smith Barney Smith Barney Brothers Shearson High Shearson Shearson Shearson Capital Income Aggressive Appreciation Diversified Assets Fund Fund Growth Fund Fund Strategic Fund ------ ---- ---- ----------- ---- -------------- Investments (Notes 2 and 3) $3,069,805 15,665,918 36,915,197 116,965,850 8,361,643 Cash -- 5,883 7,739 21,115 2,600 Receivables: Participant Contribution and Other -- -- -- -- -- ---------- ---------- ---------- ----------- --------- Total Assets $3,069,805 15,671,801 36,922,936 116,986,965 8,364,243 ========== ========== ========== =========== ========= Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ -- 5,883 7,452 20,828 2,026 ---------- ---------- ---------- ----------- --------- Total Liabilities -- 5,883 7,452 20,828 2,026 Plan Equity 3,069,805 15,665,918 36,915,484 116,966,137 8,362,217 ---------- ---------- ---------- ----------- --------- Total Liabilities and Plan Equity $3,069,805 15,671,801 36,922,936 116,986,965 8,364,243 ========== ========== ========== =========== ========= See notes to financial statements. 13 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Financial Position, With Fund Information December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Smith Barney Smith Barney Smith Barney American Deferred Shearson Global Shearson Shearson Express Profit Opportunities Utility Guaranteed Common Stock Sharing Assets Fund Fund Income Fund Fund Plan Total ------ ---- ---- ----------- ---- ---- ----- Investments (Notes 2 and 3) $22,440,353 14,409,854 111,716,118 86,886,244 80,655 781,521,518 Cash 3,412 2,576 29,446 -- -- 239,853 Receivables: Participant Contribution and Other -- -- 60 760 -- 141,020 ----------- ---------- ----------- ---------- -------- ------------ Total Assets $22,443,765 14,412,430 111,745,624 86,887,004 80,655 781,902,391 =========== ========== =========== ========== ======== ============ Liabilities and Plan Equity - - --------------------------- Payable for Stock Purchases $ 3,412 2,576 -- -- -- 9,439,445 ----------- ---------- ----------- ---------- -------- ------------ Total Liabilities 3,412 2,576 -- -- -- 9,439,445 Plan Equity 22,440,353 14,409,854 111,745,624 86,887,004 80,655 772,462,946 ----------- ---------- ----------- ---------- -------- ------------ Total Liabilities and Plan Equity $22,443,765 14,412,430 111,745,624 86,887,004 80,655 781,902,391 =========== ========== =========== ========== ======== ============ See notes to financial statements. 14 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- The American American American American Travelers Inc. Capital Capital Capital Capital Common Stock Reserve Gov't. Securities Comstock Emerging Growth Fund Fund Fund Fund Fund ---- ---- ---- ---- ---- Investment Activity: Dividends $ 1,972,118 390,130 306,947 1,621,623 1,146,639 Interest 33,136 115 4 17 586 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) (22,229,082) -- (517,550) (2,292,877) (3,276,920) ------------ ---------- ------------ ----------- ----------- (20,223,828) 390,245 (210,598) (671,237) (2,129,695) Less Trustee/ Administrative Expenses (468,233) (5,645) (2,077) (3,507) (72,273) ------------ ---------- ------------ ----------- ----------- (20,692,061) 384,600 (212,675) (674,744) (2,201,968) Contributions: Employer 30,677,722 -- -- -- -- Participants 20,930,939 718,418 654,519 895,838 17,585,222 Rollover 1,979,451 136,958 38,937 79,304 1,220,013 ------------ ---------- ------------ ----------- ----------- 53,588,110 855,376 693,456 975,142 18,805,235 Distributions to Participants (7,868,752) (1,097,674) (318,204) (465,051) (2,081,841) Loan Activity, Net (601,028) (140,734) (12,369) (10,074) (986,082) Transfers From (To) Other Funds 19,242,757 (182,312) (483,677) 330,396 20,115,830 ------------ ---------- ------------ ----------- ----------- Increase (Decrease) in Plan Equity 43,669,028 (180,745) (333,469) 155,669 33,651,174 Plan Equity, Beginning of Year 101,563,394 12,022,631 4,780,310 7,306,554 11,146,795 Transfer from (to) Lehman Brothers Holdings Inc. 5,382 -- -- -- 861 ------------ ---------- ------------ ----------- ----------- Plan Equity, End of Year $ 145,237,803 11,841,886 4,446,841 7,462,223 44,798,830 ============ ========== ============ =========== =========== See notes to financial statements. 15 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- Common Common Common Common Sense Sense Sense Sense Money Market Government Growth & Income Growth Loan Fund Fund Fund Fund Fund ---- ---- ---- ---- ---- Investment Activity: Dividends $ 91,769 51,965 269,617 224,829 -- Interest 12 25 2 6 -- Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) -- (119,078) (292,570) (212,363) -- ------------ ---------- ------------ ----------- ----------- 91,780 (67,089) (22,950) 12,472 -- Less Trustee/ Administrative Expenses (1,318) (368) (1,015) (1,310) ------------ ---------- ------------ ----------- ----------- 90,462 (67,457) (23,966) 11,162 -- Contributions: Employer -- -- -- -- -- Participants 146,515 99,657 319,166 404,280 1,309,929 Rollover 27 52 7,693 11,811 -- ------------ ---------- ------------ ----------- ----------- 146,541 99,710 326,859 416,092 1,309,929 Distributions to Participants (179,466) (15,362) (64,657) (114,071) (951,276) Loan Activity, Net (27,067) (7,265) (5,141) (11,814) 18,342,250 Transfers From (To) Other Funds (190,712) (38,584) (95,102) (217,516) -- ------------ ---------- ------------ ----------- ----------- Increase (Decrease) in Plan Equity (160,242) (28,958) 137,993 83,853 18,700,903 Plan Equity, Beginning of Year 2,996,511 785,330 2,060,532 2,750,817 12,574,983 Transfer from (to) Lehman Brothers Holdings Inc. -- -- -- -- -- ------------ ---------- ------------ ----------- ----------- Plan Equity, End of Year $ 2,836,269 756,372 2,198,525 2,834,670 31,275,886 ============ ========== ============ =========== =========== See notes to financial statements. 16 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- Smith Barney Smith Barney Smith Barney Smith Barney Income and U.S. Government Income Smith Barney Money Fund/ Growth Securities Return Equity Government Fund Fund Fund Fund Fund ---- ---- ---- ---- ---- Investment Activity: Dividends $ 3,583,204 1,382,644 365,485 314,030 1,043,998 Interest 918 451 225 168 6,862 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) (7,428,927) (1,684,038) (206,381) (225,600) -- ----------- ----------- ------------ ----------- ----------- (3,844,805) (300,942) 159,329 88,598 1,050,860 Less Trustee/ Administrative Expenses (147,491) (39,724) (18,557) (4,560) (58,498) ----------- ----------- ------------ ----------- ----------- (3,992,295) (340,667) 140,772 84,038 992,362 Contributions: Employer -- -- -- -- -- Participants 8,861,939 1,907,521 40 -- 4,259,935 Rollover 962,804 301,343 -- -- 1,599,355 9,824,743 2,208,864 40 -- 5,859,291 Distributions to Participants (6,861,042) (1,965,798) (599,147) (191,647) (3,497,171) Loan Activity, Net (850,047) (222,735) (166,651) (20,854) (776,199) Transfers From (To) Other Funds 3,435,988 (2,948,131) (2,505,508) (9,019,786) 12,824,059 ----------- ----------- ------------ ----------- ----------- Increase (Decrease) in Plan Equity 1,557,346 (3,268,467) (3,130,494) (9,148,249) 15,402,342 Plan Equity, Beginning of Year 78,563,180 21,888,499 10,210,027 9,148,249 14,480,197 Transfer from (to) Lehman Brothers Holdings Inc. 1,317 -- -- -- (32,621) ---------- ---------- ------------ ----------- ----------- Plan Equity, End of Year $ 80,121,843 18,620,032 7,079,533 -- 29,849,918 ========== ========== ============ =========== =========== See notes to financial statements. 17 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- Smith Barney American American Salomon International Connecticut Capital Express Daily Brothers Equity General Enterprise Dividend Capital Fund GIC Fund Fund Fund ---- --- ---- ---- ---- Investment Activity: Dividends $ 962,268 -- 855,695 -- -- Interest 624 -- 295 -- -- Net Realized Gains (Losses) and -- Appreciation (Depreciation) in Current Value of Investments (Note 3) (7,428,241) -- (875,103) -- -- ----------- ----------- ------------ ----------- ----------- (6,465,349) -- (19,114) -- -- Less Trustee/ Administrative Expenses (116,621) -- (27,115) -- -- ----------- ----------- ------------ ----------- ----------- (6,581,969) -- (46,228) -- -- Contributions: Employer -- -- -- -- -- Participants 20,488,965 -- 4,069,007 -- -- Rollover 1,473,686 -- 458,621 -- -- ----------- ----------- ------------ ----------- ----------- 21,962,650 -- 4,527,628 -- -- Distributions to Participants (3,487,820) -- (692,464) -- -- Loan Activity, Net (1,432,513) -- (221,570) -- -- Transfers From (To) Other Funds 32,337,688 (16,976,542) 7,420,472 (15,160,261) (3,069,805) ----------- ----------- ------------ ----------- ----------- Increase (Decrease) in Plan Equity 42,798,037 (16,976,542) 10,987,83 -- -- Plan Equity, Beginning of Year 28,578,248 16,976,542 2,926,835 15,160,261 3,069,805 Transfer from (to) Lehman Brothers Holdings Inc. 1,012 -- -- -- -- ----------- ----------- ------------ ----------- ----------- Plan Equity, End of Year $ 71,377,297 -- 13,914,672 -- -- ========== =========== ============ =========== =========== See notes to financial statements. 18 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- Smith Barney Smith Barney Smith Barney Smith Barney Smith Barney Shearson High Shearson Shearson Shearson Shearson Global Income Aggressive Appreciation Diversified Opportunities Fund Growth Fund Fund Strategic Fund Fund ---- ----------- ---- -------------- ---- Investment Activity: Dividends $ 1,173,657 753,630 7,579,686 966,367 817,060 Interest 103 195 1,990 341 159 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) (1,666,833) (1,181,449) (8,146,394) (1,262,670) (1,085,678) ----------- ----------- ------------ ----------- ----------- (493,072) (427,624) (564,718) (295,962) (268,459) Less Trustee/ Administrative Expenses (26,132) (53,013) (204,381) (26,261) (30,541) ----------- ----------- ------------ ----------- ----------- (519,205) (480,637) (769,099) (322,223) (299,000) Contributions: Employer -- -- -- -- -- Participants -- 36 15,502,740 3,815,537 -- Rollover -- -- 813,027 423,358 -- ----------- ----------- ------------ ----------- ----------- -- 36 16,315,766 4,238,896 -- Distributions to Participants (1,162,276) (2,010,574) (7,023,399) (888,735) (1,094,588) Loan Activity, Net (590,957) (1,217,986) (3,766,563) (369,610) (561,973) Transfers From (To) Other Funds (3,799,378) (10,661,662) (20,225,505) 844,650 (10,041,987) ----------- ----------- ------------ ----------- ----------- Increase (Decrease) in Plan Equity (6,071,815) (14,370,823) (15,468,800) 3,502,977 (11,997,548) Plan Equity, Beginning of Year 15,665,918 36,915,484 116,966,137 8,362,217 22,440,353 Transfer from (to) Lehman Brothers Holdings Inc. 190,478 253,448 157,811 105,735 154,665 ----------- ----------- ------------ ----------- ---------- Plan Equity, End of Year $ 9,784,581 22,798,109 101,655,148 11,970,929 10,597,470 ========== =========== ============ =========== ========== See notes to financial statements. 19 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1994 ----------------------------------------------------------------------------- Smith Barney Smith Barney American Deferred Shearson Shearson Express Profit Utility Guaranteed Common Stock Sharing Fund Income Fund Fund Plan Total ---- ----------- ---- ---- ----- Investment Activity: Dividends $ 756,519 -- 11,091,983 -- 37,721,865 Interest 248 11,919,415 11,329 2,292 11,979,517 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) (2,041,936) -- (3,122,174) -- (65,295,862) ------------ ----------- ------------ ------------- ------------ (1,285,169) 11,919,415 7,981,138 2,292 (15,594,481) Less Trustee/ Admin Expenses (27,908) (659,791) (167,178) -- (2,163,519) ------------ ----------- ------------ ------------- ------------ (1,313,077) 11,259,624 7,813,960 2,292 (17,757,999) Contributions: Employer -- -- -- -- 30,677,722 Participants 2,803,528 11,202,470 -- -- 115,976,198 Rollover 209,812 1,097,220 -- -- 10,813,474 ------------ ----------- ------------ ------------- ------------ 3,013,340 12,299,691 -- -- 157,467,394 Distributions to Participants (1,201,735) (10,029,884) (6,775,234) (20,000) (60,657,869) Loan Activity, Net (471,942) (3,495,892) (2,375,186) -- -- Transfers From (To) Other Funds (4,133,142) 16,538,772 (13,341,000) -- -- ------------ ----------- ------------ ------------- ------------ Increase (Decrease) in Plan Equity 4,106,556 26,572,310 14,677,460 (17,707) 79,051,526 Plan Equity, Beginning of Year 14,409,854 111,745,624 86,887,004 80,655 772,462,946 Transfer from (to) Lehman Brothers Holdings Inc. 222,752 1,671,596 825,978 -- 3,558,414 ------------ ----------- ------------ ------------ ------------ Plan Equity, End of Year $ 10,526,050 139,989,530 73,035,522 62,948 855,072,886 ============ =========== =========== ============ ============ See notes to financial statements. 20 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- The American American American American Travelers Inc. Capital Capital Capital Capital Common Stock Reserve Gov't. Securities Comstock Emerging Growth Fund Fund Fund Fund Fund ---- ---- ---- ---- ---- Investment Activity: Dividends $ 1,203,403 278,672 354,506 936,994 663,100 Interest 111,353 10,661 3,962 6,941 3,925 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) 30,486,208 -- (72,838) (329,994) 880,948 ------------ ----------- ------------ ------------- ------------ 31,620,964 289,333 285,630 613,941 1,547,973 Less Trustee/ Administrative Expenses (83,464) (7,706) ------------ ----------- ------------ ------------- ------------ 31,537,500 289,333 285,630 613,941 1,540,267 Contributions: Employer 8,469,800 -- -- -- -- Participants 7,267,646 1,066,910 792,071 969,348 2,575,544 Rollover 1,035,526 149,158 127,288 110,062 165,159 ------------ ----------- ------------ ------------- ------------ 16,772,972 1,216,068 919,359 1,079,410 2,740,703 Distributions to Participants (6,964,910) (1,521,535) (562,030) (625,127) (449,221) Loan Activity, Net (774,138) (73,764) (41,805) (19,919) 72,721 Transfers From (To) Other Funds 11,096,110 (2,151,921) (438,491) (555,616) 4,145,506 ------------ ----------- ------------ ------------- ------------ Increase (Decrease) in Plan Equity 51,667,534 (2,241,819) 162,663 492,689 8,049,976 Plan Equity, Beginning of Year 49,895,860 14,264,450 4,617,647 6,813,865 3,096,819 Transfer of Net Assets from Shearson Plan -- -- -- -- -- ------------ ----------- ------------ ------------- ------------ Plan Equity, End of Year $ 101,563,394 12,022,631 4,780,310 7,306,554 11,146,795 ============ =========== ============ ============= ============ See notes to financial statements. 21 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Common Common Common Common Sense Sense Sense Sense Money Market Government Growth & Income Growth Loan Fund Fund Fund Fund Fund ---- ---- ---- ---- ---- Investment Activity: Dividends $ 77,799 80,149 172,491 212,036 -- Interest 10,038 3,398 7,970 8,807 -- Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) -- (28,371) (7,658) 18,986 -- ------------ ----------- ------------ ------------- ------------ 87,837 55,176 172,803 239,829 -- Less Trustee/ Administrative Expenses ------------ ----------- ------------ ------------- ------------ 87,837 55,176 172,803 239,829 -- Contributions: Employer -- -- -- -- -- Participants 231,078 140,826 296,847 400,305 -- Rollover 81,372 -- 21,855 14,850 -- ------------ ----------- ------------ ------------- ------------ 312,450 140,826 318,702 415,155 -- Distributions to Participants (143,582) (9,105) (76,857) (109,341) (32,888) Loan Activity, Net (80,511) (7,877) (35,470) (42,507) 1,253,104 Transfers From (To) Other Funds (406,963) 123,768 82,554 (104,825) -- ------------ ----------- ------------ ------------- ------------ Increase (Decrease) in Plan Equity (230,769) 302,788 461,732 398,311 1,220,216 Plan Equity, Beginning of Year 3,227,280 482,542 1,598,800 2,352,506 11,312,280 Transfer of Net Assets from Shearson Plan -- -- -- -- 42,487 ------------ ----------- ------------ ------------- ------------ Plan Equity, End of Year $ 2,996,511 785,330 2,060,532 2,750,817 12,574,983 ============ =========== ============ ============= ============ See notes to financial statements. 22 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Bankers Smith Barney Smith Barney Smith Barney Trust Income and U.S. Government Income Smith Barney GIC Growth Securities Return Equity Fund Fund Fund Fund Fund ---- ---- ---- ---- ---- Investment Activity: Dividends $ -- 6,799,215 1,824,096 490,427 775,596 Interest -- 597 242 174 110 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) -- 4,865,423 (319,917) (115,400) 581,631 ------------ ----------- ------------ ------------- ----------- -- 11,665,235 1,504,421 375,201 1,357,337 Less Trustee/ Administrative Expenses (149,109) (50,726) (24,212) (21,254) ------------ ----------- ------------ ------------- ----------- -- 11,516,126 1,453,695 350,989 1,336,083 Contributions: Employer -- -- -- -- -- Participants -- 8,616,298 1,544,304 1,611,230 1,017,922 Rollover -- 669,910 199,620 927,071 449,626 ------------ ----------- ------------ ------------- ----------- -- 9,286,208 1,743,924 2,538,301 1,467,618 Distributions to Participants -- (4,512,150) (2,148,600) (696,235) (465,696) Loan Activity, Net -- (188,709) 19,574 10,097 (28,715) Transfers From (To) Other Funds (1,053,897) (6,640,641) (2,239,934) (686,195) (300,057) ------------ ----------- ------------ ------------- ----------- Increase (Decrease) in Plan Equity (1,053,897) 9,460,834 (1,171,341) 1,516,957 2,009,233 Plan Equity, Beginning of Year 1,053,897 69,102,346 23,059,840 8,693,070 7,139,016 Transfer of Net Assets from Shearson Plan -- -- -- -- -- ------------ ----------- ------------ ------------- ----------- Plan Equity, End of Year $ -- 78,563,180 21,888,499 10,210,027 9,148,249 ============ =========== ============ ============= =========== See notes to financial statements. 23 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Smith Barney Smith Barney American American Money Fund/ International Connecticut Capital Express Daily Government Equity General Enterprise Dividend Fund Fund GIC Fund Fund ---- ---- --- ---- ---- Investment Activity: Dividends $ 438,522 277,873 2,420,213 281,834 35,870 Interest 918 114 241 34 1,366 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) -- 8,802,796 -- (81,183) 191,115 ------------ ----------- ------------ ---------- ----------- 439,440 9,080,783 2,420,454 200,685 228,351 Less Trustee/ Administrative Expenses (37,171) (38,901) (244,071) (6,459) (3,840) ------------ ----------- ------------ ---------- ----------- 402,269 9,041,882 2,176,383 194,226 224,511 Contributions: Employer -- -- -- -- -- Participants 4,452,470 3,154,580 -- 774,820 287,385 Rollover 70,705 577,342 -- 172,562 -- ------------ ----------- ------------ ---------- ----------- 4,523,175 3,731,922 -- 947,382 287,385 Distributions to Participants (1,746,251) (715,581) (1,362,611) (59,631) -- Loan Activity, Net 190,447 (34,241) (216,575) (1,712) -- Transfers From (To) Other Funds (1,722,106) 2,858,594 (1,160,836) 1,846,570 (232,948) ------------ ----------- ------------ ---------- ----------- Increase (Decrease) in Plan Equity 1,647,534 14,882,576 (563,639) 2,926,835 278,948 Plan Equity, Beginning of Year 12,832,663 13,695,672 17,540,181 -- -- Transfer of Net Assets from Shearson Plan -- -- -- -- 14,881,313 ------------ ----------- ------------ ---------- ----------- Plan Equity, End of Year $ 14,480,197 28,578,248 16,976,542 2,926,835 15,160,261 ============ =========== ============ =========== =========== See notes to financial statements. 24 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Salomon Smith Barney Smith Barney Smith Barney Smith Barney Brothers Shearson High Shearson Shearson Shearson Capital Income Aggressive Appreciation Diversified Fund Fund Growth Fund Fund Strategic Fund ---- ---- ----------- ---- -------------- Investment Activity: Dividends $ 3,112 127,078 444 1,882,857 58,214 Interest 278 -- -- -- -- Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) 104,460 259,744 1,539,415 1,159,808 211,448 ----------- ---------- ------------ ----------- ----------- 107,850 386,822 1,539,859 3,042,665 269,662 Less Trustee/ Administrative Expenses (824) (3,854) (8,788) (30,307) (1,998) ----------- ---------- ------------ ----------- ----------- 107,026 382,968 1,531,071 3,012,358 267,664 Contributions: Employer -- -- -- -- -- Participants -- 219,845 406,066 847,066 118,314 Rollover -- 22,927 7,799 100,594 295 ----------- ---------- ------------ ----------- ----------- -- 242,772 413,865 947,660 118,609 Distributions to Participants -- -- -- -- -- Loan Activity, Net -- -- -- -- -- Transfers From (To) Other Funds (17,766) (235,776) (338,554) (547,055) (77,885) ----------- ---------- ------------ ----------- ----------- Increase (Decrease) in Plan Equity 89,260 389,964 1,606,382 3,412,963 308,388 Plan Equity, Beginning of Year -- -- -- -- -- Transfer of Net Assets from Shearson Plan 2,980,545 15,275,954 35,309,102 113,553,174 8,053,829 ----------- ---------- ------------ ----------- ----------- Plan Equity, End of Year $ 3,069,805 15,665,918 36,915,484 116,966,137 8,362,217 =========== ========== ============ =========== =========== See notes to financial statements. 25 Travelers Group 401(k) Savings Plan (Formerly The Travelers Inc. 401(k) Savings Plan) Statements of Operations and Changes in Plan Equity, With Fund Information Years Ended December 31, 1994 and 1993 December 31, 1993 ----------------------------------------------------------------------------- Smith Barney Smith Barney Smith Barney American Deferred Shearson Global Shearson Shearson Express Profit Opportunities Utility Guaranteed Common Stock Sharing Fund Fund Income Fund Fund Plan Total ----- ---- ----------- ---- ---- ----- Investment Activity: Dividends $ 68,460 75,003 -- -- -- 19,357,964 Interest -- -- 1,037,177 760 2,070 1,211,136 Net Realized Gains (Losses) and Appreciation (Depreciation) in Current Value of Investments (Note 3) 1,486,106 186,019 -- (42,763) -- 49,775,983 ----------- ---------- ------------ ----------- ------- ------------ 1,554,566 261,022 1,307,177 (42,003) 2,070 70,345,083 Less Trustee/ Admin Expenses (5,369) (3,679) (272,567) (25,846) (1,020,145) ----------- ---------- ------------ ----------- ------- ------------ 1,549,197 257,343 764,610 (67,849) 2,070 69,324,938 Contributions: Employer -- -- -- -- -- 8,469,800 Participants 262,464 282,713 915,919 -- -- 38,252,041 Rollover 47,663 -- 129,460 607 -- 5,081,451 ----------- ---------- ------------ ----------- ------- ------------ 310,127 282,713 1,045,379 607 -- 51,803,292 Distributions to Participants -- -- -- (348,535) (11,548) (22,561,434) Loan Activity, Net -- -- -- -- -- -- Transfers From (To) Other Funds (231,789) (114,130) (544,490) (351,227) -- -- ----------- ---------- ------------ ----------- ------- ------------ Increase (Decrease) in Plan Equity 1,627,535 425,926 1,265,499 (767,004) (9,478) 98,566,796 Plan Equity, Beginning of Year -- -- -- -- 90,133 250,868,867 Transfer of Net Assets from: Shearson Plan 20,812,818 13,983,928 110,480,125 87,654,008 -- 423,027,283 ---------- ---------- ----------- ----------- ------- ------------ Plan Equity, End of Year $22,440,353 14,409,854 111,745,624 86,887,004 80,655 772,462,946 ========== ========== =========== =========== ======= ============ See notes to financial statements. 26 THE TRAVELERS INC. 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS December 31, 1994 and 1993 1. Plan Description: The following brief description of The Travelers Inc. 401(k) Savings Plan ("Plan") (formerly Primerica Corporation Savings Plan) is provided for general information purposes only. Participants should refer to The Travelers Inc. 401(k) Savings Plan Document (as amended and restated as of June 30, 1994) for more complete information. The Plan covers all eligible employees of The Travelers Inc. ("Travelers"), the plan sponsor, and eligible employees of subsidiaries and affiliates of Travelers ("Company") as may become participating companies. The Plan is administered by the Annuity Board of Travelers. On April 26, 1995, the shareholders of Travelers approved an amendment changing the Company's name from The Travelers Inc. to Travelers Group Inc. Subsequent to this date, the Plan changed its name from The Travelers Inc. 401(k) Savings Plan to Travelers Group 401(k) Savings Plan. Effective with the December 31, 1993 merger of Primerica Corporation ("Primerica") and The Travelers Corporation, Primerica changed its name to The Travelers Inc. and the Primerica Common Stock Fund changed its name to The Travelers Inc. Common Stock Fund which invests in shares of The Travelers Inc. Common Stock. Effective December 1, 1993, the Smith Barney Shearson 401(k) Savings Plan ("Shearson Plan") was merged into the Plan and as of that date, each participant's interest in the Shearson Plan was transferred into the Plan in the manner described in the Shearson Plan Summary Plan Description dated November 1, 1993. During 1994, as prescribed by the Shearson acquisition document dated July 31, 1993, additional transfers were made between Lehman Brothers Holdings Inc. and the Plan. The Plan is a defined contribution plan designed to encourage savings on the part of eligible employees. Eligible employees may elect to have a portion of their regular pay, including overtime, appropriated each pay period, in any one percent increment, by an amount from 1% to 15% of their compensation (subject to statutory limitations) as "pre-tax contributions" and the Company will make a contribution, equal to a specified percentage of the participant's contribution, on their behalf as a pre-tax contribution. Pre-tax contributions and employer contributions, as well as the earnings thereon, are taxed to the participant only at the time of distribution. Travelers, for itself or on behalf of the Company, as appropriate, contributes a "matching employer contribution" on behalf of each participant as of the last day of the Plan year. For the year ended December 31, 1994, Travelers contributed an amount equal to 100% of each participant's 1994 pre-tax contributions up to an annual maximum of $1,000. For the year ended December 31, 1993, Travelers contributed an amount equal to 25% of each participant's 1993 pre-tax contributions not in excess of 6% of that participant's compensation up to an annual maximum of $1,000. In addition, Travelers, on behalf of the Company, makes contributions on behalf of eligible employees who elect to have pre-tax contributions See notes to financial statements. 27 1. Plan Description (Continued): invested in The Travelers Inc. Common Stock Fund by having such contributions invested at a 5% discount from the fair market value of such stock ("discount contributions"). The Plan does not allow after tax contributions. Travelers has the right to terminate the Plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event of termination of the Plan, the account balances of all participants will become fully vested. As of January 1, 1994, the Plan had two trustees: Citibank N.A. and American Capital Trust Company ("ACTC"). Citibank, N.A. was the trustee of the funds relating to the former Shearson Plan. ACTC was the trustee of the funds relating to the former Primerica Corporation Savings Plan. On November 1, 1994, Citibank replaced ACTC as trustee of the funds relating to the former Primerica Corporation Savings Plan. As of December 31, 1994, Citibank, N.A. serves as the trustee for the entire plan. In January 1994, the assets of the American Express Daily Dividend Fund were transferred into the Smith Barney Money Fund/Government Fund; the Salomon Brothers Capital Fund was transferred into the Smith Barney Shearson Appreciation Fund; and the Connecticut General GIC Fund was transferred into the Smith Barney Shearson Guaranteed Income Fund which was previously named the Shearson Fixed Income Fund. In April 1994, the assets of the Smith Barney Equity Fund were transferred into the Smith Barney Income and Growth Fund. During 1994, the Smith Barney World Fund changed its name to the Smith Barney International Equity Fund. Fund Transfers and Allocation of Contributions - - ---------------------------------------------- Participants may elect to divide their contribution among funds in increments divisible by 5%. Matching employer contributions are invested in The Travelers Inc. Common Stock Fund and are limited to $1,000 per participant each year. A participant may elect to suspend his pre-tax contributions, as soon as administratively practicable, by filing prior written notice with the plan administrator. Such participant may thereafter resume pre-tax contributions as of the first pay period beginning in any calendar month, subject to the Plan's notice requirements. In addition, a participant may change the rate of his pre-tax contributions as of the first pay period beginning in any calendar month, subject to the Plan's notice requirements. A participant may elect to change the allocation of future pre-tax contributions among the funds once each calendar month as of the first day of any pay period, subject to the Plan's notice requirements. A participant may elect to transfer the value of his pre-tax contributions in increments divisible by 5% or a specified number of whole shares from one or more of the investment funds to another investment fund or funds once each calendar month. The transfer will be effective as of the last business day of the calendar month subject to the Plan's notice requirements. 28 1. Plan Description (Continued): Contributions - - ------------- The rights of a participant to his or her pre-tax contributions and any earnings thereon are at all times fully vested and non-forfeitable. Matching employer contributions are fully vested and non-forfeitable for those participants whose initial date of employment is before January 1, 1992. For those participants whose initial date of employment is on or after January 1, 1992, matching employer contributions are 100% vested and non-forfeitable after five years of service. Rollover and Transfer Contributions - - ----------------------------------- The Plan permits participants to have their interests in other qualified profit-sharing plans transferred to the Plan or to make rollover contributions into the Plan from an individual retirement account (or similar arrangement) resulting from a rollover from another qualified plan or directly from another qualified plan. Such transfers or rollovers to the Plan may only be made with the approval of the plan administrator and do not affect any other contributions made by or on behalf of a participant. Loans - - ----- Subject to the Plan's provisions and the requirements contained within ERISA and the Internal Revenue Code of 1986, as amended (the "Code"), a participant may apply for a loan from the Plan at an annual interest rate equal to one percentage point above the Prime Rate published in The Wall Street Journal for the first business day of the month in which the loan application is received. The loan repayment by a participant who is employed by the Company is generally made through after-tax payroll deductions. Withdrawals - - ----------- Prior to termination of employment, a participant may withdraw, as of the last business day of any month, subject to the Plan's notice requirements, all or a portion of the value of his or her rollover contributions account, all or any portion of the vested value of his or her account if the participant has attained age 59-1/2 or becomes totally and permanently disabled or all or any portion of the value of his or her pre-tax contributions account in the event of demonstrated financial hardship, subject to the Plan's provisions. Withdrawals to which a participant is entitled are the amounts that can be provided by the contributions and income thereon (including net realized and unrealized investment gains and losses) allocated to each participant's account. Withdrawals from The Travelers Inc. Common Stock Fund and the American Express Common Stock Fund may be paid in either shares of common stock or cash. Fractional shares and withdrawals from other funds are paid in cash. Distributions - - ------------- The participant shall have distributed the total of his account in lump-sum payment on the last business day of the month coincident with his retirement date. If the participant leaves the Company before retirement, he may elect to have his account distributed to him as of the last business day of the month coincident to his last day of employment. Distributions from The Travelers Inc. Common Stock Fund and the American Express Common Stock 29 1. Plan Description (Continued): Fund may be paid in either shares of common stock or cash. Fractional shares and distributions from other funds are paid in cash. 2. Summary of Significant Accounting Policies: The financial statements of the Plan have been prepared on the accrual basis. Security transactions are recorded on a trade date basis. Dividend income is accrued on the ex-dividend date. Certain reclassifications have been made to prior year's financial statements to conform to the current year's presentation. Fair Value of Investments ------------------------- The Travelers Inc. Common Stock Fund and American Express Common Stock Fund are valued at the last reported sale price on the New York Stock Exchange for the last business day of the year. The following registered investment companies are valued at the net asset value per share as determined by American Capital Asset Management and Research: American Capital Comstock Fund American Capital Emerging Growth Fund American Capital Enterprise Fund American Capital Gov't Securities Fund American Capital Reserve Fund Common Sense Government Fund Common Sense Growth and Income Fund Common Sense Growth Fund Common Sense Money Market Fund The following are valued at the net asset value per share as determined by Smith Barney Mutual Funds Management Inc.: American Express Daily Dividend Fund Salomon Brothers Capital Fund Smith Barney Income and Growth Fund Smith Barney Income Return Fund Smith Barney International Equity Fund Smith Barney Money Fund/Government Fund Smith Barney Shearson Aggressive Growth Fund Smith Barney Shearson Appreciation Fund Smith Barney Shearson Diversified Strategic Fund Smith Barney Shearson Global Opportunities Fund Smith Barney Shearson Guaranteed Income Fund Smith Barney Shearson High Income Fund Smith Barney Shearson Utility Fund Smith Barney U.S Government Securities 30 2. Summary of Significant Accounting Policies (Continued): Short-term money market investments, the Loan Fund and the Deferred Profit Sharing Plan are valued at cost plus earned interest. The Smith Barney Shearson Guaranteed Income Fund and The Connecticut General and Banker's Trust Guaranteed Investment Contracts are valued at contract value. 3. Summary of Investments: A summary of the investments in the Plan as of December 31, 1994 and 1993 is as follows: 1994 Investment Funds Cost Value - - --------------------- ---- ----- The Travelers Inc. Common Stock Fund Invested $ 107,107,900 $ 123,836,997 Funds not yet invested 208,569 208,569 ------------- ------------- Total 107,316,469 124,045,566 ------------- ------------- American Capital Reserve Fund Invested 11,840,613 11,840,613 Funds not yet invested 112 112 ------------- ------------- Total 11,840,725 11,840,725 ------------- ------------- American Capital Gov't Securities Fund Invested 4,899,874 4,443,863 Funds not yet invested 4 4 ------------- ------------- Total 4,899,878 4,443,867 ------------- ------------- American Capital Comstock Fund Invested 9,693,217 7,457,863 Funds not yet invested 16 16 ------------- ------------- Total 9,693,233 7,457,879 ------------- ------------- American Capital Emerging Growth Fund Invested 47,354,968 44,587,338 Funds not yet invested 2,262 2,262 ------------- ------------- Total 47,357,230 44,589,600 ------------- ------------- Common Sense Money Market Fund Invested 2,835,617 2,835,617 Funds not yet invested 639 639 ------------- ------------- Total 2,836,256 2,836,256 ------------- ------------- Common Sense Government Fund Invested 857,650 755,249 Funds not yet invested 24 24 ------------- ------------- Total 857,674 755,273 ------------- ------------- 31 3. Summary of Investments (Continued): 1994 Investment Funds Cost Value - - --------------------- ---- ----- Common Sense Growth & Income Fund Invested $ 2,487,437 $ 2,197,881 Funds not yet invested 2 2 ------------- ------------- Total 2,487,439 2,197,883 ------------- ------------- Common Sense Growth Fund Invested 3,043,875 2,835,350 Funds not yet invested 6 6 ------------- ------------- Total 3,043,881 2,835,356 ------------- ------------- Loan Fund Invested 31,275,886 31,275,886 Funds not yet invested -- -- ------------- ------------- Total 31,275,886 31,275,886 ------------- ------------- Smith Barney Income & Growth Fund Invested 80,907,790 79,994,986 Funds not yet invested 2,310 2,310 ------------- ------------- Total 80,910,100 79,997,296 ------------- ------------- Smith Barney U.S. Government Securities Fund Invested 19,956,983 18,579,414 Funds not yet invested 915 915 ------------- ------------- Total 19,957,898 18,580,329 ------------- ------------- Smith Barney Income Return Fund Invested 7,203,647 7,078,832 Funds not yet invested 699 699 ------------- ------------- Total 7,204,346 7,079,531 ------------- ------------- Smith Barney Money Fund/Government Fund Invested 29,718,296 29,718,296 Funds not yet invested 10,669 10,669 ------------- ------------- Total 29,728,965 29,728,965 ------------- ------------- Smith Barney International Equity Fund Invested 71,360,902 71,101,442 Funds not yet invested 2,046 2,046 ------------- ------------- Total 71,362,948 71,103,488 ------------- ------------- American Capital Enterprise Fund Invested 14,792,862 13,870,616 Funds not yet invested 729 729 ------------- ------------- Total 14,793,591 13,871,345 ------------- ------------- 32 3. Summary of Investments (Continued): 1993 Investment Funds Cost Value - - --------------------- ---- ----- The Travelers Inc. Common Stock Fund Invested $ 69,387,866 $110,793,540 Funds not yet invested 167,082 167,082 ------------- ------------- Total 69,554,948 110,960,662 ------------- ------------- American Capital Reserve Fund Invested 12,029,191 12,022,631 Funds not yet invested -- -- ------------- ------------- Total 12,029,191 12,022,631 ------------- ------------- American Capital Gov't Securities Fund Invested 4,787,482 4,780,310 Funds not yet invested -- -- ------------- ------------- Total 4,787,482 4,780,310 ------------- ------------- American Capital Comstock Fund Invested 7,734,882 7,306,554 Funds not yet invested -- -- ------------- ------------- Total 7,734,882 7,306,554 ------------- ------------- American Capital Emerging Growth Fund Invested 10,222,203 11,146,795 Funds not yet invested -- -- ------------- ------------- Total 10,222,203 11,146,795 ------------- ------------- Common Sense Money Market Fund Invested 2,958,619 2,996,511 Funds not yet invested -- -- ------------- ------------- Total 2,958,619 2,996,511 ------------- ------------- Common Sense Government Fund Invested 817,748 785,330 Funds not yet invested -- -- ------------- ------------- Total 817,748 785,330 ------------- ------------- Common Sense Growth & Income Fund Invested 2,077,531 2,060,532 Funds not yet invested -- -- ------------- ------------- Total 2,077,531 2,060,532 ------------- ------------- Common Sense Growth Fund Invested 2,760,947 2,750,817 Funds not yet invested -- -- ------------- ------------- Total 2,760,947 2,750,817 ------------- ------------- 33 3. Summary of Investments (Continued): 1993 Investment Funds Cost Value - - --------------------- ---- ----- Loan Fund Invested $ 12,574,983 $ 12,574,983 Funds not yet invested -- -- ------------- ------------- Total 12,574,983 12,574,983 ------------- ------------- Smith Barney Income and Growth Fund Invested 71,200,706 78,563,180 Funds not yet invested -- -- ------------- ------------- Total 71,200,706 78,563,180 ------------- ------------- Smith Barney U.S. Government Securities Fund Invested 21,701,903 21,888,499 Funds not yet invested -- -- ------------- ------------- Total 21,701,903 21,888,499 ------------- ------------- Smith Barney Income Return Fund Invested 10,122,099 10,210,027 Funds not yet invested -- -- ------------- ------------- Total 10,122,099 10,210,027 ------------- ------------- Smith Barney Equity Fund Invested 9,363,705 9,148,249 Funds not yet invested -- -- ------------- ------------- Total 9,363,705 9,148,249 ------------- ------------- Smith Barney Money Fund/Government Fund Invested 14,480,129 14,480,197 Funds not yet invested -- -- ------------- ------------- Total 14,480,129 14,480,197 ------------- ------------- Smith Barney International Equity Fund Invested 20,367,932 28,578,248 Funds not yet invested -- -- ------------- ------------- Total 20,367,932 28,578,248 ------------- ------------- Connecticut General GIC Invested 16,837,757 16,837,757 Funds not yet invested -- -- ------------- ------------- Total 16,837,757 16,837,757 ------------- ------------- American Capital Enterprise Fund Invested 3,016,479 2,926,835 Funds not yet invested -- -- ------------- ------------- Total 3,016,479 2,926,835 ------------- ------------- 34 3. Summary of Investments (Continued): 1993 Investment Funds Cost Value - - --------------------- ---- ----- American Express Daily Dividend Fund Invested $ 15,158,886 $ 15,158,886 Funds not yet invested -- -- ------------- ------------- Total 15,158,886 15,158,886 ------------- ------------- Salomon Brothers Capital Fund Invested 3,070,119 3,069,805 Funds not yet invested -- -- ------------- ------------- Total 3,070,119 3,069,805 ------------- ------------- Smith Barney Shearson High Income Fund Invested 15,446,302 15,665,918 Funds not yet invested 5,883 5,883 ------------- ------------- Total 15,452,185 15,671,801 ------------- ------------- Smith Barney Shearson Aggressive Growth Fund Invested 28,225,877 36,915,197 Funds not yet invested 7,739 7,739 ------------- ------------- Total 28,233,616 36,922,936 ------------- ------------- Smith Barney Shearson Appreciation Fund Invested 93,402,612 116,965,850 Funds not yet invested 21,115 21,115 ------------- ------------- Total 93,423,727 116,986,965 ------------- ------------- Smith Barney Shearson Diversified Strategic Fund Invested 8,328,448 8,361,643 Funds not yet invested 2,600 2,600 ------------- ------------- Total 8,331,048 8,364,243 ------------- ------------- Smith Barney Shearson Global Opportunities Fund Invested 20,705,324 22,440,353 Funds not yet invested 3,412 3,412 ------------- ------------- Total 20,708,736 22,443,765 ------------- ------------- Smith Barney Shearson Utility Fund Invested 14,377,011 14,409,854 Funds not yet invested 2,576 2,576 ------------- ------------- Total 14,379,587 14,412,430 ------------- ------------- Smith Barney Shearson Guaranteed Income Fund Invested 111,716,118 111,716,118 Funds not yet invested 29,446 29,446 ------------- ------------- Total 111,745,564 111,745,564 ------------- ------------- 35 3. Summary of Investments (Continued): 1993 Investment Funds Cost Value - - --------------------- ---- ----- American Express Common Stock Fund Invested $ 79,677,409 $ 86,886,244 Funds not yet invested -- -- ------------- ------------- Total 79,677,409 86,886,244 ------------- ------------- Deferred Profit Sharing Plan Invested 80,655 80,655 Funds not yet invested -- -- ------------- ------------- Total 80,655 80,655 ------------- ------------- 1993 Total Investments $ 682,588,935 $ 781,761,371 =========== =========== 4. Federal Income Tax Consequences: On March 31, 1995, the Plan received its latest favorable determination from the Internal Revenue Service approving the continued exemption of the Plan from Federal income taxes. The Plan has been amended to incorporate certain operational amendments since such date. In the opinion of the Plan Sponsor and in-house counsel, the Plan and its underlying Trust are being operated within the terms of the Plan and in compliance with the applicable rules of the Internal Revenue Code. Matching employer contributions, pre-tax contributions and discount contributions and the Plan earnings on all contributions are not taxable to participants until they are withdrawn by or distributed to the participants. Unrealized appreciation on shares of The Travelers Inc. Common Stock Fund and the American Express Common Stock Fund distributed in a qualifying withdrawal or distribution is also not taxable at the time of distribution. 36 The Travelers Inc. 401(k) Savings Plan Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes December 31, 1994 Number Fair Investment Descriptions of Shares Cost Value - - ----------------------- --------- ---- ----- Short Term Funds: Deferred Profit Sharing Plan 62,948 $ 62,948 $ 62,948 Smith Barney Liquid Reserve Fund 312,573 312,573 312,573 Stock Funds: American Express Common Stock Fund 2,456,951 69,070,193 72,480,055 The Travelers Inc. Common Stock Fund 3,825,081 107,107,900 123,836,997 Mutual Funds: American Capital Emerging Growth Fund 1,907,888 47,354,968 44,587,338 American Capital Enterprise Fund 1,213,527 14,792,862 13,870,616 American Capital Gov't Securities Fund 459,552 4,899,874 4,443,863 American Capital Comstock Fund 601,441 9,693,217 7,457,863 American Capital Reserve Fund 11,840,613 11,840,613 11,840,613 Common Sense Growth Fund 206,658 3,043,875 2,835,350 Common Sense Growth & Income Fund 162,205 2,487,437 2,197,881 Common Sense Government Fund 76,057 857,650 755,249 Common Sense Money Market Fund 2,835,617 2,835,617 2,835,617 Smith Barney Money Fund/Government Fund 29,718,299 29,718,296 29,718,296 Smith Barney Income & Growth Fund 6,562,345 80,907,790 79,994,986 Smith Barney Income Return Fund 757,905 7,203,647 7,078,832 Smith Barney International Equity Fund 4,237,273 71,360,902 71,101,442 Smith Barney U.S. Government Securities Fund 1,486,353 19,956,983 18,579,414 Smith Barney Shearson Aggressive Growth Fund 886,710 18,458,119 22,797,316 Smith Barney Shearson Appreciation Fund 9,988,150 91,591,156 101,479,606 Smith Barney Shearson Global Opportunities Fund 407,563 10,971,200 10,596,627 Smith Barney Shearson Diversified Strategic Fund 1,587,693 13,047,968 11,907,701 Smith Barney Shearson High Income Fund 933,696 11,080,781 9,775,793 Smith Barney Shearson Utility Fund 819,012 11,933,511 10,466,979 Guaranteed Investment Contracts ("GIC")-Smith Barney: Aetna Life Insurance GIC #14355 4,321,333 4,321,333 4,321,334 Connecticut General Life Insurance GIC #25112 17,081,598 17,081,598 17,081,598 John Hancock Contract GIC #7129 8,306,678 8,306,678 8,306,678 Metropolitan Life Insurance Annuity Term Life GIC #13561 6,833,869 6,833,869 6,833,869 Metropolitan Life GIC #13560 17,125,328 17,125,328 17,125,328 37 The Travelers Inc. 401(k) Savings Plan Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes December 31, 1994 Number Fair Investment Descriptions (continued) of Shares Cost Value - - ----------------------------------- --------- ---- ----- Principal Financial Corporate Contract #4-09271-01 8,138,412 $ 8,138,412 $ 8,138,412 Principal Financial Corporate Contract #49271-2 2,531,282 2,531,282 2,531,282 Prudential Insurance Company GIC #7658-211 8,865,744 8,865,744 8,865,744 Prudential Insurance Company GIC #7658-212 8,584,323 8,584,323 8,584,323 Travelers Life Insurance Company Contract #GR-16384 51,687,645 51,687,645 51,687,645 Travelers Life Insurance Company Contract #GR-16409 5,352,432 5,352,432 5,352,432 Loans: Loan Fund 31,275,886 31,275,886 ---------- ---------- Total Investments $ 810,694,612 $ 831,118,486 =========== =========== 38 The Travelers Inc. 401(k) Savings Plan Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes Which Were Both Acquired and Disposed Within The Plan Year For Year Ended December 31, 1994 There were no assets held for investment purposes which were both acquired and disposed within the Plan year. 39 The Travelers Inc. 401(k) Savings Plan Schedule to Form 5500: Item 27(d) Schedule of Reportable Transactions For Year Ended December 31, 1994 The following transactions exceeded 5% of the Plan's net assets of $ 772,462,946 at the beginning of year ended December 31, 1994. Gain Investment Descriptions Purchases Cost (Loss) Sales Proceeds - - ----------------------- --------- ---- ------ ----- -------- Travelers Life Insurance Company Contract #GR-16384 12 $ 42,930,212 0 40