EX-99.2 3 a992finsupp93024.htm EX-99.2 Document
旅行者保險公司，Inc。
財務補充資料-2024年第三季度
展示品99.2 image2a.gif
頁碼
合併結果
財務亮點1
調解至凈利潤和每股收益（損失）2
損益表3
各重要組成部分的凈利潤（損失）和綜合比率4
核心收入5
選定的統計數據 - 財產和意外保險業務6
財產和意外保險業務的已出具及已賺保費7
商業保險
分部收入 8
主要組件的分部收入和綜合比例9
選定的統計10
凈已被保費11
債券 型及特殊保險
分部收入12
根據主要組件劃分的業績和綜合比率13
所選統計數據14
凈保費15
個人保險
業績（虧損）16
根據主要組件劃分的業績（虧損）和綜合比率17
所選統計數據18
凈保費19
汽車選定統計20
房主和其他選定統計21
補充細節
利息支出和其他22
綜合資產負債表23
投資組合24
投資組合 - 固定到期債券數據25
投資收入26
包含在股東權益中的凈實現投資利得（損失）和凈非實現投資利得（損失）27
再保險應收款項28
損失儲備和損失調整費用的凈預備29
石棉儲備30
首字母大寫31
根據法定資本和盈餘的特許人和GAAP股東權益調解32
現金流量表33
現金流量表（續）34
財務指標詞彙表和報告業務部門描述35-36
 財務補充資料中包含的信息未經審計。這份文件應與公司提交給證券交易委員會的10-Q表一起閱讀，該表將會提交。 證券交易委員會。
指數
旅行者保險公司，Inc。
財務亮點
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（金額以百萬美元計算，除每股數據外）1Q20232Q20233Q20234Q20231Q20242Q20243Q2024截至今年第三季2023年截至今年第三季2024年
凈利潤（損失）$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
每股凈收益：
基礎$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $5.50 $5.89 $12.68 
稀釋$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $5.42 $5.83 $12.51 
核心收入$970 $15 $454 $1,633 $1,096 $585 $1,218 $1,439 $2,899 
每股核心收益：
基礎$4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $5.31 $6.21 $12.60 
稀釋$4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $5.24 $6.15 $12.43 
股東權益回報率17.5 %(0.2)%7.7 %29.0 %18.0 %8.6 %19.2 %8.3 %15.3 %
股東權益核心回報率14.5 %0.2 %6.9 %24.0 %15.4 %8.1 %16.6 %7.2 %13.4 %
期末總資產$118,352 $120,573 $121,384 $125,978 $127,410 $129,315 $134,588 $121,384 $134,588 
期末股東權益$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 $27,696 $19,978 $27,696 
每股帳面價值，期末$99.80 $95.46 $87.47 $109.19 $109.28 $109.08 $122.00 $87.47 $122.00 
減：未實現投資收益（虧損），稅後(16.75)(19.99)(28.31)(13.71)(16.25)(17.44)(9.30)(28.31)(9.30)
調整後每股帳面價值，期末$116.55 $115.45 $115.78 $122.90 $125.53 $126.52 $131.30 $115.78 $131.30 
普通股基本每股平均發行股數加權平均231.7 229.7 228.8 228.4 229.0 228.6 227.4 230.0 228.3 
普通股基本每股平均發行股數加權平均與普通股等價證券（攤薄）234.4 229.7 231.1 231.1 232.0 231.5 230.6 232.5 231.3 
期末普通股在外流通股數231.0 228.9 228.4 228.2 229.0 227.9 227.0 228.4 227.0 
宣告的普通股股息$218 $233 $232 $232 $232 $245 $243 $683 $720 
回購的普通股：
根據董事會授權
股份2.2 2.2 0.6 0.4 1.2 1.1 1.1 5.0 3.4 
成本$400 $400 $100 $65 $250 $250 $250 $900 $750 
其他
股份0.3 — — — 0.6 0.1 — 0.3 0.7 
成本$62 $— $1 $1 $138 $3 $3 $63 $144 




請參閱第35和36頁的財務指標詞彙表和報告業務部門描述。
1
旅行者保險公司，Inc。
調節至凈利潤（損失）和每股盈利
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（單位：百萬美元和百萬股，除每股盈利外）1Q20232Q20233Q20234Q20231Q20242Q20243Q20242023年首三季度2024年首三季度
凈利潤（損失）
凈利潤（損失）$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
調整：
凈實現投資（收益）損失，稅後(5)29 50 7 (27)51 (42)74 (18)
核心收入 $970 $15 $454 $1,633 $1,096 $585 $1,218 $1,439 $2,899 
基本每股盈利
凈利潤（損失）$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $5.50 $5.89 $12.68 
調整：
凈實現投資（收益）損失，稅後(0.02)0.13 0.22 0.02 (0.12)0.22 (0.19)0.32 (0.08)
核心收入 $4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $5.31 $6.21 $12.60 
稀釋每股盈利
凈利潤（損失）$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $5.42 $5.83 $12.51 
調整：
稅後淨實現投資收益（損失）(0.02)0.13 0.21 0.02 (0.11)0.22 (0.18)0.32 (0.08)
核心收入 $4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $5.24 $6.15 $12.43 
調整凈利潤（虧損）和加權平均股份以進行每股收益計算：（1）
基本和稀釋1Q20232Q20233Q20234Q20231Q20242Q20243Q20242023年前三季度2024年前三季度
凈利潤（虧損），如報告$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
參與的股份為基礎的獎勵 - 指定收入(7)(1)(3)(12)(8)(5)(10)(10)(22)
凈利潤（損失）可供普通股東享有 - 基本和稀釋$968 $(15)$401 $1,614 $1,115 $529 $1,250 $1,355 $2,895 
公司
基礎
加權平均流通股數231.7 229.7 228.8 228.4 229.0 228.6 227.4 230.0 228.3 
稀釋
加權平均流通股數231.7 229.7 228.8 228.4 229.0 228.6 227.4 230.0 228.3 
稀釋證券的加權平均效應-股票期權和績效股份2.7 — 2.3 2.7 3.0 2.9 3.2 2.5 3.0 
稀釋加權平均股數234.4 229.7 231.1 231.1 232.0 231.5 230.6 232.5 231.3 
(1) 凈利潤和加權平均股份的調整通常可以用於核心收益每股收益的計算。2023年第2季度的凈虧損每股收益計算中，排除了將200萬美元的未分配虧損分配給參與股份獎勵的部分，因為這樣的分配將導致基本和稀釋每股收益的抗稀釋。此外，2023年第2季度的凈虧損每股收益計算中，排除了250萬股期權和績效股的增量影響，因為這些潛在的普通股份及其對收入的影響具有抗稀釋性。2023年第2季度的核心收益每股收益計算中包含了這些項目。

請參閱第35和36頁的財務指標詞彙表和報告業務部門描述。
2
Travelers Insurance公司。
綜合損益表 - 合併財務報表
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（以百萬為單位的美元）1Q20232Q20233Q20234Q20231Q20242Q20243Q20242023年前三季度2024年前三季度
收益
保險費$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $27,788 $31,073 
淨投資收益663 712 769 778 846 885 904 2,144 2,635 
收費收入106 106 112 109 109 115 121 324 345 
淨實現投資收益（虧損）6 (35)(65)(11)35 (65)55 (94)25 
其他收入75 99 101 78 112 105 120 275 337 
總收益9,704 10,098 10,635 10,927 11,228 11,283 11,904 30,437 34,415 
索賠和費用
索賠和索賠調整費用5,959 7,227 7,149 5,880 6,656 7,373 6,996 20,335 21,025 
延後收購成本攤銷1,462 1,519 1,604 1,641 1,698 1,678 1,790 4,585 5,166 
總部及行政費用1,267 1,308 1,312 1,289 1,406 1,478 1,460 3,887 4,344 
利息費用88 92 98 98 98 98 98 278 294 
總索賠和費用8,776 10,146 10,163 8,908 9,858 10,627 10,344 29,085 30,829 
稅前收入（虧損）928 (48)472 2,019 1,370 656 1,560 1,352 3,586 
所得稅費用（利益） (47)(34)68 393 247 122 300 (13)669 
凈利潤（損失）$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
其他統計
對凈投資收入的有效稅率16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %16.5 %17.8 %
凈投資收入（稅後）$557 $594 $640 $645 $698 $727 $742 $1,791 $2,167 
災害損失，扣除再保險後：
稅前$535 $1,481 $850 $125 $712 $1,509 $939 $2,866 $3,160 
稅後$422 $1,171 $669 $99 $563 $1,192 $739 $2,262 $2,494 
上年度儲備變動-有利（不利）：
稅前$105 $60 $(154)$132 $91 $230 $126 $11 $447 
稅後$83 $47 $(122)$105 $71 $182 $99 $8 $352 





See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3
The Travelers Companies, Inc.
Net Income (Loss) by Major Component and Combined Ratio - Consolidated
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($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Underwriting gain (loss)$501 $(509)$(107)$1,088 $472 $(58)$547 $(115)$961 
Net investment income557 594 640 645 698 727 742 1,791 2,167 
Other income (expense), including interest expense(88)(70)(79)(100)(74)(84)(71)(237)(229)
Core income 970 15 454 1,633 1,096 585 1,218 1,439 2,899 
Net realized investment gains (losses)5 (29)(50)(7)27 (51)42 (74)18 
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio66.7 %77.9 %73.0 %58.4 %65.2 %71.4 %64.8 %72.6 %67.1 %
Underwriting expense ratio28.7 %28.6 %28.0 %27.4 %28.7 %28.8 %28.4 %28.4 %28.6 %
Combined ratio95.4 %106.5 %101.0 %85.8 %93.9 %100.2 %93.2 %101.0 %95.7 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(1.2)%(0.7)%1.6 %(1.3)%(0.9)%(2.2)%(1.2)%(0.1)%(1.5)%
Catastrophes, net of reinsurance6.0 %16.1 %8.8 %1.2 %7.1 %14.7 %8.8 %10.3 %10.2 %
Underlying combined ratio90.6 %91.1 %90.6 %85.9 %87.7 %87.7 %85.6 %90.8 %87.0 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Billing and policy fees and other$28 $28 $28 $29 $30 $30 $28 $84 $88 
Fee income:
Loss and loss adjustment expenses$42 $40 $42 $40 $39 $42 $44 $124 $125 
Underwriting expenses64 66 70 69 70 73 77 200 220 
Total fee income$106 $106 $112 $109 $109 $115 $121 $324 $345 
Non-insurance general and administrative expenses$95 $92 $99 $103 $102 $106 $106 $286 $314 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
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($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Premiums$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $27,788 $31,073 
Net investment income663 712 769 778 846 885 904 2,144 2,635 
Fee income106 106 112 109 109 115 121 324 345 
Other revenues75 99 101 78 112 105 120 275 337 
Total revenues
9,698 10,133 10,700 10,938 11,193 11,348 11,849 30,531 34,390 
Claims and expenses
Claims and claim adjustment expenses5,959 7,227 7,149 5,880 6,656 7,373 6,996 20,335 21,025 
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 1,790 4,585 5,166 
General and administrative expenses1,267 1,308 1,312 1,289 1,406 1,478 1,460 3,887 4,344 
Interest expense88 92 98 98 98 98 98 278 294 
Total claims and expenses
8,776 10,146 10,163 8,908 9,858 10,627 10,344 29,085 30,829 
Core income (loss) before income taxes922 (13)537 2,030 1,335 721 1,505 1,446 3,561 
Income tax expense (benefit)(48)(28)83 397 239 136 287 7 662 
Core income $970 $15 $454 $1,633 $1,096 $585 $1,218 $1,439 $2,899 
Other statistics
Effective tax rate on net investment income16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %16.5 %17.8 %
Net investment income (after-tax)$557 $594 $640 $645 $698 $727 $742 $1,791 $2,167 
Catastrophes, net of reinsurance:
Pre-tax$535 $1,481 $850 $125 $712 $1,509 $939 $2,866 $3,160 
After-tax$422 $1,171 $669 $99 $563 $1,192 $739 $2,262 $2,494 
Prior year reserve development - favorable (unfavorable):
Pre-tax$105 $60 $(154)$132 $91 $230 $126 $11 $447 
After-tax$83 $47 $(122)$105 $71 $182 $99 $8 $352 









See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

5
The Travelers Companies, Inc.
Selected Statistics - Property and Casualty Operations
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($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory underwriting
Gross written premiums$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $12,149 $32,517 $35,324 
Net written premiums$9,396 $10,318 $10,493 $9,994 $10,184 $11,115 $11,317 $30,207 $32,616 
Net earned premiums$8,854 $9,216 $9,718 $9,973 $10,128 $10,243 $10,704 $27,788 $31,075 
Losses and loss adjustment expenses5,906 7,179 7,091 5,826 6,602 7,320 6,940 20,176 20,862 
Underwriting expenses2,727 2,863 2,860 2,748 3,012 3,111 3,139 8,450 9,262 
Statutory underwriting gain (loss) 221 (826)(233)1,399 514 (188)625 (838)951 
Policyholder dividends12 10 14 13 12 12 12 36 36 
Statutory underwriting gain (loss) after policyholder dividends$209 $(836)$(247)$1,386 $502 $(200)$613 $(874)$915 
Other statutory statistics
Reserves for losses and loss adjustment expenses$51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $56,909 $53,692 $56,909 
Increase (decrease) in reserves$402 $1,479 $1,049 $25 $861 $1,344 $987 $2,930 $3,192 
Statutory capital and surplus$23,689 $22,934 $23,267 $25,114 $25,329 $25,210 $26,191 $23,267 $26,191 
Net written premiums/surplus (1)1.54:11.65:11.68:11.60:11.62:1 1.66:1 1.63:1 1.68:11.63:1

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

















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

6
The Travelers Companies, Inc.
Written and Earned Premiums - Property and Casualty Operations
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($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Written premiums
Gross$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $12,149 $32,517 $35,324 
Ceded(951)(589)(770)(461)(1,128)(750)(832)(2,310)(2,710)
Net$9,396 $10,318 $10,493 $9,994 $10,182 $11,115 $11,317 $30,207 $32,614 
Earned premiums
Gross$9,469 $9,866 $10,397 $10,678 $10,867 $11,083 $11,484 $29,732 $33,434 
Ceded(615)(650)(679)(705)(741)(840)(780)(1,944)(2,361)
Net$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $27,788 $31,073 






























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

7
The Travelers Companies, Inc.
Segment Income - Business Insurance
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($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Premiums$4,477 $4,644 $4,956 $5,067 $5,160 $5,168 $5,474 $14,077 $15,802 
Net investment income473 509 551 552 609 632 642 1,533 1,883 
Fee income99 98 102 101 101 105 109 299 315 
Other revenues47 67 71 47 77 77 89 185 243 
Total revenues
5,096 5,318 5,680 5,767 5,947 5,982 6,314 16,094 18,243 
Claims and expenses
Claims and claim adjustment expenses2,907 3,296 3,519 2,974 3,331 3,471 3,698 9,722 10,500 
Amortization of deferred acquisition costs742 773 820 838 864 861 930 2,335 2,655 
General and administrative expenses734 764 772 771 818 835 826 2,270 2,479 
Total claims and expenses
4,383 4,833 5,111 4,583 5,013 5,167 5,454 14,327 15,634 
Segment income before income taxes713 485 569 1,184 934 815 860 1,767 2,609 
Income tax expense (benefit)(43)83 101 227 170 159 162 141 491 
Segment income $756 $402 $468 $957 $764 $656 $698 $1,626 $2,118 
Other statistics
Effective tax rate on net investment income15.8 %16.4 %16.8 %16.8 %17.4 %17.7 %17.7 %16.3 %17.6 %
Net investment income (after-tax)$398 $426 $458 $459 $502 $521 $528 $1,282 $1,551 
Catastrophes, net of reinsurance:
Pre-tax$199 $396 $203 $40 $209 $389 $340 $798 $938 
After-tax$157 $313 $160 $32 $166 $307 $268 $630 $741 
Prior year reserve development - favorable (unfavorable):
Pre-tax$19 $(101)$(263)$56 $— $34 $(91)$(345)$(57)
After-tax$15 $(80)$(207)$44 $— $26 $(72)$(272)$(46)












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
8
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Business Insurance
image2a.gif


($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Underwriting gain (loss)$388 $(12)$22 $531 $274 $148 $176 $398 $598 
Net investment income398 426 458 459 502 521 528 1,282 1,551 
Other income (expense)(30)(12)(12)(33)(12)(13)(6)(54)(31)
Segment income$756 $402 $468 $957 $764 $656 $698 $1,626 $2,118 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio63.8 %70.0 %70.0 %57.7 %63.6 %66.2 %66.6 %68.0 %65.5 %
Underwriting expense ratio29.8 %30.1 %29.1 %28.8 %29.7 %29.9 %29.2 %29.7 %29.6 %
Combined ratio93.6 %100.1 %99.1 %86.5 %93.3 %96.1 %95.8 %97.7 %95.1 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(0.4)%2.2 %5.3 %(1.1)%— %(0.6)%1.7 %2.4 %0.4 %
Catastrophes, net of reinsurance4.4 %8.5 %4.1 %0.8 %4.1 %7.5 %6.2 %5.7 %5.9 %
Underlying combined ratio89.6 %89.4 %89.7 %86.8 %89.2 %89.2 %87.9 %89.6 %88.8 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Billing and policy fees and other$4 $4 $4 $4 $4 $4 $4 $12 $12 
Fee income:
Loss and loss adjustment expenses$42 $40 $42 $40 $39 $42 $44 $124 $125 
Underwriting expenses57 58 60 61 62 63 65 175 190 
Total fee income$99 $98 $102 $101 $101 $105 $109 $299 $315 
Non-insurance general and administrative expenses$80 $77 $84 $84 $86 $87 $90 $241 $263 
 
 
 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
9
The Travelers Companies, Inc.
Selected Statistics - Business Insurance
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory underwriting
Gross written premiums$5,828 $5,662 $5,685 $5,394 $6,383 $6,169 $6,173 $17,175 $18,725 
Net written premiums$5,157 $5,175 $5,080 $5,018 $5,598 $5,539 $5,517 $15,412 $16,654 
Net earned premiums$4,477 $4,644 $4,956 $5,067 $5,162 $5,168 $5,474 $14,077 $15,804 
Losses and loss adjustment expenses2,858 3,251 3,467 2,924 3,282 3,422 3,645 9,576 10,349 
Underwriting expenses1,492 1,507 1,459 1,464 1,630 1,620 1,583 4,458 4,833 
Statutory underwriting gain (loss)127 (114)30 679 250 126 246 43 622 
Policyholder dividends8 7 8 8 8 7 9 23 24 
Statutory underwriting gain (loss) after policyholder dividends$119 $(121)$22 $671 $242 $119 $237 $20 $598 





























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

10
The Travelers Companies, Inc.
Net Written Premiums - Business Insurance
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Net written premiums by market       
Domestic       
Select Accounts$908 $883 $824 $862 $974 $975 $885 $2,615 $2,834 
Middle Market2,926 2,618 2,750 2,751 3,213 2,769 3,030 8,294 9,012 
National Accounts294 277 247 317 327 312 264 818 903 
National Property and Other590 862 874 682 642 912 896 2,326 2,450 
Total Domestic4,718 4,640 4,695 4,612 5,156 4,968 5,075 14,053 15,199 
International439 535 385 406 440 571 442 1,359 1,453 
Total$5,157 $5,175 $5,080 $5,018 $5,596 $5,539 $5,517 $15,412 $16,652 
Net written premiums by product line       
Domestic       
Workers’ compensation$1,051 $852 $777 $812 $1,019 $847 $795 $2,680 $2,661 
Commercial automobile851 830 835 830 964 923 937 2,516 2,824 
Commercial property693 988 968 845 763 1,054 1,022 2,649 2,839 
General liability866 744 829 825 965 809 914 2,439 2,688 
Commercial multi-peril1,241 1,227 1,240 1,292 1,416 1,345 1,367 3,708 4,128 
Other16 (1)46 8 29 (10)40 61 59 
Total Domestic4,718 4,640 4,695 4,612 5,156 4,968 5,075 14,053 15,199 
International439 535 385 406 440 571 442 1,359 1,453 
Total$5,157 $5,175 $5,080 $5,018 $5,596 $5,539 $5,517 $15,412 $16,652 










See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
11
The Travelers Companies, Inc.
Segment Income - Bond & Specialty Insurance
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Premiums$875 $911 $935 $934 $956 $977 $1,009 $2,721 $2,942 
Net investment income73 78 86 91 90 94 101 237 285 
Other revenues5 7 6 7 9 6 7 18 22 
Total revenues953 996 1,027 1,032 1,055 1,077 1,117 2,976 3,249 
Claims and expenses
Claims and claim adjustment expenses380 366 351 388 428 473 441 1,097 1,342 
Amortization of deferred acquisition costs160 168 173 172 182 183 194 501 559 
General and administrative expenses165 173 172 171 205 207 203 510 615 
Total claims and expenses705 707 696 731 815 863 838 2,108 2,516 
Segment income before income taxes248 289 331 301 240 214 279 868 733 
Income tax expense41 59 66 61 45 44 57 166 146 
Segment income$207 $230 $265 $240 $195 $170 $222 $702 $587 
Other statistics
Effective tax rate on net investment income16.5 %17.0 %16.6 %17.9 %18.0 %18.2 %18.8 %16.7 %18.4 %
Net investment income (after-tax)$61 $65 $71 $75 $74 $77 $81 $197 $232 
Catastrophes, net of reinsurance:
Pre-tax$5 $21 $5 $6 $5 $40 $4 $31 $49 
After-tax$4 $17 $4 $4 $4 $31 $3 $25 $38 
Prior year reserve development - favorable:
Pre-tax$58 $119 $72 $36 $24 $24 $36 $249 $84 
After-tax$46 $93 $57 $29 $19 $19 $28 $196 $66 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

12
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance
image2a.gif
($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Underwriting gain$143 $160 $190 $163 $116 $90 $135 $493 $341 
Net investment income61 65 71 75 74 77 81 197 232 
Other income3 5 4 2 5 3 6 12 14 
Segment income$207 $230 $265 $240 $195 $170 $222 $702 $587 
Combined ratio (1)
Loss and loss adjustment expense ratio43.0 %39.8 %36.9 %41.1 %44.4 %48.0 %43.4 %39.8 %45.2 %
Underwriting expense ratio37.0 %37.3 %36.7 %36.2 %40.1 %39.7 %39.1 %37.0 %39.7 %
Combined ratio80.0 %77.1 %73.6 %77.3 %84.5 %87.7 %82.5 %76.8 %84.9 %
Impact on combined ratio:
Net favorable prior year reserve development(6.7)%(13.0)%(7.7)%(3.9)%(2.5)%(2.5)%(3.5)%(9.1)%(2.9)%
Catastrophes, net of reinsurance0.6 %2.3 %0.6 %0.6 %0.5 %4.1 %0.4 %1.1 %1.7 %
Underlying combined ratio86.1 %87.8 %80.7 %80.6 %86.5 %86.1 %85.6 %84.8 %86.1 %
(1)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Billing and policy fees and other$— $— $— $— $— $1 $1 $— $2 
Non-insurance general and administrative expenses$1 $1 $2 $4 $3 $1 $1 $4 $5 















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
13
The Travelers Companies, Inc.
Selected Statistics - Bond & Specialty Insurance
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory underwriting       
Gross written premiums$1,010 $1,035 $1,082 $1,060 $1,076 $1,127 $1,165 $3,127 $3,368 
Net written premiums$886 $964 $1,003 $989 $943 $1,040 $1,072 $2,853 $3,055 
Net earned premiums$875 $911 $935 $934 $956 $977 $1,009 $2,721 $2,942 
Losses and loss adjustment expenses376 363 345 384 424 468 438 1,084 1,330 
Underwriting expenses346 352 359 333 411 408 421 1,057 1,240 
Statutory underwriting gain153 196 231 217 121 101 150 580 372 
Policyholder dividends4 3 6 5 4 5 3 13 12 
Statutory underwriting gain after policyholder dividends$149 $193 $225 $212 $117 $96 $147 $567 $360 
 




























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

14
The Travelers Companies, Inc.
Net Written Premiums - Bond & Specialty Insurance
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Net written premiums by market
Domestic
Management Liability$511 $541 $551 $553 $543 $586 $617 $1,603 $1,746 
Surety257 293 321 276 296 325 344 871 965 
Total Domestic768 834 872 829 839 911 961 2,474 2,711 
International118 130 131 160 104 129 111 379 344 
Total$886 $964 $1,003 $989 $943 $1,040 $1,072 $2,853 $3,055 
Net written premiums by product line
Domestic
Fidelity & surety$318 $350 $385 $334 $356 $382 $411 $1,053 $1,149 
General liability399 425 419 443 434 468 479 1,243 1,381 
Other51 59 68 52 49 61 71 178 181 
Total Domestic768 834 872 829 839 911 961 2,474 2,711 
International118 130 131 160 104 129 111 379 344 
Total$886 $964 $1,003 $989 $943 $1,040 $1,072 $2,853 $3,055 


















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

15
The Travelers Companies, Inc.
Segment Income (Loss) - Personal Insurance
image2a.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Premiums$3,502 $3,661 $3,827 $3,972 $4,010 $4,098 $4,221 $10,990 $12,329 
Net investment income117 125 132 135 147 159 161 374 467 
Fee income7 8 10 8 8 10 12 25 30 
Other revenues23 25 24 24 26 22 24 72 72 
Total revenues3,649 3,819 3,993 4,139 4,191 4,289 4,418 11,461 12,898 
Claims and expenses
Claims and claim adjustment expenses2,672 3,565 3,279 2,518 2,897 3,429 2,857 9,516 9,183 
Amortization of deferred acquisition costs560 578 611 631 652 634 666 1,749 1,952 
General and administrative expenses359 361 359 338 375 424 420 1,079 1,219 
Total claims and expenses3,591 4,504 4,249 3,487 3,924 4,487 3,943 12,344 12,354 
Segment income (loss) before income taxes58 (685)(256)652 267 (198)475 (883)544 
Income tax expense (benefit)(25)(147)(63)132 47 (45)91 (235)93 
Segment income (loss)$83 $(538)$(193)$520 $220 $(153)$384 $(648)$451 
Other statistics
Effective tax rate on net investment income16.3 %16.9 %17.2 %17.3 %17.7 %18.0 %18.0 %16.8 %17.9 %
Net investment income (after-tax)$98 $103 $111 $111 $122 $129 $133 $312 $384 
Catastrophes, net of reinsurance:
Pre-tax$331 $1,064 $642 $79 $498 $1,080 $595 $2,037 $2,173 
After-tax$261 $841 $505 $63 $393 $854 $468 $1,607 $1,715 
Prior year reserve development - favorable:
Pre-tax$28 $42 $37 $40 $67 $172 $181 $107 $420 
After-tax$22 $34 $28 $32 $52 $137 $143 $84 $332 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
16
The Travelers Companies, Inc.
Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance
image2a.gif

($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Underwriting gain (loss)$(30)$(657)$(319)$394 $82 $(296)$236 $(1,006)$22 
Net investment income98 103 111 111 122 129 133 312 384 
Other income15 16 15 15 16 14 15 46 45 
Segment income (loss)$83 $(538)$(193)$520 $220 $(153)$384 $(648)$451 
Combined ratio (1)
Loss and loss adjustment expense ratio76.3 %97.4 %85.7 %63.4 %72.2 %83.7 %67.7 %86.6 %74.5 %
Underwriting expense ratio25.2 %24.6 %24.3 %23.4 %24.7 %24.8 %24.8 %24.7 %24.7 %
Combined ratio101.5 %122.0 %110.0 %86.8 %96.9 %108.5 %92.5 %111.3 %99.2 %
Impact on combined ratio:
Net favorable prior year reserve development(0.8)%(1.2)%(1.0)%(1.1)%(1.6)%(4.2)%(4.3)%(1.0)%(3.4)%
Catastrophes, net of reinsurance9.4 %29.1 %16.8 %2.0 %12.4 %26.4 %14.1 %18.5 %17.6 %
Underlying combined ratio92.9 %94.1 %94.2 %85.9 %86.1 %86.3 %82.7 %93.8 %85.0 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Billing and policy fees and other$24 $24 $24 $25 $26 $25 $23 $72 $74 
Fee income$7 $8 $10 $8 $8 $10 $12 $25 $30 
Non-insurance general and administrative expenses$5 $4 $4 $6 $5 $6 $4 $13 $15 


 







See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

17
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance
image2a.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory underwriting
Gross written premiums$3,509 $4,210 $4,496 $4,001 $3,851 $4,569 $4,811 $12,215 $13,231 
Net written premiums$3,353 $4,179 $4,410 $3,987 $3,643 $4,536 $4,728 $11,942 $12,907 
Net earned premiums$3,502 $3,661 $3,827 $3,972 $4,010 $4,098 $4,221 $10,990 $12,329 
Losses and loss adjustment expenses2,672 3,565 3,279 2,518 2,896 3,430 2,857 9,516 9,183 
Underwriting expenses889 1,004 1,042 951 971 1,083 1,135 2,935 3,189 
Statutory underwriting gain (loss)$(59)$(908)$(494)$503 $143 $(415)$229 $(1,461)$(43)
Policies in force (in thousands)
Automobile3,248 3,225 3,223 3,223 3,212 3,180 3,158 3,223 3,158 
Homeowners and Other6,355 6,361 6,348 6,290 6,235 6,167 6,106 6,348 6,106 




























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

18
The Travelers Companies, Inc.
Net Written Premiums - Personal Insurance
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Net written premiums by product line
Domestic
Automobile$1,654 $1,823 $2,022 $1,831 $1,859 $2,001 $2,138 $5,499 $5,998 
Homeowners and Other1,565 2,173 2,216 1,995 1,635 2,347 2,410 5,954 6,392 
Total Domestic3,219 3,996 4,238 3,826 3,494 4,348 4,548 11,453 12,390 
International134 183 172 161 149 188 180 489 517 
Total$3,353 $4,179 $4,410 $3,987 $3,643 $4,536 $4,728 $11,942 $12,907 































See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
19
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Automobile
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory underwriting
Gross written premiums$1,751 $1,946 $2,142 $1,947 $1,970 $2,129 $2,264 $5,839 $6,363 
Net written premiums$1,741 $1,939 $2,132 $1,937 $1,959 $2,120 $2,253 $5,812 $6,332 
Net earned premiums$1,723 $1,789 $1,874 $1,944 $1,980 $2,026 $2,080 $5,386 $6,086 
Losses and loss adjustment expenses1,406 1,540 1,525 1,602 1,430 1,532 1,477 4,471 4,439 
Underwriting expenses409 432 458 424 454 468 495 1,299 1,417 
Statutory underwriting gain (loss)$(92)$(183)$(109)$(82)$96 $26 $108 $(384)$230 
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio81.7 %86.0 %81.4 %82.4 %72.2 %75.6 %71.0 %83.0 %72.9 %
Underwriting expense ratio23.0 %22.4 %22.1 %21.2 %22.4 %22.3 %22.4 %22.5 %22.4 %
Combined ratio104.7 %108.4 %103.5 %103.6 %94.6 %97.9 %93.4 %105.5 %95.3 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development0.4 %0.2 %0.3 %0.4 %(2.3)%(1.5)%(2.7)%0.3 %(2.1)%
Catastrophes, net of reinsurance0.9 %4.7 %2.6 %0.5 %2.0 %4.2 %4.9 %2.7 %3.7 %
Underlying combined ratio103.4 %103.5 %100.6 %102.7 %94.9 %95.2 %91.2 %102.5 %93.7 %
Catastrophes, net of reinsurance:
Pre-tax$15 $85 $49 $10 $39 $85 $103 $149 $227 
After-tax$11 $68 $38 $8 $31 $67 $81 $117 $179 
Prior year reserve development - favorable (unfavorable):
Pre-tax$(7)$(4)$(5)$(8)$45 $30 $56 $(16)$131 
After-tax$(6)$(2)$(4)$(6)$34 $26 $45 $(12)$105 
Policies in force (in thousands)3,248 3,225 3,223 3,223 3,212 3,180 3,158 
Change from prior year quarter1.1 %(0.6)%(1.8)%(1.7)%(1.1)%(1.4)%(2.0)%
Change from prior quarter(0.9)%(0.7)%(0.1)%— %(0.3)%(1.0)%(0.7)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Billing and policy fees and other$14 $14 $14 $15 $15 $15 $14 $42 $44 
Fee income$4 $4 $5 $4 $4 $5 $7 $13 $16 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
20
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Homeowners and Other
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory underwriting
Gross written premiums$1,758 $2,264 $2,354 $2,054 $1,881 $2,440 $2,547 $6,376 $6,868 
Net written premiums$1,612 $2,240 $2,278 $2,050 $1,684 $2,416 $2,475 $6,130 $6,575 
Net earned premiums$1,779 $1,872 $1,953 $2,028 $2,030 $2,072 $2,141 $5,604 $6,243 
Losses and loss adjustment expenses1,266 2,025 1,754 916 1,466 1,898 1,380 5,045 4,744 
Underwriting expenses480 572 584 527 517 615 640 1,636 1,772 
Statutory underwriting gain (loss)$33 $(725)$(385)$585 $47 $(441)$121 $(1,077)$(273)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio71.2 %108.2 %89.7 %45.2 %72.2 %91.6 %64.5 %90.0 %76.0 %
Underwriting expense ratio27.3 %26.9 %26.5 %25.6 %26.9 %27.2 %27.0 %26.9 %27.1 %
Combined ratio98.5 %135.1 %116.2 %70.8 %99.1 %118.8 %91.5 %116.9 %103.1 %
Impact on combined ratio:
Net favorable prior year reserve development(2.0)%(2.4)%(2.1)%(2.4)%(1.1)%(6.8)%(5.9)%(2.2)%(4.6)%
Catastrophes, net of reinsurance17.8 %52.3 %30.3 %3.5 %22.6 %48.0 %23.0 %33.7 %31.2 %
Underlying combined ratio82.7 %85.2 %88.0 %69.7 %77.6 %77.6 %74.4 %85.4 %76.5 %
Catastrophes, net of reinsurance:
Pre-tax$316 $979 $593 $69 $459 $995 $492 $1,888 $1,946 
After-tax$250 $773 $467 $55 $362 $787 $387 $1,490 $1,536 
Prior year reserve development - favorable:
Pre-tax$35 $46 $42 $48 $22 $142 $125 $123 $289 
After-tax$28 $36 $32 $38 $18 $111 $98 $96 $227 
Policies in force (in thousands)6,355 6,361 6,348 6,290 6,235 6,167 6,106 
Change from prior year quarter1.1 %0.4 %(0.3)%(1.3)%(1.9)%(3.0)%(3.8)%
Change from prior quarter(0.3)%0.1 %(0.2)%(0.9)%(0.9)%(1.1)%(1.0)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Billing and policy fees and other$10 $10 $10 $10 $11 $10 $9 $30 $30 
Fee income$3 $4 $5 $4 $4 $5 $5 $12 $14 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
21
The Travelers Companies, Inc.
Interest Expense and Other
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Other revenues$— $— $— $— $— $— $— $— $— 
Claims and expenses
Interest expense88 92 98 98 98 98 98 278 294 
General and administrative expenses9 10 9 9 8 12 11 28 31 
Total claims and expenses97 102 107 107 106 110 109 306 325 
Loss before income tax benefit(97)(102)(107)(107)(106)(110)(109)(306)(325)
Income tax benefit(21)(23)(21)(23)(23)(22)(23)(65)(68)
Loss$(76)$(79)$(86)$(84)$(83)$(88)$(86)$(241)$(257)




























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

22
The Travelers Companies, Inc.
Consolidated Balance Sheet
image2a.gif
($ and shares in millions)September 30,
2024		December 31,
2023
Assets
Fixed maturities, available for sale, at fair value (amortized cost $86,657 and $81,781; allowance for expected credit losses of $0 and $5)
$83,985 $77,807 
Equity securities, at fair value (cost $547 and $553)
702 608 
Real estate investments901 959 
Short-term securities5,482 5,137 
Other investments4,380 4,299 
Total investments95,450 88,810 
Cash772 650 
Investment income accrued665 688 
Premiums receivable (net of allowance for expected credit losses of $70 and $69)
11,271 10,282 
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $120 and $118)
8,075 8,143 
Ceded unearned premiums1,502 1,150 
Deferred acquisition costs3,579 3,306 
Deferred taxes1,336 1,504 
Contractholder receivables (net of allowance for expected credit losses of $18 and $20)
3,292 3,249 
Goodwill4,273 3,976 
Other intangible assets368 277 
Other assets4,005 3,943 
Total assets$134,588 $125,978 
Liabilities
Claims and claim adjustment expense reserves$64,746 $61,627 
Unearned premium reserves22,783 20,872 
Contractholder payables3,310 3,269 
Payables for reinsurance premiums921 518 
Debt8,033 8,031 
Other liabilities7,099 6,740 
Total liabilities106,892 101,057 
Shareholders’ equity
Common stock (1,750.0 shares authorized; 227.0 and 228.2 shares issued and outstanding)
25,339 24,906 
Retained earnings47,789 45,591 
Accumulated other comprehensive loss(3,433)(4,471)
Treasury stock, at cost (563.3 and 559.2 shares)
(41,999)(41,105)
Total shareholders’ equity27,696 24,921 
Total liabilities and shareholders’ equity$134,588 $125,978 


23
The Travelers Companies, Inc.
Investment Portfolio
image2a.gif
(at carrying value, $ in millions)September 30,
2024		Pre-tax Book
Yield (1)		December 31,
2023		Pre-tax Book
Yield (1)
Investment portfolio
Taxable fixed maturities$60,416 3.80 %$53,626 3.51 %
Tax-exempt fixed maturities23,569 2.98 %24,181 2.92 %
Total fixed maturities83,985 3.56 %77,807 3.33 %
Non-redeemable preferred stocks51 2.19 %48 2.18 %
Common stocks651 560 
Total equity securities702 608 
Real estate investments901 959 
Short-term securities5,482 5.10 %5,137 5.49 %
Private equities2,847 2,783 
Hedge funds214 219 
Real estate partnerships857 855 
Other investments462 442 
Total other investments4,380 4,299 
Total investments$95,450 $88,810 
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity$(2,111)$(3,129)

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





24
The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
image2a.gif
(at carrying value, $ in millions)September 30,
2024		December 31,
2023
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies$5,925 $6,368 
Obligations of U.S. states and political subdivisions:
Pre-refunded835 966 
All other27,261 27,540 
Total28,096 28,506 
Debt securities issued by foreign governments942 1,006 
Mortgage-backed securities - principally obligations of U.S. Government agencies11,999 7,818 
Corporate and all other bonds37,023 34,109 
Total fixed maturities$83,985 $77,807 
Fixed Maturities
Quality Characteristics (1)
September 30, 2024December 31, 2023
Amount% of TotalAmount% of Total
Quality Ratings
Aaa$40,786 48.6 %$36,612 47.0 %
Aa15,655 18.6 15,797 20.3 
A16,085 19.2 14,715 18.9 
Baa10,449 12.4 9,701 12.5 
Total investment grade82,975 98.8 76,825 98.7 
Ba705 0.8 581 0.8 
B252 0.3 335 0.4 
Caa and lower53 0.1 66 0.1 
Total below investment grade1,010 1.2 982 1.3 
Total fixed maturities$83,985 100.0 %$77,807 100.0 %
Average weighted quality Aa2, AAAa2, AA
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases4.1 4.1 

 

(1)  Rated using external rating agencies or by Travelers when a public rating does not exist.  Below investment grade assets refer to securities rated “Ba” or below.
25
The Travelers Companies, Inc.
Investment Income
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Gross investment income
Fixed maturities$575 $591 $631 $675 $692 $709 $749 $1,797 $2,150 
Short-term securities47 55 67 72 70 70 77 169 217 
Other53 78 82 40 98 118 90 213 306 
675 724 780 787 860 897 916 2,179 2,673 
Investment expenses12 12 11 9 14 12 12 35 38 
Net investment income, pre-tax663 712 769 778 846 885 904 2,144 2,635 
Income taxes106 118 129 133 148 158 162 353 468 
Net investment income, after-tax$557 $594 $640 $645 $698 $727 $742 $1,791 $2,167 
Effective tax rate16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %16.5 %17.8 %
Average invested assets (1)$88,740$89,536$91,591$93,603$94,677$95,402$97,736$90,048$96,042
Average yield pre-tax (1)3.0 %3.2 %3.4 %3.3 %3.6 %3.7 %3.7 %3.2 %3.7 %
Average yield after-tax2.5 %2.7 %2.8 %2.8 %2.9 %3.0 %3.0 %2.7 %3.0 %

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

26
The Travelers Companies, Inc.
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity
image2a.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Net realized investment gains (losses)
Fixed maturities$(11)$(22)$(36)$(27)$(40)$(35)$(17)$(69)$(92)
Equity securities 18 (19)(16)28 79 (28)53 (17)104 
Other (1)6 (13)(12)(4)(2)19 (8)13 
Realized investment gains (losses) before tax6 (35)(65)(11)35 (65)55 (94)25 
Related taxes1 (6)(15)(4)8 (14)13 (20)7 
Net realized investment gains (losses)$5 $(29)$(50)$(7)$27 $(51)$42 $(74)$18 
Gross investment gains$46 $17 $9 $33 $85 $7 $85 $72 $177 
Gross investment losses before impairments(39)(52)(73)(34)(47)(72)(25)(164)(144)
Net investment gains (losses) before impairments7 (35)(64)(1)38 (65)60 (92)33 
Net impairment (charges) recoveries(1)— (1)(10)(3)— (5)(2)(8)
Net realized investment gains (losses) before tax6 (35)(65)(11)35 (65)55 (94)25 
Related taxes1 (6)(15)(4)8 (14)13 (20)7 
Net realized investment gains (losses)$5 $(29)$(50)$(7)$27 $(51)$42 $(74)$18 
($ in millions)March 31,
2023		June 30,
2023		September 30,
2023		December 31,
2023		March 31,
2024		June 30,
2024		September 30,
2024
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities$(4,909)$(5,811)$(8,204)$(3,969)$(4,718)$(5,042)$(2,672)
Other (3)(4)(2)(1)(2)(1)— 
Unrealized investment gains (losses) before tax(4,912)(5,815)(8,206)(3,970)(4,720)(5,043)(2,672)
Related taxes (1,044)(1,239)(1,740)(841)(999)(1,067)(561)
Balance, end of period$(3,868)$(4,576)$(6,466)$(3,129)$(3,721)$(3,976)$(2,111)




27
The Travelers Companies, Inc.
Reinsurance Recoverables
image2a.gif
($ in millions)September 30, 2024December 31, 2023
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$4,026 $3,895 
Gross structured settlements (2)2,642 2,707 
Mandatory pools and associations (3) 1,527 1,659 
Gross reinsurance recoverables (4)8,195 8,261 
Allowance for estimated uncollectible reinsurance (5)(120)(118)
Net reinsurance recoverables$8,075 $8,143 
(1)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:
ReinsurerA.M. Best Rating of Group's Predominant ReinsurerSeptember 30, 2024
Swiss Re GroupA+ second highest of 16 ratings$688 
Berkshire HathawayA++ highest of 16 ratings493 
Munich Re GroupA+ second highest of 16 ratings350 
Axa GroupA+ second highest of 16 ratings173 
Hannover GroupA+ second highest of 16 ratings138 
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, over half is attributable to 10 reinsurer groups.


(2)  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 amounts due from the life insurance company related to the structured settlement are included in both the claims and claim adjustment expense reserves and reinsurance recoverables in the Company’s consolidated balance sheet, as the Company retains the 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 included in gross structured settlements is as follows:
GroupA.M. Best Rating of Group's Predominant InsurerSeptember 30, 2024
Fidelity & Guaranty Life Group  A third highest of 16 ratings$652 
Genworth Financial Group B- eighth highest of 16 ratings322 
John Hancock Group A+ second highest of 16 ratings223 
Symetra Financial CorporationA third highest of 16 ratings204 
Brighthouse Financial, Inc.A third highest of 16 ratings181 

(3)  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. 

(4) Of the total reinsurance recoverables at September 30, 2024, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.85 billion, or 88%, were rated by A.M. Best Company.  The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better.  The remaining 12% of reinsurance recoverables comprised the following:  6% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools and 5% were balances from other companies not rated by A.M. Best Company.  Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors.  For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. 
28
The Travelers Companies, Inc.
Net Reserves for Losses and Loss Adjustment Expense
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period$39,027 $39,279 $39,908 $40,690 $40,833 $41,391 $42,050 $39,027 $40,833 
Incurred2,858 3,251 3,467 2,924 3,282 3,422 3,645 9,576 10,349 
Paid(2,620)(2,657)(2,637)(2,832)(2,697)(2,758)(2,786)(7,914)(8,241)
Foreign exchange and other14 35 (48)51 (27)(5)51 1 19 
End of period$39,279 $39,908 $40,690 $40,833 $41,391 $42,050 $42,960 $40,690 $42,960 
Bond & Specialty Insurance
Beginning of period$4,167 $4,318 $4,448 $4,423 $4,521 $4,626 $4,773 $4,167 $4,521 
Incurred376 363 345 384 424 468 438 1,084 1,330 
Paid(238)(256)(335)(325)(306)(320)(332)(829)(958)
Foreign exchange and other13 23 (35)39 (13)(1)52 1 38 
End of period$4,318 $4,448 $4,423 $4,521 $4,626 $4,773 $4,931 $4,423 $4,931 
Personal Insurance
Beginning of period$7,568 $7,567 $8,287 $8,579 $8,363 $8,561 $9,099 $7,568 $8,363 
Incurred2,672 3,565 3,279 2,518 2,896 3,430 2,857 9,516 9,183 
Paid(2,674)(2,863)(2,967)(2,755)(2,678)(2,885)(2,948)(8,504)(8,511)
Foreign exchange and other1 18 (20)21 (20)(7)10 (1)(17)
End of period$7,567 $8,287 $8,579 $8,363 $8,561 $9,099 $9,018 $8,579 $9,018 
Total
Beginning of period$50,762 $51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $50,762 $53,717 
Incurred5,906 7,179 7,091 5,826 6,602 7,320 6,940 20,176 20,862 
Paid(5,532)(5,776)(5,939)(5,912)(5,681)(5,963)(6,066)(17,247)(17,710)
Foreign exchange and other28 76 (103)111 (60)(13)113 1 40 
End of period$51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $56,909 $53,692 $56,909 
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos$— $— $284 $— $— $— $242 $284 $242 
All other(19)101 (21)(56)— (34)(151)61 (185)
Total Business Insurance (1)(19)101 263 (56)— (34)91 345 57 
Bond & Specialty Insurance(58)(119)(72)(36)(24)(24)(36)(249)(84)
Personal Insurance(28)(42)(37)(40)(67)(172)(181)(107)(420)
Total$(105)$(60)$154 $(132)$(91)$(230)$(126)$(11)$(447)
(1)  Excludes accretion of discount.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
29
The Travelers Companies, Inc.
Asbestos Reserves
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Asbestos reserves
Beginning reserves:
Gross$1,674 $1,620 $1,552 $1,848 $1,768 $1,686 $1,612 $1,674 $1,768 
Ceded(369)(348)(334)(415)(390)(382)(368)(369)(390)
Net1,305 1,272 1,218 1,433 1,378 1,304 1,244 1,305 1,378 
Incurred losses and loss expenses:
Gross— — 374 — — — 279 374 279 
Ceded— — (90)— — — (37)(90)(37)
Paid loss and loss expenses:
Gross54 69 77 81 82 74 77 200 233 
Ceded(21)(13)(10)(25)(8)(13)(11)(44)(32)
Foreign exchange and other:
Gross— 1 (1)1 — — 1 — 1 
Ceded— 1 (1)— — 1 (1)— — 
Ending reserves:
Gross1,620 1,552 1,848 1,768 1,686 1,612 1,815 1,848 1,815 
Ceded(348)(334)(415)(390)(382)(368)(395)(415)(395)
Net$1,272 $1,218 $1,433 $1,378 $1,304 $1,244 $1,420 $1,433 $1,420 





















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
image2a.gif
($ in millions)September 30,
2024		December 31,
2023
Debt
Short-term debt
Commercial paper$100 $100 
Total short-term debt100 100 
Long-term debt
7.75% Senior notes due April 15, 2026200 200 
7.625% Junior subordinated debentures due December 15, 2027125 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 
4.30% Senior notes due August 25, 2045 (1)400 400 
8.50% Junior subordinated debentures due December 15, 204556 56 
3.75% Senior notes due May 15, 2046 (1)500 500 
8.312% Junior subordinated debentures due July 1, 204673 73 
4.00% Senior notes due May 30, 2047 (1)700 700 
4.05% Senior notes due March 7, 2048 (1)500 500 
4.10% Senior notes due March 4, 2049 (1)500 500 
2.55% Senior notes due April 27, 2050 (1)500 500 
3.05% Senior notes due June 8, 2051 (1)750 750 
5.45% Senior notes due May 25, 2053 (1)750 750 
Total long-term debt8,004 8,004 
Unamortized fair value adjustment34 35 
Unamortized debt issuance costs(105)(108)
7,933 7,931 
Total debt8,033 8,031 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)29,807 28,050 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$37,840 $36,081 
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)21.2 %22.3 %
(1)  Redeemable anytime with “make-whole” premium. 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
31
The Travelers Companies, Inc.
Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation
image2a.gif
($ in millions)September 30,
2024 (1)		December 31,
2023
Statutory capital and surplus$26,191 $25,114 
GAAP adjustments
Goodwill and intangible assets3,649 3,657 
Investments(2,340)(3,455)
Noninsurance companies(4,596)(5,183)
Deferred acquisition costs3,449 3,161 
Deferred federal income tax(239)84 
Current federal income tax(1)(6)
Reinsurance recoverables55 55 
Furniture, equipment & software952 982 
Agents balances208 189 
Other368 323 
Total GAAP adjustments1,505 (193)
GAAP shareholders’ equity$27,696 $24,921 

(1) Estimated and Preliminary
 




















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
32
The Travelers Companies, Inc.
Statement of Cash Flows
image2a.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Cash flows from operating activities
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized investment (gains) losses(6)35 65 11 (35)65 (55)94 (25)
Depreciation and amortization204 179 169 170 196 182 174 552 552 
Deferred federal income tax expense (benefit)32 (96)(43)(56)42 (85)(59)(107)(102)
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 1,790 4,585 5,166 
Equity in income from other investments(30)(55)(59)(13)(68)(89)(63)(144)(220)
Premiums receivable(557)(832)(33)81 (557)(664)234 (1,422)(987)
Reinsurance recoverables(24)(17)(163)141 33 (34)74 (204)73 
Deferred acquisition costs(1,629)(1,722)(1,728)(1,610)(1,776)(1,807)(1,856)(5,079)(5,439)
Claims and claim adjustment expense reserves381 1,413 1,259 (210)928 1,384 755 3,053 3,067 
Unearned premium reserves893 1,042 882 (227)457 788 659 2,817 1,904 
Other(689)97 689 550 (583)(275)962 97 104 
Net cash provided by operating activities1,012 1,549 3,046 2,104 1,458 1,677 3,875 5,607 7,010 
Cash flows from investing activities
Proceeds from maturities of fixed maturities1,538 1,493 1,878 1,462 1,709 2,464 1,817 4,909 5,990 
Proceeds from sales of investments:
Fixed maturities2,364 751 1,504 362 942 308 225 4,619 1,475 
Equity securities28 62 27 21 21 41 31 117 93 
Real estate investments— — — — — — 64 — 64 
Other investments64 36 66 89 55 55 101 166 211 
Purchases of investments:
Fixed maturities(4,335)(3,328)(5,391)(2,636)(3,738)(4,349)(4,273)(13,054)(12,360)
Equity securities(34)(16)(30)(25)(26)(21)(33)(80)(80)
Real estate investments(14)(12)(20)(21)(13)(11)(10)(46)(34)
Other investments(139)(116)(120)(120)(90)(95)(98)(375)(283)
Net sales (purchases) of short-term securities228 (646)(600)(646)454 330 (1,126)(1,018)(342)
Securities transactions in the course of settlement(35)50 45 (143)111 247 24 60 382 
Acquisition, net of cash acquired— — — — (381)(1)— — (382)
Other(120)(131)(84)(127)(81)(111)(113)(335)(305)
Net cash used in investing activities(455)(1,857)(2,725)(1,784)(1,037)(1,143)(3,391)(5,037)(5,571)

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The Travelers Companies, Inc.
Statement of Cash Flows (Continued)
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($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations(398)(396)(100)(64)(250)(249)(248)(894)(747)
Treasury stock acquired - net employee share-based compensation(62)— (1)(1)(110)(1)(1)(63)(112)
Dividends paid to shareholders(215)(232)(229)(232)(229)(244)(238)(676)(711)
Issuance of debt— 738 — — — — — 738 — 
Issuance of common stock - employee share options82 28 7 24 190 22 33 117 245 
Net cash provided by (used in) financing activities(593)138 (323)(273)(399)(472)(454)(778)(1,325)
Effect of exchange rate changes on cash4 8 (10)10 (5)— 13 2 8 
Net increase (decrease) in cash(32)(162)(12)57 17 62 43 (206)122 
Cash at beginning of period799 767 605 593 650 667 729 799 650 
Cash at end of period$767 $605 $593 $650 $667 $729 $772 $593 $772 
Supplemental disclosure of cash flow information
Income taxes paid (received)$(16)$155 $13 $49 $24 $831 $92 $152 $947 
Interest paid$60 $115 $59 $136 $60 $135 $60 $234 $255 
Supplemental disclosure of noncash financing activities
Issuance of common stock - net share settlement of employee options$— $— $— $— $28 $2 $2 $— $32 

34
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below.  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. 
 
Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders’ equity, 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.
 
Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable.  Segment income (loss) is determined in the same manner as core income (loss) on a segment basis.  Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions.  Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies.  Core income (loss) per share is core 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 realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders’ equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)).  Adjusted average shareholders’ equity is (a) the sum of total adjusted 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.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of
($ in millions)March 31, 2023June 30, 2023September 30, 2023December 31, 2023March 31, 2024June 30, 2024September 30, 2024
Shareholders’ equity$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 $27,696 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,868 4,576 6,466 3,129 3,721 3,976 2,111 
Net realized investment (gains) losses, net of tax(5)24 74 81 (27)24 (18)
Adjusted shareholders’ equity$26,915 $26,455 $26,518 $28,131 $28,716 $28,862 $29,789 
Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented.  Core return on equity is the ratio of annualized core 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 designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure.  Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount.  Their effects are included in net and core 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.  The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company.  Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2024 ranges from $20 million to $30 million of losses before reinsurance and taxes.
 
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 core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.
 
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The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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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 premiums 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 and other, 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.  Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.
 
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.
 
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 net unrealized investment gains and losses, net of tax, included in shareholders’ equity, 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, net of tax, included in shareholders’ equity is the ratio of debt to total capital excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity.  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 capital and surplus represents the excess of an insurance company’s admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.
 
Travelers has organized its businesses into the following reportable business segments:
 
Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s.  Business Insurance is organized as follows:  Select Accounts; Middle Market including Commercial Accounts, Construction, Technology & Life Sciences, Public Sector Services, Oil & Gas, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited.  Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company’s asbestos and environmental liabilities, and the assumed reinsurance and certain other runoff operations.
 
Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches.  The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers’ compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.
 
Bond & Specialty Insurance’s surety business in Brazil and Colombia is conducted through Junto Holding Brasil S.A. (Junto) and Junto Holding Latam S.A. in Brazil. The Company owns 49.5% of both Junto, a market leader in surety coverages in Brazil, and Junto Holding Latam S.A., which owns a majority interest in JMalucelli Travelers Seguros S.A., a Colombian surety provider. These joint venture investments are accounted for using the equity method and are included in “other investments” on the consolidated balance sheet.
 
Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

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