0000086312false00000863122024-07-192024-07-19


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _______________________________________
 FORM 8-K
 ______________________________________

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): July 19, 2024
 _______________________________________________
The Travelers Companies, Inc.
(Exact name of registrant as specified in its charter)
 _______________________________________________
 
Minnesota 001-10898 41-0518860
(State or other jurisdiction of
incorporation)		 (Commission File Number) (I.R.S. Employer
Identification No.)
485 Lexington Avenue
New York, New York 10017
(Address of principal executive offices) (Zip Code)
 
(917) 778-6000
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 _________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, without par value TRV New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Item 2.02.  Results of Operations and Financial Condition.
 
On July 19, 2024, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended June 30, 2024, and the availability of the Company’s second quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.
 
As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01.  Financial Statements and Exhibits.
 
(d)                                 Exhibits.
 
Exhibit No. Description
99.1 
   
99.2 
101.1Pursuant to Rule 406 of Regulation S-T, the cover page to this Current Report on Form 8-K is formatted in Inline XBRL.
104.1Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101.1.)




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, The Travelers Companies, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
  THE TRAVELERS COMPANIES, INC.
   
   
Date: July 19, 2024By:/S/   CHRISTINE K. KALLA
  Name: Christine K. Kalla
  Executive Vice President and General Counsel



g34651mo25i001b12.gif                                            Exhibit 99.1
                                            The Travelers Companies, Inc.
                            485 Lexington Avenue
                                    New York, NY 10017-2630
                                        www.travelers.com
NYSE: TRV
Travelers Reports Strong Second Quarter and Year-to-Date Results
Excellent Underlying Results, Net Favorable Prior Year Reserve Development and Higher Net Investment Income More Than Offset Significant Catastrophe Losses from Severe Convective Storms
Second Quarter 2024 Net Income per Diluted Share of $2.29 and Return on Equity of 8.6%
Second Quarter 2024 Core Income per Diluted Share of $2.51 and Core Return on Equity of 8.1%
•Second quarter net income of $534 million and core income of $585 million.
•Consolidated combined ratio improved 6.3 points from the prior year quarter to 100.2%.
•Catastrophe losses of $1.509 billion pre-tax, compared to $1.481 billion pre-tax in the prior year quarter.
•Underlying combined ratio improved 3.4 points from the prior year quarter to an excellent 87.7%.
•Net favorable prior year reserve development of $230 million pre-tax, with favorable development in all three segments.
•Record net written premiums of $11.115 billion, up 8%, with growth in all three segments.
•Net investment income increased 24% pre-tax over the prior year quarter, primarily due to strong fixed income returns and growth in fixed maturity investments.
•Total capital of $498 million returned to shareholders, including $253 million of share repurchases.
•Book value per share of $109.08, up 14% over June 30, 2023; adjusted book value per share of $126.52, up 10% over June 30, 2023.
•Board of Directors declares regular cash dividend of $1.05 per share.

New York, July 19, 2024 — The Travelers Companies, Inc. today reported net income of $534 million, or $2.29 per diluted share, for the quarter ended June 30, 2024, compared to a net loss of $14 million, or $0.07 per diluted share, in the prior year quarter. Core income in the current quarter was $585 million, or $2.51 per diluted share, compared to $15 million, or $0.06 per diluted share, in the prior year quarter. Core income increased primarily due to a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. Net realized investment losses in the current quarter were $65 million pre-tax ($51 million after-tax), compared to net realized investment losses of $35 million pre-tax ($29 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.
Consolidated Highlights
($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)Three Months Ended June 30,Six Months Ended June 30,
20242023Change20242023Change
Net written premiums$11,115 $10,318 8 %$21,297 $19,714 8 %
Total revenues$11,283 $10,098 12 $22,511 $19,802 14 
Net income (loss)$534 $(14)NM$1,657 $961 72 
per diluted share$2.29 $(0.07)NM$7.09 $4.09 73 
Core income$585 $15 NM$1,681 $985 71 
per diluted share$2.51 $0.06 NM$7.20 $4.19 72 
Diluted weighted average shares outstanding231.5 229.7 1 231.8 233.3 (1)
Combined ratio100.2 %106.5 %(6.3)pts97.1 %101.1 %(4.0)pts
Underlying combined ratio87.7 %91.1 %(3.4)pts87.7 %90.8 %(3.1)pts
Return on equity8.6 %(0.2)%8.8 pts13.3 %8.6 %4.7 pts
Core return on equity8.1 %0.2 %7.9 pts11.8 %7.4 %4.4 pts
As ofChange From
June 30,
2024		December 31,
2023		June 30,
2023		December 31,
2023		June 30,
2023
Book value per share$109.08 $109.19 $95.46 — %14 %
Adjusted book value per share126.52 122.90 115.45 3 %10 %
NM = Not meaningful.
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
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“We are pleased to have generated a strong bottom line result in a quarter that included a record level of severe convective storms across the United States,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Core income of $585 million, or $2.51 per diluted share, benefited from excellent underlying results, favorable net prior year reserve development and higher investment income.
“Underlying underwriting income of $1.2 billion pre-tax was up 55% over the prior year quarter, driven by record net earned premiums of $10.2 billion and a consolidated underlying combined ratio that improved 3.4 points to an excellent 87.7%. Net earned premiums were higher in all three of our business segments. The underlying combined ratio in our Business Insurance segment was an excellent 89.2%; the underlying combined ratio in our Bond & Specialty Insurance business improved 1.7 points to a very strong 86.1%; and the underlying combined ratio in Personal Insurance improved by nearly eight points to a terrific 86.3%. Our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $727 million, driven by strong and reliable returns from our growing fixed income portfolio and higher returns from our non-fixed income portfolio. We returned $498 million of excess capital to our shareholders this quarter, including $253 million of share repurchases.
“Through terrific marketplace execution across all three segments, we grew net written premiums in the quarter by 8% to $11.1 billion. In Business Insurance, we grew net written premiums by 7% to $5.5 billion. Renewal premium change in the segment remained very strong at 10.1%, while retention remained high at 85% and new business increased 9% to a record $732 million. In Bond & Specialty Insurance, we grew net written premiums by 8% to more than $1 billion, with excellent retention of 90% in our high-quality management liability business. In our industry-leading surety business, we grew net written premiums by 11%. Given the attractive returns, we are very pleased with the strong production results in both of our commercial business segments. In Personal Insurance, continued strong pricing drove 9% growth in net written premiums, with growth of 10% in Auto and 8% in Home.
“We continue to be very confident in the outlook for our business. Our results for the first half of the year include strong premium growth, excellent underlying underwriting profitability, record operating cash flow and steadily rising investment returns in our growing fixed income portfolio. With a strong and diversified business and balance sheet, we delivered 13.6% core return on equity over the last twelve months, despite elevated industrywide catastrophe losses. We also continue to grow adjusted book value per share, while making important investments in our business and returning substantial excess capital to shareholders. With this momentum and plenty of opportunity ahead of us, we remain well positioned for success this year and beyond.”

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Consolidated Results
Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain (loss):$(65)$(640)$575 $512 $(273)$785 
Underwriting gain (loss) includes:
Net favorable prior year reserve development230 60 170 321 165 156 
Catastrophes, net of reinsurance(1,509)(1,481)(28)(2,221)(2,016)(205)
Net investment income885 712 173 1,731 1,375 356 
Other income (expense), including interest expense
(99)(85)(14)(187)(193)6 
Core income (loss) before income taxes721 (13)734 2,056 909 1,147 
Income tax expense (benefit)136 (28)164 375 (76)451 
Core income585 15 570 1,681 985 696 
Net realized investment losses after income taxes(51)(29)(22)(24)(24)— 
Net income (loss)$534 $(14)$548 $1,657 $961 $696 
Combined ratio100.2 %106.5 %(6.3)pts97.1 %101.1 %(4.0)pts
Impact on combined ratio
Net favorable prior year reserve development(2.2)pts(0.7)pts(1.5)pts(1.5)pts(0.9)pts(0.6)pts
Catastrophes, net of reinsurance14.7 pts16.1 pts(1.4)pts10.9 pts11.2 pts(0.3)pts
Underlying combined ratio87.7 %91.1 %(3.4)pts87.7 %90.8 %(3.1)pts
Net written premiums
Business Insurance$5,539$5,1757 %$11,135$10,3328 %
Bond & Specialty Insurance1,0409648 1,9831,8507 
Personal Insurance4,5364,1799 8,1797,5329 
Total$11,115$10,3188 %$21,297$19,7148 %
Second Quarter 2024 Results
(All comparisons vs. second quarter 2023, unless noted otherwise)
Net income of $534 million increased $548 million, due to higher core income, partially offset by higher net realized investment losses. Core income of $585 million increased $570 million, primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $65 million pre-tax ($51 million after-tax), compared to net realized investment losses of $35 million pre-tax ($29 million after-tax) in the prior year quarter.
Combined ratio:
•The combined ratio of 100.2% improved 6.3 points due to an improvement in the underlying combined ratio (3.4 points), higher net favorable prior year reserve development (1.5 points) and lower catastrophe losses as a percentage of net earned premiums (1.4 points).
•The underlying combined ratio improved 3.4 points to 87.7%. See below for further details by segment.
•Net favorable prior year reserve development occurred in all segments. See below for further details by segment.
•Catastrophe losses primarily resulted from numerous severe wind and hail storms in multiple states.

Net investment income of $885 million pre-tax ($727 million after-tax) increased 24%. Income from the fixed income investment portfolio increased over the prior year quarter due to a higher average yield and growth in fixed maturity investments. Income from the non-fixed income investment portfolio increased over the prior year quarter primarily
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due to higher private equity partnership returns. Non-fixed income returns are generally reported on a one-quarter lagged basis and directionally follow the broader equity markets.

Net written premiums of $11.115 billion increased 8%. See below for further details by segment.

Year-to-Date 2024 Results
(All comparisons vs. year-to-date 2023, unless noted otherwise)
 
Net income of $1.657 billion increased $696 million, due to higher core income. Core income of $1.681 billion increased $696 million, primarily due to a higher underlying underwriting gain, higher net investment income and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the prior year included a one-time tax benefit of $211 million due to the expiration of the statute of limitations with respect to a tax item. Net realized investment losses were $30 million pre-tax ($24 million after-tax), compared to net realized investment losses of $29 million pre-tax ($24 million after-tax) in the prior year.

Combined ratio:
 
•The combined ratio of 97.1% improved 4.0 points due to an improvement in the underlying combined ratio (3.1 points), higher net favorable prior year reserve development (0.6 points) and lower catastrophe losses as a percentage of net earned premiums (0.3 points).

•The underlying combined ratio of 87.7% improved 3.1 points. See below for further details by segment.

•Net favorable prior year reserve development occurred in all segments. See below for further details by segment.

•Catastrophe losses included the second quarter events described above, as well as severe wind and hail storms in the central and eastern regions of the United States in the first three months of 2024.
Net investment income of $1.731 billion pre-tax ($1.425 billion after-tax) increased 26% driven by the same factors described above for the second quarter of 2024.

Net written premiums of $21.297 billion increased 8%. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $24.862 billion decreased slightly from year-end 2023, primarily due to higher net unrealized investment losses, common share repurchases and dividends to shareholders, largely offset by net income of $1.657 billion. Net unrealized investment losses included in shareholders’ equity were $5.043 billion pre-tax ($3.976 billion after-tax), compared to $3.970 billion pre-tax ($3.129 billion after-tax) at year-end 2023. The increase in net unrealized investment losses was driven primarily by higher interest rates. Book value per share of $109.08 was comparable with year-end 2023. Adjusted book value per share of $126.52, which excludes net unrealized investment gains (losses), increased 3% from year-end 2023.

The Company repurchased 1.2 million shares during the second quarter at an average price of $211.24 per share for a total cost of $253 million. At June 30, 2024, the Company had $5.540 billion of capacity remaining under its share repurchase authorizations approved by the Board of Directors. At the end of the quarter, statutory capital and surplus was $25.210 billion, and the ratio of debt-to-capital was 24.4%. The ratio of debt-to-capital excluding after-tax net unrealized investment gains (losses) included in shareholders’ equity was 21.8%, within the Company’s target range of 15% to 25%.

The Board of Directors declared a regular quarterly dividend of $1.05 per share. The dividend is payable September 30, 2024, to shareholders of record at the close of business on September 10, 2024.
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Business Insurance Segment Financial Results
 Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain (loss):$193 $(14)$207 $527 $259 $268 
Underwriting gain (loss) includes:
Net favorable (unfavorable) prior year reserve development34 (101)135 34 (82)116 
Catastrophes, net of reinsurance
(389)(396)7 (598)(595)(3)
Net investment income632 509 123 1,241 982 259 
Other income (expense) (10)(10)— (19)(43)24 
Segment income before income taxes815 485 330 1,749 1,198 551 
Income tax expense159 83 76 329 40 289 
Segment income$656 $402 $254 $1,420 $1,158 $262 
Combined ratio96.1 %100.1 %(4.0)pts94.7 %96.9 %(2.2)pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development(0.6)pts2.2 pts(2.8)pts(0.3)pts0.9 pts(1.2)pts
Catastrophes, net of reinsurance
7.5 pts8.5 pts(1.0)pts5.8 pts6.5 pts(0.7)pts
Underlying combined ratio89.2 %89.4 %(0.2)pts89.2 %89.5 %(0.3)pts
Net written premiums by market
Domestic
Select Accounts$975 $883 10 %$1,949 $1,791 9 %
Middle Market2,769 2,618 6 5,982 5,544 8 
National Accounts312 277 13 639 571 12 
National Property and Other912 862 6 1,554 1,452 7 
Total Domestic4,968 4,640 7 10,124 9,358 8 
International571 535 7 1,011 974 4 
Total$5,539 $5,175 7 %$11,135 $10,332 8 %
 
Second Quarter 2024 Results
(All comparisons vs. second quarter 2023, unless noted otherwise)
 
Segment income for Business Insurance was $656 million after-tax, an increase of $254 million. Segment income increased primarily due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year quarter, higher net investment income and a higher underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 96.1% improved 4.0 points due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year quarter (2.8 points), lower catastrophe losses (1.0 points) and an improvement in the underlying combined ratio (0.2 points).
•The underlying combined ratio remained excellent at 89.2%.
•Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations’ workers’ compensation product line for multiple accident years, partially offset by higher than expected loss experience in the general liability product line for recent accident years, driven by excess coverages, as well as an addition to reserves related to run-off.

Net written premiums of $5.539 billion increased 7%, reflecting strong renewal premium change and retention, as well as higher levels of new business.

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Year-to-Date 2024 Results
(All comparisons vs. year-to-date 2023, unless noted otherwise)
 
Segment income for Business Insurance was $1.420 billion after-tax, an increase of $262 million. Segment income increased primarily due to higher net investment income and net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year period, partially offset by a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the prior year period included a one-time tax benefit of $171 million due to the expiration of the statute of limitations with respect to a tax item.
 
Combined ratio:

•The combined ratio of 94.7% improved 2.2 points due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year period (1.2 points), lower catastrophe losses as a percentage of net earned premiums (0.7 points) and an improvement in the underlying combined ratio (0.3 points).
•The underlying combined ratio remained excellent at 89.2%.

•Net favorable prior year reserve development was primarily driven by the same factors described above for the second quarter of 2024.

Net written premiums of $11.135 billion increased 8%, reflecting the same factors described above for the second quarter of 2024.

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Bond & Specialty Insurance Segment Financial Results
Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023 Change
Underwriting gain:$115 $205 $(90)$259 $376 $(117)
Underwriting gain includes:
Net favorable prior year reserve development24 119 (95)48 177 (129)
Catastrophes, net of reinsurance(40)(21)(19)(45)(26)(19)
Net investment income94 78 16 184 151 33 
Other income5 6 (1)11 10 1 
Segment income before income taxes214 289 (75)454 537 (83)
Income tax expense44 59 (15)89 100 (11)
Segment income$170 $230 $(60)$365 $437 $(72)
Combined ratio87.7 %77.1 %10.6 pts86.1 %78.5 %7.6 pts
Impact on combined ratio
Net favorable prior year reserve development(2.5)pts(13.0)pts10.5 pts(2.5)pts(9.9)pts7.4 pts
Catastrophes, net of reinsurance4.1 pts2.3 pts1.8 pts2.3 pts1.5 pts0.8 pts
Underlying combined ratio86.1 %87.8 %(1.7)pts86.3 %86.9 %(0.6)pts
Net written premiums
Domestic
Management Liability$586 $541 8 %$1,129 $1,052 7 %
Surety325 293 11 621 550 13 
Total Domestic911 834 9 1,750 1,602 9 
International129 130 (1)233 248 (6)
Total$1,040 $964 8 %$1,983 $1,850 7 %

Second Quarter 2024 Results
(All comparisons vs. second quarter 2023, unless noted otherwise)
 
Segment income for Bond & Specialty Insurance was $170 million after-tax, a decrease of $60 million. Segment income decreased primarily due to lower net favorable prior year reserve development and higher catastrophe losses, partially offset by a higher underlying underwriting gain and higher net investment income. The underlying underwriting gain benefited from higher business volumes.
Combined ratio:

•The combined ratio of 87.7% increased 10.6 points due to lower net favorable prior year reserve development (10.5 points) and higher catastrophe losses (1.8 points), partially offset by an improvement in the underlying combined ratio (1.7 points).

•The underlying combined ratio improved 1.7 points to a very strong 86.1%.

•Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations’ fidelity and surety product lines for recent accident years.

Net written premiums of $1.040 billion increased 8%, reflecting strong production in both surety and management liability.

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Year-to-Date 2024 Results
(All comparisons vs. year-to-date 2023, unless noted otherwise)
 
Segment income for Bond & Specialty Insurance was $365 million after-tax, a decrease of $72 million. Segment income decreased primarily due to lower net favorable prior year reserve development and higher catastrophe losses, partially offset by higher net investment income and a higher underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the prior year period included a one-time tax benefit of $9 million due to the expiration of the statute of limitations with respect to a tax item.

Combined ratio:

•The combined ratio of 86.1% increased 7.6 points due to lower net favorable prior year reserve development (7.4 points) and higher catastrophe losses (0.8 points), partially offset by an improvement in the underlying combined ratio (0.6 points).

•The underlying combined ratio improved 0.6 points to a very strong 86.3%.

•Net favorable prior year reserve development was primarily driven by the same factors described above for the second quarter of 2024.

Net written premiums of $1.983 billion increased 7%, reflecting the same factors described above for the second quarter of 2024.

Personal Insurance Segment Financial Results
Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting loss:$(373)$(831)$458 $(274)$(908)$634 
Underwriting loss includes:
Net favorable prior year reserve development172 42 130 239 70 169 
Catastrophes, net of reinsurance(1,080)(1,064)(16)(1,578)(1,395)(183)
Net investment income159 125 34 306 242 64 
Other income16 21 (5)37 39 (2)
Segment income (loss) before income taxes(198)(685)487 69 (627)696 
Income tax expense (benefit)(45)(147)102 2 (172)174 
Segment income (loss)$(153)$(538)$385 $67 $(455)$522 
Combined ratio108.5 %122.0 %(13.5)pts102.8 %112.0 %(9.2)pts
Impact on combined ratio
Net favorable prior year reserve development(4.2)pts(1.2)pts(3.0)pts(2.9)pts(1.0)pts(1.9)pts
Catastrophes, net of reinsurance26.4 pts29.1 pts(2.7)pts19.5 pts19.5 pts— pts
Underlying combined ratio86.3 %94.1 %(7.8)pts86.2 %93.5 %(7.3)pts
Net written premiums
Domestic
Automobile$2,001 $1,823 10 %$3,860 $3,477 11 %
Homeowners and Other2,347 2,173 8 3,982 3,738 7 
Total Domestic4,348 3,996 9 7,842 7,215 9 
International188 183 3 337 317 6 
Total$4,536 $4,179 9 %$8,179 $7,532 9 %

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Second Quarter 2024 Results
(All comparisons vs. second quarter 2023, unless noted otherwise)

Segment loss for Personal Insurance was $153 million after-tax, compared with a segment loss of $538 million in the prior year quarter. The improvement in segment loss was primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 108.5% improved 13.5 points due to an improvement in the underlying combined ratio (7.8 points), higher net favorable prior year reserve development (3.0 points) and lower catastrophe losses as a percentage of net earned premiums (2.7 points).

•The underlying combined ratio of 86.3% improved 7.8 points, reflecting improvement in both Automobile and Homeowners and Other.

•Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations in both the homeowners and other and automobile product lines for recent accident years.

Net written premiums of $4.536 billion increased 9%, reflecting strong renewal premium change in both Domestic Automobile and Homeowners and Other.

Year-to-Date 2024 Results
(All comparisons vs. year-to-date 2023, unless noted otherwise)
 
Segment income for Personal Insurance was $67 million after-tax, compared with a segment loss of $455 million in 2023. Segment income increased primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the prior year period included a one-time tax benefit of $31 million due to the expiration of the statute of limitations with respect to a tax item.

Combined ratio:

•The combined ratio of 102.8% improved 9.2 points due to an improvement in the underlying combined ratio (7.3 points) and higher net favorable prior year reserve development (1.9 points).

•The underlying combined ratio of 86.2% improved 7.3 points, reflecting improvement in both Automobile and Homeowners and Other.

•Net favorable prior year reserve development was primarily driven by the same factors described above for the second quarter of 2024.

Net written premiums of $8.179 billion increased 9%, reflecting the same factor described above for the second quarter of 2024.


Financial Supplement and Conference Call

The information in this press release should be read in conjunction with the financial supplement that is available on our website at Travelers.com. Travelers management will discuss the contents of this release and other relevant topics via webcast at 9 a.m. Eastern (8 a.m. Central) on Friday, July 19, 2024. Investors can access the call via webcast at investor.travelers.com or by dialing 1.888.440.6281 within the United States or 1.646.960.0218 outside the United States. Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the Company’s website.

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Following the live event, replays will be available via webcast for one year at investor.travelers.com and by telephone for 30 days by dialing 1.800.770.2030 within the United States or 1.647.362.9199 outside the United States. All callers should use conference ID 5449478.

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of more than $41 billion in 2023. For more information, visit Travelers.com.

Travelers may use its website and/or social media outlets, such as Facebook and X, as distribution channels of material Company information. Financial and other important information regarding the Company is routinely accessible through and posted on our website at investor.travelers.com, our Facebook page at facebook.com/travelers and our X account (@Travelers) at twitter.com/travelers. In addition, you may automatically receive email alerts and other information about Travelers when you enroll your email address by visiting the Email Notifications section at investor.travelers.com.

Travelers is organized 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.

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 and the Republic of Ireland, as well as Brazil through a joint venture, in each case utilizing various degrees of financially-based underwriting approaches.

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. Personal Insurance’s primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.
 * * * * *
Forward-Looking Statements

This press release contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “ensures,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements include, among other things, the Company’s statements about:

•the Company’s outlook, the impact of trends on its business and its future results of operations and financial condition;
•the impact of legislative or regulatory actions or court decisions;
•share repurchase plans;
•future pension plan contributions;
•the sufficiency of the Company’s reserves, including asbestos;
•the impact of emerging claims issues as well as other insurance and non-insurance litigation;
•the cost and availability of reinsurance coverage;
•catastrophe losses and modeling;
•the impact of investment, economic and underwriting market conditions, including interest rates and inflation;
•the Company’s approach to managing its investment portfolio;
•the impact of changing climate conditions;
•strategic and operational initiatives to improve profitability and competitiveness;
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•the Company’s competitive advantages and innovation agenda, including executing on that agenda with respect to artificial intelligence;
•the Company’s cybersecurity policies and practices;
•new product offerings;
•the impact of developments in the tort environment;
•the impact of developments in the geopolitical environment; and
•the impact of the Company’s acquisition of Corvus Insurance Holdings, Inc.

The Company cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following:

Insurance-Related Risks

•high levels of catastrophe losses;
•actual claims may exceed the Company’s claims and claim adjustment expense reserves, or the estimated level of claims and claim adjustment expense reserves may increase, including as a result of, among other things, changes in the legal/tort, regulatory and economic environments, including increased inflation;
•the Company’s potential exposure to asbestos and environmental claims and related litigation;
•the Company is exposed to, and may face adverse developments involving, mass tort claims; and
•the effects of emerging claim and coverage issues on the Company’s business are uncertain, and court decisions or legislative changes that take place after the Company issues its policies can result in an unexpected increase in the number of claims.

Financial, Economic and Credit Risks

•a period of financial market disruption or an economic downturn;
•the Company’s investment portfolio is subject to credit and interest rate risk, and may suffer reduced or low returns or material realized or unrealized losses;
•the Company is exposed to credit risk related to reinsurance and structured settlements, and reinsurance coverage may not be available to the Company;
•the Company is exposed to credit risk in certain of its insurance operations and with respect to certain guarantee or indemnification arrangements that it has with third parties;
•a downgrade in the Company’s claims-paying and financial strength ratings; and
•the Company’s insurance subsidiaries may be unable to pay dividends to the Company’s holding company in sufficient amounts.

Business and Operational Risks

•the intense competition that the Company faces, including with respect to attracting and retaining employees, and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which it operates;
•disruptions to the Company’s relationships with its independent agents and brokers or the Company’s inability to manage effectively a changing distribution landscape;
•the Company’s efforts to develop new products or services, expand in targeted markets, improve business processes and workflows or make acquisitions may not be successful and may create enhanced risks;
•the Company's pricing and capital models may provide materially different indications than actual results;
•loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company’s products;
•the Company is subject to additional risks associated with its business outside the United States; and
•future pandemics (including new variants of COVID-19).
Technology and Intellectual Property Risks

•as a result of cyber attacks (the risk of which could be exacerbated by geopolitical tensions) or otherwise, the Company may experience difficulties with technology, data and network security or outsourcing relationships;
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•the Company’s dependence on effective information technology systems and on continuing to develop and implement improvements in technology, including with respect to artificial intelligence; and
•the Company may be unable to protect and enforce its own intellectual property or may be subject to claims for infringing the intellectual property of others.
Regulatory and Compliance Risks

•changes in regulation, including higher tax rates; and
•the Company's compliance controls may not be effective.
In addition, the Company’s share repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels appropriate for the Company’s business operations, changes in levels of written premiums, funding of the Company’s qualified pension plan, capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions, changes in tax laws (including the Inflation Reduction Act of 2022) and other factors.
Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 15, 2024, as updated by our periodic filings with the SEC.

GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

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. Reconciliations of these measures to the most comparable GAAP measures also follow.

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.

RECONCILIATION OF NET INCOME TO CORE INCOME AND CERTAIN OTHER NON-GAAP MEASURES

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.

12

Reconciliation of Net Income (Loss) to Core Income (Loss) less Preferred Dividends
Three Months Ended June 30,Six Months Ended June 30,Twelve Months Ended June 30,
($ in millions, after-tax)20242023202420232024
Net income (loss)$534 $(14)$1,657 $961 $3,687 
Adjustments:
Net realized investment losses51 29 24 24 81 
Core income$585 $15 $1,681 $985 $3,768 

Three Months Ended June 30,Six Months Ended June 30,
($ in millions, pre-tax)2024202320242023
Net income (loss)$656 $(48)$2,026 $880 
Adjustments:
Net realized investment losses65 35 30 29 
Core income (loss)$721 $(13)$2,056 $909 
 Twelve Months Ended December 31,Average Annual
($ in millions, after-tax)202320222021202020192005 - 2018
Net income$2,991 $2,842 $3,662 $2,697 $2,622 $3,035 
Less: Loss from discontinued operations— — — — — (31)
Income from continuing operations2,991 2,842 3,662 2,697 2,622 3,066 
Adjustments:
Net realized investment (gains) losses81 156 (132)(11)(85)(41)
Impact of changes in tax laws and/or tax rates (1) (2)— — (8)— — 9 
Core income3,072 2,998 3,522 2,686 2,537 3,034 
Less: Preferred dividends— — — — — 2 
Core income, less preferred dividends$3,072 $2,998 $3,522 $2,686 $2,537 $3,032 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Reconciliation of Net Income (Loss) per Share to Core Income per Share on a Diluted Basis
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Diluted income (loss) per share    
Net income (loss)$2.29 $(0.07)$7.09 $4.09 
Adjustments:
Net realized investment losses, after-tax0.22 0.13 0.11 0.10 
Core income$2.51 $0.06 $7.20 $4.19 
Reconciliation of Segment Income (Loss) to Total Core Income
Three Months Ended June 30,Six Months Ended June 30,
($ in millions, after-tax)2024202320242023
Business Insurance$656 $402 $1,420 $1,158 
Bond & Specialty Insurance170 230 365 437 
Personal Insurance(153)(538)67 (455)
Total segment income673 94 1,852 1,140 
Interest Expense and Other(88)(79)(171)(155)
Total core income$585 $15 $1,681 $985 
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RECONCILIATION OF SHAREHOLDERS’ EQUITY TO ADJUSTED SHAREHOLDERS’ EQUITY AND CALCULATION OF RETURN ON EQUITY AND CORE RETURN ON EQUITY

Adjusted shareholders’ equity is shareholders’ equity excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity, net realized investment gains (losses), net of tax, for the period presented, the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)), preferred stock and discontinued operations.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of June 30,
($ in millions)20242023
Shareholders’ equity$24,862 $21,855 
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity3,976 4,576 
Net realized investment losses, net of tax24 24 
Adjusted shareholders’ equity$28,862 $26,455 
As of December 31,Average Annual
($ in millions)202320222021202020192005 - 2018
Shareholders’ equity$24,921 $21,560 $28,887 $29,201 $25,943 $24,659 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,129 4,898 (2,415)(4,074)(2,246)(1,232)
Net realized investment (gains) losses, net of tax81 156 (132)(11)(85)(41)
Impact of changes in tax laws and/or tax rates (1) (2)— — (8)— — 20 
Preferred stock— — — — — (45)
Loss from discontinued operations— — — — — 31 
Adjusted shareholders’ equity$28,131 $26,614 $26,332 $25,116 $23,612 $23,392 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Return on equity is the ratio of annualized net income (loss) less preferred dividends to average shareholders’ equity for the periods presented. Core return on equity is the ratio of annualized core income (loss) less preferred dividends 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.

Average shareholders’ equity is (a) the sum of total shareholders’ equity excluding preferred stock 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 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.
Calculation of Return on Equity and Core Return on Equity
Three Months Ended June 30,Six Months Ended June 30,Twelve Months Ended June 30,
($ in millions, after-tax)20242023202420232024
Annualized net income (loss)$2,134 $(56)$3,313 $1,922 $3,687 
Average shareholders’ equity24,942 22,453 24,957 22,380 23,320 
Return on equity8.6 %(0.2)%13.3 %8.6 %15.8 %
Annualized core income$2,341 $57 $3,362 $1,969 $3,768 
Adjusted average shareholders’ equity28,817 26,690 28,600 26,688 27,728 
Core return on equity8.1 %0.2 %11.8 %7.4 %13.6 %

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 Twelve Months Ended 
December 31,		Average Annual
($ in millions, after-tax)202320222021202020192005 - 2018
Net income, less preferred dividends$2,991 $2,842 $3,662 $2,697 $2,622 $3,033 
Average shareholders’ equity22,031 23,384 28,735 26,892 24,922 24,677 
Return on equity13.6 %12.2 %12.7 %10.0 %10.5 %12.3 %
Core income, less preferred dividends$3,072 $2,998 $3,522 $2,686 $2,537 $3,032 
Adjusted average shareholders’ equity26,772 26,588 25,718 23,790 23,335 23,401 
Core return on equity11.5 %11.3 %13.7 %11.3 %10.9 %13.0 %

RECONCILIATION OF NET INCOME (LOSS) TO UNDERWRITING GAIN EXCLUDING CERTAIN ITEMS

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. Underwriting gain, excluding the impact of catastrophes and net favorable (unfavorable) prior year loss reserve development, is the underwriting gain adjusted to exclude claims and claim adjustment expenses, reinstatement premiums and assessments related to catastrophes and loss reserve development related to time periods prior to the current year. In the opinion of the Company’s management, this measure is meaningful to users of the financial statements to understand the Company’s periodic earnings and the variability of earnings caused by the unpredictable nature (i.e., the timing and amount) of catastrophes and loss reserve development. This measure is also referred to as underlying underwriting gain, underlying underwriting margin, underlying underwriting income or underlying underwriting result.

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 (loss) 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.

15

Reconciliation of Net Income (Loss) to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended June 30,Six Months Ended June 30,
($ in millions, after-tax, except as noted)2024202320242023
Net income (loss)$534 $(14)$1,657 $961 
Net realized investment losses51 29 24 24 
Core income585 15 1,681 985 
Net investment income(727)(594)(1,425)(1,151)
Other (income) expense, including interest expense84 70 158 158 
Underwriting income (loss)(58)(509)414 (8)
Income tax expense (benefit) on underwriting results(7)(131)98 (265)
Pre-tax underwriting income (loss)(65)(640)512 (273)
Pre-tax impact of net favorable prior year reserve development(230)(60)(321)(165)
Pre-tax impact of catastrophes1,509 1,481 2,221 2,016 
Pre-tax underlying underwriting income$1,214 $781 $2,412 $1,578 
Reconciliation of Net Income (Loss) to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
 Three Months Ended June 30,Six Months Ended June 30,
($ in millions, after-tax)2024202320242023
Net income (loss)$534 $(14)$1,657 $961 
Net realized investment losses51 29 24 24 
Core income585 15 1,681 985 
Net investment income(727)(594)(1,425)(1,151)
Other (income) expense, including interest expense84 70 158 158 
Underwriting income (loss)(58)(509)414 (8)
Impact of net favorable prior year reserve development(182)(47)(253)(130)
Impact of catastrophes1,192 1,171 1,755 1,593 
Underlying underwriting income$952 $615 $1,916 $1,455 
 Twelve Months Ended December 31,
($ in millions, after-tax)202320222021202020192018201720162015201420132012
Net income$2,991 $2,842 $3,662 $2,697 $2,622 $2,523 $2,056 $3,014 $3,439 $3,692 $3,673 $2,473 
Net realized investment (gains) losses81 156 (132)(11)(85)(93)(142)(47)(2)(51)(106)(32)
Impact of changes in tax laws and/or tax rates (1) (2)
— — (8)— — — 129 — — — — — 
Core income3,072 2,998 3,522 2,686 2,537 2,430 2,043 2,967 3,437 3,641 3,567 2,441 
Net investment income(2,436)(2,170)(2,541)(1,908)(2,097)(2,102)(1,872)(1,846)(1,905)(2,216)(2,186)(2,316)
Other (income) expense, including interest expense337 277 235 232 214 248 179 78 193 159 61 171 
Underwriting income973 1,105 1,216 1,010 654 576 350 1,199 1,725 1,584 1,442 296 
Impact of net (favorable) unfavorable prior year reserve development(113)(512)(424)(276)47 (409)(378)(510)(617)(616)(552)(622)
Impact of catastrophes2,361 1,480 1,459 1,274 699 1,355 1,267 576 338 462 387 1,214 
Underlying underwriting income$3,221 $2,073 $2,251 $2,008 $1,400 $1,522 $1,239 $1,265 $1,446 $1,430 $1,277 $888 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

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COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING COMBINED RATIO
 
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 earnings release, 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 earnings release 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 earnings release 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 earnings release, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income, billing and policy fees and other, to net earned premiums.

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

Underlying combined ratio represents the combined ratio excluding the impact of net prior year reserve development and catastrophes. The underlying combined ratio is an indicator of the Company’s underwriting discipline and underwriting profitability for the current accident year.

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

17

Calculation of the Combined Ratio
Three Months Ended June 30,Six Months Ended June 30,
($ in millions, pre-tax)2024202320242023
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses$7,373 $7,227 $14,029 $13,186 
Less:
Policyholder dividends12 10 24 22 
Allocated fee income42 40 81 82 
Loss ratio numerator$7,319 $7,177 $13,924 $13,082 
Underwriting expense ratio
Amortization of deferred acquisition costs$1,678 $1,519 $3,376 $2,981 
General and administrative expenses (G&A)1,478 1,308 2,884 2,575 
Less:
Non-insurance G&A106 92 208 187 
Allocated fee income73 66 143 130 
Billing and policy fees and other30 28 60 56 
Expense ratio numerator$2,947 $2,641 $5,849 $5,183 
Earned premium$10,243 $9,216 $20,369 $18,070 
Combined ratio (1)
Loss and loss adjustment expense ratio71.4 %77.9 %68.4 %72.4 %
Underwriting expense ratio28.8 %28.6 %28.7 %28.7 %
Combined ratio100.2 %106.5 %97.1 %101.1 %
Impact on combined ratio:
Net favorable prior year reserve development(2.2)%(0.7)%(1.5)%(0.9)%
Catastrophes, net of reinsurance14.7 %16.1 %10.9 %11.2 %
Underlying combined ratio87.7 %91.1 %87.7 %90.8 %
(1)  For purposes of computing ratios, 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. 

RECONCILIATION OF BOOK VALUE PER SHARE AND SHAREHOLDERS’ EQUITY TO CERTAIN NON-GAAP MEASURES
 
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. Tangible book value per share is adjusted book value per share excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding. In the opinion of the Company’s management, tangible book value per share is useful in an analysis of a property casualty company’s book value on a nominal basis as it removes certain effects of purchase accounting (i.e., goodwill and other intangible assets), in addition to the effect of changing prices on invested assets.

18

Reconciliation of Shareholders’ Equity to Tangible Shareholders’ Equity, Excluding Net Unrealized Investment Losses, Net of Tax and Calculation of Book Value Per Share, Adjusted Book Value Per Share and Tangible Book Value Per Share
 As of
($ in millions, except per share amounts)June 30,
2024		December 31,
2023		June 30,
2023
Shareholders’ equity$24,862 $24,921 $21,855 
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity(3,976)(3,129)(4,576)
Shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity28,838 28,050 26,431 
Less:
Goodwill4,250 3,976 3,975 
Other intangible assets371 277 283 
Impact of deferred tax on other intangible assets(86)(69)(67)
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity$24,303 $23,866 $22,240 
Common shares outstanding227.9 228.2 228.9 
Book value per share$109.08 $109.19 $95.46 
Adjusted book value per share126.52 122.90 115.45 
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity106.62 104.57 97.14 

RECONCILIATION OF TOTAL CAPITALIZATION TO TOTAL CAPITALIZATION EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES), NET OF TAX
 
Total capitalization is the sum of total shareholders’ equity and debt. Debt-to-capital ratio excluding net unrealized gains (losses) on investments, net of tax, included in shareholders’ equity, is the ratio of debt to total capitalization excluding the after-tax impact of net unrealized investment gains and losses 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.
 As of
($ in millions)June 30,
2024		December 31,
2023
Debt    $8,032 $8,031 
Shareholders’ equity  24,862 24,921 
Total capitalization  
32,894 32,952 
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity(3,976)(3,129)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity$36,870 $36,081 
Debt-to-capital ratio  24.4 %24.4 %
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity21.8 %22.3 %
 

19

RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)

 As of June 30,
($ in millions)20242023
Invested assets$89,511 $82,973 
Less: Net unrealized investment losses, pre-tax(5,043)(5,815)
Invested assets excluding net unrealized investment losses$94,554 $88,788 

  As of December 31,
($ in millions)202320222021202020192018201720162015201420132012
Invested assets$88,810 $80,454 $87,375 $84,423 $77,884 $72,278 $72,502 $70,488 $70,470 $73,261 $73,160 $73,838 
Less: Net unrealized investment gains (losses), pre-tax(3,970)(6,220)3,060 5,175 2,853 (137)1,414 1,112 1,974 3,008 2,030 4,761 
Invested assets excluding net unrealized investment gains (losses)$92,780 $86,674 $84,315 $79,248 $75,031 $72,415 $71,088 $69,376 $68,496 $70,253 $71,130 $69,077 

OTHER DEFINITIONS

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.

For Business Insurance and Bond & Specialty Insurance, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes. For Personal Insurance, retention is the ratio of the expected number of renewal policies that will be retained throughout the annual policy period to the number of available renewal base policies. For all of the segments, renewal rate change represents the estimated change in average premium on policies that renew, excluding exposure changes. Exposure is the measure of risk used in the pricing of an insurance product. The change in exposure is the amount of change in premium on policies that renew attributable to the change in portfolio risk. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. New business is the amount of written premium related to new policyholders and additional products sold to existing policyholders. These are operating statistics, which are in part dependent on the use of estimates and are therefore subject to change. For Business Insurance, retention, renewal premium change and new business exclude National Accounts. For Bond & Specialty Insurance, retention, renewal premium change and new business exclude surety and other products that are generally sold on a non-recurring, project specific basis. For each of the segments, production statistics referred to herein are domestic only unless otherwise indicated.

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.

Holding company liquidity is the total funds available at the holding company level to fund general corporate purposes, primarily the payment of shareholder dividends and debt service. These funds consist of total cash, short-term invested assets and other readily marketable securities held by the holding company.

For a glossary of other financial terms used in this press release, we refer you to the Company’s most recent annual report on Form 10-K filed with the SEC on February 15, 2024, and subsequent periodic filings with the SEC.
 
###
 
Contacts
Media:
Institutional Investors:
Patrick LinehanAbbe Goldstein
917.778.6267917.778.6825


20
The Travelers Companies, Inc.
Financial Supplement - Second Quarter 2024
Exhibit 99.2 image2.gif
Page Number
Consolidated Results
Financial Highlights1
Reconciliation to Net Income (Loss) and Earnings Per Share2
Statement of Income (Loss)3
Net Income (Loss) by Major Component and Combined Ratio4
Core Income5
Selected Statistics - Property and Casualty Operations6
Written and Earned Premiums - Property and Casualty Operations7
Business Insurance
Segment Income 8
Segment Income by Major Component and Combined Ratio9
Selected Statistics10
Net Written Premiums11
Bond & Specialty Insurance
Segment Income12
Segment Income by Major Component and Combined Ratio13
Selected Statistics14
Net Written Premiums15
Personal Insurance
Segment Income (Loss)16
Segment Income (Loss) by Major Component and Combined Ratio17
Selected Statistics18
Net Written Premiums19
Selected Statistics - Automobile20
Selected Statistics - Homeowners and Other21
Supplemental Detail
Interest Expense and Other22
Consolidated Balance Sheet23
Investment Portfolio24
Investment Portfolio - Fixed Maturities Data25
Investment Income26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity27
Reinsurance Recoverables28
Net Reserves for Losses and Loss Adjustment Expense29
Asbestos Reserves30
Capitalization31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation32
Statement of Cash Flows33
Statement of Cash Flows (continued)34
Glossary of Financial Measures and Description of Reportable Business Segments35-36
 The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.
Index
The Travelers Companies, Inc.
Financial Highlights
image2.gif
($ and shares in millions, except for per share data)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $961 $1,657 
Net income (loss) per share:
Basic$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $4.14 $7.19 
Diluted$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $4.09 $7.09 
Core income$970 $15 $454 $1,633 $1,096 $585 $985 $1,681 
Core income per share:
Basic$4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $4.24 $7.29 
Diluted$4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $4.19 $7.20 
Return on equity17.5 %(0.2)%7.7 %29.0 %18.0 %8.6 %8.6 %13.3 %
Core return on equity14.5 %0.2 %6.9 %24.0 %15.4 %8.1 %7.4 %11.8 %
Total assets, at period end$118,352 $120,573 $121,384 $125,978 $127,410 $129,315 $120,573 $129,315 
Total equity, at period end$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 $21,855 $24,862 
Book value per share, at period end$99.80 $95.46 $87.47 $109.19 $109.28 $109.08 $95.46 $109.08 
Less: Net unrealized investment gains (losses), net of tax(16.75)(19.99)(28.31)(13.71)(16.25)(17.44)(19.99)(17.44)
Adjusted book value per share, at period end$116.55 $115.45 $115.78 $122.90 $125.53 $126.52 $115.45 $126.52 
Weighted average number of common shares outstanding (basic)231.7 229.7 228.8 228.4 229.0 228.6 230.6 228.8 
Weighted average number of common shares outstanding and common stock equivalents (diluted)234.4 229.7 231.1 231.1 232.0 231.5 233.3 231.8 
Common shares outstanding at period end231.0 228.9 228.4 228.2 229.0 227.9 228.9 227.9 
Common stock dividends declared$218 $233 $232 $232 $232 $245 $451 $477 
Common stock repurchased:
Under Board of Directors authorization
Shares2.2 2.2 0.6 0.4 1.2 1.1 4.4 2.3 
Cost$400 $400 $100 $65 $250 $250 $800 $500 
Other
Shares0.3 — — — 0.6 0.1 0.3 0.7 
Cost$62 $— $1 $1 $138 $3 $62 $141 




See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
1
The Travelers Companies, Inc.
Reconciliation to Net Income (Loss) and Earnings per Share
image2.gif

($ and shares in millions, except earnings per share)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Net income (loss)
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $961 $1,657 
Adjustments:
Net realized investment (gains) losses, after-tax(5)29 50 7 (27)51 24 24 
Core income $970 $15 $454 $1,633 $1,096 $585 $985 $1,681 
Basic earnings per share
Net income (loss)$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $4.14 $7.19 
Adjustments:
Net realized investment (gains) losses, after-tax(0.02)0.13 0.22 0.02 (0.12)0.22 0.10 0.10 
Core income $4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $4.24 $7.29 
Diluted earnings per share
Net income (loss)$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $4.09 $7.09 
Adjustments:
Net realized investment (gains) losses, after-tax(0.02)0.13 0.21 0.02 (0.11)0.22 0.10 0.11 
Core income $4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $4.19 $7.20 
Adjustments to net income (loss) and weighted average shares for net income (loss) EPS calculations: (1)
Basic and Diluted1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Net income (loss), as reported$975 $(14)$404 $1,626 $1,123 $534 $961 $1,657 
Participating share-based awards - allocated income(7)(1)(3)(12)(8)(5)(7)(13)
Net income (loss) available to common shareholders - basic and diluted$968 $(15)$401 $1,614 $1,115 $529 $954 $1,644 
Common Shares
Basic
Weighted average shares outstanding231.7 229.7 228.8 228.4 229.0 228.6 230.6 228.8 
Diluted
Weighted average shares outstanding231.7 229.7 228.8 228.4 229.0 228.6 230.6 228.8 
Weighted average effects of dilutive securities - stock options and performance shares2.7 — 2.3 2.7 3.0 2.9 2.7 3.0 
Diluted weighted average shares outstanding234.4 229.7 231.1 231.1 232.0 231.5 233.3 231.8 
(1) Adjustments to net income and weighted average shares for net income EPS calculations can generally be used for the core income EPS calculations. The net loss EPS calculation for 2Q 2023 excluded the allocation of $2 million of undistributed loss to participating share-based awards, since such allocation would result in anti-dilution of basic and diluted earnings per share. In addition, the net loss EPS calculation for 2Q 2023 excluded the incremental impact of 2.5 million stock options and performance shares, since the impact of these potential shares of common stock and their effects on income was anti-dilutive. The core income EPS calculation for 2Q 2023 included these items.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
2
The Travelers Companies, Inc.
Statement of Income (Loss) - Consolidated
image2.gif



($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Revenues
Premiums$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $18,070 $20,369 
Net investment income663 712 769 778 846 885 1,375 1,731 
Fee income106 106 112 109 109 115 212 224 
Net realized investment gains (losses)6 (35)(65)(11)35 (65)(29)(30)
Other revenues75 99 101 78 112 105 174 217 
Total revenues9,704 10,098 10,635 10,927 11,228 11,283 19,802 22,511 
Claims and expenses
Claims and claim adjustment expenses5,959 7,227 7,149 5,880 6,656 7,373 13,186 14,029 
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 2,981 3,376 
General and administrative expenses1,267 1,308 1,312 1,289 1,406 1,478 2,575 2,884 
Interest expense88 92 98 98 98 98 180 196 
Total claims and expenses8,776 10,146 10,163 8,908 9,858 10,627 18,922 20,485 
Income (loss) before income taxes928 (48)472 2,019 1,370 656 880 2,026 
Income tax expense (benefit)(47)(34)68 393 247 122 (81)369 
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $961 $1,657 
Other statistics
Effective tax rate on net investment income16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %16.3 %17.7 %
Net investment income (after-tax)$557 $594 $640 $645 $698 $727 $1,151 $1,425 
Catastrophes, net of reinsurance:
Pre-tax$535 $1,481 $850 $125 $712 $1,509 $2,016 $2,221 
After-tax$422 $1,171 $669 $99 $563 $1,192 $1,593 $1,755 
Prior year reserve development - favorable (unfavorable):
Pre-tax$105 $60 $(154)$132 $91 $230 $165 $321 
After-tax$83 $47 $(122)$105 $71 $182 $130 $253 





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
image2.gif
($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Underwriting gain (loss)$501 $(509)$(107)$1,088 $472 $(58)$(8)$414 
Net investment income557 594 640 645 698 727 1,151 1,425 
Other income (expense), including interest expense(88)(70)(79)(100)(74)(84)(158)(158)
Core income 970 15 454 1,633 1,096 585 985 1,681 
Net realized investment gains (losses)5 (29)(50)(7)27 (51)(24)(24)
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $961 $1,657 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio66.7 %77.9 %73.0 %58.4 %65.2 %71.4 %72.4 %68.4 %
Underwriting expense ratio28.7 %28.6 %28.0 %27.4 %28.7 %28.8 %28.7 %28.7 %
Combined ratio95.4 %106.5 %101.0 %85.8 %93.9 %100.2 %101.1 %97.1 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(1.2)%(0.7)%1.6 %(1.3)%(0.9)%(2.2)%(0.9)%(1.5)%
Catastrophes, net of reinsurance6.0 %16.1 %8.8 %1.2 %7.1 %14.7 %11.2 %10.9 %
Underlying combined ratio90.6 %91.1 %90.6 %85.9 %87.7 %87.7 %90.8 %87.7 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Billing and policy fees and other$28 $28 $28 $29 $30 $30 $56 $60 
Fee income:
Loss and loss adjustment expenses$42 $40 $42 $40 $39 $42 $82 $81 
Underwriting expenses64 66 70 69 70 73 130 143 
Total fee income$106 $106 $112 $109 $109 $115 $212 $224 
Non-insurance general and administrative expenses$95 $92 $99 $103 $102 $106 $187 $208 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Revenues
Premiums$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $18,070 $20,369 
Net investment income663 712 769 778 846 885 1,375 1,731 
Fee income106 106 112 109 109 115 212 224 
Other revenues75 99 101 78 112 105 174 217 
Total revenues
9,698 10,133 10,700 10,938 11,193 11,348 19,831 22,541 
Claims and expenses
Claims and claim adjustment expenses5,959 7,227 7,149 5,880 6,656 7,373 13,186 14,029 
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 2,981 3,376 
General and administrative expenses1,267 1,308 1,312 1,289 1,406 1,478 2,575 2,884 
Interest expense88 92 98 98 98 98 180 196 
Total claims and expenses
8,776 10,146 10,163 8,908 9,858 10,627 18,922 20,485 
Core income (loss) before income taxes922 (13)537 2,030 1,335 721 909 2,056 
Income tax expense (benefit)(48)(28)83 397 239 136 (76)375 
Core income $970 $15 $454 $1,633 $1,096 $585 $985 $1,681 
Other statistics
Effective tax rate on net investment income16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %16.3 %17.7 %
Net investment income (after-tax)$557 $594 $640 $645 $698 $727 $1,151 $1,425 
Catastrophes, net of reinsurance:
Pre-tax$535 $1,481 $850 $125 $712 $1,509 $2,016 $2,221 
After-tax$422 $1,171 $669 $99 $563 $1,192 $1,593 $1,755 
Prior year reserve development - favorable (unfavorable):
Pre-tax$105 $60 $(154)$132 $91 $230 $165 $321 
After-tax$83 $47 $(122)$105 $71 $182 $130 $253 









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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Statutory underwriting
Gross written premiums$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $21,254 $23,175 
Net written premiums$9,396 $10,318 $10,493 $9,994 $10,184 $11,115 $19,714 $21,299 
Net earned premiums$8,854 $9,216 $9,718 $9,973 $10,128 $10,243 $18,070 $20,371 
Losses and loss adjustment expenses5,906 7,179 7,091 5,826 6,602 7,320 13,085 13,922 
Underwriting expenses2,727 2,863 2,860 2,748 3,012 3,111 5,590 6,123 
Statutory underwriting gain (loss) 221 (826)(233)1,399 514 (188)(605)326 
Policyholder dividends12 10 14 13 12 12 22 24 
Statutory underwriting gain (loss) after policyholder dividends$209 $(836)$(247)$1,386 $502 $(200)$(627)$302 
Other statutory statistics
Reserves for losses and loss adjustment expenses$51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $52,643 $55,922 
Increase (decrease) in reserves$402 $1,479 $1,049 $25 $861 $1,344 $1,881 $2,205 
Statutory capital and surplus$23,689 $22,934 $23,267 $25,114 $25,329 $25,210 $22,934 $25,210 
Net written premiums/surplus (1)1.54:11.65:11.68:11.60:11.62:1 1.66:1 1.65:11.66:1

(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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Written premiums
Gross$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $21,254 $23,175 
Ceded(951)(589)(770)(461)(1,128)(750)(1,540)(1,878)
Net$9,396 $10,318 $10,493 $9,994 $10,182 $11,115 $19,714 $21,297 
Earned premiums
Gross$9,469 $9,866 $10,397 $10,678 $10,867 $11,083 $19,335 $21,950 
Ceded(615)(650)(679)(705)(741)(840)(1,265)(1,581)
Net$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $18,070 $20,369 






























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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Revenues
Premiums$4,477 $4,644 $4,956 $5,067 $5,160 $5,168 $9,121 $10,328 
Net investment income473 509 551 552 609 632 982 1,241 
Fee income99 98 102 101 101 105 197 206 
Other revenues47 67 71 47 77 77 114 154 
Total revenues
5,096 5,318 5,680 5,767 5,947 5,982 10,414 11,929 
Claims and expenses
Claims and claim adjustment expenses2,907 3,296 3,519 2,974 3,331 3,471 6,203 6,802 
Amortization of deferred acquisition costs742 773 820 838 864 861 1,515 1,725 
General and administrative expenses734 764 772 771 818 835 1,498 1,653 
Total claims and expenses
4,383 4,833 5,111 4,583 5,013 5,167 9,216 10,180 
Segment income before income taxes713 485 569 1,184 934 815 1,198 1,749 
Income tax expense (benefit)(43)83 101 227 170 159 40 329 
Segment income $756 $402 $468 $957 $764 $656 $1,158 $1,420 
Other statistics
Effective tax rate on net investment income15.8 %16.4 %16.8 %16.8 %17.4 %17.7 %16.1 %17.6 %
Net investment income (after-tax)$398 $426 $458 $459 $502 $521 $824 $1,023 
Catastrophes, net of reinsurance:
Pre-tax$199 $396 $203 $40 $209 $389 $595 $598 
After-tax$157 $313 $160 $32 $166 $307 $470 $473 
Prior year reserve development - favorable (unfavorable):
Pre-tax$19 $(101)$(263)$56 $— $34 $(82)$34 
After-tax$15 $(80)$(207)$44 $— $26 $(65)$26 












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
image2.gif


($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Underwriting gain (loss)$388 $(12)$22 $531 $274 $148 $376 $422 
Net investment income398 426 458 459 502 521 824 1,023 
Other income (expense)(30)(12)(12)(33)(12)(13)(42)(25)
Segment income$756 $402 $468 $957 $764 $656 $1,158 $1,420 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio63.8 %70.0 %70.0 %57.7 %63.6 %66.2 %66.9 %64.9 %
Underwriting expense ratio29.8 %30.1 %29.1 %28.8 %29.7 %29.9 %30.0 %29.8 %
Combined ratio93.6 %100.1 %99.1 %86.5 %93.3 %96.1 %96.9 %94.7 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(0.4)%2.2 %5.3 %(1.1)%— %(0.6)%0.9 %(0.3)%
Catastrophes, net of reinsurance4.4 %8.5 %4.1 %0.8 %4.1 %7.5 %6.5 %5.8 %
Underlying combined ratio89.6 %89.4 %89.7 %86.8 %89.2 %89.2 %89.5 %89.2 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Billing and policy fees and other$4 $4 $4 $4 $4 $4 $8 $8 
Fee income:
Loss and loss adjustment expenses$42 $40 $42 $40 $39 $42 $82 $81 
Underwriting expenses57 58 60 61 62 63 115 125 
Total fee income$99 $98 $102 $101 $101 $105 $197 $206 
Non-insurance general and administrative expenses$80 $77 $84 $84 $86 $87 $157 $173 
 
 
 


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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Statutory underwriting
Gross written premiums$5,828 $5,662 $5,685 $5,394 $6,383 $6,169 $11,490 $12,552 
Net written premiums$5,157 $5,175 $5,080 $5,018 $5,598 $5,539 $10,332 $11,137 
Net earned premiums$4,477 $4,644 $4,956 $5,067 $5,162 $5,168 $9,121 $10,330 
Losses and loss adjustment expenses2,858 3,251 3,467 2,924 3,282 3,422 6,109 6,704 
Underwriting expenses1,492 1,507 1,459 1,464 1,630 1,620 2,999 3,250 
Statutory underwriting gain (loss)127 (114)30 679 250 126 13 376 
Policyholder dividends8 7 8 8 8 7 15 15 
Statutory underwriting gain (loss) after policyholder dividends$119 $(121)$22 $671 $242 $119 $(2)$361 





























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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Net written premiums by market      
Domestic      
Select Accounts$908 $883 $824 $862 $974 $975 $1,791 $1,949 
Middle Market2,926 2,618 2,750 2,751 3,213 2,769 5,544 5,982 
National Accounts294 277 247 317 327 312 571 639 
National Property and Other590 862 874 682 642 912 1,452 1,554 
Total Domestic4,718 4,640 4,695 4,612 5,156 4,968 9,358 10,124 
International439 535 385 406 440 571 974 1,011 
Total$5,157 $5,175 $5,080 $5,018 $5,596 $5,539 $10,332 $11,135 
Net written premiums by product line      
Domestic      
Workers’ compensation$1,051 $852 $777 $812 $1,019 $847 $1,903 $1,866 
Commercial automobile851 830 835 830 964 923 1,681 1,887 
Commercial property693 988 968 845 763 1,054 1,681 1,817 
General liability866 744 829 825 965 809 1,610 1,774 
Commercial multi-peril1,241 1,227 1,240 1,292 1,416 1,345 2,468 2,761 
Other16 (1)46 8 29 (10)15 19 
Total Domestic4,718 4,640 4,695 4,612 5,156 4,968 9,358 10,124 
International439 535 385 406 440 571 974 1,011 
Total$5,157 $5,175 $5,080 $5,018 $5,596 $5,539 $10,332 $11,135 










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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Revenues
Premiums$875 $911 $935 $934 $956 $977 $1,786 $1,933 
Net investment income73 78 86 91 90 94 151 184 
Other revenues5 7 6 7 9 6 12 15 
Total revenues953 996 1,027 1,032 1,055 1,077 1,949 2,132 
Claims and expenses
Claims and claim adjustment expenses380 366 351 388 428 473 746 901 
Amortization of deferred acquisition costs160 168 173 172 182 183 328 365 
General and administrative expenses165 173 172 171 205 207 338 412 
Total claims and expenses705 707 696 731 815 863 1,412 1,678 
Segment income before income taxes248 289 331 301 240 214 537 454 
Income tax expense41 59 66 61 45 44 100 89 
Segment income$207 $230 $265 $240 $195 $170 $437 $365 
Other statistics
Effective tax rate on net investment income16.5 %17.0 %16.6 %17.9 %18.0 %18.2 %16.8 %18.1 %
Net investment income (after-tax)$61 $65 $71 $75 $74 $77 $126 $151 
Catastrophes, net of reinsurance:
Pre-tax$5 $21 $5 $6 $5 $40 $26 $45 
After-tax$4 $17 $4 $4 $4 $31 $21 $35 
Prior year reserve development - favorable:
Pre-tax$58 $119 $72 $36 $24 $24 $177 $48 
After-tax$46 $93 $57 $29 $19 $19 $139 $38 












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
image2.gif
($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Underwriting gain$143 $160 $190 $163 $116 $90 $303 $206 
Net investment income61 65 71 75 74 77 126 151 
Other income3 5 4 2 5 3 8 8 
Segment income$207 $230 $265 $240 $195 $170 $437 $365 
Combined ratio (1)
Loss and loss adjustment expense ratio43.0 %39.8 %36.9 %41.1 %44.4 %48.0 %41.4 %46.2 %
Underwriting expense ratio37.0 %37.3 %36.7 %36.2 %40.1 %39.7 %37.1 %39.9 %
Combined ratio80.0 %77.1 %73.6 %77.3 %84.5 %87.7 %78.5 %86.1 %
Impact on combined ratio:
Net favorable prior year reserve development(6.7)%(13.0)%(7.7)%(3.9)%(2.5)%(2.5)%(9.9)%(2.5)%
Catastrophes, net of reinsurance0.6 %2.3 %0.6 %0.6 %0.5 %4.1 %1.5 %2.3 %
Underlying combined ratio86.1 %87.8 %80.7 %80.6 %86.5 %86.1 %86.9 %86.3 %
(1)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Billing and policy fees and other$— $— $— $— $— $1 $— $1 
Non-insurance general and administrative expenses$1 $1 $2 $4 $3 $1 $2 $4 















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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Statutory underwriting      
Gross written premiums$1,010 $1,035 $1,082 $1,060 $1,076 $1,127 $2,045 $2,203 
Net written premiums$886 $964 $1,003 $989 $943 $1,040 $1,850 $1,983 
Net earned premiums$875 $911 $935 $934 $956 $977 $1,786 $1,933 
Losses and loss adjustment expenses376 363 345 384 424 468 739 892 
Underwriting expenses346 352 359 333 411 408 698 819 
Statutory underwriting gain153 196 231 217 121 101 349 222 
Policyholder dividends4 3 6 5 4 5 7 9 
Statutory underwriting gain after policyholder dividends$149 $193 $225 $212 $117 $96 $342 $213 
 




























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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Net written premiums by market
Domestic
Management Liability$511 $541 $551 $553 $543 $586 $1,052 $1,129 
Surety257 293 321 276 296 325 550 621 
Total Domestic768 834 872 829 839 911 1,602 1,750 
International118 130 131 160 104 129 248 233 
Total$886 $964 $1,003 $989 $943 $1,040 $1,850 $1,983 
Net written premiums by product line
Domestic
Fidelity & surety$318 $350 $385 $334 $356 $382 $668 $738 
General liability399 425 419 443 434 468 824 902 
Other51 59 68 52 49 61 110 110 
Total Domestic768 834 872 829 839 911 1,602 1,750 
International118 130 131 160 104 129 248 233 
Total$886 $964 $1,003 $989 $943 $1,040 $1,850 $1,983 


















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
image2.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Revenues
Premiums$3,502 $3,661 $3,827 $3,972 $4,010 $4,098 $7,163 $8,108 
Net investment income117 125 132 135 147 159 242 306 
Fee income7 8 10 8 8 10 15 18 
Other revenues23 25 24 24 26 22 48 48 
Total revenues3,649 3,819 3,993 4,139 4,191 4,289 7,468 8,480 
Claims and expenses
Claims and claim adjustment expenses2,672 3,565 3,279 2,518 2,897 3,429 6,237 6,326 
Amortization of deferred acquisition costs560 578 611 631 652 634 1,138 1,286 
General and administrative expenses359 361 359 338 375 424 720 799 
Total claims and expenses3,591 4,504 4,249 3,487 3,924 4,487 8,095 8,411 
Segment income (loss) before income taxes58 (685)(256)652 267 (198)(627)69 
Income tax expense (benefit)(25)(147)(63)132 47 (45)(172)2 
Segment income (loss)$83 $(538)$(193)$520 $220 $(153)$(455)$67 
Other statistics
Effective tax rate on net investment income16.3 %16.9 %17.2 %17.3 %17.7 %18.0 %16.6 %17.9 %
Net investment income (after-tax)$98 $103 $111 $111 $122 $129 $201 $251 
Catastrophes, net of reinsurance:
Pre-tax$331 $1,064 $642 $79 $498 $1,080 $1,395 $1,578 
After-tax$261 $841 $505 $63 $393 $854 $1,102 $1,247 
Prior year reserve development - favorable:
Pre-tax$28 $42 $37 $40 $67 $172 $70 $239 
After-tax$22 $34 $28 $32 $52 $137 $56 $189 












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
image2.gif

($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Underwriting gain (loss)$(30)$(657)$(319)$394 $82 $(296)$(687)$(214)
Net investment income98 103 111 111 122 129 201 251 
Other income15 16 15 15 16 14 31 30 
Segment income (loss)$83 $(538)$(193)$520 $220 $(153)$(455)$67 
Combined ratio (1)
Loss and loss adjustment expense ratio76.3 %97.4 %85.7 %63.4 %72.2 %83.7 %87.1 %78.0 %
Underwriting expense ratio25.2 %24.6 %24.3 %23.4 %24.7 %24.8 %24.9 %24.8 %
Combined ratio101.5 %122.0 %110.0 %86.8 %96.9 %108.5 %112.0 %102.8 %
Impact on combined ratio:
Net favorable prior year reserve development(0.8)%(1.2)%(1.0)%(1.1)%(1.6)%(4.2)%(1.0)%(2.9)%
Catastrophes, net of reinsurance9.4 %29.1 %16.8 %2.0 %12.4 %26.4 %19.5 %19.5 %
Underlying combined ratio92.9 %94.1 %94.2 %85.9 %86.1 %86.3 %93.5 %86.2 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Billing and policy fees and other$24 $24 $24 $25 $26 $25 $48 $51 
Fee income$7 $8 $10 $8 $8 $10 $15 $18 
Non-insurance general and administrative expenses$5 $4 $4 $6 $5 $6 $9 $11 


 







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
image2.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Statutory underwriting
Gross written premiums$3,509 $4,210 $4,496 $4,001 $3,851 $4,569 $7,719 $8,420 
Net written premiums$3,353 $4,179 $4,410 $3,987 $3,643 $4,536 $7,532 $8,179 
Net earned premiums$3,502 $3,661 $3,827 $3,972 $4,010 $4,098 $7,163 $8,108 
Losses and loss adjustment expenses2,672 3,565 3,279 2,518 2,896 3,430 6,237 6,326 
Underwriting expenses889 1,004 1,042 951 971 1,083 1,893 2,054 
Statutory underwriting gain (loss)$(59)$(908)$(494)$503 $143 $(415)$(967)$(272)
Policies in force (in thousands)
Automobile3,248 3,225 3,223 3,223 3,212 3,180 3,225 3,180 
Homeowners and Other6,355 6,361 6,348 6,290 6,235 6,167 6,361 6,167 




























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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Net written premiums by product line
Domestic
Automobile$1,654 $1,823 $2,022 $1,831 $1,859 $2,001 $3,477 $3,860 
Homeowners and Other1,565 2,173 2,216 1,995 1,635 2,347 3,738 3,982 
Total Domestic3,219 3,996 4,238 3,826 3,494 4,348 7,215 7,842 
International134 183 172 161 149 188 317 337 
Total$3,353 $4,179 $4,410 $3,987 $3,643 $4,536 $7,532 $8,179 































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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Statutory underwriting
Gross written premiums$1,751 $1,946 $2,142 $1,947 $1,970 $2,129 $3,697 $4,099 
Net written premiums$1,741 $1,939 $2,132 $1,937 $1,959 $2,120 $3,680 $4,079 
Net earned premiums$1,723 $1,789 $1,874 $1,944 $1,980 $2,026 $3,512 $4,006 
Losses and loss adjustment expenses1,406 1,540 1,525 1,602 1,430 1,532 2,946 2,962 
Underwriting expenses409 432 458 424 454 468 841 922 
Statutory underwriting gain (loss)$(92)$(183)$(109)$(82)$96 $26 $(275)$122 
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio81.7 %86.0 %81.4 %82.4 %72.2 %75.6 %83.9 %74.0 %
Underwriting expense ratio23.0 %22.4 %22.1 %21.2 %22.4 %22.3 %22.7 %22.3 %
Combined ratio104.7 %108.4 %103.5 %103.6 %94.6 %97.9 %106.6 %96.3 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development0.4 %0.2 %0.3 %0.4 %(2.3)%(1.5)%0.3 %(1.9)%
Catastrophes, net of reinsurance0.9 %4.7 %2.6 %0.5 %2.0 %4.2 %2.9 %3.1 %
Underlying combined ratio103.4 %103.5 %100.6 %102.7 %94.9 %95.2 %103.4 %95.1 %
Catastrophes, net of reinsurance:
Pre-tax$15 $85 $49 $10 $39 $85 $100 $124 
After-tax$11 $68 $38 $8 $31 $67 $79 $98 
Prior year reserve development - favorable (unfavorable):
Pre-tax$(7)$(4)$(5)$(8)$45 $30 $(11)$75 
After-tax$(6)$(2)$(4)$(6)$34 $26 $(8)$60 
Policies in force (in thousands)3,248 3,225 3,223 3,223 3,212 3,180 
Change from prior year quarter1.1 %(0.6)%(1.8)%(1.7)%(1.1)%(1.4)%
Change from prior quarter(0.9)%(0.7)%(0.1)%— %(0.3)%(1.0)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Billing and policy fees and other$14 $14 $14 $15 $15 $15 $28 $30 
Fee income$4 $4 $5 $4 $4 $5 $8 $9 


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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Statutory underwriting
Gross written premiums$1,758 $2,264 $2,354 $2,054 $1,881 $2,440 $4,022 $4,321 
Net written premiums$1,612 $2,240 $2,278 $2,050 $1,684 $2,416 $3,852 $4,100 
Net earned premiums$1,779 $1,872 $1,953 $2,028 $2,030 $2,072 $3,651 $4,102 
Losses and loss adjustment expenses1,266 2,025 1,754 916 1,466 1,898 3,291 3,364 
Underwriting expenses480 572 584 527 517 615 1,052 1,132 
Statutory underwriting gain (loss)$33 $(725)$(385)$585 $47 $(441)$(692)$(394)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio71.2 %108.2 %89.7 %45.2 %72.2 %91.6 %90.1 %82.0 %
Underwriting expense ratio27.3 %26.9 %26.5 %25.6 %26.9 %27.2 %27.1 %27.1 %
Combined ratio98.5 %135.1 %116.2 %70.8 %99.1 %118.8 %117.2 %109.1 %
Impact on combined ratio:
Net favorable prior year reserve development(2.0)%(2.4)%(2.1)%(2.4)%(1.1)%(6.8)%(2.2)%(4.0)%
Catastrophes, net of reinsurance17.8 %52.3 %30.3 %3.5 %22.6 %48.0 %35.4 %35.5 %
Underlying combined ratio82.7 %85.2 %88.0 %69.7 %77.6 %77.6 %84.0 %77.6 %
Catastrophes, net of reinsurance:
Pre-tax$316 $979 $593 $69 $459 $995 $1,295 $1,454 
After-tax$250 $773 $467 $55 $362 $787 $1,023 $1,149 
Prior year reserve development - favorable:
Pre-tax$35 $46 $42 $48 $22 $142 $81 $164 
After-tax$28 $36 $32 $38 $18 $111 $64 $129 
Policies in force (in thousands)6,355 6,361 6,348 6,290 6,235 6,167 
Change from prior year quarter1.1 %0.4 %(0.3)%(1.3)%(1.9)%(3.0)%
Change from prior quarter(0.3)%0.1 %(0.2)%(0.9)%(0.9)%(1.1)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Billing and policy fees and other$10 $10 $10 $10 $11 $10 $20 $21 
Fee income$3 $4 $5 $4 $4 $5 $7 $9 


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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Revenues
Other revenues$— $— $— $— $— $— $— $— 
Claims and expenses
Interest expense88 92 98 98 98 98 180 196 
General and administrative expenses9 10 9 9 8 12 19 20 
Total claims and expenses97 102 107 107 106 110 199 216 
Loss before income tax benefit(97)(102)(107)(107)(106)(110)(199)(216)
Income tax benefit(21)(23)(21)(23)(23)(22)(44)(45)
Loss$(76)$(79)$(86)$(84)$(83)$(88)$(155)$(171)




























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

22
The Travelers Companies, Inc.
Consolidated Balance Sheet
image2.gif
($ and shares in millions)June 30,
2024		December 31,
2023
Assets
Fixed maturities, available for sale, at fair value (amortized cost $84,231 and $81,781; allowance for expected credit losses of $1 and $5)
$79,188 $77,807 
Equity securities, at fair value (cost $539 and $553)
644 608 
Real estate investments956 959 
Short-term securities4,353 5,137 
Other investments4,370 4,299 
Total investments89,511 88,810 
Cash729 650 
Investment income accrued690 688 
Premiums receivable (net of allowance for expected credit losses of $69 and $69)
11,491 10,282 
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $117 and $118)
8,132 8,143 
Ceded unearned premiums1,445 1,150 
Deferred acquisition costs3,508 3,306 
Deferred taxes1,788 1,504 
Contractholder receivables (net of allowance for expected credit losses of $18 and $20)
3,274 3,249 
Goodwill4,250 3,976 
Other intangible assets371 277 
Other assets4,126 3,943 
Total assets$129,315 $125,978 
Liabilities
Claims and claim adjustment expense reserves$63,857 $61,627 
Unearned premium reserves22,090 20,872 
Contractholder payables3,292 3,269 
Payables for reinsurance premiums869 518 
Debt8,032 8,031 
Other liabilities6,313 6,740 
Total liabilities104,453 101,057 
Shareholders’ equity
Common stock (1,750.0 shares authorized; 227.9 and 228.2 shares issued and outstanding)
25,245 24,906 
Retained earnings46,773 45,591 
Accumulated other comprehensive loss(5,410)(4,471)
Treasury stock, at cost (562.2 and 559.2 shares)
(41,746)(41,105)
Total shareholders’ equity24,862 24,921 
Total liabilities and shareholders’ equity$129,315 $125,978 


23
The Travelers Companies, Inc.
Investment Portfolio
image2.gif
(at carrying value, $ in millions)June 30,
2024		Pre-tax Book
Yield (1)		December 31,
2023		Pre-tax Book
Yield (1)
Investment portfolio
Taxable fixed maturities$56,303 3.72 %$53,626 3.51 %
Tax-exempt fixed maturities22,885 2.96 %24,181 2.92 %
Total fixed maturities79,188 3.50 %77,807 3.33 %
Non-redeemable preferred stocks50 2.19 %48 2.18 %
Common stocks594 560 
Total equity securities644 608 
Real estate investments956 959 
Short-term securities4,353 5.46 %5,137 5.49 %
Private equities2,851 2,783 
Hedge funds210 219 
Real estate partnerships864 855 
Other investments445 442 
Total other investments4,370 4,299 
Total investments$89,511 $88,810 
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity$(3,976)$(3,129)

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





24
The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
image2.gif
(at carrying value, $ in millions)June 30,
2024		December 31,
2023
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies$5,940 $6,368 
Obligations of U.S. states and political subdivisions:
Pre-refunded975 966 
All other26,281 27,540 
Total27,256 28,506 
Debt securities issued by foreign governments880 1,006 
Mortgage-backed securities - principally obligations of U.S. Government agencies10,201 7,818 
Corporate and all other bonds34,911 34,109 
Total fixed maturities$79,188 $77,807 
Fixed Maturities
Quality Characteristics (1)
June 30, 2024December 31, 2023
Amount% of TotalAmount% of Total
Quality Ratings
Aaa$38,090 48.1 %$36,612 47.0 %
Aa15,045 19.0 15,797 20.3 
A15,414 19.5 14,715 18.9 
Baa9,686 12.2 9,701 12.5 
Total investment grade78,235 98.8 76,825 98.7 
Ba641 0.8 581 0.8 
B259 0.3 335 0.4 
Caa and lower53 0.1 66 0.1 
Total below investment grade953 1.2 982 1.3 
Total fixed maturities$79,188 100.0 %$77,807 100.0 %
Average weighted quality Aa2, AA Aa2, 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 purchases4.2 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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Gross investment income
Fixed maturities$575 $591 $631 $675 $692 $709 $1,166 $1,401 
Short-term securities47 55 67 72 70 70 102 140 
Other53 78 82 40 98 118 131 216 
675 724 780 787 860 897 1,399 1,757 
Investment expenses12 12 11 9 14 12 24 26 
Net investment income, pre-tax663 712 769 778 846 885 1,375 1,731 
Income taxes106 118 129 133 148 158 224 306 
Net investment income, after-tax$557 $594 $640 $645 $698 $727 $1,151 $1,425 
Effective tax rate16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %16.3 %17.7 %
Average invested assets (1)$88,740$89,536$91,591$93,603$94,677$95,402$89,208$95,062
Average yield pre-tax (1)3.0 %3.2 %3.4 %3.3 %3.6 %3.7 %3.1 %3.6 %
Average yield after-tax2.5 %2.7 %2.8 %2.8 %2.9 %3.0 %2.6 %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
image2.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Net realized investment gains (losses)
Fixed maturities$(11)$(22)$(36)$(27)$(40)$(35)$(33)$(75)
Equity securities 18 (19)(16)28 79 (28)(1)51 
Other (1)6 (13)(12)(4)(2)5 (6)
Realized investment gains (losses) before tax6 (35)(65)(11)35 (65)(29)(30)
Related taxes1 (6)(15)(4)8 (14)(5)(6)
Net realized investment gains (losses)$5 $(29)$(50)$(7)$27 $(51)$(24)$(24)
Gross investment gains$46 $17 $9 $33 $85 $7 $63 $92 
Gross investment losses before impairments(39)(52)(73)(34)(47)(72)(91)(119)
Net investment gains (losses) before impairments7 (35)(64)(1)38 (65)(28)(27)
Net impairment (charges) recoveries(1)— (1)(10)(3)— (1)(3)
Net realized investment gains (losses) before tax6 (35)(65)(11)35 (65)(29)(30)
Related taxes1 (6)(15)(4)8 (14)(5)(6)
Net realized investment gains (losses)$5 $(29)$(50)$(7)$27 $(51)$(24)$(24)
($ in millions)March 31,
2023		June 30,
2023		September 30,
2023		December 31,
2023		March 31,
2024		June 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)
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)
Related taxes (1,044)(1,239)(1,740)(841)(999)(1,067)
Balance, end of period$(3,868)$(4,576)$(6,466)$(3,129)$(3,721)$(3,976)




27
The Travelers Companies, Inc.
Reinsurance Recoverables
image2.gif
($ in millions)June 30, 2024December 31, 2023
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$3,952 $3,895 
Gross structured settlements (2)2,661 2,707 
Mandatory pools and associations (3) 1,636 1,659 
Gross reinsurance recoverables (4)8,249 8,261 
Allowance for estimated uncollectible reinsurance (5)(117)(118)
Net reinsurance recoverables$8,132 $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 ReinsurerJune 30, 2024
Swiss Re GroupA+ second highest of 16 ratings$682 
Berkshire HathawayA++ highest of 16 ratings464 
Munich Re GroupA+ second highest of 16 ratings339 
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 InsurerJune 30, 2024
Fidelity & Guaranty Life Group  A third highest of 16 ratings$659 
Genworth Financial Group B- eighth highest of 16 ratings322 
John Hancock Group A+ second highest of 16 ratings225 
Symetra Financial CorporationA third highest of 16 ratings205 
Brighthouse Financial, Inc.A third highest of 16 ratings183 

(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 June 30, 2024, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.78 billion, or 87%, 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 13% of reinsurance recoverables comprised the following:  6% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools and 6% 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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
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 $39,027 $40,833 
Incurred2,858 3,251 3,467 2,924 3,282 3,422 6,109 6,704 
Paid(2,620)(2,657)(2,637)(2,832)(2,697)(2,758)(5,277)(5,455)
Foreign exchange and other14 35 (48)51 (27)(5)49 (32)
End of period$39,279 $39,908 $40,690 $40,833 $41,391 $42,050 $39,908 $42,050 
Bond & Specialty Insurance
Beginning of period$4,167 $4,318 $4,448 $4,423 $4,521 $4,626 $4,167 $4,521 
Incurred376 363 345 384 424 468 739 892 
Paid(238)(256)(335)(325)(306)(320)(494)(626)
Foreign exchange and other13 23 (35)39 (13)(1)36 (14)
End of period$4,318 $4,448 $4,423 $4,521 $4,626 $4,773 $4,448 $4,773 
Personal Insurance
Beginning of period$7,568 $7,567 $8,287 $8,579 $8,363 $8,561 $7,568 $8,363 
Incurred2,672 3,565 3,279 2,518 2,896 3,430 6,237 6,326 
Paid(2,674)(2,863)(2,967)(2,755)(2,678)(2,885)(5,537)(5,563)
Foreign exchange and other1 18 (20)21 (20)(7)19 (27)
End of period$7,567 $8,287 $8,579 $8,363 $8,561 $9,099 $8,287 $9,099 
Total
Beginning of period$50,762 $51,164 $52,643 $53,692 $53,717 $54,578 $50,762 $53,717 
Incurred5,906 7,179 7,091 5,826 6,602 7,320 13,085 13,922 
Paid(5,532)(5,776)(5,939)(5,912)(5,681)(5,963)(11,308)(11,644)
Foreign exchange and other28 76 (103)111 (60)(13)104 (73)
End of period$51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $52,643 $55,922 
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos$— $— $284 $— $— $— $— $— 
All other(19)101 (21)(56)— (34)82 (34)
Total Business Insurance (1)(19)101 263 (56)— (34)82 (34)
Bond & Specialty Insurance(58)(119)(72)(36)(24)(24)(177)(48)
Personal Insurance(28)(42)(37)(40)(67)(172)(70)(239)
Total$(105)$(60)$154 $(132)$(91)$(230)$(165)$(321)
(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
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Asbestos reserves
Beginning reserves:
Gross$1,674 $1,620 $1,552 $1,848 $1,768 $1,686 $1,674 $1,768 
Ceded(369)(348)(334)(415)(390)(382)(369)(390)
Net1,305 1,272 1,218 1,433 1,378 1,304 1,305 1,378 
Incurred losses and loss expenses:
Gross— — 374 — — — — — 
Ceded— — (90)— — — — — 
Paid loss and loss expenses:
Gross54 69 77 81 82 74 123 156 
Ceded(21)(13)(10)(25)(8)(13)(34)(21)
Foreign exchange and other:
Gross— 1 (1)1 — — 1 — 
Ceded— 1 (1)— — 1 1 1 
Ending reserves:
Gross1,620 1,552 1,848 1,768 1,686 1,612 1,552 1,612 
Ceded(348)(334)(415)(390)(382)(368)(334)(368)
Net$1,272 $1,218 $1,433 $1,378 $1,304 $1,244 $1,218 $1,244 





















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
image2.gif
($ in millions)June 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(106)(108)
7,932 7,931 
Total debt8,032 8,031 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)28,838 28,050 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$36,870 $36,081 
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)21.8 %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
image2.gif
($ in millions)June 30,
2024 (1)		December 31,
2023
Statutory capital and surplus$25,210 $25,114 
GAAP adjustments
Goodwill and intangible assets3,648 3,657 
Investments(4,584)(3,455)
Noninsurance companies(4,629)(5,183)
Deferred acquisition costs3,374 3,161 
Deferred federal income tax264 84 
Current federal income tax(3)(6)
Reinsurance recoverables55 55 
Furniture, equipment & software959 982 
Agents balances200 189 
Other368 323 
Total GAAP adjustments(348)(193)
GAAP shareholders’ equity$24,862 $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
image2.gif

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Cash flows from operating activities
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $961 $1,657 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized investment (gains) losses(6)35 65 11 (35)65 29 30 
Depreciation and amortization204 179 169 170 196 182 383 378 
Deferred federal income tax expense (benefit)32 (96)(43)(56)42 (85)(64)(43)
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 2,981 3,376 
Equity in income from other investments(30)(55)(59)(13)(68)(89)(85)(157)
Premiums receivable(557)(832)(33)81 (557)(664)(1,389)(1,221)
Reinsurance recoverables(24)(17)(163)141 33 (34)(41)(1)
Deferred acquisition costs(1,629)(1,722)(1,728)(1,610)(1,776)(1,807)(3,351)(3,583)
Claims and claim adjustment expense reserves381 1,413 1,259 (210)928 1,384 1,794 2,312 
Unearned premium reserves893 1,042 882 (227)457 788 1,935 1,245 
Other(689)97 689 550 (583)(275)(592)(858)
Net cash provided by operating activities1,012 1,549 3,046 2,104 1,458 1,677 2,561 3,135 
Cash flows from investing activities
Proceeds from maturities of fixed maturities1,538 1,493 1,878 1,462 1,709 2,464 3,031 4,173 
Proceeds from sales of investments:
Fixed maturities2,364 751 1,504 362 942 308 3,115 1,250 
Equity securities28 62 27 21 21 41 90 62 
Other investments64 36 66 89 55 55 100 110 
Purchases of investments:
Fixed maturities(4,335)(3,328)(5,391)(2,636)(3,738)(4,349)(7,663)(8,087)
Equity securities(34)(16)(30)(25)(26)(21)(50)(47)
Real estate investments(14)(12)(20)(21)(13)(11)(26)(24)
Other investments(139)(116)(120)(120)(90)(95)(255)(185)
Net sales (purchases) of short-term securities228 (646)(600)(646)454 330 (418)784 
Securities transactions in the course of settlement(35)50 45 (143)111 247 15 358 
Acquisition, net of cash acquired— — — — (381)(1)— (382)
Other(120)(131)(84)(127)(81)(111)(251)(192)
Net cash used in investing activities(455)(1,857)(2,725)(1,784)(1,037)(1,143)(2,312)(2,180)

33
The Travelers Companies, Inc.
Statement of Cash Flows (Continued)
image2.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q2024YTD 2Q2023YTD 2Q2024
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations(398)(396)(100)(64)(250)(249)(794)(499)
Treasury stock acquired - net employee share-based compensation(62)— (1)(1)(110)(1)(62)(111)
Dividends paid to shareholders(215)(232)(229)(232)(229)(244)(447)(473)
Issuance of debt— 738 — — — — 738 — 
Issuance of common stock - employee share options82 28 7 24 190 22 110 212 
Net cash provided by (used in) financing activities(593)138 (323)(273)(399)(472)(455)(871)
Effect of exchange rate changes on cash4 8 (10)10 (5)— 12 (5)
Net increase (decrease) in cash(32)(162)(12)57 17 62 (194)79 
Cash at beginning of period799 767 605 593 650 667 799 650 
Cash at end of period$767 $605 $593 $650 $667 $729 $605 $729 
Supplemental disclosure of cash flow information
Income taxes paid (received)$(16)$155 $13 $49 $24 $831 $139 $855 
Interest paid$60 $115 $59 $136 $60 $135 $175 $195 
Supplemental disclosure of noncash financing activities
Issuance of common stock - net share settlement of employee options$— $— $— $— $28 $2 $— $30 

34
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
image2.gif
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, 2024
Shareholders’ equity$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,868 4,576 6,466 3,129 3,721 3,976 
Net realized investment (gains) losses, net of tax(5)24 74 81 (27)24 
Adjusted shareholders’ equity$26,915 $26,455 $26,518 $28,131 $28,716 $28,862 
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.
 
35
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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v3.24.2
Cover Page
Jul. 19, 2024
Cover [Abstract]  
Document type 8-K
Document period end date Jul. 19, 2024
Registrant name Travelers Companies, Inc.
Entity incorporation, state MN
Entity file number 001-10898
Entity tax identification number 41-0518860
Entity address, address line one 485 Lexington Avenue
Entity address, city New York
Entity address, state NY
Entity address, postal zip code 10017
City area code 917
Local phone number 778-6000
Written communications false
Soliciting material false
Pre-commencement communications pursuant to Rule 14d-2(b) false
Pre-commencement communications pursuant to Rule 13e-4(c) false
Title of 12(b) security Common stock, without par value
Trading symbol TRV
Security exchange name NYSE
Entity emerging growth company false
Central index key 0000086312
Amendment flag false
The Travelers Companies (NYSE:TRV)
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