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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): October 17, 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 October 17, 2024, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2024, and the availability of the Company’s third 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: October 17, 2024By:/S/   CHRISTINE K. KALLA
  Name: Christine K. Kalla
  Executive Vice President and General Counsel



g34651mo25i001b12a.gif                                            Exhibit 99.1
                                            The Travelers Companies, Inc.
                            485 Lexington Avenue
                                    New York, NY 10017-2630
                                        www.travelers.com
NYSE: TRV
Travelers Reports Excellent Third Quarter and Year-to-Date Results
Third Quarter 2024 Net Income per Diluted Share of $5.42, up 211%, and Return on Equity of 19.2%
Third Quarter 2024 Core Income per Diluted Share of $5.24, up 169%, and Core Return on Equity of 16.6%
•Strong third quarter net income of $1.260 billion and core income of $1.218 billion.
•Consolidated combined ratio improved 7.8 points from the prior year quarter to a strong 93.2%.
•Catastrophe losses of $939 million pre-tax, compared to $850 million pre-tax in the prior year quarter.
•Substantial net favorable prior year reserve development of $126 million pre-tax.
•Record underlying underwriting income of $1.498 billion pre-tax, reflecting an underlying combined ratio that improved 5.0 points to an excellent 85.6%; strong underlying results in all three segments.
•Record net written premiums of $11.317 billion, up 8%, with growth in all three segments.
•Net investment income increased 18% pre-tax over the prior year quarter.
•Book value per share of $122.00, up 39% over September 30, 2023, driven by lower interest rates; adjusted book value per share of $131.30, up 13% over September 30, 2023.

New York, October 17, 2024 — The Travelers Companies, Inc. today reported net income of $1.260 billion, or $5.42 per diluted share, for the quarter ended September 30, 2024, compared to $404 million, or $1.74 per diluted share, in the prior year quarter. Core income in the current quarter was $1.218 billion, or $5.24 per diluted share, compared to $454 million, or $1.95 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 gains in the current quarter were $55 million pre-tax ($42 million after-tax), compared to net realized investment losses of $65 million pre-tax ($50 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.
Consolidated Highlights
($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)Three Months Ended September 30,Nine Months Ended September 30,
20242023Change20242023Change
Net written premiums$11,317 $10,493 8 %$32,614 $30,207 8 %
Total revenues$11,904 $10,635 12 $34,415 $30,437 13 
Net income$1,260 $404 212 $2,917 $1,365 114 
per diluted share$5.42 $1.74 211 $12.51 $5.83 115 
Core income$1,218 $454 168 $2,899 $1,439 101 
per diluted share$5.24 $1.95 169 $12.43 $6.15 102 
Diluted weighted average shares outstanding230.6 231.1 — 231.3 232.5 (1)
Combined ratio93.2 %101.0 %(7.8)pts95.7 %101.0 %(5.3)pts
Underlying combined ratio85.6 %90.6 %(5.0)pts87.0 %90.8 %(3.8)pts
Return on equity19.2 %7.7 %11.5 pts15.3 %8.3 %7.0 pts
Core return on equity16.6 %6.9 %9.7 pts13.4 %7.2 %6.2 pts
As ofChange From
September 30,
2024		December 31,
2023		September 30,
2023		December 31,
2023		September 30,
2023
Book value per share$122.00 $109.19 $87.47 12 %39 %
Adjusted book value per share131.30 122.90 115.78 7 %13 %


See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
1


“We are pleased to report excellent results for the quarter, with both underwriting and investment income contributing meaningfully to our strong performance,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Core income for the quarter was more than $1.2 billion, or $5.24 per diluted share, generating core return on equity of 16.6%. Our results benefited from a 10% increase in net earned premiums to a record $10.7 billion and an excellent combined ratio that improved nearly 8 points to 93.2%. Very strong underlying profitability and net favorable prior year development drove the improvement in our combined ratio. Both underwriting income and underlying margins were strong in all three of our segments. Our high-quality investment portfolio generated after-tax net investment income of $742 million. These results, along with our strong balance sheet, enabled us to return $496 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 a record $11.3 billion. In Business Insurance, we grew net written premiums by 9% to $5.5 billion. Renewal premium change in the segment remained very strong at 10.5%, including renewal rate change of 7.3% that was higher sequentially, while retention was strong and higher sequentially at 86%. In Bond & Specialty Insurance, we grew net written premiums by 7% to a record $1.1 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 7%. In Personal Insurance, net written premiums grew 7% to a record $4.7 billion, driven by continued strong renewal premium change, particularly in the homeowners book.
“Our excellent profitability and continued strong premium growth both this quarter and year-to-date are a reflection of our powerful franchise value. Driven by our formidable earnings power across underwriting and investments, we delivered 15.9% core return on equity over the last twelve months. We continue to grow book value per share, while making important strategic investments in our business and returning excess capital to shareholders. With this momentum, we are very confident in our outlook for our business into 2025 and beyond.”

2

Consolidated Results
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain (loss):$685 $(136)$821 $1,197 $(409)$1,606 
Underwriting gain (loss) includes:
Net favorable (unfavorable) prior year reserve development126 (154)280 447 11 436 
Catastrophes, net of reinsurance(939)(850)(89)(3,160)(2,866)(294)
Net investment income904 769 135 2,635 2,144 491 
Other income (expense), including interest expense
(84)(96)12 (271)(289)18 
Core income before income taxes1,505 537 968 3,561 1,446 2,115 
Income tax expense287 83 204 662 7 655 
Core income1,218 454 764 2,899 1,439 1,460 
Net realized investment gains (losses) after income taxes42 (50)92 18 (74)92 
Net income$1,260 $404 $856 $2,917 $1,365 $1,552 
Combined ratio93.2 %101.0 %(7.8)pts95.7 %101.0 %(5.3)pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development(1.2)pts1.6 pts(2.8)pts(1.5)pts(0.1)pts(1.4)pts
Catastrophes, net of reinsurance8.8 pts8.8 pts— pts10.2 pts10.3 pts(0.1)pts
Underlying combined ratio85.6 %90.6 %(5.0)pts87.0 %90.8 %(3.8)pts
Net written premiums
Business Insurance$5,517$5,0809 %$16,652$15,4128 %
Bond & Specialty Insurance1,0721,0037 3,0552,8537 
Personal Insurance4,7284,4107 12,90711,9428 
Total$11,317$10,4938 %$32,614$30,2078 %
Third Quarter 2024 Results
(All comparisons vs. third quarter 2023, unless noted otherwise)
Net income of $1.260 billion increased $856 million, due to higher core income and net realized investment gains, compared to net realized investment losses in the prior year quarter. Core income of $1.218 billion increased $764 million, primarily due to a higher underlying underwriting gain, net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year quarter and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. Net realized investment gains were $55 million pre-tax ($42 million after-tax), compared to net realized investment losses of $65 million pre-tax ($50 million after-tax) in the prior year quarter.
Combined ratio:
•The combined ratio of 93.2% improved 7.8 points due to an improvement in the underlying combined ratio (5.0 points) and net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year quarter (2.8 points).
•The underlying combined ratio improved 5.0 points to an excellent 85.6%. See below for further details by segment.
•Net favorable prior year reserve development in Personal Insurance and Bond & Specialty Insurance was partially offset by net unfavorable prior year reserve development in Business Insurance driven by the Company’s annual in-depth asbestos claim review. See below for further details by segment.
•Catastrophe losses primarily resulted from Hurricane Helene and severe wind and hail storms in multiple states.

3

Net investment income of $904 million pre-tax ($742 million after-tax) increased 18%. 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 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 $11.317 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 $2.917 billion increased $1.552 billion, due to higher core income and net realized investment gains, compared to net realized investment losses in the prior year period. Core income of $2.899 billion increased $1.460 billion, 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 period 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 gains were $25 million pre-tax ($18 million after-tax), compared to net realized investment losses of $94 million pre-tax ($74 million after-tax) in the prior year.

Combined ratio:
 
•The combined ratio of 95.7% improved 5.3 points due to an improvement in the underlying combined ratio (3.8 points), higher net favorable prior year reserve development (1.4 points) and lower catastrophe losses as a percentage of net earned premiums (0.1 points).

•The underlying combined ratio of 87.0% improved 3.8 points. See below for further details by segment.

•Net favorable prior year reserve development in Personal Insurance and Bond & Specialty Insurance was partially offset by net unfavorable prior year reserve development in Business Insurance. See below for further details by segment.

•Catastrophe losses included the third quarter events described above, as well as numerous severe wind and hail storms in multiple states in the first six months of 2024.
Net investment income of $2.635 billion pre-tax ($2.167 billion after-tax) increased 23% driven by the same factors described above for the third quarter of 2024.

Net written premiums of $32.614 billion increased 8%. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $27.696 billion increased 11% over year-end 2023, primarily due to net income of $2.917 billion and lower net unrealized investment losses, partially offset by common share repurchases and dividends to shareholders. Net unrealized investment losses included in shareholders’ equity were $2.672 billion pre-tax ($2.111 billion after-tax), compared to $3.970 billion pre-tax ($3.129 billion after-tax) at year-end 2023. The decrease in net unrealized investment losses was driven primarily by lower interest rates. Book value per share of $122.00 increased 12% over year-end 2023. Adjusted book value per share of $131.30, which excludes net unrealized investment gains (losses), increased 7% over year-end 2023.

The Company repurchased 1.1 million shares during the third quarter at an average price of $222.64 per share for a total cost of $253 million. At September 30, 2024, the Company had $5.290 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 $26.191 billion, and the ratio of debt-to-capital was 22.5%. The ratio of debt-to-capital excluding after-tax net unrealized investment gains (losses) included in shareholders’ equity was 21.2%, 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 December 31, 2024, to shareholders of record at the close of business on December 10, 2024.
4

Business Insurance Segment Financial Results
 Three Months Ended September 30,Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain:$219 $31 $188 $746 $290 $456 
Underwriting gain includes:
Net unfavorable prior year reserve development(91)(263)172 (57)(345)288 
Catastrophes, net of reinsurance
(340)(203)(137)(938)(798)(140)
Net investment income642 551 91 1,883 1,533 350 
Other income (expense) (1)(13)12 (20)(56)36 
Segment income before income taxes860 569 291 2,609 1,767 842 
Income tax expense162 101 61 491 141 350 
Segment income$698 $468 $230 $2,118 $1,626 $492 
Combined ratio95.8 %99.1 %(3.3)pts95.1 %97.7 %(2.6)pts
Impact on combined ratio
Net unfavorable prior year reserve development1.7 pts5.3 pts(3.6)pts0.4 pts2.4 pts(2.0)pts
Catastrophes, net of reinsurance
6.2 pts4.1 pts2.1 pts5.9 pts5.7 pts0.2 pts
Underlying combined ratio87.9 %89.7 %(1.8)pts88.8 %89.6 %(0.8)pts
Net written premiums by market
Domestic
Select Accounts$885 $824 7 %$2,834 $2,615 8 %
Middle Market3,030 2,750 10 9,012 8,294 9 
National Accounts264 247 7 903 818 10 
National Property and Other896 874 3 2,450 2,326 5 
Total Domestic5,075 4,695 8 15,199 14,053 8 
International442 385 15 1,453 1,359 7 
Total$5,517 $5,080 9 %$16,652 $15,412 8 %
 
Third Quarter 2024 Results
(All comparisons vs. third quarter 2023, unless noted otherwise)
 
Segment income for Business Insurance was $698 million after-tax, an increase of $230 million. Segment income increased primarily due to lower net unfavorable prior year reserve development, a higher underlying underwriting gain 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 95.8% improved 3.3 points due to lower net unfavorable prior year reserve development (3.6 points) and an improvement in the underlying combined ratio (1.8 points), partially offset by higher catastrophe losses (2.1 points).
•The underlying combined ratio improved 1.8 points to an excellent 87.9%.
•Net unfavorable prior year reserve development was primarily driven by an addition to asbestos reserves of $242 million, partially offset by better than expected loss experience in the workers’ compensation product line for multiple accident years.
Net written premiums of $5.517 billion increased 9%, reflecting strong renewal premium change and retention.

5

Year-to-Date 2024 Results
(All comparisons vs. year-to-date 2023, unless noted otherwise)
 
Segment income for Business Insurance was $2.118 billion after-tax, an increase of $492 million. Segment income increased primarily due to higher net investment income, lower net unfavorable prior year reserve development and a higher underlying underwriting gain, 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 $171 million due to the expiration of the statute of limitations with respect to a tax item.
 
Combined ratio:

•The combined ratio of 95.1% improved 2.6 points due to lower net unfavorable prior year reserve development (2.0 points) and an improvement in the underlying combined ratio (0.8 points), partially offset by higher catastrophe losses (0.2 points).
•The underlying combined ratio improved 0.8 points to an excellent 88.8%.

•Net unfavorable prior year reserve development was primarily driven by (i) higher than expected loss experience in the general liability product line (excluding asbestos) for recent accident years, (ii) an addition to asbestos reserves of $242 million and (iii) an addition to reserves related to run-off operations, partially offset by (iv) better than expected loss experience in the workers’ compensation product line for multiple accident years.
Net written premiums of $16.652 billion increased 8%, reflecting the same factors described above for the third quarter of 2024.

6

Bond & Specialty Insurance Segment Financial Results
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023 Change
Underwriting gain:$172 $241 $(69)$431 $617 $(186)
Underwriting gain includes:
Net favorable prior year reserve development36 72 (36)84 249 (165)
Catastrophes, net of reinsurance(4)(5)1 (49)(31)(18)
Net investment income101 86 15 285 237 48 
Other income6 4 2 17 14 3 
Segment income before income taxes279 331 (52)733 868 (135)
Income tax expense57 66 (9)146 166 (20)
Segment income$222 $265 $(43)$587 $702 $(115)
Combined ratio82.5 %73.6 %8.9 pts84.9 %76.8 %8.1 pts
Impact on combined ratio
Net favorable prior year reserve development(3.5)pts(7.7)pts4.2 pts(2.9)pts(9.1)pts6.2 pts
Catastrophes, net of reinsurance0.4 pts0.6 pts(0.2)pts1.7 pts1.1 pts0.6 pts
Underlying combined ratio85.6 %80.7 %4.9 pts86.1 %84.8 %1.3 pts
Net written premiums
Domestic
Management Liability$617 $551 12 %$1,746 $1,603 9 %
Surety344 321 7 965 871 11 
Total Domestic961 872 10 2,711 2,474 10 
International111 131 (15)344 379 (9)
Total$1,072 $1,003 7 %$3,055 $2,853 7 %

Third Quarter 2024 Results
(All comparisons vs. third quarter 2023, unless noted otherwise)
 
Segment income for Bond & Specialty Insurance was $222 million after-tax, a decrease of $43 million. Segment income decreased primarily due to lower net favorable prior year reserve development and a lower underlying underwriting gain, partially offset by higher net investment income. The underlying underwriting gain benefited from higher business volumes.
Combined ratio:

•The combined ratio of 82.5% increased 8.9 points due to a higher underlying combined ratio (4.9 points) and lower net favorable prior year reserve development (4.2 points), partially offset by lower catastrophe losses (0.2 points).

•The underlying combined ratio increased 4.9 points to a very strong 85.6%.

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

Net written premiums of $1.072 billion increased 7%, reflecting strong production in both surety and management liability.

7

Year-to-Date 2024 Results
(All comparisons vs. year-to-date 2023, unless noted otherwise)
 
Segment income for Bond & Specialty Insurance was $587 million after-tax, a decrease of $115 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. 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 84.9% increased 8.1 points due to lower net favorable prior year reserve development (6.2 points), a higher underlying combined ratio (1.3 points) and higher catastrophe losses (0.6 points).

•The underlying combined ratio increased 1.3 points to a very strong 86.1%.

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

Net written premiums of $3.055 billion increased 7%, reflecting the same factor described above for the third quarter of 2024.

Personal Insurance Segment Financial Results
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain (loss):$294 $(408)$702 $20 $(1,316)$1,336 
Underwriting gain (loss) includes:
Net favorable prior year reserve development181 37 144 420 107 313 
Catastrophes, net of reinsurance(595)(642)47 (2,173)(2,037)(136)
Net investment income161 132 29 467 374 93 
Other income20 20 — 57 59 (2)
Segment income (loss) before income taxes475 (256)731 544 (883)1,427 
Income tax expense (benefit)91 (63)154 93 (235)328 
Segment income (loss)$384 $(193)$577 $451 $(648)$1,099 
Combined ratio92.5 %110.0 %(17.5)pts99.2 %111.3 %(12.1)pts
Impact on combined ratio
Net favorable prior year reserve development(4.3)pts(1.0)pts(3.3)pts(3.4)pts(1.0)pts(2.4)pts
Catastrophes, net of reinsurance14.1 pts16.8 pts(2.7)pts17.6 pts18.5 pts(0.9)pts
Underlying combined ratio82.7 %94.2 %(11.5)pts85.0 %93.8 %(8.8)pts
Net written premiums
Domestic
Automobile$2,138 $2,022 6 %$5,998 $5,499 9 %
Homeowners and Other2,410 2,216 9 6,392 5,954 7 
Total Domestic4,548 4,238 7 12,390 11,453 8 
International180 172 5 517 489 6 
Total$4,728 $4,410 7 %$12,907 $11,942 8 %

8

Third Quarter 2024 Results
(All comparisons vs. third quarter 2023, unless noted otherwise)

Segment income for Personal Insurance was $384 million after-tax, compared with a segment loss of $193 million in the prior year quarter. Segment income increased primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development, lower catastrophe losses and higher net investment income. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 92.5% improved 17.5 points due to an improvement in the underlying combined ratio (11.5 points), higher net favorable prior year reserve development (3.3 points) and lower catastrophe losses (2.7 points).

•The underlying combined ratio of 82.7% improved 11.5 points, reflecting improvement in both Homeowners and Other and Automobile.

•Net favorable prior year reserve development was primarily driven by better than expected loss experience in both the Homeowners and Other and Automobile product lines for recent accident years.

Net written premiums of $4.728 billion increased 7%, reflecting strong renewal premium change in both Domestic Homeowners and Other and Automobile.

Year-to-Date 2024 Results
(All comparisons vs. year-to-date 2023, unless noted otherwise)
 
Segment income for Personal Insurance was $451 million after-tax, compared with a segment loss of $648 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 99.2% improved 12.1 points due to an improvement in the underlying combined ratio (8.8 points), higher net favorable prior year reserve development (2.4 points) and lower catastrophe losses as a percentage of net earned premiums (0.9 points).

•The underlying combined ratio of 85.0% improved 8.8 points, reflecting improvement in both Homeowners and Other and Automobile.

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

Net written premiums of $12.907 billion increased 8%, reflecting the same factor described above for the third 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 Thursday, October 17, 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.

9

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.
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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 growth, 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.

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Reconciliation of Net Income to Core Income less Preferred Dividends
Three Months Ended September 30,Nine Months Ended September 30,Twelve Months Ended September 30,
($ in millions, after-tax)20242023202420232024
Net income$1,260 $404 $2,917 $1,365 $4,543 
Adjustments:
Net realized investment (gains) losses(42)50 (18)74 (11)
Core income$1,218 $454 $2,899 $1,439 $4,532 

Three Months Ended September 30,Nine Months Ended September 30,
($ in millions, pre-tax)2024202320242023
Net income$1,560 $472 $3,586 $1,352 
Adjustments:
Net realized investment (gains) losses(55)65 (25)94 
Core income$1,505 $537 $3,561 $1,446 
 Twelve Months Ended December 31,Average Annual
($ 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 per Share to Core Income per Share on a Diluted Basis
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Diluted income per share    
Net income$5.42 $1.74 $12.51 $5.83 
Adjustments:
Net realized investment (gains) losses, after-tax(0.18)0.21 (0.08)0.32 
Core income$5.24 $1.95 $12.43 $6.15 
Reconciliation of Segment Income (Loss) to Total Core Income
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions, after-tax)2024202320242023
Business Insurance$698 $468 $2,118 $1,626 
Bond & Specialty Insurance222 265 587 702 
Personal Insurance384 (193)451 (648)
Total segment income1,304 540 3,156 1,680 
Interest Expense and Other(86)(86)(257)(241)
Total core income$1,218 $454 $2,899 $1,439 
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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 September 30,
($ in millions)20242023
Shareholders’ equity$27,696 $19,978 
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity2,111 6,466 
Net realized investment (gains) losses, net of tax(18)74 
Adjusted shareholders’ equity$29,789 $26,518 
As of December 31,Average Annual
($ 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 September 30,Nine Months Ended September 30,Twelve Months Ended September 30,
($ in millions, after-tax)20242023202420232024
Annualized net income$5,041 $1,615 $3,889 $1,820 $4,543 
Average shareholders’ equity26,279 20,916 25,398 21,892 24,661 
Return on equity19.2 %7.7 %15.3 %8.3 %18.4 %
Annualized core income$4,870 $1,818 $3,865 $1,919 $4,532 
Adjusted average shareholders’ equity29,301 26,463 28,834 26,613 28,438 
Core return on equity16.6 %6.9 %13.4 %7.2 %15.9 %

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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.

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Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions, after-tax, except as noted)2024202320242023
Net income$1,260 $404 $2,917 $1,365 
Net realized investment (gains) losses(42)50 (18)74 
Core income1,218 454 2,899 1,439 
Net investment income(742)(640)(2,167)(1,791)
Other (income) expense, including interest expense71 79 229 237 
Underwriting income (loss)547 (107)961 (115)
Income tax expense (benefit) on underwriting results138 (29)236 (294)
Pre-tax underwriting income (loss)685 (136)1,197 (409)
Pre-tax impact of net (favorable) unfavorable prior year reserve development(126)154 (447)(11)
Pre-tax impact of catastrophes939 850 3,160 2,866 
Pre-tax underlying underwriting income$1,498 $868 $3,910 $2,446 
Reconciliation of Net Income to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
 Three Months Ended September 30,Nine Months Ended September 30,
($ in millions, after-tax)2024202320242023
Net income$1,260 $404 $2,917 $1,365 
Net realized investment (gains) losses(42)50 (18)74 
Core income1,218 454 2,899 1,439 
Net investment income(742)(640)(2,167)(1,791)
Other (income) expense, including interest expense71 79 229 237 
Underwriting income (loss)547 (107)961 (115)
Impact of net (favorable) unfavorable prior year reserve development(99)122 (352)(8)
Impact of catastrophes739 669 2,494 2,262 
Underlying underwriting income$1,187 $684 $3,103 $2,139 
 Twelve Months Ended December 31,
($ 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.

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Calculation of the Combined Ratio
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions, pre-tax)2024202320242023
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses$6,996 $7,149 $21,025 $20,335 
Less:
Policyholder dividends12 14 36 36 
Allocated fee income44 42 125 124 
Loss ratio numerator$6,940 $7,093 $20,864 $20,175 
Underwriting expense ratio
Amortization of deferred acquisition costs$1,790 $1,604 $5,166 $4,585 
General and administrative expenses (G&A)1,460 1,312 4,344 3,887 
Less:
Non-insurance G&A106 99 314 286 
Allocated fee income77 70 220 200 
Billing and policy fees and other28 28 88 84 
Expense ratio numerator$3,039 $2,719 $8,888 $7,902 
Earned premium$10,704 $9,718 $31,073 $27,788 
Combined ratio (1)
Loss and loss adjustment expense ratio64.8 %73.0 %67.1 %72.6 %
Underwriting expense ratio28.4 %28.0 %28.6 %28.4 %
Combined ratio93.2 %101.0 %95.7 %101.0 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(1.2)%1.6 %(1.5)%(0.1)%
Catastrophes, net of reinsurance8.8 %8.8 %10.2 %10.3 %
Underlying combined ratio85.6 %90.6 %87.0 %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.

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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)September 30,
2024		December 31,
2023		September 30,
2023
Shareholders’ equity$27,696 $24,921 $19,978 
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity(2,111)(3,129)(6,466)
Shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity29,807 28,050 26,444 
Less:
Goodwill4,273 3,976 3,955 
Other intangible assets368 277 278 
Impact of deferred tax on other intangible assets(91)(69)(64)
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity$25,257 $23,866 $22,275 
Common shares outstanding227.0 228.2 228.4 
Book value per share$122.00 $109.19 $87.47 
Adjusted book value per share131.30 122.90 115.78 
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity111.25 104.57 97.53 

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)September 30,
2024		December 31,
2023
Debt    $8,033 $8,031 
Shareholders’ equity  27,696 24,921 
Total capitalization  
35,729 32,952 
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity(2,111)(3,129)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity$37,840 $36,081 
Debt-to-capital ratio  22.5 %24.4 %
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity21.2 %22.3 %
 

19

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

 As of September 30,
($ in millions)20242023
Invested assets$95,450 $82,956 
Less: Net unrealized investment losses, pre-tax(2,672)(8,206)
Invested assets excluding net unrealized investment losses$98,122 $91,162 

  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 - Third Quarter 2024
Exhibit 99.2 image2a.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
image2a.gif
($ and shares in millions, except for per share data)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
Net income (loss) per share:
Basic$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $5.50 $5.89 $12.68 
Diluted$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $5.42 $5.83 $12.51 
Core income$970 $15 $454 $1,633 $1,096 $585 $1,218 $1,439 $2,899 
Core income per share:
Basic$4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $5.31 $6.21 $12.60 
Diluted$4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $5.24 $6.15 $12.43 
Return on equity17.5 %(0.2)%7.7 %29.0 %18.0 %8.6 %19.2 %8.3 %15.3 %
Core return on equity14.5 %0.2 %6.9 %24.0 %15.4 %8.1 %16.6 %7.2 %13.4 %
Total assets, at period end$118,352 $120,573 $121,384 $125,978 $127,410 $129,315 $134,588 $121,384 $134,588 
Total equity, at period end$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 $27,696 $19,978 $27,696 
Book value per share, at period end$99.80 $95.46 $87.47 $109.19 $109.28 $109.08 $122.00 $87.47 $122.00 
Less: Net unrealized investment gains (losses), net of tax(16.75)(19.99)(28.31)(13.71)(16.25)(17.44)(9.30)(28.31)(9.30)
Adjusted book value per share, at period end$116.55 $115.45 $115.78 $122.90 $125.53 $126.52 $131.30 $115.78 $131.30 
Weighted average number of common shares outstanding (basic)231.7 229.7 228.8 228.4 229.0 228.6 227.4 230.0 228.3 
Weighted average number of common shares outstanding and common stock equivalents (diluted)234.4 229.7 231.1 231.1 232.0 231.5 230.6 232.5 231.3 
Common shares outstanding at period end231.0 228.9 228.4 228.2 229.0 227.9 227.0 228.4 227.0 
Common stock dividends declared$218 $233 $232 $232 $232 $245 $243 $683 $720 
Common stock repurchased:
Under Board of Directors authorization
Shares2.2 2.2 0.6 0.4 1.2 1.1 1.1 5.0 3.4 
Cost$400 $400 $100 $65 $250 $250 $250 $900 $750 
Other
Shares0.3 — — — 0.6 0.1 — 0.3 0.7 
Cost$62 $— $1 $1 $138 $3 $3 $63 $144 




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
image2a.gif

($ and shares in millions, except earnings per share)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Net income (loss)
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
Adjustments:
Net realized investment (gains) losses, after-tax(5)29 50 7 (27)51 (42)74 (18)
Core income $970 $15 $454 $1,633 $1,096 $585 $1,218 $1,439 $2,899 
Basic earnings per share
Net income (loss)$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $5.50 $5.89 $12.68 
Adjustments:
Net realized investment (gains) losses, after-tax(0.02)0.13 0.22 0.02 (0.12)0.22 (0.19)0.32 (0.08)
Core income $4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $5.31 $6.21 $12.60 
Diluted earnings per share
Net income (loss)$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $5.42 $5.83 $12.51 
Adjustments:
Net realized investment (gains) losses, after-tax(0.02)0.13 0.21 0.02 (0.11)0.22 (0.18)0.32 (0.08)
Core income $4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $5.24 $6.15 $12.43 
Adjustments to net income (loss) and weighted average shares for net income (loss) EPS calculations: (1)
Basic and Diluted1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Net income (loss), as reported$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
Participating share-based awards - allocated income(7)(1)(3)(12)(8)(5)(10)(10)(22)
Net income (loss) available to common shareholders - basic and diluted$968 $(15)$401 $1,614 $1,115 $529 $1,250 $1,355 $2,895 
Common Shares
Basic
Weighted average shares outstanding231.7 229.7 228.8 228.4 229.0 228.6 227.4 230.0 228.3 
Diluted
Weighted average shares outstanding231.7 229.7 228.8 228.4 229.0 228.6 227.4 230.0 228.3 
Weighted average effects of dilutive securities - stock options and performance shares2.7 — 2.3 2.7 3.0 2.9 3.2 2.5 3.0 
Diluted weighted average shares outstanding234.4 229.7 231.1 231.1 232.0 231.5 230.6 232.5 231.3 
(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
image2a.gif



($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Premiums$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $27,788 $31,073 
Net investment income663 712 769 778 846 885 904 2,144 2,635 
Fee income106 106 112 109 109 115 121 324 345 
Net realized investment gains (losses)6 (35)(65)(11)35 (65)55 (94)25 
Other revenues75 99 101 78 112 105 120 275 337 
Total revenues9,704 10,098 10,635 10,927 11,228 11,283 11,904 30,437 34,415 
Claims and expenses
Claims and claim adjustment expenses5,959 7,227 7,149 5,880 6,656 7,373 6,996 20,335 21,025 
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 1,790 4,585 5,166 
General and administrative expenses1,267 1,308 1,312 1,289 1,406 1,478 1,460 3,887 4,344 
Interest expense88 92 98 98 98 98 98 278 294 
Total claims and expenses8,776 10,146 10,163 8,908 9,858 10,627 10,344 29,085 30,829 
Income (loss) before income taxes928 (48)472 2,019 1,370 656 1,560 1,352 3,586 
Income tax expense (benefit)(47)(34)68 393 247 122 300 (13)669 
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
Other statistics
Effective tax rate on net investment income16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %16.5 %17.8 %
Net investment income (after-tax)$557 $594 $640 $645 $698 $727 $742 $1,791 $2,167 
Catastrophes, net of reinsurance:
Pre-tax$535 $1,481 $850 $125 $712 $1,509 $939 $2,866 $3,160 
After-tax$422 $1,171 $669 $99 $563 $1,192 $739 $2,262 $2,494 
Prior year reserve development - favorable (unfavorable):
Pre-tax$105 $60 $(154)$132 $91 $230 $126 $11 $447 
After-tax$83 $47 $(122)$105 $71 $182 $99 $8 $352 





See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3
The Travelers Companies, Inc.
Net Income (Loss) by Major Component and Combined Ratio - Consolidated
image2a.gif
($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Underwriting gain (loss)$501 $(509)$(107)$1,088 $472 $(58)$547 $(115)$961 
Net investment income557 594 640 645 698 727 742 1,791 2,167 
Other income (expense), including interest expense(88)(70)(79)(100)(74)(84)(71)(237)(229)
Core income 970 15 454 1,633 1,096 585 1,218 1,439 2,899 
Net realized investment gains (losses)5 (29)(50)(7)27 (51)42 (74)18 
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $1,365 $2,917 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio66.7 %77.9 %73.0 %58.4 %65.2 %71.4 %64.8 %72.6 %67.1 %
Underwriting expense ratio28.7 %28.6 %28.0 %27.4 %28.7 %28.8 %28.4 %28.4 %28.6 %
Combined ratio95.4 %106.5 %101.0 %85.8 %93.9 %100.2 %93.2 %101.0 %95.7 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(1.2)%(0.7)%1.6 %(1.3)%(0.9)%(2.2)%(1.2)%(0.1)%(1.5)%
Catastrophes, net of reinsurance6.0 %16.1 %8.8 %1.2 %7.1 %14.7 %8.8 %10.3 %10.2 %
Underlying combined ratio90.6 %91.1 %90.6 %85.9 %87.7 %87.7 %85.6 %90.8 %87.0 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Billing and policy fees and other$28 $28 $28 $29 $30 $30 $28 $84 $88 
Fee income:
Loss and loss adjustment expenses$42 $40 $42 $40 $39 $42 $44 $124 $125 
Underwriting expenses64 66 70 69 70 73 77 200 220 
Total fee income$106 $106 $112 $109 $109 $115 $121 $324 $345 
Non-insurance general and administrative expenses$95 $92 $99 $103 $102 $106 $106 $286 $314 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Premiums$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $27,788 $31,073 
Net investment income663 712 769 778 846 885 904 2,144 2,635 
Fee income106 106 112 109 109 115 121 324 345 
Other revenues75 99 101 78 112 105 120 275 337 
Total revenues
9,698 10,133 10,700 10,938 11,193 11,348 11,849 30,531 34,390 
Claims and expenses
Claims and claim adjustment expenses5,959 7,227 7,149 5,880 6,656 7,373 6,996 20,335 21,025 
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 1,790 4,585 5,166 
General and administrative expenses1,267 1,308 1,312 1,289 1,406 1,478 1,460 3,887 4,344 
Interest expense88 92 98 98 98 98 98 278 294 
Total claims and expenses
8,776 10,146 10,163 8,908 9,858 10,627 10,344 29,085 30,829 
Core income (loss) before income taxes922 (13)537 2,030 1,335 721 1,505 1,446 3,561 
Income tax expense (benefit)(48)(28)83 397 239 136 287 7 662 
Core income $970 $15 $454 $1,633 $1,096 $585 $1,218 $1,439 $2,899 
Other statistics
Effective tax rate on net investment income16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %16.5 %17.8 %
Net investment income (after-tax)$557 $594 $640 $645 $698 $727 $742 $1,791 $2,167 
Catastrophes, net of reinsurance:
Pre-tax$535 $1,481 $850 $125 $712 $1,509 $939 $2,866 $3,160 
After-tax$422 $1,171 $669 $99 $563 $1,192 $739 $2,262 $2,494 
Prior year reserve development - favorable (unfavorable):
Pre-tax$105 $60 $(154)$132 $91 $230 $126 $11 $447 
After-tax$83 $47 $(122)$105 $71 $182 $99 $8 $352 









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

5
The Travelers Companies, Inc.
Selected Statistics - Property and Casualty Operations
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Statutory underwriting
Gross written premiums$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $12,149 $32,517 $35,324 
Net written premiums$9,396 $10,318 $10,493 $9,994 $10,184 $11,115 $11,317 $30,207 $32,616 
Net earned premiums$8,854 $9,216 $9,718 $9,973 $10,128 $10,243 $10,704 $27,788 $31,075 
Losses and loss adjustment expenses5,906 7,179 7,091 5,826 6,602 7,320 6,940 20,176 20,862 
Underwriting expenses2,727 2,863 2,860 2,748 3,012 3,111 3,139 8,450 9,262 
Statutory underwriting gain (loss) 221 (826)(233)1,399 514 (188)625 (838)951 
Policyholder dividends12 10 14 13 12 12 12 36 36 
Statutory underwriting gain (loss) after policyholder dividends$209 $(836)$(247)$1,386 $502 $(200)$613 $(874)$915 
Other statutory statistics
Reserves for losses and loss adjustment expenses$51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $56,909 $53,692 $56,909 
Increase (decrease) in reserves$402 $1,479 $1,049 $25 $861 $1,344 $987 $2,930 $3,192 
Statutory capital and surplus$23,689 $22,934 $23,267 $25,114 $25,329 $25,210 $26,191 $23,267 $26,191 
Net written premiums/surplus (1)1.54:11.65:11.68:11.60:11.62:1 1.66:1 1.63:1 1.68:11.63:1

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

















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

6
The Travelers Companies, Inc.
Written and Earned Premiums - Property and Casualty Operations
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Written premiums
Gross$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $12,149 $32,517 $35,324 
Ceded(951)(589)(770)(461)(1,128)(750)(832)(2,310)(2,710)
Net$9,396 $10,318 $10,493 $9,994 $10,182 $11,115 $11,317 $30,207 $32,614 
Earned premiums
Gross$9,469 $9,866 $10,397 $10,678 $10,867 $11,083 $11,484 $29,732 $33,434 
Ceded(615)(650)(679)(705)(741)(840)(780)(1,944)(2,361)
Net$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $27,788 $31,073 






























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

7
The Travelers Companies, Inc.
Segment Income - Business Insurance
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q2024YTD 3Q2023YTD 3Q2024
Revenues
Premiums$4,477 $4,644 $4,956 $5,067 $5,160 $5,168 $5,474 $14,077 $15,802 
Net investment income473 509 551 552 609 632 642 1,533 1,883 
Fee income99 98 102 101 101 105 109 299 315 
Other revenues47 67 71 47 77 77 89 185 243 
Total revenues
5,096 5,318 5,680 5,767 5,947 5,982 6,314 16,094 18,243 
Claims and expenses
Claims and claim adjustment expenses2,907 3,296 3,519 2,974 3,331 3,471 3,698 9,722 10,500 
Amortization of deferred acquisition costs742 773 820 838 864 861 930 2,335 2,655 
General and administrative expenses734 764 772 771 818 835 826 2,270 2,479 
Total claims and expenses
4,383 4,833 5,111 4,583 5,013 5,167 5,454 14,327 15,634 
Segment income before income taxes713 485 569 1,184 934 815 860 1,767 2,609 
Income tax expense (benefit)(43)83 101 227 170 159 162 141 491 
Segment income $756 $402 $468 $957 $764 $656 $698 $1,626 $2,118 
Other statistics
Effective tax rate on net investment income15.8 %16.4 %16.8 %16.8 %17.4 %17.7 %17.7 %16.3 %17.6 %
Net investment income (after-tax)$398 $426 $458 $459 $502 $521 $528 $1,282 $1,551 
Catastrophes, net of reinsurance:
Pre-tax$199 $396 $203 $40 $209 $389 $340 $798 $938 
After-tax$157 $313 $160 $32 $166 $307 $268 $630 $741 
Prior year reserve development - favorable (unfavorable):
Pre-tax$19 $(101)$(263)$56 $— $34 $(91)$(345)$(57)
After-tax$15 $(80)$(207)$44 $— $26 $(72)$(272)$(46)












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


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


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





























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

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










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












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

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















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




























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

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


















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

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

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












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

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


 







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

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

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




























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

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































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


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


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




























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

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


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

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





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

 

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

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

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

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




27
The Travelers Companies, Inc.
Reinsurance Recoverables
image2a.gif
($ in millions)September 30, 2024December 31, 2023
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$4,026 $3,895 
Gross structured settlements (2)2,642 2,707 
Mandatory pools and associations (3) 1,527 1,659 
Gross reinsurance recoverables (4)8,195 8,261 
Allowance for estimated uncollectible reinsurance (5)(120)(118)
Net reinsurance recoverables$8,075 $8,143 
(1)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:
ReinsurerA.M. Best Rating of Group's Predominant ReinsurerSeptember 30, 2024
Swiss Re GroupA+ second highest of 16 ratings$688 
Berkshire HathawayA++ highest of 16 ratings493 
Munich Re GroupA+ second highest of 16 ratings350 
Axa GroupA+ second highest of 16 ratings173 
Hannover GroupA+ second highest of 16 ratings138 
The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, over half is attributable to 10 reinsurer groups.


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

The Company’s top five groups included in gross structured settlements is as follows:
GroupA.M. Best Rating of Group's Predominant InsurerSeptember 30, 2024
Fidelity & Guaranty Life Group  A third highest of 16 ratings$652 
Genworth Financial Group B- eighth highest of 16 ratings322 
John Hancock Group A+ second highest of 16 ratings223 
Symetra Financial CorporationA third highest of 16 ratings204 
Brighthouse Financial, Inc.A third highest of 16 ratings181 

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

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

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

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





















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
image2a.gif
($ in millions)September 30,
2024		December 31,
2023
Debt
Short-term debt
Commercial paper$100 $100 
Total short-term debt100 100 
Long-term debt
7.75% Senior notes due April 15, 2026200 200 
7.625% Junior subordinated debentures due December 15, 2027125 125 
6.375% Senior notes due March 15, 2033 (1)500 500 
6.75% Senior notes due June 20, 2036 (1)400 400 
6.25% Senior notes due June 15, 2037 (1)800 800 
5.35% Senior notes due November 1, 2040 (1)750 750 
4.60% Senior notes due August 1, 2043 (1)500 500 
4.30% Senior notes due August 25, 2045 (1)400 400 
8.50% Junior subordinated debentures due December 15, 204556 56 
3.75% Senior notes due May 15, 2046 (1)500 500 
8.312% Junior subordinated debentures due July 1, 204673 73 
4.00% Senior notes due May 30, 2047 (1)700 700 
4.05% Senior notes due March 7, 2048 (1)500 500 
4.10% Senior notes due March 4, 2049 (1)500 500 
2.55% Senior notes due April 27, 2050 (1)500 500 
3.05% Senior notes due June 8, 2051 (1)750 750 
5.45% Senior notes due May 25, 2053 (1)750 750 
Total long-term debt8,004 8,004 
Unamortized fair value adjustment34 35 
Unamortized debt issuance costs(105)(108)
7,933 7,931 
Total debt8,033 8,031 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)29,807 28,050 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$37,840 $36,081 
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)21.2 %22.3 %
(1)  Redeemable anytime with “make-whole” premium. 


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

(1) Estimated and Preliminary
 




















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

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

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

34
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below.  In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure.
 
In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance. 
 
Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders’ equity, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.
 
Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.
 
Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable.  Segment income (loss) is determined in the same manner as core income (loss) on a segment basis.  Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions.  Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies.  Core income (loss) per share is core income (loss) on a per common share basis.
 
Average shareholders’ equity is (a) the sum of total shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.  Adjusted shareholders’ equity is shareholders’ equity excluding net realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders’ equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)).  Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of
($ in millions)March 31, 2023June 30, 2023September 30, 2023December 31, 2023March 31, 2024June 30, 2024September 30, 2024
Shareholders’ equity$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 $27,696 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,868 4,576 6,466 3,129 3,721 3,976 2,111 
Net realized investment (gains) losses, net of tax(5)24 74 81 (27)24 (18)
Adjusted shareholders’ equity$26,915 $26,455 $26,518 $28,131 $28,716 $28,862 $29,789 
Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented.  Core return on equity is the ratio of annualized core income (loss) to adjusted average shareholders’ equity for the periods presented.  In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management. 

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.  In the opinion of the Company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business.  This measure is used to assess each segment’s business performance and as a tool in making business decisions.
 
A catastrophe is a severe loss designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure.  Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount.  Their effects are included in net and core income and claims and claim adjustment expense reserves upon occurrence.  A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools.  The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company.  Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2024 ranges from $20 million to $30 million of losses before reinsurance and taxes.
 
Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years.  In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.
 
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.

36
v3.24.3
Cover Page
Oct. 17, 2024
Cover [Abstract]  
Document type 8-K
Document period end date Oct. 17, 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
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