The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — ST Paul Companies — Merger or Acquisition (February 2004)
13 slides from The Travelers Companies's merger presentation, Feb 23, 2004
Slide 1: Forward Looking Statements
Forward Looking Statements These materials contain certain forward-looking information about Travelers Property Casualty Corp. (“Travelers”), The St. Paul Companies, Inc. (“The St. Paul”) and the combined company after completion of the merger transactions that are intended to be covered by the safe
Slide 2: Operating Results
Operating Results ($ in millions, after tax, except per share) Dollars EPS 2003 2002 2003 2002 Net Income $ $ $ 2.72 $ 0.92 Realized (Gains) Losses (79 ) (0.33 ) 0.18 Discontinued Operations 0.09 0.03 Cum. Effect of Accounting Change 0.07 0.11 Operating Earnings $ $ $ 2.55 $ 1.24 Western MacArthur I
Slide 3: Net Income and Assets Under Management 1997-2003
$140 $144 $120 $100 $80 $60 $40 $20 $o 1997 1998 1999 2000 2001 2002 2003 @™Net Income -Assets Under Management (AUM)
Slide 4: Definitions and reconciliations note
Note: Definitions and reconciliations are provided in slides 30 through 35.
Slide 5: Debt and Total Capital Base
Dec 31, Dec 31, 2003 2002 ($ in millions) Conventional Debt $ 2,379 $ 2,270 Total Debt $ 3,750 $ 2,713 Total Capital Base $ 9,975 $ 9,348 Total Debt / Total Capital Base (2) 37.6 % 38.5 % Conventional Debt / Total Capital Base (2) 23.9 % 24.3 % (1) Excludes unrealized gains on fixed income securitie
Slide 6: 2003 Accomplishments
2003 Accomplishments
Slide 7: GAAP Combined Ratios
Note: See page 4 of the financial supplement for the reconciliation of underwriting gain before catastrophes and to net income (loss) and page 32 of the financial supplement for Glossary of Financial prior year development Measures. GAAP Combined Ratios
Slide 8: High Quality Balance Sheet
Note: See page 6 of financial supplement for impact of catastrophes and prior year reserve development on combined ratio and see page 32 of financial supplement for definitions of catastrophes and loss reserve development. High Quality Balance Sheet
Slide 9: Debt and capital
Dec 31, Dec 31, ($ in millions) 2003 2002 Temporary debt $ - $ All other debt (3) 2,675 2,694 Total debt 2,675 3,444 Minority interest Common equity (2) 10,926 9,412 Total debt and capital (2) $ 13,706 $ 12,943 Total debt to capital (2)
Slide 10: The St. Paul Travelers Companies
The St. Paul Travelers Companies Total Net Premiums Written ($ in billion) Full Year 2003 St. Paul Travelers Combined General Commercial Lines $2.5 $6.1 $8.6 Specialty Commercial Lines 4.9 2.0 6.9 Total Commercial Lines 7.4 8.1 15.5 Personal Lines – 5.1 5.1 Total Company NPW $7.4 $13.2 $20.6 The St.
Slide 11: Commercial Lines Position and Agency Concentration
Position # of States (1) #1 Top 2 positions Top 3 positions Top 5 positions < Top 5 positions Source: A.M. Best. Based on 2002 direct premiums written. The following A.M. Best lines of business are included in the definition of “Commercial Lines” as shown in the chart: Fire, Allied Lines, Ocean Mari
Slide 12: The "Go-To" National Market Company
• The “Go-To” National Market Company • Financial Strength • Compatible Cultures and Track Records of Successful Transactions • Paramount Objective - Driving Value Creation for Shareholders
Slide 13: Definitions & Reconciliations
Definitions & Reconciliations The following section contains definitions and reconciliations as required by the SEC’s Regulation G. Total Capital Base ($ in billions) December 31 2003 December 31 2002 Total Capital Base $ 9.98 $ 9.35 Debt 3.75 2.71 Mandatorily redeemable preferred securities (classi
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