The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — 34th Annual AIFA Conference (March 2009)
17 slides from The Travelers Companies's conference presentation, Mar 2, 2009
Slide 1: Well Positioned For The Future
Well Positioned For The Future Gabriella Nawi Senior Vice President, Investor Relations 34th Annual AIFA Conference March 2, 2009
Slide 2: Explanatory Note
Explanatory Note This presentation 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. Specifically, earnings
Slide 3: An Industry Leader, With Strong Operating Focus
An Industry Leader, With Strong Operating Focus OperatingReturn Operating Returnon onEquity Equity 9.6% 17.9% 17.7% 12.4% 12% ¾ Jan. 1, 2005 through Dec. 31, 10.6% 11.1% 11.0% 2008 average annual 10% 1.4% 1.4% 1.6% operating return on equity of 8.1% approximately 14.5% 8% 6% 6.8% 6.7% ¾ Very strong
Slide 4: Diversified Business Profile
Diversified Business Profile $21.7Billion $21.7 BillionNet NetWritten WrittenPremium Premium FullYear Full Year2008 2008 Homeowners & Select Other Accounts Commercial Personal Accounts Automobile National Accounts International Industry-Focused Underwriting Bond & Financial Products Target Risk Spec
Slide 5: Business Insurance: Net Written Premiums
Business Insurance: Net Written Premiums ($ in millions) 2008 2007 2006 Select Accounts $ 2,756 $ 2,711 $ 2,663 Commercial Accounts 2,524 2,518 2,376 National Accounts 996 1,056 1,135 Industry-Focused Underwriting 2,396 2,301 2,196 Target Risk Underwriting 1,593 1,665 1,629 Specialized Distribution
Slide 6: Business Insurance: Illustrative Business Statistics
Business Insurance: Illustrative Business Statistics Retention 2008 2006 2007 1Q 2Q 3Q 4Q FY Select Accounts 82% 81% 81% 81% 82% 82% 82% Commercial Accounts 86% 85% 86% 85% 86% 88% 86% Other Business Insurance1 81% 81% 82% 82% 82% 82% 82% ¾ Overall, retention remains at historically high levels Rene
Slide 7: Travelers Key Competitive Advantages
Travelers Key Competitive Advantages Unparalleled Product Breadth Industry Leading Significant Scale Customer Focus & Local Access Analytics Ease of Doing Business Consistent strategy Consistent strategy has has and and will will continue continue to to attract business attract business 6
Slide 8: Ease of Doing Business
Ease of Doing Business ¾ Over the past few years, Travelers has continued to invest in technologies making it easier for agents and customers to do business ¾ For example: TravelersExpressSM, an enhanced quote-to-issue agency platform and multivariate price program in Select Accounts • Streamlined p
Slide 9: Underwriting Specialization
Underwriting Specialization ¾ Tailored risk management solutions for customers and agents • Tailored products or coverage to more than 20 different industry segments • Industry specific risk control products and services • Pre-qualified leads; packaged sales kits; joint advertising Submissions:TRV S
Slide 10: Customer Focus: Claim Example
Customer Focus: Claim Example ¾ Goal: manage claim costs and deliver effective service ¾ Initiated enterprise wide catastrophe response model • Significantly reduced reliance on external claim adjusters • Create scalable model allowing for consistent claim experience during multiple catastrophic eve
Slide 11: Recent Market Conditions
Recent Market Conditions National Property Commercial Accounts 0% 0% Jul’08 Dec’08 Jul’08 Dec’08 Rate % Exposure/Other % Impact of Impact of improving improving rate rate trend trend across across several several lines, lines, partially offset partially offset by by lower lower exposures exposures d
Slide 12: Opportunity to Grow Position in Marketplace
Opportunity to Grow Position in Marketplace ($ in millions) Commercial Lines 2007 Market Share % Direct Written Rank Company Premium 2007 2006 2005 1 AIG $ 23,361 10.8 10.5 9.8 1 2 Liberty Mutual 14,719 6.8 6.5 6.1 3 Travelers 14,238 6.6 6.4 6.7 4 Zurich 11,694 5.4 5.3 5.4 5 Hartford 7,129 3.3 3.4 3
Slide 13: Annex
TRAVELERS) Annex 12
Slide 14: Return on Equity Reconciliations
Return on Equity Reconciliations Twelve Months Ended December 31, ($ in millions; after-tax) 2008 2007 2006 2005 Fixed investment portfolio income $ 2,462 $ 2,518 $ 2,375 $ 2,127 Non-fixed investment portfolio income (loss) (163) 397 337 311 Net investment income 2,299 2,915 2,712 2,438 Holding comp
Slide 15: Earnings Per Share Reconciliations
Earnings Per Share Reconciliations ($ in millions, except per share amounts; after-tax) 2008 2007 2006 2005 Net income Operating income $ 3,195 $ 4,500 $ 4,200 $ 2,026 Net realized investment gains (losses) (271) 101 8 35 Income from continuing operations 2,924 4,601 4,208 2,061 Discontinued operati
Slide 16: Disclosure
Disclosure • For further information, please see Travelers reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC’s website (www.sec.gov) • Copies of this presentation and related financial supplement are publicly available on the Travelers website
Slide 17: End Slide
a rN TRAVELERS |
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