The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — 33rd Annual AIFA Conference (March 2008)
24 slides from The Travelers Companies's conference presentation, Mar 3, 2008
Slide 1: 33rd Annual AIFA Conference
Bill Cunningham Senior Vice President, Business Insurance 33rd Annual AIFA Conference March 3, 2008
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: Maintaining the Momentum
Maintaining the Maintaining the Momentum Momentum Commercial Accounts Commercial Accounts Applying the Applying the Same Same Discipline Discipline Creating New Creating New Opportunities Opportunities 3
Slide 4: Travelers: A High Performing Company
Travelers: A High Performing Company ¾ An industry leader, with consistent strong performance Operating Income Per Income Diluted Share ROE 2007 $4.5 Billion $6.71 17.7% 2006 $4.2 Billion $5.90 17.9% 2005 $2.0 Billion $2.90 9.6% ¾ Very strong balance sheet • Negligible asset exposure and defined lia
Slide 5: Focused Product Breadth Delivers Sustainable Performance
Focused Product Breadth Delivers Sustainable Performance Commercial Select Accounts Accounts Industry Focused Underwriting Homeowners & Other Target Risk Underwriting Specialized Personal Automobile Dist. Flow Business Bond & Mid-Size, Individually Financial Underwritten Products International Natio
Slide 6: Core Multi-line Middle Market Businesses
Core Multi-line Middle Market Businesses Commercial Select Accounts Accounts Industry Focused Underwriting Homeowners & Other Target Risk Underwriting Specialized Personal Automobile Dist. Bond & Financial Products National Int'l Accounts 6 Note: Percentage of 2007 net written premiums excluding Bus
Slide 7: Commercial Accounts – Overview
Commercial Accounts – Overview ¾ Individually underwritten accounts; $50k - $1m premium/account • 2007 average premium per account $143K ¾ Primarily general liability, property, auto, workers’ compensation and umbrella ¾ Broad industry expertise ¾ National scale and local presence ¾ $2.74 billion gr
Slide 8: Commercial Accounts Strategy
Commercial Accounts Strategy ¾ Leading agency position across a broad distribution plant ¾ Unparalleled management information and analytic capabilities leveraged by size and scale ¾ Specialized industry focused products and underwriting ¾ New product development ¾ Culture of relentless local execut
Slide 9: Leading Agency Relationships
Leading Agency Relationships Average Share of Middle Market Agency Preference 2 Written Premium With Top 3 Carriers 1 Percentage of agents who responded that Travelers was one of the top 5 companies they do business with: 80%of of Commercial Lines Commercial Lines 80% thebook the book #1. Travelers:
Slide 10: Industry Leading Management Information and Analytic Capabilities
Industry Leading Management Information and Analytic Capabilities ¾ Size and scale of data ¾ Market insight ¾ Profit, loss and production performance • Class / Industry • Line of business • Age • Account ¾ Predictive modeling Tools&&dashboard Tools dashboardininthe thehands handsofoflocal localunder
Slide 11: Middle Market: Marketplace Rhetoric vs. TRV Actual Data
Middle Market: Marketplace Rhetoric vs. TRV Actual Data 4Q’07 Renewal Premium Rate Change Distribution 45% 38% 32% 20% 17% 13% 14% 4% 5% 2% 2% 3% 1% 2% 0% 0% -30% to -40% -20% to -30% -10% to -20% -1% to -10% no change 1% to 10% 10% to 20% 20% to 30% AverageRate Average RateChange Change CIAB Survey
Slide 12: Commercial Accounts Illustrative Business Statistics
Commercial Accounts Illustrative Business Statistics 10.0% Renewal Price Change Travelers 5.0% 0.0% -5.0% -10.0% 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 92% Retention Travelers 82% 72% 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 Maintainingreasonable Maintaining reasonablerate rateand an
Slide 13: Commercial Accounts Illustrative Business Statistics
Commercial Accounts Illustrative Business Statistics 10.0% Renewal Price Change Travelers Peer 1 5.0% Peer 2 0.0% -5.0% -10.0% 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 92% Retention Travelers Peer 1 Peer 2 82% 72% 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 Superiorexecution Superior exec
Slide 14: Drivers of New Business Success
Drivers of New Business Success ($ in millions) New Business Premium $561 ase New Distributors cre In New Product % 31 Add Lines to Existing Customers $427 Increased Opportunities 2006 2007 CreatingOpportunities Creating Opportunitiesto todrive drivepositive positivenew newbusiness businessresults r
Slide 15: Increased Opportunities
Increased Opportunities Generating more opportunities New Business Submissions New Business Quotes 32% 32% increase increase 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Applying continued discipline New Business Quotes Written New Business Hit Ratio -0.2% -0.2% -9.2pt -9.2pt decrease decrease decrease decrease 1Q 2Q 3Q
Slide 16: Creating Opportunities: Adding Lines to Existing Customers
Creating Opportunities: Adding Lines to Existing Customers ($ in millions) New Business Premium Existing Customers e c reas I n 18% $84 $71 2006 2007 Enhancingour Enhancing ourrelationships relationshipswith withcurrent currentcustomers customers 16 Note: Represents commercial accounts new net writt
Slide 17: Creating Opportunities: New Products
Creating Opportunities: New Products ¾ Tailored risk management solutions for customers and agents • Tailored products or coverage Metals • Industry specific risk control products/services Food Wood • Pre-qualified leads Plastic & Rubber Goods Wholesale • Packaged sales kits Mineral Products Textile
Slide 18: Creating Opportunities: New Products
Creating Opportunities: New Products ($ in millions) New Business Premium Auto Dealers, Printers/Publishers, Educational Institutions, Hotel/Motels and Restaurants ase r e In c 15% 1 $84 $39 2006 2007 Successfullaunch Successful launchof offive fivenew new programs programs 18 Note: Represents comme
Slide 19: Creating Opportunities: New Distributors
Creating Opportunities: New Distributors ($ in millions) New Business Premium New Commercial Account Distributors as e r e Inc 70% $46 $27 2006 2007 Utilizingthe Utilizing thepower powerof ofthe thefranchise franchiseto tobuild buildnew newrelationships relationships 19 Note: Represents commercial a
Slide 20: Creating Opportunities: Account Executive Productivity
Creating Opportunities: Account Executive Productivity ($ in millions) Average New Business Per Account Executive as e r e Inc 33% $1.6 $1.2 2006 2007 Improvedproductivity Improved productivity 20
Slide 21: Select Accounts: TravelersExpress
SM Select Accounts: TravelersExpress ¾ Sales ¾ Sales are are being being driven driven by by increased increased flow flow ¾ Flow ¾ Flow is is being being driven driven by by increased increased ease ease of of use use • Broader market • Broader market reach reach • Smoother process • Smoother proce
Slide 22: Leveraging Strengths Across All Businesses...
Leveraging Strengths Across All Businesses... ¾ Leading agency position across a broad distribution plant Select Commercial Accounts ¾ Unparalleled actionable information and Accounts analytic capabilities leveraged by national Industry Focused Underwriting Homeowners & Other scale Target Risk Under
Slide 23: 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 are publicly available on the Travelers website (www.travelers.com) 23
Slide 24: End Slide
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