The Travelers Companies, Inc. · NYSE:TRV

The Travelers Companies — Travelers Companies — Investor Presentation (September 2022)

19 slides from The Travelers Companies's investor presentation, Sep 7, 2022

  1. Slide 1: Long-Term Financial Strategy: Create Shareholder Value

    LONG - TERM FINANCIAL STRATEGY CREATE SHAREHOLDER VALUE Objective: Mid – Teens Core ROE Over Time Balanced approach to rightsizing capital and growing book value per share over time Generation of top – tier earnings and capital substantially in excess of growth needs Meaningful and sustainable compe

  2. Slide 2: Long-Term Financial Strategy: Create Shareholder Value

    LONG - TERM FINANCIAL STRATEGY CREATE SHAREHOLDER VALUE Objective: Mid – Teens Core ROE Over Time Balanced approach to rightsizing capital and growing book value per share over time Generation of top – tier earnings and capital substantially in excess of growth needs Meaningful and sustainable compe

  3. Slide 3: Technology Investments & Routine but Necessary Expenditures

    2016 2017 2018 2019 2020 2021 Chart Strategic Investment Routine but Necessary Expenditures Meaningfully increased our overall technology spend over the last five years Significantly reduced our expense ratio at the same time through our strategic focus on optimizing productivity and efficiency Impr

  4. Slide 4: Innovation Success

    2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Avg. 2012 – 2016 2017 2018 2019 2020 2021 Avg. 2012 – 2016 2017 2018 2019 2020 2021 Avg. 2012 – 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $32.0B $22.4B 29.4% AVG

  5. Slide 5: Select P&C Peers – Core Return on Equity

    SELECT P&C PEERS – 10 YEAR CORE RETURN ON EQUITY Core ROE as Reported 1 2SHUDWLQJ 52(DV5HSRUWHGRU1HW,QFRPH52(H[ 5HDOL]HG*DLQVDQG/RVVHVDVFDOFXODWHGE\%ORRPEHUJLI2SHUDWLQJ52(LVQRWGLVFORVHG 3HHU*URXSLQFOXGHV$,*$//&%&,1)&1$+,*3*57+*6,*,DQG:5% Ξ %ORRPEHUJ)LQDQFH/38VHGZLWKSHUPLVVLRQRI%ORRPEHUJ Travelers co

  6. Slide 6: Leading Core Return on Equity at Significantly Lower Volatility

    Low High 10Y Volatility 1 LEADING CORE RETURN ON EQUITY AT SIGNIFICANTLY LOWER VOLATILITY <HDU&RUH52(9RODWLOLW\YV$YHUDJH52( 10Y (2012 - 21) Core Return on Equity (Average) 2 TRV ï 9RODWLOLW\DVPHDVXUHGE\6KDUSH5DWLRFDOFXODWHGDVWKHPHDQRI&RPSDQ\ ´ ; µ 2SHUDWLQJ52(DV5HSRUWHGRU1HW,QFRPH52(H[ 5HDOL]HG*DLQV

  7. Slide 7: Adjusted Book Value per Share Over Time

    $'-867('%22.9$/8(3(56+$5(29(57,0( $36.20 $109.76 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 From 2006 – 2021 Adjusted Book Value per Share increased from $36.20 to $109.76, a 7.7% CAGR

  8. Slide 8: Strong Shareholder Value: Total Shareholder Return

    7RWDO6KDUHKROGHU5HWXUQ 8 1/1/2008 8 /26/2022 5HSUHVHQWVWKHFKDQJHLQVWRFNSULFHSOXVWKHFXPXODWLYHDPRXQWRIGLYLGHQGVDVVXPLQJGLYLGHQGUHLQYHVWPHQW)RUHDFK\HDUR QW KHFKDUW WKURXJK WRWDOUHWXUQLVFDOFXODWHGZLWK-DQXDU\ DVWKHVWDUWLQJSRLQWDQG'HFHPEHU RIWKHUHOHYDQW\HDUDVWKHHQGLQJSRLQW)RU WRWDO UHWXUQLVFDOFXODWHGZLWK

  9. Slide 9: We Are Confident About Our Outlook

    WE ARE CONFIDENT ABOUT OUR OUTLOOK We remain well positioned to deliver industry - leading returns and shareholder value over time 6XFFHVVIXOO\ FUHDWHGYDOXHRYHUGHFDGHV LQD YDULHW\RIPDFUR HFRQRPLFFRQGLWLRQV (QVXULQJRXUFRQWLQXHGVXFFHVV WKURXJK FRPSHWLWLYHDGYDQWDJHV WKDWDUHUHOHYDQW GLIIHUHQWLDWLQJDQGGL

  10. Slide 10: Appendix

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  11. Slide 11: Explanatory Note

    EXPLANATORY NOTE This presentation contains, and management may make, certain “forward - looking statements” within the meaning of the Private Secu rities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward - looking statemen ts. Words such as “ma

  12. Slide 12: Disclosure

    DISCLOSURE ,QWKLVSUHVHQWDWLRQZHPD\UHIHUWRVRPHQRQ *$$3ILQDQFLDOPHDVXUHV)RUDUHFRQFLOLDWLRQRIWKHVHPHDVXUHVWRWKHPRVW FRPSDUDEOH*$$3PHDVXUHVSOHDVHVHHWKHSDJHVWKDWIROORZ)RUDJORVVDU\RIVHOHFWHGLQVXUDQFHWHUPVZHUHIHU\RXWRRXUP RVW UHFHQWDQQXDOUHSRUWRQ)RUP .ILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ6(&DVXSGDWHG

  13. Slide 13: Glossary of Financial Measures and Reconciliations of GAAP Measures to Non-GAAP Measures

    */266$5<2)),1$1&,$/0($685(6$1'5(&21&,/,$7,2162) *$$30($685(672121 *$$30($685(6 13 The following measures are used by the Company’s management to evaluate financial performance against historical results, to est ablish performance targets on a consolidated basis and for other reasons as discussed bel

  14. Slide 14: Reconciliation of Shareholders' Equity to Adjusted Shareholders' Equity

    5(&21&,/,$7,212)6+$5(+2/'(56 · (48,7<72$'-867('6+$5(+2/'(56 · (48,7<$1'&$/&8/$7,212)5(785121(48,7<$1'&25(5(785121(48,7< $GMXVWHGVKDUHKROGHUV · HTXLW\ LVVKDUHKROGHUV · HTXLW\H[FOXGLQJQHWXQUHDOL]HGLQYHVWPHQWJDLQVORVVHVQHWRIWD[LQFOXGHGLQVKDUHKROGHUV · HTXLW\QHWUHDOL]HGLQYHVWPHQWJDLQVORVVHVQHWRIWD[IRUWK

  15. Slide 15: Calculation of Return on Equity and Core Return on Equity

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

  16. Slide 16: Reconciliation of After-Tax Underlying Underwriting Income to Net Income

    16 Reconciliation of After - Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain) to Net Income 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) ($ in millions, after-tax) 2021 202

  17. Slide 17: Reconciliation of Book Value per Share and Shareholders' Equity

    17 5(&21&,/,$7,212)%22.9$/8(3(56+$5($1'6+$5(+2/'(56 · (48,7<72&(57$,1121 *$$30($685(6 %RRNYDOXHSHUVKDUH LVWRWDOFRPPRQVKDUHKROGHUV · HTXLW\GLYLGHGE\WKHQXPEHURIFRPPRQVKDUHVRXWVWDQGLQJ $GMXVWHGERRNYDOXHSHUVKDUH LVWRWDOFRPPRQVKDUHKROGHUV · HTXLW\H[FOXGLQJQHW XQUHDOL]HGLQYHVWPHQWJDLQVDQGORVVHVQHWRIWD[LQF

  18. Slide 18: Reconciliation of Invested Assets to Invested Assets Excluding Net Unrealized Investment Gains

    5(&21&,/,$7,212),19(67('$66(7672,19(67('$66(76(;&/8',1*1(7815($/,=(',19(670(17*$,16/266(6 )RUDJORVVDU\RIRWKHUILQDQFLDOWHUPVXVHGLQWKLVSUHVHQWDWLRQZHUHIHU\RXWRWKH&RPSDQ\ · VPRVWUHFHQWDQQXDOUHSRUWRQ)RUP .ILOHGZLWKWKH6(& 18 ($ in millions, pre-tax) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Inves

  19. Slide 19: investor.travelers.com

    investor.travelers.com _

Travelers Companies — Investor Presentation (September 2022) on 6ix