The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — Investor Day (June 2009)
161 slides from The Travelers Companies's investor day presentation, Jun 4, 2009
Slide 1: Investor Day June 4, 2009
The Travelers Companies, Inc. Investor Day June 4, 2009
Slide 2: Agenda
AGENDA 12:15 pm Gabriella Nawi, Senior Vice President - Investor Relations 12:20 pm Jay Fishman, Chairman & Chief Executive Officer 12:40 pm Jay Benet, Vice Chairman & Chief Financial Officer 1:00 pm Brian MacLean, President & Chief Operating Officer Q&A 2:00 pm Break Joe Lacher, Executive Vice Pres
Slide 3: 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 4: Jay S. Fishman, Chairman and CEO
Jay S. Fishman Chairman and Chief Executive Officer 3
Slide 5: Long-term Financial Strategy
Long-term Financial Strategy Balanced Generation of Meaningful approach to top tier earnings and rightsizing capital and capital sustainable and substantially in competitive growing book excess of growth advantages value per share needs over time Create Shareholder Create Shareholder Value Value Obj
Slide 6: Long-term Financial Strategy
Long-term Financial Strategy Financial Company Employees Community 25
Slide 7: Returns Consistent With Financial Targets
Returns Consistent With Financial Targets ($ in billions) $4.6 $4.5 $4.2 $4.2 Income from Continuing Operations Operating Income $3.2 $2.9 $2.1 $2.0 $0.8 $0.7 1 2005 2006 2007 2008 1Q'09 ROE 9.5% 17.9% 18.0% 11.4% 10.2% Operating ROE 9.6% 17.9% 17.7% 12.4% 12.4% From January From January 1, 1, 2005
Slide 8: Returns Consistent With Financial Targets
Returns Consistent With Financial Targets ($ in billions) Operating Income $0.1 After-tax Catastrophes $0.1 $4.5 $0.9 $4.2 $1.5 $3.2 $2.0 $0.1 $0.8 1 2005 2006 2007 2008 1Q'09 Excludes Nuveen which was a discontinued operation 1 47 See Annex for reconciliation of non-GAAP financial measures to the m
Slide 9: Top Line Outperformance
Top Line Outperformance Net Written Premium Trends 9% 6% 3% 0% -3% -6% -9% 1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 Travelers1 Competitor Group2 Outperformed competitor Outperformed competitor group group for for 14 14 quarters quarters by
Slide 10: Well Positioned Strategically & Tactically
Well Positioned Strategically & Tactically Strategic Positioning Tactical Positioning 69
Slide 11: Well Positioned Strategically
Well Positioned Strategically Product Product Development Development Best and Best and Customer Customer Brightest Brightest Experience Experience Talent Talent Strategic Positioning Brand Brand Distribution Distribution Development Development Strength Strength Management Management Analytics Anal
Slide 12: Well Positioned Tactically
Well Positioned Tactically Return Return Adequacy // Adequacy Pricing Pricing Strategy Strategy Expense Expense Marketplace Marketplace Tactical Orientation Orientation Management // Management Positioning a.k.a a.k.a Investment Investment “Gas Pedal” “Gas Pedal” For Future For Future Staffing Staff
Slide 13: Brand Development
Brand Development TRAVELE eos Insuranee. In- “synch. TRAVELERS — insurance. In-synch: TRAVELERS Nu nm rN TRAVELERS .
Slide 14: Personal Insurance Direct to Consumer
Personal Insurance Direct to Consumer: Long-Term Strategic Initiative Personal Insurance – Auto Market Share Consumer Purchasing Trends 1989 1997 2007 Independent Independent Captive Independent Captive Agency Agency Captive Agency Agency Agency 41% 35% Agency 32% 36% 47% 63% Direct Direct 5% Direct
Slide 15: Proven Financial Performance
Personal Personal Unparalleled Unparalleled Insurance Insurance Direct to to Product Product Direct Consumer Consumer Breadth // Breadth Initiative Initiative Talent Talent Brand Brand Financial Financial Development Development Strength Strength Proven Financial Flight Flight Performance Significan
Slide 16: Overview for Remainder of the Day
Overview for Remainder of the Day ¾ Jay Benet ¾ Brian MacLean • Q&A • Break ¾ Joe Lacher ¾ Marc Schmittlein • Q&A ¾ John Albano ¾ Alan Schnitzer • Q&A ¾ Close 12 15
Slide 17: Jay S. Benet, Vice Chairman & CFO
Jay S. Benet Vice Chairman & Chief Financial Officer 16
Slide 18: Very Strong Financial Position
Very Strong Financial Position ($ and shares in millions, except per share amounts) Capital ¾ At or above target levels for all rating agencies Mar. 31, Dec. 31, ¾ Continued to generate excess capital 2009 2008 Debt $ 6,039 $ 6,181 Leverage Preferred equity 87 89 Common equity 1 25,867 25,374 ¾ Debt
Slide 19: Highly Successful Debt Issuance
Highly Successful Debt Issuance ¾ On May 28, priced a $500 million public offering of 5.90% 10-year senior notes ¾ Pricing consistent with similar issuance last year despite capital market turmoil: • $500 million 10-year notes on May 13, 2008 at 5.80% • $500 million 10-year notes on May 28, 2009 at
Slide 20: Resumed Share Repurchases in 2Q'09
Resumed Share Repurchases in 2Q’09 ¾ Capital and liquidity levels have been in excess of targets ¾ Recommenced share repurchases in May 2009 as market tone improved ¾ Repurchased $575 million or 14.4 million shares through June 2, 2009 • Average purchase price per share of $39.96 • Compares to book
Slide 21: Enterprise Risk Management
Enterprise Risk Management ¾ Embedded in the culture of the organization • Conservative/prudent investing for the long-term • Thoughtful approach to underwriting • Strong corporate governance at Board and management levels ¾ Seasoned, experienced, stable management team ¾ Chief Risk Officer oversees
Slide 22: Enterprise Risk Management: Areas of Focus
Enterprise Risk Management: Areas of Focus ¾ Credit/reinsurance ¾ Competition • Reinsurance recoverables ¾ Distribution • Exposure aggregation ¾ Economic capital • Credit aggregation ¾ Insurance product • Credit limits ¾ Operational risk ¾ Investment ¾ Treasury ¾ Economic ¾ Legal/regulatory 5 21
Slide 23: Aggregation of Credit Risk
Aggregation of Credit Risk ¾Travelers is exposed to credit risk through two major activities: • Underwriting activities • Investing activities ¾Travelers mitigates credit exposure from underwriting activities in many ways, including obtaining collateral – primarily letters of credit ¾Travelers Credi
Slide 24: Credit Aggregation
Credit Aggregation Major Client Net Exposures Greater than $100 Million (1) % Change Prior S&P As of X/XX/XX Net Exposure From Qtr. (or Equiv.) Mkt Cap 3 mo Chg Bond Business Reinsurance U/W Letters U/W & LOC Stuctured Total Net Excluding 4QXX Rank Rank CLIENT RATING $B Stk Prc Surety Insurance Reco
Slide 25: Construction Surety Proprietary Credit Model
Construction Surety Proprietary Credit Model In-Force Aggregate 1YR Prob of Limit Category Default As of Mar 31, 2009 Excellent 0.03% XX% Above Average 0.34% XX% Average 0.56% XX% 85% Below Average 1.37% XX% High Risk 2.8% to 8.9% XX% 15% 100% Additionalrisk Additional riskmitigation mitigationappli
Slide 26: Premiums and Contractholder Receivables
Premiums and Contractholder Receivables Agency and direct billed premiums receivable Ability to cancel policies Premiums receivables overdue of $89 million or 1.9% Allowance for bad debts $75 million or 1.6% Projected ultimate receivables from loss 84% collateralized, principally by letters of credi
Slide 27: Reserve Comparisons
Reserve Comparisons ¾ The following exhibits provide a comparison of certain Travelers net paid-to- incurred ratios and net IBNR-to-incurred ratios with the industry and a peer group • Travelers information is based on the 2008 combined annual statutory statement of the company’s domestic insurance
Slide 28: Net Paid to Incurred Ratios – 2008 Industry Comparison
Net Paid to Incurred Ratios – 2008 Industry Comparison Accident Workers' Compensation Accident Private Passenger Auto Liability Accident Commercial Auto Liability Year Peer(1) TRV Industry Year Peer(1) TRV Industry Year Peer(1) TRV Industry 1999 82.9% 78.1% 86.0% 1999 99.6% 100.0% 99.6% 1999 97.8% 9
Slide 29: Net IBNR to Incurred Ratios – 2008 Industry Comparison
Net IBNR to Incurred Ratios – 2008 Industry Comparison Accident Workers' Compensation Accident Private Passenger Auto Liability Accident Commercial Auto Liability Year Peer (1) TRV Industry Year Peer (1) TRV Industry Year Peer (1) TRV Industry 1999 5.5% 7.0% 5.0% 1999 0.4% -0.1% 0.2% 1999 0.3% 0.6%
Slide 30: Continuing to Grow Book Value Per Share
Continuing to Grow Book Value Per Share Including Impact of FAS 115 ($ in billions, except per share amounts) $50 Cumulative Share Repurchases: $6.2 Cumulative Common Dividends: $2.9 $45.12 R: 9% $45 CA G $43.12 $42.22 QTD Change = 5% $40 $36.86 Y-o-Y Change = 2% $35 $31.94 $31.35 Y-o-Y Change = 15%
Slide 31: Components of Operating Return on Equity
Components of Operating Return on Equity ¾ For the first quarter of 2009 9.6% 17.9% 17.7% 12.4% 12.4% Investment income from the fixed 11.1% income portfolio, net of interest 11.0% 10.6% expense on holding company 1.4% 1.6% 1.4% 8.1% 6.5% debt, produced an operating return on equity of 8.2%, down 6.
Slide 32: Components of Return on Equity Including Net Realized Investment Gains/(Losses)
Components of Return on Equity 1 Including Net Realized Investment Gains/(Losses) 9.5% 17.9% 18.0% 11.4% 10.2% 11.1% 10.9% 10.4% 1.4% 1.5% 1.4% 8.1% 6.4% Including net realized 6.8% 6.7% 5.9% investment gains/(losses), average annual return on 4.4% 9.0% 9.7% 9.4% 8.7% equity was approximately 8.2% 1
Slide 33: 2009 Annual Guidance
2009 Annual Guidance ¾ Travelers expects that its full year 2009 operating income per diluted share will be in the range of $4.55 to $4.95, an increase from the previously announced range of $4.50 to $4.90 due to an increase in assumed share repurchase activity ¾ This guidance includes the reported
Slide 34: Brian MacLean, President & COO
Brian MacLean President & Chief Operating Officer 33
Slide 35: Marketplace Dynamics
Marketplace Dynamics ¾ Pricing is broadly firming ¾ Dramatic flight to quality • Retentions stable and continue to be at historically high levels • Quantity and quality of new business opportunities increasing ¾ Current margins within the company’s target range 1 34
Slide 36: Marketplace Dynamics: Renewal Premium Change
Marketplace Dynamics: Renewal Premium Change1 Personal Insurance Automobile Homeowners and Other 8% 8% 4% 4% 0% 0% 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1 Each percentage represents the estimated change in average premium on policies that renew, including rate and
Slide 37: Marketplace Dynamics: Rate & Renewal Premium Change
Marketplace Dynamics: Rate & Renewal Premium Change Commercial Lines Select Accounts Commercial Accounts 0% 0% 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 Rate2 % RPC3 % Other Business Insurance1 Management Liability 0% 0% 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1Q’08 2Q’0
Slide 38: Marketplace Dynamics: Retention
Marketplace Dynamics: Retention1 Personal Insurance Automobile Homeowners and Other 90% 90% 80% 80% 70% 70% 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1 The ratio of expected number of renewal policies that will be retained throughout the annual policy period to the nu
Slide 39: Marketplace Dynamics: Retention
Marketplace Dynamics: Retention Commercial Lines Select Accounts Commercial Accounts 90% 90% 80% 80% 70% 70% 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 Other Business Insurance1 Management Liability 90% 90% 80% 80% 70% 70% 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 Apr’09 1Q’08 2Q’
Slide 40: Marketplace Dynamics: Submission Flow
Marketplace Dynamics: Submission Flow Commercial Lines Select Accounts1 Commercial Accounts G r owth r owth 74% 54% G Apr’09 YTD Apr’09 YTD +33% +11% 2006 2007 2008 2006 2007 2008 Other Business Insurance2 Management Liability G r owth rowth 25% 24 % G Apr’09 YTD Apr’09 YTD +10% +23% 2006 2007 2008
Slide 41: Travelers Reporting Segments
Travelers Reporting Segments 2008 Net Written Premium: $21.7 Billion Personal Insurance $7.0 Billion / 32% Financial, Professional Business & International Insurance Insurance $11.2 Billion / 52% $3.5 Billion / 16% Providing wide Providing wide variety variety of of property/casualty products proper
Slide 42: Travelers Segments – Granular View
Travelers Segments – Granular View 2008 Net Written Premium: $21.7 Billion Homeow ners and Other Select Accounts Automobile Commerical Accounts International Construction Bond & Financial Technology Products Public Sector National Programs National Property Oil & Gas Northland National Accounts Agri
Slide 43: Travelers Segments – Today's Approach
Travelers Segments – Today’s Approach Travelers U.S. Domestic 2008 Net Written Premium Select Accounts Individual Underwritten Flow Business ¾ Business Insurance Business ¾ Personal Insurance ¾ Financial & Professional Insurance1 ¾ Select Accounts (small Insurance Personal commercial) Insurance ¾ 52
Slide 44: Travelers Key Competitive Advantages
Travelers Key Competitive Advantages Unparalleled Product Breadth & Sophistication Customer Focus / Significant Scale Claim Effectiveness & Local Access Ease of Doing Business Unique and Unique and sustainable sustainable competitive competitive advantages have advantages have fueled fueled our our
Slide 45: Sustainable Competitive Advantages
Sustainable Competitive Advantages ¾ Benefits of product breadth • Responds to agents’ and customers’ needs with an abundance of related products across markets • Creates culture driving continuous product development • Increases cross-sell opportunities • Facilitates ability to leverage knowledge a
Slide 46: Travelers Key Competitive Advantages
Travelers Key Competitive Advantages Unparalleled Product Breadth & Sophistication Customer Focus / Industry Leading Significant Scale Claim Effectiveness Analytics & Local Access Ease of Doing Business Unique and Unique and sustainable sustainable competitive competitive advantages have advantages
Slide 47: Sustainable Competitive Advantages
Sustainable Competitive Advantages Industry Leading Analytics Metrics Produced Views Views Company-wide: Accessibleby: Accessible by: ¾ Profitability ¾Region ¾ Region ¾ Production ¾Office ¾ Office ¾ Pricing segmentation ¾Line ¾ LineofofBusiness Business ¾Industry ¾ Industry//Program Program ¾ Loss t
Slide 48: Sustainable Competitive Advantages
Sustainable Competitive Advantages Industry Leading Analytics Countrywide – CAG Field Controllable Income Statement Country-wide Income Statement Jane Smith – (xxx) xxx-xxxx Southwest Region CAG Field – Controllable Income Statement Region Income Statement John Smith – (xxx) xxx-xxxx Office Income S
Slide 49: Sustainable Competitive Advantages
Sustainable Competitive Advantages Industry Leading Analytics ¾ Providing profitability analysis based upon risk adjusted capital Select CAG - Field First Party Oper. Comb. % Net Oper. Comb. % Net Oper. Comb. % Net Profit % Ratio Grow th Profit % Ratio Grow th Profit % Ratio Grow th Property-NWP 12
Slide 50: Competitive Advantages Driving Profitability
Competitive Advantages Driving Profitability Above 18% ROE Within 13-18% ROE Below 13% ROE 1Q 2009 Policy View 31% 89% 89% ofof current current new new and and renewal renewal business business 18% at at or or above above target target 58% return return levels levels 13% 11% Note: Target ROE bands a
Slide 51: Direct to Consumer
Leveraging Travelers Competitive Advantages Strategic Investments SM Travelers 1st Choice+ ® Risk Management PLUS+ Online® Wrap+ ® Direct TravComp to e-CARMA Consumer Surety Peer Analysis Tool Claim U Concierge Claim TravelersExpress SM CAT Response TravelersExpressPlus SM Specialized Risk Control B
Slide 52: Leveraging Travelers Competitive Advantages
Leveraging Travelers Competitive Advantages Strategic Investments – Claim University ¾ Investment in the company’s talent, furthering its expertise ¾ Resulting in higher level of service and higher customer satisfaction 18 51
Slide 53: Leveraging Travelers Competitive Advantages
Leveraging Travelers Competitive Advantages Strategic Investments – Claim Effectiveness ¾ Redesigned catastrophe response process effectively executed in 2008 • Reduced dependence on independent adjusters • Improved response time • Eliminated inefficiencies • Improved customer satisfaction Catastrop
Slide 54: Current margins within the company's target range
¾ Current margins within the company’s target range • 89% of current business at or above target return levels ¾ Pricing is broadly firming ¾ Dramatic flight to quality • We are and will continue to invest to widen the gap • Market placing more value on our competitive strengths 20 53
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21 54
Slide 56: Joe Lacher, EVP Personal Insurance & Select Accounts
Joe Lacher Executive Vice President Personal Insurance & Select Accounts 55
Slide 57: Flow Businesses
Flow Businesses Personal Insurance Select Accounts 2008 Net Written Premium: Hom eow ners 2008 Net Written Premium: and Other $7.0 Billion $2.8 Billion Select Accounts Autom obile Commerical Accounts International Construction Bond & Financial Technology Products Public Sector National Programs Nati
Slide 58: Flow Business Characteristics
Flow Business Characteristics ¾ Small transaction size and high volume ¾ Portfolio risks more important than individual risks ¾ Scale Matters • Data Credibility • Outcome predictability • Efficiency ¾ Need sophistication and ease of delivery ¾ Requires integrated execution 2 57
Slide 59: Flow Business Success Drivers
Flow Business Success Drivers ¾ Claim effectiveness Loss management ¾ Product sophistication Efficiency ¾ Ease of doing business / Customer experience Accessibility ¾ Breadth and depth of distribution ¾ Information advantage Outstandingexecution Outstanding executionand andintegration integrationof
Slide 60: Personal Insurance Update
Personal Insurance Update ¾ Expanding product sophistication and strength • QuantumHomeSM – an important competitive advantage • QuantumAutoSM – strategy, progress and current view ¾ Leading claim effectiveness – loss management and customer experience ¾ Building distribution breadth and depth • Exp
Slide 61: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength ¾ Weak industry performance • Poor profitability • Limited execution effectiveness ¾ Very strong Travelers results • Leverage scale, sophistication and analytics • Portfolio mix managed to reduce volatility and enhance risk-return performance • Overweight relative
Slide 62: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Industry Underperformance ¾ Perennially poor industry profits • Only 4 years of underwriting profit in past 20 years ¾ Commonly viewed as loss leader ¾ Limited focus and investment in pricing sophistication 160% Homeowners Combined Ratio1 140% 120% 100% 80% 90 96
Slide 63: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Travelers vs. Industry ¾ Consistently outperformed the industry ¾ Results achieved through sophisticated analytics, catastrophe management and disciplined execution ¾ Introduction of QuantumHomeSM in 2006 improves leadership position Homeowners Combined Ratio1 Net
Slide 64: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Drivers of strong results ¾ Managed with focus on long term • Low frequency weather driven loss content • Results volatile on an annual / quarterly basis – less volatile over longer term • Political bias against disruptive actions ¾ Analytics advantage • Identify
Slide 65: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Travelers vs. Industry 50.0% Product Reach Pre – QuantumHomeSM Percentage of Polices 37.5% QuantumHomeSM Expanded Reach 25.0% 12.5% 0.0% Lower . Policy .Risk Distribution . .Higher Example: Territory Intimacy ¾ Leveraging scale and analytics Pre-Quantum: 5 territo
Slide 66: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Effective Catastrophe Risk & Return Management ¾ Historic East Coast concentration ¾ Growth driven outside East Coast states US TRV Pols / Pop 2009 YTD Population Policies Index Growth Warm Water Coastal 12% 5% 42% Cool Water Coastal 10% 18% 180% Coastal 22% 23% 1
Slide 67: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Effective Catastrophe Risk & Return Management ¾ Portfolio managed based on risk - return evaluation • Under-concentrated in warm water coastal • Over-concentrated in balance of coastal states • Growing non-coastal portfolio US TRV Pols / Pop 2009 YTD Population P
Slide 68: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Personal Insurance Homeowner Position Homeowners ¾ Top 15 market PI players represent 66% Total Direct Written of homeowner market PI Premium as a % Rank Carrier of Total DWP1 ¾ Homeowner represents a very different 1 State Farm 33% percentage of PI business 2 All
Slide 69: Homeowners – Building Upon Strength
Homeowners – Building Upon Strength Personal Insurance Homeowner Position Homeowners ¾ In a market with poor results and lack of Total Direct Written focus, Travelers is leveraging strengths: PI Premium as a % Rank Carrier of Total DWP1 • Analytics and data 9 Travelers 44% • Risk - return management
Slide 70: Product Sophistication
Product Sophistication Auto – Core Capability Strength Product Breadth PL Auto Travelers ¾ Focus has been on building core Marketplace 2000 2002 2004 2006 capabilities 1X 12X 100X 1000X 1X 12X 100X Q U A ¾ Leverages analytics and data $120 Billion Preferred Preferred and and N Standard T Standard U
Slide 71: Product Sophistication
Product Sophistication Auto – Current View ¾ Industry experiencing some profit pressure • Industry combined ratio increased from 97% in 2007 to 100% in 20081 • Loss inflation has outpaced rate increases ¾ Our results reflect this trend • Current returns (excluding Direct initiative impact) are at bo
Slide 72: Claim Effectiveness
Claim Effectiveness ¾ Faster • Identification, intervention and resolution speed ¾ Closer • More direct claimant contact and in-house management ¾ Tighter • Minimize non-indemnity related leakage 16 71
Slide 73: Claim Effectiveness
Claim Effectiveness Faster – Identification, Intervention & Resolution Issue Estimate Notice Property Jan 2004 336 hrs Current 63 hrs 11 days Auto Jan 2004 189 hrs Closer Contact 100% Current 6 days ment 53 hrs ro ve m p 2 xI 50% Percent of Claims Handled Face-to-Face 0% Before Current Best Office E
Slide 74: Claim Effectiveness
Claim Effectiveness Leveraging Multi-Line Advantage Proper Payment • Medical bill re-pricing Workers’ Fraud detection Triggers • Compensation 350k injuries Medical Involvement Automobile All • Nurse oversight 100k injuries Injury • Medical equipment review Triggers Claims • Pharmaceutical management
Slide 75: Claim Effectiveness
Claim Effectiveness Personal Auto Severity Property Damage / Collision Bodily Injury Index of Average Claim Payment Travelers1 Adjusted Industry2 Claiminitiatives Claim initiativesoffsetting offsettingbroader broaderseverity severity trend trend 1 Travelers Data – Calendar Year Paid Closed 12 month
Slide 76: What's next
What’s next ¾ Successfully enhanced core capabilities 9 Product sophistication 9 Claim effectiveness 9 Platform 9 Analytics ¾ Forward focus • Continue to strengthen core • Expand breadth and depth of distribution 20 75
Slide 77: Distribution – Agency Appointments
Distribution – Agency Appointments Written Premium ¾ Systematic strategy of agent “Same Stores” vs. “New Stores” appointments 29% Written Premium • YE 2005 had 10,000 agents • Added 8,000 since YE 2005 71% ¾ Enhanced geographic diversification strategy • 70% of appointments in West 2005 2006 2007 20
Slide 78: Distribution – Expanding Breadth
Distribution – Expanding Breadth Building Direct Capability ¾ Attractive independent agent marketplace ¾ Direct channel provides growing opportunity 1989 1997 2007 Independent Independent Independent Agency Captive Captive Captive Agency Agency 32% Agency Agency Agency 36% 35% 47% 41% 63% Direct 5%
Slide 79: Distribution – Expanding Breadth
Distribution – Expanding Breadth Building Direct Capability ¾ Recent investments facilitate readiness for direct build • Quantum • Claim initiatives • Systems, operational and information infrastructure ¾ Focus is on longer term • Strategic importance clear • Near term focus on disciplined execution
Slide 80: Distribution – Expanding Breadth
Distribution – Expanding Breadth Building Direct Capability ¾ Entering multi year development process ¾ During development phase, anticipate impact on results of: • 2009: additional 2½ points on Auto and 1 point on Homeowners and Other combined Ratio • Beyond 2009: earnings reduction of $100 – 150 M
Slide 81: Personal Insurance
Personal Insurance ¾ Strong product portfolio • Leading sophistication in auto and home • Unique and leverageable strength in homeowners ¾ Claim effectiveness is an advantage • Produces and controls predictable loss cost outcomes • Enhances customer experience ¾ Focus on distribution expansion • Inc
Slide 82: Marc Schmittlein, President – Select Accounts
Marc Schmittlein President – Select Accounts 81
Slide 83: Flow Businesses
Flow Businesses Personal Insurance Select Accounts 2008 Net Written Premium: Hom eow ners 2008 Net Written Premium: and Other $7.0 Billion $2.8 Billion Select Accounts Autom obile Commerical Accounts International Construction Bond & Financial Technology Products Public Sector National Programs Nati
Slide 84: Select Accounts
Select Accounts 2008 Net Written Premium: $2.8 Billion Homeow ners and Other Select Accounts Automobile Commerical Accounts International Construction Bond & Financial Technology Products Public Sector National Programs National Property Oil & Gas Northland National Accounts Agribusiness Inland Mari
Slide 85: Industry Leading Market Share and Profitability
Industry Leading Market Share and Profitability ¾ Travelers is the market leader in small commercial • Leading business platform • Broad based agency plant with deep relationships Top Commercial Multi-Peril Direct Written Premium Writers1 ($ in Billions) 2008 Direct Written Net Combined Rank Company
Slide 86: Travelers Excels at Both Ends of the Small Commercial Market
Travelers Excels at Both “Ends” of the Small Commercial Market No – Touch Low – Touch Total (Express) (Plus) 2008 Net Written $2.8 Billion $1.3 Billion $1.5 Billion Premium Average Premium $3,600 $2,300 $7,600 Per Policy ¾ Express success driven by: • Automated business and underwriting rules • Pric
Slide 87: Leveraging the Strengths of the Travelers Franchise
Leveraging the Strengths of the Travelers Franchise ¾ Quantum Auto pricing sophistication & analytics (Personal Lines) ¾ Workers’ compensation underwriting & claim expertise (National Accounts / Claim) ¾ IndustryEdge® coverage & industry underwriting specialization (Middle Market) ¾ Commercial autom
Slide 88: Formula for Success
Formula for Success Product and Pricing Sophistication Platform Class Breadth Line of Business Breadth Distribution AA “simple” “simple” formula, formula, but but all all five five components components are needed are needed and and working working effectively effectively 6 87
Slide 89: Formula for Success
Formula for Success Product and Pricing Sophistication / Platform TravelersExpressSM : PRE-LAUNCH (2006 & Prior) Refer to Low Underwriter Touch 83% F L O 3 Days W Agency Authority Issue 17% No Touch Only 17% Only 17% automatically automatically generated generated bindable bindable quotes; quotes; I
Slide 90: Formula for Success
Formula for Success Product and Pricing Sophistication / Platform TravelersExpressSM : POST-LAUNCH Refer to Low Underwriter Touch 18% 1 Day Refer to Underwriter F L CMP TravelersExpressSM O WC W Auto 82% Straight-thru Issue Processing No Touch Small Commercial Small Commercial Paradigm Paradigm Shif
Slide 91: Class
Formula for Success Class Breadth / Line of Business Breadth Mix of New Business TravelersExpressSM Results Pre-Launch Post-Launch Industry1 (2006) (2008) All B.O.B.S Other Class 28% 30% B.O.B.S. All B.O.B.S. All Other 46% Other 70% 72% 54% Achieving broader reach in both Auto Auto class & line 11%
Slide 92: Formula for Success
Formula for Success Class Breadth / Line of Business Breadth TravelersExpressSM Results Premiums1 Increased 14% %Δ Auto 16% Achieving broader Achieving broader reach across reach across industry industry WC lines lines 44% Auto 6% WC Sustaining growth growth inin Sustaining CMP commercial multi-peri
Slide 93: Workers' Compensation
Workers’ Compensation Identifying Opportunity Through Segmentation ¾ Select average workers’ compensation policy size: $2,600 ¾ Analytics allow Travelers to identify growth opportunities by segment ¾ Analytics integrated with current view of state environments for maximum profit potential Workers’ C
Slide 94: Workers' Compensation
Workers’ Compensation Identifying Opportunity Through Segmentation ¾ Select average workers’ compensation policy size: $2,600 ¾ Analytics allow Travelers to identify growth opportunities by segment ¾ Analytics integrated with current view of state environments for maximum profit potential Workers’ C
Slide 95: Workers' Compensation
Workers’ Compensation Identifying Opportunity Through Segmentation ¾ Segment and state optimization allows for differentiated rate and overall results Workers’ Compensation Written Premium Growth Excluding Rate Change Yields Yields Favorable Favorable Results Results “Worse-Unfavorable” “Worse-Unfav
Slide 96: Formula for Success
Formula for Success Distribution Total Agents & New Agent Appointments 7,800 New Agent Appointments Total Agents 4,800 2005 YE 2006 2007 2008 2009 YTD1 % of New Business 2% 7% 13% 19% By New Appointments The TravelersExpress TravelersExpressSMSM platform is attracting The platform is attracting prod
Slide 97: TravelersExpress Results
TravelersExpressSM Results Quote Flow Average Monthly Quote Volume: Year-Over-Year Growth Year a r 30% g Ove er agin v wthA +34% te Gro New Quo Business +31% +43% +22% 2005 2006 2007 2008 2009 YTD Strong quote Strong quote momentum momentum validates validates SM business model TravelersExpressSM Tr
Slide 98: TravelersExpress Results
TravelersExpressSM Results New Business New Business Premium as a Percentage of Expiring Premium 30% 25% 25% 25% +34% 20% +31% 15% 17% +32% 17% +30% 10% 2005 2006 2007 2008 2009 YTD 1 Increasing quote Increasing quote flow flow drives drives new new business business 1 2009 data thru April 16 97
Slide 99: TravelersExpress Results
TravelersExpressSM Results Policies in Force Policies in Force 625,000 +34% PIF Count growing 8% 525,000 +31% annually since 2006 +32% +30% 425,000 2005 2006 2007 2008 2009 YTD Policies in Policies in force force achieving achieving new new highs highs each each month month 17 98
Slide 100: Select Accounts
Select Accounts Significant Investments – Meaningful Barrier to Competitors Success Add New Agents Umbrella Express Automobile Express Workers’ Comp. Express Technology Segment CMP Express Platform 750 New Classes 2005 2006 2007 2008 2009 2010 TravelersExpressSM Product Manage risk, Manage risk, max
Slide 101: Select Accounts
Select Accounts Where Do We Go From Here? Pricing// Pricing Platform Platform Product Product Sophistication Sophistication TravelersExpressSM (No-Touch) Lineof Line of Business Business ClassBreadth Class Breadth Express Breadth Breadth Grow Grow Distribution Distribution Working to Working to achi
Slide 102: Select Accounts
Select Accounts Where Do We Go From Here? – Advancing Product & Pricing Sophistication Low-Touch Low- Plus Touch Advantage Low- Touch No-Touch: Auto No-Touch: CMP Available Express CMP Portfolio for Issue WC CMP No-Touch WC UMB Issue Pre-Merger 2005-2008 2009-2010 Continually drive Continually drive
Slide 103: Select Accounts
Select Accounts Growing Market Share Profitably ¾ Scale matters for success ¾ Having a winning formula is critical ¾ All elements need to be there and work together ¾ Achieving strong results in a challenging environment ¾ Well positioned for the future with continued evolution of our winning formul
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Slide 105: John Albano, EVP – Business Insurance
John Albano Executive Vice President – Business Insurance 104
Slide 106: Business Insurance - Individually Underwritten Accounts
Business Insurance - Individually Underwritten Accounts 2008 Net Written Premium: $8.5 Billion Homeow ners and Other Select Accounts Automobile Com m ercial Accounts International Construction Bond & Financial Technology Products Public Sector National Program s National Property Oil & Gas Northland
Slide 107: Executing on Continuously Expanding Capabilities
Executing on Continuously Expanding Capabilities + Flight to Quality = Outstanding Results Outstanding Results 2 106
Slide 108: Individually Underwritten Accounts
Individually Underwritten Accounts Characteristics Travelers Domestic 2008 Net Written Premium ¾ Low volume, high premium dollar Individually Flow Underwritten Business 48% ¾ Underwriting and pricing driven by loss Select experience and exposure Accounts Business ¾ Tailored coverages 41% Insurance1
Slide 109: Business Insurance Individually Underwritten Accounts
Business Insurance Individually Underwritten Accounts Boiler Ocean Marine National Accounts Inland Marine National Prop Northland Agribusiness Excess Cas National Programs Global U/W Oil & Gas Public Sector Technology Construction Commercial Accounts Specialization and Specialization and sophisticat
Slide 110: Driving Profitable Growth
Driving Profitable Growth ($ in Billions) Net Written Premium Travelers / St. Paul merger $9 Multiple renewal rights w th transactions ga nic Gr o O r 6 Travelers / Aetna merger 3 G r owth siv e M&A s Impre 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 5 109 Note: Net
Slide 111: Why Agents Place and Keep Individual Account Business With Carriers
Why Agents Place and Keep Individual Account Business With Carriers Product Breadth & Appetite A Competitive Price G E Local Claim Effectiveness N Relationships T S Local Knowledge Financial Strength These key These key drivers drivers provide provide the the foundation foundation for for our execut
Slide 112: Executing on Continuously Expanding Capabilities
Executing on Continuously Expanding Capabilities 7 111
Slide 113: Superior Execution
Superior Execution Building on Our Strengths Unparalleled Product Breadth & Sophistication Customer Focus / Industry Leading Significant Scale Claim Effectiveness Analytics & Local Access Ease of Doing Business 8 112
Slide 114: Superior Execution
Superior Execution Product Breadth, Expertise & Specialization New & Updated Product Rollouts 2006 & Prior 2007 2008 2009 • Auto Dealers • Underground Utilities • Architects • Building Service Contractors • Electrical Equipment • Concrete Contractors • Engineers • Excavation Contractors • Electronic
Slide 115: Superior Execution
Superior Execution Analytics ¾ Predictive modeling and analytics enhance pricing and performance • Size and scale of data unparalleled in industry • Cohesive information systems and metrics provide data at granular level • Predictive modeling enhances pricing and product development Experienced Unde
Slide 116: Claim Effectiveness: Travelers Workers' Compensation Advantage
Superior Execution Claim Effectiveness: Travelers Workers’ Compensation Advantage ¾ Travelers is a leading writer and service provider of workers’ compensation ¾ Scale provides cost effective local presence and expertise ¾ Advanced analytics provide a competitive advantage ¾ Lower payout than the in
Slide 117: Submission Flow
Superior Execution Local Knowledge and Relationships Submission Flow Full Year April Year-to-Date th % G rowth o w 10 Gr 31 % 2006 2007 2008 2008 2009 Dramatic new Dramatic new business business submission submission flow flow Increase continues Increase continues into into 2009 2009 12 116 Note: Su
Slide 118: Superior Execution
Superior Execution Financial Strength Allows for Investment ¾ Product ¾ Platforms ¾ Attracting and retaining talent ¾ Customer service ¾ Ease of doing business ¾ Claim handling ¾ Risk control ¾ Metrics, measurement and information Continuous investment Continuous investment and and improvement impro
Slide 119: Executing on Continuously Expanding Capabilities
Executing on Continuously Expanding Capabilities + Flight to Quality = Outstanding Results Outstanding Results 14 118
Slide 120: Top Commercial Lines Carriers
Top Commercial Lines Carriers Market Share ($ in Billions) Direct Written Market Rank Company Premium Share 1 AIG $ 22.4 9.1% 2 Liberty Mutual 15.5 6.3% 3 Travelers 15.1 6.1% 4 Zurich 11.5 4.7% 5 CNA 7.5 3.0% 6 Hartford 7.2 3.0% 7 ACE 7.1 2.9% 8 Chubb 7.1 2.9% 9 Nationwide 5.1 2.1% 10 Allianz of Ame
Slide 121: Flight to Quality
Flight to Quality Net Gain in Accounts from Top Competitors – Commercial Accounts Only1 Net Gain in Accounts1 280 Sep’08 – Apr’09 257 246 Jan’08 – Aug’08 240 200 162 160 203 120 110 105 32 78 86 80 96 36 47 95 40 73 43 42 39 0 14 Carrier 1 Carrier 2 Carrier 3 Carrier 4 Carrier 5 Carrier 6 Significan
Slide 122: Flight to Quality
Flight to Quality Change in New Business Pricing Relative to Renewal New Business Pricing - Commercial Accounts 4% Points of Difference New and Renewal 2% Relative -% Baseline (2%) (4%) 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 Maintaining pricing Maintaining pricing discipline discipline 17 121
Slide 123: Flight to Quality
Flight to Quality Commercial Lines Agency Preferences Travelers indentified as top tier partner by 67% of Commercial Lines Agents1 80% 60% 40% 20% 0% Travelers Hartford Liberty Chubb CNA Significant advantage Significant advantage over over competitors competitors 1 Source: Goldman Sachs January 200
Slide 124: Flight to Quality
Flight to Quality Consistently Higher Renewal Retentions Commercial Accounts: Retention 90% 86% 82% 78% 74% 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 Travelers Carrier 1 Carrier 2 Carrier 3 Retaining business Retaining business at at historically historically high
Slide 125: Flight to Quality
Flight to Quality Strengthening Rate Business Insurance – Individually Underwritten Accounts 0% Jul’08 Apr’09 Jul’08 Apr’09 Rate1,3 % Renewal Premium Change2,3 % Strengthening rate Strengthening rate while while maintaining maintaining strong retentions strong retentions 1 Each percentage represents
Slide 126: Flight to Quality
Flight to Quality Underwriting Discipline ¾ Transaction decisions made by an experienced underwriter ¾ Additional underwriting review for the majority of new business ¾ Most accounts are pre-inspected by risk control prior to quoting ¾ Although submission flow is up, quote ratio is at or below histo
Slide 127: Flight to Quality
Flight to Quality Growth Excluding Renewal Premium Change Business Insurance – Individually Underwritten Accounts Growth Excluding Renewal Premium Change Percentage 4% 3% 2% 1% 0% 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 Apr'09 Organic growth Organic growth improving improving 22 126 Note: Statistics are subje
Slide 128: Flight to Quality
Flight to Quality Results Have Outpaced Competitors Net Written Premium Trends 9% 6% 3% 0% -3% -6% -9% 1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2Q'07 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 Travelers1 Competitor Group2 Outperformed competitor Outperformed competitor group group for fo
Slide 129: Executing on Continuously Expanding Capabilities
Executing on Continuously Expanding Capabilities + Flight to Quality = Outstanding Results Outstanding Results 24 128
Slide 130: Alan Schnitzer, EVP Financial, Professional & International Insurance
Alan Schnitzer Executive Vice President Financial, Professional & International Insurance 129
Slide 131: Bond & Financial Products
Bond & Financial Products 2008 Net Written Premium: $2.2 Billion Homeow ners and Other Select Accounts Automobile Commerical Accounts International Construction Bond & Financial Technology Products Public Sector National Programs National Property Oil & Gas Northland National Accounts Agribusiness I
Slide 132: An Industry Leading Franchise
An Industry Leading Franchise ¾ Total Bond & Financial Products 2008 net written premiums: $2.2 billion ¾ An important market for management liability products (2/3 non-financial, 1/3 financial) with broad market penetration – 2008 net written premium of $1.2 billion ¾ The largest writer of surety b
Slide 133: Portfolio Profile
Portfolio Profile As of December 31, 2008 By Business Unit By Product Fiduciary Private & Crime Non-Profit Construction Surety – Surety Contract D&O Financial Institutions E&O Surety – PCL Comm’l Non PL Surety Contract EPL PC Diversified Risk Diversified Risk Profile Profile = Management Liability –
Slide 134: Travelers Domestic D&O Written Premium
Travelers Domestic D&O Written Premium As of December 31, 2008 Insurance Companies Other FI Large FI Mutual Funds/ Investment Non-Fin’l Advisors Financial Public Institutions Community Company Banks Liability Private & Non-Profit Diversified Risk Diversified Risk Profile Profile 5 133
Slide 135: Franchise Value: Competitive Advantages
Franchise Value Competitive Advantages Local Service Bond & Expertise Financial Enterprise Products Product Relationship Stability Factors that Factors that drive drive success success 6 134
Slide 136: Franchise Value: Expertise
Franchise Value Competitive Advantages Local Service Bond & Expertise Financial Enterprise Products Product Relationship Stability ¾ Highly trained, sophisticated specialists – by industry, risk, coverage • 1,100 specialists in the field – Important resource for generalist agents/brokers – Highly va
Slide 137: Franchise Value: Local
Franchise Value Competitive Advantages Local Service Bond & Expertise Financial Enterprise Products Product Relationship Stability ¾ Deployed at the point of sale – near agents, brokers, customers • 66 locations deployed throughout 17 regions ¾ Provides underwriting and marketing insight into local
Slide 138: Franchise Value: Relationship
Franchise Value Competitive Advantages Local Service Bond & Expertise Financial Enterprise Products Product Relationship Stability ¾ Average tenure of top 10 Construction Surety accounts is 30 years ¾ Average tenure of top 10 Commercial Surety accounts is 17 ½ years ¾ Achieving “trusted advisor” sta
Slide 139: Franchise Value: Product
Franchise Value Competitive Advantages Local Service Bond & Expertise Financial Enterprise Products Product Relationship Stability ¾ Leveraging the information advantage: drives business flow and risk appraisal 10 138
Slide 140: Construction Surety
Construction Surety Competitive Advantages ¾ Peer group analysis and reports • Travelers has the largest database of financial statements of non-residential contractors in the industry – approximately 7,000 active accounts • Provide customers with detailed key financial benchmarks relative to repres
Slide 141: Contractor Peer Group: Balance Sheet Comparison
Contractor Peer Group Balance Sheet Comparison 12 140
Slide 142: Contractor Peer Group: Income Statement Comparison
Contractor Peer Group Income Statement Comparison 13 141
Slide 143: Contractor Peer Group: Credit Model Analysis
Contractor Peer Group Credit Model Analysis 14 142
Slide 144: Contractor Peer Group: Gross Profit Analysis
Contractor Peer Group Gross Profit Analysis 15 143
Slide 145: Risk Management PLUS+ Online
Competitive Advantages Risk Management PLUS+ Online ® ¾ We maintain a web-based platform where risk management information and services are quickly and easily accessible to insureds via the internet 24/7 ¾ Access to ALL on-line Management Liability and Professional Liability resources with the purch
Slide 146: Management Liability products
Competitive Advantages Management Liability products Expanded Distribution Initiatives Territorial Assessment Cyber Liability New Modular Policy & Suites (Private Co, Public Co, Financial Inst) Broad Form + Policy Managed Care E&O Policy Executive Choice+ Public D&O Form Mutual Fund – Investment Adv
Slide 147: Submission Flow
Submission Flow Management Liability Year Over Year Rolling Twelve Months1 th w th ow o Gr Gr % % 17 21 2007 2008 2007-2008 2008-2009 Increased opportunity Increased opportunity without without changing changing risk risk profile profile 1Date range of 4/1/07 – 3/31/08 vs. 4/1/08 – 3/31/09 18 146
Slide 148: Expanded Distribution Initiatives
Expanded Distribution Initiatives Management Liability 80% Quote/Submission Ratio X 14000 Written/Submission Ratio X Submissions Per Month X X 12000 X X X X 10000 60% X X X 8000 X X X 6000 Territorial Assessment Launch Beginnings of Enhanced Execution X Full Execution X 40% X X 4000 X X Xx Xx 2000 x
Slide 149: Expanded Distribution Initiatives
Expanded Distribution Initiatives Management Liability 80% Quote/Submission Ratio 14000 Written/Submission Ratio X Submissions Per Month X 12000 X X 10000 60% X 8000 X X 6000 Territorial Assessment Launch Beginnings of Enhanced Execution X 40% X 4000 X Xx 2000 x 20% 0 D 08 D 07 Ju 8 Ju 7 N 8 N 7 M 9
Slide 150: Expanded Distribution Initiatives
Expanded Distribution Initiatives Management Liability 80% Quote/Submission Ratio 14000 Written/Submission Ratio Submissions Per Month 12000 10000 60% 8000 6000 Territorial Assessment Launch Beginnings of Enhanced Execution Full Execution 40% 4000 2000 20% 0 D 08 D 07 Ju 8 Ju 7 N 8 N 7 M 9 A 9 M 8 A
Slide 151: Expanded Distribution Initiatives
Expanded Distribution Initiatives Management Liability 80% Quote/Submission Ratio 14000 Written/Submission Ratio Submissions Per Month 12000 Achieving 10000Results 60% 8000 6000 Territorial Assessment Launch Beginnings of Enhanced Execution Full Execution 40% 4000 Maintaining underwriting 2000 disci
Slide 152: Managing Risk Today, Investing in Tomorrow
Managing Risk Today + Investing in Tomorrow = Solid results Solid results today, today, Well positioned Well positioned for for the the future future 23 151
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24 152
Slide 154: Annex
TRAVELERS) Annex
Slide 155: Glossary of Financial Measures
Glossary of Financial Measures The following measures are used by the Company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules b
Slide 156: Glossary of Financial Measures - Continued
Glossary of Financial Measures - Continued 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 the after-tax impact of net unrealized investment gains and losses (i.
Slide 157: Reconciliation of Operating Income to Net Income
Reconciliation of Operating Income to Net Income and Reconciliation of Adjusted Common Shareholders’ Equity to Common Shareholders’ Equity ($ in millions, after-tax) Three Months Ended March 31, Twelve Months Ended December 31, ($ in millions; after-tax) 2009 2008 2007 2006 2005 Reconciliation of op
Slide 158: Reconciliation of Tangible and Adjusted Common Shareholders' Equity
Reconciliation of Tangible and Adjusted Common Shareholders’ Equity to Common Shareholders’ Equity ($ in millions, except per share amounts) As of March 31, December 31, 2009 2008 Tangible common shareholders' equity $ 21,919 $ 21,402 Goodwill and other intangibles, net of tax 3,948 3,972 Adjusted c
Slide 159: Reconciliation of Underwriting Gain (Loss) to Net Income
Reconciliation of Underwriting Gain (Loss) to Net Income ($ in millions, except per share amounts) Three Months Ended March 31, Twelve Months Ended December 31, 2009 2008 2007 2006 2005 Underwriting gain (loss) $ 353 $ 1,076 $ 1,699 $ 1,542 $ (344) Net investment income 474 2,299 2,915 2,712 2,438 O
Slide 160: 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 financial supplements are publicly available on the Travelers website (www.tr
Slide 161: Travelers
a a TRAVELERS J