Travelers Reports First Quarter Net Income per Diluted Share of $2.33, Up 15% from Prior Year Quarter

  Travelers Reports First Quarter Net Income per Diluted Share of $2.33, Up
  15% from Prior Year Quarter

         Record Quarterly Operating Income per Diluted Share of $2.31

     Return on Equity and Operating Return on Equity of 14.1% and 15.8%,
                                 Respectively

  Board of Directors Approves 9% Increase in the Company’s Regular Quarterly
                         Dividend per Share to $0.50

Business Wire

NEW YORK -- April 23, 2013

The Travelers Companies, Inc. (NYSE: TRV):

  *Net and operating income of $896 million and $887 million, respectively,
    both up 11% from prior year quarter.
  *Continued improvement in underlying underwriting margins in all segments.
  *Written rate gains continued to exceed expected loss cost trends in all
    segments. Renewal rate change of 8% in Business Insurance, including
    nearly 10% in Commercial Accounts.
  *Repurchased 3.7 million shares for $300 million in the quarter.
  *Book value per share of $68.00, up 7% from end of prior year quarter and
    1% from year-end 2012.

The Travelers Companies, Inc. today reported net income of $896 million, or
$2.33 per diluted share, for the quarter ended March 31, 2013, compared to
$806 million, or $2.02 per diluted share, in the prior year quarter. Operating
income in the current quarter was $887 million, or $2.31 per diluted share,
compared to $801 million, or $2.01 per diluted share, in the prior year
quarter. The increase in net and operating income in the current quarter
compared to the prior year quarter resulted from higher underlying
underwriting margins (i.e., excluding net favorable prior year reserve
development and catastrophe losses) and lower catastrophe losses, which more
than offset lower net investment income and lower net favorable prior year
reserve development.

                           Consolidated Highlights


($ in millions, except for per share     Three Months Ended March 31,   
amounts, and after-tax, except for
premiums & revenues)                      2013       2012       Change
                                                                           
Net written premiums                      $ 5,597     $ 5,497     2        %
                                                                           
                                                                           
Total revenues                            $ 6,328     $ 6,392     (1   )
                                                                           
Operating income                          $ 887       $ 801       11
per diluted share                         $ 2.31      $ 2.01      15
                                                                           
Net income                                $ 896       $ 806       11
per diluted share                         $ 2.33      $ 2.02      15
                                                                           
Diluted weighted average shares             381.9       395.8     (4   )
outstanding
                                                                           
GAAP combined ratio                         88.5  %     92.2  %   (3.7 )   pts
                                                                           
Operating return on equity                  15.8  %     14.7  %   1.1      pts
                                                                           
Return on equity                            14.1  %     13.1  %   1.0      pts
                                                                           
                                          As of March 31,
                                          2013        2012        Change
Book value per share                      $ 68.00     $ 63.81     7        %
                                                                           
Adjusted book value per share             $ 60.39     $ 56.53     7
                                                                           
See Glossary of Financial Measures for definitions and the statistical
supplement for additional financial data.


“We are pleased to report our highest quarterly operating income per diluted
share since Travelers’ initial public offering in 2002,” commented Jay
Fishman, Chairman and Chief Executive Officer. “Operating income of $887
million and operating return on equity of 15.8% reflect continued improvement
in our underlying underwriting margins primarily due to the pricing and
underwriting actions we have taken across all segments. Our high quality
investment portfolio continued to perform well, with returns modestly
declining in line with our expectations given continued low interest rates.

“We continue to be encouraged by the fact that in each of our segments renewal
pricing exceeded expected loss cost trends and retentions remained stable. In
Business Insurance, renewal rate change of 8% was generally consistent with
levels achieved over the last five quarters and new business volumes modestly
improved. In Financial, Professional and International Insurance, renewal rate
change was consistent with the most recent quarter and improved meaningfully
from a year ago, driven primarily by our Management Liability business. In
Personal Insurance, we continue to achieve the improvements in pricing and
terms and conditions needed to improve profitability.

“We are very pleased with the current quarter results and remain committed to
our strategy of improving returns through selectively seeking price increases
and improved terms and conditions given the continued low interest rates and
uncertain weather patterns,” concluded Mr. Fishman.

                   First Quarter 2013 Consolidated Results


                                                             
($ in millions)     Three Months Ended March 31,
                    2013              2012              2013        2012
                    Pre-tax                             After-tax
                                                                             
Underwriting gain   $ 602             $ 393             $ 385       $ 248
Underwriting gain
includes:
Net favorable
prior year            231               304               154         200
reserve
development
Catastrophes, net     (99   )           (168  )           (65 )       (109 )
of reinsurance
                                                                             
Net investment        670               740               542         593
income
                                                                             
Other, including     (62   )          (66   )          (40 )      (40  )
interest expense
Operating income      1,210             1,067             887         801
Net realized         10              10              9         5    
investment gains
Income before       $ 1,220          $ 1,077 
income taxes
Net income                                              $ 896      $ 806  

                                                                             
GAAP combined         88.5      %       92.2      %
ratio
                                                                             
GAAP combined
ratio excluding
incremental           87.8      %       91.4      %
impact of direct
to consumer
initiative
                                                                             
Impact on GAAP
combined ratio
Net favorable
prior year            (4.1  )   pts     (5.5  )   pts
reserve
development
Catastrophes, net   1.8     pts   3.1     pts                   
of reinsurance
                                                                             

Operating income of $887 million after-tax increased $86 million, or 11
percent, from the prior year quarter primarily reflecting higher underlying
underwriting margins and lower catastrophe losses, partially offset by lower
net investment income and lower net favorable prior year reserve development.
Included in net prior year reserve development in the current quarter was a
$42 million pre-tax ($27 million after-tax) charge that was precipitated by
legislation in New York enacted during the first quarter 2013 related to the
New York Fund for Reopened Cases for workers’ compensation.

The underwriting gain in the current quarter reflected a GAAP combined ratio
of 88.5 percent, as compared to 92.2 percent in the prior year quarter. This
improvement of 3.7 points in the combined ratio resulted from higher
underlying underwriting margins (3.8 points) and lower catastrophe losses (1.3
points), partially offset by lower net favorable prior year reserve
development (1.4 points). Catastrophe losses in the current quarter were due
to tornadoes and hail storms in the Southeastern United States. Net favorable
prior year reserve development in the current quarter occurred in all
segments.

The current quarter underlying GAAP combined ratio was 90.8 percent, as
compared to 94.6 percent in the prior year quarter. This improvement of3.8
points primarily resulted from earned rate increases exceeding loss cost
trends in each segment.

Total revenues of $6.328 billion in the current quarter decreased 1 percent
from the prior year quarter. Within total revenues, net investment income
decreased from the prior year quarter due to lower real estate partnership and
private equity returns in the non-fixed income portfolio and lower
reinvestment rates in the fixed income portfolio.

Net written premiums of $5.597 billion in the current quarter increased 2
percent from the prior year quarter. Renewal rate gains continued in all
segments and retention rates remained strong and generally consistent with
recent quarters. New business volumes in Business Insurance increased from the
prior year quarter but decreased in Financial, Professional & International
Insurance and Personal Insurance.

                              Capital Management

“During the quarter, we repaid $500 million of maturing debt from existing
holding company liquidity and returned approximately $500 million in capital
to our shareholders through share repurchases and dividends,” commented Jay S.
Benet, Vice Chairman and Chief Financial Officer. “We announced today a 9%
increase to our quarterly dividend per share, which brings the compound annual
growth rate of our quarterly dividend per share to approximately 10% since our
2004 merger.”

During the first quarter of 2013, the company repurchased 3.7 million shares
under its existing share repurchase authorization at a total cost of $300
million, leaving $1.859 billion of capacity under that authorization for
future share repurchases. Shareholders’ equity was $25.596 billion at the end
of the first quarter of 2013, a 1 percent increase from year-end 2012.
Included in shareholders’ equity were after-tax net unrealized investment
gains of $2.864 billion, compared to $3.103 billion at year-end 2012. Adjusted
shareholders’ equity (which excludes after-tax net unrealized investment
gains) increased 2 percent from year-end 2012. Statutory surplus was $20.692
billion, and the ratio of debt-to-capital (excluding after-tax net unrealized
investment gains) was 20.5 percent, within the company’s target range of 15
percent to 25 percent.

The Board of Directors declared a regular quarterly dividend of $0.50 per
share.This dividend, which is $0.04 higher than the last regular quarterly
dividend, is payable June 28, 2013, to shareholders of record as of the close
of business June 10, 2013.

                 Business Insurance Segment Financial Results

“In Business Insurance, our underlying underwriting results continued to
increase meaningfully as evidenced by the four point improvement in the
underlying combined ratio,” commented Brian MacLean, President and Chief
Operating Officer, “and we achieved a record level of net written premiums.
Production results were very strong and generally consistent with the fourth
quarter. Written rate gains were between 6% and 10% across all lines, led by
Worker’s Compensation and Commercial Auto, retentions were stable and new
business levels improved.”


                                                              
($ in millions)        Three Months Ended March 31,
                       2013             2012             2013        2012
                       Pre-tax                           After-tax
                                                                             
Underwriting gain      $ 298            $ 284            $ 188       $ 177
Underwriting gain
includes:
Net favorable prior
year reserve             113              248              75          162
development
Catastrophes, net of     (35  )           (53  )           (23 )       (34 )
reinsurance
                                                                             
Net investment           487              532              394         425
income
                                                                             
Other                    13               14               8           10
                                                                  
Operating income       $ 798           $ 830           $ 590      $ 612 

                                                                             
GAAP combined ratio      89.4     %       89.6     %

Impact on GAAP
combined ratio
Net favorable prior
year reserve             (3.9 )   pts     (8.6 )   pts
development
Catastrophes, net of   1.2    pts   1.8    pts                  
reinsurance
                                                                             

Operating income of $590 million after-tax decreased $22 million, or 4
percent, from the prior year quarter primarily reflecting lower net favorable
prior year reserve development and lower net investment income, partially
offset by higher underlying underwriting margins and lower catastrophe losses.
Included in net prior year reserve development in the current quarter was a
$42 million pre-tax ($27 million after-tax) charge that was precipitated by
legislation in New York enacted during the first quarter 2013 related to the
New York Fund for Reopened Cases for workers’ compensation.

The underwriting gain in the current quarter reflected a GAAP combined ratio
of 89.4 percent, as compared to 89.6 percent in the prior year quarter. This
improvement of 0.2 points in the combined ratio resulted from higher
underlying underwriting margins (4.3 points) and lower catastrophe losses (0.6
points), mostly offset by lower net favorable prior year reserve development
(4.7 points). Net favorable prior year reserve development in the current
quarter primarily resulted from better than expected loss experience in the
general liability product line for accident years 2010 and prior and in the
property product line for accident years 2010 through 2012.

The current quarter underlying GAAP combined ratio was 92.1 percent, as
compared to 96.4 percent in the prior year quarter. This improvement of4.3
points primarily resulted from earned rate increases exceeding loss cost
trends.

Business Insurance net written premiums of $3.260 billion in the current
quarter increased 5 percent from the prior year quarter primarily due to
continued increases in renewal premium change. Retention rates remained
strong, and new business volumes increased from the prior year quarter.

Select Accounts

  *Net written premiums of $724 million increased 1 percent from the prior
    year quarter primarily due to higher renewal premium change.
  *Renewal premium change remained strong and was driven by both renewal rate
    change and higher insured exposures.
  *Retention rates increased from the prior year quarter.
  *New business volumes decreased from the prior year quarter.

Commercial Accounts

  *Net written premiums of $908 million increased 5 percent from the prior
    year quarter primarily due to higher renewal premium change.
  *Renewal premium change remained strong and was primarily driven by renewal
    rate change.
  *Retention rates remained at a high level and increased from the prior year
    quarter.
  *New business volumes increased from the prior year quarter.

Other Business Insurance (Includes Industry-Focused Underwriting, Target Risk
Underwriting and Specialized Distribution)

  *Net written premiums of $1.351 billion increased 5 percent from the prior
    year quarter primarily due to higher renewal premium change.
  *Renewal premium change remained strong and was primarily driven by renewal
    rate change.
  *Retention rates remained at a high level and increased from the prior year
    quarter.
  *New business volumes increased from the prior year quarter.

National Accounts

  *Net written premiums of $277 million increased 18 percent from the prior
    year quarter due tocontinued strongrenewal premium change,high
    retention rates and favorable audit and retrospective premiums. In
    addition, growth in workers’ compensation residual market pools also
    contributed to premium growth.

 Financial, Professional & International Insurance Segment Financial Results

“In our Financial, Professional & International Insurance segment, the
combined ratio continued to improve, dropping to 82.3% in the first quarter of
2013,” commented MacLean. “The underlying loss ratio for the quarter benefited
from underwriting actions across the segment and increased rate in our
Management Liability businesses, and has now improved sequentially for nine
consecutive quarters.Net written premiums in the segment increased7% from
the first quarter of 2012, primarily driven by favorable reinsurance costs, as
well as increased rate in our Management Liability businesses.”


($ in millions)       Three Months Ended March 31,
                       2013            2012            2013       2012
                       Pre-tax                           After-tax
                                                                        
Underwriting gain      $ 128            $ 88             $ 85        $ 59
Underwriting gain
includes:
Net favorable prior
year reserve             58               46               40          31
development
Catastrophes, net of     -                -                -           -
reinsurance
                                                                             
Net investment           92               104              75          85
income
                                                                             
Other                    5                8                3           5
                                                                      
Operating income       $ 225           $ 200           $ 163      $ 149 

                                                                             
GAAP combined ratio      82.3     %       87.8     %
                                                                             
Impact on GAAP
combined ratio
Net favorable prior
year reserve             (7.8 )   pts     (6.1 )   pts
development
Catastrophes, net of   -      pts   -      pts                
reinsurance
                                                                             

Operating income of $163 million after-tax increased $14 million, or 9
percent, from the prior year quarter primarily reflecting higher underlying
underwriting margins and higher net favorable prior year reserve development,
partially offset by lower net investment income.

The underwriting gain in the current quarter reflected a GAAP combined ratio
of 82.3 percent, as compared to 87.8 percent in the prior year quarter. This
improvement of 5.5 points in the combined ratio resulted from higher
underlying underwriting margins (3.8 points) and higher net favorable prior
year reserve development (1.7 points). Net favorable prior year reserve
development in the current quarter primarily resulted from better than
expected loss experience in the Surety business for accident years 2006
through 2008 and 2010 within Bond & Financial Products, as well as in several
lines of business within International.

The current quarter underlying GAAP combined ratio was 90.1 percent, as
compared to 93.9 percent in the prior year quarter. This improvement of 3.8
points primarily resulted from earned rate increases exceeding loss cost
trends, as well as a lower level of large losses within International.

Financial, Professional & International Insurance net written premiums of $647
million increased 7 percent from the prior year quarter primarily driven by
Bond & Financial Products.

Retention rates, renewal premium changes and new business volumes, as
discussed below, exclude the surety line of business as surety products are
generally sold on a non-recurring, project-specific basis.

Bond & Financial Products

  *Net written premiums of $395 million increased 11 percent from the prior
    year quarter primarily driven by lower reinsurance costs (resulting from
    price decreases and slightly higher retention levels), as well as renewal
    rate increases in Management Liability.
  *Renewal premium change remained strong and continued to increase from
    recent quarters primarily driven by renewal rate change.
  *Retention rates were down slightly from the prior year quarter but
    remained strong and consistent with recent quarters.
  *New business volumes, while below the prior year quarter, increased from
    recent quarters.

International

  *Net written premiums of $252 million increased 2 percent from the prior
    year quarter.
  *Renewal premium change was essentially flat as the impact of positive
    renewal rate change was offset by lower insured exposures.
  *Retention rates improved slightly from the prior year quarter.
  *New business volumes decreased from the prior year quarter.

                 Personal Insurance Segment Financial Results

“In Personal Insurance, underlying underwriting margins in both Auto and
Homeowners improved,” commented MacLean. “Pricing gains and retention rates
were consistent with recent quarters in both products, and new business
levels, while lower than historical norms, were generally consistent with the
fourth quarter of 2012. We were pleased that earned rate increases in Auto
continued to exceed loss cost trendsand we will continue to execute on our
underwritingand product strategies.”


($ in millions)       Three Months Ended March 31,
                       2013            2012            2013       2012
                       Pre-tax                           After-tax
                                                
Underwriting gain      $ 176            $ 21             $ 112       $ 12
Underwriting gain
includes:
Net favorable prior
year reserve             60               10               39          7
development
Catastrophes, net of     (64  )           (115 )           (42 )       (75 )
reinsurance
                                                                             
Net investment           91               104              73          83
income
                                                                             
Other                    18               19               12          13
                                                                  
Operating income       $ 285           $ 144           $ 197      $ 108 

                                                                             
GAAP combined ratio      89.4     %       97.8     %
                                                                             
GAAP combined ratio
excluding
incremental impact       87.5     %       95.7     %
of direct to
consumer initiative
                                                                             
Impact on GAAP
combined ratio
Net favorable prior
year reserve             (3.3 )   pts     (0.5 )   pts
development
Catastrophes, net of   3.5    pts   6.0    pts                  
reinsurance
                                                                             

Operating income of $197 million after-tax increased $89 million, or 82
percent, from the prior year quarter primarily reflecting higher underlying
underwriting margins, lower catastrophe losses and higher net favorable prior
year reserve development, partially offset by lower net investment income.

The underwriting gain in the current quarter reflected a GAAP combined ratio
of 89.4 percent, as compared to 97.8 percent in the prior year quarter. This
improvement of 8.4 points in the combined ratio was primarily due to higher
underlying underwriting margins (3.1 points), higher net favorable prior year
reserve development (2.8 points) and lower catastrophe losses (2.5 points).
The net favorable prior year reserve development in the current quarter
primarily resulted from better than expected loss experience in Homeowners &
Other for accident year 2011.

The current quarter underlying GAAP combined ratio was 89.2 percent, as
compared to 92.3 percent in the prior year quarter. This improvement of 3.1
points was primarily due to earned rate increases exceeding loss cost trends
in both Automobile and Homeowners & Other, as well as lower non-catastrophe
weather-related losses.

Personal Insurance net written premiums of $1.690 billion decreased 6 percent
from the prior year quarter primarily due to lower new business volumes,
largely as a result of the company’s pricing strategy, increasing deductibles
and other profitability improvement initiatives.

Agency Automobile and Agency Homeowners & Other, as discussed below, represent
business sold through agents, brokers and other intermediaries and exclude
direct to consumer.

Agency Automobile

  *Net written premiums of $831 million decreased 8 percent from the prior
    year quarter.
  *Policies in force decreased 11 percent from the prior year quarter.
  *Renewal premium change remained strong and consistent with recent
    quarters.
  *Retention rates remained strong and generally consistent with recent
    quarters.
  *New business volumes, while below the prior year quarter, were generally
    consistent with the most recent quarter.

Agency Homeowners & Other

  *Net written premiums of $820 million decreased 4 percent from the prior
    year quarter.
  *Policies in force decreased 8 percent from the prior year quarter.
  *Renewal premium change remained strong and consistent with recent
    quarters.
  *Retention rates remained very strong and consistent with recent quarters.
  *New business volumes, while below the prior year quarter, were generally
    consistent with the most recent quarter.

Financial Supplement and Conference Call
The information in this press release should be read in conjunction with a
financial supplement that is available on our website at www.travelers.com.
Travelers management will discuss the contents of this release and other
relevant topics via webcast at 9:30 a.m. Eastern (8:30 a.m. Central) on
Tuesday, April 23, 2013. Prior to the webcast, a slide presentation pertaining
to the quarterly earnings will be available on the company's website.
Following the live event, an audio playback of the webcast and the slide
presentation will be available on the company's website.

To view the slides or to listen to the webcast or the playback, visit the
"Webcasts & Presentations" section of the Travelers investor relations website
at http://investor.travelers.com.

About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property
casualty insurance for auto, home and business. The company’s diverse business
lines offer its customers a wide range of coverage sold primarily through
independent agents and brokers. A component of the Dow Jones Industrial
Average, Travelers has more than 30,000 employees and operations in the United
States and selected International markets. For more information, visit
www.travelers.com.

From time to time, Travelers may use its website and/or social media outlets,
such as Facebook and Twitter, as distribution channels of material company
information. Financial and other important information regarding the company
is routinely accessible through and posted on our website at
http://investor.travelers.com, our Facebook page at
https://www.facebook.com/travelers and our Twitter account (@TRV_Insurance) at
https://twitter.com/TRV_Insurance. In addition, you may automatically receive
email alerts and other information about Travelers when you enroll your email
address by visiting the “Email Alert Service” section at
http://investor.travelers.com.

Travelers has organized its businesses into the following reportable business
segments:

Business Insurance: The Business Insurance segment offers a broad array of
property and casualty insurance and insurance-related services to its clients
primarily in the United States. Business Insurance is organized into the
following six groups, which collectively comprise Business Insurance Core
operations: Select Accounts; Commercial Accounts; National Accounts;
Industry-Focused Underwriting including Construction, Technology, Public
Sector Services, Oil & Gas and Agribusiness; Target Risk Underwriting
including National Property, Inland Marine, Ocean Marine, Excess Casualty,
Boiler & Machinery and Global Partner Services; and Specialized Distribution
including Northland and National Programs. Business Insurance also includes
the Special Liability Group (which manages the company’s asbestos and
environmental liabilities) and the assumed reinsurance and certain other
runoff operations, which collectively are referred to as Business Insurance
Other.

Financial, Professional & International Insurance: The Financial, Professional
& International Insurance segment includes surety and financial liability
coverages, which primarily use credit-based underwriting processes, as well as
property and casualty products that are primarily marketed on a domestic basis
in the United Kingdom, Canada and the Republic of Ireland, and on an
international basis through Lloyd’s. The businesses in Financial, Professional
& International Insurance are Bond & Financial Products and International.

Personal Insurance: The Personal Insurance segment writes a broad range of
property and casualty insurance covering individuals’ personal risks. The
primary products of automobile and homeowners insurance are complemented by a
broad suite of related coverages.

Forward-Looking Statements

This press release 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. Words such as “may”, “will”, “should”, “likely”,
“anticipates”, “expects”, “intends”, “plans”, “projects”, “believes”,
“estimates” and similar expressions are used to identify these forward-looking
statements. Specifically, statements about the company’s share repurchase
plans, expected margin improvement, future pension plan contributions and the
potential impact of investment markets and other economic conditions on the
company’s investment portfolio and underwriting results, among others, are
forward looking, and the company may also make forward-looking statements
about, among other things:

  *its results of operations and financial condition (including, among other
    things, premium volume, premium rates, net and operating income,
    investment income and performance, loss costs, return on equity, and
    expected current returns and combined ratios);
  *the sufficiency of the company’s asbestos and other reserves;
  *the impact of emerging claims issues as well as other insurance and
    non-insurance litigation;
  *the cost and availability of reinsurance coverage;
  *catastrophe losses;
  *the impact of investment, economic and underwriting market conditions; and
  *strategic initiatives.

The company cautions investors that such statements are subject to risks and
uncertainties, many of which are difficult to predict and generally beyond the
company’s control, that could cause actual results to differ materially from
those expressed in, or implied or projected by, the forward-looking
information and statements.

Some of the factors that could cause actual results to differ include, but are
not limited to, the following:

  *catastrophe losses could materially and adversely affect the company’s
    results of operations, its financial position and/or liquidity, and could
    adversely impact the company’s ratings, the company’s ability to raise
    capital and the availability and cost of reinsurance;
  *during or following a period of financial market disruption or economic
    downturn, the company’s business could be materially and adversely
    affected;
  *if actual claims exceed the company’s claims and claim adjustment expense
    reserves, or if changes in the estimated level of claims and claim
    adjustment expense reserves are necessary, the company’s financial results
    could be materially and adversely affected;
  *the company’s investment portfolio may suffer reduced returns or material
    realized or unrealized losses;
  *the company’s business could be harmed because of its potential exposure
    to asbestos and environmental claims and related litigation;
  *the company is exposed to, and may face adverse developments involving,
    mass tort claims such as those relating to exposure to potentially harmful
    products or substances;
  *the effects of emerging claim and coverage issues on the company’s
    business are uncertain;
  *the intense competition that the company faces could harm its ability to
    maintain or increase its business volumes and profitability;
  *the company may not be able to collect all amounts due to it from
    reinsurers, and reinsurance coverage may not be available to the company
    in the future at commercially reasonable rates or at all;
  *the company is exposed to credit risk in certain of its business
    operations;
  *within the United States, the company’s businesses are heavily regulated
    by the states in which it conducts business, including licensing and
    supervision, and changes in regulation may reduce the company’s
    profitability and limit its growth;
  *changes in federal regulation could impose significant burdens on the
    company and otherwise adversely impact its results;
  *a downgrade in the company’s claims-paying and financial strength ratings
    could adversely impact the company’s business volumes, adversely impact
    the company’s ability to access the capital markets and increase the
    company’s borrowing costs;
  *the inability of the company’s insurance subsidiaries to pay dividends to
    the company’s holding company in sufficient amounts would harm the
    company’s ability to meet its obligations, pay future shareholder
    dividends or make future share repurchases;
  *disruptions to the company’s relationships with its independent agents and
    brokers could adversely affectthe company;
  *the company’s efforts to develop new products or expand in targeted
    markets may not be successful and may create enhanced risks;
  *changes in U.S. tax laws or in the tax laws of other jurisdictions in
    which the company operates could adversely impact the company;
  *the company may be adversely affected if its pricing and capital models
    provide materially different indications than actual results;
  *the company’s business success and profitability depend, in part, on
    effective information technology systems and on continuing to develop and
    implement improvements in technology;
  *if the company experiences difficulties with technology, data security
    and/or outsourcing relationships, the company’s ability to conduct its
    business could be negatively impacted;
  *the company is subject to a number of risks associated with its business
    outside the United States;
  *new regulations outside of the U.S., including in the European Union,
    could adversely impact the company’s results of operations and limit its
    growth;
  *acquisitions and integration of acquired businesses may result in
    operating difficulties and other unintended consequences;
  *changes to existing accounting standards may adversely impact the
    company’s reported results;
  *the company could be adversely affected if its controls to ensure
    compliance with guidelines, policies and legal and regulatory standards
    are not effective;
  *the company’s businesses may be adversely affected if it is unable to hire
    and retain qualified employees;
  *loss of or significant restriction on the use of credit scoring in the
    pricing and underwriting of Personal Insurance products could reduce the
    company’s future profitability; and
  *the company’s repurchase plans depend on a variety of factors, including
    the company’s financial position, earnings, share price, catastrophe
    losses, maintaining capital levels commensurate with the company’s desired
    ratings from independent rating agencies, funding of the company’s
    qualified pension plan, capital requirements of the company’s operating
    subsidiaries, legal requirements, regulatory constraints, other investment
    opportunities (including mergers and acquisitions), market conditions and
    other factors.

Our forward-looking statements speak only as of the date of this press release
or as of the date they are made, and we undertake no obligation to update
forward-looking statements. For a more detailed discussion of these factors,
see the information under the captions "Risk Factors" and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in
our most recent annual report on Form 10-K and our quarterly report on Form
10-Q filed with the Securities and Exchange Commission.

  GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF NON-GAAP MEASURES TO
                                GAAP 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 because they are not displayed
as separate line items in the consolidated financial statements or are not
required to be disclosed in the notes to financial statements or, in some
cases, include or exclude certain items not ordinarily included or excluded in
the most comparable GAAP financial measure. Reconciliations of non-GAAP
measures to their most directly comparable GAAP measures also follow.

In the opinion of the company’s management, a discussion of these measures
provides investors, financial analysts, rating agencies and other financial
statement users with a better understanding of the significant factors that
comprise the company’s periodic results of operations and how management
evaluates the company’s financial performance. Internally, the company's
management uses these measures to evaluate performance against historical
results, to establish financial targets on a consolidated basis and for other
reasons, which are discussed below.

Some of these measures exclude net realized investment gains (losses), net of
tax, and/or net unrealized investment gains (losses), net of tax, which can be
significantly impacted by both discretionary and other economic factors and
are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore,
their measures may not be comparable to those used by the company’s
management.

RECONCILIATION OF OPERATING INCOME AND CERTAIN OTHER NON-GAAP MEASURES TO NET
INCOME

Operating income is net income excluding the after-tax impact of net realized
investment gains (losses) and discontinued operations. Management uses
operating income to analyze each segment’s performance and as a tool in making
business decisions. Financial statement users also consider operating income
when analyzing the results and trends of insurance companies. Operating
earnings per share is operating income on a per common share basis.

Reconciliation of Operating Income less Preferred Dividends to Net Income



                                 Three Months Ended
                                    March 31,
($ in millions, after-tax)       2013       2012
                                              
Operating income                    $ 887         $ 801
Net realized investment gains     9        5   
Net income                       $ 896     $ 806 
                                            


                                                                                           
                 Twelve Months Ended December 31,
($ in
millions,      2012       2011       2010       2009       2008       2007       2006       2005
after-tax)
                                                                                                     
Operating
income, less     $ 2,441     $ 1,389     $ 3,040     $ 3,597     $ 3,191     $ 4,496     $ 4,195     $ 2,020
preferred
dividends
Preferred       -        1        3        3        4        4        5        6     
dividends
Operating          2,441       1,390       3,043       3,600       3,195       4,500       4,200       2,026
income
Net realized
investment      32       36       173      22       (271  )   101      8        35    
gains
(losses)
Income from
continuing         2,473       1,426       3,216       3,622       2,924       4,601       4,208       2,061
operations
Discontinued    -        -        -        -        -        -        -        (439  )
operations
Net income     $ 2,473   $ 1,426   $ 3,216   $ 3,622   $ 2,924   $ 4,601   $ 4,208   $ 1,622 



Reconciliation of Operating Earnings per Share to Net Income per Share on a
Basic and Diluted Basis


                                           
                                    Three Months Ended
                                    March 31,
                                2013       2012
                                                        
Basic earnings per share
Operating income                    $ 2.33       $ 2.03
Net realized investment gains     0.03     0.01 
Net income                       $ 2.36    $ 2.04 
                                                        
Diluted earnings per share
Operating income                    $ 2.31       $ 2.01
Net realized investment gains     0.02     0.01 
Net income                       $ 2.33    $ 2.02 

                                                        

Reconciliation of Operating Income by Segment to Total Operating Income


                                                               
                                                        Three Months Ended
                                                        March 31,
($ in millions, after-tax)                           2013       2012
                                                                      
                                                                      
Business Insurance                                      $ 590         $ 612
Financial, Professional & International Insurance         163           149
Personal Insurance                                    197      108 
Total segment operating income                            950           869
Interest Expense and Other                            (63 )     (68 )
Total operating income                               $ 887     $ 801 



RECONCILIATION OF ADJUSTED SHAREHOLDERS’ EQUITY TO SHAREHOLDERS’ EQUITY AND
OPERATING RETURN ON EQUITY TO RETURN ON EQUITY

Average shareholders’ equity is (a) the sum of total shareholders’ equity
excluding preferred stock at the beginning and end of each of the quarters for
the period presented divided by (b) the number of quarters in the period
presented times two. Adjusted shareholders’ equity is shareholders’ equity
excluding net unrealized investment gains (losses), net of tax, net realized
investment gains (losses), net of tax, for the period presented, preferred
stock and discontinued operations. Adjusted average shareholders’ equity is
average shareholders’ equity excluding net unrealized investment gains
(losses), net of tax, for all quarters included in the calculation and, for
each quarterly period included in the calculation, that quarter’s net realized
investment gains (losses), net of tax.

Reconciliation of Adjusted Shareholders’ Equity to Shareholders’ Equity

                                                                
                                                            
                                                  As of March 31,
($ in millions)                                2013          2012
                                                                            
Adjusted shareholders' equity                     $ 22,723         $ 22,029
Net unrealized investment gains, net of tax         2,864            2,838
Net realized investment gains, net of tax       9           5      
Shareholders' equity                           $ 25,596     $ 24,872 

              
                As of December 31,
($ in          2012        2011        2010        2009        2008        2007        2006        2005        2004
millions)
                                                                                                               
Adjusted
shareholders'   $ 22,270     $ 21,570     $ 23,375     $ 25,458     $ 25,647     $ 25,783     $ 24,545     $ 22,227     $ 20,087
equity
Net
unrealized
investment        3,103        2,871        1,859        1,856        (146   )     620          453          327          866
gains
(losses), net
of tax
Net realized
investment
gains             32           36           173          22           (271   )     101          8            35           (28    )
(losses), net
of tax
Preferred         -            -            68           79           89           112          129          153          188
stock
Discontinued    -         -         -         -         -         -         -         (439   )   88     
operations
Shareholders'  $ 25,405   $ 24,477   $ 25,475   $ 27,415   $ 25,319   $ 26,616   $ 25,135   $ 22,303   $ 21,201 
equity
                                                                                             
                                                                                                                                 

Return on equity is the ratio of annualized net income less preferred
dividends to average shareholders’ equity for the periods presented. Operating
return on equity is the ratio of annualized operating income less preferred
dividends to adjusted average shareholders’ equity for the periods presented.
In the opinion of the company’s management, these are important indicators of
how well management creates value for its shareholders through its operating
activities and its capital management.

Calculation of Operating Return on Equity and Return on Equity


                                                       
                                            Three Months Ended
                                            March 31,
($ in millions, after-tax)               2013           2012
                                                               
Annualized operating income                 $ 3,550            $ 3,202
Adjusted average shareholders' equity     22,512       21,817 
Operating return on equity                15.8   %      14.7   %
                                                               
Annualized net income                       $ 3,586            $ 3,225
Average shareholders' equity              25,500       24,675 
Return on equity                          14.1   %      13.1   %
                                                           
                                                                        

Average annual operating return on equity over a period is the ratio of:
a) the sum of operating income less preferred dividends for the periods
presented to
b) the sum of: 1) the sum of the adjusted average shareholders’ equity for all
full years in the period presented, and 2) for partial years in the period
presented, the number of quarters in that partial year divided by four,
multiplied by the adjusted average shareholders’ equity of the partial year.

Calculation of Average Annual Operating Return on Equity from January 1, 2005
through March 31, 2013


                                                                                                                           
                Three Months Ended
                March 31,                   Twelve Months Ended December 31,
($ in           2013        2012           2012        2011        2010        2009        2008        2007        2006        2005
millions)
                                                                                                                                       
Operating
income, less    $ 887        $ 801          $ 2,441      $ 1,389      $ 3,040      $ 3,597      $ 3,191      $ 4,496      $ 4,195      $ 2,020
preferred
dividends
Annualized
operating         3,550        3,202
income
Adjusted
average           22,512       21,817         22,158       22,806       24,285       25,777       25,668       25,350       23,381       21,118
shareholders'
equity
Operating
return on       15.8   %   14.7   %    11.0   %   6.1    %   12.5   %   14.0   %   12.4   %   17.7   %   17.9   %   9.6    %
equity
                                                                                                                                       
Average
annual
operating
return on
equity for        12.9   %
the period
January 1,
2005 through
March 31,
2013


RECONCILIATION OF PRE-TAX UNDERWRITING GAIN EXCLUDING CERTAIN ITEMS TO NET
INCOME

Underwriting gain is net earned premiums and fee income less claims and claim
adjustment expenses and insurance-related expenses. In the opinion of the
company’s management, it is important to measure the profitability of each
segment excluding the results of investing activities, which are managed
separately from the insurance business. This measure is used to assess each
segment’s business performance and as a tool in making business decisions.
Pre-tax underwriting gain, excluding the impact of catastrophes and net
favorable prior year loss reserve development, is the underwriting gain
adjusted to exclude claims and claim adjustment expenses, reinstatement
premiums and assessments related to catastrophes and loss reserve development
related to time periods prior to the current year. In the opinion of the
company's management, this measure is meaningful to users of the financial
statements to understand the company's periodic earnings and the variability
of earnings caused by the unpredictable nature (i.e., the timing and amount)
of catastrophes and loss reserve development. This measure is also referred to
as underlying underwriting margin or underlying underwriting gain.

A catastrophe is a severe loss, resulting from natural and man-made events,
including risks such as fire, earthquake, windstorm, explosion, terrorism and
other similar events. Each catastrophe has unique characteristics, and
catastrophes are not predictable as to timing or amount. Their effects are
included in net and operating income and claims and claim adjustment expense
reserves upon occurrence. A catastrophe may result in the payment of
reinsurance reinstatement premiums and assessments from various pools. In the
opinion of the company's management, a discussion of the impact of
catastrophes is meaningful to users of the financial statements to understand
the company’s periodic earnings and the variability in periodic earnings
caused by the unpredictable nature of catastrophes.

Net favorable (unfavorable) prior year loss reserve development is the
increase or decrease in incurred claims and claim adjustment expenses as a
result of the re-estimation of claims and claim adjustment expense reserves at
successive valuation dates for a given group of claims, which may be related
to one or more prior years. In the opinion of the company's management, a
discussion of loss reserve development is meaningful to users of the financial
statements as it allows them to assess the impact between prior and current
year development on incurred claims and claim adjustment expenses, net and
operating income, and changes in claims and claim adjustment expense reserve
levels from period to period.

Reconciliation of Pre-tax Underwriting Gain (Excluding the Impact of
Catastrophes and Net Favorable Prior Year Loss Reserve Development) to Net
Income


                                                              
                                                      Three Months Ended
                                                      March 31,
($ in millions, after-tax except as noted)         2013        2012

Pre-tax underwriting gain excluding the impact
of catastrophes and net favorable prior year          $ 470           $ 257
loss reserve development
Pre-tax impact of catastrophes                          (99 )           (168 )
Pre-tax impact of net favorable prior year loss     231       304  
reserve development
Pre-tax underwriting gain                               602             393
Income tax expense on underwriting results          217       145  
Underwriting gain                                       385             248
Net investment income                                   542             593
Other, including interest expense                   (40 )      (40  )
Operating income                                        887             801
Net realized investment gains                       9         5    
Net income                                         $ 896      $ 806  
                                                                
                                                                             

ADJUSTMENT TO THE GAAP COMBINED RATIO FOR THE INCREMENTAL IMPACT OF THE DIRECT
TO CONSUMER INITIATIVE

GAAP combined ratio is the sum of the loss and loss adjustment expense ratio
(loss and LAE ratio) and the underwriting expense ratio. For GAAP, the loss
and LAE ratio is the ratio of incurred losses and loss adjustment expenses
reduced by an allocation of fee income to net earned premiums. The
underwriting expense ratio is the ratio of underwriting expenses incurred
reduced by an allocation of fee income, and billing and policy fees and other
to net earned premiums. A GAAP combined ratio under 100% generally indicates
an underwriting profit. A GAAP combined ratio over 100% generally indicates an
underwriting loss. The GAAP combined ratio is an operating statistic that
includes GAAP measures in the numerator and the denominator.

Calculation of the GAAP Combined Ratio


                                                      
                                   Three Months Ended
                                   March 31,
($ in millions,                 2013                     2012
pre-tax)
                                                               
Loss and loss
adjustment expense
ratio
Claims and claim                   $   3,153                   $   3,364
adjustment expenses
Less:
Policyholder dividends                 10                          12
Allocated fee income               42                     35      
Loss ratio numerator            $   3,101               $   3,317   
                                                               
Underwriting expense
ratio
Amortization of
deferred acquisition               $   948                     $   971
costs
General and
administrative                         915                         884
expenses (G&A)
Less:
G&A included in
Interest Expense and                   4                           7
Other
Allocated fee income                   55                          47
Billing and policy                 24                     27      
fees and other
Expense ratio                   $   1,780               $   1,774   
numerator
                                                       
Earned premium                  $   5,517               $   5,523   
                                                               
GAAP combined ratio ^1
Loss and loss
adjustment expense                     56.2    %                   60.1    %
ratio
Underwriting expense               32.3    %               32.1    %
ratio
Combined ratio                     88.5    %               92.2    %
^1 For purposes of computing GAAP ratios, billing and policy fees and other
(which are a component of other revenues) are allocated as a reduction of
underwriting expenses. In addition, fee income is allocated as a reduction of
losses and loss adjustment expenses and underwriting expenses.



GAAP combined ratio excluding the incremental impact of the direct to consumer
initiative is the GAAP combined ratio adjusted to exclude the direct, variable
impact of the company’s direct-to-consumer initiative in Personal
Insurance.In the opinion of the company’s management, this is useful in an
analysis of the profitability of the company’s ongoing agency business.

Reconciliation of the Consolidated and Personal Insurance GAAP Combined Ratios
(Excluding the Incremental Impact of the Direct to Consumer Initiative) to the
Consolidated and Personal Insurance GAAP Combined Ratios


                                                                 
                                                           Three Months Ended
                                                           March 31,
                                                           2013      2012
                                                                        
Personal Insurance
GAAP combined ratio excluding incremental impact of        87.5 %       95.7 %
direct to consumer initiative
Incremental impact of direct to consumer initiative     1.9  %    2.1  %
GAAP combined ratio                                     89.4 %    97.8 %
                                                                        
Consolidated
GAAP combined ratio excluding incremental impact of        87.8 %       91.4 %
direct to consumer initiative
Incremental impact of direct to consumer initiative     0.7  %    0.8  %
GAAP combined ratio                                     88.5 %    92.2 %



ADJUSTMENT TO NET WRITTEN PREMIUMS FOR THE IMPACT OF CHANGES IN FOREIGN
EXCHANGE RATES

Adjusting for the impact of changes in foreign exchange rates allowsthe
effect of foreign exchange rate differences to beisolatedin theanalysis of
changes in various financial statement line items that are translated from a
local currency to the company's reporting currency,U.S. dollars.The impact
isdeterminedbyassuming constant foreign exchange rates between periods as
illustrated in the reconciliation below.In the opinion of the company's
management, this is useful in an analysis of the results of the International
market and the Financial, Professional & International (FP&II) segment.

Reconciliation of the Impact of Changes in Foreign Exchange Rates on
International Net Written Premiums to International Net Written Premiums



                                              Three Months Ended
                                                March 31,
($ in millions)                               2013      2012      Change
                                                                   
Net written premiums - holding foreign          $ 253       $ 247       2   %
exchange rates constant
Impact of changes in foreign exchange rates    (1  )           
Net written premiums                          $ 252    $ 247    2   %



Reconciliation of the Impact of Changes in Foreign Exchange Rates on FP&II Net
Written Premiums to FP&II Net Written Premiums



                                              Three Months Ended
                                                March 31,
($ in millions)                               2013      2012      Change
                                                                   
Net written premiums - holding foreign          $ 648       $ 604       7   %
exchange rates constant
Impact of changes in foreign exchange rates    (1  )           
Net written premiums                          $ 647    $ 604    7   %
                                                              
                                                                            

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO BOOK VALUE PER SHARE AND
SHAREHOLDERS’ EQUITY

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, divided by the number of common shares
outstanding.  In the opinion of the company’s management, adjusted book value
is useful in an analysis of a property casualty company’s book value as it
removes the effect of changing prices on invested assets (i.e., net unrealized
investment gains (losses), net of tax), which do not have an equivalent impact
on unpaid claims and claim adjustment expense reserves. Tangible book value
per share is adjusted book value per share excluding the after-tax value of
goodwill and other intangible assets divided by the number of common shares
outstanding. In the opinion of the company’s management, tangible book value
per share is useful in an analysis of a property casualty company’s book value
on a nominal basis as it removes certain effects of purchase accounting (i.e.,
goodwill and other intangible assets), in addition to the effect of changing
prices on invested assets.

Reconciliation of Tangible and Adjusted Shareholders’ Equity to Shareholders’
Equity


                                                             
                                    As of
                                    March 31,      December 31,     March 31,
($ in millions, except per        2013         2012           2012
share amounts)
                                                                    
Tangible shareholders' equity       $ 19,046       $  18,604        $ 18,299
Goodwill                              3,365           3,365           3,365
Other intangible assets               370             381             417
Less: Impact of deferred tax on    (49    )     (48     )    (47    )
other intangible assets
Adjusted shareholders' equity         22,732          22,302          22,034
Net unrealized investment          2,864       3,103       2,838  
gains, net of tax
Shareholders' equity              $ 25,596    $  25,405     $ 24,872 
                                                                    
Common shares outstanding          376.4       377.4       389.8  
                                                                    
Tangible book value per share       $ 50.60        $  49.29         $ 46.95
Adjusted book value per share         60.39           59.09           56.53
Book value per share               68.00       67.31       63.81  



RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO TOTAL CAPITALIZATION

Total capitalization is the sum of total shareholders’ equity and debt.
Debt-to-capital ratio excluding net unrealized gain on investments isthe
ratio of debttototal capitalization excluding the after-tax impact of net
unrealized investment gains and losses.In the opinion of the company's
management, the debt to capital ratio is useful in an analysis of the
company's financial leverage.

Reconciliation of Total Debt and Equity Excluding Net Unrealized Investment
Gain to Total Capitalization


                                                             
                                    As of
                                    March 31,      December 31,     March 31,
($ in millions)                   2013         2012           2012
                                                                    
Debt                                $ 5,851        $  6,350         $ 6,606
Shareholders' equity               25,596      25,405      24,872 
Total capitalization               31,447      31,755      31,478 
Net unrealized investment          2,864       3,103       2,838  
gains, net of tax
Total capitalization excluding
net unrealized gain on            $ 28,583    $  28,652     $ 28,640 
investments, net of tax
                                                                    
Debt-to-capital ratio                 18.6   %        20.0    %       21.0   %
Debt-to-capital ratio excluding
net unrealized investment          20.5   %     22.2    %    23.1   %
gains, net of tax
                                                              
                                                                             

OTHER DEFINITIONS

Gross written premiums reflect the direct and assumed contractually determined
amounts charged to policyholders for the effective period of the contract
based on the terms and conditions of the insurance contract. Net written
premiums reflect gross written premiums less premiums ceded to reinsurers.
These are GAAP measures.

For the Business Insurance and Financial, Professional and International
Insurance segments, retention is the  amount of premium available for renewal
that was retained, excluding rate and exposure changes. For the Personal
Insurance segment, retention is the ratio of the expected number of renewal
policies that will be retained throughout the annual policy period to the
number of available renewal base policies. For all of the segments, renewal
rate change represents the estimated change in average premium on policies
that renew, excluding exposure changes. Exposure is the measure of risk used
in the pricing of an insurance product. The change in exposure is the amount
of change in premium on policies that renew attributable to the change in
portfolio risk. Renewal premium change represents the estimated change in
average premium on policies that renew, including rate and exposure changes.
New business volume is the amount of written premium related to new
policyholders and additional products sold to existing policyholders. These
are operating statistics, which are subject to change based upon a number of
factors, including changes in actuarial estimates. For the Business Insurance
segment, retention, renewal premium change and new business volumes exclude
National Accounts and Business Insurance-Other.

An insurance company’s statutory surplus represents the excess of its assets
over its liabilities in accordance with the statutory accounting practices
required by state laws and regulations.

Holding company liquidity is the total funds available at the holding company
level to fund general corporate purposes, primarily the payment of shareholder
dividends and debt service. These funds consist of total cash, short-term
invested assets and other readily marketable securities held by the holding
company.

For a glossary of other financial terms used in this press release, we refer
you to the company’s most recent annual report on Form 10-K filed with the
Securities and Exchange Commission.

Contact:

The Travelers Companies, Inc.
Media:
Patrick Linehan, 917-778-6267
or
Institutional Investors:
Gabriella Nawi, 917-778-6844, or
Andrew Hersom, 860-277-0902
or
Individual Investors:
Marc Parr, 860-277-0779
 
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