trv-20230419

Exhibit 99.1

The Travelers Companies, Inc.

485 Lexington Avenue

New York, NY 10017-2630

www.travelers.com

NYSE: TRV

Travelers Reports Strong First Quarter Results

First Quarter 2023 Net Income per Diluted Share of $4.13 and Return on Equity of 17.5%

First Quarter 2023 Core Income per Diluted Share of $4.11 and Core Return on Equity of 14.5%

Board of Directors Declares 8% Increase in Regular Quarterly Cash Dividend to $1.00 per Share and Authorizes an Additional $5.0 Billion of Share Repurchases

•First quarter net income of $975 million and core income of $970 million.

•Quarter included an elevated level of catastrophe losses of $535 million pre-tax ($422 million after-tax); quarter also included a one-time tax benefit of $211 million.

•Consolidated combined ratio of 95.4% and underlying combined ratio of 90.6%.

•Record net written premiums of $9.396 billion, up 12% compared to the prior year quarter, with growth in all three segments.

•Total capital returned to shareholders of $680 million, including $462 million of share repurchases.

•Book value per share of $99.80, down 6% from March 31, 2022, driven by higher interest rates; adjusted book value per share of $116.55, up 4% over March 31, 2022.

New York, April 19, 2023 — The Travelers Companies, Inc. today reported net income of $975 million, or $4.13 per diluted share, for the quarter ended March 31, 2023, compared to $1.018 billion, or $4.15 per diluted share, in the prior year quarter. Core income in the current quarter was $970 million, or $4.11 per diluted share, compared to $1.037 billion, or $4.22 per diluted share, in the prior year quarter. Core income decreased primarily due to higher catastrophe losses and lower net favorable prior year reserve development, partially offset by a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses) and higher net investment income. The underlying underwriting gain in the current quarter included a one-time tax benefit of $211 million. This tax benefit is included in the income tax line in the Consolidated Statement of Income and accordingly does not impact the combined ratio or the underlying combined ratio. Net realized investment gains in the current quarter were $6 million pre-tax ($5 million after-tax), compared to net realized investment losses of $23 million pre-tax ($19 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.

Consolidated Highlights


($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)	Three Months Ended March 31,
	2023			2022			Change
Net written premiums	$	9,396		$	8,367		12	%

Total revenues	$	9,704		$	8,809		10
Net income	$	975		$	1,018		(4)
per diluted share	$	4.13		$	4.15		—
Core income	$	970		$	1,037		(6)
per diluted share	$	4.11		$	4.22		(3)
Diluted weighted average shares outstanding	234.4			243.7			(4)
Combined ratio	95.4		%	91.3		%	4.1		pts
Underlying combined ratio	90.6		%	91.2		%	(0.6)		pts
Return on equity	17.5		%	15.0		%	2.5		pts
Core return on equity	14.5		%	15.5		%	(1.0)		pts


	As of						Change From
	March 31, 2023		December 31, 2022		March 31, 2022		December 31, 2022		March 31, 2022
Book value per share	$	99.80	$	92.90	$	106.40	7	%	(6)	%
Adjusted book value per share	116.55		114.00		112.19		2	%	4	%

See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.

“We are very pleased to report excellent results for the quarter, particularly in light of the high level of severe weather activity across the United States,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Core income for the quarter was $970 million, or $4.11 per diluted share, generating core return on equity of 14.5%. Core income benefited from record net earned premiums of $8.9 billion, up 10% compared to the prior year period, an excellent underlying combined ratio of 90.6% and a one-time tax benefit. Catastrophe losses in the quarter were elevated at $535 million pre-tax ($422 million after-tax). Our high-quality investment portfolio generated after-tax net investment income of $557 million.

“Our best-in-class marketplace execution delivered 12% growth in net written premiums this quarter to a record $9.4 billion, with all three segments contributing. In Business Insurance, we grew net written premiums by 15% to $5.2 billion. Renewal premium change in the segment remained historically high at 9.6%, while retention remained very strong at 87%. Record new business of $639 million was up 17%. In Bond & Specialty Insurance, net written premiums increased slightly, with excellent retention of 90% and new business growth of 25% in our management liability business. Surety net written premiums were once again strong. Given the attractive returns, we are very pleased with the strong production results in both of our commercial business segments. In Personal Insurance, top-line growth of 12% was driven by higher pricing. Renewal premium change increased to 20.2% in our Homeowners and Other business and 13.9% in our Auto business.

“Our results, along with our strong balance sheet, enabled us to return $680 million of excess capital to our shareholders this quarter, including $462 million of share repurchases. In recognition of our strong financial position and confidence in the outlook for our business, I am pleased to share that our Board of Directors declared an 8% increase in our quarterly cash dividend to $1.00 per share, marking 19 consecutive years of dividend increases with a compound annual growth rate of 8% over that period. The Board also authorized an additional $5 billion of share repurchases.

“The year is off to a terrific start with another strong quarter of profitability and growth driven by our underwriting and investment expertise. At the same time, we continue to successfully execute on our innovation strategy, which has contributed to significantly accelerated premium growth, superior returns and industry low volatility over the past decade. With the best talent in the industry, we remain well positioned for success through a wide range of economic and operating environments and confident in our ability to continue to create shareholder value over time.”

Consolidated Results


	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change
Underwriting gain:	$	367			$	659			$	(292)
Underwriting gain includes:
Net favorable prior year reserve development	105				153				(48)
Catastrophes, net of reinsurance	(535)				(160)				(375)
Net investment income	663				637				26
Other income (expense), including interest expense	(108)				(91)				(17)
Core income before income taxes	922				1,205				(283)
Income tax expense (benefit)	(48)				168				(216)
Core income	970				1,037				(67)
Net realized investment gains (losses) after income taxes	5				(19)				24

Net income	$	975			$	1,018			$	(43)

Combined ratio	95.4		%		91.3		%		4.1			pts
Impact on combined ratio
Net favorable prior year reserve development	(1.2)			pts	(1.9)			pts	0.7			pts
Catastrophes, net of reinsurance	6.0			pts	2.0			pts	4.0			pts
Underlying combined ratio	90.6		%		91.2		%		(0.6)			pts

Net written premiums
Business Insurance	$	5,157			$	4,502			15		%
Bond & Specialty Insurance	886				882				—
Personal Insurance	3,353				2,983				12
Total	$	9,396			$	8,367			12		%

First Quarter 2023 Results

(All comparisons vs. first quarter 2022, unless noted otherwise)

Net income of $975 million decreased $43 million, due to lower core income, partially offset by net realized investment gains compared to net realized investment losses in the prior year quarter. Core income of $970 million decreased $67 million, primarily due to higher catastrophe losses and lower net favorable prior year reserve development, partially offset by a higher underlying underwriting gain and higher net investment income. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the current quarter also included a one-time tax benefit of $211 million due to the expiration of the statute of limitations with respect to a tax item, while the prior year quarter included a $47 million reduction in income tax expense as a result of the resolution of prior year tax matters. These tax benefits are included in the income tax line in the Consolidated Statement of Income and accordingly do not impact the combined ratio or the underlying combined ratio. Net realized investment gains were $6 million pre-tax ($5 million after-tax), compared to net realized investment losses of $23 million pre-tax ($19 million after-tax) in the prior year quarter.

Combined ratio:

•The combined ratio of 95.4% increased 4.1 points due to higher catastrophe losses (4.0 points) and lower net favorable prior year reserve development (0.7 points), partially offset by a lower underlying combined ratio (0.6 points).

•The underlying combined ratio of 90.6% improved 0.6 points. See below for further details by segment.

•Net favorable prior year reserve development occurred in all three segments. See below for further details by segment.

•Catastrophe losses primarily resulted from severe wind and hail storms in multiple states.

Net investment income of $663 million pre-tax ($557 million after-tax) increased 4%. Income from the fixed income investment portfolio increased over the prior year quarter due to a higher average yield and growth in fixed maturity investments. Income from the non-fixed income investment portfolio decreased from the prior year quarter, primarily due to lower private equity and real estate partnership returns. Non-fixed income returns are generally reported on a one-quarter lagged basis and directionally follow the broader equity markets.

Net written premiums of $9.396 billion increased 12%. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $23.052 billion increased 7% over year-end 2022, primarily due to lower net unrealized investment losses and net income of $975 million, partially offset by common share repurchases and dividends to shareholders. Net unrealized investment losses included in shareholders’ equity were $4.912 billion pre-tax ($3.868 billion after-tax), compared to $6.220 billion pre-tax ($4.898 billion after-tax) at year-end 2022. The decrease in net unrealized investment losses was driven by lower interest rates. Book value per share of $99.80 decreased 6% from March 31, 2022, and increased 7% over year-end 2022. Adjusted book value per share of $116.55, which excludes net unrealized investment gains (losses), increased 4% over March 31, 2022, and increased 2% over year-end 2022.

The Company repurchased 2.5 million shares during the first quarter at an average price of $183.33 per share for a total cost of $462 million. At the end of the quarter, statutory capital and surplus was $23.689 billion, and the ratio of debt-to-capital was 24.0%. The ratio of debt-to-capital excluding after-tax net unrealized investment gains (losses) included in shareholders’ equity was 21.3%, within the Company’s target range of 15% to 25%.

The Board of Directors declared an 8% increase in the regular quarterly dividend to $1.00 per share. The dividend is payable June 30, 2023, to shareholders of record at the close of business on June 9, 2023. The Board of Directors also authorized an additional $5.0 billion of share repurchases. This amount is in addition to the $1.605 billion that remained from previous authorizations as of March 31, 2023. This authorization does not have a stated expiration date. The timing and actual number of shares to be repurchased will depend on a variety of factors, including the factors described below in the Forward-Looking Statements section.

Business Insurance Segment Financial Results


	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change
Underwriting gain:	$	273			$	358			$	(85)
Underwriting gain includes:
Net favorable prior year reserve development	19				113				(94)
Catastrophes, net of reinsurance	(199)				(79)				(120)
Net investment income	473				468				5
Other income (expense)	(33)				(17)				(16)
Segment income before income taxes	713				809				(96)
Income tax expense (benefit)	(43)				140				(183)
Segment income	$	756			$	669			$	87

Combined ratio	93.6		%		90.9		%		2.7			pts
Impact on combined ratio
Net favorable prior year reserve development	(0.4)			pts	(2.8)			pts	2.4			pts
Catastrophes, net of reinsurance	4.4			pts	1.9			pts	2.5			pts
Underlying combined ratio	89.6		%		91.8		%		(2.2)			pts

Net written premiums by market
Domestic
Select Accounts	$	908			$	819			11		%
Middle Market	2,926				2,616				12
National Accounts	294				303				(3)
National Property and Other	590				497				19
Total Domestic	4,718				4,235				11
International	439				267				64
Total	$	5,157			$	4,502			15		%

First Quarter 2023 Results

(All comparisons vs. first quarter 2022, unless noted otherwise)

Segment income for Business Insurance was $756 million after-tax, an increase of $87 million. Segment income increased primarily due to a higher underlying underwriting gain, partially offset by higher catastrophe losses and lower net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the current quarter also included a one-time tax benefit of $171 million due to the expiration of the statute of limitations with respect to a tax item, while the prior year quarter included a $3 million reduction in income tax expense as a result of the resolution of prior year tax matters. These tax benefits are included in the income tax line and accordingly do not impact the combined ratio or the underlying combined ratio.

Combined ratio:

•The combined ratio of 93.6% increased 2.7 points due to higher catastrophe losses (2.5 points) and lower net favorable prior year reserve development (2.4 points), partially offset by a lower underlying combined ratio (2.2 points).

•The underlying combined ratio improved 2.2 points to a very strong 89.6%, driven by property losses that were lower than a somewhat elevated level in the prior year quarter and the benefit of earned pricing.

•Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations’ workers’ compensation product line for multiple accident years, partially offset by

higher than expected loss experience in the general liability product line for excess coverages for multiple accident years. Net prior year reserve development also included an increase in environmental reserves.

Net written premiums of $5.157 billion increased 15%, reflecting strong renewal premium change and retention, as well as higher levels of new business. The increase in net written premiums also included the impact of the Company’s quota share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited (Fidelis) effective January 1, 2023, which is included in the segment’s International results.

Bond & Specialty Insurance Segment Financial Results


	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change
Underwriting gain:	$	171			$	177			$	(6)
Underwriting gain includes:
Net favorable prior year reserve development	58				35				23
Catastrophes, net of reinsurance	(5)				(1)				(4)
Net investment income	73				59				14
Other income	4				3				1
Segment income before income taxes	248				239				9
Income tax expense	41				22				19
Segment income	$	207			$	217			$	(10)

Combined ratio	80.0		%		78.0		%		2.0			pts
Impact on combined ratio
Net favorable prior year reserve development	(6.7)			pts	(4.3)			pts	(2.4)			pts
Catastrophes, net of reinsurance	0.6			pts	0.1			pts	0.5			pts
Underlying combined ratio	86.1		%		82.2		%		3.9			pts

Net written premiums
Domestic
Management Liability	$	511			$	505			1		%
Surety	257				257				—
Total Domestic	768				762				1
International	118				120				(2)
Total	$	886			$	882			—		%

First Quarter 2023 Results

(All comparisons vs. first quarter 2022, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $207 million after-tax, a decrease of $10 million. Segment income decreased primarily due to a lower underlying underwriting gain, partially offset by higher net favorable prior year reserve development and higher net investment income. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the current quarter included a one-time tax benefit of $9 million due to the expiration of the statute of limitations with respect to a tax item, while the prior year quarter included a $24 million reduction in income tax expense as a result of the resolution of prior year tax matters. These tax benefits are included in the income tax line and accordingly do not impact the combined ratio or the underlying combined ratio.

Combined ratio:

•The combined ratio of 80.0% increased 2.0 points due to a higher underlying combined ratio (3.9 points) and higher catastrophe losses (0.5 points), partially offset by higher net favorable prior year reserve development (2.4 points).

•The underlying combined ratio increased 3.9 points, primarily driven by loss activity related to the disruption in the banking sector and a higher expense ratio, partially offset by the benefit of earned pricing.

•Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations’ fidelity and surety product lines and in the general liability product line for management liability coverages for recent accident years.

Net written premiums of $886 million increased slightly over the very strong prior year quarter, reflecting strong retention, new business and renewal premium change in management liability, as well as strong production in surety.

Personal Insurance Segment Financial Results


	Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change
Underwriting gain (loss):	$	(77)			$	124			$	(201)
Underwriting gain (loss) includes:
Net favorable prior year reserve development	28				5				23
Catastrophes, net of reinsurance	(331)				(80)				(251)
Net investment income	117				110				7
Other income	18				18				—
Segment income before income taxes	58				252				(194)
Income tax expense (benefit)	(25)				27				(52)
Segment income	$	83			$	225			$	(142)

Combined ratio	101.5		%		95.3		%		6.2			pts
Impact on combined ratio
Net favorable prior year reserve development	(0.8)			pts	(0.1)			pts	(0.7)			pts
Catastrophes, net of reinsurance	9.4			pts	2.6			pts	6.8			pts
Underlying combined ratio	92.9		%		92.8		%		0.1			pts

Net written premiums
Domestic
Automobile	$	1,654			$	1,496			11		%
Homeowners and Other	1,565				1,344				16
Total Domestic	3,219				2,840				13
International	134				143				(6)
Total	$	3,353			$	2,983			12		%

First Quarter 2023 Results

(All comparisons vs. first quarter 2022, unless noted otherwise)

Segment income for Personal Insurance was $83 million after-tax, a decrease of $142 million. Segment income decreased primarily due to higher catastrophe losses, partially offset by a higher underlying underwriting gain and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the current quarter included a one-time tax benefit of $31 million due to the expiration of the statute of limitations with respect to a tax item, while the prior year quarter included a $20 million reduction in income tax expense as a result of the resolution of prior year tax matters. These tax benefits are included in the income tax line and accordingly do not impact the combined ratio or the underlying combined ratio.

Combined ratio:

•The combined ratio of 101.5% increased 6.2 points due to higher catastrophe losses (6.8 points) and a slightly higher underlying combined ratio (0.1 points), partially offset by higher net favorable prior year reserve development (0.7 points).

•The underlying combined ratio of 92.9% increased 0.1 points, driven primarily by elevated losses in the automobile product line, largely offset by the benefit of earned pricing in both the automobile and

homeowners and other product lines, lower losses in the homeowners and other product line and a lower expense ratio.

•Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations’ homeowners and other product line for recent accident years.

Net written premiums of $3.353 billion increased 12%, primarily reflecting higher pricing. Renewal premium change increased to 20.2% in Domestic Homeowners and Other and 13.9% in Domestic Automobile.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with the 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 a.m. Eastern (8 a.m. Central) on Wednesday, April 19, 2023. Investors can access the call via webcast at http://investor.travelers.com or by dialing 1.888.440.6281 within the United States or 1.646.960.0218 outside the United States. Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the Company’s website.

Following the live event, replays will be available via webcast for one year at http://investor.travelers.com and by telephone for 30 days by dialing 1.800.770.2030 within the United States or 1.647.362.9199 outside the United States. All callers should use conference ID 5449478.

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $37 billion in 2022. For more information, visit www.travelers.com.

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 (@Travelers) at https://twitter.com/travelers. In addition, you may automatically receive email alerts and other information about Travelers when you enroll your email address by visiting the Email Notifications section at http://investor.travelers.com.

Travelers is organized into the following reportable business segments:

Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada. Personal Insurance’s 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,” “probably,” “anticipates,” “expects,”

“intends,” “plans,” “projects,” “believes,” “views,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements include, among other things, the Company’s statements about:

•the Company’s outlook, the impact of trends on its business, such as the impact of elevated industrywide loss costs in Personal Insurance, and its future results of operations and financial condition;

•the impact of legislative or regulatory actions or court decisions;

•share repurchase plans;

•future pension plan contributions;

•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 and modeling;

•the impact of investment, economic and underwriting market conditions, including interest rates, inflation and disruption in the banking and commercial real estate sectors;

•the Company’s approach to managing its investment portfolio;

•the impact of changing climate conditions;

•strategic and operational initiatives to improve profitability and competitiveness;

•the Company’s competitive advantages and innovation agenda;

•new product offerings;

•the impact of developments in the tort environment; and

•the impact of developments in the geopolitical environment.

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:

Insurance-Related Risks

•high levels of catastrophe losses;

•actual claims may exceed the Company’s claims and claim adjustment expense reserves, or the estimated level of claims and claim adjustment expense reserves may increase, including as a result of, among other things, changes in the legal/tort, regulatory and economic environments, including increased inflation;

•the Company’s potential exposure to asbestos and environmental claims and related litigation;

•the Company is exposed to, and may face adverse developments involving, mass tort claims; and

•the effects of emerging claim and coverage issues on the Company’s business are uncertain, and court decisions or legislative changes that take place after the Company issues its policies can result in an unexpected increase in the number of claims.

Financial, Economic and Credit Risks

•a period of financial market disruption or an economic downturn (including as a result of a failure to raise the “debt ceiling”);

•the Company’s investment portfolio is subject to credit and interest rate risk, and may suffer reduced or low returns or material realized or unrealized losses;

•the Company is exposed to credit risk related to reinsurance and structured settlements, and reinsurance coverage may not be available to the Company;

•the Company is exposed to credit risk in certain of its insurance operations and with respect to certain guarantee or indemnification arrangements that it has with third parties;

•a downgrade in the Company’s claims-paying and financial strength ratings; and

•the Company’s insurance subsidiaries may be unable to pay dividends to the Company’s holding company in sufficient amounts.

Business and Operational Risks

•the ongoing impact of COVID-19 and related risks, and any future pandemics (including new variants of COVID-19);

•the intense competition that the Company faces, including with respect to attracting and retaining employees, and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which it operates;

•disruptions to the Company’s relationships with its independent agents and brokers or the Company’s inability to manage effectively a changing distribution landscape;

•the Company’s efforts to develop new products or services, expand in targeted markets, improve business processes and workflows or make acquisitions may not be successful and may create enhanced risks;

•the Company's pricing and capital models may provide materially different indications than actual results;

•loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company’s products; and

•the Company is subject to additional risks associated with its business outside the United States.

Technology and Intellectual Property Risks

•as a result of cyber attacks (the risk of which could be exacerbated by geopolitical tensions) or otherwise, the Company may experience difficulties with technology, data and network security or outsourcing relationships;

•the Company’s dependence on effective information technology systems and on continuing to develop and implement improvements in technology; and

•the Company may be unable to protect and enforce its own intellectual property or may be subject to claims for infringing the intellectual property of others.

Regulatory and Compliance Risks

•changes in regulation, including higher tax rates; and

•the Company's compliance controls may not be effective.

In addition, the Company’s share repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels appropriate for the Company’s business operations, changes in levels of written premiums, 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 and related financings), market conditions, changes in tax laws (including the Inflation Reduction Act) 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,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in the quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on April 19, 2023, and in our most recent annual report on Form 10-K filed with the SEC on February 16, 2023, in each case as updated by our periodic filings with the SEC.

GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis and for other reasons as discussed below. 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 these measures to the most 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.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders’ equity, 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 NET INCOME TO CORE INCOME AND CERTAIN OTHER NON-GAAP MEASURES

Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis.

Reconciliation of Net Income to Core Income less Preferred Dividends


	Three Months Ended March 31,
($ in millions, after-tax)	2023		2022
Net income	$	975	$	1,018
Adjustments:
Net realized investment (gains) losses	(5)		19

Core income	$	970	$	1,037


	Three Months Ended March 31,
($ in millions, pre-tax)	2023		2022
Net income	$	928	$	1,182
Adjustments:
Net realized investment (gains) losses	(6)		23
Core income	$	922	$	1,205


	Twelve Months Ended December 31,										Average Annual
($ in millions, after-tax)	2022		2021		2020		2019		2018			2005 - 2017
Net income	$	2,842	$	3,662	$	2,697	$	2,622	$	2,523		$	3,074
Less: Loss from discontinued operations	—		—		—		—		—			(34)
Income from continuing operations	2,842		3,662		2,697		2,622		2,523			3,108
Adjustments:
Net realized investment (gains) losses	156		(132)		(11)		(85)		(93)			(37)
Impact of changes in tax laws and/or tax rates (1) (2)	—		(8)		—		—		—			10
Core income	2,998		3,522		2,686		2,537		2,430			3,081
Less: Preferred dividends	—		—		—		—		—			2
Core income, less preferred dividends	$	2,998	$	3,522	$	2,686	$	2,537	$	2,430		$	3,079

(1) Impact is recognized in the accounting period in which the change is enacted

(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Reconciliation of Net Income per Share to Core Income per Share on a Diluted Basis


	Three Months Ended March 31,
	2023		2022






Diluted income per share
Net income	$	4.13	$	4.15
Adjustments:
Net realized investment (gains) losses, after-tax	(0.02)		0.07

Core income	$	4.11	$	4.22

Reconciliation of Segment Income to Total Core Income


	Three Months Ended March 31,
($ in millions, after-tax)	2023		2022
Business Insurance	$	756	$	669
Bond & Specialty Insurance	207		217
Personal Insurance	83		225
Total segment income	1,046		1,111
Interest Expense and Other	(76)		(74)
Total core income	$	970	$	1,037

RECONCILIATION OF SHAREHOLDERS’ EQUITY TO ADJUSTED SHAREHOLDERS’ EQUITY AND CALCULATION OF RETURN ON EQUITY AND CORE RETURN ON EQUITY

Adjusted shareholders’ equity is shareholders’ equity excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity, net realized investment gains (losses), net of tax, for the period presented, the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)), preferred stock and discontinued operations.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity


	As of March 31,
($ in millions)	2023		2022
Shareholders’ equity	$	23,052	$	25,531
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity	3,868		1,391
Net realized investment (gains) losses, net of tax	(5)		19



Adjusted shareholders’ equity	$	26,915	$	26,941


	As of December 31,										Average Annual
($ in millions)	2022		2021		2020		2019		2018			2005 - 2017
Shareholders’ equity	$	21,560	$	28,887	$	29,201	$	25,943	$	22,894		$	24,794
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity	4,898		(2,415)		(4,074)		(2,246)		113			(1,335)
Net realized investment (gains) losses, net of tax	156		(132)		(11)		(85)		(93)			(37)
Impact of changes in tax laws and/or tax rates (1) (2)	—		(8)		—		—		—			22
Preferred stock	—		—		—		—		—			(49)
Loss from discontinued operations	—		—		—		—		—			34
Adjusted shareholders’ equity	$	26,614	$	26,332	$	25,116	$	23,612	$	22,914		$	23,429

(1) Impact is recognized in the accounting period in which the change is enacted

(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

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

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 average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity 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.

Calculation of Return on Equity and Core Return on Equity


	Three Months Ended March 31,
($ in millions, after-tax)	2023			2022
Annualized net income	$	3,900		$	4,073
Average shareholders’ equity	22,306			27,209
Return on equity	17.5		%	15.0		%
Annualized core income	$	3,881		$	4,148
Adjusted average shareholders’ equity	26,687			26,706
Core return on equity	14.5		%	15.5		%


	Twelve Months Ended December 31,															Average Annual
($ in millions, after-tax)	2022			2021			2020			2019			2018				2005 - 2017
Net income, less preferred dividends	$	2,842		$	3,662		$	2,697		$	2,622		$	2,523			$	3,072
Average shareholders' equity	23,384			28,735			26,892			24,922			22,843				24,818
Return on equity	12.2		%	12.7		%	10.0		%	10.5		%	11.0		%		12.4		%
Core income, less preferred dividends	$	2,998		$	3,522		$	2,686		$	2,537		$	2,430			$	3,079

Adjusted average shareholders’ equity	26,588			25,718			23,790			23,335			22,814				23,446
Core return on equity	11.3		%	13.7		%	11.3		%	10.9		%	10.7		%		13.1		%

RECONCILIATION OF NET INCOME TO UNDERWRITING GAIN EXCLUDING CERTAIN ITEMS

Underwriting gain (loss) 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. Underwriting gain, excluding the impact of catastrophes and net favorable (unfavorable) 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 gain, underlying underwriting margin, underlying underwriting income or underlying underwriting result.

The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is exceeded and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated

results of the Company. Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2023 ranges from $20 million to $30 million of losses before reinsurance and taxes.

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 core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.

Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)


	Three Months Ended March 31,
($ in millions, after-tax, except as noted)	2023		2022
Net income	$	975	$	1,018
Net realized investment (gains) losses	(5)		19

Core income	970		1,037
Net investment income	(557)		(539)
Other (income) expense, including interest expense	88		77
Underwriting income	501		575
Income tax expense (benefit) on underwriting results	(134)		84
Pre-tax underwriting income	367		659
Pre-tax impact of net favorable prior year reserve development	(105)		(153)
Pre-tax impact of catastrophes	535		160
Pre-tax underlying underwriting income	$	797	$	666

Reconciliation of Net Income to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)


	Three Months Ended March 31,
($ in millions, after-tax)	2023		2022
Net income	$	975	$	1,018
Net realized investment (gains) losses	(5)		19

Core income	970		1,037
Net investment income	(557)		(539)
Other (income) expense, including interest expense	88		77
Underwriting income	501		575
Impact of net favorable prior year reserve development	(83)		(122)
Impact of catastrophes	422		127
Underlying underwriting income	$	840	$	580


	Twelve Months Ended December 31,
($ in millions, after-tax)	2022		2021		2020		2019		2018		2017		2016		2015		2014		2013		2012
Net income	$	2,842	$	3,662	$	2,697	$	2,622	$	2,523	$	2,056	$	3,014	$	3,439	$	3,692	$	3,673	$	2,473
Net realized investment (gains) losses	156		(132)		(11)		(85)		(93)		(142)		(47)		(2)		(51)		(106)		(32)
Impact of changes in tax laws and/or tax rates (1) (2)	—		(8)		—		—		—		129		—		—		—		—		—
Core income	2,998		3,522		2,686		2,537		2,430		2,043		2,967		3,437		3,641		3,567		2,441
Net investment income	(2,170)		(2,541)		(1,908)		(2,097)		(2,102)		(1,872)		(1,846)		(1,905)		(2,216)		(2,186)		(2,316)
Other (income) expense, including interest expense	277		235		232		214		248		179		78		193		159		61		171
Underwriting income	1,105		1,216		1,010		654		576		350		1,199		1,725		1,584		1,442		296
Impact of net (favorable) unfavorable prior year reserve development	(512)		(424)		(276)		47		(409)		(378)		(510)		(617)		(616)		(552)		(622)
Impact of catastrophes	1,480		1,459		1,274		699		1,355		1,267		576		338		462		387		1,214
Underlying underwriting income	$	2,073	$	2,251	$	2,008	$	1,400	$	1,522	$	1,239	$	1,265	$	1,446	$	1,430	$	1,277	$	888

(1) Impact is recognized in the accounting period in which the change is enacted

(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING COMBINED RATIO

Combined ratio: For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this earnings release, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this earnings release is based on net earned premiums.

For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this earnings release is calculated in the same manner as the SAP ratio.

For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this earnings release, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income, billing and policy fees and other, to net earned premiums.

The combined ratio, loss and LAE ratio, and underwriting expense ratio are used as indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Underlying combined ratio represents the combined ratio excluding the impact of net prior year reserve development and catastrophes. The underlying combined ratio is an indicator of the Company’s underwriting discipline and underwriting profitability for the current accident year.

Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.

Calculation of the Combined Ratio


	Three Months Ended March 31,
($ in millions, pre-tax)	2023			2022
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$	5,959		$	5,039
Less:
Policyholder dividends	12			11
Allocated fee income	42			35
Loss ratio numerator	$	5,905		$	4,993
Underwriting expense ratio
Amortization of deferred acquisition costs	$	1,462		$	1,310
General and administrative expenses (G&A)	1,267			1,191
Less:
Non-insurance G&A	95			82
Allocated fee income	64			68
Billing and policy fees and other	28			27
Expense ratio numerator	$	2,542		$	2,324
Earned premium	$	8,854		$	8,014
Combined ratio (1)
Loss and loss adjustment expense ratio	66.7		%	62.3		%
Underwriting expense ratio	28.7		%	29.0		%
Combined ratio	95.4		%	91.3		%
Impact on combined ratio:
Net favorable prior year reserve development	(1.2)		%	(1.9)		%
Catastrophes, net of reinsurance	6.0		%	2.0		%
Underlying combined ratio	90.6		%	91.2		%

(1) For purposes of computing 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. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio.

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

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 net unrealized investment gains and losses, net of tax, included in shareholders’ equity, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share 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 Shareholders’ Equity to Tangible Shareholders’ Equity, Excluding Net Unrealized Investment Gains (Losses), Net of Tax and Calculation of Book Value Per Share, Adjusted Book Value Per Share and Tangible Book Value Per Share


	As of
($ in millions, except per share amounts)	March 31, 2023		December 31, 2022		March 31, 2022
Shareholders’ equity	$	23,052	$	21,560	$	25,531
Less: Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	(3,868)		(4,898)		(1,391)
Shareholders’ equity, excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity	26,920		26,458		26,922
Less:
Goodwill	3,959		3,952		4,001
Other intangible assets	285		287		301
Impact of deferred tax on other intangible assets	(63)		(60)		(64)
Tangible shareholders’ equity, excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	22,739	$	22,279	$	22,684
Common shares outstanding	231.0		232.1		240.0
Book value per share	$	99.80	$	92.90	$	106.40
Adjusted book value per share	116.55		114.00		112.19
Tangible book value per share, excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity	98.45		96.00		94.53

RECONCILIATION OF TOTAL CAPITALIZATION TO TOTAL CAPITALIZATION EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES), NET OF TAX

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


	As of
($ in millions)	March 31, 2023			December 31, 2022
Debt	$	7,292		$	7,292
Shareholders’ equity	23,052			21,560
Total capitalization	30,344			28,852
Less: Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	(3,868)			(4,898)
Total capitalization excluding net unrealized gain (loss) on investments, net of tax, included in shareholders’ equity	$	34,212		$	33,750
Debt-to-capital ratio	24.0		%	25.3		%
Debt-to-capital ratio excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity	21.3		%	21.6		%

RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)


	As of March 31,
($ in millions)	2023		2022
Invested assets	$	82,035	$	83,664
Less: Net unrealized investment gains (losses), pre-tax	(4,912)		(1,770)
Invested assets excluding net unrealized investment gains (losses)	$	86,947	$	85,434


	As of December 31,
($ in millions)	2022		2021		2020		2019		2018		2017		2016		2015		2014		2013		2012		2011
Invested assets	$	80,454	$	87,375	$	84,423	$	77,884	$	72,278	$	72,502	$	70,488	$	70,470	$	73,261	$	73,160	$	73,838	$	72,701
Less: Net unrealized investment gains (losses), pre-tax	(6,220)		3,060		5,175		2,853		(137)		1,414		1,112		1,974		3,008		2,030		4,761		4,399
Invested assets excluding net unrealized investment gains (losses)	$	86,674	$	84,315	$	79,248	$	75,031	$	72,415	$	71,088	$	69,376	$	68,496	$	70,253	$	71,130	$	69,077	$	68,302

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.

For Business Insurance and Bond & Specialty Insurance, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes. For Personal Insurance, 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 is the amount of written premium related to new policyholders and additional products sold to existing policyholders. These are operating statistics, which are in part dependent on the use of estimates and are therefore subject to change. For Business Insurance, retention, renewal premium change and new business exclude National Accounts. For Bond & Specialty Insurance, retention, renewal premium change and new business exclude surety and other products that are generally sold on a non-recurring, project specific basis. For each of the segments, production statistics referred to herein are domestic only unless otherwise indicated.

Statutory capital and surplus represents the excess of an insurance company’s admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.

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 SEC on February 16, 2023, and subsequent periodic filings with the SEC.

###

Contacts


Media:			Institutional Investors:
Patrick Linehan			Abbe Goldstein
917.778.6267			917.778.6825


The Travelers Companies, Inc. Financial Supplement - First Quarter 2023						Exhibit 99.2


			Page Number
Consolidated Results
Financial Highlights			1
Reconciliation to Net Income and Earnings Per Share			2
Statement of Income			3
Net Income by Major Component and Combined Ratio			4
Core Income			5
Selected Statistics - Property and Casualty Operations			6
Written and Earned Premiums - Property and Casualty Operations			7

Business Insurance
Segment Income			8
Segment Income by Major Component and Combined Ratio			9
Selected Statistics			10
Net Written Premiums			11

Bond & Specialty Insurance
Segment Income			12
Segment Income by Major Component and Combined Ratio			13
Selected Statistics			14
Net Written Premiums			15

Personal Insurance
Segment Income (Loss)			16
Segment Income (Loss) by Major Component and Combined Ratio			17
Selected Statistics			18
Net Written Premiums			19
Selected Statistics - Automobile			20
Selected Statistics - Homeowners and Other			21

Supplemental Detail
Interest Expense and Other			22
Consolidated Balance Sheet			23
Investment Portfolio			24
Investment Portfolio - Fixed Maturities Data			25
Investment Income			26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity			27
Reinsurance Recoverables			28
Net Reserves for Losses and Loss Adjustment Expense			29
Asbestos Reserves			30
Capitalization			31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation			32
Statement of Cash Flows			33
Statement of Cash Flows (continued)			34
Glossary of Financial Measures and Description of Reportable Business Segments			35-36

The information included in the Financial Supplement is unaudited. This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.

Index


The Travelers Companies, Inc. Financial Highlights


($ and shares in millions, except for per share data)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Net income	$	1,018		$	551		$	454		$	819		$	975
Net income per share:
Basic	$	4.20		$	2.29		$	1.91		$	3.49		$	4.18
Diluted	$	4.15		$	2.27		$	1.89		$	3.44		$	4.13
Core income	$	1,037		$	625		$	526		$	810		$	970
Core income per share:
Basic	$	4.27		$	2.60		$	2.22		$	3.45		$	4.16
Diluted	$	4.22		$	2.57		$	2.20		$	3.40		$	4.11
Return on equity	15.0		%	9.1		%	8.5		%	15.8		%	17.5		%
Core return on equity	15.5		%	9.3		%	7.9		%	12.3		%	14.5		%
Total assets, at period end	$	118,592		$	116,587		$	114,317		$	115,717		$	118,352
Total equity, at period end	$	25,531		$	22,874		$	19,906		$	21,560		$	23,052
Book value per share, at period end	$	106.40		$	96.39		$	84.94		$	92.90		$	99.80
Less: Net unrealized investment gains (losses), net of tax	(5.79)			(15.98)			(26.96)			(21.10)			(16.75)
Adjusted book value per share, at period end	$	112.19		$	112.37		$	111.90		$	114.00		$	116.55

Weighted average number of common shares outstanding (basic)	240.9			238.4			235.4			233.2			231.7
Weighted average number of common shares outstanding and common stock equivalents (diluted)	243.7			241.1			237.9			236.3			234.4
Common shares outstanding at period end	240.0			237.3			234.3			232.1			231.0
Common stock dividends declared	$	214		$	225		$	221		$	220		$	218
Common stock repurchased:
Under Board of Directors authorization
Shares	2.9			2.9			3.1			2.7			2.2
Cost	$	500		$	500		$	500		$	500		$	400
Other
Shares	0.4			—			—			—			0.3
Cost	$	59		$	—		$	1		$	1		$	62

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Reconciliation to Net Income and Earnings per Share


($ and shares in millions, except earnings per share)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Net income
Net income	$	1,018	$	551	$	454	$	819	$	975
Adjustments:
Net realized investment (gains) losses, after-tax	19		74		72		(9)		(5)

Core income	$	1,037	$	625	$	526	$	810	$	970
Basic earnings per share
Net income	$	4.20	$	2.29	$	1.91	$	3.49	$	4.18
Adjustments:
Net realized investment (gains) losses, after-tax	0.07		0.31		0.31		(0.04)		(0.02)

Core income	$	4.27	$	2.60	$	2.22	$	3.45	$	4.16
Diluted earnings per share
Net income	$	4.15	$	2.27	$	1.89	$	3.44	$	4.13
Adjustments:
Net realized investment (gains) losses, after-tax	0.07		0.30		0.31		(0.04)		(0.02)

Core income	$	4.22	$	2.57	$	2.20	$	3.40	$	4.11

Adjustments to net income and weighted average shares for net income EPS calculations: (1)


Basic and Diluted	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Net income, as reported	$	1,018	$	551	$	454	$	819	$	975
Participating share-based awards - allocated income	(7)		(4)		(4)		(5)		(7)
Net income available to common shareholders - basic and diluted	$	1,011	$	547	$	450	$	814	$	968
Common Shares
Basic
Weighted average shares outstanding	240.9		238.4		235.4		233.2		231.7
Diluted
Weighted average shares outstanding	240.9		238.4		235.4		233.2		231.7
Weighted average effects of dilutive securities - stock options and performance shares	2.8		2.7		2.5		3.1		2.7
Diluted weighted average shares outstanding	243.7		241.1		237.9		236.3		234.4

(1) Adjustments to net income and weighted average shares for net income EPS calculations can generally be used for the core income EPS calculations.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Statement of Income - Consolidated


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Revenues
Premiums	$	8,014		$	8,317		$	8,615		$	8,817		$	8,854
Net investment income	637			707			593			625			663
Fee income	103			100			104			105			106
Net realized investment gains (losses)	(23)			(95)			(93)			7			6
Other revenues	78			107			84			82			75
Total revenues	8,809			9,136			9,303			9,636			9,704
Claims and expenses
Claims and claim adjustment expenses	5,039			5,803			6,088			5,924			5,959
Amortization of deferred acquisition costs	1,310			1,365			1,406			1,434			1,462
General and administrative expenses	1,191			1,223			1,193			1,203			1,267
Interest expense	87			88			88			88			88
Total claims and expenses	7,627			8,479			8,775			8,649			8,776
Income before income taxes	1,182			657			528			987			928
Income tax expense (benefit)	164			106			74			168			(47)
Net income	$	1,018		$	551		$	454		$	819		$	975






Other statistics
Effective tax rate on net investment income	15.4		%	15.8		%	14.8		%	15.1		%	16.0		%
Net investment income (after-tax)	$	539		$	595		$	505		$	531		$	557

Catastrophes, net of reinsurance:
Pre-tax	$	160		$	746		$	512		$	459		$	535
After-tax	$	127		$	587		$	404		$	362		$	422

Prior year reserve development - favorable (unfavorable):
Pre-tax	$	153		$	291		$	20		$	185		$	105
After-tax	$	122		$	229		$	16		$	145		$	83

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Net Income by Major Component and Combined Ratio - Consolidated


($ in millions, net of tax)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Underwriting gain	$	575		$	86		$	90		$	354		$	501
Net investment income	539			595			505			531			557
Other income (expense), including interest expense	(77)			(56)			(69)			(75)			(88)
Core income	1,037			625			526			810			970
Net realized investment gains (losses)	(19)			(74)			(72)			9			5

Net income	$	1,018		$	551		$	454		$	819		$	975
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	62.3		%	69.3		%	70.1		%	66.6		%	66.7		%
Underwriting expense ratio	29.0		%	29.0		%	28.1		%	27.9		%	28.7		%
Combined ratio	91.3		%	98.3		%	98.2		%	94.5		%	95.4		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	(1.9)		%	(3.5)		%	(0.2)		%	(2.1)		%	(1.2)		%
Catastrophes, net of reinsurance	2.0		%	9.0		%	5.9		%	5.2		%	6.0		%
Underlying combined ratio	91.2		%	92.8		%	92.5		%	91.4		%	90.6		%



(1) Before policyholder dividends. (2) 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. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Billing and policy fees and other	$	27		$	27		$	27		$	28		$	28
Fee income:
Loss and loss adjustment expenses	$	35		$	39		$	38		$	39		$	42
Underwriting expenses	68			61			66			66			64
Total fee income	$	103		$	100		$	104		$	105		$	106
Non-insurance general and administrative expenses	$	82		$	87		$	83		$	88		$	95

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Core Income - Consolidated


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Revenues
Premiums	$	8,014		$	8,317		$	8,615		$	8,817		$	8,854
Net investment income	637			707			593			625			663
Fee income	103			100			104			105			106
Other revenues	78			107			84			82			75
Total revenues	8,832			9,231			9,396			9,629			9,698
Claims and expenses
Claims and claim adjustment expenses	5,039			5,803			6,088			5,924			5,959
Amortization of deferred acquisition costs	1,310			1,365			1,406			1,434			1,462
General and administrative expenses	1,191			1,223			1,193			1,203			1,267
Interest expense	87			88			88			88			88
Total claims and expenses	7,627			8,479			8,775			8,649			8,776
Core income before income taxes	1,205			752			621			980			922
Income tax expense (benefit)	168			127			95			170			(48)
Core income	$	1,037		$	625		$	526		$	810		$	970
Other statistics
Effective tax rate on net investment income	15.4		%	15.8		%	14.8		%	15.1		%	16.0		%
Net investment income (after-tax)	$	539		$	595		$	505		$	531		$	557
Catastrophes, net of reinsurance:
Pre-tax	$	160		$	746		$	512		$	459		$	535
After-tax	$	127		$	587		$	404		$	362		$	422
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	153		$	291		$	20		$	185		$	105
After-tax	$	122		$	229		$	16		$	145		$	83

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Selected Statistics - Property and Casualty Operations


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Statutory underwriting
Gross written premiums	$	9,283	$	9,536	$	9,812	$	9,245	$	10,347
Net written premiums	$	8,367	$	9,020	$	9,198	$	8,829	$	9,396
Net earned premiums	$	8,016	$	8,316	$	8,615	$	8,817	$	8,854
Losses and loss adjustment expenses	4,994		5,758		6,034		5,870		5,906
Underwriting expenses	2,441		2,568		2,533		2,450		2,727
Statutory underwriting gain (loss)	581		(10)		48		497		221
Policyholder dividends	11		6		14		9		12
Statutory underwriting gain (loss) after policyholder dividends	$	570	$	(16)	$	34	$	488	$	209
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	49,027	$	49,676	$	50,139	$	50,762	$	51,164
Increase (decrease) in reserves	$	438	$	649	$	463	$	623	$	402
Statutory capital and surplus	$	24,168	$	23,776	$	23,375	$	23,677	$	23,689
Net written premiums/surplus (1)	1.36:1		1.42:1		1.48:1		1.50:1		1.54:1

(1) Based on 12 months of rolling net written premiums.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Written and Earned Premiums - Property and Casualty Operations


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Written premiums
Gross	$	9,283	$	9,536	$	9,812	$	9,245	$	10,347
Ceded	(916)		(516)		(614)		(416)		(951)
Net	$	8,367	$	9,020	$	9,198	$	8,829	$	9,396
Earned premiums
Gross	$	8,565	$	8,897	$	9,216	$	9,415	$	9,469
Ceded	(551)		(580)		(601)		(598)		(615)
Net	$	8,014	$	8,317	$	8,615	$	8,817	$	8,854

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Segment Income - Business Insurance


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Revenues
Premiums	$	4,071		$	4,218		$	4,353		$	4,453		$	4,477
Net investment income	468			521			426			449			473
Fee income	96			93			96			97			99
Other revenues	53			85			56			54			47
Total revenues	4,688			4,917			4,931			5,053			5,096
Claims and expenses
Claims and claim adjustment expenses	2,514			2,698			2,959			2,736			2,907
Amortization of deferred acquisition costs	668			691			708			721			742
General and administrative expenses	697			714			704			712			734
Total claims and expenses	3,879			4,103			4,371			4,169			4,383
Segment income before income taxes	809			814			560			884			713
Income tax expense (benefit)	140			148			89			159			(43)
Segment income	$	669		$	666		$	471		$	725		$	756
Other statistics
Effective tax rate on net investment income	15.3		%	15.8		%	14.6		%	14.9		%	15.8		%
Net investment income (after-tax)	$	396		$	439		$	364		$	382		$	398
Catastrophes, net of reinsurance:
Pre-tax	$	79		$	234		$	216		$	125		$	199
After-tax	$	63		$	184		$	170		$	98		$	157
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	113		$	202		$	(61)		$	127		$	19
After-tax	$	90		$	159		$	(48)		$	100		$	15

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Segment Income by Major Component and Combined Ratio - Business Insurance


($ in millions, net of tax)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Underwriting gain	$	291		$	220		$	117		$	361		$	388
Net investment income	396			439			364			382			398
Other income (expense)	(18)			7			(10)			(18)			(30)
Segment income	$	669		$	666		$	471		$	725		$	756
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.7		%	63.0		%	66.9		%	60.4		%	63.8		%
Underwriting expense ratio	30.2		%	30.2		%	29.4		%	29.1		%	29.8		%
Combined ratio	90.9		%	93.2		%	96.3		%	89.5		%	93.6		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	(2.8)		%	(4.8)		%	1.4		%	(2.8)		%	(0.4)		%
Catastrophes, net of reinsurance	1.9		%	5.6		%	4.9		%	2.8		%	4.4		%
Underlying combined ratio	91.8		%	92.4		%	90.0		%	89.5		%	89.6		%



(1) Before policyholder dividends. (2) 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. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Billing and policy fees and other	$	3		$	4		$	4		$	4		$	4
Fee income:
Loss and loss adjustment expenses	$	35		$	39		$	38		$	39		$	42
Underwriting expenses	61			54			58			58			57
Total fee income	$	96		$	93		$	96		$	97		$	99
Non-insurance general and administrative expenses	$	70		$	73		$	70		$	76		$	80

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Selected Statistics - Business Insurance


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Statutory underwriting
Gross written premiums	$	5,148	$	4,786	$	4,864	$	4,723	$	5,828
Net written premiums	$	4,502	$	4,373	$	4,370	$	4,390	$	5,157
Net earned premiums	$	4,073	$	4,217	$	4,353	$	4,453	$	4,477
Losses and loss adjustment expenses	2,472		2,656		2,911		2,682		2,858
Underwriting expenses	1,313		1,325		1,281		1,282		1,492
Statutory underwriting gain	288		236		161		489		127
Policyholder dividends	8		4		7		9		8
Statutory underwriting gain after policyholder dividends	$	280	$	232	$	154	$	480	$	119

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Net Written Premiums - Business Insurance


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Net written premiums by market
Domestic
Select Accounts	$	819	$	807	$	739	$	734	$	908
Middle Market	2,616		2,329		2,465		2,513		2,926
National Accounts	303		240		247		295		294
National Property and Other	497		690		702		578		590
Total Domestic	4,235		4,066		4,153		4,120		4,718
International	267		307		217		270		439
Total	$	4,502	$	4,373	$	4,370	$	4,390	$	5,157
Net written premiums by product line
Domestic
Workers’ compensation	$	1,008	$	823	$	787	$	779	$	1,051
Commercial automobile	781		759		762		759		851
Commercial property	551		763		756		701		693
General liability	789		678		738		757		866
Commercial multi-peril	1,085		1,041		1,067		1,111		1,241
Other	21		2		43		13		16
Total Domestic	4,235		4,066		4,153		4,120		4,718
International	267		307		217		270		439
Total	$	4,502	$	4,373	$	4,370	$	4,390	$	5,157

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Segment Income - Bond & Specialty Insurance


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Revenues
Premiums	$	820		$	851		$	877		$	870		$	875
Net investment income	59			64			65			70			73
Other revenues	4			4			6			6			5
Total revenues	883			919			948			946			953
Claims and expenses
Claims and claim adjustment expenses	354			331			334			359			380
Amortization of deferred acquisition costs	149			155			162			159			160
General and administrative expenses	141			148			148			153			165
Total claims and expenses	644			634			644			671			705
Segment income before income taxes	239			285			304			275			248
Income tax expense	22			57			62			54			41
Segment income	$	217		$	228		$	242		$	221		$	207
Other statistics
Effective tax rate on net investment income	15.1		%	15.4		%	15.6		%	15.7		%	16.5		%
Net investment income (after-tax)	$	50		$	55		$	54		$	59		$	61
Catastrophes, net of reinsurance:
Pre-tax	$	1		$	4		$	11		$	9		$	5
After-tax	$	1		$	3		$	9		$	7		$	4
Prior year reserve development - favorable:
Pre-tax	$	35		$	73		$	63		$	51		$	58
After-tax	$	28		$	57		$	50		$	40		$	46

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance


($ in millions, net of tax)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Underwriting gain	$	165		$	171		$	185		$	158		$	143
Net investment income	50			55			54			59			61
Other income	2			2			3			4			3
Segment income	$	217		$	228		$	242		$	221		$	207
Combined ratio (1)
Loss and loss adjustment expense ratio	42.8		%	38.5		%	37.3		%	41.3		%	43.0		%
Underwriting expense ratio	35.2		%	35.5		%	35.2		%	35.6		%	37.0		%
Combined ratio	78.0		%	74.0		%	72.5		%	76.9		%	80.0		%
Impact on combined ratio:
Net favorable prior year reserve development	(4.3)		%	(8.6)		%	(7.2)		%	(5.8)		%	(6.7)		%
Catastrophes, net of reinsurance	0.1		%	0.4		%	1.3		%	1.0		%	0.6		%
Underlying combined ratio	82.2		%	82.2		%	78.4		%	81.7		%	86.1		%



(1) General and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Non-insurance general and administrative expenses	$	1		$	1		$	1		$	2		$	1

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Selected Statistics - Bond & Specialty Insurance


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Statutory underwriting
Gross written premiums	$	1,009	$	1,036	$	1,043	$	994	$	1,010
Net written premiums	$	882	$	962	$	964	$	924	$	886
Net earned premiums	$	820	$	851	$	877	$	870	$	875
Losses and loss adjustment expenses	351		328		328		359		376
Underwriting expenses	319		319		326		306		346
Statutory underwriting gain	150		204		223		205		153
Policyholder dividends	3		2		7		—		4
Statutory underwriting gain after policyholder dividends	$	147	$	202	$	216	$	205	$	149

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Net Written Premiums - Bond & Specialty Insurance


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Net written premiums by market
Domestic
Management Liability	$	505	$	533	$	554	$	520	$	511
Surety	257		287		284		253		257
Total Domestic	762		820		838		773		768
International	120		142		126		151		118
Total	$	882	$	962	$	964	$	924	$	886
Net written premiums by product line
Domestic
Fidelity & surety	$	320	$	346	$	350	$	313	$	318
General liability	389		419		424		407		399
Other	53		55		64		53		51
Total Domestic	762		820		838		773		768
International	120		142		126		151		118
Total	$	882	$	962	$	964	$	924	$	886

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Segment Income (Loss) - Personal Insurance


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Revenues
Premiums	$	3,123		$	3,248		$	3,385		$	3,494		$	3,502
Net investment income	110			122			102			106			117
Fee income	7			7			8			8			7
Other revenues	21			18			22			22			23
Total revenues	3,261			3,395			3,517			3,630			3,649
Claims and expenses
Claims and claim adjustment expenses	2,171			2,774			2,795			2,829			2,672
Amortization of deferred acquisition costs	493			519			536			554			560
General and administrative expenses	345			352			333			332			359
Total claims and expenses	3,009			3,645			3,664			3,715			3,591
Segment income (loss) before income taxes	252			(250)			(147)			(85)			58
Income tax expense (benefit)	27			(57)			(36)			(24)			(25)
Segment income (loss)	$	225		$	(193)		$	(111)		$	(61)		$	83
Other statistics
Effective tax rate on net investment income	15.9		%	16.3		%	15.4		%	15.6		%	16.3		%
Net investment income (after-tax)	$	93		$	101		$	87		$	90		$	98
Catastrophes, net of reinsurance:
Pre-tax	$	80		$	508		$	285		$	325		$	331
After-tax	$	63		$	400		$	225		$	257		$	261
Prior year reserve development - favorable:
Pre-tax	$	5		$	16		$	18		$	7		$	28
After-tax	$	4		$	13		$	14		$	5		$	22

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance


($ in millions, net of tax)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Underwriting gain (loss)	$	119		$	(305)		$	(212)		$	(165)		$	(30)
Net investment income	93			101			87			90			98
Other income	13			11			14			14			15
Segment income (loss)	$	225		$	(193)		$	(111)		$	(61)		$	83
Combined ratio (1)
Loss and loss adjustment expense ratio	69.5		%	85.4		%	82.6		%	81.0		%	76.3		%
Underwriting expense ratio	25.8		%	25.8		%	24.6		%	24.3		%	25.2		%
Combined ratio	95.3		%	111.2		%	107.2		%	105.3		%	101.5		%

Impact on combined ratio:
Net favorable prior year reserve development	(0.1)		%	(0.5)		%	(0.5)		%	(0.2)		%	(0.8)		%
Catastrophes, net of reinsurance	2.6		%	15.6		%	8.4		%	9.3		%	9.4		%
Underlying combined ratio	92.8		%	96.1		%	99.3		%	96.2		%	92.9		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Billing and policy fees and other	$	24		$	23		$	23		$	24		$	24
Fee income	$	7		$	7		$	8		$	8		$	7
Non-insurance general and administrative expenses	$	3		$	4		$	4		$	4		$	5

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Selected Statistics - Personal Insurance


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Statutory underwriting
Gross written premiums	$	3,126	$	3,714	$	3,905	$	3,528	$	3,509
Net written premiums	$	2,983	$	3,685	$	3,864	$	3,515	$	3,353
Net earned premiums	$	3,123	$	3,248	$	3,385	$	3,494	$	3,502
Losses and loss adjustment expenses	2,171		2,774		2,795		2,829		2,672
Underwriting expenses	809		924		926		862		889
Statutory underwriting gain (loss)	$	143	$	(450)	$	(336)	$	(197)	$	(59)
Policies in force (in thousands)
Automobile	3,212		3,243		3,283		3,278		3,248
Homeowners and Other	6,284		6,338		6,367		6,375		6,355

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Net Written Premiums - Personal Insurance


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Net written premiums by product line
Domestic
Automobile	$	1,496	$	1,629	$	1,743	$	1,614	$	1,654
Homeowners and Other	1,344		1,868		1,952		1,752		1,565
Total Domestic	2,840		3,497		3,695		3,366		3,219
International	143		188		169		149		134
Total	$	2,983	$	3,685	$	3,864	$	3,515	$	3,353

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Selected Statistics - Personal Insurance - Automobile


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Statutory underwriting
Gross written premiums	$	1,605		$	1,755		$	1,857		$	1,717		$	1,751
Net written premiums	$	1,591		$	1,749		$	1,849		$	1,709		$	1,741
Net earned premiums	$	1,568		$	1,620		$	1,679		$	1,727		$	1,723
Losses and loss adjustment expenses	1,188			1,311			1,510			1,542			1,406
Underwriting expenses	382			408			408			387			409
Statutory underwriting gain (loss)	$	(2)		$	(99)		$	(239)		$	(202)		$	(92)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio	75.8		%	80.9		%	90.0		%	89.3		%	81.7		%
Underwriting expense ratio	23.5		%	23.4		%	22.2		%	22.1		%	23.0		%
Combined ratio	99.3		%	104.3		%	112.2		%	111.4		%	104.7		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	0.3		%	0.3		%	0.4		%	0.5		%	0.4		%
Catastrophes, net of reinsurance	0.2		%	2.2		%	7.9		%	0.4		%	0.9		%
Underlying combined ratio	98.8		%	101.8		%	103.9		%	110.5		%	103.4		%
Catastrophes, net of reinsurance:
Pre-tax	$	4		$	35		$	133		$	7		$	15
After-tax	$	3		$	28		$	105		$	5		$	11
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	(4)		$	(6)		$	(8)		$	(8)		$	(7)
After-tax	$	(3)		$	(4)		$	(6)		$	(7)		$	(6)

Policies in force (in thousands)	3,212			3,243			3,283			3,278			3,248
Change from prior year quarter	5.1		%	4.7		%	4.5		%	3.1		%	1.1		%
Change from prior quarter	1.0		%	1.0		%	1.2		%	(0.2)		%	(0.9)		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Billing and policy fees and other	$	14		$	14		$	14		$	14		$	14
Fee income	$	4		$	3		$	4		$	5		$	4

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Selected Statistics - Personal Insurance - Homeowners and Other


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Statutory underwriting
Gross written premiums	$	1,521		$	1,959		$	2,048		$	1,811		$	1,758
Net written premiums	$	1,392		$	1,936		$	2,015		$	1,806		$	1,612
Net earned premiums	$	1,555		$	1,628		$	1,706		$	1,767		$	1,779
Losses and loss adjustment expenses	983			1,463			1,285			1,287			1,266
Underwriting expenses	427			516			518			475			480
Statutory underwriting gain (loss)	$	145		$	(351)		$	(97)		$	5		$	33
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio	63.2		%	89.9		%	75.4		%	72.8		%	71.2		%
Underwriting expense ratio	28.0		%	28.1		%	26.9		%	26.6		%	27.3		%
Combined ratio	91.2		%	118.0		%	102.3		%	99.4		%	98.5		%
Impact on combined ratio:
Net favorable prior year reserve development	(0.6)		%	(1.3)		%	(1.5)		%	(0.8)		%	(2.0)		%
Catastrophes, net of reinsurance	4.9		%	29.0		%	8.9		%	18.0		%	17.8		%
Underlying combined ratio	86.9		%	90.3		%	94.9		%	82.2		%	82.7		%
Catastrophes, net of reinsurance:
Pre-tax	$	76		$	473		$	152		$	318		$	316
After-tax	$	60		$	372		$	120		$	252		$	250
Prior year reserve development - favorable:
Pre-tax	$	9		$	22		$	26		$	15		$	35
After-tax	$	7		$	17		$	20		$	12		$	28

Policies in force (in thousands)	6,284			6,338			6,367			6,375			6,355
Change from prior year quarter	5.7		%	4.3		%	3.2		%	2.3		%	1.1		%
Change from prior quarter	0.9		%	0.9		%	0.5		%	0.1		%	(0.3)		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Billing and policy fees and other	$	10		$	9		$	9		$	10		$	10
Fee income	$	3		$	4		$	4		$	3		$	3

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Interest Expense and Other


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Revenues
Other revenues	$	—	$	—	$	—	$	—	$	—

Claims and expenses
Interest expense	87		88		88		88		88
General and administrative expenses	8		9		8		6		9
Total claims and expenses	95		97		96		94		97

Loss before income tax benefit	(95)		(97)		(96)		(94)		(97)
Income tax benefit	(21)		(21)		(20)		(19)		(21)
Loss	$	(74)	$	(76)	$	(76)	$	(75)	$	(76)

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Consolidated Balance Sheet


($ and shares in millions)	March 31, 2023		December 31, 2022
Assets
Fixed maturities, available for sale, at fair value (amortized cost $77,827 and $77,380; allowance for expected credit losses of $4 and $3)	$	72,914	$	71,160
Equity securities, at fair value (cost $592 and $747)	649		807
Real estate investments	953		952
Short-term securities	3,243		3,470
Other investments	4,276		4,065
Total investments	82,035		80,454
Cash	767		799
Investment income accrued	594		650
Premiums receivable (net of allowance for expected credit losses of $77 and $77)	9,483		8,922
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $131 and $132)	8,091		8,063
Ceded unearned premiums	1,360		1,024
Deferred acquisition costs	3,005		2,836
Deferred taxes	1,568		1,877
Contractholder receivables (net of allowance for expected credit losses of $19 and $17)	3,598		3,579
Goodwill	3,959		3,952
Other intangible assets	285		287
Other assets	3,607		3,274
Total assets	$	118,352	$	115,717

Liabilities
Claims and claim adjustment expense reserves	$	59,064	$	58,649
Unearned premium reserves	19,143		18,240
Contractholder payables	3,617		3,596
Payables for reinsurance premiums	761		419

Debt	7,292		7,292
Other liabilities	5,423		5,961
Total liabilities	95,300		94,157
Shareholders’ equity
Common stock (1,750.0 shares authorized; 231.0 and 232.1 shares issued and outstanding)	24,703		24,565
Retained earnings	44,273		43,516
Accumulated other comprehensive loss	(5,386)		(6,445)
Treasury stock, at cost (556.0 and 553.5 shares)	(40,538)		(40,076)
Total shareholders’ equity	23,052		21,560
Total liabilities and shareholders’ equity	$	118,352	$	115,717


The Travelers Companies, Inc. Investment Portfolio


(at carrying value, $ in millions)	March 31, 2023		Pre-tax Book Yield (1)		December 31, 2022		Pre-tax Book Yield (1)
Investment portfolio
Taxable fixed maturities	$	47,018	3.09	%	$	43,664	2.94	%
Tax-exempt fixed maturities	25,896		2.92	%	27,496		2.91	%
Total fixed maturities	72,914		3.03	%	71,160		2.93	%
Non-redeemable preferred stocks	46		2.18	%	44		2.24	%
Common stocks	603				763
Total equity securities	649				807
Real estate investments	953				952
Short-term securities	3,243		4.92	%	3,470		4.38	%
Private equities	2,793				2,785
Hedge funds	230				225
Real estate partnerships	843				862
Other investments	410				193
Total other investments	4,276				4,065
Total investments	$	82,035			$	80,454



Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	(3,868)			$	(4,898)

(1) Yields are provided for those investments with an embedded book yield.


The Travelers Companies, Inc. Investment Portfolio - Fixed Maturities Data


(at carrying value, $ in millions)	March 31, 2023				December 31, 2022
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	6,352			$	5,438
Obligations of U.S. states and political subdivisions:
Pre-refunded	1,725				2,339
All other	28,308				29,040
Total	30,033				31,379
Debt securities issued by foreign governments	1,010				994
Mortgage-backed securities - principally obligations of U.S. Government agencies	2,864				1,991
Corporate and all other bonds	32,655				31,358
Total fixed maturities	$	72,914			$	71,160

Fixed Maturities Quality Characteristics (1)
	March 31, 2023				December 31, 2022
	Amount		% of Total		Amount		% of Total
Quality Ratings
Aaa	$	32,574	44.7	%	$	31,688	44.6	%
Aa	16,083		22.1		16,217		22.8
A	14,025		19.2		13,333		18.7
Baa	9,267		12.7		8,992		12.6
Total investment grade	71,949		98.7		70,230		98.7
Ba	578		0.8		580		0.8
B	317		0.4		281		0.4
Caa and lower	70		0.1		69		0.1
Total below investment grade	965		1.3		930		1.3
Total fixed maturities	$	72,914	100.0	%	$	71,160	100.0	%
Average weighted quality	Aa2, AA				Aa2, AA
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.5				4.6

(1) Rated using external rating agencies or by Travelers when a public rating does not exist. Below investment grade assets refer to securities rated “Ba” or below.


The Travelers Companies, Inc. Investment Income


($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023
Gross investment income
Fixed maturities	$	505		$	512		$	534		$	562		$	575
Short-term securities	2			9			23			39			47
Other	142			197			46			34			53
	649			718			603			635			675
Investment expenses	12			11			10			10			12
Net investment income, pre-tax	637			707			593			625			663
Income taxes	98			112			88			94			106
Net investment income, after-tax	$	539		$	595		$	505		$	531		$	557

Effective tax rate	15.4		%	15.8		%	14.8		%	15.1		%	16.0		%

Average invested assets (1)	$86,345			$86,660			$87,315			$88,242			$88,740

Average yield pre-tax (1)	2.9		%	3.3		%	2.7		%	2.8		%	3.0		%
Average yield after-tax	2.5		%	2.7		%	2.3		%	2.4		%	2.5		%

(1) Excludes net unrealized investment gains (losses), and is adjusted for cash, receivables for investment sales, payables on investment purchases and accrued investment income.


The Travelers Companies, Inc. Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Net realized investment gains (losses)
Fixed maturities	$	2	$	(21)	$	(42)	$	(37)	$	(11)
Equity securities	(19)		(64)		(26)		40		18
Other	(6)		(10)		(25)		4		(1)
Realized investment gains (losses) before tax	(23)		(95)		(93)		7		6
Related taxes	(4)		(21)		(21)		(2)		1
Net realized investment gains (losses)	$	(19)	$	(74)	$	(72)	$	9	$	5

Gross investment gains	$	13	$	16	$	15	$	69	$	46
Gross investment losses before impairments	(35)		(91)		(94)		(59)		(39)
Net investment gains (losses) before impairments	(22)		(75)		(79)		10		7
Net impairment (charges) recoveries	(1)		(20)		(14)		(3)		(1)
Net realized investment gains (losses) before tax	(23)		(95)		(93)		7		6
Related taxes	(4)		(21)		(21)		(2)		1
Net realized investment gains (losses)	$	(19)	$	(74)	$	(72)	$	9	$	5

($ in millions)	March 31, 2022		June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities	$	(1,768)	$	(4,814)	$	(8,018)	$	(6,217)	$	(4,909)
Other	(2)		(3)		(3)		(3)		(3)
Unrealized investment gains (losses) before tax	(1,770)		(4,817)		(8,021)		(6,220)		(4,912)
Related taxes	(379)		(1,025)		(1,704)		(1,322)		(1,044)
Balance, end of period	$	(1,391)	$	(3,792)	$	(6,317)	$	(4,898)	$	(3,868)


The Travelers Companies, Inc. Reinsurance Recoverables


($ in millions)	March 31, 2023		December 31, 2022
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)	$	3,784	$	3,792
Gross structured settlements (2)	2,784		2,802
Mandatory pools and associations (3)	1,654		1,601
Gross reinsurance recoverables (4)	8,222		8,195
Allowance for estimated uncollectible reinsurance (5)	(131)		(132)
Net reinsurance recoverables	$	8,091	$	8,063

(1) The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:

Reinsurer

A.M. Best Rating of Group's Predominant Reinsurer

March 31, 2023

Swiss Re Group

A+ second highest of 16 ratings

582

Berkshire Hathaway

A++ highest of 16 ratings

478

Munich Re Group

A+ second highest of 16 ratings

320

Axa Group

A+ second highest of 16 ratings

156

PartnerRe Group

A+ second highest of 16 ratings

138

The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims. The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves. Although this total comprises recoverables due from nearly one thousand different reinsurance entities, about half is attributable to 10 reinsurer groups.

(2) Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the amounts due from the life insurance company related to the structured settlement are included in both the claims and claim adjustment expense reserves and reinsurance recoverables in the Company’s consolidated balance sheet, as the Company retains the liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments. The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.

The Company’s top five groups included in gross structured settlements is as follows:

Group

A.M. Best Rating of Group's Predominant Insurer

March 31, 2023

Fidelity & Guaranty Life Group

A- fourth highest of 16 ratings

694

Genworth Financial Group

B- eighth highest of 16 ratings

307

John Hancock Group

A+ second highest of 16 ratings

248

Symetra Financial Corporation

A third highest of 16 ratings

213

Brighthouse Financial, Inc.

A third highest of 16 ratings

205

(3) The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in. These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market. The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state. In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.

(4) Of the total reinsurance recoverables at March 31, 2023, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.69 billion, or 87%, were rated by A.M. Best Company. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 13% of reinsurance recoverables comprised the following: 6% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools and 6% were balances from other companies not rated by A.M. Best Company. Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers.


The Travelers Companies, Inc. Net Reserves for Losses and Loss Adjustment Expense


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period	$	38,233	$	38,450	$	38,618	$	38,905	$	39,027
Incurred	2,472		2,656		2,911		2,682		2,858
Paid	(2,242)		(2,411)		(2,516)		(2,631)		(2,620)
Foreign exchange and other	(13)		(77)		(108)		71		14
End of period	$	38,450	$	38,618	$	38,905	$	39,027	$	39,279
Bond & Specialty Insurance
Beginning of period	$	3,938	$	4,079	$	4,118	$	4,042	$	4,167
Incurred	351		328		328		359		376
Paid	(197)		(242)		(345)		(282)		(238)
Foreign exchange and other	(13)		(47)		(59)		48		13
End of period	$	4,079	$	4,118	$	4,042	$	4,167	$	4,318
Personal Insurance
Beginning of period	$	6,418	$	6,498	$	6,940	$	7,192	$	7,568
Incurred	2,171		2,774		2,795		2,829		2,672
Paid	(2,103)		(2,306)		(2,486)		(2,467)		(2,674)
Foreign exchange and other	12		(26)		(57)		14		1
End of period	$	6,498	$	6,940	$	7,192	$	7,568	$	7,567
Total
Beginning of period	$	48,589	$	49,027	$	49,676	$	50,139	$	50,762
Incurred	4,994		5,758		6,034		5,870		5,906
Paid	(4,542)		(4,959)		(5,347)		(5,380)		(5,532)
Foreign exchange and other	(14)		(150)		(224)		133		28
End of period	$	49,027	$	49,676	$	50,139	$	50,762	$	51,164
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—	$	—	$	212	$	—	$	—

All other	(113)		(202)		(151)		(127)		(19)
Total Business Insurance (1)	(113)		(202)		61		(127)		(19)
Bond & Specialty Insurance	(35)		(73)		(63)		(51)		(58)
Personal Insurance	(5)		(16)		(18)		(7)		(28)
Total	$	(153)	$	(291)	$	(20)	$	(185)	$	(105)

(1) Excludes accretion of discount.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Asbestos Reserves


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Asbestos reserves
Beginning reserves:
Gross	$	1,687	$	1,635	$	1,547	$	1,765	$	1,674
Ceded	(346)		(331)		(322)		(372)		(369)
Net	1,341		1,304		1,225		1,393		1,305
Incurred losses and loss expenses:
Gross	—		—		287		—		—
Ceded	—		—		(75)		—		—
Paid loss and loss expenses:
Gross	52		85		68		93		54
Ceded	(16)		(8)		(25)		(4)		(21)
Foreign exchange and other:
Gross	—		(3)		(1)		2		—
Ceded	(1)		1		—		(1)		—
Ending reserves:
Gross	1,635		1,547		1,765		1,674		1,620
Ceded	(331)		(322)		(372)		(369)		(348)
Net	$	1,304	$	1,225	$	1,393	$	1,305	$	1,272

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Capitalization


($ in millions)	March 31, 2023			December 31, 2022
Debt

Short-term debt
Commercial paper	$	100		$	100
Total short-term debt	100			100
Long-term debt
7.75% Senior notes due April 15, 2026	200			200
7.625% Junior subordinated debentures due December 15, 2027	125			125
6.375% Senior notes due March 15, 2033 (1)	500			500
6.75% Senior notes due June 20, 2036 (1)	400			400
6.25% Senior notes due June 15, 2037 (1)	800			800
5.35% Senior notes due November 1, 2040 (1)	750			750
4.60% Senior notes due August 1, 2043 (1)	500			500
4.30% Senior notes due August 25, 2045 (1)	400			400
8.50% Junior subordinated debentures due December 15, 2045	56			56
3.75% Senior notes due May 15, 2046 (1)	500			500
8.312% Junior subordinated debentures due July 1, 2046	73			73
4.00% Senior notes due May 30, 2047 (1)	700			700
4.05% Senior notes due March 7, 2048 (1)	500			500
4.10% Senior notes due March 4, 2049 (1)	500			500
2.55% Senior notes due April 27, 2050 (1)	500			500
3.05% Senior notes due June 8, 2051 (1)	750			750
Total long-term debt	7,254			7,254
Unamortized fair value adjustment	37			38
Unamortized debt issuance costs	(99)			(100)
	7,192			7,192
Total debt	7,292			7,292
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	26,920			26,458
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	$	34,212		$	33,750
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	21.3		%	21.6		%

(1) Redeemable anytime with “make-whole” premium.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation


($ in millions)	March 31, 2023 (1)		December 31, 2022
Statutory capital and surplus	$	23,689	$	23,677
GAAP adjustments
Goodwill and intangible assets	3,546		3,551
Investments	(4,533)		(5,893)
Noninsurance companies	(4,304)		(4,412)
Deferred acquisition costs	3,005		2,836
Deferred federal income tax	330		630
Current federal income tax	(2)		(2)
Reinsurance recoverables	65		65
Furniture, equipment & software	832		742
Agents balances	185		156
Other	239		210
Total GAAP adjustments	(637)		(2,117)
GAAP shareholders’ equity	$	23,052	$	21,560

(1) Estimated and Preliminary

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.


The Travelers Companies, Inc. Statement of Cash Flows


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Cash flows from operating activities
Net income	$	1,018	$	551	$	454	$	819	$	975
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	23		95		93		(7)		(6)
Depreciation and amortization	234		210		195		187		204
Deferred federal income tax expense (benefit)	40		(68)		(102)		(56)		32
Amortization of deferred acquisition costs	1,310		1,365		1,406		1,434		1,462
Equity in income from other investments	(118)		(177)		(24)		(17)		(30)
Premiums receivable	(509)		(562)		210		(16)		(557)
Reinsurance recoverables	(282)		198		269		159		(24)
Deferred acquisition costs	(1,413)		(1,504)		(1,502)		(1,405)		(1,629)
Claims and claim adjustment expense reserves	679		593		422		356		381
Unearned premium reserves	727		671		635		(171)		893
Other	(443)		3		428		57		(689)
Net cash provided by operating activities	1,266		1,375		2,484		1,340		1,012
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,879		1,818		1,784		1,356		1,538
Proceeds from sales of investments:
Fixed maturities	1,044		1,657		1,250		1,706		2,364
Equity securities	63		21		20		34		28
Real estate investments	—		—		10		—		—
Other investments	81		92		69		60		64
Purchases of investments:
Fixed maturities	(4,409)		(3,589)		(4,102)		(3,808)		(4,335)
Equity securities	(63)		(23)		(26)		(24)		(34)
Real estate investments	(9)		(7)		(12)		(13)		(14)
Other investments	(135)		(117)		(162)		(160)		(139)
Net sales (purchases) of short-term securities	367		(110)		(364)		462		228
Securities transactions in the course of settlement	613		(377)		(22)		(193)		(35)
Acquisition, net of cash acquired	(4)		—		—		—		—
Other	(84)		(75)		(132)		(94)		(120)
Net cash used in investing activities	(657)		(710)		(1,687)		(674)		(455)


The Travelers Companies, Inc. Statement of Cash Flows (Continued)


($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations	(500)		(500)		(500)		(500)		(398)
Treasury stock acquired - net employee share-based compensation	(59)		—		(1)		(1)		(62)
Dividends paid to shareholders	(213)		(223)		(220)		(219)		(215)


Issuance of common stock - employee share options	159		35		11		62		82
Net cash used in financing activities	(613)		(688)		(710)		(658)		(593)
Effect of exchange rate changes on cash	(5)		(19)		(24)		18		4
Net increase (decrease) in cash	(9)		(42)		63		26		(32)
Cash at beginning of period	761		752		710		773		799
Cash at end of period	$	752	$	710	$	773	$	799	$	767
Income taxes paid (received)	$	10	$	542	$	111	$	154	$	(16)
Interest paid	$	59	$	115	$	60	$	115	$	60


The Travelers Companies, Inc. Glossary of Financial Measures and Description of Reportable Business Segments

The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below. 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.

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

Average shareholders’ equity is (a) the sum of total shareholders’ equity 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 realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders’ equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)). Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity 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.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity


	As of
($ in millions)	March 31, 2022		June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023
Shareholders’ equity	$	25,531	$	22,874	$	19,906	$	21,560	$	23,052
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity	1,391		3,792		6,317		4,898		3,868
Net realized investment (gains) losses, net of tax	19		93		165		156		(5)

Adjusted shareholders’ equity	$	26,941	$	26,759	$	26,388	$	26,614	$	26,915

Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented. Core return on equity is the ratio of annualized core income (loss) 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.

A catastrophe is a severe loss designated a catastrophe by internationally recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure. Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount. Their effects are included in net and core 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. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is exceeded and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company. Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2023 ranges from $20 million to $30 million of losses before reinsurance and taxes.


The Travelers Companies, Inc. Glossary of Financial Measures and Description of Reportable Business Segments

Combined ratio For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this financial supplement, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this financial supplement is based on net earned premiums. For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio. For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums. Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.

Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.

Total capital is the sum of total shareholders’ equity and debt. Debt-to-capital ratio excluding net unrealized gain (loss) on investments, net of tax, included in shareholders’ equity is the ratio of debt to total capital excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity. In the opinion of the Company’s management, the debt to capital ratio is useful in an analysis of the Company’s financial leverage.

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

Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s. Business Insurance is organized as follows: Select Accounts; Middle Market including Commercial Accounts, Construction, Technology, Public Sector Services, Oil & Gas, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited. Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company’s asbestos and environmental liabilities, and the assumed reinsurance and certain other runoff operations.

Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches. The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers’ compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.

Bond & Specialty Insurance’s surety business in Brazil and Colombia is conducted through Junto Holding Brasil S.A. (Junto) and Junto Holding Latam S.A. in Brazil. The Company owns 49.5% of both Junto, a market leader in surety coverages in Brazil, and Junto Holding Latam S.A., which owns a majority interest in JMalucelli Travelers Seguros S.A., a Colombian surety provider. These joint venture investments are accounted for using the equity method and are included in “other investments” on the consolidated balance sheet.

Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.


Exhibit No.						Description
99.1						Press Release, dated April 19, 2023, reporting results of operations (This exhibit is furnished and not filed.)

99.2						First Quarter 2023 Financial Supplement of The Travelers Companies, Inc. (This exhibit is furnished and not filed.)

101.1						Pursuant to Rule 406 of Regulation S-T, the cover page to this Current Report on Form 8-K is formatted in Inline XBRL.

104.1						Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101.1.)


			THE TRAVELERS COMPANIES, INC.


Date:	April 19, 2023	By:	/S/ CHRISTINE K. KALLA
			Name: Christine K. Kalla
			Executive Vice President and General Counsel