8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________

FORM 8-K

______________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 18, 2023

_______________________________________________

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

_______________________________________________

Minnesota	001-10898	41-0518860
(State or other jurisdiction of<br>incorporation)	(Commission File Number)	(I.R.S. Employer<br>Identification No.)

485 Lexington Avenue

New York, New York 10017

(Address of principal executive offices) (Zip Code)

(917) 778-6000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, without par value	TRV	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02.  Results of Operations and Financial Condition.

On October 18, 2023, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2023, and the availability of the Company’s third quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.

As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.  Financial Statements and Exhibits.

(d)                                 Exhibits.

Exhibit No.	Description
99.1	Press Release, dated October 18, 2023, reporting results of operations (This exhibit is furnished and not filed.)
99.2	Third 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.)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, The Travelers Companies, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			THE TRAVELERS COMPANIES, INC.
Date:	October 18, 2023	By:	/S/   CHRISTINE K. KALLA
			Name: Christine K. Kalla
			Executive Vice President and General Counsel

Document

                                            Exhibit 99.1

The Travelers Companies, Inc.

485 Lexington Avenue

New York, NY 10017-2630

www.travelers.com

NYSE: TRV

Travelers Reports Third Quarter 2023 Net Income of $404 million and Core Income of $454 million

Third Quarter 2023 Net Income per Diluted Share of $1.74 and Return on Equity of 7.7%

Third Quarter 2023 Core Income per Diluted Share of $1.95 and Core Return on Equity of 6.9%

•Excellent underlying underwriting income of $868 million pre-tax, up 43%.

•Consolidated combined ratio of 101.0%; and underlying combined ratio of 90.6%, a 1.9 point improvement.

•Catastrophe losses of $850 million pre-tax compared to $512 million pre-tax in the prior year quarter.

•Net unfavorable prior year reserve development of $154 million pre-tax primarily due to an addition to asbestos reserves of $284 million pre-tax.

•Record net written premiums of $10.493 billion, up 14% over the prior year quarter, including growth in all three segments.

•Strong renewal premium change in all three segments, including record levels in Business Insurance and Personal Automobile.

•Net investment income increased 30% pre-tax over the prior year quarter primarily due to strong fixed income returns.

New York, October 18, 2023 — The Travelers Companies, Inc. today reported net income of $404 million, or $1.74 per diluted share, for the quarter ended September 30, 2023, compared to $454 million, or $1.89 per diluted share, in the prior year quarter. Core income in the current quarter was $454 million, or $1.95 per diluted share, compared to $526 million, or $2.20 per diluted share, in the prior year quarter. Core income decreased primarily due to higher catastrophe losses and net unfavorable prior year reserve development (driven by the Company’s run-off businesses) compared to net favorable prior year reserve development in the prior year quarter, partially offset by a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses) and higher net investment income. Net realized investment losses in the current quarter were $65 million pre-tax ($50 million after-tax), compared to $93 million pre-tax ($72 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 September 30,												Nine Months Ended September 30,
				2022				Change				2023				2022				Change
Net written premiums	$	10,493			$	9,198			14	%			$	30,207			$	26,585			14	%
Total revenues	$	10,635			$	9,303			14				$	30,437			$	27,248			12
Net income	$	404			$	454			(11)				$	1,365			$	2,023			(33)
per diluted share	$	1.74			$	1.89			(8)				$	5.83			$	8.34			(30)
Core income	$	454			$	526			(14)				$	1,439			$	2,188			(34)
per diluted share	$	1.95			$	2.20			(11)				$	6.15			$	9.02			(32)
Diluted weighted average shares outstanding	231.1				237.9				(3)				232.5				240.9				(3)
Combined ratio	101.0		%		98.2		%		2.8		pts		101.0		%		96.0		%		5.0		pts
Underlying combined ratio	90.6		%		92.5		%		(1.9)		pts		90.8		%		92.2		%		(1.4)		pts
Return on equity	7.7		%		8.5		%		(0.8)		pts		8.3		%		11.1		%		(2.8)		pts
Core return on equity	6.9		%		7.9		%		(1.0)		pts		7.2		%		10.9		%		(3.7)		pts

All values are in US Dollars.

	As of						Change From
	September 30,<br>2023		December 31,<br>2022		September 30,<br>2022		December 31,<br>2022		September 30,<br>2022
Book value per share	$	87.47	$	92.90	$	84.94	(6)	%	3	%
Adjusted book value per share	115.78		114.00		111.90		2	%	3	%

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

“Core income of $454 million for the quarter benefited from very strong underlying underwriting returns and net investment income but was also impacted by elevated catastrophe losses,” said Alan Schnitzer, Chairman and Chief Executive Officer. “We are very pleased with the underlying fundamentals of our business. Underlying underwriting income of $868 million pre-tax was up 43% over the prior year quarter, driven by record net earned premiums of $9.7 billion and a consolidated underlying combined ratio which improved 1.9 points to an excellent 90.6%. The underlying combined ratio in our commercial segments remained excellent, and the underlying combined ratio in Personal Insurance improved by more than 5 points to 94.2%. Our high-quality investment portfolio continued to perform extremely well, generating after-tax net investment income of $640 million.

“Through excellent marketplace execution across all three segments, we delivered growth of $1.3 billion, or 14%, in net written premiums to a record $10.5 billion. In Business Insurance, we grew net written premiums by 16%. Renewal premium change in the segment was very strong at 12.9%. Renewal rate change accelerated sequentially to 7.9%, while retention remained historically high at 87%. New business was strong and higher broadly across the segment. In Bond & Specialty Insurance, we grew net written premiums to a milestone $1 billion, achieved 91% retention of our high-quality management liability business and grew net written premiums in our industry-leading surety business by 13%. Given the attractive returns, we are very pleased with the strong production results in both of our commercial business segments. In Personal Insurance, 14% top-line growth was driven by higher pricing. Renewal premium change was 19.4% in our Homeowners and Other business and increased to a record high 18.2% in our Auto business.

“The fundamentals in our commercial businesses are terrific, the underlying results in our personal insurance business are improving and heading in the right direction and we are achieving steadily rising returns in our growing fixed income portfolio. Alongside that momentum, we are making excellent progress in the execution of our focused innovation agenda. For those reasons and more, we are very confident in the outlook across our diversified business.”

Consolidated Results

	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change				2023				2022				Change
Underwriting gain (loss):	$	(136)			$	115			$	(251)			$	(409)			$	887			$	(1,296)
Underwriting gain (loss) includes:
Net favorable (unfavorable) prior year reserve development	(154)				20				(174)				11				464				(453)
Catastrophes, net of reinsurance	(850)				(512)				(338)				(2,866)				(1,418)				(1,448)
Net investment income	769				593				176				2,144				1,937				207
Other income (expense), including interest expense	(96)				(87)				(9)				(289)				(246)				(43)
Core income before income taxes	537				621				(84)				1,446				2,578				(1,132)
Income tax expense	83				95				(12)				7				390				(383)
Core income	454				526				(72)				1,439				2,188				(749)
Net realized investment losses after income taxes	(50)				(72)				22				(74)				(165)				91
Net income	$	404			$	454			$	(50)			$	1,365			$	2,023			$	(658)
Combined ratio	101.0		%		98.2		%		2.8			pts	101.0		%		96.0		%		5.0			pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development	1.6			pts	(0.2)			pts	1.8			pts	(0.1)			pts	(1.9)			pts	1.8			pts
Catastrophes, net of reinsurance	8.8			pts	5.9			pts	2.9			pts	10.3			pts	5.7			pts	4.6			pts
Underlying combined ratio	90.6		%		92.5		%		(1.9)			pts	90.8		%		92.2		%		(1.4)			pts
Net written premiums
Business Insurance	$	5,080			$	4,370			16		%		$	15,412			$	13,245			16		%
Bond & Specialty Insurance	1,003				964				4				2,853				2,808				2
Personal Insurance	4,410				3,864				14				11,942				10,532				13
Total	$	10,493			$	9,198			14		%		$	30,207			$	26,585			14		%

Third Quarter 2023 Results

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

Net income of $404 million decreased $50 million, due to lower core income, partially offset by lower net realized investment losses. Core income of $454 million decreased $72 million, primarily due to higher catastrophe losses and net unfavorable prior year reserve development (driven by the Company’s run-off businesses) compared to net favorable prior year reserve development in the prior year quarter, partially offset by a higher underlying underwriting gain and higher net investment income. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $65 million pre-tax ($50 million after-tax), compared to $93 million pre-tax ($72 million after-tax) in the prior year quarter.

Combined ratio:

•The combined ratio of 101.0% increased 2.8 points due to higher catastrophe losses (2.9 points) and net unfavorable prior year reserve development compared to net favorable prior year reserve development in the prior year quarter (1.8 points), partially offset by a lower underlying combined ratio (1.9 points).

•The underlying combined ratio of 90.6% improved 1.9 points. See below for further details by segment.

•Net unfavorable prior year reserve development in Business Insurance was partially offset by net favorable prior year reserve development in Bond & Specialty Insurance and Personal Insurance. See below for further details by segment.

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

Net investment income of $769 million pre-tax ($640 million after-tax) increased 30%. 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 increased over the prior year quarter due to

higher private equity 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 $10.493 billion increased 14%. See below for further details by segment.

Year-to-Date 2023 Results

(All comparisons vs. year-to-date 2022, unless noted otherwise)

Net income of $1.365 billion decreased $658 million, due to lower core income, partially offset by lower net realized investment losses. Core income of $1.439 billion decreased $749 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 year period 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 period 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 losses were $94 million pre-tax ($74 million after-tax), compared to $211 million pre-tax ($165 million after-tax) in the prior year period.

Combined ratio:

•The combined ratio of 101.0% increased 5.0 points due to higher catastrophe losses (4.6 points) and lower net favorable prior year reserve development (1.8 points), partially offset by a lower underlying combined ratio (1.4 points).

•The underlying combined ratio of 90.8% improved 1.4 points. See below for further details by segment.

•Net favorable prior year reserve development in Bond & Specialty Insurance and Personal Insurance was partially offset by net unfavorable prior year reserve development in Business Insurance. See below for further details by segment.

•Catastrophe losses included the third quarter events described above, as well as numerous severe wind and hail storms in multiple states in the first six months of 2023.

Net investment income of $2.144 billion pre-tax ($1.791 billion after-tax) increased 11%. Income from the fixed income investment portfolio increased over the prior year period due to a higher average yield and growth in fixed maturity investments. Income from the non-fixed income investment portfolio was solid but decreased from a strong level in the prior year period, primarily due to lower private equity and real estate partnership returns.

Net written premiums of $30.207 billion increased 14%. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $19.978 billion decreased 7% from year-end 2022, primarily due to higher net unrealized investment losses, common share repurchases and dividends to shareholders, partially offset by net income of $1.365 billion. Net unrealized investment losses included in shareholders’ equity were $8.206 billion pre-tax ($6.466 billion after-tax), compared to $6.220 billion pre-tax ($4.898 billion after-tax) at year-end 2022. The increase in net unrealized investment losses was driven by higher interest rates. Book value per share of $87.47 increased 3% over September 30, 2022, and decreased 6% from year-end 2022. Adjusted book value per share of $115.78, which excludes net unrealized investment gains (losses), increased 3% over September 30, 2022, and increased 2% over year-end 2022.

The Company repurchased 0.6 million shares during the third quarter at an average price of $164.50 per share for a total cost of $101 million. At September 30, 2023, the Company had $6.105 billion of capacity remaining under its share repurchase authorizations approved by the Board of Directors. At the end of the quarter, statutory capital and surplus was $23.267 billion, and the ratio of debt-to-capital was 28.7%. The ratio of debt-to-capital excluding after-tax net unrealized investment gains (losses) included in shareholders’ equity was 23.3%, within the Company’s target range of 15% to 25%.

The Board of Directors declared a regular quarterly dividend of $1.00 per share. The dividend is payable December 29, 2023, to shareholders of record at the close of business on December 8, 2023.

Business Insurance Segment Financial Results

	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change				2023				2022				Change
Underwriting gain:	$	31			$	148			$	(117)			$	290			$	787			$	(497)
Underwriting gain includes:
Net favorable (unfavorable) prior year reserve development	(263)				(61)				(202)				(345)				254				(599)
Catastrophes, net of reinsurance	(203)				(216)				13				(798)				(529)				(269)
Net investment income	551				426				125				1,533				1,415				118
Other income (expense)	(13)				(14)				1				(56)				(19)				(37)
Segment income before income taxes	569				560				9				1,767				2,183				(416)
Income tax expense	101				89				12				141				377				(236)
Segment income	$	468			$	471			$	(3)			$	1,626			$	1,806			$	(180)
Combined ratio	99.1		%		96.3		%		2.8			pts	97.7		%		93.5		%		4.2			pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development	5.3			pts	1.4			pts	3.9			pts	2.4			pts	(2.0)			pts	4.4			pts
Catastrophes, net of reinsurance	4.1			pts	4.9			pts	(0.8)			pts	5.7			pts	4.1			pts	1.6			pts
Underlying combined ratio	89.7		%		90.0		%		(0.3)			pts	89.6		%		91.4		%		(1.8)			pts
Net written premiums by market
Domestic
Select Accounts	$	824			$	739			12		%		$	2,615			$	2,365			11		%
Middle Market	2,750				2,465				12				8,294				7,410				12
National Accounts	247				247				—				818				790				4
National Property and Other	874				702				25				2,326				1,889				23
Total Domestic	4,695				4,153				13				14,053				12,454				13
International	385				217				77				1,359				791				72
Total	$	5,080			$	4,370			16		%		$	15,412			$	13,245			16		%

Third Quarter 2023 Results

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

Segment income for Business Insurance was $468 million after-tax, a decrease of $3 million. Segment income decreased primarily due to higher net unfavorable prior year reserve development, partially offset by higher net investment income, a higher underlying underwriting gain and lower catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 99.1% increased 2.8 points due to higher net unfavorable prior year reserve development (3.9 points), partially offset by lower catastrophe losses (0.8 points) and a lower underlying combined ratio (0.3 points).

•The underlying combined ratio improved 0.3 points to a very strong 89.7%.

•Net unfavorable prior year reserve development was primarily driven by (i) net unfavorable prior year reserve development in the run-off operations within the general liability product line, including an addition to asbestos reserves of $284 million and additions to reserves attributable to childhood sexual molestation claims and environmental claims, partially offset by (ii) net favorable prior year reserve development in the ongoing operations, including 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 commercial automobile product line for recent accident years. Net unfavorable prior year reserve development in the prior year quarter included an addition to asbestos reserves of $212 million. The Company completes its annual in-depth asbestos claim review in the third quarter of each year.

Net written premiums of $5.080 billion increased 16%, 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 effective January 1, 2023, which is included in the segment’s International results.

Year-to-Date 2023 Results

(All comparisons vs. year-to-date 2022, unless noted otherwise)

Segment income for Business Insurance was $1.626 billion after-tax, a decrease of $180 million. Segment income decreased primarily due to net unfavorable prior year reserve development compared to net favorable prior year reserve development in the same period of 2022 and higher catastrophe losses, 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 year period 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 period included a $3 million reduction in income tax expense as a result of the resolution of prior year tax matters.

Combined ratio:

•The combined ratio of 97.7% increased 4.2 points due to net unfavorable prior year reserve development compared to net favorable prior year reserve development in the same period of 2022 (4.4 points) and higher catastrophe losses (1.6 points), partially offset by a lower underlying combined ratio (1.8 points).

•The underlying combined ratio improved 1.8 points to a very strong 89.6%.

•Net unfavorable prior year reserve development was primarily driven by (i) net unfavorable prior year reserve development in the run-off operations within the general liability product line, including an addition to asbestos reserves and additions to reserves attributable to childhood sexual molestation claims and environmental claims, partially offset by (ii) net favorable prior year reserve development in the ongoing operations, including 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 multiple accident years and commercial automobile product line for recent accident years.

Net written premiums of $15.412 billion increased 16%, reflecting the same factors described above for the third quarter of 2023.

Bond & Specialty Insurance Segment Financial Results

	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change				2023				2022				Change
Underwriting gain:	$	241			$	234			$	7			$	617			$	629			$	(12)
Underwriting gain includes:
Net favorable prior year reserve development	72				63				9				249				171				78
Catastrophes, net of reinsurance	(5)				(11)				6				(31)				(16)				(15)
Net investment income	86				65				21				237				188				49
Other income	4				5				(1)				14				11				3
Segment income before income taxes	331				304				27				868				828				40
Income tax expense	66				62				4				166				141				25
Segment income	$	265			$	242			$	23			$	702			$	687			$	15
Combined ratio	73.6		%		72.5		%		1.1			pts	76.8		%		74.8		%		2.0			pts
Impact on combined ratio
Net favorable prior year reserve development	(7.7)			pts	(7.2)			pts	(0.5)			pts	(9.1)			pts	(6.7)			pts	(2.4)			pts
Catastrophes, net of reinsurance	0.6			pts	1.3			pts	(0.7)			pts	1.1			pts	0.6			pts	0.5			pts
Underlying combined ratio	80.7		%		78.4		%		2.3			pts	84.8		%		80.9		%		3.9			pts
Net written premiums
Domestic
Management Liability	$	551			$	554			(1)		%		$	1,603			$	1,592			1		%
Surety	321				284				13				871				828				5
Total Domestic	872				838				4				2,474				2,420				2
International	131				126				4				379				388				(2)
Total	$	1,003			$	964			4		%		$	2,853			$	2,808			2		%

Third Quarter 2023 Results

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

Segment income for Bond & Specialty Insurance was $265 million after-tax, an increase of $23 million. Segment income increased primarily due to higher net investment income, higher net favorable prior year reserve development and lower catastrophe losses, partially offset by a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 73.6% increased 1.1 points due to a higher underlying combined ratio (2.3 points), partially offset by lower catastrophe losses (0.7 points) and higher net favorable prior year reserve development (0.5 points).

•The underlying combined ratio of 80.7% increased 2.3 points, primarily driven by a higher expense ratio.

•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 $1.003 billion increased 4%, reflecting strong production in surety, as well as strong retention and new business and positive renewal premium change in management liability.

Year-to-Date 2023 Results

(All comparisons vs. year-to-date 2022, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $702 million after-tax, an increase of $15 million. Segment income increased primarily due to higher net favorable prior year reserve development and higher net investment income, partially offset by a lower underlying underwriting gain and higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the current year period 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 period included a $24 million reduction in income tax expense as a result of the resolution of prior year tax matters.

Combined ratio:

•The combined ratio of 76.8% 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 of 84.8% increased 3.9 points, primarily driven by losses from a small number of surety accounts and loss activity related to the disruption in the banking sector, as well as a higher expense ratio.

•Net favorable prior year reserve development was primarily driven by the same factors described above for the third quarter of 2023.

Net written premiums of $2.853 billion increased 2%, reflecting the same factors described above for the third quarter of 2023.

Personal Insurance Segment Financial Results

	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2023				2022				Change				2023				2022				Change
Underwriting loss:	$	(408)			$	(267)			$	(141)			$	(1,316)			$	(529)			$	(787)
Underwriting loss includes:
Net favorable prior year reserve development	37				18				19				107				39				68
Catastrophes, net of reinsurance	(642)				(285)				(357)				(2,037)				(873)				(1,164)
Net investment income	132				102				30				374				334				40
Other income	20				18				2				59				50				9
Segment loss before income taxes	(256)				(147)				(109)				(883)				(145)				(738)
Income tax benefit	(63)				(36)				(27)				(235)				(66)				(169)
Segment loss	$	(193)			$	(111)			$	(82)			$	(648)			$	(79)			$	(569)
Combined ratio	110.0		%		107.2		%		2.8			pts	111.3		%		104.7		%		6.6			pts
Impact on combined ratio
Net favorable prior year reserve development	(1.0)			pts	(0.5)			pts	(0.5)			pts	(1.0)			pts	(0.4)			pts	(0.6)			pts
Catastrophes, net of reinsurance	16.8			pts	8.4			pts	8.4			pts	18.5			pts	8.9			pts	9.6			pts
Underlying combined ratio	94.2		%		99.3		%		(5.1)			pts	93.8		%		96.2		%		(2.4)			pts
Net written premiums
Domestic
Automobile	$	2,022			$	1,743			16		%		$	5,499			$	4,868			13		%
Homeowners and Other	2,216				1,952				14				5,954				5,164				15
Total Domestic	4,238				3,695				15				11,453				10,032				14
International	172				169				2				489				500				(2)
Total	$	4,410			$	3,864			14		%		$	11,942			$	10,532			13		%

Third Quarter 2023 Results

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

Segment loss for Personal Insurance was $193 million after-tax, compared with a segment loss of $111 million in the prior year quarter. The increase in segment loss was driven by higher catastrophe losses, partially offset by a higher underlying underwriting gain, higher net investment income and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 110.0% increased 2.8 points due to higher catastrophe losses (8.4 points), partially offset by a lower underlying combined ratio (5.1 points) and higher net favorable prior year reserve development (0.5 points).

•The underlying combined ratio of 94.2% improved 5.1 points, reflecting improvement in both Homeowners and Other and Automobile.

•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 $4.410 billion increased 14%, primarily reflecting higher pricing in both Domestic Homeowners and Other and Domestic Automobile.

Year-to-Date 2023 Results

(All comparisons vs. year-to-date 2022, unless noted otherwise)

Segment loss for Personal Insurance was $648 million after-tax, compared with a segment loss of $79 million in the same period of 2022. The increase in segment loss was driven by higher catastrophe losses, partially offset by a higher underlying underwriting gain, 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 year period 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 period included a $20 million reduction in income tax expense as a result of the resolution of prior year tax matters.

Combined ratio:

•The combined ratio of 111.3% increased 6.6 points due to higher catastrophe losses (9.6 points), partially offset by a lower underlying combined ratio (2.4 points) and higher net favorable prior year reserve development (0.6 points).

•The underlying combined ratio of 93.8% improved 2.4 points, reflecting an improvement in Homeowners and Other, partially offset by an increase in Automobile.

•Net favorable prior year reserve development was primarily driven by the same factors described above for the third quarter of 2023.

Net written premiums of $11.942 billion increased 13%, reflecting the same factors described above for the third quarter of 2023.

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 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, October 18, 2023. Investors can access the call via webcast at 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 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 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 investor.travelers.com, our Facebook page at facebook.com/travelers and our X account (@Travelers) at 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 investor.travelers.com.

Travelers is organized 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.

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 and the Republic of Ireland, as well as Brazil through a joint venture, in each case utilizing various degrees of financially-based underwriting approaches.

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, including executing on that agenda with respect to artificial intelligence;

•new product offerings;

•the impact of developments in the tort environment;

•the impact of developments in the geopolitical environment; and

•the impact of a U.S. government shutdown.

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;

•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, including with respect to artificial intelligence; 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 October 18, 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 September 30,				Nine Months Ended September 30,
($ in millions, after-tax)	2023		2022		2023		2022
Net income	$	404	$	454	$	1,365	$	2,023
Adjustments:
Net realized investment losses	50		72		74		165
Core income	$	454	$	526	$	1,439	$	2,188
	Three Months Ended September 30,				Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---
($ in millions, pre-tax)	2023		2022		2023		2022
Net income	$	472	$	528	$	1,352	$	2,367
Adjustments:
Net realized investment losses	65		93		94		211
Core income	$	537	$	621	$	1,446	$	2,578			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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Diluted income per share
Net income	$	1.74	$	1.89	$	5.83	$	8.34
Adjustments:
Net realized investment losses, after-tax	0.21		0.31		0.32		0.68
Core income	$	1.95	$	2.20	$	6.15	$	9.02

Reconciliation of Segment Income (Loss) to Total Core Income

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions, after-tax)	2023		2022		2023		2022
Business Insurance	$	468	$	471	$	1,626	$	1,806
Bond & Specialty Insurance	265		242		702		687
Personal Insurance	(193)		(111)		(648)		(79)
Total segment income	540		602		1,680		2,414
Interest Expense and Other	(86)		(76)		(241)		(226)
Total core income	$	454	$	526	$	1,439	$	2,188

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 September 30,
($ in millions)	2023		2022
Shareholders’ equity	$	19,978	$	19,906
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity	6,466		6,317
Net realized investment losses, net of tax	74		165
Adjusted shareholders’ equity	$	26,518	$	26,388			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 September 30,						Nine Months Ended September 30,
($ in millions, after-tax)	2023			2022			2023			2022
Annualized net income	$	1,615		$	1,815		$	1,820		$	2,697
Average shareholders’ equity	20,916			21,390			21,892			24,267
Return on equity	7.7		%	8.5		%	8.3		%	11.1		%
Annualized core income	$	1,818		$	2,104		$	1,919		$	2,917
Adjusted average shareholders’ equity	26,463			26,481			26,613			26,673
Core return on equity	6.9		%	7.9		%	7.2		%	10.9		%
	Twelve Months Ended <br>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.

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.

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 September 30,				Nine Months Ended September 30,
($ in millions, after-tax, except as noted)	2023		2022		2023		2022
Net income	$	404	$	454	$	1,365	$	2,023
Net realized investment losses	50		72		74		165
Core income	454		526		1,439		2,188
Net investment income	(640)		(505)		(1,791)		(1,639)
Other (income) expense, including interest expense	79		69		237		202
Underwriting income (loss)	(107)		90		(115)		751
Income tax expense (benefit) on underwriting results	(29)		25		(294)		136
Pre-tax underwriting income (loss)	(136)		115		(409)		887
Pre-tax impact of net (favorable) unfavorable prior year reserve development	154		(20)		(11)		(464)
Pre-tax impact of catastrophes	850		512		2,866		1,418
Pre-tax underlying underwriting income	$	868	$	607	$	2,446	$	1,841

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

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions, after-tax)	2023		2022		2023		2022
Net income	$	404	$	454	$	1,365	$	2,023
Net realized investment losses	50		72		74		165
Core income	454		526		1,439		2,188
Net investment income	(640)		(505)		(1,791)		(1,639)
Other (income) expense, including interest expense	79		69		237		202
Underwriting income (loss)	(107)		90		(115)		751
Impact of net (favorable) unfavorable prior year reserve development	122		(16)		(8)		(367)
Impact of catastrophes	669		404		2,262		1,118
Underlying underwriting income	$	684	$	478	$	2,139	$	1,502			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 September 30,						Nine Months Ended September 30,
($ in millions, pre-tax)	2023			2022			2023			2022
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$	7,149		$	6,088		$	20,335		$	16,930
Less:
Policyholder dividends	14			14			36			31
Allocated fee income	42			38			124			112
Loss ratio numerator	$	7,093		$	6,036		$	20,175		$	16,787
Underwriting expense ratio
Amortization of deferred acquisition costs	$	1,604		$	1,406		$	4,585		$	4,081
General and administrative expenses (G&A)	1,312			1,193			3,887			3,607
Less:
Non-insurance G&A	99			83			286			252
Allocated fee income	70			66			200			195
Billing and policy fees and other	28			27			84			81
Expense ratio numerator	$	2,719		$	2,423		$	7,902		$	7,160
Earned premium	$	9,718		$	8,615		$	27,788		$	24,946
Combined ratio (1)
Loss and loss adjustment expense ratio	73.0		%	70.1		%	72.6		%	67.3		%
Underwriting expense ratio	28.0		%	28.1		%	28.4		%	28.7		%
Combined ratio	101.0		%	98.2		%	101.0		%	96.0		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	1.6		%	(0.2)		%	(0.1)		%	(1.9)		%
Catastrophes, net of reinsurance	8.8		%	5.9		%	10.3		%	5.7		%
Underlying combined ratio	90.6		%	92.5		%	90.8		%	92.2		%

(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 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)	September 30,<br>2023		December 31,<br>2022		September 30,<br>2022
Shareholders’ equity	$	19,978	$	21,560	$	19,906
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity	(6,466)		(4,898)		(6,317)
Shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity	26,444		26,458		26,223
Less:
Goodwill	3,955		3,952		3,922
Other intangible assets	278		287		287
Impact of deferred tax on other intangible assets	(64)		(60)		(54)
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity	$	22,275	$	22,279	$	22,068
Common shares outstanding	228.4		232.1		234.3
Book value per share	$	87.47	$	92.90	$	84.94
Adjusted book value per share	115.78		114.00		111.90
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity	97.53		96.00		94.17

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 gains (losses) 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)	September 30,<br>2023			December 31,<br>2022
Debt	$	8,031		$	7,292
Shareholders’ equity	19,978			21,560
Total capitalization	28,009			28,852
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity	(6,466)			(4,898)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity	$	34,475		$	33,750
Debt-to-capital ratio	28.7		%	25.3		%
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity	23.3		%	21.6		%

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

	As of September 30,
($ in millions)	2023		2022
Invested assets	$	82,956	$	78,113
Less: Net unrealized investment losses, pre-tax	(8,206)		(8,021)
Invested assets excluding net unrealized investment losses	$	91,162	$	86,134
	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

20

Document

| The Travelers Companies, Inc.<br><br>Financial Supplement - Third Quarter 2023 | Exhibit 99.2 | | --- | --- || | Page Number | | --- | --- | | Consolidated Results | | | Financial Highlights | 1 | | Reconciliation to Net Income (Loss) and Earnings Per Share | 2 | | Statement of Income (Loss) | 3 | | Net Income (Loss) 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.<br><br>Financial Highlights | | --- || ($ and shares in millions, except for per share data) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net income (loss) | $ | 1,018 | | $ | 551 | | $ | 454 | | $ | 819 | | $ | 975 | | $ | (14) | | $ | 404 | | $ | 2,023 | | $ | 1,365 | | | Net income (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Basic | $ | 4.20 | | $ | 2.29 | | $ | 1.91 | | $ | 3.49 | | $ | 4.18 | | $ | (0.07) | | $ | 1.75 | | $ | 8.43 | | $ | 5.89 | | | Diluted | $ | 4.15 | | $ | 2.27 | | $ | 1.89 | | $ | 3.44 | | $ | 4.13 | | $ | (0.07) | | $ | 1.74 | | $ | 8.34 | | $ | 5.83 | | | Core income | $ | 1,037 | | $ | 625 | | $ | 526 | | $ | 810 | | $ | 970 | | $ | 15 | | $ | 454 | | $ | 2,188 | | $ | 1,439 | | | Core income per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Basic | $ | 4.27 | | $ | 2.60 | | $ | 2.22 | | $ | 3.45 | | $ | 4.16 | | $ | 0.06 | | $ | 1.97 | | $ | 9.12 | | $ | 6.21 | | | Diluted | $ | 4.22 | | $ | 2.57 | | $ | 2.20 | | $ | 3.40 | | $ | 4.11 | | $ | 0.06 | | $ | 1.95 | | $ | 9.02 | | $ | 6.15 | | | Return on equity | 15.0 | | % | 9.1 | | % | 8.5 | | % | 15.8 | | % | 17.5 | | % | (0.2) | | % | 7.7 | | % | 11.1 | | % | 8.3 | | % | | Core return on equity | 15.5 | | % | 9.3 | | % | 7.9 | | % | 12.3 | | % | 14.5 | | % | 0.2 | | % | 6.9 | | % | 10.9 | | % | 7.2 | | % | | Total assets, at period end | $ | 118,592 | | $ | 116,587 | | $ | 114,317 | | $ | 115,717 | | $ | 118,352 | | $ | 120,573 | | $ | 121,384 | | $ | 114,317 | | $ | 121,384 | | | Total equity, at period end | $ | 25,531 | | $ | 22,874 | | $ | 19,906 | | $ | 21,560 | | $ | 23,052 | | $ | 21,855 | | $ | 19,978 | | $ | 19,906 | | $ | 19,978 | | | Book value per share, at period end | $ | 106.40 | | $ | 96.39 | | $ | 84.94 | | $ | 92.90 | | $ | 99.80 | | $ | 95.46 | | $ | 87.47 | | $ | 84.94 | | $ | 87.47 | | | Less: Net unrealized investment gains (losses), net of tax | (5.79) | | | (15.98) | | | (26.96) | | | (21.10) | | | (16.75) | | | (19.99) | | | (28.31) | | | (26.96) | | | (28.31) | | | | Adjusted book value per share, at period end | $ | 112.19 | | $ | 112.37 | | $ | 111.90 | | $ | 114.00 | | $ | 116.55 | | $ | 115.45 | | $ | 115.78 | | $ | 111.90 | | $ | 115.78 | | | Weighted average number of common shares outstanding (basic) | 240.9 | | | 238.4 | | | 235.4 | | | 233.2 | | | 231.7 | | | 229.7 | | | 228.8 | | | 238.3 | | | 230.0 | | | | Weighted average number of common shares outstanding and common stock equivalents (diluted) | 243.7 | | | 241.1 | | | 237.9 | | | 236.3 | | | 234.4 | | | 229.7 | | | 231.1 | | | 240.9 | | | 232.5 | | | | Common shares outstanding at period end | 240.0 | | | 237.3 | | | 234.3 | | | 232.1 | | | 231.0 | | | 228.9 | | | 228.4 | | | 234.3 | | | 228.4 | | | | Common stock dividends declared | $ | 214 | | $ | 225 | | $ | 221 | | $ | 220 | | $ | 218 | | $ | 233 | | $ | 232 | | $ | 660 | | $ | 683 | | | Common stock repurchased: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Under Board of Directors authorization | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Shares | 2.9 | | | 2.9 | | | 3.1 | | | 2.7 | | | 2.2 | | | 2.2 | | | 0.6 | | | 8.9 | | | 5.0 | | | | Cost | $ | 500 | | $ | 500 | | $ | 500 | | $ | 500 | | $ | 400 | | $ | 400 | | $ | 100 | | $ | 1,500 | | $ | 900 | | | Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Shares | 0.4 | | | — | | | — | | | — | | | 0.3 | | | — | | | — | | | 0.4 | | | 0.3 | | | | Cost | $ | 59 | | $ | — | | $ | 1 | | $ | 1 | | $ | 62 | | $ | — | | $ | 1 | | $ | 60 | | $ | 63 | |

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

The Travelers Companies, Inc.<br><br>Reconciliation to Net Income (Loss) and Earnings per Share
($ and shares in millions, except earnings per share)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023		2Q2023		3Q2023		YTD 3Q2022		YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Net income (loss)
Net income (loss)	$	1,018	$	551	$	454	$	819	$	975	$	(14)	$	404	$	2,023	$	1,365
Adjustments:
Net realized investment (gains) losses, after-tax	19		74		72		(9)		(5)		29		50		165		74
Core income	$	1,037	$	625	$	526	$	810	$	970	$	15	$	454	$	2,188	$	1,439
Basic earnings per share
Net income (loss)	$	4.20	$	2.29	$	1.91	$	3.49	$	4.18	$	(0.07)	$	1.75	$	8.43	$	5.89
Adjustments:
Net realized investment (gains) losses, after-tax	0.07		0.31		0.31		(0.04)		(0.02)		0.13		0.22		0.69		0.32
Core income	$	4.27	$	2.60	$	2.22	$	3.45	$	4.16	$	0.06	$	1.97	$	9.12	$	6.21
Diluted earnings per share
Net income (loss)	$	4.15	$	2.27	$	1.89	$	3.44	$	4.13	$	(0.07)	$	1.74	$	8.34	$	5.83
Adjustments:
Net realized investment (gains) losses, after-tax	0.07		0.30		0.31		(0.04)		(0.02)		0.13		0.21		0.68		0.32
Core income	$	4.22	$	2.57	$	2.20	$	3.40	$	4.11	$	0.06	$	1.95	$	9.02	$	6.15

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

Basic and Diluted	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023		2Q2023		3Q2023		YTD 3Q2022		YTD 3Q2023
Net income (loss), as reported	$	1,018	$	551	$	454	$	819	$	975	$	(14)	$	404	$	2,023	$	1,365
Participating share-based awards - allocated income	(7)		(4)		(4)		(5)		(7)		(1)		(3)		(15)		(10)
Net income (loss) available to common shareholders - basic and diluted	$	1,011	$	547	$	450	$	814	$	968	$	(15)	$	401	$	2,008	$	1,355
Common Shares
Basic
Weighted average shares outstanding	240.9		238.4		235.4		233.2		231.7		229.7		228.8		238.3		230.0
Diluted
Weighted average shares outstanding	240.9		238.4		235.4		233.2		231.7		229.7		228.8		238.3		230.0
Weighted average effects of dilutive securities - stock options and performance shares	2.8		2.7		2.5		3.1		2.7		—		2.3		2.6		2.5
Diluted weighted average shares outstanding	243.7		241.1		237.9		236.3		234.4		229.7		231.1		240.9		232.5

(1) Adjustments to net income and weighted average shares for net income EPS calculations can generally be used for the core income EPS calculations. The net loss EPS calculation for 2Q 2023 excluded the allocation of $2 million of undistributed loss to participating share-based awards, since such allocation would result in anti-dilution of basic and diluted earnings per share. In addition, the net loss EPS calculation for 2Q 2023 excluded the incremental impact of 2.5 million stock options and performance shares, since the impact of these potential shares of common stock and their effects on income was anti-dilutive. The core income EPS calculation for 2Q 2023 included these items.

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

The Travelers Companies, Inc.<br><br>Statement of Income (Loss) - Consolidated
($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023			2Q2023			3Q2023			YTD 3Q2022			YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Revenues
Premiums	$	8,014		$	8,317		$	8,615		$	8,817		$	8,854		$	9,216		$	9,718		$	24,946		$	27,788
Net investment income	637			707			593			625			663			712			769			1,937			2,144
Fee income	103			100			104			105			106			106			112			307			324
Net realized investment gains (losses)	(23)			(95)			(93)			7			6			(35)			(65)			(211)			(94)
Other revenues	78			107			84			82			75			99			101			269			275
Total revenues	8,809			9,136			9,303			9,636			9,704			10,098			10,635			27,248			30,437
Claims and expenses
Claims and claim adjustment expenses	5,039			5,803			6,088			5,924			5,959			7,227			7,149			16,930			20,335
Amortization of deferred acquisition costs	1,310			1,365			1,406			1,434			1,462			1,519			1,604			4,081			4,585
General and administrative expenses	1,191			1,223			1,193			1,203			1,267			1,308			1,312			3,607			3,887
Interest expense	87			88			88			88			88			92			98			263			278
Total claims and expenses	7,627			8,479			8,775			8,649			8,776			10,146			10,163			24,881			29,085
Income (loss) before income taxes	1,182			657			528			987			928			(48)			472			2,367			1,352
Income tax expense (benefit)	164			106			74			168			(47)			(34)			68			344			(13)
Net income (loss)	$	1,018		$	551		$	454		$	819		$	975		$	(14)		$	404		$	2,023		$	1,365
Other statistics
Effective tax rate on net investment income	15.4		%	15.8		%	14.8		%	15.1		%	16.0		%	16.5		%	16.8		%	15.4		%	16.5		%
Net investment income (after-tax)	$	539		$	595		$	505		$	531		$	557		$	594		$	640		$	1,639		$	1,791
Catastrophes, net of reinsurance:
Pre-tax	$	160		$	746		$	512		$	459		$	535		$	1,481		$	850		$	1,418		$	2,866
After-tax	$	127		$	587		$	404		$	362		$	422		$	1,171		$	669		$	1,118		$	2,262
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	153		$	291		$	20		$	185		$	105		$	60		$	(154)		$	464		$	11
After-tax	$	122		$	229		$	16		$	145		$	83		$	47		$	(122)		$	367		$	8

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

| The Travelers Companies, Inc.<br><br>Net Income (Loss) by Major Component and Combined Ratio - Consolidated | | --- || ($ in millions, net of tax) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Underwriting gain (loss) | $ | 575 | | $ | 86 | | $ | 90 | | $ | 354 | | $ | 501 | | $ | (509) | | $ | (107) | | $ | 751 | | $ | (115) | | | Net investment income | 539 | | | 595 | | | 505 | | | 531 | | | 557 | | | 594 | | | 640 | | | 1,639 | | | 1,791 | | | | Other income (expense), including interest expense | (77) | | | (56) | | | (69) | | | (75) | | | (88) | | | (70) | | | (79) | | | (202) | | | (237) | | | | Core income | 1,037 | | | 625 | | | 526 | | | 810 | | | 970 | | | 15 | | | 454 | | | 2,188 | | | 1,439 | | | | Net realized investment gains (losses) | (19) | | | (74) | | | (72) | | | 9 | | | 5 | | | (29) | | | (50) | | | (165) | | | (74) | | | | Net income (loss) | $ | 1,018 | | $ | 551 | | $ | 454 | | $ | 819 | | $ | 975 | | $ | (14) | | $ | 404 | | $ | 2,023 | | $ | 1,365 | | | Combined ratio (1) (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loss and loss adjustment expense ratio | 62.3 | | % | 69.3 | | % | 70.1 | | % | 66.6 | | % | 66.7 | | % | 77.9 | | % | 73.0 | | % | 67.3 | | % | 72.6 | | % | | Underwriting expense ratio | 29.0 | | % | 29.0 | | % | 28.1 | | % | 27.9 | | % | 28.7 | | % | 28.6 | | % | 28.0 | | % | 28.7 | | % | 28.4 | | % | | Combined ratio | 91.3 | | % | 98.3 | | % | 98.2 | | % | 94.5 | | % | 95.4 | | % | 106.5 | | % | 101.0 | | % | 96.0 | | % | 101.0 | | % | | Impact on combined ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net (favorable) unfavorable prior year reserve development | (1.9) | | % | (3.5) | | % | (0.2) | | % | (2.1) | | % | (1.2) | | % | (0.7) | | % | 1.6 | | % | (1.9) | | % | (0.1) | | % | | Catastrophes, net of reinsurance | 2.0 | | % | 9.0 | | % | 5.9 | | % | 5.2 | | % | 6.0 | | % | 16.1 | | % | 8.8 | | % | 5.7 | | % | 10.3 | | % | | Underlying combined ratio | 91.2 | | % | 92.8 | | % | 92.5 | | % | 91.4 | | % | 90.6 | | % | 91.1 | | % | 90.6 | | % | 92.2 | | % | 90.8 | | % | | (1)  Before policyholder dividends.<br>(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 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | Billing and policy fees and other | $ | 27 | | $ | 27 | | $ | 27 | | $ | 28 | | $ | 28 | | $ | 28 | | $ | 28 | | $ | 81 | | $ | 84 | | | Fee income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loss and loss adjustment expenses | $ | 35 | | $ | 39 | | $ | 38 | | $ | 39 | | $ | 42 | | $ | 40 | | $ | 42 | | $ | 112 | | $ | 124 | | | Underwriting expenses | 68 | | | 61 | | | 66 | | | 66 | | | 64 | | | 66 | | | 70 | | | 195 | | | 200 | | | | Total fee income | $ | 103 | | $ | 100 | | $ | 104 | | $ | 105 | | $ | 106 | | $ | 106 | | $ | 112 | | $ | 307 | | $ | 324 | | | Non-insurance general and administrative expenses | $ | 82 | | $ | 87 | | $ | 83 | | $ | 88 | | $ | 95 | | $ | 92 | | $ | 99 | | $ | 252 | | $ | 286 | |

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

| The Travelers Companies, Inc.<br><br>Core Income - Consolidated | | --- || ($ in millions) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | $ | 8,014 | | $ | 8,317 | | $ | 8,615 | | $ | 8,817 | | $ | 8,854 | | $ | 9,216 | | $ | 9,718 | | $ | 24,946 | | $ | 27,788 | | | Net investment income | 637 | | | 707 | | | 593 | | | 625 | | | 663 | | | 712 | | | 769 | | | 1,937 | | | 2,144 | | | | Fee income | 103 | | | 100 | | | 104 | | | 105 | | | 106 | | | 106 | | | 112 | | | 307 | | | 324 | | | | Other revenues | 78 | | | 107 | | | 84 | | | 82 | | | 75 | | | 99 | | | 101 | | | 269 | | | 275 | | | | Total revenues | 8,832 | | | 9,231 | | | 9,396 | | | 9,629 | | | 9,698 | | | 10,133 | | | 10,700 | | | 27,459 | | | 30,531 | | | | Claims and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Claims and claim adjustment expenses | 5,039 | | | 5,803 | | | 6,088 | | | 5,924 | | | 5,959 | | | 7,227 | | | 7,149 | | | 16,930 | | | 20,335 | | | | Amortization of deferred acquisition costs | 1,310 | | | 1,365 | | | 1,406 | | | 1,434 | | | 1,462 | | | 1,519 | | | 1,604 | | | 4,081 | | | 4,585 | | | | General and administrative expenses | 1,191 | | | 1,223 | | | 1,193 | | | 1,203 | | | 1,267 | | | 1,308 | | | 1,312 | | | 3,607 | | | 3,887 | | | | Interest expense | 87 | | | 88 | | | 88 | | | 88 | | | 88 | | | 92 | | | 98 | | | 263 | | | 278 | | | | Total claims and expenses | 7,627 | | | 8,479 | | | 8,775 | | | 8,649 | | | 8,776 | | | 10,146 | | | 10,163 | | | 24,881 | | | 29,085 | | | | Core income (loss) before income taxes | 1,205 | | | 752 | | | 621 | | | 980 | | | 922 | | | (13) | | | 537 | | | 2,578 | | | 1,446 | | | | Income tax expense (benefit) | 168 | | | 127 | | | 95 | | | 170 | | | (48) | | | (28) | | | 83 | | | 390 | | | 7 | | | | Core income | $ | 1,037 | | $ | 625 | | $ | 526 | | $ | 810 | | $ | 970 | | $ | 15 | | $ | 454 | | $ | 2,188 | | $ | 1,439 | | | Other statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Effective tax rate on net investment income | 15.4 | | % | 15.8 | | % | 14.8 | | % | 15.1 | | % | 16.0 | | % | 16.5 | | % | 16.8 | | % | 15.4 | | % | 16.5 | | % | | Net investment income (after-tax) | $ | 539 | | $ | 595 | | $ | 505 | | $ | 531 | | $ | 557 | | $ | 594 | | $ | 640 | | $ | 1,639 | | $ | 1,791 | | | Catastrophes, net of reinsurance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 160 | | $ | 746 | | $ | 512 | | $ | 459 | | $ | 535 | | $ | 1,481 | | $ | 850 | | $ | 1,418 | | $ | 2,866 | | | After-tax | $ | 127 | | $ | 587 | | $ | 404 | | $ | 362 | | $ | 422 | | $ | 1,171 | | $ | 669 | | $ | 1,118 | | $ | 2,262 | | | Prior year reserve development - favorable (unfavorable): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 153 | | $ | 291 | | $ | 20 | | $ | 185 | | $ | 105 | | $ | 60 | | $ | (154) | | $ | 464 | | $ | 11 | | | After-tax | $ | 122 | | $ | 229 | | $ | 16 | | $ | 145 | | $ | 83 | | $ | 47 | | $ | (122) | | $ | 367 | | $ | 8 | |

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

| The Travelers Companies, Inc.<br><br>Selected Statistics - Property and Casualty Operations | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Statutory underwriting | | | | | | | | | | | | | | | | | | | | Gross written premiums | $ | 9,283 | $ | 9,536 | $ | 9,812 | $ | 9,245 | $ | 10,347 | $ | 10,907 | $ | 11,263 | $ | 28,631 | $ | 32,517 | | Net written premiums | $ | 8,367 | $ | 9,020 | $ | 9,198 | $ | 8,829 | $ | 9,396 | $ | 10,318 | $ | 10,493 | $ | 26,585 | $ | 30,207 | | Net earned premiums | $ | 8,016 | $ | 8,316 | $ | 8,615 | $ | 8,817 | $ | 8,854 | $ | 9,216 | $ | 9,718 | $ | 24,947 | $ | 27,788 | | Losses and loss adjustment expenses | 4,994 | | 5,758 | | 6,034 | | 5,870 | | 5,906 | | 7,179 | | 7,091 | | 16,786 | | 20,176 | | | Underwriting expenses | 2,441 | | 2,568 | | 2,533 | | 2,450 | | 2,727 | | 2,863 | | 2,860 | | 7,542 | | 8,450 | | | Statutory underwriting gain (loss) | 581 | | (10) | | 48 | | 497 | | 221 | | (826) | | (233) | | 619 | | (838) | | | Policyholder dividends | 11 | | 6 | | 14 | | 9 | | 12 | | 10 | | 14 | | 31 | | 36 | | | Statutory underwriting gain (loss) after policyholder dividends | $ | 570 | $ | (16) | $ | 34 | $ | 488 | $ | 209 | $ | (836) | $ | (247) | $ | 588 | $ | (874) | | Other statutory statistics | | | | | | | | | | | | | | | | | | | | Reserves for losses and loss adjustment expenses | $ | 49,027 | $ | 49,676 | $ | 50,139 | $ | 50,762 | $ | 51,164 | $ | 52,643 | $ | 53,692 | $ | 50,139 | $ | 53,692 | | Increase (decrease) in reserves | $ | 438 | $ | 649 | $ | 463 | $ | 623 | $ | 402 | $ | 1,479 | $ | 1,049 | $ | 1,550 | $ | 2,930 | | Statutory capital and surplus | $ | 24,168 | $ | 23,776 | $ | 23,375 | $ | 23,677 | $ | 23,689 | $ | 22,934 | $ | 23,267 | $ | 23,375 | $ | 23,267 | | Net written premiums/surplus (1) | 1.36:1 | | 1.42:1 | | 1.48:1 | | 1.50:1 | | 1.54:1 | | 1.65:1 | | 1.68:1 | | 1.48:1 | | 1.68:1 | |

(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.<br><br>Written and Earned Premiums - Property and Casualty Operations | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Written premiums | | | | | | | | | | | | | | | | | | | | Gross | $ | 9,283 | $ | 9,536 | $ | 9,812 | $ | 9,245 | $ | 10,347 | $ | 10,907 | $ | 11,263 | $ | 28,631 | $ | 32,517 | | Ceded | (916) | | (516) | | (614) | | (416) | | (951) | | (589) | | (770) | | (2,046) | | (2,310) | | | Net | $ | 8,367 | $ | 9,020 | $ | 9,198 | $ | 8,829 | $ | 9,396 | $ | 10,318 | $ | 10,493 | $ | 26,585 | $ | 30,207 | | Earned premiums | | | | | | | | | | | | | | | | | | | | Gross | $ | 8,565 | $ | 8,897 | $ | 9,216 | $ | 9,415 | $ | 9,469 | $ | 9,866 | $ | 10,397 | $ | 26,678 | $ | 29,732 | | Ceded | (551) | | (580) | | (601) | | (598) | | (615) | | (650) | | (679) | | (1,732) | | (1,944) | | | Net | $ | 8,014 | $ | 8,317 | $ | 8,615 | $ | 8,817 | $ | 8,854 | $ | 9,216 | $ | 9,718 | $ | 24,946 | $ | 27,788 |

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

| The Travelers Companies, Inc.<br><br>Segment Income - Business Insurance | | --- || ($ in millions) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | $ | 4,071 | | $ | 4,218 | | $ | 4,353 | | $ | 4,453 | | $ | 4,477 | | $ | 4,644 | | $ | 4,956 | | $ | 12,642 | | $ | 14,077 | | | Net investment income | 468 | | | 521 | | | 426 | | | 449 | | | 473 | | | 509 | | | 551 | | | 1,415 | | | 1,533 | | | | Fee income | 96 | | | 93 | | | 96 | | | 97 | | | 99 | | | 98 | | | 102 | | | 285 | | | 299 | | | | Other revenues | 53 | | | 85 | | | 56 | | | 54 | | | 47 | | | 67 | | | 71 | | | 194 | | | 185 | | | | Total revenues | 4,688 | | | 4,917 | | | 4,931 | | | 5,053 | | | 5,096 | | | 5,318 | | | 5,680 | | | 14,536 | | | 16,094 | | | | Claims and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Claims and claim adjustment expenses | 2,514 | | | 2,698 | | | 2,959 | | | 2,736 | | | 2,907 | | | 3,296 | | | 3,519 | | | 8,171 | | | 9,722 | | | | Amortization of deferred acquisition costs | 668 | | | 691 | | | 708 | | | 721 | | | 742 | | | 773 | | | 820 | | | 2,067 | | | 2,335 | | | | General and administrative expenses | 697 | | | 714 | | | 704 | | | 712 | | | 734 | | | 764 | | | 772 | | | 2,115 | | | 2,270 | | | | Total claims and expenses | 3,879 | | | 4,103 | | | 4,371 | | | 4,169 | | | 4,383 | | | 4,833 | | | 5,111 | | | 12,353 | | | 14,327 | | | | Segment income before income taxes | 809 | | | 814 | | | 560 | | | 884 | | | 713 | | | 485 | | | 569 | | | 2,183 | | | 1,767 | | | | Income tax expense (benefit) | 140 | | | 148 | | | 89 | | | 159 | | | (43) | | | 83 | | | 101 | | | 377 | | | 141 | | | | Segment income | $ | 669 | | $ | 666 | | $ | 471 | | $ | 725 | | $ | 756 | | $ | 402 | | $ | 468 | | $ | 1,806 | | $ | 1,626 | | | Other statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Effective tax rate on net investment income | 15.3 | | % | 15.8 | | % | 14.6 | | % | 14.9 | | % | 15.8 | | % | 16.4 | | % | 16.8 | | % | 15.3 | | % | 16.3 | | % | | Net investment income (after-tax) | $ | 396 | | $ | 439 | | $ | 364 | | $ | 382 | | $ | 398 | | $ | 426 | | $ | 458 | | $ | 1,199 | | $ | 1,282 | | | Catastrophes, net of reinsurance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 79 | | $ | 234 | | $ | 216 | | $ | 125 | | $ | 199 | | $ | 396 | | $ | 203 | | $ | 529 | | $ | 798 | | | After-tax | $ | 63 | | $ | 184 | | $ | 170 | | $ | 98 | | $ | 157 | | $ | 313 | | $ | 160 | | $ | 417 | | $ | 630 | | | Prior year reserve development - favorable (unfavorable): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 113 | | $ | 202 | | $ | (61) | | $ | 127 | | $ | 19 | | $ | (101) | | $ | (263) | | $ | 254 | | $ | (345) | | | After-tax | $ | 90 | | $ | 159 | | $ | (48) | | $ | 100 | | $ | 15 | | $ | (80) | | $ | (207) | | $ | 201 | | $ | (272) | |

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

The Travelers Companies, Inc.<br><br>Segment Income by Major Component and Combined Ratio - Business Insurance
($ in millions, net of tax)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023			2Q2023			3Q2023			YTD 3Q2022			YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Underwriting gain (loss)	$	291		$	220		$	117		$	361		$	388		$	(12)		$	22		$	628		$	398
Net investment income	396			439			364			382			398			426			458			1,199			1,282
Other income (expense)	(18)			7			(10)			(18)			(30)			(12)			(12)			(21)			(54)
Segment income	$	669		$	666		$	471		$	725		$	756		$	402		$	468		$	1,806		$	1,626
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	60.7		%	63.0		%	66.9		%	60.4		%	63.8		%	70.0		%	70.0		%	63.6		%	68.0		%
Underwriting expense ratio	30.2		%	30.2		%	29.4		%	29.1		%	29.8		%	30.1		%	29.1		%	29.9		%	29.7		%
Combined ratio	90.9		%	93.2		%	96.3		%	89.5		%	93.6		%	100.1		%	99.1		%	93.5		%	97.7		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	(2.8)		%	(4.8)		%	1.4		%	(2.8)		%	(0.4)		%	2.2		%	5.3		%	(2.0)		%	2.4		%
Catastrophes, net of reinsurance	1.9		%	5.6		%	4.9		%	2.8		%	4.4		%	8.5		%	4.1		%	4.1		%	5.7		%
Underlying combined ratio	91.8		%	92.4		%	90.0		%	89.5		%	89.6		%	89.4		%	89.7		%	91.4		%	89.6		%
(1)  Before policyholder dividends.<br>(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			2Q2023			3Q2023			YTD 3Q2022			YTD 3Q2023
Billing and policy fees and other	$	3		$	4		$	4		$	4		$	4		$	4		$	4		$	11		$	12
Fee income:
Loss and loss adjustment expenses	$	35		$	39		$	38		$	39		$	42		$	40		$	42		$	112		$	124
Underwriting expenses	61			54			58			58			57			58			60			173			175
Total fee income	$	96		$	93		$	96		$	97		$	99		$	98		$	102		$	285		$	299
Non-insurance general and administrative expenses	$	70		$	73		$	70		$	76		$	80		$	77		$	84		$	213		$	241

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

| The Travelers Companies, Inc.<br><br>Selected Statistics - Business Insurance | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Statutory underwriting | | | | | | | | | | | | | | | | | | | | Gross written premiums | $ | 5,148 | $ | 4,786 | $ | 4,864 | $ | 4,723 | $ | 5,828 | $ | 5,662 | $ | 5,685 | $ | 14,798 | $ | 17,175 | | Net written premiums | $ | 4,502 | $ | 4,373 | $ | 4,370 | $ | 4,390 | $ | 5,157 | $ | 5,175 | $ | 5,080 | $ | 13,245 | $ | 15,412 | | Net earned premiums | $ | 4,073 | $ | 4,217 | $ | 4,353 | $ | 4,453 | $ | 4,477 | $ | 4,644 | $ | 4,956 | $ | 12,643 | $ | 14,077 | | Losses and loss adjustment expenses | 2,472 | | 2,656 | | 2,911 | | 2,682 | | 2,858 | | 3,251 | | 3,467 | | 8,039 | | 9,576 | | | Underwriting expenses | 1,313 | | 1,325 | | 1,281 | | 1,282 | | 1,492 | | 1,507 | | 1,459 | | 3,919 | | 4,458 | | | Statutory underwriting gain (loss) | 288 | | 236 | | 161 | | 489 | | 127 | | (114) | | 30 | | 685 | | 43 | | | Policyholder dividends | 8 | | 4 | | 7 | | 9 | | 8 | | 7 | | 8 | | 19 | | 23 | | | Statutory underwriting gain (loss) after policyholder dividends | $ | 280 | $ | 232 | $ | 154 | $ | 480 | $ | 119 | $ | (121) | $ | 22 | $ | 666 | $ | 20 |

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

| The Travelers Companies, Inc.<br><br>Net Written Premiums - Business Insurance | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net written premiums by market | | | | | | | | | | | | | | | | | | | | Domestic | | | | | | | | | | | | | | | | | | | | Select Accounts | $ | 819 | $ | 807 | $ | 739 | $ | 734 | $ | 908 | $ | 883 | $ | 824 | $ | 2,365 | $ | 2,615 | | Middle Market | 2,616 | | 2,329 | | 2,465 | | 2,513 | | 2,926 | | 2,618 | | 2,750 | | 7,410 | | 8,294 | | | National Accounts | 303 | | 240 | | 247 | | 295 | | 294 | | 277 | | 247 | | 790 | | 818 | | | National Property and Other | 497 | | 690 | | 702 | | 578 | | 590 | | 862 | | 874 | | 1,889 | | 2,326 | | | Total Domestic | 4,235 | | 4,066 | | 4,153 | | 4,120 | | 4,718 | | 4,640 | | 4,695 | | 12,454 | | 14,053 | | | International | 267 | | 307 | | 217 | | 270 | | 439 | | 535 | | 385 | | 791 | | 1,359 | | | Total | $ | 4,502 | $ | 4,373 | $ | 4,370 | $ | 4,390 | $ | 5,157 | $ | 5,175 | $ | 5,080 | $ | 13,245 | $ | 15,412 | | Net written premiums by product line | | | | | | | | | | | | | | | | | | | | Domestic | | | | | | | | | | | | | | | | | | | | Workers’ compensation | $ | 1,008 | $ | 823 | $ | 787 | $ | 779 | $ | 1,051 | $ | 852 | $ | 777 | $ | 2,618 | $ | 2,680 | | Commercial automobile | 781 | | 759 | | 762 | | 759 | | 851 | | 830 | | 835 | | 2,302 | | 2,516 | | | Commercial property | 551 | | 763 | | 756 | | 701 | | 693 | | 988 | | 968 | | 2,070 | | 2,649 | | | General liability | 789 | | 678 | | 738 | | 757 | | 866 | | 744 | | 829 | | 2,205 | | 2,439 | | | Commercial multi-peril | 1,085 | | 1,041 | | 1,067 | | 1,111 | | 1,241 | | 1,227 | | 1,240 | | 3,193 | | 3,708 | | | Other | 21 | | 2 | | 43 | | 13 | | 16 | | (1) | | 46 | | 66 | | 61 | | | Total Domestic | 4,235 | | 4,066 | | 4,153 | | 4,120 | | 4,718 | | 4,640 | | 4,695 | | 12,454 | | 14,053 | | | International | 267 | | 307 | | 217 | | 270 | | 439 | | 535 | | 385 | | 791 | | 1,359 | | | Total | $ | 4,502 | $ | 4,373 | $ | 4,370 | $ | 4,390 | $ | 5,157 | $ | 5,175 | $ | 5,080 | $ | 13,245 | $ | 15,412 |

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

| The Travelers Companies, Inc.<br><br>Segment Income - Bond & Specialty Insurance | | --- || ($ in millions) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | $ | 820 | | $ | 851 | | $ | 877 | | $ | 870 | | $ | 875 | | $ | 911 | | $ | 935 | | $ | 2,548 | | $ | 2,721 | | | Net investment income | 59 | | | 64 | | | 65 | | | 70 | | | 73 | | | 78 | | | 86 | | | 188 | | | 237 | | | | Other revenues | 4 | | | 4 | | | 6 | | | 6 | | | 5 | | | 7 | | | 6 | | | 14 | | | 18 | | | | Total revenues | 883 | | | 919 | | | 948 | | | 946 | | | 953 | | | 996 | | | 1,027 | | | 2,750 | | | 2,976 | | | | Claims and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Claims and claim adjustment expenses | 354 | | | 331 | | | 334 | | | 359 | | | 380 | | | 366 | | | 351 | | | 1,019 | | | 1,097 | | | | Amortization of deferred acquisition costs | 149 | | | 155 | | | 162 | | | 159 | | | 160 | | | 168 | | | 173 | | | 466 | | | 501 | | | | General and administrative expenses | 141 | | | 148 | | | 148 | | | 153 | | | 165 | | | 173 | | | 172 | | | 437 | | | 510 | | | | Total claims and expenses | 644 | | | 634 | | | 644 | | | 671 | | | 705 | | | 707 | | | 696 | | | 1,922 | | | 2,108 | | | | Segment income before income taxes | 239 | | | 285 | | | 304 | | | 275 | | | 248 | | | 289 | | | 331 | | | 828 | | | 868 | | | | Income tax expense | 22 | | | 57 | | | 62 | | | 54 | | | 41 | | | 59 | | | 66 | | | 141 | | | 166 | | | | Segment income | $ | 217 | | $ | 228 | | $ | 242 | | $ | 221 | | $ | 207 | | $ | 230 | | $ | 265 | | $ | 687 | | $ | 702 | | | Other statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Effective tax rate on net investment income | 15.1 | | % | 15.4 | | % | 15.6 | | % | 15.7 | | % | 16.5 | | % | 17.0 | | % | 16.6 | | % | 15.4 | | % | 16.7 | | % | | Net investment income (after-tax) | $ | 50 | | $ | 55 | | $ | 54 | | $ | 59 | | $ | 61 | | $ | 65 | | $ | 71 | | $ | 159 | | $ | 197 | | | Catastrophes, net of reinsurance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 1 | | $ | 4 | | $ | 11 | | $ | 9 | | $ | 5 | | $ | 21 | | $ | 5 | | $ | 16 | | $ | 31 | | | After-tax | $ | 1 | | $ | 3 | | $ | 9 | | $ | 7 | | $ | 4 | | $ | 17 | | $ | 4 | | $ | 13 | | $ | 25 | | | Prior year reserve development - favorable: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 35 | | $ | 73 | | $ | 63 | | $ | 51 | | $ | 58 | | $ | 119 | | $ | 72 | | $ | 171 | | $ | 249 | | | After-tax | $ | 28 | | $ | 57 | | $ | 50 | | $ | 40 | | $ | 46 | | $ | 93 | | $ | 57 | | $ | 135 | | $ | 196 | |

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

| The Travelers Companies, Inc.<br><br>Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance | | --- || ($ in millions, net of tax) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Underwriting gain | $ | 165 | | $ | 171 | | $ | 185 | | $ | 158 | | $ | 143 | | $ | 160 | | $ | 190 | | $ | 521 | | $ | 493 | | | Net investment income | 50 | | | 55 | | | 54 | | | 59 | | | 61 | | | 65 | | | 71 | | | 159 | | | 197 | | | | Other income | 2 | | | 2 | | | 3 | | | 4 | | | 3 | | | 5 | | | 4 | | | 7 | | | 12 | | | | Segment income | $ | 217 | | $ | 228 | | $ | 242 | | $ | 221 | | $ | 207 | | $ | 230 | | $ | 265 | | $ | 687 | | $ | 702 | | | Combined ratio (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loss and loss adjustment expense ratio | 42.8 | | % | 38.5 | | % | 37.3 | | % | 41.3 | | % | 43.0 | | % | 39.8 | | % | 36.9 | | % | 39.5 | | % | 39.8 | | % | | Underwriting expense ratio | 35.2 | | % | 35.5 | | % | 35.2 | | % | 35.6 | | % | 37.0 | | % | 37.3 | | % | 36.7 | | % | 35.3 | | % | 37.0 | | % | | Combined ratio | 78.0 | | % | 74.0 | | % | 72.5 | | % | 76.9 | | % | 80.0 | | % | 77.1 | | % | 73.6 | | % | 74.8 | | % | 76.8 | | % | | Impact on combined ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net favorable prior year reserve development | (4.3) | | % | (8.6) | | % | (7.2) | | % | (5.8) | | % | (6.7) | | % | (13.0) | | % | (7.7) | | % | (6.7) | | % | (9.1) | | % | | Catastrophes, net of reinsurance | 0.1 | | % | 0.4 | | % | 1.3 | | % | 1.0 | | % | 0.6 | | % | 2.3 | | % | 0.6 | | % | 0.6 | | % | 1.1 | | % | | Underlying combined ratio | 82.2 | | % | 82.2 | | % | 78.4 | | % | 81.7 | | % | 86.1 | | % | 87.8 | | % | 80.7 | | % | 80.9 | | % | 84.8 | | % | | (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 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | Non-insurance general and administrative expenses | $ | 1 | | $ | 1 | | $ | 1 | | $ | 2 | | $ | 1 | | $ | 1 | | $ | 2 | | $ | 3 | | $ | 4 | |

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

| The Travelers Companies, Inc.<br><br>Selected Statistics - Bond & Specialty Insurance | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Statutory underwriting | | | | | | | | | | | | | | | | | | | | Gross written premiums | $ | 1,009 | $ | 1,036 | $ | 1,043 | $ | 994 | $ | 1,010 | $ | 1,035 | $ | 1,082 | $ | 3,088 | $ | 3,127 | | Net written premiums | $ | 882 | $ | 962 | $ | 964 | $ | 924 | $ | 886 | $ | 964 | $ | 1,003 | $ | 2,808 | $ | 2,853 | | Net earned premiums | $ | 820 | $ | 851 | $ | 877 | $ | 870 | $ | 875 | $ | 911 | $ | 935 | $ | 2,548 | $ | 2,721 | | Losses and loss adjustment expenses | 351 | | 328 | | 328 | | 359 | | 376 | | 363 | | 345 | | 1,007 | | 1,084 | | | Underwriting expenses | 319 | | 319 | | 326 | | 306 | | 346 | | 352 | | 359 | | 964 | | 1,057 | | | Statutory underwriting gain | 150 | | 204 | | 223 | | 205 | | 153 | | 196 | | 231 | | 577 | | 580 | | | Policyholder dividends | 3 | | 2 | | 7 | | — | | 4 | | 3 | | 6 | | 12 | | 13 | | | Statutory underwriting gain after policyholder dividends | $ | 147 | $ | 202 | $ | 216 | $ | 205 | $ | 149 | $ | 193 | $ | 225 | $ | 565 | $ | 567 |

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

| The Travelers Companies, Inc.<br><br>Net Written Premiums - Bond & Specialty Insurance | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net written premiums by market | | | | | | | | | | | | | | | | | | | | Domestic | | | | | | | | | | | | | | | | | | | | Management Liability | $ | 505 | $ | 533 | $ | 554 | $ | 520 | $ | 511 | $ | 541 | $ | 551 | $ | 1,592 | $ | 1,603 | | Surety | 257 | | 287 | | 284 | | 253 | | 257 | | 293 | | 321 | | 828 | | 871 | | | Total Domestic | 762 | | 820 | | 838 | | 773 | | 768 | | 834 | | 872 | | 2,420 | | 2,474 | | | International | 120 | | 142 | | 126 | | 151 | | 118 | | 130 | | 131 | | 388 | | 379 | | | Total | $ | 882 | $ | 962 | $ | 964 | $ | 924 | $ | 886 | $ | 964 | $ | 1,003 | $ | 2,808 | $ | 2,853 | | Net written premiums by product line | | | | | | | | | | | | | | | | | | | | Domestic | | | | | | | | | | | | | | | | | | | | Fidelity & surety | $ | 320 | $ | 346 | $ | 350 | $ | 313 | $ | 318 | $ | 350 | $ | 385 | $ | 1,016 | $ | 1,053 | | General liability | 389 | | 419 | | 424 | | 407 | | 399 | | 425 | | 419 | | 1,232 | | 1,243 | | | Other | 53 | | 55 | | 64 | | 53 | | 51 | | 59 | | 68 | | 172 | | 178 | | | Total Domestic | 762 | | 820 | | 838 | | 773 | | 768 | | 834 | | 872 | | 2,420 | | 2,474 | | | International | 120 | | 142 | | 126 | | 151 | | 118 | | 130 | | 131 | | 388 | | 379 | | | Total | $ | 882 | $ | 962 | $ | 964 | $ | 924 | $ | 886 | $ | 964 | $ | 1,003 | $ | 2,808 | $ | 2,853 |

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

The Travelers Companies, Inc.<br><br>Segment Income (Loss) - Personal Insurance
($ in millions)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023			2Q2023			3Q2023			YTD 3Q2022			YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Revenues
Premiums	$	3,123		$	3,248		$	3,385		$	3,494		$	3,502		$	3,661		$	3,827		$	9,756		$	10,990
Net investment income	110			122			102			106			117			125			132			334			374
Fee income	7			7			8			8			7			8			10			22			25
Other revenues	21			18			22			22			23			25			24			61			72
Total revenues	3,261			3,395			3,517			3,630			3,649			3,819			3,993			10,173			11,461
Claims and expenses
Claims and claim adjustment expenses	2,171			2,774			2,795			2,829			2,672			3,565			3,279			7,740			9,516
Amortization of deferred acquisition costs	493			519			536			554			560			578			611			1,548			1,749
General and administrative expenses	345			352			333			332			359			361			359			1,030			1,079
Total claims and expenses	3,009			3,645			3,664			3,715			3,591			4,504			4,249			10,318			12,344
Segment income (loss) before income taxes	252			(250)			(147)			(85)			58			(685)			(256)			(145)			(883)
Income tax expense (benefit)	27			(57)			(36)			(24)			(25)			(147)			(63)			(66)			(235)
Segment income (loss)	$	225		$	(193)		$	(111)		$	(61)		$	83		$	(538)		$	(193)		$	(79)		$	(648)
Other statistics
Effective tax rate on net investment income	15.9		%	16.3		%	15.4		%	15.6		%	16.3		%	16.9		%	17.2		%	15.9		%	16.8		%
Net investment income (after-tax)	$	93		$	101		$	87		$	90		$	98		$	103		$	111		$	281		$	312
Catastrophes, net of reinsurance:
Pre-tax	$	80		$	508		$	285		$	325		$	331		$	1,064		$	642		$	873		$	2,037
After-tax	$	63		$	400		$	225		$	257		$	261		$	841		$	505		$	688		$	1,607
Prior year reserve development - favorable:
Pre-tax	$	5		$	16		$	18		$	7		$	28		$	42		$	37		$	39		$	107
After-tax	$	4		$	13		$	14		$	5		$	22		$	34		$	28		$	31		$	84

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

The Travelers Companies, Inc.<br><br>Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance
($ in millions, net of tax)	1Q2022			2Q2022			3Q2022			4Q2022			1Q2023			2Q2023			3Q2023			YTD 3Q2022			YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Underwriting gain (loss)	$	119		$	(305)		$	(212)		$	(165)		$	(30)		$	(657)		$	(319)		$	(398)		$	(1,006)
Net investment income	93			101			87			90			98			103			111			281			312
Other income	13			11			14			14			15			16			15			38			46
Segment income (loss)	$	225		$	(193)		$	(111)		$	(61)		$	83		$	(538)		$	(193)		$	(79)		$	(648)
Combined ratio (1)
Loss and loss adjustment expense ratio	69.5		%	85.4		%	82.6		%	81.0		%	76.3		%	97.4		%	85.7		%	79.3		%	86.6		%
Underwriting expense ratio	25.8		%	25.8		%	24.6		%	24.3		%	25.2		%	24.6		%	24.3		%	25.4		%	24.7		%
Combined ratio	95.3		%	111.2		%	107.2		%	105.3		%	101.5		%	122.0		%	110.0		%	104.7		%	111.3		%
Impact on combined ratio:
Net favorable prior year reserve development	(0.1)		%	(0.5)		%	(0.5)		%	(0.2)		%	(0.8)		%	(1.2)		%	(1.0)		%	(0.4)		%	(1.0)		%
Catastrophes, net of reinsurance	2.6		%	15.6		%	8.4		%	9.3		%	9.4		%	29.1		%	16.8		%	8.9		%	18.5		%
Underlying combined ratio	92.8		%	96.1		%	99.3		%	96.2		%	92.9		%	94.1		%	94.2		%	96.2		%	93.8		%
(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			2Q2023			3Q2023			YTD 3Q2022			YTD 3Q2023
Billing and policy fees and other	$	24		$	23		$	23		$	24		$	24		$	24		$	24		$	70		$	72
Fee income	$	7		$	7		$	8		$	8		$	7		$	8		$	10		$	22		$	25
Non-insurance general and administrative expenses	$	3		$	4		$	4		$	4		$	5		$	4		$	4		$	11		$	13

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

The Travelers Companies, Inc.<br><br>Selected Statistics - Personal Insurance
($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023		2Q2023		3Q2023		YTD 3Q2022		YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Statutory underwriting
Gross written premiums	$	3,126	$	3,714	$	3,905	$	3,528	$	3,509	$	4,210	$	4,496	$	10,745	$	12,215
Net written premiums	$	2,983	$	3,685	$	3,864	$	3,515	$	3,353	$	4,179	$	4,410	$	10,532	$	11,942
Net earned premiums	$	3,123	$	3,248	$	3,385	$	3,494	$	3,502	$	3,661	$	3,827	$	9,756	$	10,990
Losses and loss adjustment expenses	2,171		2,774		2,795		2,829		2,672		3,565		3,279		7,740		9,516
Underwriting expenses	809		924		926		862		889		1,004		1,042		2,659		2,935
Statutory underwriting gain (loss)	$	143	$	(450)	$	(336)	$	(197)	$	(59)	$	(908)	$	(494)	$	(643)	$	(1,461)
Policies in force (in thousands)
Automobile	3,212		3,243		3,283		3,278		3,248		3,225		3,223		3,283		3,223
Homeowners and Other	6,284		6,338		6,367		6,375		6,355		6,361		6,348		6,367		6,348

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

| The Travelers Companies, Inc.<br><br>Net Written Premiums - Personal Insurance | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net written premiums by product line | | | | | | | | | | | | | | | | | | | | Domestic | | | | | | | | | | | | | | | | | | | | Automobile | $ | 1,496 | $ | 1,629 | $ | 1,743 | $ | 1,614 | $ | 1,654 | $ | 1,823 | $ | 2,022 | $ | 4,868 | $ | 5,499 | | Homeowners and Other | 1,344 | | 1,868 | | 1,952 | | 1,752 | | 1,565 | | 2,173 | | 2,216 | | 5,164 | | 5,954 | | | Total Domestic | 2,840 | | 3,497 | | 3,695 | | 3,366 | | 3,219 | | 3,996 | | 4,238 | | 10,032 | | 11,453 | | | International | 143 | | 188 | | 169 | | 149 | | 134 | | 183 | | 172 | | 500 | | 489 | | | Total | $ | 2,983 | $ | 3,685 | $ | 3,864 | $ | 3,515 | $ | 3,353 | $ | 4,179 | $ | 4,410 | $ | 10,532 | $ | 11,942 |

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

| The Travelers Companies, Inc.<br><br>Selected Statistics - Personal Insurance - Automobile | | --- || ($ in millions) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Statutory underwriting | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross written premiums | $ | 1,605 | | $ | 1,755 | | $ | 1,857 | | $ | 1,717 | | $ | 1,751 | | $ | 1,946 | | $ | 2,142 | | $ | 5,217 | | $ | 5,839 | | | Net written premiums | $ | 1,591 | | $ | 1,749 | | $ | 1,849 | | $ | 1,709 | | $ | 1,741 | | $ | 1,939 | | $ | 2,132 | | $ | 5,189 | | $ | 5,812 | | | Net earned premiums | $ | 1,568 | | $ | 1,620 | | $ | 1,679 | | $ | 1,727 | | $ | 1,723 | | $ | 1,789 | | $ | 1,874 | | $ | 4,867 | | $ | 5,386 | | | Losses and loss adjustment expenses | 1,188 | | | 1,311 | | | 1,510 | | | 1,542 | | | 1,406 | | | 1,540 | | | 1,525 | | | 4,009 | | | 4,471 | | | | Underwriting expenses | 382 | | | 408 | | | 408 | | | 387 | | | 409 | | | 432 | | | 458 | | | 1,198 | | | 1,299 | | | | Statutory underwriting gain (loss) | $ | (2) | | $ | (99) | | $ | (239) | | $ | (202) | | $ | (92) | | $ | (183) | | $ | (109) | | $ | (340) | | $ | (384) | | | Other statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Combined ratio (1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loss and loss adjustment expense ratio | 75.8 | | % | 80.9 | | % | 90.0 | | % | 89.3 | | % | 81.7 | | % | 86.0 | | % | 81.4 | | % | 82.4 | | % | 83.0 | | % | | Underwriting expense ratio | 23.5 | | % | 23.4 | | % | 22.2 | | % | 22.1 | | % | 23.0 | | % | 22.4 | | % | 22.1 | | % | 23.0 | | % | 22.5 | | % | | Combined ratio | 99.3 | | % | 104.3 | | % | 112.2 | | % | 111.4 | | % | 104.7 | | % | 108.4 | | % | 103.5 | | % | 105.4 | | % | 105.5 | | % | | Impact on combined ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net (favorable) unfavorable prior year reserve development | 0.3 | | % | 0.3 | | % | 0.4 | | % | 0.5 | | % | 0.4 | | % | 0.2 | | % | 0.3 | | % | 0.4 | | % | 0.3 | | % | | Catastrophes, net of reinsurance | 0.2 | | % | 2.2 | | % | 7.9 | | % | 0.4 | | % | 0.9 | | % | 4.7 | | % | 2.6 | | % | 3.5 | | % | 2.7 | | % | | Underlying combined ratio | 98.8 | | % | 101.8 | | % | 103.9 | | % | 110.5 | | % | 103.4 | | % | 103.5 | | % | 100.6 | | % | 101.5 | | % | 102.5 | | % | | Catastrophes, net of reinsurance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 4 | | $ | 35 | | $ | 133 | | $ | 7 | | $ | 15 | | $ | 85 | | $ | 49 | | $ | 172 | | $ | 149 | | | After-tax | $ | 3 | | $ | 28 | | $ | 105 | | $ | 5 | | $ | 11 | | $ | 68 | | $ | 38 | | $ | 136 | | $ | 117 | | | Prior year reserve development - favorable (unfavorable): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | (4) | | $ | (6) | | $ | (8) | | $ | (8) | | $ | (7) | | $ | (4) | | $ | (5) | | $ | (18) | | $ | (16) | | | After-tax | $ | (3) | | $ | (4) | | $ | (6) | | $ | (7) | | $ | (6) | | $ | (2) | | $ | (4) | | $ | (13) | | $ | (12) | | | Policies in force (in thousands) | 3,212 | | | 3,243 | | | 3,283 | | | 3,278 | | | 3,248 | | | 3,225 | | | 3,223 | | | | | | | | | | Change from prior year quarter | 5.1 | | % | 4.7 | | % | 4.5 | | % | 3.1 | | % | 1.1 | | % | (0.6) | | % | (1.8) | | % | | | | | | | | Change from prior quarter | 1.0 | | % | 1.0 | | % | 1.2 | | % | (0.2) | | % | (0.9) | | % | (0.7) | | % | (0.1) | | % | | | | | | | | (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 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | Billing and policy fees and other | $ | 14 | | $ | 14 | | $ | 14 | | $ | 14 | | $ | 14 | | $ | 14 | | $ | 14 | | $ | 42 | | $ | 42 | | | Fee income | $ | 4 | | $ | 3 | | $ | 4 | | $ | 5 | | $ | 4 | | $ | 4 | | $ | 5 | | $ | 11 | | $ | 13 | |

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

| The Travelers Companies, Inc.<br><br>Selected Statistics - Personal Insurance - Homeowners and Other | | --- || ($ in millions) | 1Q2022 | | | 2Q2022 | | | 3Q2022 | | | 4Q2022 | | | 1Q2023 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Statutory underwriting | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross written premiums | $ | 1,521 | | $ | 1,959 | | $ | 2,048 | | $ | 1,811 | | $ | 1,758 | | $ | 2,264 | | $ | 2,354 | | $ | 5,528 | | $ | 6,376 | | | Net written premiums | $ | 1,392 | | $ | 1,936 | | $ | 2,015 | | $ | 1,806 | | $ | 1,612 | | $ | 2,240 | | $ | 2,278 | | $ | 5,343 | | $ | 6,130 | | | Net earned premiums | $ | 1,555 | | $ | 1,628 | | $ | 1,706 | | $ | 1,767 | | $ | 1,779 | | $ | 1,872 | | $ | 1,953 | | $ | 4,889 | | $ | 5,604 | | | Losses and loss adjustment expenses | 983 | | | 1,463 | | | 1,285 | | | 1,287 | | | 1,266 | | | 2,025 | | | 1,754 | | | 3,731 | | | 5,045 | | | | Underwriting expenses | 427 | | | 516 | | | 518 | | | 475 | | | 480 | | | 572 | | | 584 | | | 1,461 | | | 1,636 | | | | Statutory underwriting gain (loss) | $ | 145 | | $ | (351) | | $ | (97) | | $ | 5 | | $ | 33 | | $ | (725) | | $ | (385) | | $ | (303) | | $ | (1,077) | | | Other statistics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Combined ratio (1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loss and loss adjustment expense ratio | 63.2 | | % | 89.9 | | % | 75.4 | | % | 72.8 | | % | 71.2 | | % | 108.2 | | % | 89.7 | | % | 76.3 | | % | 90.0 | | % | | Underwriting expense ratio | 28.0 | | % | 28.1 | | % | 26.9 | | % | 26.6 | | % | 27.3 | | % | 26.9 | | % | 26.5 | | % | 27.7 | | % | 26.9 | | % | | Combined ratio | 91.2 | | % | 118.0 | | % | 102.3 | | % | 99.4 | | % | 98.5 | | % | 135.1 | | % | 116.2 | | % | 104.0 | | % | 116.9 | | % | | Impact on combined ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net favorable prior year reserve development | (0.6) | | % | (1.3) | | % | (1.5) | | % | (0.8) | | % | (2.0) | | % | (2.4) | | % | (2.1) | | % | (1.2) | | % | (2.2) | | % | | Catastrophes, net of reinsurance | 4.9 | | % | 29.0 | | % | 8.9 | | % | 18.0 | | % | 17.8 | | % | 52.3 | | % | 30.3 | | % | 14.4 | | % | 33.7 | | % | | Underlying combined ratio | 86.9 | | % | 90.3 | | % | 94.9 | | % | 82.2 | | % | 82.7 | | % | 85.2 | | % | 88.0 | | % | 90.8 | | % | 85.4 | | % | | Catastrophes, net of reinsurance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 76 | | $ | 473 | | $ | 152 | | $ | 318 | | $ | 316 | | $ | 979 | | $ | 593 | | $ | 701 | | $ | 1,888 | | | After-tax | $ | 60 | | $ | 372 | | $ | 120 | | $ | 252 | | $ | 250 | | $ | 773 | | $ | 467 | | $ | 552 | | $ | 1,490 | | | Prior year reserve development - favorable: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-tax | $ | 9 | | $ | 22 | | $ | 26 | | $ | 15 | | $ | 35 | | $ | 46 | | $ | 42 | | $ | 57 | | $ | 123 | | | After-tax | $ | 7 | | $ | 17 | | $ | 20 | | $ | 12 | | $ | 28 | | $ | 36 | | $ | 32 | | $ | 44 | | $ | 96 | | | Policies in force (in thousands) | 6,284 | | | 6,338 | | | 6,367 | | | 6,375 | | | 6,355 | | | 6,361 | | | 6,348 | | | | | | | | | | Change from prior year quarter | 5.7 | | % | 4.3 | | % | 3.2 | | % | 2.3 | | % | 1.1 | | % | 0.4 | | % | (0.3) | | % | | | | | | | | Change from prior quarter | 0.9 | | % | 0.9 | | % | 0.5 | | % | 0.1 | | % | (0.3) | | % | 0.1 | | % | (0.2) | | % | | | | | | | | (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 | | | 2Q2023 | | | 3Q2023 | | | YTD 3Q2022 | | | YTD 3Q2023 | | | | Billing and policy fees and other | $ | 10 | | $ | 9 | | $ | 9 | | $ | 10 | | $ | 10 | | $ | 10 | | $ | 10 | | $ | 28 | | $ | 30 | | | Fee income | $ | 3 | | $ | 4 | | $ | 4 | | $ | 3 | | $ | 3 | | $ | 4 | | $ | 5 | | $ | 11 | | $ | 12 | |

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

| The Travelers Companies, Inc.<br><br>Interest Expense and Other | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Revenues | | | | | | | | | | | | | | | | | | | | Other revenues | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | | Claims and expenses | | | | | | | | | | | | | | | | | | | | Interest expense | 87 | | 88 | | 88 | | 88 | | 88 | | 92 | | 98 | | 263 | | 278 | | | General and administrative expenses | 8 | | 9 | | 8 | | 6 | | 9 | | 10 | | 9 | | 25 | | 28 | | | Total claims and expenses | 95 | | 97 | | 96 | | 94 | | 97 | | 102 | | 107 | | 288 | | 306 | | | Loss before income tax benefit | (95) | | (97) | | (96) | | (94) | | (97) | | (102) | | (107) | | (288) | | (306) | | | Income tax benefit | (21) | | (21) | | (20) | | (19) | | (21) | | (23) | | (21) | | (62) | | (65) | | | Loss | $ | (74) | $ | (76) | $ | (76) | $ | (75) | $ | (76) | $ | (79) | $ | (86) | $ | (226) | $ | (241) |

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

| The Travelers Companies, Inc.<br><br>Consolidated Balance Sheet | | --- || ($ and shares in millions) | September 30,<br>2023 | | December 31,<br>2022 | | | --- | --- | --- | --- | --- | | Assets | | | | | | Fixed maturities, available for sale, at fair value (amortized cost $80,792 and $77,380; allowance for expected credit losses of $4 and $3) | $ | 72,584 | $ | 71,160 | | Equity securities, at fair value (cost $546 and $747) | 573 | | 807 | | | Real estate investments | 960 | | 952 | | | Short-term securities | 4,488 | | 3,470 | | | Other investments | 4,351 | | 4,065 | | | Total investments | 82,956 | | 80,454 | | | Cash | 593 | | 799 | | | Investment income accrued | 623 | | 650 | | | Premiums receivable (net of allowance for expected credit losses of $68 and $77) | 10,345 | | 8,922 | | | Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $121 and $132) | 8,267 | | 8,063 | | | Ceded unearned premiums | 1,389 | | 1,024 | | | Deferred acquisition costs | 3,330 | | 2,836 | | | Deferred taxes | 2,393 | | 1,877 | | | Contractholder receivables (net of allowance for expected credit losses of $20 and $17) | 3,467 | | 3,579 | | | Goodwill | 3,955 | | 3,952 | | | Other intangible assets | 278 | | 287 | | | Other assets | 3,788 | | 3,274 | | | Total assets | $ | 121,384 | $ | 115,717 | | Liabilities | | | | | | Claims and claim adjustment expense reserves | $ | 61,709 | $ | 58,649 | | Unearned premium reserves | 21,058 | | 18,240 | | | Contractholder payables | 3,487 | | 3,596 | | | Payables for reinsurance premiums | 807 | | 419 | | | Debt | 8,031 | | 7,292 | | | Other liabilities | 6,314 | | 5,961 | | | Total liabilities | 101,406 | | 94,157 | | | Shareholders’ equity | | | | | | Common stock (1,750.0 shares authorized; 228.4 and 232.1 shares issued and outstanding) | 24,831 | | 24,565 | | | Retained earnings | 44,198 | | 43,516 | | | Accumulated other comprehensive loss | (8,012) | | (6,445) | | | Treasury stock, at cost (558.8 and 553.5 shares) | (41,039) | | (40,076) | | | Total shareholders’ equity | 19,978 | | 21,560 | | | Total liabilities and shareholders’ equity | $ | 121,384 | $ | 115,717 | | The Travelers Companies, Inc.<br><br>Investment Portfolio | | --- || (at carrying value, $ in millions) | September 30,<br>2023 | | Pre-tax Book<br>Yield (1) | | December 31,<br>2022 | | Pre-tax Book<br>Yield (1) | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Investment portfolio | | | | | | | | | | Taxable fixed maturities | $ | 50,342 | 3.42 | % | $ | 43,664 | 2.94 | % | | Tax-exempt fixed maturities | 22,242 | | 2.92 | % | 27,496 | | 2.91 | % | | Total fixed maturities | 72,584 | | 3.26 | % | 71,160 | | 2.93 | % | | Non-redeemable preferred stocks | 46 | | 2.21 | % | 44 | | 2.24 | % | | Common stocks | 527 | | | | 763 | | | | | Total equity securities | 573 | | | | 807 | | | | | Real estate investments | 960 | | | | 952 | | | | | Short-term securities | 4,488 | | 5.48 | % | 3,470 | | 4.38 | % | | Private equities | 2,837 | | | | 2,785 | | | | | Hedge funds | 214 | | | | 225 | | | | | Real estate partnerships | 878 | | | | 862 | | | | | Other investments | 422 | | | | 193 | | | | | Total other investments | 4,351 | | | | 4,065 | | | | | Total investments | $ | 82,956 | | | $ | 80,454 | | | | Net unrealized investment gains (losses), net of tax, included in shareholders’ equity | $ | (6,466) | | | $ | (4,898) | | |

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

| The Travelers Companies, Inc.<br><br>Investment Portfolio - Fixed Maturities Data | | --- || (at carrying value, $ in millions) | September 30,<br>2023 | | | | December 31,<br>2022 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Fixed maturities | | | | | | | | | | U.S. Treasury securities and obligations of U.S. Government corporations and agencies | $ | 6,212 | | | $ | 5,438 | | | | Obligations of U.S. states and political subdivisions: | | | | | | | | | | Pre-refunded | 1,040 | | | | 2,339 | | | | | All other | 25,198 | | | | 29,040 | | | | | Total | 26,238 | | | | 31,379 | | | | | Debt securities issued by foreign governments | 982 | | | | 994 | | | | | Mortgage-backed securities - principally obligations of U.S. Government agencies | 6,523 | | | | 1,991 | | | | | Corporate and all other bonds | 32,629 | | | | 31,358 | | | | | Total fixed maturities | $ | 72,584 | | | $ | 71,160 | | | | Fixed Maturities<br>Quality Characteristics (1) | | | | | | | | | | | September 30, 2023 | | | | December 31, 2022 | | | | | | Amount | | % of Total | | Amount | | % of Total | | | Quality Ratings | | | | | | | | | | Aaa | $ | 33,563 | 46.3 | % | $ | 31,688 | 44.6 | % | | Aa | 14,825 | | 20.4 | | 16,217 | | 22.8 | | | A | 14,097 | | 19.4 | | 13,333 | | 18.7 | | | Baa | 9,148 | | 12.6 | | 8,992 | | 12.6 | | | Total investment grade | 71,633 | | 98.7 | | 70,230 | | 98.7 | | | Ba | 572 | | 0.8 | | 580 | | 0.8 | | | B | 312 | | 0.4 | | 281 | | 0.4 | | | Caa and lower | 67 | | 0.1 | | 69 | | 0.1 | | | Total below investment grade | 951 | | 1.3 | | 930 | | 1.3 | | | Total fixed maturities | $ | 72,584 | 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.<br><br>Investment Income
($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023		2Q2023		3Q2023		YTD 3Q2022		YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Gross investment income
Fixed maturities
Short-term securities	2		9		23		39		47		55		67		34		169
Other	142		197		46		34		53		78		82		385		213
	649		718		603		635		675		724		780		1,970		2,179
Investment expenses	12		11		10		10		12		12		11		33		35
Net investment income, pre-tax	637		707		593		625		663		712		769		1,937		2,144
Income taxes	98		112		88		94		106		118		129		298		353
Net investment income, after-tax
Effective tax rate	15.4	%	15.8	%	14.8	%	15.1	%	16.0	%	16.5	%	16.8	%	15.4	%	16.5	%
Average invested assets (1)	86,345		86,660		87,315		88,242		88,740		89,536		91,591		86,818		90,048
Average yield pre-tax (1)	2.9	%	3.3	%	2.7	%	2.8	%	3.0	%	3.2	%	3.4	%	3.0	%	3.2	%
Average yield after-tax	2.5	%	2.7	%	2.3	%	2.4	%	2.5	%	2.7	%	2.8	%	2.5	%	2.7	%

All values are in US Dollars.

(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.<br><br>Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity
($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023		2Q2023		3Q2023		YTD 3Q2022		YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Net realized investment gains (losses)
Fixed maturities	$	2	$	(21)	$	(42)	$	(37)	$	(11)	$	(22)	$	(36)	$	(61)	$	(69)
Equity securities	(19)		(64)		(26)		40		18		(19)		(16)		(109)		(17)
Other	(6)		(10)		(25)		4		(1)		6		(13)		(41)		(8)
Realized investment gains (losses) before tax	(23)		(95)		(93)		7		6		(35)		(65)		(211)		(94)
Related taxes	(4)		(21)		(21)		(2)		1		(6)		(15)		(46)		(20)
Net realized investment gains (losses)	$	(19)	$	(74)	$	(72)	$	9	$	5	$	(29)	$	(50)	$	(165)	$	(74)
Gross investment gains	$	13	$	16	$	15	$	69	$	46	$	17	$	9	$	44	$	72
Gross investment losses before impairments	(35)		(91)		(94)		(59)		(39)		(52)		(73)		(220)		(164)
Net investment gains (losses) before impairments	(22)		(75)		(79)		10		7		(35)		(64)		(176)		(92)
Net impairment (charges) recoveries	(1)		(20)		(14)		(3)		(1)		—		(1)		(35)		(2)
Net realized investment gains (losses) before tax	(23)		(95)		(93)		7		6		(35)		(65)		(211)		(94)
Related taxes	(4)		(21)		(21)		(2)		1		(6)		(15)		(46)		(20)
Net realized investment gains (losses)	$	(19)	$	(74)	$	(72)	$	9	$	5	$	(29)	$	(50)	$	(165)	$	(74)
($ in millions)	March 31,<br>2022		June 30,<br>2022		September 30,<br>2022		December 31,<br>2022		March 31,<br>2023		June 30,<br>2023		September 30,<br>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)	$	(5,811)	$	(8,204)
Other	(2)		(3)		(3)		(3)		(3)		(4)		(2)
Unrealized investment gains (losses) before tax	(1,770)		(4,817)		(8,021)		(6,220)		(4,912)		(5,815)		(8,206)
Related taxes	(379)		(1,025)		(1,704)		(1,322)		(1,044)		(1,239)		(1,740)
Balance, end of period	$	(1,391)	$	(3,792)	$	(6,317)	$	(4,898)	$	(3,868)	$	(4,576)	$	(6,466)
The Travelers Companies, Inc.<br><br>Reinsurance Recoverables
---		($ in millions)	September 30, 2023		December 31, 2022
---	---	---	---	---
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)	$	4,005	$	3,792
Gross structured settlements (2)	2,726		2,802
Mandatory pools and associations (3)	1,657		1,601
Gross reinsurance recoverables (4)	8,388		8,195
Allowance for estimated uncollectible reinsurance (5)	(121)		(132)
Net reinsurance recoverables	$	8,267	$	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	September 30, 2023
Swiss Re Group	A+ second highest of 16 ratings	$	657
Berkshire Hathaway	A++ highest of 16 ratings	491
Munich Re Group	A+ second highest of 16 ratings	365
Axa Group	A+ second highest of 16 ratings	170
PartnerRe Group	A+ second highest of 16 ratings	132

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	September 30, 2023
Fidelity & Guaranty Life Group	A- fourth highest of 16 ratings	$	677
Genworth Financial Group	B- eighth highest of 16 ratings	327
John Hancock Group	A+ second highest of 16 ratings	229
Symetra Financial Corporation	A third highest of 16 ratings	211
Brighthouse Financial, Inc.	A third highest of 16 ratings	193

(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 September 30, 2023, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.86 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.<br><br>Net Reserves for Losses and Loss Adjustment Expense | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Statutory Reserves for Losses and Loss Adjustment Expenses | | | | | | | | | | | | | | | | | | | | Business Insurance | | | | | | | | | | | | | | | | | | | | Beginning of period | $ | 38,233 | $ | 38,450 | $ | 38,618 | $ | 38,905 | $ | 39,027 | $ | 39,279 | $ | 39,908 | $ | 38,233 | $ | 39,027 | | Incurred | 2,472 | | 2,656 | | 2,911 | | 2,682 | | 2,858 | | 3,251 | | 3,467 | | 8,039 | | 9,576 | | | Paid | (2,242) | | (2,411) | | (2,516) | | (2,631) | | (2,620) | | (2,657) | | (2,637) | | (7,169) | | (7,914) | | | Foreign exchange and other | (13) | | (77) | | (108) | | 71 | | 14 | | 35 | | (48) | | (198) | | 1 | | | End of period | $ | 38,450 | $ | 38,618 | $ | 38,905 | $ | 39,027 | $ | 39,279 | $ | 39,908 | $ | 40,690 | $ | 38,905 | $ | 40,690 | | Bond & Specialty Insurance | | | | | | | | | | | | | | | | | | | | Beginning of period | $ | 3,938 | $ | 4,079 | $ | 4,118 | $ | 4,042 | $ | 4,167 | $ | 4,318 | $ | 4,448 | $ | 3,938 | $ | 4,167 | | Incurred | 351 | | 328 | | 328 | | 359 | | 376 | | 363 | | 345 | | 1,007 | | 1,084 | | | Paid | (197) | | (242) | | (345) | | (282) | | (238) | | (256) | | (335) | | (784) | | (829) | | | Foreign exchange and other | (13) | | (47) | | (59) | | 48 | | 13 | | 23 | | (35) | | (119) | | 1 | | | End of period | $ | 4,079 | $ | 4,118 | $ | 4,042 | $ | 4,167 | $ | 4,318 | $ | 4,448 | $ | 4,423 | $ | 4,042 | $ | 4,423 | | Personal Insurance | | | | | | | | | | | | | | | | | | | | Beginning of period | $ | 6,418 | $ | 6,498 | $ | 6,940 | $ | 7,192 | $ | 7,568 | $ | 7,567 | $ | 8,287 | $ | 6,418 | $ | 7,568 | | Incurred | 2,171 | | 2,774 | | 2,795 | | 2,829 | | 2,672 | | 3,565 | | 3,279 | | 7,740 | | 9,516 | | | Paid | (2,103) | | (2,306) | | (2,486) | | (2,467) | | (2,674) | | (2,863) | | (2,967) | | (6,895) | | (8,504) | | | Foreign exchange and other | 12 | | (26) | | (57) | | 14 | | 1 | | 18 | | (20) | | (71) | | (1) | | | End of period | $ | 6,498 | $ | 6,940 | $ | 7,192 | $ | 7,568 | $ | 7,567 | $ | 8,287 | $ | 8,579 | $ | 7,192 | $ | 8,579 | | Total | | | | | | | | | | | | | | | | | | | | Beginning of period | $ | 48,589 | $ | 49,027 | $ | 49,676 | $ | 50,139 | $ | 50,762 | $ | 51,164 | $ | 52,643 | $ | 48,589 | $ | 50,762 | | Incurred | 4,994 | | 5,758 | | 6,034 | | 5,870 | | 5,906 | | 7,179 | | 7,091 | | 16,786 | | 20,176 | | | Paid | (4,542) | | (4,959) | | (5,347) | | (5,380) | | (5,532) | | (5,776) | | (5,939) | | (14,848) | | (17,247) | | | Foreign exchange and other | (14) | | (150) | | (224) | | 133 | | 28 | | 76 | | (103) | | (388) | | 1 | | | End of period | $ | 49,027 | $ | 49,676 | $ | 50,139 | $ | 50,762 | $ | 51,164 | $ | 52,643 | $ | 53,692 | $ | 50,139 | $ | 53,692 | | Prior Year Reserve Development: Unfavorable (Favorable) | | | | | | | | | | | | | | | | | | | | Business Insurance | | | | | | | | | | | | | | | | | | | | Asbestos | $ | — | $ | — | $ | 212 | $ | — | $ | — | $ | — | $ | 284 | $ | 212 | $ | 284 | | All other | (113) | | (202) | | (151) | | (127) | | (19) | | 101 | | (21) | | (466) | | 61 | | | Total Business Insurance (1) | (113) | | (202) | | 61 | | (127) | | (19) | | 101 | | 263 | | (254) | | 345 | | | Bond & Specialty Insurance | (35) | | (73) | | (63) | | (51) | | (58) | | (119) | | (72) | | (171) | | (249) | | | Personal Insurance | (5) | | (16) | | (18) | | (7) | | (28) | | (42) | | (37) | | (39) | | (107) | | | Total | $ | (153) | $ | (291) | $ | (20) | $ | (185) | $ | (105) | $ | (60) | $ | 154 | $ | (464) | $ | (11) |

(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.<br><br>Asbestos Reserves | | --- || ($ in millions) | 1Q2022 | | 2Q2022 | | 3Q2022 | | 4Q2022 | | 1Q2023 | | 2Q2023 | | 3Q2023 | | YTD 3Q2022 | | YTD 3Q2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Asbestos reserves | | | | | | | | | | | | | | | | | | | | Beginning reserves: | | | | | | | | | | | | | | | | | | | | Gross | $ | 1,687 | $ | 1,635 | $ | 1,547 | $ | 1,765 | $ | 1,674 | $ | 1,620 | $ | 1,552 | $ | 1,687 | $ | 1,674 | | Ceded | (346) | | (331) | | (322) | | (372) | | (369) | | (348) | | (334) | | (346) | | (369) | | | Net | 1,341 | | 1,304 | | 1,225 | | 1,393 | | 1,305 | | 1,272 | | 1,218 | | 1,341 | | 1,305 | | | Incurred losses and loss expenses: | | | | | | | | | | | | | | | | | | | | Gross | — | | — | | 287 | | — | | — | | — | | 374 | | 287 | | 374 | | | Ceded | — | | — | | (75) | | — | | — | | — | | (90) | | (75) | | (90) | | | Paid loss and loss expenses: | | | | | | | | | | | | | | | | | | | | Gross | 52 | | 85 | | 68 | | 93 | | 54 | | 69 | | 77 | | 205 | | 200 | | | Ceded | (16) | | (8) | | (25) | | (4) | | (21) | | (13) | | (10) | | (49) | | (44) | | | Foreign exchange and other: | | | | | | | | | | | | | | | | | | | | Gross | — | | (3) | | (1) | | 2 | | — | | 1 | | (1) | | (4) | | — | | | Ceded | (1) | | 1 | | — | | (1) | | — | | 1 | | (1) | | — | | — | | | Ending reserves: | | | | | | | | | | | | | | | | | | | | Gross | 1,635 | | 1,547 | | 1,765 | | 1,674 | | 1,620 | | 1,552 | | 1,848 | | 1,765 | | 1,848 | | | Ceded | (331) | | (322) | | (372) | | (369) | | (348) | | (334) | | (415) | | (372) | | (415) | | | Net | $ | 1,304 | $ | 1,225 | $ | 1,393 | $ | 1,305 | $ | 1,272 | $ | 1,218 | $ | 1,433 | $ | 1,393 | $ | 1,433 |

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

| The Travelers Companies, Inc.<br><br>Capitalization | | --- || ($ in millions) | September 30,<br>2023 | | | December 31,<br>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 | | | | 5.45% Senior notes due May 25, 2053 (1) | 750 | | | — | | | | Total long-term debt | 8,004 | | | 7,254 | | | | Unamortized fair value adjustment | 36 | | | 38 | | | | Unamortized debt issuance costs | (109) | | | (100) | | | | | 7,931 | | | 7,192 | | | | Total debt | 8,031 | | | 7,292 | | | | Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity) | 26,444 | | | 26,458 | | | | Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity) | $ | 34,475 | | $ | 33,750 | | | Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity) | 23.3 | | % | 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.<br><br>Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation | | --- || ($ in millions) | September 30,<br>2023 (1) | | December 31,<br>2022 | | | --- | --- | --- | --- | --- | | Statutory capital and surplus | $ | 23,267 | $ | 23,677 | | GAAP adjustments | | | | | | Goodwill and intangible assets | 3,653 | | 3,551 | | | Investments | (7,484) | | (5,893) | | | Noninsurance companies | (5,097) | | (4,412) | | | Deferred acquisition costs | 3,166 | | 2,836 | | | Deferred federal income tax | 998 | | 630 | | | Current federal income tax | (2) | | (2) | | | Reinsurance recoverables | 73 | | 65 | | | Furniture, equipment & software | 890 | | 742 | | | Agents balances | 186 | | 156 | | | Other | 328 | | 210 | | | Total GAAP adjustments | (3,289) | | (2,117) | | | GAAP shareholders’ equity | $ | 19,978 | $ | 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.<br><br>Statement of Cash Flows
($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023		2Q2023		3Q2023		YTD 3Q2022		YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Cash flows from operating activities
Net income (loss)	$	1,018	$	551	$	454	$	819	$	975	$	(14)	$	404	$	2,023	$	1,365
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized investment (gains) losses	23		95		93		(7)		(6)		35		65		211		94
Depreciation and amortization	234		210		195		187		204		179		169		639		552
Deferred federal income tax expense (benefit)	40		(68)		(102)		(56)		32		(96)		(43)		(130)		(107)
Amortization of deferred acquisition costs	1,310		1,365		1,406		1,434		1,462		1,519		1,604		4,081		4,585
Equity in income from other investments	(118)		(177)		(24)		(17)		(30)		(55)		(59)		(319)		(144)
Premiums receivable	(509)		(562)		210		(16)		(557)		(832)		(33)		(861)		(1,422)
Reinsurance recoverables	(282)		198		269		159		(24)		(17)		(163)		185		(204)
Deferred acquisition costs	(1,413)		(1,504)		(1,502)		(1,405)		(1,629)		(1,722)		(1,728)		(4,419)		(5,079)
Claims and claim adjustment expense reserves	679		593		422		356		381		1,413		1,259		1,694		3,053
Unearned premium reserves	727		671		635		(171)		893		1,042		882		2,033		2,817
Other	(443)		3		428		57		(689)		97		689		(12)		97
Net cash provided by operating activities	1,266		1,375		2,484		1,340		1,012		1,549		3,046		5,125		5,607
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,879		1,818		1,784		1,356		1,538		1,493		1,878		5,481		4,909
Proceeds from sales of investments:
Fixed maturities	1,044		1,657		1,250		1,706		2,364		751		1,504		3,951		4,619
Equity securities	63		21		20		34		28		62		27		104		117
Real estate investments	—		—		10		—		—		—		—		10		—
Other investments	81		92		69		60		64		36		66		242		166
Purchases of investments:
Fixed maturities	(4,409)		(3,589)		(4,102)		(3,808)		(4,335)		(3,328)		(5,391)		(12,100)		(13,054)
Equity securities	(63)		(23)		(26)		(24)		(34)		(16)		(30)		(112)		(80)
Real estate investments	(9)		(7)		(12)		(13)		(14)		(12)		(20)		(28)		(46)
Other investments	(135)		(117)		(162)		(160)		(139)		(116)		(120)		(414)		(375)
Net sales (purchases) of short-term securities	367		(110)		(364)		462		228		(646)		(600)		(107)		(1,018)
Securities transactions in the course of settlement	613		(377)		(22)		(193)		(35)		50		45		214		60
Acquisition, net of cash acquired	(4)		—		—		—		—		—		—		(4)		—
Other	(84)		(75)		(132)		(94)		(120)		(131)		(84)		(291)		(335)
Net cash used in investing activities	(657)		(710)		(1,687)		(674)		(455)		(1,857)		(2,725)		(3,054)		(5,037)
The Travelers Companies, Inc.<br><br>Statement of Cash Flows (Continued)
---		($ in millions)	1Q2022		2Q2022		3Q2022		4Q2022		1Q2023		2Q2023		3Q2023		YTD 3Q2022		YTD 3Q2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations	(500)		(500)		(500)		(500)		(398)		(396)		(100)		(1,500)		(894)
Treasury stock acquired - net employee share-based compensation	(59)		—		(1)		(1)		(62)		—		(1)		(60)		(63)
Dividends paid to shareholders	(213)		(223)		(220)		(219)		(215)		(232)		(229)		(656)		(676)
Issuance of debt	—		—		—		—		—		738		—		—		738
Issuance of common stock - employee share options	159		35		11		62		82		28		7		205		117
Net cash provided by (used in) financing activities	(613)		(688)		(710)		(658)		(593)		138		(323)		(2,011)		(778)
Effect of exchange rate changes on cash	(5)		(19)		(24)		18		4		8		(10)		(48)		2
Net increase (decrease) in cash	(9)		(42)		63		26		(32)		(162)		(12)		12		(206)
Cash at beginning of period	761		752		710		773		799		767		605		761		799
Cash at end of period	$	752	$	710	$	773	$	799	$	767	$	605	$	593	$	773	$	593
Income taxes paid (received)	$	10	$	542	$	111	$	154	$	(16)	$	155	$	13	$	663	$	152
Interest paid	$	59	$	115	$	60	$	115	$	60	$	115	$	59	$	234	$	234
The Travelers Companies, Inc.<br><br>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.

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.

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.

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		June 30, 2023		September 30, 2023
Shareholders’ equity	$	25,531	$	22,874	$	19,906	$	21,560	$	23,052	$	21,855	$	19,978
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity	1,391		3,792		6,317		4,898		3,868		4,576		6,466
Net realized investment (gains) losses, net of tax	19		93		165		156		(5)		24		74
Adjusted shareholders’ equity	$	26,941	$	26,759	$	26,388	$	26,614	$	26,915	$	26,455	$	26,518

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.

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.

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.

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.

The Travelers Companies, Inc.<br><br>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.

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.

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

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.

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.

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.

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.

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.

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