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Published: 2023-07-20 06:58:38 ET
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EX-99.2 3 a992finsupp63023.htm EX-99.2 Document
The Travelers Companies, Inc.
Financial Supplement - Second Quarter 2023
Exhibit 99.2 image2.gif
Page Number
Consolidated Results
Financial Highlights1
Reconciliation to Net Income (Loss) and Earnings Per Share2
Statement of Income (Loss)3
Net Income (Loss) by Major Component and Combined Ratio4
Core Income5
Selected Statistics - Property and Casualty Operations6
Written and Earned Premiums - Property and Casualty Operations7
Business Insurance
Segment Income 8
Segment Income by Major Component and Combined Ratio9
Selected Statistics10
Net Written Premiums11
Bond & Specialty Insurance
Segment Income12
Segment Income by Major Component and Combined Ratio13
Selected Statistics14
Net Written Premiums15
Personal Insurance
Segment Income (Loss)16
Segment Income (Loss) by Major Component and Combined Ratio17
Selected Statistics18
Net Written Premiums19
Selected Statistics - Automobile20
Selected Statistics - Homeowners and Other21
Supplemental Detail
Interest Expense and Other22
Consolidated Balance Sheet23
Investment Portfolio24
Investment Portfolio - Fixed Maturities Data25
Investment Income26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity27
Reinsurance Recoverables28
Net Reserves for Losses and Loss Adjustment Expense29
Asbestos Reserves30
Capitalization31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation32
Statement of Cash Flows33
Statement of Cash Flows (continued)34
Glossary of Financial Measures and Description of Reportable Business Segments35-36
 The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.
Index
The Travelers Companies, Inc.
Financial Highlights
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($ and shares in millions, except for per share data)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Net income (loss)$1,018 $551 $454 $819 $975 $(14)$1,569 $961 
Net income (loss) per share:
Basic$4.20 $2.29 $1.91 $3.49 $4.18 $(0.07)$6.50 $4.14 
Diluted$4.15 $2.27 $1.89 $3.44 $4.13 $(0.07)$6.43 $4.09 
Core income$1,037 $625 $526 $810 $970 $15 $1,662 $985 
Core income per share:
Basic$4.27 $2.60 $2.22 $3.45 $4.16 $0.06 $6.88 $4.24 
Diluted$4.22 $2.57 $2.20 $3.40 $4.11 $0.06 $6.81 $4.19 
Return on equity15.0 %9.1 %8.5 %15.8 %17.5 %(0.2)%12.2 %8.6 %
Core return on equity15.5 %9.3 %7.9 %12.3 %14.5 %0.2 %12.4 %7.4 %
Total assets, at period end$118,592 $116,587 $114,317 $115,717 $118,352 $120,573 $116,587 $120,573 
Total equity, at period end$25,531 $22,874 $19,906 $21,560 $23,052 $21,855 $22,874 $21,855 
Book value per share, at period end$106.40 $96.39 $84.94 $92.90 $99.80 $95.46 $96.39 $95.46 
Less: Net unrealized investment gains (losses), net of tax(5.79)(15.98)(26.96)(21.10)(16.75)(19.99)(15.98)(19.99)
Adjusted book value per share, at period end$112.19 $112.37 $111.90 $114.00 $116.55 $115.45 $112.37 $115.45 
Weighted average number of common shares outstanding (basic)240.9 238.4 235.4 233.2 231.7 229.7 239.7 230.6 
Weighted average number of common shares outstanding and common stock equivalents (diluted)243.7 241.1 237.9 236.3 234.4 229.7 242.4 233.3 
Common shares outstanding at period end240.0 237.3 234.3 232.1 231.0 228.9 237.3 228.9 
Common stock dividends declared$214 $225 $221 $220 $218 $233 $439 $451 
Common stock repurchased:
Under Board of Directors authorization
Shares2.9 2.9 3.1 2.7 2.2 2.2 5.8 4.4 
Cost$500 $500 $500 $500 $400 $400 $1,000 $800 
Other
Shares0.4 — — — 0.3 — 0.4 0.3 
Cost$59 $— $1 $1 $62 $— $59 $62 




See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
1
The Travelers Companies, Inc.
Reconciliation to Net Income (Loss) and Earnings per Share
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($ and shares in millions, except earnings per share)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Net income (loss)
Net income (loss)$1,018 $551 $454 $819 $975 $(14)$1,569 $961 
Adjustments:
Net realized investment (gains) losses, after-tax19 74 72 (9)(5)29 93 24 
Core income $1,037 $625 $526 $810 $970 $15 $1,662 $985 
Basic earnings per share
Net income (loss)$4.20 $2.29 $1.91 $3.49 $4.18 $(0.07)$6.50 $4.14 
Adjustments:
Net realized investment (gains) losses, after-tax0.07 0.31 0.31 (0.04)(0.02)0.13 0.38 0.10 
Core income $4.27 $2.60 $2.22 $3.45 $4.16 $0.06 $6.88 $4.24 
Diluted earnings per share
Net income (loss)$4.15 $2.27 $1.89 $3.44 $4.13 $(0.07)$6.43 $4.09 
Adjustments:
Net realized investment (gains) losses, after-tax0.07 0.30 0.31 (0.04)(0.02)0.13 0.38 0.10 
Core income $4.22 $2.57 $2.20 $3.40 $4.11 $0.06 $6.81 $4.19 
Adjustments to net income (loss) and weighted average shares for net income (loss) EPS calculations: (1)
Basic and Diluted1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Net income (loss), as reported$1,018 $551 $454 $819 $975 $(14)$1,569 $961 
Participating share-based awards - allocated income(7)(4)(4)(5)(7)(1)(11)(7)
Net income (loss) available to common shareholders - basic and diluted$1,011 $547 $450 $814 $968 $(15)$1,558 $954 
Common Shares
Basic
Weighted average shares outstanding240.9 238.4 235.4 233.2 231.7 229.7 239.7 230.6 
Diluted
Weighted average shares outstanding240.9 238.4 235.4 233.2 231.7 229.7 239.7 230.6 
Weighted average effects of dilutive securities - stock options and performance shares2.8 2.7 2.5 3.1 2.7 — 2.7 2.7 
Diluted weighted average shares outstanding243.7 241.1 237.9 236.3 234.4 229.7 242.4 233.3 
(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.
2
The Travelers Companies, Inc.
Statement of Income (Loss) - Consolidated
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($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Revenues
Premiums$8,014 $8,317 $8,615 $8,817 $8,854 $9,216 $16,331 $18,070 
Net investment income637 707 593 625 663 712 1,344 1,375 
Fee income103 100 104 105 106 106 203 212 
Net realized investment gains (losses)(23)(95)(93)7 6 (35)(118)(29)
Other revenues78 107 84 82 75 99 185 174 
Total revenues8,809 9,136 9,303 9,636 9,704 10,098 17,945 19,802 
Claims and expenses
Claims and claim adjustment expenses5,039 5,803 6,088 5,924 5,959 7,227 10,842 13,186 
Amortization of deferred acquisition costs1,310 1,365 1,406 1,434 1,462 1,519 2,675 2,981 
General and administrative expenses1,191 1,223 1,193 1,203 1,267 1,308 2,414 2,575 
Interest expense87 88 88 88 88 92 175 180 
Total claims and expenses7,627 8,479 8,775 8,649 8,776 10,146 16,106 18,922 
Income (loss) before income taxes1,182 657 528 987 928 (48)1,839 880 
Income tax expense (benefit)164 106 74 168 (47)(34)270 (81)
Net income (loss)$1,018 $551 $454 $819 $975 $(14)$1,569 $961 
Other statistics
Effective tax rate on net investment income15.4 %15.8 %14.8 %15.1 %16.0 %16.5 %15.6 %16.3 %
Net investment income (after-tax)$539 $595 $505 $531 $557 $594 $1,134 $1,151 
Catastrophes, net of reinsurance:
Pre-tax$160 $746 $512 $459 $535 $1,481 $906 $2,016 
After-tax$127 $587 $404 $362 $422 $1,171 $714 $1,593 
Prior year reserve development - favorable (unfavorable):
Pre-tax$153 $291 $20 $185 $105 $60 $444 $165 
After-tax$122 $229 $16 $145 $83 $47 $351 $130 





See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3
The Travelers Companies, Inc.
Net Income (Loss) by Major Component and Combined Ratio - Consolidated
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($ in millions, net of tax)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Underwriting gain (loss)$575 $86 $90 $354 $501 $(509)$661 $(8)
Net investment income539 595 505 531 557 594 1,134 1,151 
Other income (expense), including interest expense(77)(56)(69)(75)(88)(70)(133)(158)
Core income 1,037 625 526 810 970 15 1,662 985 
Net realized investment gains (losses)(19)(74)(72)9 5 (29)(93)(24)
Net income (loss)$1,018 $551 $454 $819 $975 $(14)$1,569 $961 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio62.3 %69.3 %70.1 %66.6 %66.7 %77.9 %65.8 %72.4 %
Underwriting expense ratio29.0 %29.0 %28.1 %27.9 %28.7 %28.6 %29.0 %28.7 %
Combined ratio91.3 %98.3 %98.2 %94.5 %95.4 %106.5 %94.8 %101.1 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(1.9)%(3.5)%(0.2)%(2.1)%(1.2)%(0.7)%(2.7)%(0.9)%
Catastrophes, net of reinsurance2.0 %9.0 %5.9 %5.2 %6.0 %16.1 %5.5 %11.2 %
Underlying combined ratio91.2 %92.8 %92.5 %91.4 %90.6 %91.1 %92.0 %90.8 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Billing and policy fees and other$27 $27 $27 $28 $28 $28 $54 $56 
Fee income:
Loss and loss adjustment expenses$35 $39 $38 $39 $42 $40 $74 $82 
Underwriting expenses68 61 66 66 64 66 129 130 
Total fee income$103 $100 $104 $105 $106 $106 $203 $212 
Non-insurance general and administrative expenses$82 $87 $83 $88 $95 $92 $169 $187 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
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($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Revenues
Premiums$8,014 $8,317 $8,615 $8,817 $8,854 $9,216 $16,331 $18,070 
Net investment income637 707 593 625 663 712 1,344 1,375 
Fee income103 100 104 105 106 106 203 212 
Other revenues78 107 84 82 75 99 185 174 
Total revenues
8,832 9,231 9,396 9,629 9,698 10,133 18,063 19,831 
Claims and expenses
Claims and claim adjustment expenses5,039 5,803 6,088 5,924 5,959 7,227 10,842 13,186 
Amortization of deferred acquisition costs1,310 1,365 1,406 1,434 1,462 1,519 2,675 2,981 
General and administrative expenses1,191 1,223 1,193 1,203 1,267 1,308 2,414 2,575 
Interest expense87 88 88 88 88 92 175 180 
Total claims and expenses
7,627 8,479 8,775 8,649 8,776 10,146 16,106 18,922 
Core income (loss) before income taxes1,205 752 621 980 922 (13)1,957 909 
Income tax expense (benefit)168 127 95 170 (48)(28)295 (76)
Core income $1,037 $625 $526 $810 $970 $15 $1,662 $985 
Other statistics
Effective tax rate on net investment income15.4 %15.8 %14.8 %15.1 %16.0 %16.5 %15.6 %16.3 %
Net investment income (after-tax)$539 $595 $505 $531 $557 $594 $1,134 $1,151 
Catastrophes, net of reinsurance:
Pre-tax$160 $746 $512 $459 $535 $1,481 $906 $2,016 
After-tax$127 $587 $404 $362 $422 $1,171 $714 $1,593 
Prior year reserve development - favorable (unfavorable):
Pre-tax$153 $291 $20 $185 $105 $60 $444 $165 
After-tax$122 $229 $16 $145 $83 $47 $351 $130 









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

5
The Travelers Companies, Inc.
Selected Statistics - Property and Casualty Operations
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($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Statutory underwriting
Gross written premiums$9,283 $9,536 $9,812 $9,245 $10,347 $10,907 $18,819 $21,254 
Net written premiums$8,367 $9,020 $9,198 $8,829 $9,396 $10,318 $17,387 $19,714 
Net earned premiums$8,016 $8,316 $8,615 $8,817 $8,854 $9,216 $16,332 $18,070 
Losses and loss adjustment expenses4,994 5,758 6,034 5,870 5,906 7,179 10,752 13,085 
Underwriting expenses2,441 2,568 2,533 2,450 2,727 2,863 5,009 5,590 
Statutory underwriting gain (loss) 581 (10)48 497 221 (826)571 (605)
Policyholder dividends11 6 14 9 12 10 17 22 
Statutory underwriting gain (loss) after policyholder dividends$570 $(16)$34 $488 $209 $(836)$554 $(627)
Other statutory statistics
Reserves for losses and loss adjustment expenses$49,027 $49,676 $50,139 $50,762 $51,164 $52,643 $49,676 $52,643 
Increase (decrease) in reserves$438 $649 $463 $623 $402 $1,479 $1,087 $1,881 
Statutory capital and surplus$24,168 $23,776 $23,375 $23,677 $23,689 $22,934 $23,776 $22,934 
Net written premiums/surplus (1)1.36:11.42:11.48:11.50:11.54:1 1.65:1 1.42:11.65:1

(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.

6
The Travelers Companies, Inc.
Written and Earned Premiums - Property and Casualty Operations
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($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Written premiums
Gross$9,283 $9,536 $9,812 $9,245 $10,347 $10,907 $18,819 $21,254 
Ceded(916)(516)(614)(416)(951)(589)(1,432)(1,540)
Net$8,367 $9,020 $9,198 $8,829 $9,396 $10,318 $17,387 $19,714 
Earned premiums
Gross$8,565 $8,897 $9,216 $9,415 $9,469 $9,866 $17,462 $19,335 
Ceded(551)(580)(601)(598)(615)(650)(1,131)(1,265)
Net$8,014 $8,317 $8,615 $8,817 $8,854 $9,216 $16,331 $18,070 






























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

7
The Travelers Companies, Inc.
Segment Income - Business Insurance
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($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Revenues
Premiums$4,071 $4,218 $4,353 $4,453 $4,477 $4,644 $8,289 $9,121 
Net investment income468 521 426 449 473 509 989 982 
Fee income96 93 96 97 99 98 189 197 
Other revenues53 85 56 54 47 67 138 114 
Total revenues
4,688 4,917 4,931 5,053 5,096 5,318 9,605 10,414 
Claims and expenses
Claims and claim adjustment expenses2,514 2,698 2,959 2,736 2,907 3,296 5,212 6,203 
Amortization of deferred acquisition costs668 691 708 721 742 773 1,359 1,515 
General and administrative expenses697 714 704 712 734 764 1,411 1,498 
Total claims and expenses
3,879 4,103 4,371 4,169 4,383 4,833 7,982 9,216 
Segment income before income taxes809 814 560 884 713 485 1,623 1,198 
Income tax expense (benefit)140 148 89 159 (43)83 288 40 
Segment income $669 $666 $471 $725 $756 $402 $1,335 $1,158 
Other statistics
Effective tax rate on net investment income15.3 %15.8 %14.6 %14.9 %15.8 %16.4 %15.5 %16.1 %
Net investment income (after-tax)$396 $439 $364 $382 $398 $426 $835 $824 
Catastrophes, net of reinsurance:
Pre-tax$79 $234 $216 $125 $199 $396 $313 $595 
After-tax$63 $184 $170 $98 $157 $313 $247 $470 
Prior year reserve development - favorable (unfavorable):
Pre-tax$113 $202 $(61)$127 $19 $(101)$315 $(82)
After-tax$90 $159 $(48)$100 $15 $(80)$249 $(65)












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
8
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Business Insurance
image2.gif


($ in millions, net of tax)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Underwriting gain (loss)$291 $220 $117 $361 $388 $(12)$511 $376 
Net investment income396 439 364 382 398 426 835 824 
Other income (expense)(18)7 (10)(18)(30)(12)(11)(42)
Segment income$669 $666 $471 $725 $756 $402 $1,335 $1,158 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio60.7 %63.0 %66.9 %60.4 %63.8 %70.0 %61.9 %66.9 %
Underwriting expense ratio30.2 %30.2 %29.4 %29.1 %29.8 %30.1 %30.2 %30.0 %
Combined ratio90.9 %93.2 %96.3 %89.5 %93.6 %100.1 %92.1 %96.9 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(2.8)%(4.8)%1.4 %(2.8)%(0.4)%2.2 %(3.8)%0.9 %
Catastrophes, net of reinsurance1.9 %5.6 %4.9 %2.8 %4.4 %8.5 %3.8 %6.5 %
Underlying combined ratio91.8 %92.4 %90.0 %89.5 %89.6 %89.4 %92.1 %89.5 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Billing and policy fees and other$3 $4 $4 $4 $4 $4 $7 $8 
Fee income:
Loss and loss adjustment expenses$35 $39 $38 $39 $42 $40 $74 $82 
Underwriting expenses61 54 58 58 57 58 115 115 
Total fee income$96 $93 $96 $97 $99 $98 $189 $197 
Non-insurance general and administrative expenses$70 $73 $70 $76 $80 $77 $143 $157 
 
 
 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
9
The Travelers Companies, Inc.
Selected Statistics - Business Insurance
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Statutory underwriting
Gross written premiums$5,148 $4,786 $4,864 $4,723 $5,828 $5,662 $9,934 $11,490 
Net written premiums$4,502 $4,373 $4,370 $4,390 $5,157 $5,175 $8,875 $10,332 
Net earned premiums$4,073 $4,217 $4,353 $4,453 $4,477 $4,644 $8,290 $9,121 
Losses and loss adjustment expenses2,472 2,656 2,911 2,682 2,858 3,251 5,128 6,109 
Underwriting expenses1,313 1,325 1,281 1,282 1,492 1,507 2,638 2,999 
Statutory underwriting gain (loss)288 236 161 489 127 (114)524 13 
Policyholder dividends8 4 7 9 8 7 12 15 
Statutory underwriting gain (loss) after policyholder dividends$280 $232 $154 $480 $119 $(121)$512 $(2)





























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

10
The Travelers Companies, Inc.
Net Written Premiums - Business Insurance
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($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Net written premiums by market      
Domestic      
Select Accounts$819 $807 $739 $734 $908 $883 $1,626 $1,791 
Middle Market2,616 2,329 2,465 2,513 2,926 2,618 4,945 5,544 
National Accounts303 240 247 295 294 277 543 571 
National Property and Other497 690 702 578 590 862 1,187 1,452 
Total Domestic4,235 4,066 4,153 4,120 4,718 4,640 8,301 9,358 
International267 307 217 270 439 535 574 974 
Total$4,502 $4,373 $4,370 $4,390 $5,157 $5,175 $8,875 $10,332 
Net written premiums by product line      
Domestic      
Workers’ compensation$1,008 $823 $787 $779 $1,051 $852 $1,831 $1,903 
Commercial automobile781 759 762 759 851 830 1,540 1,681 
Commercial property551 763 756 701 693 988 1,314 1,681 
General liability789 678 738 757 866 744 1,467 1,610 
Commercial multi-peril1,085 1,041 1,067 1,111 1,241 1,227 2,126 2,468 
Other21 2 43 13 16 (1)23 15 
Total Domestic4,235 4,066 4,153 4,120 4,718 4,640 8,301 9,358 
International267 307 217 270 439 535 574 974 
Total$4,502 $4,373 $4,370 $4,390 $5,157 $5,175 $8,875 $10,332 










See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
11
The Travelers Companies, Inc.
Segment Income - Bond & Specialty Insurance
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Revenues
Premiums$820 $851 $877 $870 $875 $911 $1,671 $1,786 
Net investment income59 64 65 70 73 78 123 151 
Other revenues4 4 6 6 5 7 8 12 
Total revenues883 919 948 946 953 996 1,802 1,949 
Claims and expenses
Claims and claim adjustment expenses354 331 334 359 380 366 685 746 
Amortization of deferred acquisition costs149 155 162 159 160 168 304 328 
General and administrative expenses141 148 148 153 165 173 289 338 
Total claims and expenses644 634 644 671 705 707 1,278 1,412 
Segment income before income taxes239 285 304 275 248 289 524 537 
Income tax expense22 57 62 54 41 59 79 100 
Segment income$217 $228 $242 $221 $207 $230 $445 $437 
Other statistics
Effective tax rate on net investment income15.1 %15.4 %15.6 %15.7 %16.5 %17.0 %15.3 %16.8 %
Net investment income (after-tax)$50 $55 $54 $59 $61 $65 $105 $126 
Catastrophes, net of reinsurance:
Pre-tax$1 $4 $11 $9 $5 $21 $5 $26 
After-tax$1 $3 $9 $7 $4 $17 $4 $21 
Prior year reserve development - favorable:
Pre-tax$35 $73 $63 $51 $58 $119 $108 $177 
After-tax$28 $57 $50 $40 $46 $93 $85 $139 












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

12
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance
image2.gif
($ in millions, net of tax)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Underwriting gain$165 $171 $185 $158 $143 $160 $336 $303 
Net investment income50 55 54 59 61 65 105 126 
Other income2 2 3 4 3 5 4 8 
Segment income$217 $228 $242 $221 $207 $230 $445 $437 
Combined ratio (1)
Loss and loss adjustment expense ratio42.8 %38.5 %37.3 %41.3 %43.0 %39.8 %40.7 %41.4 %
Underwriting expense ratio35.2 %35.5 %35.2 %35.6 %37.0 %37.3 %35.3 %37.1 %
Combined ratio78.0 %74.0 %72.5 %76.9 %80.0 %77.1 %76.0 %78.5 %
Impact on combined ratio:
Net favorable prior year reserve development(4.3)%(8.6)%(7.2)%(5.8)%(6.7)%(13.0)%(6.5)%(9.9)%
Catastrophes, net of reinsurance0.1 %0.4 %1.3 %1.0 %0.6 %2.3 %0.3 %1.5 %
Underlying combined ratio82.2 %82.2 %78.4 %81.7 %86.1 %87.8 %82.2 %86.9 %
(1) General and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Non-insurance general and administrative expenses$1 $1 $1 $2 $1 $1 $2 $2 

















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
13
The Travelers Companies, Inc.
Selected Statistics - Bond & Specialty Insurance
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Statutory underwriting      
Gross written premiums$1,009 $1,036 $1,043 $994 $1,010 $1,035 $2,045 $2,045 
Net written premiums$882 $962 $964 $924 $886 $964 $1,844 $1,850 
Net earned premiums$820 $851 $877 $870 $875 $911 $1,671 $1,786 
Losses and loss adjustment expenses351 328 328 359 376 363 679 739 
Underwriting expenses319 319 326 306 346 352 638 698 
Statutory underwriting gain150 204 223 205 153 196 354 349 
Policyholder dividends3 2 7 — 4 3 5 7 
Statutory underwriting gain after policyholder dividends$147 $202 $216 $205 $149 $193 $349 $342 
 




























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

14
The Travelers Companies, Inc.
Net Written Premiums - Bond & Specialty Insurance
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Net written premiums by market
Domestic
Management Liability$505 $533 $554 $520 $511 $541 $1,038 $1,052 
Surety257 287 284 253 257 293 544 550 
Total Domestic762 820 838 773 768 834 1,582 1,602 
International120 142 126 151 118 130 262 248 
Total$882 $962 $964 $924 $886 $964 $1,844 $1,850 
Net written premiums by product line
Domestic
Fidelity & surety$320 $346 $350 $313 $318 $350 $666 $668 
General liability389 419 424 407 399 425 808 824 
Other53 55 64 53 51 59 108 110 
Total Domestic762 820 838 773 768 834 1,582 1,602 
International120 142 126 151 118 130 262 248 
Total$882 $962 $964 $924 $886 $964 $1,844 $1,850 


















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

15
The Travelers Companies, Inc.
Segment Income (Loss) - Personal Insurance
image2.gif

($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Revenues
Premiums$3,123 $3,248 $3,385 $3,494 $3,502 $3,661 $6,371 $7,163 
Net investment income110 122 102 106 117 125 232 242 
Fee income7 7 8 8 7 8 14 15 
Other revenues21 18 22 22 23 25 39 48 
Total revenues3,261 3,395 3,517 3,630 3,649 3,819 6,656 7,468 
Claims and expenses
Claims and claim adjustment expenses2,171 2,774 2,795 2,829 2,672 3,565 4,945 6,237 
Amortization of deferred acquisition costs493 519 536 554 560 578 1,012 1,138 
General and administrative expenses345 352 333 332 359 361 697 720 
Total claims and expenses3,009 3,645 3,664 3,715 3,591 4,504 6,654 8,095 
Segment income (loss) before income taxes252 (250)(147)(85)58 (685)2 (627)
Income tax expense (benefit)27 (57)(36)(24)(25)(147)(30)(172)
Segment income (loss)$225 $(193)$(111)$(61)$83 $(538)$32 $(455)
Other statistics
Effective tax rate on net investment income15.9 %16.3 %15.4 %15.6 %16.3 %16.9 %16.1 %16.6 %
Net investment income (after-tax)$93 $101 $87 $90 $98 $103 $194 $201 
Catastrophes, net of reinsurance:
Pre-tax$80 $508 $285 $325 $331 $1,064 $588 $1,395 
After-tax$63 $400 $225 $257 $261 $841 $463 $1,102 
Prior year reserve development - favorable:
Pre-tax$5 $16 $18 $7 $28 $42 $21 $70 
After-tax$4 $13 $14 $5 $22 $34 $17 $56 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
16
The Travelers Companies, Inc.
Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance
image2.gif

($ in millions, net of tax)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Underwriting gain (loss)$119 $(305)$(212)$(165)$(30)$(657)$(186)$(687)
Net investment income93 101 87 90 98 103 194 201 
Other income13 11 14 14 15 16 24 31 
Segment income (loss)$225 $(193)$(111)$(61)$83 $(538)$32 $(455)
Combined ratio (1)
Loss and loss adjustment expense ratio69.5 %85.4 %82.6 %81.0 %76.3 %97.4 %77.6 %87.1 %
Underwriting expense ratio25.8 %25.8 %24.6 %24.3 %25.2 %24.6 %25.8 %24.9 %
Combined ratio95.3 %111.2 %107.2 %105.3 %101.5 %122.0 %103.4 %112.0 %
Impact on combined ratio:
Net favorable prior year reserve development(0.1)%(0.5)%(0.5)%(0.2)%(0.8)%(1.2)%(0.3)%(1.0)%
Catastrophes, net of reinsurance2.6 %15.6 %8.4 %9.3 %9.4 %29.1 %9.2 %19.5 %
Underlying combined ratio92.8 %96.1 %99.3 %96.2 %92.9 %94.1 %94.5 %93.5 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Billing and policy fees and other$24 $23 $23 $24 $24 $24 $47 $48 
Fee income$7 $7 $8 $8 $7 $8 $14 $15 
Non-insurance general and administrative expenses$3 $4 $4 $4 $5 $4 $7 $9 


 









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

17
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance
image2.gif

($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Statutory underwriting
Gross written premiums$3,126 $3,714 $3,905 $3,528 $3,509 $4,210 $6,840 $7,719 
Net written premiums$2,983 $3,685 $3,864 $3,515 $3,353 $4,179 $6,668 $7,532 
Net earned premiums$3,123 $3,248 $3,385 $3,494 $3,502 $3,661 $6,371 $7,163 
Losses and loss adjustment expenses2,171 2,774 2,795 2,829 2,672 3,565 4,945 6,237 
Underwriting expenses809 924 926 862 889 1,004 1,733 1,893 
Statutory underwriting gain (loss)$143 $(450)$(336)$(197)$(59)$(908)$(307)$(967)
Policies in force (in thousands)
Automobile3,212 3,243 3,283 3,278 3,248 3,225 3,243 3,225 
Homeowners and Other6,284 6,338 6,367 6,375 6,355 6,361 6,338 6,361 




























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

18
The Travelers Companies, Inc.
Net Written Premiums - Personal Insurance
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Net written premiums by product line
Domestic
Automobile$1,496 $1,629 $1,743 $1,614 $1,654 $1,823 $3,125 $3,477 
Homeowners and Other1,344 1,868 1,952 1,752 1,565 2,173 3,212 3,738 
Total Domestic2,840 3,497 3,695 3,366 3,219 3,996 6,337 7,215 
International143 188 169 149 134 183 331 317 
Total$2,983 $3,685 $3,864 $3,515 $3,353 $4,179 $6,668 $7,532 































See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
19
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Automobile
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Statutory underwriting
Gross written premiums$1,605 $1,755 $1,857 $1,717 $1,751 $1,946 $3,360 $3,697 
Net written premiums$1,591 $1,749 $1,849 $1,709 $1,741 $1,939 $3,340 $3,680 
Net earned premiums$1,568 $1,620 $1,679 $1,727 $1,723 $1,789 $3,188 $3,512 
Losses and loss adjustment expenses1,188 1,311 1,510 1,542 1,406 1,540 2,499 2,946 
Underwriting expenses382 408 408 387 409 432 790 841 
Statutory underwriting gain (loss)$(2)$(99)$(239)$(202)$(92)$(183)$(101)$(275)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio75.8 %80.9 %90.0 %89.3 %81.7 %86.0 %78.4 %83.9 %
Underwriting expense ratio23.5 %23.4 %22.2 %22.1 %23.0 %22.4 %23.5 %22.7 %
Combined ratio99.3 %104.3 %112.2 %111.4 %104.7 %108.4 %101.9 %106.6 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development0.3 %0.3 %0.4 %0.5 %0.4 %0.2 %0.3 %0.3 %
Catastrophes, net of reinsurance0.2 %2.2 %7.9 %0.4 %0.9 %4.7 %1.3 %2.9 %
Underlying combined ratio98.8 %101.8 %103.9 %110.5 %103.4 %103.5 %100.3 %103.4 %
Catastrophes, net of reinsurance:
Pre-tax$4 $35 $133 $7 $15 $85 $39 $100 
After-tax$3 $28 $105 $5 $11 $68 $31 $79 
Prior year reserve development - favorable (unfavorable):
Pre-tax$(4)$(6)$(8)$(8)$(7)$(4)$(10)$(11)
After-tax$(3)$(4)$(6)$(7)$(6)$(2)$(7)$(8)
Policies in force (in thousands)3,212 3,243 3,283 3,278 3,248 3,225 
Change from prior year quarter5.1 %4.7 %4.5 %3.1 %1.1 %(0.6)%
Change from prior quarter1.0 %1.0 %1.2 %(0.2)%(0.9)%(0.7)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Billing and policy fees and other$14 $14 $14 $14 $14 $14 $28 $28 
Fee income$4 $3 $4 $5 $4 $4 $7 $8 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
20
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Homeowners and Other
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Statutory underwriting
Gross written premiums$1,521 $1,959 $2,048 $1,811 $1,758 $2,264 $3,480 $4,022 
Net written premiums$1,392 $1,936 $2,015 $1,806 $1,612 $2,240 $3,328 $3,852 
Net earned premiums$1,555 $1,628 $1,706 $1,767 $1,779 $1,872 $3,183 $3,651 
Losses and loss adjustment expenses983 1,463 1,285 1,287 1,266 2,025 2,446 3,291 
Underwriting expenses427 516 518 475 480 572 943 1,052 
Statutory underwriting gain (loss)$145 $(351)$(97)$5 $33 $(725)$(206)$(692)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio63.2 %89.9 %75.4 %72.8 %71.2 %108.2 %76.8 %90.1 %
Underwriting expense ratio28.0 %28.1 %26.9 %26.6 %27.3 %26.9 %28.1 %27.1 %
Combined ratio91.2 %118.0 %102.3 %99.4 %98.5 %135.1 %104.9 %117.2 %
Impact on combined ratio:
Net favorable prior year reserve development(0.6)%(1.3)%(1.5)%(0.8)%(2.0)%(2.4)%(1.0)%(2.2)%
Catastrophes, net of reinsurance4.9 %29.0 %8.9 %18.0 %17.8 %52.3 %17.3 %35.4 %
Underlying combined ratio86.9 %90.3 %94.9 %82.2 %82.7 %85.2 %88.6 %84.0 %
Catastrophes, net of reinsurance:
Pre-tax$76 $473 $152 $318 $316 $979 $549 $1,295 
After-tax$60 $372 $120 $252 $250 $773 $432 $1,023 
Prior year reserve development - favorable:
Pre-tax$9 $22 $26 $15 $35 $46 $31 $81 
After-tax$7 $17 $20 $12 $28 $36 $24 $64 
Policies in force (in thousands)6,284 6,338 6,367 6,375 6,355 6,361 
Change from prior year quarter5.7 %4.3 %3.2 %2.3 %1.1 %0.4 %
Change from prior quarter0.9 %0.9 %0.5 %0.1 %(0.3)%0.1 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Billing and policy fees and other$10 $9 $9 $10 $10 $10 $19 $20 
Fee income$3 $4 $4 $3 $3 $4 $7 $7 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
21
The Travelers Companies, Inc.
Interest Expense and Other
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Revenues
Other revenues$— $— $— $— $— $— $— $— 
Claims and expenses
Interest expense87 88 88 88 88 92 175 180 
General and administrative expenses8 9 8 6 9 10 17 19 
Total claims and expenses95 97 96 94 97 102 192 199 
Loss before income tax benefit(95)(97)(96)(94)(97)(102)(192)(199)
Income tax benefit(21)(21)(20)(19)(21)(23)(42)(44)
Loss$(74)$(76)$(76)$(75)$(76)$(79)$(150)$(155)




























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

22
The Travelers Companies, Inc.
Consolidated Balance Sheet
image2.gif
($ and shares in millions)June 30,
2023		December 31,
2022
Assets
Fixed maturities, available for sale, at fair value (amortized cost $79,027 and $77,380; allowance for expected credit losses of $4 and $3)
$73,212 $71,160 
Equity securities, at fair value (cost $548 and $747)
587 807 
Real estate investments953 952 
Short-term securities3,892 3,470 
Other investments4,329 4,065 
Total investments82,973 80,454 
Cash605 799 
Investment income accrued649 650 
Premiums receivable (net of allowance for expected credit losses of $72 and $77)
10,327 8,922 
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $121 and $132)
8,121 8,063 
Ceded unearned premiums1,302 1,024 
Deferred acquisition costs3,212 2,836 
Deferred taxes1,846 1,877 
Contractholder receivables (net of allowance for expected credit losses of $20 and $17)
3,449 3,579 
Goodwill3,975 3,952 
Other intangible assets283 287 
Other assets3,831 3,274 
Total assets$120,573 $115,717 
Liabilities
Claims and claim adjustment expense reserves$60,571 $58,649 
Unearned premium reserves20,214 18,240 
Contractholder payables3,469 3,596 
Payables for reinsurance premiums726 419 
Debt8,031 7,292 
Other liabilities5,707 5,961 
Total liabilities98,718 94,157 
Shareholders’ equity
Common stock (1,750.0 shares authorized; 228.9 and 232.1 shares issued and outstanding)
24,776 24,565 
Retained earnings44,026 43,516 
Accumulated other comprehensive loss(6,009)(6,445)
Treasury stock, at cost (558.2 and 553.5 shares)
(40,938)(40,076)
Total shareholders’ equity21,855 21,560 
Total liabilities and shareholders’ equity$120,573 $115,717 


23
The Travelers Companies, Inc.
Investment Portfolio
image2.gif
(at carrying value, $ in millions)June 30,
2023		Pre-tax Book
Yield (1)		December 31,
2022		Pre-tax Book
Yield (1)
Investment portfolio
Taxable fixed maturities$47,875 3.20 %$43,664 2.94 %
Tax-exempt fixed maturities25,337 2.93 %27,496 2.91 %
Total fixed maturities73,212 3.11 %71,160 2.93 %
Non-redeemable preferred stocks46 2.26 %44 2.24 %
Common stocks541 763 
Total equity securities587 807 
Real estate investments953 952 
Short-term securities3,892 5.22 %3,470 4.38 %
Private equities2,833 2,785 
Hedge funds232 225 
Real estate partnerships848 862 
Other investments416 193 
Total other investments4,329 4,065 
Total investments$82,973 $80,454 
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity$(4,576)$(4,898)

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





24
The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
image2.gif
(at carrying value, $ in millions)June 30,
2023		December 31,
2022
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies$6,074 $5,438 
Obligations of U.S. states and political subdivisions:
Pre-refunded1,596 2,339 
All other27,833 29,040 
Total29,429 31,379 
Debt securities issued by foreign governments1,028 994 
Mortgage-backed securities - principally obligations of U.S. Government agencies4,252 1,991 
Corporate and all other bonds32,429 31,358 
Total fixed maturities$73,212 $71,160 
Fixed Maturities
Quality Characteristics (1)
June 30, 2023December 31, 2022
Amount% of TotalAmount% of Total
Quality Ratings
Aaa$33,140 45.3 %$31,688 44.6 %
Aa16,026 21.9 16,217 22.8 
A13,936 19.0 13,333 18.7 
Baa9,151 12.5 8,992 12.6 
Total investment grade72,253 98.7 70,230 98.7 
Ba577 0.8 580 0.8 
B312 0.4 281 0.4 
Caa and lower70 0.1 69 0.1 
Total below investment grade959 1.3 930 1.3 
Total fixed maturities$73,212 100.0 %$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 purchases4.4 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.
25
The Travelers Companies, Inc.
Investment Income
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Gross investment income
Fixed maturities$505 $512 $534 $562 $575 $591 $1,017 $1,166 
Short-term securities2 9 23 39 47 55 11 102 
Other142 197 46 34 53 78 339 131 
649 718 603 635 675 724 1,367 1,399 
Investment expenses12 11 10 10 12 12 23 24 
Net investment income, pre-tax637 707 593 625 663 712 1,344 1,375 
Income taxes98 112 88 94 106 118 210 224 
Net investment income, after-tax$539 $595 $505 $531 $557 $594 $1,134 $1,151 
Effective tax rate15.4 %15.8 %14.8 %15.1 %16.0 %16.5 %15.6 %16.3 %
Average invested assets (1)$86,345$86,660$87,315$88,242$88,740$89,536$86,519$89,208
Average yield pre-tax (1)2.9 %3.3 %2.7 %2.8 %3.0 %3.2 %3.1 %3.1 %
Average yield after-tax2.5 %2.7 %2.3 %2.4 %2.5 %2.7 %2.6 %2.6 %

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

26
The Travelers Companies, Inc.
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity
image2.gif

($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Net realized investment gains (losses)
Fixed maturities$2 $(21)$(42)$(37)$(11)$(22)$(19)$(33)
Equity securities (19)(64)(26)40 18 (19)(83)(1)
Other (6)(10)(25)4 (1)6 (16)5 
Realized investment gains (losses) before tax(23)(95)(93)7 6 (35)(118)(29)
Related taxes(4)(21)(21)(2)1 (6)(25)(5)
Net realized investment gains (losses)$(19)$(74)$(72)$9 $5 $(29)$(93)$(24)
Gross investment gains$13 $16 $15 $69 $46 $17 $29 $63 
Gross investment losses before impairments(35)(91)(94)(59)(39)(52)(126)(91)
Net investment gains (losses) before impairments(22)(75)(79)10 7 (35)(97)(28)
Net impairment (charges) recoveries(1)(20)(14)(3)(1)— (21)(1)
Net realized investment gains (losses) before tax(23)(95)(93)7 6 (35)(118)(29)
Related taxes(4)(21)(21)(2)1 (6)(25)(5)
Net realized investment gains (losses)$(19)$(74)$(72)$9 $5 $(29)$(93)$(24)
($ in millions)March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022		March 31,
2023		June 30,
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)
Other (2)(3)(3)(3)(3)(4)
Unrealized investment gains (losses) before tax(1,770)(4,817)(8,021)(6,220)(4,912)(5,815)
Related taxes (379)(1,025)(1,704)(1,322)(1,044)(1,239)
Balance, end of period$(1,391)$(3,792)$(6,317)$(4,898)$(3,868)$(4,576)




27
The Travelers Companies, Inc.
Reinsurance Recoverables
image2.gif
($ in millions)June 30, 2023December 31, 2022
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$3,805 $3,792 
Gross structured settlements (2)2,767 2,802 
Mandatory pools and associations (3) 1,670 1,601 
Gross reinsurance recoverables (4)8,242 8,195 
Allowance for estimated uncollectible reinsurance (5)(121)(132)
Net reinsurance recoverables$8,121 $8,063 
(1)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:
ReinsurerA.M. Best Rating of Group's Predominant ReinsurerJune 30, 2023
Swiss Re GroupA+ second highest of 16 ratings$627 
Berkshire HathawayA++ highest of 16 ratings481 
Munich Re GroupA+ second highest of 16 ratings313 
Axa GroupA+ second highest of 16 ratings158 
PartnerRe GroupA+ second highest of 16 ratings130 
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:
GroupA.M. Best Rating of Group's Predominant InsurerJune 30, 2023
Fidelity & Guaranty Life Group  A- fourth highest of 16 ratings$688 
Genworth Financial Group B- eighth highest of 16 ratings328 
John Hancock Group A+ second highest of 16 ratings247 
Symetra Financial CorporationA third highest of 16 ratings212 
Brighthouse Financial, Inc.A third highest of 16 ratings197 


(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 June 30, 2023, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.70 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. 
28
The Travelers Companies, Inc.
Net Reserves for Losses and Loss Adjustment Expense
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
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 $38,233 $39,027 
Incurred2,472 2,656 2,911 2,682 2,858 3,251 5,128 6,109 
Paid(2,242)(2,411)(2,516)(2,631)(2,620)(2,657)(4,653)(5,277)
Foreign exchange and other(13)(77)(108)71 14 35 (90)49 
End of period$38,450 $38,618 $38,905 $39,027 $39,279 $39,908 $38,618 $39,908 
Bond & Specialty Insurance
Beginning of period$3,938 $4,079 $4,118 $4,042 $4,167 $4,318 $3,938 $4,167 
Incurred351 328 328 359 376 363 679 739 
Paid(197)(242)(345)(282)(238)(256)(439)(494)
Foreign exchange and other(13)(47)(59)48 13 23 (60)36 
End of period$4,079 $4,118 $4,042 $4,167 $4,318 $4,448 $4,118 $4,448 
Personal Insurance
Beginning of period$6,418 $6,498 $6,940 $7,192 $7,568 $7,567 $6,418 $7,568 
Incurred2,171 2,774 2,795 2,829 2,672 3,565 4,945 6,237 
Paid(2,103)(2,306)(2,486)(2,467)(2,674)(2,863)(4,409)(5,537)
Foreign exchange and other12 (26)(57)14 1 18 (14)19 
End of period$6,498 $6,940 $7,192 $7,568 $7,567 $8,287 $6,940 $8,287 
Total
Beginning of period$48,589 $49,027 $49,676 $50,139 $50,762 $51,164 $48,589 $50,762 
Incurred4,994 5,758 6,034 5,870 5,906 7,179 10,752 13,085 
Paid(4,542)(4,959)(5,347)(5,380)(5,532)(5,776)(9,501)(11,308)
Foreign exchange and other(14)(150)(224)133 28 76 (164)104 
End of period$49,027 $49,676 $50,139 $50,762 $51,164 $52,643 $49,676 $52,643 
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos$— $— $212 $— $— $— $— $— 
All other(113)(202)(151)(127)(19)101 (315)82 
Total Business Insurance (1)(113)(202)61 (127)(19)101 (315)82 
Bond & Specialty Insurance(35)(73)(63)(51)(58)(119)(108)(177)
Personal Insurance(5)(16)(18)(7)(28)(42)(21)(70)
Total$(153)$(291)$(20)$(185)$(105)$(60)$(444)$(165)
(1)  Excludes accretion of discount.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
29
The Travelers Companies, Inc.
Asbestos Reserves
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Asbestos reserves
Beginning reserves:
Gross$1,687 $1,635 $1,547 $1,765 $1,674 $1,620 $1,687 $1,674 
Ceded(346)(331)(322)(372)(369)(348)(346)(369)
Net1,341 1,304 1,225 1,393 1,305 1,272 1,341 1,305 
Incurred losses and loss expenses:
Gross— — 287 — — — — — 
Ceded— — (75)— — — — — 
Paid loss and loss expenses:
Gross52 85 68 93 54 69 137 123 
Ceded(16)(8)(25)(4)(21)(13)(24)(34)
Foreign exchange and other:
Gross— (3)(1)2 — 1 (3)1 
Ceded(1)1 — (1)— 1 — 1 
Ending reserves:
Gross1,635 1,547 1,765 1,674 1,620 1,552 1,547 1,552 
Ceded(331)(322)(372)(369)(348)(334)(322)(334)
Net$1,304 $1,225 $1,393 $1,305 $1,272 $1,218 $1,225 $1,218 





















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
image2.gif
($ in millions)June 30,
2023		December 31,
2022
Debt
Short-term debt
Commercial paper$100 $100 
Total short-term debt100 100 
Long-term debt
7.75% Senior notes due April 15, 2026200 200 
7.625% Junior subordinated debentures due December 15, 2027125 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, 204556 56 
3.75% Senior notes due May 15, 2046 (1)500 500 
8.312% Junior subordinated debentures due July 1, 204673 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 debt8,004 7,254 
Unamortized fair value adjustment37 38 
Unamortized debt issuance costs(110)(100)
7,931 7,192 
Total debt8,031 7,292 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)26,431 26,458 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$34,462 $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.
31
The Travelers Companies, Inc.
Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation
image2.gif
($ in millions)June 30,
2023 (1)		December 31,
2022
Statutory capital and surplus$22,934 $23,677 
GAAP adjustments
Goodwill and intangible assets3,660 3,551 
Investments(5,104)(5,893)
Noninsurance companies(4,557)(4,412)
Deferred acquisition costs3,161 2,836 
Deferred federal income tax490 630 
Current federal income tax(3)(2)
Reinsurance recoverables65 65 
Furniture, equipment & software825 742 
Agents balances175 156 
Other209 210 
Total GAAP adjustments(1,079)(2,117)
GAAP shareholders’ equity$21,855 $21,560 

(1) Estimated and Preliminary
 




















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
32
The Travelers Companies, Inc.
Statement of Cash Flows
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($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Cash flows from operating activities
Net income (loss)$1,018 $551 $454 $819 $975 $(14)$1,569 $961 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized investment (gains) losses23 95 93 (7)(6)35 118 29 
Depreciation and amortization234 210 195 187 204 179 444 383 
Deferred federal income tax expense (benefit)40 (68)(102)(56)32 (96)(28)(64)
Amortization of deferred acquisition costs1,310 1,365 1,406 1,434 1,462 1,519 2,675 2,981 
Equity in income from other investments(118)(177)(24)(17)(30)(55)(295)(85)
Premiums receivable(509)(562)210 (16)(557)(832)(1,071)(1,389)
Reinsurance recoverables(282)198 269 159 (24)(17)(84)(41)
Deferred acquisition costs(1,413)(1,504)(1,502)(1,405)(1,629)(1,722)(2,917)(3,351)
Claims and claim adjustment expense reserves679 593 422 356 381 1,413 1,272 1,794 
Unearned premium reserves727 671 635 (171)893 1,042 1,398 1,935 
Other(443)3 428 57 (689)97 (440)(592)
Net cash provided by operating activities1,266 1,375 2,484 1,340 1,012 1,549 2,641 2,561 
Cash flows from investing activities
Proceeds from maturities of fixed maturities1,879 1,818 1,784 1,356 1,538 1,493 3,697 3,031 
Proceeds from sales of investments:
Fixed maturities1,044 1,657 1,250 1,706 2,364 751 2,701 3,115 
Equity securities63 21 20 34 28 62 84 90 
Real estate investments— — 10 — — — — — 
Other investments81 92 69 60 64 36 173 100 
Purchases of investments:
Fixed maturities(4,409)(3,589)(4,102)(3,808)(4,335)(3,328)(7,998)(7,663)
Equity securities(63)(23)(26)(24)(34)(16)(86)(50)
Real estate investments(9)(7)(12)(13)(14)(12)(16)(26)
Other investments(135)(117)(162)(160)(139)(116)(252)(255)
Net sales (purchases) of short-term securities367 (110)(364)462 228 (646)257 (418)
Securities transactions in the course of settlement613 (377)(22)(193)(35)50 236 15 
Acquisition, net of cash acquired(4)— — — — — (4)— 
Other(84)(75)(132)(94)(120)(131)(159)(251)
Net cash used in investing activities(657)(710)(1,687)(674)(455)(1,857)(1,367)(2,312)

33
The Travelers Companies, Inc.
Statement of Cash Flows (Continued)
image2.gif
($ in millions)1Q20222Q20223Q20224Q20221Q20232Q2023YTD 2Q2022YTD 2Q2023
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations(500)(500)(500)(500)(398)(396)(1,000)(794)
Treasury stock acquired - net employee share-based compensation(59)— (1)(1)(62)— (59)(62)
Dividends paid to shareholders(213)(223)(220)(219)(215)(232)(436)(447)
Issuance of debt— — — — — 738 — 738 
Issuance of common stock - employee share options159 35 11 62 82 28 194 110 
Net cash provided by (used in) financing activities(613)(688)(710)(658)(593)138 (1,301)(455)
Effect of exchange rate changes on cash(5)(19)(24)18 4 8 (24)12 
Net increase (decrease) in cash(9)(42)63 26 (32)(162)(51)(194)
Cash at beginning of period761 752 710 773 799 767 761 799 
Cash at end of period$752 $710 $773 $799 $767 $605 $710 $605 
Income taxes paid (received)$10 $542 $111 $154 $(16)$155 $552 $139 
Interest paid$59 $115 $60 $115 $60 $115 $174 $175 

34
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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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, 2022June 30, 2022September 30, 2022December 31, 2022March 31, 2023June 30, 2023
Shareholders’ equity$25,531 $22,874 $19,906 $21,560 $23,052 $21,855 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity1,391 3,792 6,317 4,898 3,868 4,576 
Net realized investment (gains) losses, net of tax19 93 165 156 (5)24 
Adjusted shareholders’ equity$26,941 $26,759 $26,388 $26,614 $26,915 $26,455 
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.
 
35
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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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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