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The Travelers Companies, Inc.
Financial Supplement - Fourth Quarter 2022
Exhibit 99.2 image2a.gif
Page Number
Consolidated Results
Financial Highlights1
Reconciliation to Net Income and Earnings Per Share2
Statement of Income 3
Net Income 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-K 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)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Net income$733 $934 $662 $1,333 $1,018 $551 $454 $819 $3,662 $2,842 
Net income per share:
Basic$2.89 $3.70 $2.65 $5.43 $4.20 $2.29 $1.91 $3.49 $14.63 $11.91 
Diluted$2.87 $3.66 $2.62 $5.37 $4.15 $2.27 $1.89 $3.44 $14.49 $11.77 
Core income$699 $879 $655 $1,289 $1,037 $625 $526 $810 $3,522 $2,998 
Core income per share:
Basic$2.75 $3.48 $2.63 $5.25 $4.27 $2.60 $2.22 $3.45 $14.07 $12.56 
Diluted$2.73 $3.45 $2.60 $5.20 $4.22 $2.57 $2.20 $3.40 $13.94 $12.42 
Return on equity10.2 %13.0 %9.2 %18.6 %15.0 %9.1 %8.5 %15.8 %12.7 %12.2 %
Core return on equity11.1 %13.7 %10.1 %19.8 %15.5 %9.3 %7.9 %12.3 %13.7 %11.3 %
Total assets, at period end$117,032 $119,759 $120,706 $120,466 $118,592 $116,587 $114,317 $115,717 $120,466 $115,717 
Total equity, at period end$28,269 $29,156 $28,474 $28,887 $25,531 $22,874 $19,906 $21,560 $28,887 $21,560 
Book value per share, at period end$112.42 $116.86 $115.74 $119.77 $106.40 $96.39 $84.94 $92.90 $119.77 $92.90 
Less: Net unrealized investment gains (losses), net of tax11.21 12.98 10.97 10.01 (5.79)(15.98)(26.96)(21.10)10.01 (21.10)
Adjusted book value per share, at period end$101.21 $103.88 $104.77 $109.76 $112.19 $112.37 $111.90 $114.00 $109.76 $114.00 
Weighted average number of common shares outstanding (basic)252.1 250.7 247.7 243.8 240.9 238.4 235.4 233.2 248.5 237.0 
Weighted average number of common shares outstanding and common stock equivalents (diluted)254.1 253.1 250.1 246.4 243.7 241.1 237.9 236.3 250.8 239.7 
Common shares outstanding at period end251.5 249.5 246.0 241.2 240.0 237.3 234.3 232.1 241.2 232.1 
Common stock dividends declared$216 $224 $220 $216 $214 $225 $221 $220 $876 $880 
Common stock repurchased:
Under Board of Directors authorization
Shares2.4 2.6 3.8 5.1 2.9 2.9 3.1 2.7 13.9 11.6 
Cost$356 $400 $600 $800 $500 $500 $500 $500 $2,156 $2,000 
Other
Shares0.3 — — — 0.4 — — — 0.3 0.4 
Cost$41 $1 $1 $1 $59 $— $1 $1 $44 $61 




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 and Earnings per Share
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($ and shares in millions, except earnings per share)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Net income
Net income$733 $934 $662 $1,333 $1,018 $551 $454 $819 $3,662 $2,842 
Adjustments:
Net realized investment (gains) losses, after-tax(34)(47)(7)(44)19 74 72 (9)(132)156 
Impact of changes in tax laws and/or tax rates (1)— (8)— — — — — — (8)— 
Core income $699 $879 $655 $1,289 $1,037 $625 $526 $810 $3,522 $2,998 
Basic earnings per share
Net income $2.89 $3.70 $2.65 $5.43 $4.20 $2.29 $1.91 $3.49 $14.63 $11.91 
Adjustments:
Net realized investment (gains) losses, after-tax(0.14)(0.19)(0.02)(0.18)0.07 0.31 0.31 (0.04)(0.53)0.65 
Impact of changes in tax laws and/or tax rates (1)— (0.03)— — — — — — (0.03)— 
Core income $2.75 $3.48 $2.63 $5.25 $4.27 $2.60 $2.22 $3.45 $14.07 $12.56 
Diluted earnings per share
Net income $2.87 $3.66 $2.62 $5.37 $4.15 $2.27 $1.89 $3.44 $14.49 $11.77 
Adjustments:
Net realized investment (gains) losses, after-tax(0.14)(0.18)(0.02)(0.17)0.07 0.30 0.31 (0.04)(0.52)0.65 
Impact of changes in tax laws and/or tax rates (1)— (0.03)— — — — — — (0.03)— 
Core income $2.73 $3.45 $2.60 $5.20 $4.22 $2.57 $2.20 $3.40 $13.94 $12.42 
Adjustments to net income and weighted average shares for net income EPS calculations: (2)
Basic and Diluted1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Net income, as reported$733 $934 $662 $1,333 $1,018 $551 $454 $819 $3,662 $2,842 
Participating share-based awards - allocated income(5)(7)(5)(10)(7)(4)(4)(5)(27)(20)
Net income available to common shareholders - basic and diluted$728 $927 $657 $1,323 $1,011 $547 $450 $814 $3,635 $2,822 
Common Shares
Basic
Weighted average shares outstanding252.1 250.7 247.7 243.8 240.9 238.4 235.4 233.2 248.5 237.0 
Diluted
Weighted average shares outstanding252.1 250.7 247.7 243.8 240.9 238.4 235.4 233.2 248.5 237.0 
Weighted average effects of dilutive securities - stock options and performance shares2.0 2.4 2.4 2.6 2.8 2.7 2.5 3.1 2.3 2.7 
Diluted weighted average shares outstanding254.1 253.1 250.1 246.4 243.7 241.1 237.9 236.3 250.8 239.7 
(1) Impact is recognized in the accounting period in which the change is enacted.
(2)  Adjustments to net income and weighted average shares for net income EPS calculations can generally be used for the core income EPS calculations.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
2
The Travelers Companies, Inc.
Statement of Income - Consolidated
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($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Revenues
Premiums$7,386 $7,616 $7,829 $8,024 $8,014 $8,317 $8,615 $8,817 $30,855 $33,763 
Net investment income701 818 771 743 637 707 593 625 3,033 2,562 
Fee income101 104 97 100 103 100 104 105 402 412 
Net realized investment gains (losses)44 61 8 58 (23)(95)(93)7 171 (204)
Other revenues81 88 100 86 78 107 84 82 355 351 
Total revenues8,313 8,687 8,805 9,011 8,809 9,136 9,303 9,636 34,816 36,884 
Claims and expenses
Claims and claim adjustment expenses4,970 5,045 5,464 4,819 5,039 5,803 6,088 5,924 20,298 22,854 
Amortization of deferred acquisition costs1,207 1,254 1,281 1,301 1,310 1,365 1,406 1,434 5,043 5,515 
General and administrative expenses1,163 1,174 1,187 1,153 1,191 1,223 1,193 1,203 4,677 4,810 
Interest expense82 83 87 88 87 88 88 88 340 351 
Total claims and expenses7,422 7,556 8,019 7,361 7,627 8,479 8,775 8,649 30,358 33,530 
Income before income taxes891 1,131 786 1,650 1,182 657 528 987 4,458 3,354 
Income tax expense 158 197 124 317 164 106 74 168 796 512 
Net income $733 $934 $662 $1,333 $1,018 $551 $454 $819 $3,662 $2,842 
Other statistics
Effective tax rate on net investment income15.9 %16.7 %16.3 %16.0 %15.4 %15.8 %14.8 %15.1 %16.2 %15.3 %
Net investment income (after-tax)$590 $682 $645 $624 $539 $595 $505 $531 $2,541 $2,170 
Catastrophes, net of reinsurance:
Pre-tax$835 $475 $501 $36 $160 $746 $512 $459 $1,847 $1,877 
After-tax$659 $376 $395 $29 $127 $587 $404 $362 $1,459 $1,480 
Prior year reserve development - favorable (unfavorable):
Pre-tax$317 $182 $(56)$95 $153 $291 $20 $185 $538 $649 
After-tax$249 $144 $(44)$75 $122 $229 $16 $145 $424 $512 





See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3
The Travelers Companies, Inc.
Net Income by Major Component and Combined Ratio - Consolidated
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($ in millions, net of tax)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Underwriting gain $166 $253 $68 $729 $575 $86 $90 $354 $1,216 $1,105 
Net investment income590 682 645 624 539 595 505 531 2,541 2,170 
Other income (expense), including interest expense(57)(56)(58)(64)(77)(56)(69)(75)(235)(277)
Core income 699 879 655 1,289 1,037 625 526 810 3,522 2,998 
Net realized investment gains (losses)34 47 7 44 (19)(74)(72)9 132 (156)
Impact of changes in tax laws and/or tax rates (1)— 8 — — — — — — 8 — 
Net income $733 $934 $662 $1,333 $1,018 $551 $454 $819 $3,662 $2,842 
Combined ratio (2) (3)
Loss and loss adjustment expense ratio66.7 %65.6 %69.2 %59.5 %62.3 %69.3 %70.1 %66.6 %65.1 %67.1 %
Underwriting expense ratio29.9 %29.7 %29.4 %28.5 %29.0 %29.0 %28.1 %27.9 %29.4 %28.5 %
Combined ratio96.6 %95.3 %98.6 %88.0 %91.3 %98.3 %98.2 %94.5 %94.5 %95.6 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(4.2)%(2.4)%0.8 %(1.2)%(1.9)%(3.5)%(0.2)%(2.1)%(1.8)%(1.9)%
Catastrophes, net of reinsurance11.3 %6.3 %6.4 %0.5 %2.0 %9.0 %5.9 %5.2 %6.0 %5.5 %
Underlying combined ratio89.5 %91.4 %91.4 %88.7 %91.2 %92.8 %92.5 %91.4 %90.3 %92.0 %
(1)  Impact is recognized in the accounting period in which the change is enacted.
(2)  Before policyholder dividends.
(3)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Billing and policy fees and other$27 $27 $27 $26 $27 $27 $27 $28 $107 $109 
Fee income:
Loss and loss adjustment expenses$38 $39 $36 $37 $35 $39 $38 $39 $150 $151 
Underwriting expenses63 65 61 63 68 61 66 66 252 261 
Total fee income$101 $104 $97 $100 $103 $100 $104 $105 $402 $412 
Non-insurance general and administrative expenses$70 $77 $81 $75 $82 $87 $83 $88 $303 $340 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Revenues
Premiums$7,386 $7,616 $7,829 $8,024 $8,014 $8,317 $8,615 $8,817 $30,855 $33,763 
Net investment income701 818 771 743 637 707 593 625 3,033 2,562 
Fee income101 104 97 100 103 100 104 105 402 412 
Other revenues81 88 100 86 78 107 84 82 355 351 
Total revenues
8,269 8,626 8,797 8,953 8,832 9,231 9,396 9,629 34,645 37,088 
Claims and expenses
Claims and claim adjustment expenses4,970 5,045 5,464 4,819 5,039 5,803 6,088 5,924 20,298 22,854 
Amortization of deferred acquisition costs1,207 1,254 1,281 1,301 1,310 1,365 1,406 1,434 5,043 5,515 
General and administrative expenses1,163 1,174 1,187 1,153 1,191 1,223 1,193 1,203 4,677 4,810 
Interest expense82 83 87 88 87 88 88 88 340 351 
Total claims and expenses
7,422 7,556 8,019 7,361 7,627 8,479 8,775 8,649 30,358 33,530 
Core income before income taxes847 1,070 778 1,592 1,205 752 621 980 4,287 3,558 
Income tax expense 148 191 123 303 168 127 95 170 765 560 
Core income $699 $879 $655 $1,289 $1,037 $625 $526 $810 $3,522 $2,998 
Other statistics
Effective tax rate on net investment income15.9 %16.7 %16.3 %16.0 %15.4 %15.8 %14.8 %15.1 %16.2 %15.3 %
Net investment income (after-tax)$590 $682 $645 $624 $539 $595 $505 $531 $2,541 $2,170 
Catastrophes, net of reinsurance:
Pre-tax$835 $475 $501 $36 $160 $746 $512 $459 $1,847 $1,877 
After-tax$659 $376 $395 $29 $127 $587 $404 $362 $1,459 $1,480 
Prior year reserve development - favorable (unfavorable):
Pre-tax$317 $182 $(56)$95 $153 $291 $20 $185 $538 $649 
After-tax$249 $144 $(44)$75 $122 $229 $16 $145 $424 $512 









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)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Statutory underwriting
Gross written premiums$8,407 $8,597 $8,876 $8,364 $9,283 $9,536 $9,812 $9,245 $34,244 $37,876 
Net written premiums$7,505 $8,135 $8,324 $8,002 $8,367 $9,020 $9,198 $8,829 $31,966 $35,414 
Net earned premiums$7,386 $7,616 $7,829 $8,029 $8,016 $8,316 $8,615 $8,817 $30,860 $33,764 
Losses and loss adjustment expenses4,920 5,003 5,415 4,773 4,994 5,758 6,034 5,870 20,111 22,656 
Underwriting expenses2,276 2,361 2,385 2,269 2,441 2,568 2,533 2,450 9,291 9,992 
Statutory underwriting gain (loss) 190 252 29 987 581 (10)48 497 1,458 1,116 
Policyholder dividends11 10 10 10 11 6 14 9 41 40 
Statutory underwriting gain (loss) after policyholder dividends$179 $242 $19 $977 $570 $(16)$34 $488 $1,417 $1,076 
Other statutory statistics
Reserves for losses and loss adjustment expenses$47,153 $47,893 $48,662 $48,589 $49,027 $49,676 $50,139 $50,762 $48,589 $50,762 
Increase (decrease) in reserves$906 $740 $769 $(73)$438 $649 $463 $623 $2,342 $2,173 
Statutory capital and surplus$22,403 $22,797 $22,987 $23,906 $24,168 $23,776 $23,375 $23,677 $23,906 $23,677 
Net written premiums/surplus (1)1.33:11.35:11.36:11.34:11.36:1 1.42:1 1.48:1 1.50:1 1.34:11.50:1

(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)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Written premiums
Gross$8,407 $8,597 $8,876 $8,364 $9,283 $9,536 $9,812 $9,245 $34,244 $37,876 
Ceded(902)(462)(552)(369)(916)(516)(614)(416)(2,285)(2,462)
Net$7,505 $8,135 $8,324 $7,995 $8,367 $9,020 $9,198 $8,829 $31,959 $35,414 
Earned premiums
Gross$7,895 $8,164 $8,376 $8,574 $8,565 $8,897 $9,216 $9,415 $33,009 $36,093 
Ceded(509)(548)(547)(550)(551)(580)(601)(598)(2,154)(2,330)
Net$7,386 $7,616 $7,829 $8,024 $8,014 $8,317 $8,615 $8,817 $30,855 $33,763 






























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)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Revenues
Premiums$3,799 $3,880 $3,970 $4,085 $4,071 $4,218 $4,353 $4,453 $15,734 $17,095 
Net investment income523 615 575 552 468 521 426 449 2,265 1,864 
Fee income95 97 90 93 96 93 96 97 375 382 
Other revenues53 57 69 56 53 85 56 54 235 248 
Total revenues
4,470 4,649 4,704 4,786 4,688 4,917 4,931 5,053 18,609 19,589 
Claims and expenses
Claims and claim adjustment expenses2,788 2,539 2,703 2,368 2,514 2,698 2,959 2,736 10,398 10,907 
Amortization of deferred acquisition costs627 642 653 659 668 691 708 721 2,581 2,788 
General and administrative expenses683 688 684 691 697 714 704 712 2,746 2,827 
Total claims and expenses
4,098 3,869 4,040 3,718 3,879 4,103 4,371 4,169 15,725 16,522 
Segment income before income taxes372 780 664 1,068 809 814 560 884 2,884 3,067 
Income tax expense 55 137 106 201 140 148 89 159 499 536 
Segment income $317 $643 $558 $867 $669 $666 $471 $725 $2,385 $2,531 
Other statistics
Effective tax rate on net investment income15.8 %16.7 %16.3 %16.0 %15.3 %15.8 %14.6 %14.9 %16.2 %15.2 %
Net investment income (after-tax)$441 $511 $481 $464 $396 $439 $364 $382 $1,897 $1,581 
Catastrophes, net of reinsurance:
Pre-tax$506 $149 $181 $(43)$79 $234 $216 $125 $793 $654 
After-tax$399 $119 $143 $(34)$63 $184 $170 $98 $627 $515 
Prior year reserve development - favorable (unfavorable):
Pre-tax$134 $73 $(108)$74 $113 $202 $(61)$127 $173 $381 
After-tax$105 $58 $(86)$58 $90 $159 $(48)$100 $135 $301 












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
image2a.gif


($ in millions, net of tax)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Underwriting gain (loss)$(116)$137 $80 $412 $291 $220 $117 $361 $513 $989 
Net investment income441 511 481 464 396 439 364 382 1,897 1,581 
Other income (expense)(8)(5)(3)(9)(18)7 (10)(18)(25)(39)
Segment income$317 $643 $558 $867 $669 $666 $471 $725 $2,385 $2,531 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio72.2 %64.3 %67.0 %56.9 %60.7 %63.0 %66.9 %60.4 %65.0 %62.8 %
Underwriting expense ratio31.3 %31.0 %30.5 %30.1 %30.2 %30.2 %29.4 %29.1 %30.7 %29.7 %
Combined ratio103.5 %95.3 %97.5 %87.0 %90.9 %93.2 %96.3 %89.5 %95.7 %92.5 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(3.5)%(1.9)%2.7 %(1.8)%(2.8)%(4.8)%1.4 %(2.8)%(1.1)%(2.2)%
Catastrophes, net of reinsurance13.3 %3.9 %4.6 %(1.0)%1.9 %5.6 %4.9 %2.8 %5.1 %3.8 %
Underlying combined ratio93.7 %93.3 %90.2 %89.8 %91.8 %92.4 %90.0 %89.5 %91.7 %90.9 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Billing and policy fees and other$4 $3 $4 $3 $3 $4 $4 $4 $14 $15 
Fee income:
Loss and loss adjustment expenses$38 $39 $36 $37 $35 $39 $38 $39 $150 $151 
Underwriting expenses57 58 54 56 61 54 58 58 225 231 
Total fee income$95 $97 $90 $93 $96 $93 $96 $97 $375 $382 
Non-insurance general and administrative expenses$60 $65 $68 $63 $70 $73 $70 $76 $256 $289 
 
 
 


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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Statutory underwriting
Gross written premiums$4,776 $4,356 $4,453 $4,244 $5,148 $4,786 $4,864 $4,723 $17,829 $19,521 
Net written premiums$4,125 $3,980 $4,021 $3,973 $4,502 $4,373 $4,370 $4,390 $16,099 $17,635 
Net earned premiums$3,799 $3,880 $3,970 $4,090 $4,073 $4,217 $4,353 $4,453 $15,739 $17,096 
Losses and loss adjustment expenses2,741 2,500 2,657 2,326 2,472 2,656 2,911 2,682 10,224 10,721 
Underwriting expenses1,251 1,226 1,205 1,190 1,313 1,325 1,281 1,282 4,872 5,201 
Statutory underwriting gain (loss)(193)154 108 574 288 236 161 489 643 1,174 
Policyholder dividends8 6 8 7 8 4 7 9 29 28 
Statutory underwriting gain (loss) after policyholder dividends$(201)$148 $100 $567 $280 $232 $154 $480 $614 $1,146 





























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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Net written premiums by market          
Domestic          
Select Accounts$729 $726 $685 $693 $819 $807 $739 $734 $2,833 $3,099 
Middle Market2,384 2,087 2,252 2,210 2,616 2,329 2,465 2,513 8,933 9,923 
National Accounts290 213 228 256 303 240 247 295 987 1,085 
National Property and Other445 647 638 535 497 690 702 578 2,265 2,467 
Total Domestic3,848 3,673 3,803 3,694 4,235 4,066 4,153 4,120 15,018 16,574 
International277 307 218 272 267 307 217 270 1,074 1,061 
Total$4,125 $3,980 $4,021 $3,966 $4,502 $4,373 $4,370 $4,390 $16,092 $17,635 
Net written premiums by product line          
Domestic          
Workers’ compensation$948 $754 $751 $722 $1,008 $823 $787 $779 $3,175 $3,397 
Commercial automobile762 715 716 705 781 759 762 759 2,898 3,061 
Commercial property466 678 656 608 551 763 756 701 2,408 2,771 
General liability714 615 685 685 789 678 738 757 2,699 2,962 
Commercial multi-peril940 908 953 967 1,085 1,041 1,067 1,111 3,768 4,304 
Other18 3 42 7 21 2 43 13 70 79 
Total Domestic3,848 3,673 3,803 3,694 4,235 4,066 4,153 4,120 15,018 16,574 
International277 307 218 272 267 307 217 270 1,074 1,061 
Total$4,125 $3,980 $4,021 $3,966 $4,502 $4,373 $4,370 $4,390 $16,092 $17,635 










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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Revenues
Premiums$743 $776 $806 $813 $820 $851 $877 $870 $3,138 $3,418 
Net investment income59 64 63 61 59 64 65 70 247 258 
Other revenues5 7 5 6 4 4 6 6 23 20 
Total revenues807 847 874 880 883 919 948 946 3,408 3,696 
Claims and expenses
Claims and claim adjustment expenses374 335 375 389 354 331 334 359 1,473 1,378 
Amortization of deferred acquisition costs134 142 147 147 149 155 162 159 570 625 
General and administrative expenses130 135 135 132 141 148 148 153 532 590 
Total claims and expenses638 612 657 668 644 634 644 671 2,575 2,593 
Segment income before income taxes169 235 217 212 239 285 304 275 833 1,103 
Income tax expense32 48 43 42 22 57 62 54 165 195 
Segment income$137 $187 $174 $170 $217 $228 $242 $221 $668 $908 
Other statistics
Effective tax rate on net investment income15.0 %15.7 %15.3 %15.1 %15.1 %15.4 %15.6 %15.7 %15.3 %15.5 %
Net investment income (after-tax)$50 $55 $53 $52 $50 $55 $54 $59 $210 $218 
Catastrophes, net of reinsurance:
Pre-tax$24 $3 $3 $10 $1 $4 $11 $9 $40 $25 
After-tax$19 $2 $2 $8 $1 $3 $9 $7 $31 $20 
Prior year reserve development - favorable:
Pre-tax$15 $44 $22 $24 $35 $73 $63 $51 $105 $222 
After-tax$12 $35 $18 $19 $28 $57 $50 $40 $84 $175 












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
image2a.gif
($ in millions, net of tax)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Underwriting gain$84 $128 $118 $114 $165 $171 $185 $158 $444 $679 
Net investment income50 55 53 52 50 55 54 59 210 218 
Other income3 4 3 4 2 2 3 4 14 11 
Segment income$137 $187 $174 $170 $217 $228 $242 $221 $668 $908 
Combined ratio (1)
Loss and loss adjustment expense ratio49.9 %42.6 %46.3 %47.4 %42.8 %38.5 %37.3 %41.3 %46.6 %39.9 %
Underwriting expense ratio35.3 %35.5 %34.8 %34.1 %35.2 %35.5 %35.2 %35.6 %34.9 %35.4 %
Combined ratio85.2 %78.1 %81.1 %81.5 %78.0 %74.0 %72.5 %76.9 %81.5 %75.3 %
Impact on combined ratio:
Net favorable prior year reserve development(2.1)%(5.7)%(2.6)%(3.0)%(4.3)%(8.6)%(7.2)%(5.8)%(3.3)%(6.5)%
Catastrophes, net of reinsurance3.1 %0.4 %0.3 %1.2 %0.1 %0.4 %1.3 %1.0 %1.3 %0.7 %
Underlying combined ratio84.2 %83.4 %83.4 %83.3 %82.2 %82.2 %78.4 %81.7 %83.5 %81.1 %
(1) General and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Non-insurance general and administrative expenses$2 $1 $1 $2 $1 $1 $1 $2 $6 $5 

















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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Statutory underwriting          
Gross written premiums$834 $919 $984 $988 $1,009 $1,036 $1,043 $994 $3,725 $4,082 
Net written premiums$723 $854 $894 $905 $882 $962 $964 $924 $3,376 $3,732 
Net earned premiums$743 $776 $806 $813 $820 $851 $877 $870 $3,138 $3,418 
Losses and loss adjustment expenses371 331 373 385 351 328 328 359 1,460 1,366 
Underwriting expenses270 287 300 288 319 319 326 306 1,145 1,270 
Statutory underwriting gain102 158 133 140 150 204 223 205 533 782 
Policyholder dividends3 4 2 3 3 2 7 — 12 12 
Statutory underwriting gain after policyholder dividends$99 $154 $131 $137 $147 $202 $216 $205 $521 $770 
 




























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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Net written premiums by market
Domestic
Management Liability$444 $497 $532 $510 $505 $533 $554 $520 $1,983 $2,112 
Surety200 232 241 215 257 287 284 253 888 1,081 
Total Domestic644 729 773 725 762 820 838 773 2,871 3,193 
International79 125 121 180 120 142 126 151 505 539 
Total$723 $854 $894 $905 $882 $962 $964 $924 $3,376 $3,732 
Net written premiums by product line
Domestic
Fidelity & surety$256 $287 $307 $273 $320 $346 $350 $313 $1,123 $1,329 
General liability340 389 401 400 389 419 424 407 1,530 1,639 
Other48 53 65 52 53 55 64 53 218 225 
Total Domestic644 729 773 725 762 820 838 773 2,871 3,193 
International79 125 121 180 120 142 126 151 505 539 
Total$723 $854 $894 $905 $882 $962 $964 $924 $3,376 $3,732 



















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
image2a.gif

($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Revenues
Premiums$2,844 $2,960 $3,053 $3,126 $3,123 $3,248 $3,385 $3,494 $11,983 $13,250 
Net investment income119 139 133 130 110 122 102 106 521 440 
Fee income6 7 7 7 7 7 8 8 27 30 
Other revenues23 24 26 24 21 18 22 22 97 83 
Total revenues2,992 3,130 3,219 3,287 3,261 3,395 3,517 3,630 12,628 13,803 
Claims and expenses
Claims and claim adjustment expenses1,808 2,171 2,386 2,062 2,171 2,774 2,795 2,829 8,427 10,569 
Amortization of deferred acquisition costs446 470 481 495 493 519 536 554 1,892 2,102 
General and administrative expenses344 343 360 323 345 352 333 332 1,370 1,362 
Total claims and expenses2,598 2,984 3,227 2,880 3,009 3,645 3,664 3,715 11,689 14,033 
Segment income (loss) before income taxes394 146 (8)407 252 (250)(147)(85)939 (230)
Income tax expense (benefit)80 25 (6)80 27 (57)(36)(24)179 (90)
Segment income (loss)$314 $121 $(2)$327 $225 $(193)$(111)$(61)$760 $(140)
Other statistics
Effective tax rate on net investment income16.4 %17.1 %16.8 %16.5 %15.9 %16.3 %15.4 %15.6 %16.7 %15.8 %
Net investment income (after-tax)$99 $116 $111 $108 $93 $101 $87 $90 $434 $371 
Catastrophes, net of reinsurance:
Pre-tax$305 $323 $317 $69 $80 $508 $285 $325 $1,014 $1,198 
After-tax$241 $255 $250 $55 $63 $400 $225 $257 $801 $945 
Prior year reserve development - favorable (unfavorable):
Pre-tax$168 $65 $30 $(3)$5 $16 $18 $7 $260 $46 
After-tax$132 $51 $24 $(2)$4 $13 $14 $5 $205 $36 












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
image2a.gif

($ in millions, net of tax)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Underwriting gain (loss)$198 $(12)$(130)$203 $119 $(305)$(212)$(165)$259 $(563)
Net investment income99 116 111 108 93 101 87 90 434 371 
Other income17 17 17 16 13 11 14 14 67 52 
Segment income (loss)$314 $121 $(2)$327 $225 $(193)$(111)$(61)$760 $(140)
Combined ratio (1)
Loss and loss adjustment expense ratio63.6 %73.3 %78.2 %66.0 %69.5 %85.4 %82.6 %81.0 %70.3 %79.8 %
Underwriting expense ratio26.7 %26.4 %26.4 %25.1 %25.8 %25.8 %24.6 %24.3 %26.2 %25.1 %
Combined ratio90.3 %99.7 %104.6 %91.1 %95.3 %111.2 %107.2 %105.3 %96.5 %104.9 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(5.9)%(2.2)%(1.0)%0.1 %(0.1)%(0.5)%(0.5)%(0.2)%(2.2)%(0.3)%
Catastrophes, net of reinsurance10.8 %10.9 %10.4 %2.3 %2.6 %15.6 %8.4 %9.3 %8.5 %9.0 %
Underlying combined ratio85.4 %91.0 %95.2 %88.7 %92.8 %96.1 %99.3 %96.2 %90.2 %96.2 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. See following:
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Billing and policy fees and other$23 $24 $23 $23 $24 $23 $23 $24 $93 $94 
Fee income$6 $7 $7 $7 $7 $7 $8 $8 $27 $30 
Non-insurance general and administrative expenses$2 $3 $4 $3 $3 $4 $4 $4 $12 $15 


 









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
image2a.gif

($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Statutory underwriting
Gross written premiums$2,797 $3,322 $3,439 $3,132 $3,126 $3,714 $3,905 $3,528 $12,690 $14,273 
Net written premiums$2,657 $3,301 $3,409 $3,124 $2,983 $3,685 $3,864 $3,515 $12,491 $14,047 
Net earned premiums$2,844 $2,960 $3,053 $3,126 $3,123 $3,248 $3,385 $3,494 $11,983 $13,250 
Losses and loss adjustment expenses1,808 2,172 2,385 2,062 2,171 2,774 2,795 2,829 8,427 10,569 
Underwriting expenses755 848 880 791 809 924 926 862 3,274 3,521 
Statutory underwriting gain (loss)$281 $(60)$(212)$273 $143 $(450)$(336)$(197)$282 $(840)
Policies in force (in thousands)
Automobile3,056 3,098 3,141 3,179 3,212 3,243 3,283 3,278 3,179 3,278 
Homeowners and Other5,944 6,076 6,168 6,230 6,284 6,338 6,367 6,375 6,230 6,375 




























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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Net written premiums by product line
Domestic
Automobile$1,375 $1,467 $1,529 $1,456 $1,496 $1,629 $1,743 $1,614 $5,827 $6,482 
Homeowners and Other1,144 1,634 1,698 1,504 1,344 1,868 1,952 1,752 5,980 6,916 
Total Domestic2,519 3,101 3,227 2,960 2,840 3,497 3,695 3,366 11,807 13,398 
International138 200 182 164 143 188 169 149 684 649 
Total$2,657 $3,301 $3,409 $3,124 $2,983 $3,685 $3,864 $3,515 $12,491 $14,047 































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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Statutory underwriting
Gross written premiums$1,481 $1,604 $1,656 $1,567 $1,605 $1,755 $1,857 $1,717 $6,308 $6,934 
Net written premiums$1,466 $1,597 $1,648 $1,562 $1,591 $1,749 $1,849 $1,709 $6,273 $6,898 
Net earned premiums$1,478 $1,525 $1,557 $1,581 $1,568 $1,620 $1,679 $1,727 $6,141 $6,594 
Losses and loss adjustment expenses845 1,026 1,180 1,280 1,188 1,311 1,510 1,542 4,331 5,551 
Underwriting expenses370 389 399 369 382 408 408 387 1,527 1,585 
Statutory underwriting gain (loss)$263 $110 $(22)$(68)$(2)$(99)$(239)$(202)$283 $(542)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio57.2 %67.2 %75.9 %80.9 %75.8 %80.9 %90.0 %89.3 %70.5 %84.2 %
Underwriting expense ratio24.6 %24.4 %24.1 %23.2 %23.5 %23.4 %22.2 %22.1 %24.1 %22.8 %
Combined ratio81.8 %91.6 %100.0 %104.1 %99.3 %104.3 %112.2 %111.4 %94.6 %107.0 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(5.2)%(2.1)%(0.4)%0.6 %0.3 %0.3 %0.4 %0.5 %(1.7)%0.4 %
Catastrophes, net of reinsurance0.4 %1.7 %3.4 %(0.3)%0.2 %2.2 %7.9 %0.4 %1.3 %2.7 %
Underlying combined ratio86.6 %92.0 %97.0 %103.8 %98.8 %101.8 %103.9 %110.5 %95.0 %103.9 %
Catastrophes, net of reinsurance:
Pre-tax$6 $26 $53 $(5)$4 $35 $133 $7 $80 $179 
After-tax$5 $21 $41 $(4)$3 $28 $105 $5 $63 $141 
Prior year reserve development - favorable (unfavorable):
Pre-tax$78 $33 $6 $(10)$(4)$(6)$(8)$(8)$107 $(26)
After-tax$61 $26 $5 $(8)$(3)$(4)$(6)$(7)$84 $(20)
Policies in force (in thousands)3,056 3,098 3,141 3,179 3,212 3,243 3,283 3,278 
Change from prior year quarter2.9 %3.5 %4.2 %5.0 %5.1 %4.7 %4.5 %3.1 %
Change from prior quarter0.9 %1.4 %1.4 %1.2 %1.0 %1.0 %1.2 %(0.2)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Billing and policy fees and other$14 $14 $14 $14 $14 $14 $14 $14 $56 $56 
Fee income$3 $4 $4 $4 $4 $3 $4 $5 $15 $16 


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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Statutory underwriting
Gross written premiums$1,316 $1,718 $1,783 $1,565 $1,521 $1,959 $2,048 $1,811 $6,382 $7,339 
Net written premiums$1,191 $1,704 $1,761 $1,562 $1,392 $1,936 $2,015 $1,806 $6,218 $7,149 
Net earned premiums$1,366 $1,435 $1,496 $1,545 $1,555 $1,628 $1,706 $1,767 $5,842 $6,656 
Losses and loss adjustment expenses963 1,146 1,205 782 983 1,463 1,285 1,287 4,096 5,018 
Underwriting expenses385 459 481 422 427 516 518 475 1,747 1,936 
Statutory underwriting gain (loss)$18 $(170)$(190)$341 $145 $(351)$(97)$5 $(1)$(298)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio70.5 %79.8 %80.5 %50.7 %63.2 %89.9 %75.4 %72.8 %70.1 %75.4 %
Underwriting expense ratio28.9 %28.5 %28.8 %27.1 %28.0 %28.1 %26.9 %26.6 %28.3 %27.4 %
Combined ratio99.4 %108.3 %109.3 %77.8 %91.2 %118.0 %102.3 %99.4 %98.4 %102.8 %
Impact on combined ratio:
Net favorable prior year reserve development(6.6)%(2.2)%(1.6)%(0.4)%(0.6)%(1.3)%(1.5)%(0.8)%(2.6)%(1.1)%
Catastrophes, net of reinsurance21.9 %20.6 %17.6 %4.8 %4.9 %29.0 %8.9 %18.0 %16.0 %15.4 %
Underlying combined ratio84.1 %89.9 %93.3 %73.4 %86.9 %90.3 %94.9 %82.2 %85.0 %88.5 %
Catastrophes, net of reinsurance:
Pre-tax$299 $297 $264 $74 $76 $473 $152 $318 $934 $1,019 
After-tax$236 $234 $209 $59 $60 $372 $120 $252 $738 $804 
Prior year reserve development - favorable:
Pre-tax$90 $32 $24 $7 $9 $22 $26 $15 $153 $72 
After-tax$71 $25 $19 $6 $7 $17 $20 $12 $121 $56 
Policies in force (in thousands)5,944 6,076 6,168 6,230 6,284 6,338 6,367 6,375 
Change from prior year quarter7.4 %7.0 %6.5 %6.4 %5.7 %4.3 %3.2 %2.3 %
Change from prior quarter1.5 %2.2 %1.5 %1.0 %0.9 %0.9 %0.5 %0.1 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Billing and policy fees and other$9 $10 $9 $9 $10 $9 $9 $10 $37 $38 
Fee income$3 $3 $3 $3 $3 $4 $4 $3 $12 $14 


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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Revenues
Other revenues$— $— $— $— $— $— $— $— $— $— 
Claims and expenses
Interest expense82 83 87 88 87 88 88 88 340 351 
General and administrative expenses6 8 8 7 8 9 8 6 29 31 
Total claims and expenses88 91 95 95 95 97 96 94 369 382 
Loss before income tax benefit(88)(91)(95)(95)(95)(97)(96)(94)(369)(382)
Income tax benefit(19)(19)(20)(20)(21)(21)(20)(19)(78)(81)
Loss$(69)$(72)$(75)$(75)$(74)$(76)$(76)$(75)$(291)$(301)




























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

22
The Travelers Companies, Inc.
Consolidated Balance Sheet
image2a.gif
($ and shares in millions)December 31,
2022 (1)		December 31,
2021
Assets
Fixed maturities, available for sale, at fair value (amortized cost $77,380 and $74,751; allowance for expected credit losses of $3 and $3)
$71,160 $77,810 
Equity securities, at fair value (cost $747 and $749)
807 893 
Real estate investments952 979 
Short-term securities3,470 3,836 
Other investments4,065 3,857 
Total investments80,454 87,375 
Cash799 761 
Investment income accrued650 615 
Premiums receivable (net of allowance for expected credit losses of $77 and $107)
8,922 8,085 
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $132 and $141)
8,063 8,452 
Ceded unearned premiums1,024 902 
Deferred acquisition costs2,836 2,542 
Deferred taxes1,877 — 
Contractholder receivables (net of allowance for expected credit losses of $17 and $21)
3,579 3,890 
Goodwill3,952 4,008 
Other intangible assets287 306 
Other assets3,274 3,530 
Total assets$115,717 $120,466 
Liabilities
Claims and claim adjustment expense reserves$58,649 $56,907 
Unearned premium reserves18,240 16,469 
Contractholder payables3,596 3,911 
Payables for reinsurance premiums419 384 
Deferred taxes— 289 
Debt7,292 7,290 
Other liabilities5,961 6,329 
Total liabilities94,157 91,579 
Shareholders’ equity
Common stock (1,750.0 shares authorized; 232.1 and 241.2 shares issued and outstanding)
24,565 24,154 
Retained earnings43,516 41,555 
Accumulated other comprehensive income (loss)(6,445)1,193 
Treasury stock, at cost (553.5 and 541.5 shares)
(40,076)(38,015)
Total shareholders’ equity21,560 28,887 
Total liabilities and shareholders’ equity$115,717 $120,466 
(1) Preliminary

23
The Travelers Companies, Inc.
Investment Portfolio
image2a.gif
(at carrying value, $ in millions)December 31,
2022		Pre-tax Book
Yield (1)		December 31,
2021		Pre-tax Book
Yield (1)
Investment portfolio
Taxable fixed maturities$43,664 2.94 %$44,743 2.60 %
Tax-exempt fixed maturities27,496 2.91 %33,067 2.81 %
Total fixed maturities71,160 2.93 %77,810 2.69 %
Non-redeemable preferred stocks44 2.24 %66 3.04 %
Common stocks763 827 
Total equity securities807 893 
Real estate investments952 979 
Short-term securities3,470 4.38 %3,836 0.10 %
Private equities2,785 2,672 
Hedge funds225 231 
Real estate partnerships862 768 
Other investments193 186 
Total other investments4,065 3,857 
Total investments$80,454 $87,375 
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity$(4,898)$2,415 

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





24
The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
image2a.gif
(at carrying value, $ in millions)December 31,
2022		December 31,
2021
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies$5,438 $3,562 
Obligations of U.S. states and political subdivisions:
Pre-refunded2,339 4,032 
All other29,040 32,830 
Total31,379 36,862 
Debt securities issued by foreign governments994 1,041 
Mortgage-backed securities - principally obligations of U.S. Government agencies1,991 1,817 
Corporate and all other bonds31,358 34,528 
Total fixed maturities$71,160 $77,810 
Fixed Maturities
Quality Characteristics (1)
December 31, 2022December 31, 2021
Amount% of TotalAmount% of Total
Quality Ratings
Aaa$31,688 44.6 %$33,323 42.8 %
Aa16,217 22.8 18,140 23.3 
A13,333 18.7 14,757 19.0 
Baa8,992 12.6 10,483 13.5 
Total investment grade70,230 98.7 76,703 98.6 
Ba580 0.8 742 0.9 
B281 0.4 293 0.4 
Caa and lower69 0.1 72 0.1 
Total below investment grade930 1.3 1,107 1.4 
Total fixed maturities$71,160 100.0 %$77,810 100.0 %
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 purchases4.6 4.2 

 

(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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Gross investment income
Fixed maturities$491 $493 $497 $508 $505 $512 $534 $562 $1,989 $2,113 
Short-term securities3 1 2 1 2 9 23 39 7 73 
Other218 335 281 243 142 197 46 34 1,077 419 
712 829 780 752 649 718 603 635 3,073 2,605 
Investment expenses11 11 9 9 12 11 10 10 40 43 
Net investment income, pre-tax701 818 771 743 637 707 593 625 3,033 2,562 
Income taxes111 136 126 119 98 112 88 94 492 392 
Net investment income, after-tax$590 $682 $645 $624 $539 $595 $505 $531 $2,541 $2,170 
Effective tax rate15.9 %16.7 %16.3 %16.0 %15.4 %15.8 %14.8 %15.1 %16.2 %15.3 %
Average invested assets (1)$81,209$82,594$84,647$85,806$86,345$86,660$87,315$88,242$83,574$87,191
Average yield pre-tax (1)3.5 %4.0 %3.6 %3.5 %2.9 %3.3 %2.7 %2.8 %3.6 %2.9 %
Average yield after-tax2.9 %3.3 %3.0 %2.9 %2.5 %2.7 %2.3 %2.4 %3.0 %2.5 %

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

26
The Travelers Companies, Inc.
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity
image2a.gif

($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Net realized investment gains (losses)
Fixed maturities$14 $24 $12 $17 $2 $(21)$(42)$(37)$67 $(98)
Equity securities 26 32 (1)38 (19)(64)(26)40 95 (69)
Other 4 5 (3)3 (6)(10)(25)4 9 (37)
Realized investment gains (losses) before tax44 61 8 58 (23)(95)(93)7 171 (204)
Related taxes10 14 1 14 (4)(21)(21)(2)39 (48)
Net realized investment gains (losses)$34 $47 $7 $44 $(19)$(74)$(72)$9 $132 $(156)
Gross investment gains$50 $72 $24 $66 $13 $16 $15 $69 $212 $113 
Gross investment losses before impairments(6)(11)(15)(7)(35)(91)(94)(59)(39)(279)
Net investment gains (losses) before impairments44 61 9 59 (22)(75)(79)10 173 (166)
Net impairment (charges) recoveries— — (1)(1)(1)(20)(14)(3)(2)(38)
Net realized investment gains (losses) before tax44 61 8 58 (23)(95)(93)7 171 (204)
Related taxes10 14 1 14 (4)(21)(21)(2)39 (48)
Net realized investment gains (losses)$34 $47 $7 $44 $(19)$(74)$(72)$9 $132 $(156)
($ in millions)March 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities$3,577 $4,113 $3,428 $3,062 $(1,768)$(4,814)$(8,018)$(6,217)
Other 2 (1)(2)(2)(2)(3)(3)(3)
Unrealized investment gains (losses) before tax3,579 4,112 3,426 3,060 (1,770)(4,817)(8,021)(6,220)
Related taxes 762 873 727 645 (379)(1,025)(1,704)(1,322)
Balance, end of period$2,817 $3,239 $2,699 $2,415 $(1,391)$(3,792)$(6,317)$(4,898)




27
The Travelers Companies, Inc.
Reinsurance Recoverables
image2a.gif
($ in millions)December 31, 2022December 31, 2021
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$3,792 $3,931 
Gross structured settlements (2)2,802 2,900 
Mandatory pools and associations (3) 1,601 1,762 
Gross reinsurance recoverables (4)8,195 8,593 
Allowance for estimated uncollectible reinsurance (5)(132)(141)
Net reinsurance recoverables$8,063 $8,452 
(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 ReinsurerDecember 31, 2022
Swiss Re GroupA+ second highest of 16 ratings$561 
Berkshire Hathaway (a)A++ highest of 16 ratings515 
Munich Re GroupA+ second highest of 16 ratings318 
Axa GroupA+ second highest of 16 ratings152 
PartnerRe GroupA+ second highest of 16 ratings140 
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.

(a) On October 19, 2022 Berkshire Hathaway completed its acquisition of Alleghany Corporation. Accordingly, amounts include those previously reported with Alleghany Group.

(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 InsurerDecember 31, 2022
Fidelity & Guaranty Life Group  A- fourth highest of 16 ratings$699 
Genworth Financial Group B- eighth highest of 16 ratings310 
John Hancock Group A+ second highest of 16 ratings249 
Symetra Financial CorporationA third highest of 16 ratings215 
Brighthouse Financial, Inc.A third highest of 16 ratings207 


(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 December 31, 2022, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.72 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 were comprised of 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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period$36,999 $37,694 $38,010 $38,342 $38,233 $38,450 $38,618 $38,905 $36,999 $38,233 
Incurred2,741 2,500 2,657 2,326 2,472 2,656 2,911 2,682 10,224 10,721 
Paid(2,056)(2,196)(2,288)(2,438)(2,242)(2,411)(2,516)(2,631)(8,978)(9,800)
Foreign exchange and other10 12 (37)3 (13)(77)(108)71 (12)(127)
End of period$37,694 $38,010 $38,342 $38,233 $38,450 $38,618 $38,905 $39,027 $38,233 $39,027 
Bond & Specialty Insurance
Beginning of period$3,571 $3,691 $3,770 $3,892 $3,938 $4,079 $4,118 $4,042 $3,571 $3,938 
Incurred371 331 373 385 351 328 328 359 1,460 1,366 
Paid(256)(254)(235)(341)(197)(242)(345)(282)(1,086)(1,066)
Foreign exchange and other5 2 (16)2 (13)(47)(59)48 (7)(71)
End of period$3,691 $3,770 $3,892 $3,938 $4,079 $4,118 $4,042 $4,167 $3,938 $4,167 
Personal Insurance
Beginning of period$5,677 $5,768 $6,113 $6,428 $6,418 $6,498 $6,940 $7,192 $5,677 $6,418 
Incurred1,808 2,172 2,385 2,062 2,171 2,774 2,795 2,829 8,427 10,569 
Paid(1,730)(1,837)(2,051)(2,075)(2,103)(2,306)(2,486)(2,467)(7,693)(9,362)
Foreign exchange and other13 10 (19)3 12 (26)(57)14 7 (57)
End of period$5,768 $6,113 $6,428 $6,418 $6,498 $6,940 $7,192 $7,568 $6,418 $7,568 
Total
Beginning of period$46,247 $47,153 $47,893 $48,662 $48,589 $49,027 $49,676 $50,139 $46,247 $48,589 
Incurred4,920 5,003 5,415 4,773 4,994 5,758 6,034 5,870 20,111 22,656 
Paid(4,042)(4,287)(4,574)(4,854)(4,542)(4,959)(5,347)(5,380)(17,757)(20,228)
Foreign exchange and other28 24 (72)8 (14)(150)(224)133 (12)(255)
End of period$47,153 $47,893 $48,662 $48,589 $49,027 $49,676 $50,139 $50,762 $48,589 $50,762 
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos$— $— $225 $— $— $— $212 $— $225 $212 
All other(134)(73)(117)(74)(113)(202)(151)(127)(398)(593)
Total Business Insurance (1)(134)(73)108 (74)(113)(202)61 (127)(173)(381)
Bond & Specialty Insurance(15)(44)(22)(24)(35)(73)(63)(51)(105)(222)
Personal Insurance(168)(65)(30)3 (5)(16)(18)(7)(260)(46)
Total$(317)$(182)$56 $(95)$(153)$(291)$(20)$(185)$(538)$(649)
(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
image2a.gif
($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Asbestos reserves
Beginning reserves:
Gross$1,668 $1,616 $1,565 $1,777 $1,687 $1,635 $1,547 $1,765 $1,668 $1,687 
Ceded(330)(327)(315)(369)(346)(331)(322)(372)(330)(346)
Net1,338 1,289 1,250 1,408 1,341 1,304 1,225 1,393 1,338 1,341 
Incurred losses and loss expenses:
Gross— — 287 — — — 287 — 287 287 
Ceded— — (62)— — — (75)— (62)(75)
Paid loss and loss expenses:
Gross52 51 75 89 52 85 68 93 267 298 
Ceded(3)(12)(8)(23)(16)(8)(25)(4)(46)(53)
Foreign exchange and other:
Gross— — — (1)— (3)(1)2 (1)(2)
Ceded— — — — (1)1 — (1)— (1)
Ending reserves:
Gross1,616 1,565 1,777 1,687 1,635 1,547 1,765 1,674 1,687 1,674 
Ceded(327)(315)(369)(346)(331)(322)(372)(369)(346)(369)
Net$1,289 $1,250 $1,408 $1,341 $1,304 $1,225 $1,393 $1,305 $1,341 $1,305 





















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
image2a.gif
($ in millions)December 31,
2022		December 31,
2021
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 
Total long-term debt7,254 7,254 
Unamortized fair value adjustment38 39 
Unamortized debt issuance costs(100)(103)
7,192 7,190 
Total debt7,292 7,290 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)26,458 26,472 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$33,750 $33,762 
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)21.6 %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
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($ in millions)December 31,
2022 (1)		December 31,
2021
Statutory capital and surplus$23,677 $23,906 
GAAP adjustments
Goodwill and intangible assets3,551 3,557 
Investments(5,893)3,261 
Noninsurance companies(4,412)(4,230)
Deferred acquisition costs2,836 2,542 
Deferred federal income tax630 (1,274)
Current federal income tax(2)(39)
Reinsurance recoverables65 87 
Furniture, equipment & software742 770 
Agents balances156 147 
Other210 160 
Total GAAP adjustments(2,117)4,981 
GAAP shareholders’ equity$21,560 $28,887 

(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 - Preliminary
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($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Cash flows from operating activities
Net income$733 $934 $662 $1,333 $1,018 $551 $454 $819 $3,662 $2,842 
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses(44)(61)(8)(58)23 95 93 (7)(171)204 
Depreciation and amortization235 215 212 208 234 210 195 187 870 826 
Deferred federal income tax expense (benefit)56 1 4 1 40 (68)(102)(56)62 (186)
Amortization of deferred acquisition costs1,207 1,254 1,281 1,301 1,310 1,365 1,406 1,434 5,043 5,515 
Equity in income from other investments(200)(313)(261)(219)(118)(177)(24)(17)(993)(336)
Premiums receivable(333)(385)256 204 (509)(562)210 (16)(258)(877)
Reinsurance recoverables12 142 (134)(121)(282)198 269 159 (101)344 
Deferred acquisition costs(1,258)(1,343)(1,354)(1,272)(1,413)(1,504)(1,502)(1,405)(5,227)(5,824)
Claims and claim adjustment expense reserves777 536 986 89 679 593 422 356 2,388 2,050 
Unearned premium reserves509 459 492 (211)727 671 635 (171)1,249 1,862 
Other(504)410 407 437 (443)3 428 57 750 45 
Net cash provided by operating activities1,190 1,849 2,543 1,692 1,266 1,375 2,484 1,340 7,274 6,465 
Cash flows from investing activities
Proceeds from maturities of fixed maturities2,064 2,283 2,176 2,329 1,879 1,818 1,784 1,356 8,852 6,837 
Proceeds from sales of investments:
Fixed maturities1,238 1,244 382 301 1,044 1,657 1,250 1,706 3,165 5,657 
Equity securities25 20 29 28 63 21 20 34 102 138 
Real estate investments— — 7 24 — — 10 — 31 10 
Other investments79 116 80 152 81 92 69 60 427 302 
Purchases of investments:
Fixed maturities(4,754)(4,708)(4,894)(3,797)(4,409)(3,589)(4,102)(3,808)(18,153)(15,908)
Equity securities(19)(22)(334)(32)(63)(23)(26)(24)(407)(136)
Real estate investments(5)(9)(8)(6)(9)(7)(12)(13)(28)(41)
Other investments(97)(124)(115)(184)(135)(117)(162)(160)(520)(574)
Net sales (purchases) of short-term securities524 (718)948 917 367 (110)(364)462 1,671 355 
Securities transactions in the course of settlement269 (40)178 (426)613 (377)(22)(193)(19)21 
Acquisitions, net of cash acquired(38)— — — (4)— — — (38)(4)
Other(60)(53)(86)(80)(84)(75)(132)(94)(279)(385)
Net cash used in investing activities(774)(2,011)(1,637)(774)(657)(710)(1,687)(674)(5,196)(3,728)

33
The Travelers Companies, Inc.
Statement of Cash Flows - Preliminary (Continued)
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($ in millions)1Q20212Q20213Q20214Q20211Q20222Q20223Q20224Q2022YTD 4Q2021YTD 4Q2022
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations(356)(400)(600)(800)(500)(500)(500)(500)(2,156)(2,000)
Treasury stock acquired - net employee share-based compensation(41)(1)(1)(1)(59)— (1)(1)(44)(61)
Dividends paid to shareholders(214)(222)(219)(214)(213)(223)(220)(219)(869)(875)
Issuance of debt— 739 — — — — — — 739 — 
Issuance of common stock - employee share options134 72 50 37 159 35 11 62 293 267 
Net cash provided by (used in) financing activities(477)188 (770)(978)(613)(688)(710)(658)(2,037)(2,669)
Effect of exchange rate changes on cash3 — (7)3 (5)(19)(24)18 (1)(30)
Net increase (decrease) in cash(58)26 129 (57)(9)(42)63 26 40 38 
Cash at beginning of period721 663 689 818 761 752 710 773 721 761 
Cash at end of period$663 $689 $818 $761 $752 $710 $773 $799 $761 $799 
Income taxes paid$58 $284 $201 $164 $10 $542 $111 $154 $707 $817 
Interest paid$59 $104 $59 $115 $59 $115 $60 $115 $337 $349 

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, 2021June 30, 2021September 30, 2021December 31, 2021March 31, 2022June 30, 2022September 30, 2022December 31, 2022
Shareholders’ equity$28,269 $29,156 $28,474 $28,887 $25,531 $22,874 $19,906 $21,560 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity(2,817)(3,239)(2,699)(2,415)1,391 3,792 6,317 4,898 
Net realized investment (gains) losses, net of tax(34)(81)(88)(132)19 93 165 156 
Impact of changes in tax laws and/or tax rates (1)— (8)(8)(8)— — — — 
Adjusted shareholders’ equity$25,418 $25,828 $25,679 $26,332 $26,941 $26,759 $26,388 $26,614 
(1) Impact is recognized in the accounting period in which the change is enacted
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 2022 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
35
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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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.
 
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 and insurance-related 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 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, Northfield, National Programs, and Agribusiness; and International including Global Services.  Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom that was acquired in August 2017, as well as 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 provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers in the United States and certain specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), utilizing various degrees of financially-based underwriting approaches.  The range of coverages includes performance, payment and commercial surety and fidelity bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employee dishonesty, employment practices 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; and in the United States only, property, workers’ compensation, auto and general liability for financial institutions.
 
Bond & Specialty Insurance 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., a Colombian start-up 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 writes a broad range of property and casualty insurance 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.

36