Financial highlights

At and for the year ended December 31. Dollar amounts in millions, except per share amounts.



  2013 2012 2011 2010 2009
Earned Premiums $ 22,637 $ 22,357 $ 22,090 $ 21,432 $ 21,418
Total Revenues $ 26,191 $ 25,740 $ 25,446 $ 25,112 $ 24,680
Operating Income $ 3,567 $ 2,441 $ 1,390 $ 3,043 $ 3,600
Net Income $ 3,673 $ 2,473 $ 1,426 $ 3,216 $ 3,622
Net Income Per Diluted Common Share $ 9.74 $ 6.30 $ 3.36 $ 6.62 $ 6.33
Total Investments $ 73,160 $ 73,838 $ 72,701 $ 72,722 $ 74,965
Total Assets $ 103,812 $ 104,938 $ 104,575 $ 105,631 $ 110,013
Shareholders' Equity $ 24,796 $ 25,405 $ 24,477 $ 25,475 $ 27,415
Return On Equity 14.6% 9.8% 5.7% 12.1% 13.5%
Operating Return On Equity 15.5% 11.0% 6.1% 12.5% 14.0%
Book Value Per Share $ 70.15 $ 67.31 $ 62.32 $ 58.47 $ 52.54
Dividends Per Share $ 1.96 $ 1.79 $ 1.59 $ 1.41 $ 1.23
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property and casualty insurance for auto, home and business. The company's diverse business lines offer customers a wide range of coverage sold primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and operations in the United States and selected international markets.

Shareholders' information

Your Dividends

The Travelers Companies, Inc. has paid cash dividends without interruption for 142 years. Our most recent quarterly dividend of $0.50 per share was declared on January 21, 2014, payable March 31, 2014, to shareholders of record as of March 10, 2014.

Automatic Dividend Reinvestment Program

This program provides a convenient opportunity for our shareholders to increase their holding of Travelers common stock. An explanatory brochure and enrollment card may be obtained by calling our stock transfer agent, Wells Fargo Bank, N.A., at 888.326.5102, or mailing a request to the address below.

Stock Transfer Agent and Registrar

For address changes, dividend checks, direct deposits of dividends, account consolidations, registration changes, lost stock certificates and general stock holding questions, please contact:

Wells Fargo Bank, N.A.
Shareowner Services
P.O. Box 64854
Saint Paul, MN 55164-0854
Toll Free: 888.326.5102
Outside U.S. and Canada: 651.450.4064
www.shareowneronline.com

Financial Information Available

Travelers makes available, free of charge on its website, all of its filings that are made electronically to the SEC, including Forms 10-K, 10-Q, and 8-K. To access these filings, go to travelers.com > For Investors > SEC Filings.

Requests for additional information may be directed to:

The Travelers Companies, Inc.
One Tower Square
Hartford, CT 06183
Investor Relations, 2MS
Attn: Marc Parr
860.277.0779
mparr@travelers.com

Annual Meeting of Shareholders

The Annual Meeting of Shareholders will be held on May 27, 2014, at The Hartford Marriott Downtown, 200 Columbus Boulevard, Hartford, CT 06103. As publicly announced, this date supersedes the prior date announced in the Form 10-K. In April, we plan to send proxy materials, or a notice of internet availability of proxy materials, to shareholders of record as of the close of business on March 31, 2014. The notice will provide instructions on where to access our Proxy Statement and Annual Report as well as how to vote your shares electronically. The notice also includes instructions on how to request a printed copy of our proxy materials.

Stock Price and Dividend Rate

The Travelers Companies, Inc. common stock is listed on the New York Stock Exchange (NYSE) and is publicly traded under the ticker symbol “TRV”.

The following tables set forth the quarterly high and low closing sales prices of The Travelers Companies, Inc. common stock as well as the amount of quarterly cash dividends declared per share for years 2013 and 2012.

2013 High Low Cash Dividend Declared
First Quarter $84.19 $72.86 $0.46
Second Quarter 87.90 77.85 0.50
Third Quarter 86.90 79.42 0.50
Fourth Quarter 90.99 82.35 0.50
2012 High Low Cash Dividend Declared
First Quarter $61.59 $56.87 $0.41
Second Quarter 64.77 57.75 0.46
Third Quarter 68.61 60.89 0.46
Fourth Quarter 74.33 68.07 0.46

Additional information

We have included the tables below to provide a reconciliation of the following items used in this Annual Report: (i) operating income less preferred dividends to net income, (ii) adjusted shareholders' equity to shareholders' equity, which are components of the operating return on equity and return on equity ratios for the nine-year period ending December 31, 2013, and (iii) after-tax underwriting gain (excluding the impact of catastrophes and net favorable prior year reserve development) to net income.

Twelve months ended December 31,

(Dollars in millions, after-tax) 2013 2012 2011 2010 2009 2008 2007 2006 2005
Reconciliation of operating income less preferred dividends to net income
Operating income, less preferred dividends $3,567 $2,441 $1,389 $3,040 $3,597 $3,191 $4,496 $4,195 $2,020
Preferred dividends - - 1 3 3 4 4 5 6
Operating income 3,567 2,441 1,390 3,043 3,600 3,195 4,500 4,200 2,026
Net realized investment gains (losses) 106 32 36 173 22 (271) 101 8 35
Income from continuing operations 3,673 2,473 1,426 3,216 3,622 2,924 4,601 4,208 2,061
Discontinued operations - - - - - - - (439)
Net income $3,673 $2,473 $1,426 $3,216 $3,622 $2,924 $4,601 $4,208 $1,622

As of December 31,

(Dollars in millions) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Reconciliation of adjusted shareholders' equity to shareholders' equity
Adjusted shareholders' equity $23,368 $22,270 $21,570 $23,375 $25,458 $25,647 $25,783 $24,545 $22,227 $20,087
Net unrealized investment gains (losses), net of tax 1,322 3,103 2,871 1,859 1,856 (146) 620 453 327 866
Net realized investment gains (losses), net of tax 106 32 36 173 22 (271) 101 8 35 (28)
Preferred stock - - - 68 79 89 112 129 153 188
Discontinued operations - - - - - - - - (439) 88
Shareholders' equity $24,796 $25,405 $24,477 $25,475 $27,415 $25,391 $26,616 $25,135 $22,303 $21,201

Twelve months ended December 31,

(Dollars in millions) 2013 2012 2011 2010 2009 2008 2007 2006 2005
Calculation of average annual operating return on equity
Operating income, less preferred dividends $3,567 $2,441 $1,389 $3,040 $3,597 $3,191 $4,496 $4,195 $2,020
Adjusted average shareholders' equity 23,004 22,158 22,806 24,285 25,777 25,668 25,350 23,381 21,118
Operating return on equity 15.5% 11.0% 6.1% 12.5% 14.0% 12.4% 17.7% 17.9% 9.6%
Average annual operating return on equity for the period Jan. 1, 2005 - Dec. 31, 2013 13.1%

Twelve months ended December 31,

(Dollars in millions, after-tax) 2013 2012 2011 2010 2009 2008 2007
Reconciliation of after-tax underwriting gain (excluding the impact of catastrophes and net favorable prior year reserve development) to net income
Underwriting gain excluding the impact of catastrophes and net favorable prior year reserve development (underlying underwriting gain) $1,277 $888 $451 $715 $866 $995 $1,457
Impact of catastrophes (387) (1,214) (1,669) (729) (297) (919) (109)
Impact of net favorable prior year reserve development 552 622 473 818 868 1,000 351
Underwriting gain (loss) 1,442 296 (745) 804 1,473 1,076 1,699
Net investment income 2,186 2,316 2,330 2,468 2,290 2,299 2,915
Other, including interest expense (61) (171) (195) (229) (127) (180) (114)
Operating income 3,567 2,441 1,390 3,043 3,600 3,195 4,500
Net realized investment gains (losses) 106 32 36 173 22 (271) 101
Net income $3,673 $2,473 $1,426 $3,216 $3,622 2,924 4,601

Average shareholders' equity is (a) the sum of total shareholders' equity excluding preferred stock at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted shareholders' equity is shareholders' equity excluding net unrealized investment gains (losses), net of tax, net realized investment gains (losses), net of tax, for the period presented, preferred stock and discontinued operations. Adjusted average shareholders' equity is average shareholders' equity excluding net unrealized investment gains (losses), net of tax, and that period's net realized investment gains (losses), net of tax. Average annual operating return on equity over a period is the ratio of: (a) the sum of operating income less preferred dividends for the periods presented, to (b) the sum of the adjusted average shareholders' equity for all years in the period presented. Definitions of other terms used in this Annual Report, such as return on equity, operating return on equity, underwriting gain (loss) and GAAP combined ratio, are included in the Glossary of Selected Insurance Terms portion of the attached Form 10-K.