Travelers Reports Second Quarter Net Income Of $499 Million Or $1.26 Per Diluted Share After Catastrophe Losses Of $357 Million Or $0.90 Per Diluted Share

The Travelers Companies, Inc. today reported net income of $499 million, or $1.26 per diluted share, for the quarter ended June 30, 2012, compared to a net loss of $364 million, or $0.88 per diluted share, in the prior year quarter. Operating income in the current quarter was $495 million, or $1.26 per diluted share, compared to an operating loss of $377 million, or $0.91 per diluted share, in the prior year quarter. Catastrophe losses in the current quarter were $357 million after tax ($549 million pre tax), compared to $1.085 billion after tax ($1.668 billion pre tax) in the prior year quarter.

Consolidated Highlights
($ in millions, except for per share amounts,			Three Months Ended June 30,																	Six Months Ended June 30,
and after-tax, except for premiums & revenues)			2012						2011						Change					2012						2011						Change
Net written premiums			$		5,868				$		5,817				1		%			$		11,365				$		11,254				1		%
Total revenues			$		6,359				$		6,388				-					$		12,751				$		12,666				1
Operating income (loss)			$		495				$		(377	)			NM					$		1,296				$		449				189
per diluted share			$		1.26				$		(0.91	)			NM					$		3.27				$		1.04				214
Net income (loss)			$		499				$		(364	)			NM					$		1,305				$		475				175
per diluted share			$		1.26				$		(0.88	)			NM					$		3.29				$		1.10				199
Diluted weighted average					391.6						418.6				(6	)						393.5						429.1				(8	)
shares outstanding
GAAP combined ratio					100.5	%					125.0	%			(24.5	)	pts					96.3	%					110.1	%			(13.8	)	pts
Operating return on equity					9.0	%					(6.6	%)			15.6		pts					11.8	%					3.9	%			7.9		pts
Return on equity					8.0	%					(5.8	%)			13.8		pts					10.5	%					3.8	%			6.7		pts
																				As of June 30,
																				2012						2011						Change
Book value per share																				$		64.90				$		59.62				9		%
Adjusted book value per share																				$		57.18				$		54.32				5
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
NM = Not Meaningful.

“Our second quarter net income of $499 million benefited from meaningful improvement in our underlying underwriting margins as well as strong net investment income given the continuing low interest rate environment,” commented Jay Fishman, Chairman and Chief Executive Officer. “However, earnings were also impacted by weather-related losses which, while much lower than in the prior year quarter, were considerably higher than we would have expected based on historical experience.

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