Travelers 2006 Annual Report Download - page 2

Financial Highlights
(as of and for the year ended Dec. 31)
(Dollar amounts in millions, except per share amounts) 2006 2005 20041
Net Earned Premiums $ 20,760 $ 20,341 $ 19,038
Total Revenues $ 25,090 $ 24,365 $ 22,544
Operating Income2$ 4,200 $ 2,026 $ 895
Net Income $ 4,208 $ 1,622 $ 955
Net Income Per Diluted Common Share3$ 5.91 $ 2.33 $ 1.53
Total Investments $ 72,268 $ 68,287 $ 64,368
Total Assets $113,761 $113,187 $111,246
Shareholders’ Equity $ 25,135 $ 22,303 $ 21,201
Total Employees 32,800 31,900 30,800
Ron Patterson
President,
Ron Patterson Insurance
Agency, Inc.
Positioning the Travelers Brand
for the Future
In 2006, Travelers launched a significant
national advertising campaign to position
the company for the future. The campaign,
with its tag line “Insurance. In-synch.SM,”
builds on the company’s history of provid-
ing innovative insurance solutions and
stresses an ongoing commitment to antic-
ipating and responding to customers’
evolving insurance needs.
Beginning in June 2006, compelling,
eye-catching advertisements appeared
on national television, in business and
consumer publications and on the
Internet. The award-winning Web site,
www.travelersinsynch.com, offers visitors
the opportunity to participate in The
In-synch Challenge, an interactive safety
quiz about everyday household and small
business risks.
In early 2007, Travelers was presented
with the unique opportunity to bring
back the familiar red umbrella trademark.
For decades, the iconic symbol, associated
with Travelers, has been synonymous
with insurance protection and innovation.
The company is incorporating the umbrella
icon into all of its branding efforts.
In a bold move that was welcomed
throughout New England, the company
announced that it would become the title
sponsor of the Connecticut PGA TOUR
tournament. Renamed the Travelers
Championship, the 2007 tournament will
be hosted June 18 to 24 at the TPC River
Highlands in Cromwell, Conn. The event
will be televised live by CBS Sports and
The Golf Channel.
“The in-synch advertising campaign complements the
advertising we do in our local community newspaper and
our direct mail marketing campaigns. Travelers is definitely
helping us spread the Travelers brand and thus bringing
more quality customers to our agency.”
Ron Patterson
1Beginning on April 1, 2004, the results of operations and financial condition of The St. Paul Companies,
Inc. were consolidated with those of Travelers Property Casualty Corp. Accordingly, financial information
presented for the 12 months ended Dec. 31, 2004, reflects financial information for Travelers Property
Casualty Corp. for the three months ended March 31, 2004, and the consolidated accounts of
The St. Paul Companies, Inc. and Travelers Property Casualty Corp. for the subsequent nine months
ended Dec. 31, 2004.
2Operating income equals net income excluding the after-tax impact of net realized investment gains
(losses) and the after-tax impact of discontinued operations. After-tax net realized gains (losses) were
$8 million in 2006, $35 million in 2005 and $(28 million) in 2004, and the after-tax income (loss) from
discontinued operations was $0 in 2006, $(439 million) in 2005 and $88 million in 2004.
3Per diluted weighted average number of common shares outstanding.