Travelers 2007 Annual Report Download - page 80

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following is a discussion and analysis of the financial condition and results of operations of
The Travelers Companies, Inc. (together with its subsidiaries, the Company).
2007 FINANCIAL HIGHLIGHTS
2007 Consolidated Results of Operations
• Income from continuing operations and net income of $4.60 billion, or $7.04 per share basic and
$6.86 diluted
• Net favorable prior year reserve development of $546 million pretax ($351 million after-tax)
• Net earned premiums of $21.47 billion
• GAAP combined ratio of 87.4%
• Pretax net investment income of $3.76 billion ($2.92 billion after-tax)
• Pretax net realized investment gains of $154 million ($101 million after-tax)
2007 Consolidated Financial Condition
• Total assets of $115.22 billion
• Total investments of $74.82 billion, up $2.55 billion from December 31, 2006; fixed maturities
and short-term securities comprise 94% of total investments
• Total debt of $6.24 billion, resulting in a debt to total capital ratio of 19.4%
• Repurchased 56.0 million common shares for total cost of $2.95 billion under share repurchase
authorization
• Shareholders’ equity of $26.62 billion, up $1.48 billion from December 31, 2006; book value per
common share of $42.22, up 15% from December 31, 2006
• Holding company liquidity of $1.62 billion
CONSOLIDATED OVERVIEW
The Company provides a wide range of property and casualty insurance products and services to
businesses, government units, associations and individuals, primarily in the United States and in
selected international markets.
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