Travelers 2008 Annual Report Download - page 81

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).
2008 FINANCIAL HIGHLIGHTS
2008 Consolidated Results of Operations
• Net income of $2.92 billion, or $4.90 per share basic and $4.82 diluted
• Net earned premiums of $21.58 billion
• Catastrophe losses of $1.41 billion pretax ($919 million after-tax)
• Net favorable prior year reserve development of $1.54 billion pretax ($1.00 billion after-tax)
• GAAP combined ratio of 91.9%
• Pretax net investment income of $2.79 billion ($2.30 billion after-tax)
• Net realized investment losses of $415 million pretax ($271 million after-tax)
2008 Consolidated Financial Condition
• Total investments of $70.74 billion; fixed maturities and short-term securities comprise 94% of
total investments
• Total assets of $109.75 billion
• Total debt of $6.18 billion, resulting in a debt to total capital ratio of 19.5%
• Repurchased 45.0 million common shares for total cost of $2.12 billion under share repurchase
authorization
• Shareholders’ equity of $25.32 billion; book value per common share of $43.12
• Holding company liquidity of $2.15 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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