Travelers 2009 Annual Report Download - page 47

The Company’s ERM efforts build upon the foundation of an effective internal control
environment. ERM expands the internal control objectives of effective and efficient operations, reliable
financial reporting and compliance with applicable laws and regulations, to fostering, leading and
supporting an integrated, risk-based culture within the Company that focuses on value creation and
preservation. However, the Company can provide only reasonable, not absolute, assurance that these
objectives will be met. Further, the design of any risk management or control system must reflect the
fact that there are resource constraints, and the benefits must be considered relative to their costs. As a
result, the possibility of material financial loss remains in spite of the Company’s significant ERM
efforts. An investor should carefully consider the risks and all of the other information set forth in this
annual report, including the discussions included in ‘‘Item 1A—Risk Factors,’’ ‘‘Item 7A—Quantitative
and Qualitative Disclosures About Market Risk,’’ and ‘‘Item 8—Financial Statements and
Supplementary Data.’’
OTHER INFORMATION
Customer Concentration
In the opinion of the Company’s management, no material part of the business of the Company
and its subsidiaries is dependent upon a single customer or group of customers, the loss of any one of
which would have a material adverse effect on the Company, and no one customer or group of
affiliated customers accounts for 10% or more of the Company’s consolidated revenues.
Employees
At December 31, 2009, the Company had approximately 32,000 employees. The Company believes
that its employee relations are satisfactory. None of the Company’s employees are subject to collective
bargaining agreements.
Sources of Liquidity
For a discussion of the Company’s sources of funds and maturities of the long-term debt of the
Company, see ‘‘Item 7—Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources,’’ and note 8 of notes to the Company’s consolidated
financial statements.
Taxation
For a discussion of tax matters affecting the Company and its operations, see note 11 of notes to
the Company’s consolidated financial statements.
Financial Information about Reportable Business Segments
For financial information regarding reportable business segments of the Company, see ‘‘Item 7—
Management’s Discussion and Analysis of Financial Condition and Results of Operations,’’ and note 2
of notes to the Company’s consolidated financial statements.
Recent Transactions
For information regarding recent transactions of the Company, see ‘‘Item 7—Management’s
Discussion and Analysis of Financial Condition and Results of Operations.’’
Company Website and Availability of SEC Filings
The Company’s Internet website is www.travelers.com. Information on the Company’s website is not
incorporated by reference herein and is not a part of this Form 10-K. The Company makes available
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