Travelers 2009 Annual Report Download - page 84

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).
2009 FINANCIAL HIGHLIGHTS
2009 Consolidated Results of Operations
• Net income of $3.62 billion, or $6.38 per share basic and $6.33 diluted
• Net earned premiums of $21.42 billion
• Catastrophe losses of $457 million pretax ($297 million after-tax)
• Net favorable prior year reserve development of $1.33 billion pretax ($868 million after-tax)
• GAAP combined ratio of 89.2%
• Pretax net investment income of $2.78 billion ($2.29 billion after-tax)
• Net realized investment gains of $17 million pretax ($22 million after-tax)
2009 Consolidated Financial Condition
• Total investments of $74.97 billion; fixed maturities and short-term securities comprise 94% of
total investments
• Total assets of $109.56 billion
• Total debt of $6.53 billion, resulting in a debt-to-total capital ratio of 19.2% (20.3% excluding
net unrealized investment gains (losses), net of tax)
• Repurchased 69.4 million common shares for total cost of $3.30 billion under share repurchase
authorization
• Shareholders’ equity of $27.42 billion; book value per common share of $52.54
• Holding company liquidity of $2.14 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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