Travelers 2010 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).
2010 FINANCIAL HIGHLIGHTS
2010 Consolidated Results of Operations
• Net income of $3.22 billion, or $6.69 per share basic and $6.62 diluted
• Net earned premiums of $21.43 billion
• Pretax catastrophe losses of $1.11 billion ($729 million after-tax)
• Pretax net favorable prior year reserve development of $1.25 billion ($818 million after-tax)
• GAAP combined ratio of 93.2%
• Pretax net investment income of $3.06 billion ($2.47 billion after-tax)
• Pretax net realized investment gains of $264 million ($173 million after-tax)
2010 Consolidated Financial Condition
• Total investments of $72.72 billion; fixed maturities and short-term securities comprise 94% of
total investments
• Total assets of $105.18 billion
• Total debt of $6.61 billion, resulting in a debt-to-total capital ratio of 20.6% (21.9% excluding
net unrealized investment gains (losses), net of tax)
• Repurchased 95.7 million common shares for total cost of $5.00 billion under share repurchase
authorization
• Shareholders’ equity of $25.48 billion; book value per common share of $58.47
• Holding company liquidity of $3.61 billion
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