Travelers 2011 Annual Report Download - page 4

  Annual Report
Financial results over time
The challenges presented in  highlight the importance
of our commitment to a longterm perspective  one of
Travelers’ hallmarks
 Operating return on equity As I have consistently stated
our fi nancial goal is to achieve a midteens operating return on
equity over time In that regard our average annual operating
return on equity was approximately  percent over the past
seven years  years that included Hurricanes Katrina Rita and
Wilma in  Ike Gustav and Dolly in  the economic
crisis that began in  and the spring tornadoes of  
tornadoes that if viewed as a single event and compared in
today’s dollars would represent the fi fth costliest weather
event in US history In that environment we are pleased with
our longterm results
As long as the interest rate environment or the frequency and
severity of catastrophe losses that the industry experienced in
 persists a fi rm such as ours would be hardpressed to earn
a midteens operating return on equity However we expect that
a midteens return should be achievable if conditions return to
more normalized levels by historical standards In any event we
believe that we are wellpositioned to perform among the very
best in the industry
 Financial strength ratings Travelers is one of the toprated
insurance companies in the property and casualty industry
Since  Travelers has improved its fi nancial strength
ratings substantially as a result of a number of rating increases
during a time when several of our competitors suff ered rating
downgrades  and some substantially so
On April   a series of F tornadoes devastated cities and towns
across central Alabama Within  hours Travelers claim professionals
were on the ground going door to door in many of the most heavily
aff ected areas to help our customers and agents
Travelers’ operational expertise enables us to quickly dispatch needed
personnel and resources to assist our customers and agents in disaster
areas Thousands of Travelers employees specially trained in catastrophe
response are prepared to deploy to a disaster site within  hours or
less The company’s Catastrophe Management Center directs response
activities while multiple call centers across the country and online loss
reporting ensure that customers can report their losses any time day or
night Travelers’ mobile claim offi ces  custombuilt RVs  immediately
deploy to aff ected communities so that responding claim specialists can
best attend to customer needs
Visit travelerscom/stormstories to view a series of brief videos that
capture our customers’ stories from the  Alabama tornadoes 
in their own words
 ALABAMA TORNADOES
In our customers’ own words
Ŵ“Still Standing with You” is the
story of how the storm affected
the communities of Tuscaloosa,
Birmingham and Cullman, told
from the point of view of Travelers
Business and Personal Insurance
customers, agents and employees.
Jon and Lisa Stewart,
Pleasant Grove homeowners
Debbie and Eric Jackson,
Pleasant Grove homeowners
Bruce and Shirley Stephenson,
Cullman homeowners
Glenn Wilson, Pastor, The Church
Without Walls, Tuscaloosa
Kim Arndt, commercial property
owner, Cullman
Kim Weaver, co-owner,
Al’s Dog House, Cullman
“The View from Main Street” provides
the perspective of our agents as
they discuss the storm and their
partnership with Travelers.