Travelers 2011 Annual Report Download - page 5

 Book value per share Our longterm capital management
strategy has been to use the capital we generate to fund the
needs of our insurance business When our capital exceeds
those needs we return the excess to our shareholders Since
we began our share repurchase program in May  we have
repurchased  percent of the company’s then outstanding
shares and over that time paid dividends that have grown at
an  percent compound annual growth rate on a per share
basis In all the company has returned almost  billion to
shareholders during this period
As refl ected in the chart above the resulting growth in book value
per share has been notable  from  per common share
on December   to  per common share on
December  
Long-term investments in our business
In our insurance businesses  net written premiums were
 billion up  percent from the prior year Within our business
we continue to focus on a number of longterm investments
 Personal Insurance Direct The development of this
business not only enables us to reach another market sector
but also allows us to focus on online services that today’s more
connected world demands Customers are expecting more
effi cient and intuitive technological solutions for interacting
with the company Because they are forming their impressions
of Travelers from those experiences we are implementing new
technological capabilities to enable customer choice as well as
to provide improved service
 International Over the past few years we have worked
to develop the company’s international operations and
capabilities Our investments and eff orts have provided a
stronger foundation upon which to grow One example of this
is our  joint venture with J Malucelli Participações em
Seguros e Resseguros SA Brazil’s market leader in surety
This is Travelers’ fi rst signifi cant venture into an emerging
international market and with Travelers’ assistance JMalucelli is
entering Brazil’s growing property and casualty market We are
pleased with our progress to date
 Public Policy In  our commitment to contributing
to public policy dialogue remained steadfast Advocating
for economic opportunity the Travelers Institute
®
held a
series of small business symposia entitled “Small Business 
Big Opportunity” to raise awareness of issues aff ecting small
business owners The Travelers Institute has partnered with
organizations and business groups across the country to elevate
the discussion Additionally the Travelers Institute continues
to address the issue of the availability and aff ordability of
insurance along the Gulf and Atlantic coasts
It is a fascinating time in the insurance industry
 one that is full of opportunities and challenges
In this dynamic environment our shareholders
can rely on Travelers to identify emerging issues
early take action to capitalize on opportunities
and respond to challenges as they arise
Book value per common share
Stock price 









Price to Book Ratio
BVPS CAGR: %
ŴGROWING BOOK VALUE PER COMMON SHARE
In the seven-year period between Dec. 31, 2004 and Dec. 31, 2011,
Travelers increased its book value per common share (BVPS) from
$31.35 to $62.32, which represents a compound annual growth
rate (CAGR) of 10.3 percent.
Letter to Shareholders 