Travelers 2011 Annual Report Download - page 83

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).
2011 FINANCIAL HIGHLIGHTS
2011 Consolidated Results of Operations
• Net income of $1.43 billion, or $3.40 per share basic and $3.36 diluted
• Net earned premiums of $22.09 billion
• Catastrophe losses of $2.56 billion ($1.67 billion after-tax)
• Net favorable prior year reserve development of $715 million ($473 million after-tax)
• GAAP combined ratio of 105.1%
• Net investment income of $2.88 billion ($2.33 billion after-tax)
• Net realized investment gains of $55 million ($36 million after-tax)
• Operating cash flows of $2.17 billion
2011 Consolidated Financial Condition
• Total investments of $72.70 billion; fixed maturities and short-term securities comprise 93% of
total investments
• Total assets of $104.60 billion
• Total debt of $6.61 billion, resulting in a debt-to-total capital ratio of 21.3% (23.4% excluding
net unrealized investment gains, net of tax)
• Repurchased 51.0 million common shares for total cost of $2.90 billion under share repurchase
authorization
• Shareholders’ equity of $24.48 billion; book value per common share of $62.32
• Holding company liquidity of $2.39 billion
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