Travelers 2012 Annual Report Download - page 3

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I am pleased to report that in a year of signifi cant challenges for our
industry we once again demonstrated the value of our consistent
strategy of managing the company for the long term and focusing
on producing top tier returns over time
Our business is confronted with a number of uncertainties  the
outlook for the economy in general and interest rates in particular
loss costs on the insurance products we sell competitive dynamics
in the marketplace and perhaps the largest driver of uncertainty
the potential for continuing adverse weather patterns We only
succeed if we are prepared for what might be and are reliable time and
again  especially under the most trying of circumstances In this
industry being prepared requires years of thoughtful planning based
on careful analysis of all available data and trends That kind of patient
and disciplined approach positions Travelers to deliver exceptional
service for our customers and healthy returns for our shareholders
Our response to Storm Sandy is a perfect example of our careful
approach The immense damage left in Sandy’s wake led to an
extraordinary number of claims industrywide including by our
policyholders We responded quickly in the days following the
storm as nearly  of our employees many of them also severely
aff ected helped many thousands more of our customers when they
needed us most
TO OUR SHAREHOLDERS
We accomplished this under very diffi cult circumstances Several
of our facilities in the aff ected areas were without power and many
of our employees and the infrastructure that supports them had
to be relocated literally overnight to temporary facilities Gasoline
was in short supply in the region so we provisioned tanker trucks
from unaff ected areas to keep our claim professionals on the road
Our customers’ experiences were made better and our losses were
mitigated by the fact that we responded to nearly every claim with
our own employees as opposed to relying on thirdparty adjusters
as is common in the industry particularly in such large events This
extraordinary response to such an extraordinary event requires
experienced talented and dedicated employees and years of
thoughtful preparation
In sum our  total catastrophe losses were  billion
pretax  billion aftertax which is a very high level by historic
standards and makes for severe levels of catastrophic weather
in four of the last fi ve years Throughout this period signifi cant
The Great Chicago Fire destroys  buildings leaves
 people homeless kills  people and causes
 million in property damage Unlike many of its
competitors the company pays all related claims in full

Travelers issues the fi rst automobile policy to Gilbert J Loomis
a mechanic who built a onecylinder car
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