Presentation
TRAVELERS
Investor Presentation -
L O N G - TERM FINANCIAL STRATEGY
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Generation of |
Balanced |
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Meaningful 
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top-tier earnings |
approach to |
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and sustainable |
and capital |
rightsizing capital |
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competitive |
substantially |
and growing book |
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advantages |
in excess of |
value per share |
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growth needs |
over time |
CREATE SHAREHOLDER VALUE
Objective: Mid-Teens Core ROE Over Time
2
INVESTING IN THE FUTURE INSIDE IMPROVING RESULTS
Chart
Technology Investments &
Routine but Necessary Expenditures
Strategic
Investment
Routine but
Necessary
Expenditures
2016 2017 2018 2019 2020 2021
- Meaningfully increased our overalltechnology spend over the last five years
- Significantlyreduced our expense ratio at the same time through our strategic focus on optimizing productivity and efficiency
- Improved the mix of our technology spend
- Increased our spending on strategic technology
initiatives by 50%
- Reduced routine but necessary expenditures
3
Accelerating Net Written Premium
Growth
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2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
INNOVATION SUCCESS
Improving Underlying Combined Ratio3
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93.0% |
AVG = 91.5% |
90.3% |
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2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
Improving Expense Ratio
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AVG = 31.7% |
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29.4% |
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2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
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Increasing Underlying Underwriting Income3 |
Increasing Cash Flow from Operations |
Growing Invested Assets4 |
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(after-tax) |
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Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
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2012-2016 |
2012-2016 |
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2012-2016 |
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4 |
1 |
Represents growth from 2012 through 2016 |
3 Excludes the impacts of catastrophes and prior year reserve development |
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2 |
Represents growth from 2016 through 2021 |
4 Invested assets excludes net unrealized investment gains (losses) |
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SELECT P&C PEERS - 10 YEAR CORE RETURN ON EQUITY
Tr a v e l e r s c o n s i s t e n t l y o u t p e r f o r m s p e e r g r o u p m e d i a n
Core ROE as Reported1
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2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
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1 |
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2 |
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TRV |
15.5 |
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TRV |
15.2 TRV |
13.3 |
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3 |
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TRV |
15.5 |
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4 |
TRV |
11.0 |
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TRV |
9.0 |
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TRV |
13.7 |
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5 |
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TRV |
10.7 |
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TRV |
11.3 |
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6 |
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TRV |
10.9 |
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7 |
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8 |
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9 |
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10 |
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11 |
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Median |
8.6 |
9.9 |
10.3 |
10.4 |
10.4 |
7.7 |
10.1 |
10.9 |
10.5 |
12.4 |
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TRV Rank |
4 |
2 |
3 |
2 |
2 |
4 |
5 |
6 |
5 |
4 |
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5 |
1 Operating ROE as Reported (or Net Income ROE ex-Realized Gains and Losses as calculated by Bloomberg if Operating ROE is not disclosed). |
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©️ |
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