Travelers SASB Report 2023

Travelers Sustainability

Accounting Standards

Board Report 2023

In addition to providing wide-ranging disclosure on our website regarding our approach to sustained value creation, which integrates

environmental, social and governance factors, The Travelers Companies, Inc. (together with its consolidated subsidiaries, Travelers, or

the Company) is providing the following disclosures, which are aligned with the Sustainability Accounting Standards Board (SASB)

Standards for the insurance industry. Travelers is a leading provider of commercial, personal and specialty insurance products and

services to businesses, government units, associations and individuals. Because Travelers is a property and casualty insurance company,

this report does not address any metrics requesting information regarding other types of insurance products (e.g., life insurance).

I. Sustainability Disclosure Topics & Accounting Metrics

TOPIC CODE ACCOUNTING METRIC PAGE REFERENCE

Transparent Information &

Fair Advice for Customers

FN-IN-270a.1 Total amount of monetary losses as a result of legal proceedings

associated with marketing and communication of insurance product-

related information to new and returning customers

Page 2

FN-IN-270a.2 Complaints-to-claims ratio Page 2

FN-IN-270a.3 Customer retention rate Page 3

FN-IN-270a.4 Description of approach to informing customers about products Page 3

Incorporation of

Environmental, Social &

Governance Factors in

Investment Management

FN-IN-410a.2 Description of approach to incorporation of environmental, social

and governance (ESG) factors in investment management processes

and strategies

TCFD Report - Strategy /

Impact of Climate-Related

Risks and Opportunities on

Travelers' Business and

Strategy / Incorporating

Climate Considerations Into

Our Investment Process

Policies Designed

to Incentivize

Responsible Behavior

FN-IN-410b.1 Net premiums written related to energy efficiency and low

carbon technology

Page 6

FN-IN-410b.2 Discussion of products and/or product features that incentivize

health, safety, and/or environmentally responsible actions and/

or behaviors

Page 6

Financed Emissions

FN-IN-410c.1 Absolute gross financed emissions, disaggregated by (1) Scope 1, (2)

Scope 2 and (3) Scope 3

TCFD Report / Greenhouse

Gas (GHG) Emissions /

Measuring GHG Emissions

Associated with Our

Investment Portfolio / Results

FN-IN-410c.2 Gross exposure for each industry by asset class TCFD Report / Greenhouse

Gas (GHG) Emissions /

Measuring GHG Emissions

Associated with Our

Investment Portfolio / Results

FN-IN-410c.3 Percentage of gross exposure included in the financed

emissions calculation

TCFD Report / Greenhouse

Gas (GHG) Emissions /

Measuring GHG Emissions

Associated with Our

Investment Portfolio / Results

FN-IN-410c.4 Description of the methodology used to calculate financed emissions TCFD Report / Greenhouse

Gas (GHG) Emissions /

Measuring GHG Emissions

Associated with Our

Investment Portfolio / Results

Physical Risk Exposure

FN-IN-450a.1 Probable Maximum Loss (PML) of insured products from weather-

related natural catastrophes

Page 10

FN-IN-450a.2 Total amount of monetary losses attributable to insurance payouts

from (1) modeled natural catastrophes and (2) non-modeled natural

catastrophes, by type of event and geographic segment (net and

gross of reinsurance)

Page 12

FN-IN-450a.3 Description of approach to incorporation of environmental risks into

(1) the underwriting process for individual contracts and (2) the

management of firm-level risks and capital adequacy

TCFD Report / Risk

Management

Systemic Risk Management

FN-IN-550a.1 Exposure to derivative instruments by category: (1) total exposure

to non-centrally cleared derivatives, (2) total fair value of

acceptable collateral posted with the Central Clearinghouse and (3)

total exposure to centrally cleared derivatives

Page 15

FN-IN-550a.2 Total fair value of securities lending collateral assets Page 16

FN-IN-550a.3 Description of approach to managing capital- and liquidity-related

risks associated with systemic non-insurance activities

Page 16

The inclusion of information in this report should not be construed as a characterization regarding the materiality or financial impact (or potential impact) of that information. For additional information

regarding Travelers, please see our current and periodic reports with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Travelers Sustainability Accounting Standards Board Report 2023 1

II. Activity Metric

CODE ACTIVITY METRIC PAGE REFERENCE

FN-IN-000.A

Number of policies in force, by segment: (1) property and

casualty, (2) life, (3) assumed reinsurance

Page 17

III. Discussion & Explanations of Accounting & Activity Metrics

Transparent Information & Fair Advice for Customers

FN-IN-270a.1

Total amount of monetary losses as a result of legal proceedings associated with

marketing and communication of insurance product-related information to new and

returning customers

In accordance with Securities and Exchange Commission requirements, Travelers discloses all material legal proceedings, other than

ordinary routine litigation incidental to the business, in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. In

2023, legal proceedings and/or losses, if any, associated with marketing and communication of insurance product-related

information were de minimis.

FN-IN-270a.2

Complaints-to-claims ratio

Travelers provides a wide range of commercial and personal property and casualty insurance products primarily through its

insurance subsidiaries. Our domestic insurance subsidiaries are subject to insurance regulation in the various states and

jurisdictions where they transact business. Most state insurance departments provide consumer complaint data to the National

Association of Insurance Commissioners (NAIC), and the NAIC produces several reports combining this data. Neither the NAIC nor

Travelers, however, calculates a complaints-to-claims ratio. We do not believe a complaints-to-claims ratio is a meaningful

metric for assessing a company’s claim handling process. For example, companies may track open and closed claims differently,

which could result in a comparison that is not meaningful.

Additionally, a complaint may be received years after a claim is closed, which could overstate a company’s complaints-to-claims

ratio for that reporting period. A complaints-to-claims ratio also would not account for variations in an underwriting company’s

concentration of lines of business or market share, which further diminishes the usefulness of the metric.

The NAIC does provide a resource regarding complaints through its Consumer Insurance Search (CIS) site, which receives

complaint information from the state insurance departments. While the NAIC provides a number of reports through CIS for

complaint trends, the NAIC data does not provide one metric for all of Travelers’ underwriting companies combined. We note that

the NAIC’s current methodology for calculating the Company Complaint Index, which compares a company’s performance (such

as that of Travelers) to other companies in the market, may also skew the index for an underwriting company with little or no

written premium, for example. Accordingly, a Company Complaint Index may appear to be higher than the industrywide National

Complaint Index even when the company received a minimal number of complaints. For this reason, we do not believe that CIS’s

current Company Complaint Indexes of Travelers’ underwriting companies provide meaningful information for our investors or

other stakeholders.

Travelers Sustainability Accounting Standards Board Report 2023 2

FN-IN-270a.3

Customer retention rate

We routinely monitor our customer retention rates for all lines of business, except for surety and other products that are generally

sold on a non-recurring, project-specific basis.

We report our retention rates as part of our quarterly earnings webcast using a methodology that we believe is meaningful for our

investors and other users of our financial information. Our methodology does not adjust the calculation for involuntarily

terminated customers, as provided for by the SASB methodology; this generally results in a lower reported retention rate for our

business than if we had adjusted for these customers in accordance with the SASB methodology. We also report select business

groups in our Business Insurance and Bond & Specialty Insurance segments using customer relationship premium as our metric

rather than policy counts, which are used for our Personal Insurance segment, as we believe this is a more meaningful measure with

respect to business customers. This approach is consistent with our approach for financial reporting. The following provides a

summary of our retention rates by relevant business group as reported as of December 31, 2023.

BUSINESS GROUP 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23

Domestic Business Insurance

(excluding National Accounts)

87% 86% 86% 87% 87% 87% 87% 87%

Domestic Business Insurance:

Select Accounts

83% 83% 83% 83% 85% 85% 85% 85%

Domestic Business Insurance:

Middle Market

89% 88% 89% 90% 89% 89% 89% 90%

Domestic Bond & Specialty

Insurance: Management Liability

85% 88% 89% 90% 89% 91% 91% 90%

Domestic Personal

Insurance:

Automobile

85% 84% 84% 83% 82% 82% 82% 82%

Domestic Personal Insurance:

Homeowners and Other

85% 85% 85% 85% 84% 84% 84% 84%

Total International Insurance

81% 85% 80% 84% 84% 85% 84% 84%

This ratio excludes surety and other products that are generally sold on a non-recurring, project-specific basis. International Insurance also excludes the 2023 quota share arrangement with Fidelis.

This ratio represents the expected number of renewal policies that will be retained throughout the annual policy period to the number of available renewal base policies.

Note: Statistics are in part dependent on the use of estimates and are therefore subject to change.

FN-IN-270a.4

Description of approach to informing customers about products

Travelers provides a wide range of commercial and personal property and casualty insurance products and services to businesses,

government units, associations and individuals. Travelers has established comprehensive policies and procedures designed to

ensure that the information we provide to existing and potential customers is transparent, complete and easy to comprehend. The

relevant business unit, Communications group and Legal department are all involved in the preparation and review of

communications disseminated to customers or prospective customers that describe Travelers’ product offerings.

Travelers Sustainability Accounting Standards Board Report 2023 3

Since Travelers has a wide range of customers, this information is

tailored to meet the needs of the particular customer (taking into

account, for example, whether the customer is an individual or a

business). The information we provide may include the specific

product and policy scope, terms and conditions and the suitability

of the product for the customer’s needs, as well as other relevant

information. This information may also include industry- and

exposure-related materials, risk management support, and other

general information about Travelers, our brand and/or our

financial strength.

We communicate with our existing and potential customers

directly through our employees and indirectly through our agent

and broker partners. Our agent and broker partners are

instrumental in providing information and advisory assistance to

both existing and potential policyholders. We also use other

channels to communicate with our existing and potential

customers, such as (1) direct mailings and email, (2) our

website, Travelers.com, (3) social media and (4) advertising

and promotional materials.

The following discussion summarizes how we communicate with

our customers in each of our three business segments: (1)

Personal Insurance, (2) Business Insurance and (3) Bond &

Specialty Insurance. In addition, we describe the communication

approach of our Claim Services organization.

Individual Customers

Our individual customers purchase products that are reported in

our Personal Insurance segment. In Personal Insurance, we are

focused on the end-to-end customer experience and strive to

continually improve that experience. We believe that

transparency is a fundamental element of a good customer

experience and is accomplished by providing information in a

clear manner for consumers who may not have insurance

industry-specific knowledge.

We have invested, and continue to invest, in core capabilities

that are designed to improve the level of transparency with our

individual customers and will allow us to communicate with our

customers in a more personalized fashion. Our investments

include the following:

MyTravelers

Customer Website and the MyTravelers

Mobile App. At MyTravelers.com, and in our MyTravelers

mobile app, customers can make payments, view or change

policy information, report and track the status of a claim,

download auto ID cards, request roadside assistance and

otherwise manage their insurance policies. Both are available

24/7 and enable our customers to manage their insurance

needs more quickly and conveniently. In addition, through this

robust digital experience, we provide our customers with

explanations about our insurance products and coverage using

easy-to-understand language and, in some cases, video content.

Home Insurance Summary Page. Travelers’ Quantum

Home 2.0

insurance packages include a page designed to

educate and inform customers about some of the basic terms

and coverages included in their policies. The summary page

features an illustration of a home and allows customers to

explore their coverage in an engaging way. The page describes

major coverages in easy-to-understand language. It also shows

which discounts are currently applied to a policy and which are

not. In addition, the page provides a high-level view of what is

and is not typically covered by homeowners insurance in

plain language.

Insurance Essentials: Your Questions Answered. As part of

our commitment to customers, both existing and potential, the

Travelers Institute (the public policy division of Travelers) has

an initiative called Insurance Essentials: Your Questions

Answered to help consumers make informed decisions about

their personal insurance options. The initiative was introduced

following Superstorm Sandy and other extreme weather events,

which demonstrated that many consumers need, or want, more

help understanding their insurance policies and options. This

initiative includes an educational Insurance Essentials Guide

that covers topics such as how insurance works, types of

homeowners and auto insurance coverages, condominium and

renters insurance, wedding insurance, flood insurance, limits and

deductibles, and basic disaster preparedness. Further, the

Travelers Institute partners with independent insurance agents

to bring an educational symposium series to their communities,

also addressing local issues such as wildfires and hurricanes.

Travelers Home Central. Travelers Home Central is a set of

online tools and resources that provides information about

moving, refinancing, buying and remodeling a home. The content

is designed to help our current and future customers protect

themselves, feel more confident in making difficult choices and

better understand the risks involved with being a homeowner.

These digital experiences are offered to the majority of our

customers regardless of how they bought their policies (i.e.,

direct, affinity relationship or independent agent).

Travelers Sustainability Accounting Standards Board Report 2023 4

Business Customers

Our business customers purchase products that are reported in the

Business Insurance or the Bond & Specialty Insurance business

segments. Business Insurance products include more than

insurance policies; business customers also purchase supplemental

services, such as risk control and claim handling services.

Business customers have varying levels of sophistication and

often have dedicated risk management teams or departments

and legal representation when negotiating insurance contracts,

reviewing insurance policies and terms and managing the

insurance relationship once a policy is purchased. Our business

customers are also typically represented by independent,

professionally licensed insurance producers in the procurement

of insurance coverage. As a result, the vast majority of our

dealings in the negotiation of insurance contracts are with the

insured’s or potential insured’s representative. This remains true

after the sale of a policy, as well. The independent producer is

also generally involved even when we directly communicate with

an insured or prospective insured.

Our methods and channels of communication with our business

customers take into account their level of sophistication and the

resources they have available and include:

Travelers.com Product-Specific Pages. We have website pages

that provide an overview of product offerings by industry and,

where applicable, expanded Insights & Expertise content. The

information provided includes explanations of industry-specific

coverage available, as well as ways to mitigate and manage the

risk associated with these industries.

MyTravelers

for Business. MyTravelers for Business offers

customers online access to policy, billing and claim information. In

addition, customers can access our collection of safety resources

to help them better understand, mitigate and manage risk.

Risk Management Information Services (e-CARMA®).

For our larger customers with more sophisticated or complex

operations, we offer e-CARMA, a comprehensive and

customizable analysis tool that makes accessing loss information

faster and easier. This allows our customers to make timely and

informed decisions to keep their businesses running smoothly.

For Agents Portal. We offer a tailored portal for our agents and

partners, recognizing that they provide counsel and guidance

throughout all aspects of a customer’s experience with

Travelers. The For Agents portal provides access to our product

and market information, tools for quoting and issuing policies,

billing and policy services, claim and risk control information and

marketing tools.

Webinars and Conference Educational Sessions. We offer

in-depth presentations that feature specialists and subject matter

experts who explore topics and trends and provide ways to help

mitigate risks. Further, the Travelers Institute convenes business

owners across the country with industry experts to explore

solutions to their everyday challenges, such as business continuity

planning, access to capital and cybersecurity, through two

dedicated symposium series: Small Business – Big

Opportunity

and Cyber: Prepare, Prevent, Mitigate, Restore

The Travelers Institute also explores pressing topics in insurance,

business and leadership through the Wednesdays with

Woodward

webinar series.

Videos. We offer short-form content that provides visual

examples and information, primarily related to our products and/

or loss prevention; topics covered include, for example, the

Travelers Early Severity Predictor

, trends in manufacturing and

risks in crane operations.

Product and Marketing Materials. Our electronic and printed

materials detail specific product offerings and include product

highlight sheets, coverage checklists, policy benefits, risk

scenarios and thought leadership white papers.

Claim Services

Whether an insurance policy is sold to an individual or to a

business, the policy represents a promise to indemnify the

customer in the event of a covered loss. Our overarching

imperative is to pay what we owe. Our claim process includes

timely identification and communication of all applicable

coverages and limits; informing our customers about the scope of

their coverage is an important part of that process. We

communicate with our customers through a variety of channels,

including our website, Travelers.com; our mobile app and

customer portal, MyTravelers; letters; emails; and text messages

and telephone conversations with our Claim professionals. In

addition, for certain claim types, Travelers loss consultants are

available to provide our customers with information about

coverage, deductibles and probable impact to loss history before

a claim is filed to help them make an informed decision about

whether to file a claim.

Travelers Sustainability Accounting Standards Board Report 2023 5

We continue to expand the availability of digital tools that provide

claim status updates and facilitate communication with Claim and

medical professionals throughout the claim process. These tools

provide access to medical and physical damage reports and

payments issued and allow for secure communications with Claim

and medical professionals.

Each Claim professional is trained on payment processes and

accountable for explaining those processes to customers along

with any relevant informational documentation. Customers may

dispute the resolution of their claim at any time, following which we

will conduct a review of the file to ensure that the claim was

properly handled.

Incorporation of

Environmental, Social &

Governance Factors in

Investment Management

FN-IN-410a.2

Description of approach to incorporation of

environmental, social and governance (ESG)

factors in investment management

processes and strategies

For information responsive to FN-IN-410a.2, please see the

Strategy / Impact of Climate-Related Risks and Opportunities on

Travelers' Business and Strategy / Incorporating Climate

Considerations Into Our Investment Process section of our

TCFD Report.

Policies Designed to

Incentivize Responsible

Behavior

FN-IN-410b.1

Net premiums written related to energy

efficiency and low carbon technology

Travelers notes that the separate identification of premiums related

to energy efficiency and low carbon technology risks is dependent

on whether those risks are separately rated (and priced) from the

other risks included in a policyholder’s total coverage. Currently, we

do not capture premium data based on energy efficiency and low

carbon technology. We currently capture premium data by line of

business and by state, as required by our insurance regulators.

We believe Travelers is positioned to benefit from the increased

economic activity related to renewable energy by insuring more

offshore wind projects globally. We participate in the insurance

programs for U.S. offshore wind farm projects along the Eastern

Seaboard, as well as onshore and offshore wind projects

throughout Asia, Europe, the United Kingdom, Mexico and

Canada, with our unique coverages written through Travelers

Lloyd's Syndicate 5000. Since we first began collecting separate

data for our Global Renewable Energy Practice in 2018, the

business has grown at a compound annual growth rate of 27%,

with revenue up 236%.

FN-IN-410b.2

Discussion of products and/or product

features that incentivize health, safety, and/

or environmentally responsible actions and/

or behaviors

Travelers offers several products and services with features that are

designed to incentivize health, safety, and/or environmentally

responsible actions or behaviors.

Health & Safety

As a leading workers compensation carrier, we offer various

products and services designed to maximize employee health, help

ensure workplace safety and, when work-related injuries do occur,

enable injured employees to return to work as soon as medically

appropriate. We also have products and services in our other

commercial and personal insurance lines to inform the safety of our

customers and our customers’ employees.

Early Severity Predictor

. By analyzing claim data, Travelers

created the Early Severity Predictor model that can help identify

an injured employee’s likelihood of experiencing chronic pain using

weighted predictors at key points during the life of a claim. By

adjusting medical care and resources, the Early Severity Predictor

model can help address potential drivers of chronic pain – a

condition that is largely treated with opioids or other painkillers –

reducing the risk of opioid addiction. Since its inception in 2015, our

Early Severity Predictor model has benefited more than

110,000 injured employees. In addition to improving the recovery

experience for tens of thousands of injured employees, the

program has resulted in loss cost savings of more than $150 million

by helping reduce surgeries performed and opioids prescribed.

Today, we apply this model to all of the lost-time workers

compensation claims we receive.

Travelers Sustainability Accounting Standards Board Report 2023 6

Injured Employee Portal. Responding to the evolving needs of

our customers and their injured employees, we have made

numerous investments in our workers compensation claim

handling model, TravComp

. For example, we introduced our

self-service workers compensation claim portal, MyTravelers

for Injured Employees. Through this innovative platform, injured

employees are empowered to engage in their return-to-work

journey and interact with us digitally throughout the claim

process. In-portal claim notifications, messaging with Claim and

medical professionals, two-way document sharing and tailored

digital content help ensure we quickly get the right claim

information into the hands of injured employees.

Helping Injured Employees Return to Work. When an

employee is injured at work, navigating the claim process can be

challenging. A one-on-one connection between a nurse and the

injured employee, pioneered by the Travelers ConciergeCLAIM

Nurse program, helps injured employees access quality health

care, stay engaged in the workforce and return to work as soon

as medically appropriate. By placing nurse case managers in

local health care clinics across the country, we can offer this

service to all our customers. When the Travelers

ConciergeCLAIM Nurse program is used, overall claim costs and

the days out of work are reduced.

This program can also be paired with our Cultural Advantage

program and align a Spanish-speaking injured employee with a

Spanish-speaking nurse to build trust and improve outcomes.

On average, when we provide Spanish-language workers

compensation Claim and medical professionals, we see a

reduction in lost time and claim, legal and medical expenses,

with improved medical and return-to-work outcomes. For

example, in our Southern California Claim Center, workers

compensation claims handled by culturally and linguistically

aligned Claim professionals through our Cultural Advantage

program saw an 8% reduction in total claim payout, a

14% lower rate of attorney involvement and a

16% improvement in return to work within 30 days.

Employers can also help injured employees avoid opioid

dependency and other barriers to a successful return to work by

implementing a post-injury management strategy. This is a key

part of the Travelers Corridor of Care

process, which takes a

systematic and positive approach to handling employee injuries.

This process, which is designed to assist employers in

supporting injured employees from the moment they are injured

through their return to work, can help employees receive

prompt, quality medical care; facilitate collaboration among the

employee, the employee’s medical provider, the employer and

the insurance professional; and, with an effective

transitional-duty program, help build employee morale, keep

injured workers connected to the workforce and help them

transition back to work as soon as medically appropriate.

Biopsychosocial Approach to Claim Handling. Our

application of a biopsychosocial approach to claim handling

helps us understand, identify and acknowledge the many factors

involved in an individual’s recovery after an injury or illness. The

application of this approach engages employees in managing

their recovery, leading to a reduction in chronic pain and

unnecessary medical treatments, and results in a more likely

return to work as soon as medically appropriate.

Industrial Hygiene Laboratory. The Travelers Industrial

Hygiene (IH) Laboratory, nationally accredited by the American

Industrial Hygiene Association, provides specialized services to

assess employee exposures to potentially harmful

environments and work toward the prevention of occupational

illnesses. The IH Laboratory supports our field organization and

offers our commercial customers a wide array of sampling and

analysis protocols based on Occupational Safety and Health

Administration (OSHA) and National Institute for Occupational

Safety and Health methodologies. The IH Laboratory, equipped

to analyze more than 500 chemicals, performs more than

30,000 analyses on approximately 20,000 samples annually.

The experienced staff develops innovative analytical methods

and recommends products and services for monitoring

workplace environments and helping customers improve the

health and safety of their employees.

Ergonomics Initiative. Musculoskeletal disorders resulting

from job demands, workstation arrangement or work habits can

lead to serious health issues that can impair an employee’s

ability to work safely and comfortably. By using the full range of

our ergonomics services, we can collaborate with our insureds

on-site or remotely to help reduce the risk of injury and related

costs. Our staff of dedicated certified ergonomists and our field

consultants focus on helping customers identify and reduce

significant risk factors for workplace injuries related to

musculoskeletal disorders.

Travelers was the first insurance carrier to offer its business

customers both virtual and on-site ergonomic assessments by

ergonomists using an artificial intelligence (AI)-enhanced tool

to help quantify task characteristics such as postures, direction

of movement and distances. Using a video of a worker

performing a task, the software assists a Travelers ergonomics

professional with developing consultative solutions that can

help keep workers safe.

Travelers Claim Data – Accident Years 2014-2023, evaluated at 12 months.

Travelers Sustainability Accounting Standards Board Report 2023 7

Our core consulting services include:

• Ergonomic assessments, which leverage AI-enhanced video

capabilities, to help identify the “vital few” tasks with the

highest potential for reducing employee injuries.

• The Ergonomic Job Improvement Process, our four-phase

process to help customers self-identify and address key

ergonomic issues using a team approach.

• Ergonomic task force development assistance to empower

teams to make workplace ergonomic improvements through

employee engagement.

In addition to our on-site services, our ergonomics specialists

provide on-demand virtual consulting to customers to help

them assess their risks and offer effective solutions.

Crane Safety Training Programs. Cranes are one of the most

dangerous and expensive pieces of equipment found on

construction job sites. When a crane fails, workers and bystanders

can be seriously injured or killed, property can be damaged, and

production deadlines and budgets can be negatively impacted.

Having a knowledgeable crane operations team that is well versed

in crane safety is critical. Travelers has numerous crane safety

training programs and resources to help contractors and their

staff learn how to operate cranes safely. Travelers has trained

more than 10,000 professionals in crane safety.

Fire Protection System Impairment Management Tool.

Available on our secure MyTravelers for Business website, this

tool is designed to help customers record and communicate

with Travelers when a sprinkler system, fire pump, special

extinguishing system or other fire protection system

component is out of service. Customers can track impairments

at multiple properties and get reminder emails to help return a

system back to service in a timely manner, helping to protect

their business and employees.

Safe Driving. Our Risk Control staff works with customers to

help them manage employee drivers to improve their on-the-

road safety performance. Our staff also provides safety

resources to personal and business drivers to help them

become safer, more aware drivers. Travelers Risk Control also

promotes safe driving through: (1) our dedicated staff of

transportation safety specialists; (2) customer outreach with

our Lives@Risk program, which is designed to build awareness of

common distractions that can affect a driver’s ability to focus on

the task of driving; and (3) supporting enterprise-wide

education efforts, such as the Travelers Institute Every Second

Matters

education campaign to combat distracted driving.

We also incentivize safe driving behaviors for our personal

insurance customers through IntelliDrive

, a mobile-app

telematics program that allows customers to better understand

their driving habits by collecting and assessing data on behaviors

such as hard braking, rapid acceleration, speed, the time of day

customers drive and distracted driving. IntelliDrive, which

captures driving information for all enrolled drivers in the

household for 90 days to determine their overall driving

performance, allows customers to influence their auto insurance

premium according to how they drive. In most states, customers

with safe driving behaviors can see savings of up to 30% on their

auto premiums at renewal, as well as savings of up to 10% for

new customers at the time of enrollment. In most states, riskier

driving habits can result in higher premiums. Our IntelliDrive app

allows customers to more easily monitor driving performance,

challenges drivers to limit phone use while driving with the new

“Distraction-Free Streak,” and provides users with content from

the Travelers Institute Every Second Matters initiative,

including tips and advice to encourage safer driving behaviors.

IntelliDrive

is currently available in 43 states and Canada.

Building on the success of the IntelliDrive program, in 2021

Travelers introduced IntelliDrivePlus

in three states.

IntelliDrivePlus is a continuous driving program that uses a

smartphone app to capture data relating to driving behavior and

miles driven and adjusts a customer’s rate based on how and

how much they drive. By enrolling, new customers could save up

to 12% on their car insurance policy’s first term. At renewal, safe

driving habits can lead to savings of up to 30%, plus additional

savings for lower mileage, while riskier driving and higher

mileage could lead to higher premiums.

In 2022, we continued to evolve our IntelliDrive program by

introducing IntelliDrive via connected vehicles. Available in three

states, this offering:

• Enables eligible connected vehicles to capture driving data

beginning from the point of sale, rather than requiring

participation through a mobile app.

• Gives customers the opportunity to realize the full benefit of

their safe driving immediately, while increasing premiums for

riskier drivers up front, as well.

Everyday Safety. Through Travelers’ online resource Prepare &

Prevent, Travelers Risk Control provides our customers and

communities with risk management information applicable to a

wide variety of everyday concerns. In a typical day, people

encounter an array of risks, from driving a car to using a ladder to

making an online purchase with a credit card, each of which has

its own associated risks. Risk Control helps explain the risks we

may face in our daily lives and provides practical insights on how

Travelers Sustainability Accounting Standards Board Report 2023 8

to help reduce exposure to personal injury or property damage.

Understanding everyday risks enables us to take actions to avoid

or manage them. In addition to resources provided by Travelers

Risk Control, the Travelers Institute addressed various health

and safety issues through its Wednesdays with Woodward

webinar series, from workforce wellbeing to distracted driving.

Environmental Responsibility

As a core part of our business, we continually monitor, assess

and respond not only to the risks but also to the opportunities

posed by changing climate conditions. As a result, we have

identified several business opportunities associated with more

environmentally friendly trends and provide products and

product features that address our customers’ evolving needs

and incentivize responsible environmental behavior, while being

priced to meet our long-term financial objectives.

Discounts. We offer discounts where permissible to incentivize

environmentally responsible behavior – specifically, to

encourage adoption of FORTIFIED Home™ construction, green

buildings and hybrid-electric vehicles. For example, customers

in Personal Insurance can save up to 5% for homes that are

Leadership in Energy and Environmental Design (LEED) certified.

Additionally, we offer Personal Insurance customers a discount

if they own or lease a hybrid or electric vehicle. We also offer a

discount of up to 10% for hull and liability coverages on hybrid

boats and yachts, as well as a discount of up to 10% for electric

boats run by motors instead of engines – in each case, available

in certain states and subject to individual eligibility.

Furthermore, in many states, our newest homeowners program

offers a discount of up to 18% on hurricane premium for homes

built to the Insurance Institute for Business & Home Safety

(IBHS) FORTIFIED Gold™ standard. In Alabama, depending on

the location, the discount can be up to 55% on hurricane

premium for this designation.

Green Building Coverages. For our Business Insurance

customers, Travelers offers multiple options for green building

coverages. One example, Travelers Deluxe

property insurance,

offers “Green Building Alternatives – Increased Cost” coverage

to pay for additional costs incurred to repair or replace damaged

buildings using “green” products and materials.

Global Renewable Energy Practice. Travelers’ deep

knowledge of renewable energy risks means we can deliver a full

range of tailored coverage solutions for businesses across the

renewables spectrum, from the investors and developers to

operations and maintenance of commercial and utility-scale

operations. As the renewable energy industry, domestically and

internationally, continues to expand, this practice analyzes

industry trends, market data and loss trends to design and

develop insurance products tailored to specific needs of

renewable energy businesses. For example, our proprietary

WindPak

and SolarPak

insurance products respond to unique

coverage issues for the wind and solar energy industries.

Sponsorships and Partnerships. Travelers sponsors the IBHS,

the BuildStrong Coalition, Habitat for Humanity

, SBP and the

Wharton Risk Center to promote stronger building codes and

more resilient communities and to influence industry standards

and best practices. We participate on the board of IBHS, an

independent, nonprofit, scientific research organization

supported by the insurance industry. IBHS translates top-tier

research into action to strengthen homes and businesses,

inform the insurance industry and increase community

resiliency. Over the last decade, IBHS has identified gaps

through full-scale laboratory testing at its state-of-the-art

facility and has influenced changes to existing building code

standards and best practices to mitigate potential losses.

Through our research partnership with IBHS, we have gained a

better understanding of severe wind, hail and fire impacts on

building engineering standards. Better science, testing and

understanding lead to improved building codes and standards.

The IBHS FORTIFIED™ building code standards were developed

based on full-scale performance testing in the laboratory. As

noted earlier, at Travelers, mitigation discounts are available in

many states for homes designated as FORTIFIED by IBHS.

Educational Resources and Real-Time Tips. Through the

Prepare & Prevent section of our corporate website, we provide

customers, agents and brokers and the general public with

extensive educational resources to help them plan for, stay safe

during and recover from natural disasters of all types. Business

Insurance customers, agents and brokers can access our

collection of more than 1,000 safety and loss control resources

on the MyTravelers for Business site. We also provide bulletins

and mitigation tips to our clients prior to and during events.

Financed Emissions

FN-IN-410c.1

Absolute gross financed emissions,

disaggregated by (1) Scope 1, (2) Scope 2

and (3) Scope 3

For information responsive to FN-IN-410c.1, please see the

Greenhouse Gas (GHG) Emissions / Measuring GHG Emissions

Associated with Our Investment Portfolio / Results section of

our TCFD Report.

Travelers Sustainability Accounting Standards Board Report 2023 9

FN-IN-410c.2

Gross exposure for each industry by

asset class

For information responsive to FN-IN-410c.2, please see the

Greenhouse Gas (GHG) Emissions / Measuring GHG Emissions

Associated with Our Investment Portfolio / Results section of

our TCFD Report.

FN-IN-410c.3

Percentage of gross exposure included in

the financed emissions calculation

For information responsive to FN-IN-410c.3, please see the

Greenhouse Gas (GHG) Emissions/Measuring GHG Emissions

Associated with Our Investment Portfolio/Results section of

our TCFD Report.

FN-IN-410c.4

Description of the methodology used to

calculate financed emissions

For information responsive to FN-IN-410c.4, please see the

Greenhouse Gas (GHG) Emissions / Measuring GHG Emissions

Associated with Our Investment Portfolio / Results section of

our TCFD Report.

Physical Risk Exposure

FN-IN-450a.1

Probable Maximum Loss (PML) of insured

products from weather-related natural

catastrophes

We use various analyses and methods, including proprietary and

third-party modeling processes, to make underwriting and

reinsurance decisions designed to manage our exposure to

catastrophic events. There are no industry-standard

methodologies or assumptions for projecting catastrophe

exposure. Accordingly, catastrophe estimates provided by

different insurers may not be comparable.

We actively monitor and evaluate changes in third-party models

and, when necessary, calibrate the catastrophe risk model

estimates delivered via our own proprietary modeling

processes. We consider historical loss experience, recent

events, underwriting practices, market share analyses, external

scientific analyses and various other factors, including non-

modeled losses, to refine our proprietary view of catastrophe

risk. These proprietary models are updated regularly as new

information and techniques emerge.

Travelers Sustainability Accounting Standards Board Report 2023 10

The table below sets forth, as of December 31, 2023, the probabilities that estimated losses, comprising claims and allocated claim

adjustment expenses (but excluding unallocated claim adjustment expenses), from a single event occurring in a one-year timeframe

will equal or exceed the indicated loss amounts (expressed in dollars, net of tax, and as a percentage of the Company’s common

equity), based on the proprietary and third-party models utilized by the Company. For example, on the basis described below the

table, the Company estimates that there is a 1% chance that the Company’s loss from a single U.S. and Canadian hurricane in a

one-year timeframe would equal or exceed $2.1 billion, or 8% of the Company’s common equity at December 31, 2023.

DOLLARS (IN BILLIONS) PERCENTAGE OF COMMON EQUITY

LIKELIHOOD OF EXCEEDANCE

SINGLE U.S.

AND CANADIAN

HURRICANE

SINGLE U.S.

AND CANADIAN

EARTHQUAKE

SINGLE U.S.

AND CANADIAN

HURRICANE

SINGLE U.S.

AND CANADIAN

EARTHQUAKE

2.0% (1-in-50)

$1.8 $0.7 6% 2%

1.0% (1-in-100)

$2.1 $1.1 8% 4%

0.4% (1-in-250)

$2.7 $2.1 10% 7%

0.1% (1-in-1,000)

$6.9 $3.1 25% 11%

The percentage of common equity is calculated by dividing (a) indicated loss amounts in dollars by (b) total common equity excluding net unrealized investment gains and losses, net of taxes, included in

shareholders’ equity. Net unrealized investment gains and losses can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Accordingly, the Company’s management uses the percentage of common equity calculated on this basis as a metric to evaluate the potential impact of a single hurricane or single earthquake on the

Company’s financial position for purposes of making underwriting and reinsurance decisions.

An event that has, for example, a 2% likelihood of exceedance is sometimes described as a ‘‘1-in-50 year event.’’ As noted above, however, the probabilities in the table represent the likelihood of

losses from a single event equaling or exceeding the indicated threshold loss amount in a one-year timeframe, not over a multi-year timeframe. Also, because the probabilities relate to a single event,

the probabilities do not address the likelihood of more than one event occurring in a particular period, and, therefore, the amounts do not address potential aggregate catastrophe losses occurring in a

one-year timeframe.

The loss amounts included in the table above are based on the Company’s in-force portfolio of direct exposures and do not include

assumed business. Additionally, the amounts are as of December 31, 2023, reflect the reinsurance program in place at January 1,

2024, are net of reinsurance, after-tax, and exclude unallocated claim adjustment expenses, which historically have been less than

10% of loss estimates. For further information regarding the Company’s reinsurance, see “Item 1 – Business – Reinsurance” in our

Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The amounts for hurricanes reflect U.S. and Canadian

exposures and include property exposures, property residual market exposures and an adjustment for certain non-property

exposures. The hurricane loss amounts are based on the Company’s catastrophe risk model estimates and include losses from the

hurricane hazards of wind and storm surge. The amounts for earthquakes reflect U.S. and Canadian property and workers

compensation exposures. These loss amounts include the effects of exposure growth, inflation and modeling updates based on

recent trends and scientific analysis. The Company does not believe that the inclusion of hurricane or earthquake losses arising from

other geographical areas or other exposures would materially change the estimated loss amounts.

Catastrophe modeling relies upon inputs based on experience, science, engineering and history. These inputs reflect a significant

amount of judgment and are subject to changes which may result in volatility in the modeled output. Catastrophe modeling output

may also fail to account for risks that are outside the range of normal probability or are otherwise unforeseeable. Catastrophe

modeling assumptions include, among others, the portion of purchased reinsurance that is collectible after a catastrophic event,

which may prove to be materially incorrect. Consequently, catastrophe modeling estimates are subject to significant uncertainty. In

the table above, the uncertainty associated with the estimated threshold loss amounts increases significantly as the likelihood of

exceedance decreases. In other words, in the case of a relatively more remote event (e.g., 1-in-1,000), the estimated threshold loss

amount is relatively less reliable. Actual losses from an event could materially exceed the indicated threshold loss amount. In

addition, more than one such event could occur in any period.

Travelers Sustainability Accounting Standards Board Report 2023 11

Moreover, Travelers is exposed to the risk of material losses

from other than property and workers compensation coverages

arising out of hurricanes and earthquakes, and it is exposed to

catastrophe losses from perils other than hurricanes and

earthquakes, such as tornadoes and other windstorms, hail,

wildfires, severe winter weather, floods, tsunamis, volcanic

eruptions, solar flares and other naturally occurring events, as

well as acts of terrorism and cyber events.

In addition, compared to models for hurricanes, models for

earthquakes are less reliable due to there being a more limited

number of significant historical events to analyze, while models

for tornadoes, hail storms, wildfires and winter storms are newer

and may be less reliable due to the highly random geographic

nature and size of these events. Accordingly, these models may

be less accurate in predicting risks and estimating losses.

Further, changes in climate conditions could cause our

underlying modeling data to be less predictive, thus limiting our

ability to effectively evaluate and manage catastrophe risk.

For more information about Travelers’ exposure to catastrophe

losses, see our Annual Report on Form 10-K for the fiscal year

ended December 31, 2023, under “Item 1A – Risk Factors –

High levels of catastrophe losses, including as a result of factors

such as increased concentrations of insured exposures in

catastrophe-prone areas and changing climate conditions,

could materially and adversely affect our results of operations,

our financial position and/or liquidity, and could adversely

impact our ratings, our ability to raise capital and the availability

and cost of reinsurance” and “Item 1A – Risk Factors – We may

be adversely affected if our pricing and capital models provide

materially different indications than actual results.”

FN-IN-450a.2

Total amount of monetary losses

attributable to insurance payouts from (1)

modeled natural catastrophes and (2)

non-modeled natural catastrophes, by

type of event and geographic segment (net

and gross of reinsurance)

We do not separately identify our losses by modeled and non-

modeled catastrophes, as we do not believe this categorization

is meaningful to our business. We do not view catastrophe peril

modeling as binary (modeled versus non-modeled). Available

models have widely varying levels of maturity and

sophistication, making it impossible to determine when a

particular process is developed enough to qualify as a model or,

conversely, is too immature to qualify as a model.

Our approach to evaluating catastrophe risk takes into account

“models” along the entire continuum, from the most mature

and sophisticated models to those that are in the earliest stage

of development. In each case, we also utilize our own data and

analytics and apply our informed judgment and expertise in our

underwriting, pricing and capital management decisions.

Travelers defines a ‘‘catastrophe’’ as an event:

• That is designated a catastrophe by internationally

recognized organizations that track and report on insured

losses resulting from catastrophic events, such as

Property Claim Services (PCS) for events in the United

States and Canada; and

• For which the Company’s estimates of its ultimate losses

before reinsurance and taxes exceed a pre-established

dollar threshold.

Our threshold for disclosing catastrophes is primarily

determined at the reportable segment level. If a threshold for

one segment or a combination thereof is exceeded and the

other segments have losses from the same event, losses from

the event are identified as catastrophe losses in the segment

results and for the consolidated results of Travelers.

Additionally, an aggregate threshold is applied for International

business across all reportable segments. The threshold for 2023

ranged from approximately $20 million to $30 million of losses

before reinsurance and taxes.

The following table presents the amount of losses recorded by

Travelers for significant catastrophes that occurred in 2023,

2022 and 2021, the amount of net unfavorable (favorable)

prior year reserve development recognized in 2023 and 2022

for catastrophes that occurred in 2022 and 2021, and the

estimate of ultimate losses for those catastrophes at December

31, 2023, 2022 and 2021. For purposes of the table, a

significant catastrophe is an event for which we estimate our

ultimate losses will be $100 million or more after reinsurance

and before taxes.

Travelers Sustainability Accounting Standards Board Report 2023 12

(IN MILLIONS, PRE-TAX

AND NET OF REINSURANCE)

LOSSES INCURRED / UNFAVORABLE

(FAVORABLE) PRIOR YEAR RESERVE

DEVELOPMENT FOR THE YEAR ENDED

DECEMBER 31,

ESTIMATED ULTIMATE

LOSSES AT DECEMBER 31,

TOPIC 2023 2022 2021 2023 2022 2021

2021 PCS Serial Number

15 – Winter storm (14) (13) 228 201 215 228

17 – Winter storm (39) (25) 508 444 483 508

29 – Severe wind storms (2) (12) 105 91 93 105

60 – Hurricane Ida 26 (81) 417 362 336 417

76 – Tornado outbreak (8) (18) 131 105 113 131

2022 PCS Serial Number

33 – Severe wind and hail storms 1 137 n/a 138 137 n/a

35 – Severe wind and hail storms — 184 n/a 184 184 n/a

43 – Severe wind and hail storms (6) 122 n/a 116 122 n/a

61 – Hurricane Ian (76) 227 n/a 151 227 n/a

73 – Winter storm 158 512 n/a 670 512 n/a

2023 PCS Serial Number

25 — Severe wind and hail storms 153 n/a n/a 153 n/a n/a

32 — Severe wind and hail storms 140 n/a n/a 140 n/a n/a

33 — Severe wind and hail storms 199 n/a n/a 199 n/a n/a

35 — Severe wind and hail storms 140 n/a n/a 140 n/a n/a

38 — Severe wind and hail storms 110 n/a n/a 110 n/a n/a

42 — Severe wind and hail storms 133 n/a n/a 133 n/a n/a

48 — Severe wind and hail storms 150 n/a n/a 150 n/a n/a

49 — Severe wind and hail storms 133 n/a n/a 133 n/a n/a

51 — Severe wind and hail storms 265 n/a n/a 265 n/a n/a

63 — Severe wind and hail storms 125 n/a n/a 125 n/a n/a

75 — Severe wind and hail storms 190 n/a n/a 190 n/a n/a

n/a: not applicable.

Amounts are reported pre-tax and net of recoveries under all applicable reinsurance treaties, except for the Company’s 2022 and 2021 Underlying Property Aggregate Catastrophe Excess-of-Loss

Treaties. Those treaties cover the accumulation of certain property losses arising from one or multiple occurrences (both catastrophe and non-catastrophe events) for the period January 1, 2022

through and including December 31, 2022 and the period January 1, 2021 through and including December 31, 2021. As a result, the benefit from the 2022 and 2021 treaties are not included in the

table as the allocation of the treaties’ benefit to each identified catastrophe changes each time there are additional events or changes in estimated losses from any covered event.

Travelers Sustainability Accounting Standards Board Report 2023 13

Travelers does not have geographic segments and, therefore, does not break down policy losses and benefits expenses by geographic

segment. The following table, however, summarizes the geographic distribution of our consolidated direct written premiums for the

year ended December 31, 2023:

LOCATION

% OF

TOTAL

Domestic:

California 10.4 %

Texas

9.1 %

New York 8.4 %

Florida 4.2 %

Pennsylvania 4.1 %

Illinois 3.8 %

Georgia 3.8 %

New Jersey 3.7 %

Massachusetts 3.1 %

All other domestic

44.1 %

Total Domestic 94.7 %

International:

Canada 3.0 %

All other international 2.3 %

Total International 5.3 %

Consolidated total 100.0 %

The percentage for Texas includes business written by the Company through a fronting agreement with another insurer.

No other single state accounted for 3.0% or more of the Company’s consolidated direct written premiums written in 2023.

FN-IN-450a.3

Description of approach to incorporation of environmental risks into (1) the underwriting

process for individual contracts and (2) the management of firm-level risks and

capital adequacy

For information responsive to FN-IN-450a.3, please see the Risk Management section of our TCFD Report.

Travelers Sustainability Accounting Standards Board Report 2023 14

Systemic Risk

Management

FN-IN-550a.1

Exposure to derivative instruments by

category: (1) total exposure to non-

centrally cleared derivatives, (2) total fair

value of acceptable collateral posted with

the Central Clearing house and (3) total

exposure to centrally cleared derivatives

Market Risk

Market risk is the risk of loss arising from adverse changes in

market rates and prices, such as interest rates (inclusive of

credit spreads), foreign currency exchange rates and other

relevant market rate or price changes. Market risk is directly

influenced by the volatility and liquidity in the markets in which

the related underlying assets are traded. The following is a

discussion of our primary market risk exposures and how those

exposures are managed as of December 31, 2023. Our market

risk-sensitive instruments, including derivatives, are primarily

entered into for purposes other than trading.

The carrying value of our investment portfolio at December 31,

2023 and 2022, was $88.81 billion and $80.45 billion,

respectively, of which 87% and 89%, respectively, was invested in

fixed maturity securities. At December 31, 2023 and 2022,

approximately 7.2% and 7.0%, respectively, of our invested

assets were denominated in foreign currencies. Our exposure to

equity price risk is not significant. Travelers has no direct

commodity risk and is not a party to any credit default swaps.

The primary market risks to the investment portfolio are

interest rate risk and credit risk associated with investments in

fixed maturity securities. The portfolio duration is primarily

managed through cash market transactions and treasury

futures transactions.

The primary market risk for all of our debt is interest rate risk at

the time of refinancing. Travelers monitors the interest rate

environment and evaluates refinancing opportunities as

maturity dates approach.

Our foreign exchange market risk exposure is concentrated in

our invested assets, insurance reserves and shareholders’ equity

denominated in foreign currencies. Cash flows from our foreign

operations are the primary source of funds for the purchase of

investments denominated in foreign currencies. Travelers

purchases these investments primarily to fund insurance

reserves and other liabilities denominated in the same currency,

effectively reducing its foreign currency exchange rate exposure.

Invested assets denominated in the Canadian dollar comprised

approximately 4.1% and 4.2% of the total invested assets at

December 31, 2023 and 2022, respectively. Invested assets

denominated in the British Pound Sterling comprised

approximately 2.4% and 2.2% of total invested assets at

December 31, 2023 and 2022, respectively. Invested assets

denominated in other currencies at December 31, 2023 and

2022 were not material.

There were no other significant changes in our primary market risk

exposures or in how those exposures were managed for the year

ended December 31, 2023, compared to the year ended December

31, 2022. Travelers does not currently anticipate significant

changes in its primary market risk exposures or in how those

exposures are managed in future reporting periods based upon

what is known or expected to be in effect in future reporting periods.

Derivative Financial Instruments

From time to time, Travelers enters into certain derivative

financial instruments that are reported on the balance sheet at

fair value. The change in fair value of these investments is

reported in net realized investment gains and losses.

Travelers Sustainability Accounting Standards Board Report 2023 15

FN-IN-550a.2

Total fair value of securities lending

collateral assets

Travelers has, from time to time, engaged in securities lending

activities from which it generates net investment income by

lending certain of its investments to other institutions for short

periods of time. At December 31, 2023 and 2022, Travelers had

$421 million and $445 million of securities on loan,

respectively, as part of a tri-party lending agreement. The

average monthly balance of securities on loan during 2023 and

2022 was $400 million and $347 million, respectively.

Borrowers of these securities provide collateral equal to at least

102% of the market value of the loaned securities plus accrued

interest. We did not incur any investment losses in our securities

lending program for the years ended December 31, 2023

and 2022.

FN-IN-550a.3

Description of approach to managing

capital- and liquidity-related risks

associated with systemic non-insurance

activities

Travelers Enterprise Risk Management (ERM) activities involve

both the identification and assessment of a broad range of risks

and the execution of coordinated strategies to effectively

manage such risks. The ERM process also includes an evaluation

of our risk capital needs, which takes into account regulatory

requirements and credit rating considerations, in addition to

economic and other factors, for each statutory legal entity and

the combined insurance entities. ERM at Travelers is an integral

part of our business operations. All risk owners across all

functions, all corporate leaders and the Board of Directors are

engaged in ERM. ERM involves risk-based analytics, as well as

reporting and feedback throughout the enterprise, in support of

our long-term financial strategies and objectives.

Our ERM framework includes five types of noninsurance entities:

(1) the ultimate parent holding company and the intermediate

holding companies, (2) the servicing companies for the group’s

operational activities, (3) providers of insurance-related

services, (4) managing general agents for certain of our

insurance entities and (5) investment holding companies. These

entities all relate to the insurance operations and are not

considered to be material sources of risk to the enterprise.

Travelers uses various analyses and methods, including

proprietary and third-party modeling processes, to make

underwriting and reinsurance decisions designed to manage the

Company’s exposure to catastrophic events.

In addition to catastrophe modeling and analysis, Travelers also

models and analyzes the Company’s exposure to other extreme

events. We also utilize proprietary and third-party modeling

processes to evaluate capital adequacy. These analytical

techniques are an integral component of our ERM process and

further support our long-term financial strategies and objectives.

Travelers Sustainability Accounting Standards Board Report 2023 16

Activity Metric

FN-IN-000.A

Number of policies in force, by segment: (1) property and casualty, (2) life, (3)

assumed reinsurance

Information regarding our policies in force for 2022 and 2023 is disclosed in the tables below.

PERSONAL INSURANCE: AUTOMOBILE

TOPIC 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23

Policies in force (in thousands) 3,212 3,243 3,283 3,278 3,248 3,225 3,223 3,223

Change from prior year quarter 5.1% 4.7% 4.5% 3.1% 1.1% (0.6)% (1.8)% (1.7)%

Change from prior quarter 1.0% 1.0% 1.2% (0.2)% (0.9)% (0.7)% (0.1)% —%

PERSONAL INSURANCE: HOMEOWNERS AND OTHER

TOPIC 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23

Policies in force (in thousands) 6,284 6,338 6,367 6,375 6,355 6,361 6,348 6,290

Change from prior year quarter 5.7% 4.3% 3.2% 2.3% 1.1% 0.4% (0.3)% (1.3)%

Change from prior quarter 0.9% 0.9% 0.5% 0.1% (0.3)% 0.1% (0.2)% (0.9)%

The number of policies in force is not an activity metric we use for the insurance coverages we sell to businesses, as this measure is

not a meaningful metric for coverages that are sold and managed on an account or customer relationship basis, or through our

surety business, as surety products are generally sold on a non-recurring, project specific basis. Instead, we provide data regarding

our retention, renewal premium change and new business statistics for our relevant business groups.

Travelers Sustainability Accounting Standards Board Report 2023 17

sustainability.travelers.com

Important Legal Information

This report contains information about Travelers. Travelers disclaims any duty or obligation to update such information. Any “forward-looking

statement” is made only as of the date such information was originally prepared by Travelers and is intended to fall within the safe harbor for forward-

looking information provided in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be

forward-looking statements. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,”

“views,” “estimates,” “ensures,” and similar expressions are used to identify these forward-looking statements. These statements include, among

other things, statements about our future results of operations and financial condition; our share repurchases and dividends; our strategy and

competitive advantages; our strategic and operational initiatives to improve profitability and competitiveness; our new product offerings; our

innovation agenda; our investment portfolio, including our investment analysis and approach; our risk management, including climate-related

strategies, risks and opportunities; our catastrophe modeling, including statements about probabilities or likelihood of exceedance; our scenario

analyses; our cybersecurity, business resiliency and data privacy; our underwriting strategy; and our carbon footprint. Results may differ materially

from those expressed or implied by forward-looking statements. Factors that can cause results to differ materially include those described under

“Forward Looking Statements” in the Corporation’s most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and

with respect to our scenario analyses, those factors described under “Climate Scenario Analysis With Respect to the Hurricane Peril” and “Climate

Scenario Analysis With Respect to Our Investment Portfolio” in Travelers TCFD Report.

This report may contain links to other internet sites and may frame material from other internet sites. Such links or frames are not endorsements of

any products or services in such sites, and no information in such site has been endorsed or approved by Travelers.

Except where noted, the information covered in this report highlights our performance and initiatives in fiscal year 2023.

The inclusion of information in this report should not be construed as a characterization regarding the materiality or financial impact of that

information. For additional information about Travelers, please see our filings with the Securities and Exchange Commission, including our Annual

Reports on Form 10-K and Quarterly Reports on Form 10-Q.

Travelers and The Travelers Umbrella are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.

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