Travelers Does Not Seek Federal Financial Assistance

Business Wire, Oct 28, 2008

SAINT PAUL, Minn. -- In a letter to U.S. Treasury Secretary Henry Paulson, The Travelers Companies, Inc. (NYSE: TRV) stated it does not require or intend to request any financial assistance from the Treasury Department, which is considering investing in insurance companies as part of the economic stabilization package approved by Congress.

Travelers Chairman and Chief Executive Officer Jay Fishman's letter to Secretary Paulson is below:

"The last several months have seen extraordinary systemic financial market dislocation which has negatively impacted a broad range of financial institutions and, unfortunately, millions of Americans across the country. You and your team at Treasury have worked tirelessly to address these enormous problems, and we commend you for your continuing efforts.

"As we are sure you know, there have been recent reports that the Treasury Department is considering investing in insurance companies under the Capital Purchase Program. We are writing now to advise you that Travelers does not require or intend to request any such assistance. We continue to generate attractive returns on equity, and in fact we have grown our book value almost 3.5% over the past twelve months after returning $3.7 billion to shareholders through stock repurchases and dividends. In addition, all of our financial strength indicators are at or better than target levels, including holding company liquidity of $2.1 billion, which is approximately twice our target level. Travelers is a strong, resilient and well capitalized property casualty insurance company which has been thoughtfully managed.

"We understand that the substantial majority of insurance companies represented by the American Insurance Association feel the same way we do about participating in the Capital Purchase Program. We also understand, however, that a few life insurance companies may find themselves in different circumstances. We would encourage a thorough exploration of private market solutions in these circumstances, preserving federal financial assistance for more acute problems.

"We would be pleased to offer any technical assistance that might be helpful to you or your team."

Travelers is a leading provider of property casualty insurance for auto, home and business. For more information, visit www.travelers.com.