8-KRegulation FD

TRAVELERS COMPANIES, INC. 8-K Report, Regulation FD Disclosure (Jan 28, 2010)

Filed January 28, 2010For Securities:TRV

Summary

This 8-K filing from The Travelers Companies, Inc. (TRV) on January 28, 2010, serves to clarify a statement made during their Q4 2009 earnings call on January 26, 2010. Specifically, the company is affirming that their commentary regarding a "very modest deterioration in the loss and loss adjustment expense component" was intended to apply to the company as a whole, not to a specific segment labeled "commercial lines" as may have been implied by a questioner. This clarification is important for investors as it ensures accurate interpretation of the company's outlook on loss trends. The filing reiterates that the guidance provided encompasses the entire enterprise and directs investors to previously filed documents and webcasts for comprehensive financial details regarding the fourth quarter and full year 2009 results. The provided glossary definitions for "loss" and "loss adjustment expense" offer further context for understanding these key financial metrics.

Key Highlights

  • 1Clarification of prior guidance regarding loss cost trends.
  • 2Statement on loss and loss adjustment expense deterioration applies to the entire company.
  • 3Confirms that the "commercial lines" segment is not a reporting segment for Travelers.
  • 4Reaffirms "very modest deterioration" in the loss and loss adjustment expense component.
  • 5Directs investors to previous filings (January 26, 2010, 8-K) and earnings call webcast for further details.
  • 6Provides definitions for "loss" and "loss adjustment expense" for investor clarity.

Frequently Asked Questions

The main purpose of this 8-K filing is to clarify a statement made during Travelers' Q4 2009 earnings call. The company wants to ensure that investors understand that their commentary on loss cost trends and expected deterioration in loss and loss adjustment expenses applies to the company as a whole, not a specific, non-existent 'commercial lines' segment.

This statement indicates that Travelers anticipates a slight increase in the costs associated with claims (losses) and the expenses incurred in settling those claims (loss adjustment expenses) for the company overall. The filing emphasizes that this deterioration is expected to be 'very modest'.

Investors can refer to Travelers' Form 8-K filing dated January 26, 2010, which included their earnings press release and financial supplement. The related webcast presentation is also available for review or replay on the company's investor relations website at www.travelers.com.