A.M. Best Affirms Ratings of Travelers Insurance Companies and Several of Its Subsidiaries.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of "aa-" of Travelers Insurance Companies (Travelers) and its property/casualty members. Concurrently, A.M. Best has affirmed the debt ratings of "a-" on senior debt, "bbb+" on subordinated debt, "bbb+ and "bbb" on junior subordinated debt, "bbb" on trust preferred securities, "bbb" on preferred stock and AMB-1 on commercial paper of The Travelers Companies, Inc. (NYSE: TRV) (St. Paul, MN).

In addition, A.M. Best has affirmed the FSR of A+ (Superior) and ICRs of "aa-" of Travelers Casualty and Surety Company of America (Hartford, CT) and its affiliate, Travelers Casualty and Surety Company of Europe, Limited (United Kingdom). A.M. Best also has affirmed the FSR of A (Excellent) and ICR of "a+" of The Premier Insurance Company of Massachusetts (Worcester, MA), FSR of A (Excellent) and ICR of "a" of Travelers of New Jersey Group and its property/casualty members, and FSR of A- (Excellent) and ICR of "a-"of First Floridian Auto and Home Insurance Company (Tampa, FL). The outlook for all the above ratings is stable. (See link below for a detailed list of the companies and ratings.)

The affirmation of Travelers' ratings reflects its strong risk-adjusted capitalization, proactive and comprehensive risk management, superior earnings power, dominant market profile in commercial and personal lines and quality management team. The ratings also acknowledge the group's continuing underwriting and financial discipline, geographic and product diversification, superior technology, which has improved its underwriting effectiveness and ability to service its agents and customers, and enhanced internal information systems.

Particularly noteworthy has been Travelers' strong equity accumulation from robust earnings--including reserve redundancies--over the past several years, substantial decline in underwriting leverage, solid retention rates, relatively conservative investment portfolio and mix of business that appears to have served the group well in the current soft pricing environment. The equity accumulation has allowed Travelers Companies, Inc.'s stock repurchase program to continue uninterrupted and provided management with the ability to right size capital levels.

The ratings also consider the financial flexibility provided by Travelers Companies, Inc. The company's liquidity is significant, with $1.5 billion of liquid funds at March 31, 2008, which is net of sizable common stock repurchases in 2006, 2007 and continuing in 2008. A.M. Best believes the holding company will maintain liquid funds in excess of $1.0 billion throughout 2008. Its debt-to-total capital, which stood at 18.5% at March 31, 2008, is expected to be maintained at approximately 20%, which is well within A.M. Best's guidelines for the current ratings. Given the strong risk-adjusted capitalization of Travelers and its favorable, albeit lower, earnings outlook in the near term--absent the unknown effect of catastrophes--A.M. Best believes the holding company is well positioned to achieve its capital management plans in 2008.

Offsetting these positive factors has been volatility of Travelers' asbestos and environmental (A&E) reserves prior to 2006, although A.M. Best acknowledges that in years 2005-2007, overall commercial lines reserves excluding A&E appear to have stabilized, while redundancies have mainly occurred in personal lines reserves. Furthermore, being among the largest commercial insurers and national property writers, Travelers has significant exposure to natural catastrophes and potential terrorist-related losses, although it has comprehensive and active programs in place to manage its spread of risk and overall exposure.

For a complete list of The Travelers Companies, Inc.'s FSRs, ICRs and debt ratings, please visit www.ambest.com/press/060303travelers.pdf.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.