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Travelers Announces Court Decision Regarding Statutory and Common Law Direct Actions

SAINT PAUL, Minn.- February 19, 2008 -The Travelers Companies, Inc. (NYSE: TRV) today announced that the U.S. Court of Appeals for the Second Circuit has vacated the March 2006 decision of the U.S. District Court for the Southern District of New York that had approved Travelers' previously announced settlements of statutory and common law asbestos-related direct action litigation.

The settlements are subject to final court approval of an order that enjoined further direct action litigation against certain Travelers entities. The Second Circuit's decision found that the court originally issuing that order did not have the jurisdiction to do so. Travelers is currently analyzing the Second Circuit's opinion to determine whether to pursue further appellate proceedings. In addition, other parties may seek further appellate review of the ruling.

Travelers will not make an adjustment to the level of its asbestos reserves as a result of the Second Circuit's decision. Accordingly, the decision does not impact Travelers' earnings.

Travelers would have preferred the finality afforded by the settlements and related injunction. However, since Travelers entered into the settlements, there have been court decisions upholding defenses similar to those asserted by Travelers in the common law direct action litigation. In addition, the asbestos litigation environment has improved generally over the past several years. As a result, Travelers' current outlook for the overall direct action litigation is more favorable than it was when Travelers entered into the settlements. If the Second Circuit's decision becomes final, the settlements will become voided and Travelers intends to litigate the direct action cases vigorously.

About Travelers

Travelers is a leading provider of property casualty insurance. For more information, visit www.travelers.com.

Forward Looking Statement

This press release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding our outlook for litigation and the impact of court decisions on our results. Such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied by, the forward looking information. These risks and uncertainties include the fact that litigation, particularly complex litigation involving novel theories of liability, is inherently unpredictable and the establishment of reserves involves a high degree of judgment. For other risks and uncertainties, see "Risk Factors" in our latest Form 10-K/A filed with the Securities and Exchange Commission. Our forward-looking statements speak only as of the date they are made, and we undertake no obligation to update forward-looking statements.

Contacts

The Travelers Companies, Inc.
Media:
Shane Boyd, 651-310-3846
or
Jennifer Wislocki, 860-277-7458
or
Institutional Investors:
Michael Connelly, 860-277-1507
or
Andrew Hersom, 860-277-0902
or
Individual Investors:
Marc Parr, 860-277-0779

# posted by (hris @ 10:22 AM