S&P Global Ratings views Travelers Cos. Inc. as having a leading position in the U.S. property/casualty (P/C) market as shown by its track record of strong underwriting profitability. It has exposure to natural catastrophes and possible reserve volatility, though these risks are mitigated by a large capital buffer. Travelers and its intermediate holding company affiliates largely rely on their regulated insurance operating units to meet debt obligations and other cash requirements, including interest and principal payments, shareholder dividends, and certain operating expenses. Its liquidity profile benefits from its operating subsidiaries' underlying earnings strength and dividend paying capacity, as well as the cash and marketable securities that the parent company holds on its balance sheet. The holding company rating is three
