The Travelers Promise

PURPOSE

An Interview with Alan D. Schnitzer, Chairman and Chief Executive Ofﬁ cer, The Travelers Companies, Inc.

EDITORS’ NOTE Alan Schnitzer COMPANY BRIEF Travelers (travelers.com) We talk a lot about our “Travelers Family,” became CEO and a member has been around for more than 165 years and it’s more than a metaphor. We’re fortunate of the company’s Board of and has earned a reputation as one of to work with people who genuinely care about Directors in 2015 and was the best property casualty insurers in the each other, and it’s not just that they care – they elected Chairman of the Board industry. It is a leader in personal, busi- fi nd meaningful ways to show it. This year, I in 2017. He joined Travelers in ness and specialty insurance and the only received dozens of stories from members of April 2007 as Vice Chairman property casualty company in the Dow the Travelers Family describing how colleagues and Chief Legal Officer. He then Jones Industrial Average. Its approximately went out of their way to help them during went on to lead the company’s 30,000 employees and 13,500 indepen- moments of need, from hand-delivering food Financial, Professional and dent agents and brokers in the United and basic supplies to dropping off medicine. International Insurance segment States, Canada, the United Kingdom and The strength of our culture was on full dis- and subsequently the compa- Ireland help provide its customers with play last year. We transitioned to a remote work ny’s Business and International Alan D. Schnitzer both peace of mind and the confi dence to environment, shifted to virtual processes for Insurance segment. He also over- reach higher and do more. nearly every aspect of our business and effec- saw Travelers’ Field Management, Corporate tively managed the company through a global Communications and Public Policy organi- How do you de ne the Travelers culture, health crisis. We not only made our way through zations. Before joining Travelers, Schnitzer and how critical is that culture to the suc- a diffi cult year – we came through it stronger served as the company’s lead outside coun- cess of the company? by nearly every measure. That’s in large part a sel as a partner in the law firm of Simpson It is impossible to overstate the importance credit to our culture. The dedication, ingenuity Thacher & Bartlett LLP, where he advised of culture, especially in a business where success and compassion of our workforce are second corporate clients on a variety of trans- depends on thousands of people balancing risk to none. Our employees continually step up to actions and general corporate law mat- and reward every day in the process of making meet the moment, doing so because they care ters. Schnitzer is a member of the Board of underwriting decisions. Culture is a tough thing deeply about our company, their colleagues, our Trustees of the University of Pennsylvania to defi ne. I often use the phrase “pixie dust” customers and our agent and broker partners. and serves on the Board of Directors of the to describe the intangible qualities that defi ne Travelers has said that maintaining a New York City Ballet and Memorial Sloan our culture. I’m not sure exactly what’s in the diverse and inclusive workforce is a busi- Kettering Cancer Center. He earned his pixie dust but, over the years, I’ve called out a ness priority. What impact does it have on undergraduate degree in finance and few ingredients: collaboration, long-term thinking, your business? accounting from The Wharton School of the putting The Place fi rst, and a commitment to You might notice a theme here. If you look University of Pennsylvania and his JD from everyone else’s success. Embedded in each of at all of our competitive advantages, there’s Columbia Law School. those is a commitment to doing the right thing. one thing they have in common: our people.

“The strength of our culture was on full display last year. We transitioned to a remote work environment, shifted to virtual processes for nearly every aspect of our business and effectively managed the company through a global health crisis. We not only made our way through a difﬁ cult year – we came through it stronger by nearly every measure.”

44 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2021 LEADERS MAGAZINE, LLC VOLUME 44, NUMBER 2 “Diversity and inclusion is, and has been, a business imperative for us. Diverse experiences and viewpoints yield greater insights and better outcomes, raising the bar on individual and team performance, sparking further innovation and sharpening our customer focus.”

They are our greatest asset. That’s why we Performing means successfully executing the resources we need to keep the Travelers focus on attracting, retaining and promoting our long-term financial strategy to generate Promise, and only by faithfully keeping the the very best from the broadest possible pool industry-leading returns on equity over time. Travelers Promise will we earn the support of of talent. We know that having a diverse work- In each of the past 10 years, we’ve outper- key stakeholders essential to our Perform and force enables us to make the best decisions for formed the industry in terms of average return Transform success. our business and our stakeholders, and inclu- on equity. Those results refl ect the value of our What do you see as Travelers’ respon- sion goes hand in hand with that. Supporting a competitive advantages and are a testament to sibility to be engaged in the communities culture that embraces differences and empow- the discipline with which we run our business. it serves and to be good corporate citizens? ers people to share their unique perspectives That said, we also understand that some In addition to focusing on the sustain- creates an environment where everyone feels of the competitive advantages and capabili- ability and profi tability of our business, we’re comfortable bringing their whole self to work, ties that have fueled our achievements over investing more broadly in the sustainability sharing new ideas and contributing to the fl ow the past decade won’t necessarily be the same and well-being of the communities we call of innovation. advantages and capabilities we’ll need to lead home. Over the last decade, we have contrib- Diversity and inclusion is, and has been, for the next decade. That’s why we’re focused uted more than $225 million toward important a business imperative for us. Diverse experi- on transformation – to ensure that we maintain causes generally aligned with academic and ences and viewpoints yield greater insights our leadership position for the next decade and career success, thriving neighborhoods and and better outcomes, raising the bar on indi- beyond. culturally enriched communities. We’re invest- vidual and team performance, sparking fur- The fi nal piece I mentioned is the Travelers ing more than money; we’re investing our ther innovation and sharpening our customer Promise – our commitment to taking care of our time. Over the last fi ve years, our employees focus. customers, our communities and each other. It’s logged more than 500,000 volunteer hours, in Travelers places a major focus on sus- about providing our customers with the security many cases as part of initiatives that advance tainability. What does sustainability mean they need to invest in their families and busi- inclusive prosperity. for the company? nesses and being there to help them recover This all connects back to the Travelers We take a comprehensive approach to after a disaster; caring for the communities in Promise and to our performance. Our long-term sustainability. Our long-term value creation which we live and work, through good times success is dependent on the long-term strength depends not only on our fi nancial strategy, but and bad; and making Travelers the employer of and prosperity of the communities in which we also on the way we manage various economic, choice for the best talent in the industry and a live and work. We see good corporate citizen- environmental and social factors. When we great partner for our agents and brokers. ship as both the right thing to do and a smart think about our continued success, we have to For us, sustainability comes down to fi nancial move. To do well, we have to do good. do three things really well: perform, transform this: Only by successfully delivering on our At Travelers, as I touched on in my last answer, and keep the Travelers Promise. Perform and Transform agenda will we earn we believe those obligations are intertwined.•

“Our long-term value creation depends not only on our ﬁ nancial strategy, but also on the way we manage various economic, environmental and social factors. When we think about our continued success, we have to do three things really well: perform, transform and keep the Travelers Promise.”