TRAVELERS COMPANIES, INC. | 2013 | FY | 3


11. EARNINGS PER SHARE

        Basic earnings per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities.

        The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations:

(for the year ended December 31, in millions, except per share amounts)
  2013   2012   2011  

Basic

                   

Net income, as reported

  $ 3,673   $ 2,473   $ 1,426  

Participating share-based awards—allocated income

    (27 )   (19 )   (11 )

Preferred stock dividends

            (1 )
               

Net income available to common shareholders—basic

  $ 3,646   $ 2,454   $ 1,414  
               
               

Diluted

                   

Net income available to common shareholders

  $ 3,646   $ 2,454   $ 1,414  

Effect of dilutive securities:

                   

Convertible preferred stock

            1  
               

Net income available to common shareholders—diluted

  $ 3,646   $ 2,454   $ 1,415  
               
               

Common Shares

                   

Basic

                   

Weighted average shares outstanding

    370.3     386.2     415.8  
               
               

Diluted

                   

Weighted average shares outstanding

    370.3     386.2     415.8  

Weighted average effects of dilutive securities:

                   

Stock options and performance shares

    4.0     3.6     4.0  

Convertible preferred stock

            0.7  
               

Total

    374.3     389.8     420.5  
               
               

Net income Per Common Share

                   

Basic

  $ 9.84   $ 6.35   $ 3.40  
               
               

Diluted

  $ 9.74   $ 6.30   $ 3.36  
               
               

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