How The Travelers Companies (TRV) Uses Free Cash Flow to Drive Growth and Payouts

Travelers Companies, Inc. (NYSE:TRV) is included among the 10 Cash-Rich Dividend Stocks to Buy Right Now.

Travelers Companies, Inc. (NYSE:TRV) is a US insurer that sells property and casualty insurance to individuals and companies. In the second quarter of 2025, the firm had core income of $1.5 billion ($6.51 per share) and a core return on equity of 18.8%. Other figures saw $11.5 billion of net written premiums, $809 million returned to shareholders, and its $2.4 billion notification to sell its Canadian business, as announced in May.

The Travelers Companies, Inc. (NYSE:TRV) is presently paying a dividend of $1.10 per share, having increased it by 4.8% this April. It marked the 12th consecutive year of dividend increase by the company. The yield of the stock is 1.58%, as of September 27.

The Travelers Companies, Inc. (NYSE:TRV) for 2025 sees its expense ratio in the range of 28% to 28.5%. It also intends to utilize funds from Canadian divestment to support another $700 million of share repurchases in 2026. After-tax net investment income fixed income guidance is approximately $770 million in Q3 and $805 million in Q4. Management expects to phase out the majority of its personal insurance rate and capacity constraints by year-end 2025 so as to enable long-term premium growth and robust underwriting margins.

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Disclosure: None.