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

Core Insights - Travelers Companies, Inc. (NYSE:TRV) is recognized as one of the 10 Cash-Rich Dividend Stocks to buy currently [1] - The company reported a core income of $1.5 billion ($6.51 per share) and a core return on equity of 18.8% for Q2 2025 [2] - Travelers has increased its dividend by 4.8% to $1.10 per share, marking the 12th consecutive year of dividend increases [3] Financial Performance - In Q2 2025, Travelers achieved $11.5 billion in net written premiums and returned $809 million to shareholders [2] - The company anticipates an expense ratio between 28% and 28.5% for 2025 [4] - After-tax net investment income guidance is approximately $770 million for Q3 and $805 million for Q4 [4] Strategic Initiatives - Travelers plans to utilize funds from the divestment of its Canadian business, which is valued at $2.4 billion, to support an additional $700 million in share repurchases in 2026 [4] - Management expects to phase out most personal insurance rate and capacity constraints by the end of 2025 to enable long-term premium growth and robust underwriting margins [4]