Travelers Stock Surges to 190th in Trading Volume as $2.4 Billion Canadian Business Sale Announced

The stock of The Travelers Companies, Inc. (TRV) saw a significant increase in trading volume on May 28, 2025, with a turnover of $451 million, marking a 46.47% rise from the previous day. This surge placed TRV at the 190th position in terms of trading volume for the day.

On May 27, 2025, The Travelers Companies, Inc. announced a strategic agreement to sell its Canadian personal insurance business and the majority of its Canadian commercial insurance business to Definity Financial Corporation for approximately $2.4 billion. This transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and other customary closing conditions. Travelers will retain its premier Canadian surety business, as well as its Canadian home warranty and U.S.-related businesses. The proceeds from this sale are anticipated to be used for share repurchases, which are expected to slightly increase earnings per share over the coming years.

The sale price is calculated at 1.8 times the book value, factoring in approximately $800 million of excess local capital that will be repatriated tax-free. This strategic move is part of Travelers' broader plan to optimize its portfolio and focus on core business areas. The company's financial performance remains robust, with strong revenue growth, stable leverage, and efficient cash generation. Technical indicators suggest a stable price trend with mixed momentum signals, and the valuation is considered reasonable with a moderate dividend yield.