Passive income is a great way to make money work for you. One of the best ways you can generate passive income is by investing in good companies that consistently pay dividends. Dividend payers tend to be higher-quality companies with strong capital management, which is why these stocks can deliver solid results regardless of the economy.

Insurance companies can be stellar investments because people always look to protect themselves, and regulations require businesses and individuals to have insurance coverage. As a result, insurers can be an excellent source of passive income. Here are three safe insurers for your consideration.

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1. Chubb

Chubb (CB 0.39%) writes a range of insurance policies, including automotive, homeowners, and commercial insurance, like workers' compensation. The insurer is one of the world's largest property and casualty insurers, which is a testament to its strong underwriting ability.  

The combined ratio is one way you can measure an insurer's underwriting profitability. This metric is calculated by adding the total claims paid out with expenses, divided by the total premiums collected. A ratio below 100% is desirable; the lower, the better. From 2002 through 2021, Chubb's combined ratio has averaged 91.7% -- far below the industry average of 100%.  

This translates into good policies that provide strong cash flows, which are returned to investors through dividends. Chubb has increased its dividend payout for 29 consecutive years and is a member of the Dividend Aristocrat club -- companies in the S&P 500 that have increased dividends for 25 years or more.  

The payout ratio is a helpful metric for dividend stocks and shows the percentage of a company's earnings that it spends paying dividends to stockholders. Chubb's payout ratio has averaged 30% over the last 10 years and is currently 17%, a good sign that the company can maintain that dividend.

CB Dividend Yield Chart

CB Dividend Yield data by YCharts

2. Cincinnati Financial

Cincinnati Financial (CINF 0.04%) writes similar policies as Chubb, and has also done a solid job in managing its underwriting risk.

What makes Cincinnati Financial impressive is its long history of growing dividends. For 62 years, the insurer has increased its dividend, putting it in the more exclusive Dividend King club, or companies in the S&P 500 increasing dividends for 50 years or more.  

It wasn't always smooth sailing, though. From 2008 to 2011, Cincinnati Financial's combined ratio averaged 104% in a challenging environment for insurers. The company maintained its dividend increases during this difficult period, a testament to its capital management and commitment to shareholders. Since current CEO Steve Johnston took over in 2011, Cincinnati Financial's combined ratio has averaged 94.6%, beating the industry average of 99%.  

Cincinnati Financial's payout ratio is a modest 19%, and its solid underwriting and strong capital management make this company another safe dividend stock you can add today.

3. Old Republic International

Old Republic International (ORI 0.28%) is a property insurer that also writes title insurance coverage used in property transactions to protect lenders or buyers from claims against a property's title. The company has managed its underwriting risk well, with its combined ratio averaging 96% over the last 15 years.  

A chart shows Old Republic's combined ratio over 15 years.

Image source: Old Republic International.

Old Republic has paid out a dividend every year for the past 81 years and has raised its dividend for the past 41 years. Its payout ratio of 54% is on the higher end compared to the two companies above, but is still manageable as long it continues to write good policies. The company has a solid dividend yield of 4% and has managed its capital well for decades -- making it another solid dividend stock you can trust.