On Wednesday, the board of property-casualty and life
) approved and authorized a new stock repurchase program worth
6.0 million shares. The latest sanction will be effective
immediately. The decision reflects the company's trend of
returning wealth to shareholders from time to time, depending on
During the fourth quarter of 2012, PartnerRe bought back about
2.7 million shares for $218 million, under the previous
authorization of repurchasing 6.0 million shares that was
approved in Aug 2012. In 2012, the company repurchased 7.1
million shares for $532.9 million, higher than $396.2 million of
stock bought back in 2011.
An additional 0.4 million shares have been repurchased for $37
million so far in the first quarter of 2013, until Feb 5, 2013.
This left about 2.7 million shares available for repurchases
under the previous authorization. Moreover, PartnerRe had
approximately 26.6 million common shares at 2012-end, which were
held in treasury and are now available for re-issuance.
Efficient Capital Deployment
PartnerRe seeks to elevate its capital position through
meaningful business opportunities. In Dec 2012, the company
acquired Presidio Reinsurance Group for about $72 million plus
tangible book value.
On the other hand, management utilizes the company's excess
capital by deploying it via share repurchases and dividend
payouts, in order to generate adequate capital returns. The
accretive impact of share repurchases also enhances book value
and earnings on a per share basis.
Last month, PartnerRe hiked its regular dividend by 3% to 64
cents per share from the prior payout of 62 cents. The latest
hike represents the 21
consecutive year of dividend rise since the company's
A stable ratings outlook affirmation from A.M. Best, S&P,
Moody's Investor Service of
) and Fitch Ratings further validates the company's overall
operational synergies and risk management in order to augment its
long-term growth profile. This is also satisfactory compared with
its peer group.
While PartnerRe carries a Zacks Rank #3 (Hold), Moody's has a
Zacks Rank #1 (Strong Buy). Other strong performers in the
insurance sector include
XL Group Plc
EMC Insurance Group Inc.
), both of which carry a Zacks Rank #1 (Strong Buy).
EMC CORP -MASS (EMC): Free Stock Analysis
MOODYS CORP (MCO): Free Stock Analysis Report
PARTNERRE LTD (PRE): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
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