RenaissanceRe Increases Buyback Again - Analyst Blog


To enhance shareholders' value, RenaissanceRe Holdings Ltd. ( RNR ) has recently approved an increase in its share repurchase program. With this, the total authorization currently stands at $500 million. This repurchase program has no expiry date. The aforementioned program is an extension to the previous authorization, under which RenaissanceRe was left with $408.7 million for repurchases.

Earlier in Feb 2014, the company had approved a renewal of its share buyback, which brought the total authorization to $500 million then. RenaissanceRe purchased 3 million shares for $277.1 million in the first quarter of 2014.

Additionally, RenaissanceRe declared a quarterly dividend of 29 cents per share payable on Jun 30, 2014 to shareholders of record as of Jun 13, 2014. In Feb 2014, the company had increased its quarterly dividend by 3.6% from 28 cents paid earlier.

RenaissanceRe has increased its dividend for nineteen consecutive years, which reflects its commitment to increase shareholders' worth. Moreover, the company regularly paid dividends, including $11.9 million paid in the first three months of 2014.

RenaissanceRe's financial strength enables it to continue with its buyback program and dividend payouts. As of Mar 31, 2014, the company's cash and cash equivalents was $327.2 million and cash from operations stood at $46.6 million. The increased repurchase authorization and steady dividend payouts are expected to boost investors' confidence in the stock. Additionally a decrease in share count through increased repurchases should aid bottom-line growth.

RenaissanceRe currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the insurance space include Allied World Assurance Company Holdings, AG ( AWH ), AmTrust Financial Services, Inc. ( AFSI ) and Aspen Insurance Holdings Ltd. ( AHL ). All of these carry a Zacks Rank #1 (Strong Buy).

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AMTRUST FIN SVC (AFSI): Free Stock Analysis Report

ASPEN INS HLDGS (AHL): Free Stock Analysis Report

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RENAISSANCERE (RNR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AFSI , AHL , AWH , RNR

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