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