Special dividend and share buy back after low catastrophes
Bermuda-based Lloyd’s insurer Lancashire will return more than $400m (£241m) to shareholders through a special dividend and share buy-backs after low catastrophe losses, the FT reports.
Richard Brindle, chief executive of Lancashire, said its decision did not signal that more limited opportunities lay ahead next year.
“This is just about us returning good profits this year after we did not return any capital last year, it does not show that we have a negative outlook on our markets,” he said.
Rise in US catastrophe rates
Brindle expects premium rates in Lancashire’s markets to be broadly neutral, with some rise in US catastrophe rates.
Lancashire is also seeking authorisation for a buy-back of a further $150m of shares, which it said would give it more control and flexibility over returning extra funds to shareholders beyond the special dividend.
Lancashire’s third-quarter new business was up 15.7 per cent at $120.3m.