Partner Re To Buy Back Seven Million Shares
The board of directors of Bermuda-based PartnerRe Ltd. today [Jan. 3] authorised the company to buy back up to seven million of its common shares in an effort to bolster the value for shareholders. The new authorisation replaces the previous authorisation of seven million common shares approved by the board in September, 2010.
In early December, the company spent $99.5 million to buy back 1.2834 million of common stock. PartnerRe has bought back 13.9 million common shares tol date in 2010.
Based in Pembroke, Bermuda, Partner Re Ltd. through its subsidiaries commenced as a pure property reinsurer but has become a dynamic and diversified property-casualty and life reinsurer over the years, covering catastrophe, automobile, agricultural, credit and surety, marine, space and aviation, miscellaneous casualty and life/health risks.
Ratings agency Zacks says Partner Re “has and continues to return additional value to its shareholders through share repurchase and dividend payments”. In October 2010, the company increased its quarterly dividend by 10 percent. The increased dividend of 55 cents was paid on December 1, 2010, to the company’s common shareholders of record as of November 19, 2010.
The hike marked the company’s ninth dividend increase since its inception. The company’s current dividend yield is 2.74 percent with 11 percent compounded growth in the common dividend.
The company reported third quarter operating earnings of $3.69 per share. During the third quarter of 2010, PartnerRe had bought back 1.1 million common shares for approximately $82.4 million. on the shares over the near term.
