Lancashire to return £213m in dividends

first_img whatsapp Show Comments ▼ Share whatsapp Lancashire to return £213m in dividends INSURER Lancashire yesterday blew expectations out of the water with its third-quarter pre-tax profit of $107.6m (£67m) versus a consensus forecast of $82m.On the back of its success it has decided to return £213m to investors in a special 86p per share dividend, making it the first major non-life insurance firm in London this year to return capital to shareholders.Most insurance companies have instead been sitting on growing piles of cash as they mull their spending options. But in addition to issuing the dividend, Lancashire says it has been buying back shares. Its stock has risen 23 per cent since 1 June.The insurance industry is in a period of intense competition due to a build-up of capital sparking aggressive pricing pressure.However, Lancashire’s third-quarter gross written premiums growth also confounded expectations, coming in at $135m against $129m consensus. This was, however, a decline on last year of 2.8 per cent.Investment returns were two per cent versus 1.6 per cent last year. The firm has also named its new chief financial officer as Elaine Whelan. Lancashire shares closed up 1.4 per cent at 586p. KCS-content Monday 8 November 2010 9:17 pm Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Tags: NULL last_img