Chubb will seek to repurchase $1bn shares
The board of re/insurer Chubb has authorised a $1 billion share repurchase programme in a move designed to boost shareholder value, less than a year after it combined with ACE.
The company is now authorized to buy back $1 billion worth shares through December 31, 2017. The company’s last such buyback programme, worth $1.5 billion, was exhausted by December 2015.
Share repurchases can benefit a company's earnings per share, book value and shareholder equity by lowering outstanding its share count.
The company said it intends to complete the entirety of this share repurchase programme over the authorized period, subject to market conditions. This repurchase authorization may be implemented in the open market, in privately negotiated transactions, block trades, accelerated repurchases and/or through option or other forward transactions.
The company also declared a quarterly dividend equal to $0.69 per share, payable on January 20, 2017 to shareholders of record at the close of business on December 30, 2016.
This is the third instalment of an increased annual dividend that was approved by the board in May 2016. The approval was for a 3 percent increase in dividend; this also marked the 23rd straight annual pay-out hike at the company.
