(Reuters) - London-listed insurers Lancashire (LRE.L) and Hiscox (HSX.L) on Monday confirmed insurance prices are still falling, and Lancashire said it would return 213 million pounds to investors rather than deploy it in a softening market.
Lancashire's special dividend of 86 pence per share marks the first direct return of capital this year from the London-listed non-life insurance sector, which has allowed surplus cash to build up rather than write business at inadequate profit margins.
Rival Novae (NVA.L) has also committed to handing back spare cash to shareholders, with an announcement expected before the end of the year, and analysts reckon shareholders could also get a payout from Amlin (AML.L).
Insurance and reinsurance prices have been falling across most business lines for two years, reflecting intense competition between well-capitalised insurers and a comparative dearth of major catastrophe-induced losses.
Rest of the Article: http://uk.reuters.com/article/idUKTRE6A71WF20101108
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Hmmm, not sure what to make of this, shareholders are sure to be happy that’s for sure, but is it really taking money out of the market? To be honest, it’s a good “bad” problem to have, could be bleeding money and jobs like AIG or even have gone under at the height of the crunch two years ago.
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