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W.R. Berkley's Board Okays Special Cash Dividend of 25 Cents
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W.R. Berkley Corporation (WRB - Free Report) board of directors recently approved a special cash dividend of 25 cents per share. This, along with the special dividend paid as well as quarterly dividend and share buyback in the second quarter this year, will take the total payout to $535.3 million in 2024.
Concurrently, the board also approved a quarterly cash dividend of 8 cents. Shareholders, as of the close of business on Sept. 23, 2024, will receive both the special dividend and quarterly dividend on Sept. 30, 2024.
WRB’s Impressive Dividend History
The nation’s largest commercial lines property casualty insurance provider has been increasing dividends each year since 2005. In fact, it made 10 hikes in the past five years. This apart, this Zacks Rank #3 (Hold) insurer pays special dividends.
Its dividend yield of 0.6% is higher than the industry average of 0.3% and has a payout ratio of 8%. The insurer has grown its dividend at a five-year average of 1%.
What Will Help WRB Sustain This Momentum?
A solid insurance business, momentum in international business and a sturdy financial position should continue to drive earnings. WRB primarily focuses on commercial lines, including excess and surplus lines, admitted lines and specialty personal lines. Its growth strategy encompasses operating in areas where it has a competitive advantage.
This, in turn, supports a solid balance sheet with sufficient liquidity and strong cash flows. Its strong capital position enables it to distribute wealth to shareholders via share repurchases, special dividends and dividend hikes that enhance shareholders' value.
Better pricing, expansion of international business, reserving discipline, a solid balance sheet and prudent capital management policy should help WRB maintain the streak of hiking dividends and paying special dividends.
Apart from dividends, the insurer resorts to regular share buyback as another way to enhance shareholder value. The board has increased the share repurchase authorization to 15 million shares.
WRB's Price Outperformance
Shares of WRB closed at $57.11 on Wednesday, near its 52-week high of $61.28 after gaining 35.6% in a year. WRB shares are trading well above the 50-day moving average, indicating a bullish trend.
Shares outperformed the industry, the Finance sector as well as the Zacks S&P 500 composite. Solid insurance business, strong international business and a sturdy financial position continue to drive shares.
WRB Outperforms Industry, Sector and S&P
Image Source: Zacks Investment Research
Other Insurers Following Suit
First American Financial Corporation’s (FAF - Free Report) board increased dividend to 53 cents per share of common stock from 52 cents. This increment represents a remarkable 2% rise over the previously declared rate. Robust operational performance, solid investment performance and strong capital management are likely to help FAF in sustaining the dividend streak.
First American enjoys a strong liquidity position to enhance operating leverage. Its strong liquidity not only mitigates balance sheet risks but also paves the way for accelerated capital deployment.
MGIC Investment Corporation’s (MTG - Free Report) board of directors approved a 13% hike in its quarterly dividend to return more profits to stockholders. The insurer will pay out 13 cents per share compared with the previous payout of 12 cents.
The insurer distributes wealth to its shareholders via dividend increases and share buybacks. This reflects continued strong mortgage credit performance and financial results and share price valuation levels that are expected to be attractive to generate long-term value for remaining shareholders. By virtue of capital contribution, reinsurance transactions and improving cash position, MTG has significantly improved its capital position. Its strong liquidity not only mitigates balance sheet risks but also paves the way for accelerated capital deployment.
The board of directors of American Financial Group (AFG - Free Report) has increased the regular annual dividend to $3.20 per share of common stock from $2.84, which represents a remarkable 12.7% rise over the previously declared rate.
The robust operating profitability at the P&C segment, a stellar investment performance and effective capital management support effective shareholders return. AFG expects its operations to continue to generate significant excess capital throughout the remainder of 2024, which provides ample opportunity for additional share repurchases or special dividends over the next year.
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W.R. Berkley's Board Okays Special Cash Dividend of 25 Cents
W.R. Berkley Corporation (WRB - Free Report) board of directors recently approved a special cash dividend of 25 cents per share. This, along with the special dividend paid as well as quarterly dividend and share buyback in the second quarter this year, will take the total payout to $535.3 million in 2024.
Concurrently, the board also approved a quarterly cash dividend of 8 cents. Shareholders, as of the close of business on Sept. 23, 2024, will receive both the special dividend and quarterly dividend on Sept. 30, 2024.
WRB’s Impressive Dividend History
The nation’s largest commercial lines property casualty insurance provider has been increasing dividends each year since 2005. In fact, it made 10 hikes in the past five years. This apart, this Zacks Rank #3 (Hold) insurer pays special dividends.
Its dividend yield of 0.6% is higher than the industry average of 0.3% and has a payout ratio of 8%. The insurer has grown its dividend at a five-year average of 1%.
What Will Help WRB Sustain This Momentum?
A solid insurance business, momentum in international business and a sturdy financial position should continue to drive earnings. WRB primarily focuses on commercial lines, including excess and surplus lines, admitted lines and specialty personal lines. Its growth strategy encompasses operating in areas where it has a competitive advantage.
This, in turn, supports a solid balance sheet with sufficient liquidity and strong cash flows. Its strong capital position enables it to distribute wealth to shareholders via share repurchases, special dividends and dividend hikes that enhance shareholders' value.
Better pricing, expansion of international business, reserving discipline, a solid balance sheet and prudent capital management policy should help WRB maintain the streak of hiking dividends and paying special dividends.
Apart from dividends, the insurer resorts to regular share buyback as another way to enhance shareholder value. The board has increased the share repurchase authorization to 15 million shares.
WRB's Price Outperformance
Shares of WRB closed at $57.11 on Wednesday, near its 52-week high of $61.28 after gaining 35.6% in a year. WRB shares are trading well above the 50-day moving average, indicating a bullish trend.
Shares outperformed the industry, the Finance sector as well as the Zacks S&P 500 composite. Solid insurance business, strong international business and a sturdy financial position continue to drive shares.
WRB Outperforms Industry, Sector and S&P
Image Source: Zacks Investment Research
Other Insurers Following Suit
First American Financial Corporation’s (FAF - Free Report) board increased dividend to 53 cents per share of common stock from 52 cents. This increment represents a remarkable 2% rise over the previously declared rate. Robust operational performance, solid investment performance and strong capital management are likely to help FAF in sustaining the dividend streak.
First American enjoys a strong liquidity position to enhance operating leverage. Its strong liquidity not only mitigates balance sheet risks but also paves the way for accelerated capital deployment.
MGIC Investment Corporation’s (MTG - Free Report) board of directors approved a 13% hike in its quarterly dividend to return more profits to stockholders. The insurer will pay out 13 cents per share compared with the previous payout of 12 cents.
The insurer distributes wealth to its shareholders via dividend increases and share buybacks. This reflects continued strong mortgage credit performance and financial results and share price valuation levels that are expected to be attractive to generate long-term value for remaining shareholders. By virtue of capital contribution, reinsurance transactions and improving cash position, MTG has significantly improved its capital position. Its strong liquidity not only mitigates balance sheet risks but also paves the way for accelerated capital deployment.
The board of directors of American Financial Group (AFG - Free Report) has increased the regular annual dividend to $3.20 per share of common stock from $2.84, which represents a remarkable 12.7% rise over the previously declared rate.
The robust operating profitability at the P&C segment, a stellar investment performance and effective capital management support effective shareholders return. AFG expects its operations to continue to generate significant excess capital throughout the remainder of 2024, which provides ample opportunity for additional share repurchases or special dividends over the next year.