Allied World Assurance Company Holdings, AG (NYSE:AWH) announced today that in its recently filed Preliminary Proxy Statement with the U.S. Securities and Exchange Commission, the company's Board of Directors has proposed the following:
- An annual dividend increase of 35%, from $2.00 per share to $2.70 per share. The company's dividend payments will be made from general legal reserve from capital contributions and will be paid in U.S. dollars. These amounts are prior to the consideration of the proposed three-for-one stock split outlined below and will be adjusted accordingly if the stock split is approved by our shareholders. The first of four proposed installments is expected to be paid in July 2014.
- A new $500 million share repurchase program. Although we have $192 million remaining in our current program as of February 28, 2014, we are asking shareholders to authorize a new $500 million program to replace the current program and allow us to go farther out into the future expanding the company’s ability to buy back stock at attractive valuations.
- A three-for-one stock split. The company currently anticipates that the record date with the Commercial Register in the Canton of Zug will be May 12, 2014 and that the share distribution date will be May 22, 2014.
These proposals are subject to approval by the company’s shareholders at the Allied World 2014 Annual Shareholder Meeting to be held on May 1, 2014.
About Allied World Assurance Company
Allied World Assurance Company Holdings, AG, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Allied World offers superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and Fitch.