Investors welcome RLI special dividend
The majority of US-listed (re)insurers traded up last week as the third quarter reporting season drew to a close.
Shares in US speciality insurer RLI climbed 2.31 percent as it handed back $65mn to investors via a special dividend of $3 per share. This came on top of the company's regular $0.34 per share quarterly dividend. The company's share price has risen by 51 percent since the beginning of the year.
Allied World's shares were also up last week after its issuer credit rating was upgraded by one notch to a+ by AM Best. The positive reaction from investors saw its share price rise by 1.61 percent.
Meanwhile, Bermudian vehicle Third Point Re's shares declined by 3.53 percent last week as its third quarter results disappointed investors. The reinsurer's top line growth was marginal at just 8.9 percent, while the bottom line was affected by a $4.9mn loss at the company's underwriting arm.
Ailing (re)insurer Tower Group crept back into the limelight last week after it announced that there was "substantial doubt" over whether it can continue as a going concern. The company outlined plans to reissue its financial statements for 2011 and 2012 as the insurer admitted it was struggling to find a solution that will ensure survival if its creditors lose patience.