Allied World Proposes Higher Dividend, $500 Mln Share Repurchase Program

(RTTNews) - Allied World Assurance Company Holdings AG (AWH) announced that its board has proposed an annual dividend increase of 35%, a new $500 million share repurchase program and a three-for-one stock split.

The company said that its board proposed an annual dividend increase of 35%, from $2.00 per share to $2.70 per share. The first of four proposed installments is expected to be paid in July 2014.

Although the company has $192 million remaining in its current program as of February 28, 2014, Allied World said it is asking shareholders to authorize a new $500 million program to replace the current program and allow the company to go farther out into the future expanding the company's ability to buy back stock at attractive valuations.

The company's board proposed 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 company 2014 Annual Shareholder Meeting to be held on May 1, 2014.