Helios Underwriting PLC on Tuesday announced plans to increase its dividend policy with help from its forecast profit stream, and to commence a new share buyback worth up to £1.5 million.
The investment vehicle, which provides shareholders with participation in the Lloyd’s insurance market, said an increase in the annual base dividend - to 6 pence per share from 3p - will be paid from 2024 onwards.
Helios Underwriting believes that its anticipated future profit stream will support the increased payout, which may be further supplemented through special dividends.
Helios Underwriting also said it intends to recommence share buybacks, which it believes is in shareholders’ interest while the stock price remains below its tangible asset value. In late September it had reported a net tangible asset value of 154 pence per share at June 30.
Helios Underwriting shares were up 1.0% at 130.30p in London on Tuesday afternoon.
The newly announced buyback will return a maximum aggregate amount of £1.5 million to shareholders, and will be financed with Helios Underwriting’s existing cash resources.
Helios Underwriting is authorised to repurchase a maximum of 7.7 million shares for no more than 154p each. Its issued capital as of Monday consisted of 77.9 ordinary shares.
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