Birmingham, AL -(PRNewswire)- ProAssurance Corporation (NYSE: PRA) recently announced that the Board of Directors has declared a cash dividend of $0.30 per common share, payable on July 11, 2014 to shareholders who own our stock as of June 27, 2014. The Board also authorized an additional $100 million to be used for share repurchase or debt retirement. This brings the outstanding authorization to $202 million as of May 27, 2014.
“With this increase in our share repurchase authorization we are affirming the importance of share repurchase in our overall capital management strategy. Through May 27, 2014, this year’s repurchases total 2.2 million shares at a cost of approximately $100.6 million and, since January 1, 2007, we have repurchased 15.1 million shares, including the effect of our December, 2012 two-for-one stock split, at a cost of $453.7 million. We continually and carefully evaluate our capital management strategy to ensure that we are enhancing shareholder value while maintaining a level of capital that allows us to fund operations, address possible risks and pursue future growth opportunities,” said ProAssurance Chairman and Chief Executive Officer W. Stancil Starnes.
Our dividend policy anticipates a total annual dividend of $1.20 per share, to be paid in equal quarterly installments. However, any decision to pay future cash dividends will be subject to the Board’s final determination after a comprehensive review of the company’s financial performance, future expectations and other factors deemed relevant by the Board.
The company expects to continue deploying the funds in the share repurchase authorization over the near term, but purchases will depend on financial market conditions as well as the company’s view of its future capital needs. Any share repurchase will be subject to the rules of the New York Stock Exchange and applicable securities laws and regulations, including Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended. There can be no guarantee that any shares will be repurchased by ProAssurance either through the Plan or otherwise.