The Bermuda-based Max Capital Group Ltd. announced a $50 million increase in its share repurchase authorization, taking the current outstanding authorization to $75.3 million. The Company said it “may use up to $50 million of its authorization to enter into an accelerated share repurchase program in December 2007 or such other time as the Company believes appropriate.”
Max Capital also provided information regarding its current outlook for the fourth quarter.
Generally the Company continues to profit from the “absence of significant catastrophe activity thus far in the quarter,” as its “insurance and reinsurance casualty underwriting units continue to develop as expected.”
The announcement explained that Max Capital is “in the process of preparing its regular quarterly internal review of reserves. Upon completion of this review, at the end of the quarter, the Company may determine the need to revise reserve estimates positively or negatively based on the loss trends evidenced in 2007. Based on the information currently available to management, the Company believes there could be a small reserve release.”
Chairman and CEO W. Marston (Marty) Becker commented: “Max continues to enjoy excellent underwriting results and we expect our fourth-quarter alternative asset investment returns to once again meet or exceed our two percent quarterly target despite currently volatile market conditions. This combined performance is further confirmation of the soundness of Max’s business model and at current trading levels we believe share repurchases are a compelling value for Max shareholders.”
Source: Max Capital Group – www.maxcapital.com
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