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LONDON (Alliance News) - CATCo Reinsurance Opportunities Fund Ltd Friday said it intends to make of return of value to shareholders of roughly USD74 million.
The investment fund said it intends to make a return of value to shareholders of USD0.20 per share based on a closing market price of USD1.112 per share on December 31 2013.
The proposed deal represents roughly 18% of the company market capitalisation at the end of December.
The company said it decided to make the payment after incurring no significant insured losses on its 2013 investment portfolio and its net asset value benefiting from roughly 20 cents per share of net insurance premiums earned over the full year.
CATCo said a circular has been sent to shareholders, but if they do not agree to the return to value plan, the payments will likely be made through dividends.
The company said in December that it was weighing up the viability of paying more than its target annual dividend - as long as there are no significant insured losses in respect of the 2013 investment portfolio.
CATCo shares were up 1.9% to 1.13 pence Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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