The board of directors of Infinity Property and Casualty Corp. (IPCC) approved a 20% increase in its quarterly cash dividend. The property and casualty insurer will now pay a quarterly dividend of 36 cents per share, up from 30 cents per share distributed in 2013. The first increased quarterly dividend will be paid on Mar 28, 2014 to shareholders of record as on Mar 14.
The increased quarterly dividend is equivalent to an annual dividend of $1.44 per share. Based on yesterday’s closing share price of $14.01, the increased dividend implies a yield of 1.99% for Infinity Property and Casualty.
The dividend hike is primarily supported by the company’s sturdy financial position with strong retained earnings and cash balance. Moreover, improving underwriting results are driving bottom-line growth at the company which in turn cushions the dividend payout.
Based on around 16.2 million shares outstanding, Infinity Property and Casualty will have to dish out roughly $4.2 million as quarterly dividend.
Infinity Property and Casualty has been consistently distributing profit among its shareholders for the last several years. The latest dividend increase marks the tenth consecutive year of dividend hike. Infinity Property and Casualty has increased its quarterly dividend at a 10-year CAGR of 20.7%.
Among other life insurers, the board of directors of FBL Financial Group Inc. (FFG) recently approved a whopping 133% increase in its quarterly cash dividend. The multi line insurer will now pay a dividend of 35 cents per share, up from 15 cents distributed earlier.
The board of another property and casualty insurer, AmTrust Financial Services, Inc. (AFSI) raised its regular quarterly dividend by 43% on Feb 18, 2014. The company will now pay a quarterly dividend of 20 cents per share, up from 14 cents a share paid previously.
The board of directors at XL Group plc (XL) recently sanctioned a 14.3% hike in its quarterly dividend. The company will now pay a dividend of 16 cents per share, up from 14 cents paid on Dec 31, 2013.
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