Chaucer Announce Growing Dividend Payments

by Stewart Douglas

Story link: Chaucer Announce Growing Dividend Payments

Insurance parent company Chaucer Holdings has today announced that its board of directors have recommended an increased dividend payment of £5.00 per share, up 25% from the dividend declared by the company last year, reflecting an increase in profitability overall from its insurance business divisions.

The company, which holds amongst others insurer Chaucer has announced that it is to pay out a dividend of £5.00 per share from £4.00 per share, provided there are no unforseen externalities that come to bear over the coming period, which should see a final dividend of £3.50 per share paid for 2007.

Speaking today on their decision, the board of Chaucer Holdings have also announced a projected dividend of £5.50 for 2008, and further increases by 10% increments over the course of the remainder of the decade in line with its ongoing expansion plans, which it hopes will secure its reach within its core insurance markets over the coming years.

The board of directors also announced their intention to continue to maintain capital for the benefit of shareholders overall, with a view to providing sufficient weight to ordinary capital balanced against the priority of raising funding for future growth strategies.

Chaucer Chief Executive Ewen Gilmour today, speaking on the announcement, said that the real term growth in dividend this year, and the forecast growth in distributions over the coming three years were indicative of its ongoing development and strategic growth strategies. Additionally it recommended some caution in relation to extreme weather-related losses over 2008, but forecast overall strong continued performance over the near future.

Assuming Chaucer experiences a year similar to this over 2008, its dividend increases and company growth strategy should realise fruition, with a view to increasing all-round profitability across its insurance business holdings.