Specialist insurer Hiscox Ltd (HSX.L) has initiated a special dividend scheme, which comes after a magnificent financial performance in 2012. As per the Hiscox special dividend scheme, the shareholders will be rewarded with a 38 pence per share special dividend. Hiscox has confirmed the news of its special divided scheme as the Hiscox executive, Robert Childs, prepares to take over as the Hiscox chairman on Tuesday, substituting the outgoing chairman, Robert Hiscox.
Robert Childs has asserted that the shareholders were comfortable with him occupying the chairmanship despite the UK corporate governance code scorning appointments of internal candidates.
The Bermuda-based firm has asserted that it would make the distribution, totalling nearly 150 million pounds. This would be over and above a 12 pence per share payment, in place of a final dividend for 2012. This amount, in tandem with the interim dividend of 6 pence per share paid in September 2012, represents a complete dividend for 2012 equal to 18 pence per share. This statistic is up nearly 6% over the previous year.
As per the Hiscox special dividend scheme, the specialist insurer will return the capital through the issue of ‘B’ shares. This will enable the shareholders to obtain their cash proceeds as income or capital or any combination of the two. Of course, the Hiscox special dividend scheme is contingent on applicable foreign restrictions and tax laws. In accordance with the Hiscox special dividend scheme, each shareholder will obtain one B share, for every existing ordinary share, held on March 28.
In 2012, Hiscox posted a more than 10-fold increase in pretax profit to 217.1 million pounds. A year before, the statistic was 17.3 million pounds. The company is a specialist in insuring fine art, property, vintage cars and the assets of opulent persons and families.
Hiscox shares closed on Monday at 514 pence, valuing the company at GBP2.03 billion. As per the company, the Return of Capital will be combined with a merging and subdivision of existing ordinary shares. The outcome of the Share Capital Consolidation will be reducing the number of issued ordinary shares to reflect the diminishment in the Company’s overall net tangible assets. The shareholders will possess the same proportion of shares in the company as they did previously, contingent on fractional entitlements.