Michigan-based Meadowbrook Insurance Group, Inc. announced the decision by its Board of Directors to authorize the repurchase of up to 1,000,000 shares, or approximately 3%, of the Company’s common stock in market transactions over the next 24 months.
“Meadowbrook is a specialty risk management company providing solutions for agents, brokers, professional and trade associations, and insureds of all sizes,” said the announcement. It also also operates “retail insurance agencies representing policyholders in placing their insurance coverages with unaffiliated insurance companies.”
It has 29,787,194 shares outstanding, which are listed on the New York Stock Exchange, which closed Tuesday at $2.44, up 4 cents on the news. They reached a high of $4.14 last may, following a 52 week low in December of$1.66. The company said it would utilize “free cash flow at the holding company level” to make the share purchases.
Commenting on the share repurchase plan, Meadowbrook’s President and CEO Robert S. Cubbin stated, “Execution of this plan will be accretive to our book value per share and allow us to balance our capital needs, while taking economic advantage of the current share price.”
Topics Mergers & Acquisitions
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