Board describes move as "highly attractive" investment opportunity
Brit Insurance has issued a share buy back, purchasing 813,000 Ordinary Shares of 75p each at an average price of 227.2p.
The number of shares, purchased in three tranches, represents 4.58% of the voting rights. All the purchased shares will be held as Treasury shares, of which the company holds a total of 15,114,412.
The authority for the purchase is derived from shareholders, who granted the company the power at its AGM on 24 April.
In a statement the company said: “In light of the current share price, the Board believes that the buy-back represents a highly attractive investment opportunity and will enhance returns to shareholders.”
This follows the Company's employee benefit trust’s move earlier this month to purchase 2,175,381 shares for £5.1m, at an average cost of 232.81p.
Over the last week, Brit share prices have remained stable at 227.5p, a fall of less than one per cent.
They have fallen by almost a third in the last three months due to sub-prime exposure in the US.
