Dj Cfo Bryant Acquires 5269 Of Rli Corp >Rli

Fidelity National Financial, Inc.’s FNF board of directors approved a 4% hike in cash dividend to 50 cents. Shareholders, as of the close of business on Dec. 17, 2024, will receive the quarterly dividend on Dec. 31, 2024.

FNF’s distribution of wealth to shareholders via dividend hikes is impressive. Fidelity National has increased dividends at a 10-year CAGR of 9.7%. The dividend yield is 3.2%, better than the industry average of 0.3%.

Fidelity National enjoys a scale advantage, given its market-leading position in residential purchase, refinance and commercial markets. Its scale and volume fuel revenues and lower costs provide a competitive advantage. Real estate-related businesses complement its core title business. The title insurer’s strategic move to buy F&G Annuities & Life, a leading provider of annuity and life insurance concentrated in the middle-income market with a diversified growth strategy, shields it from the volatility integral to the core title insurance business. Fidelity National is investing in technology to widen its market-leading position.

Solid retail annuity sales and F&G's presence in institutional markets benefit assets under management. F&G invests in a high-quality and well-diversified portfolio and its average assets under management growth drives earnings.

These positives should help the title insure retain the dividend hike streak.

Shares of FNF have gained 18.1% year to date, compared with the industry’s 30% increase. Market share growth, solid margin, competitive advantages, strong track record of technology innovation and wealth distribution should help this title insurer trend higher.

FNF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Shareholder-Friendly Moves in the Insurance Space

Given a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like RLI Corp. RLI, Selective Insurance Group, Inc. SIGI and American Financial Group, Inc. AFG have resorted to effective capital deployment to enhance shareholders’ value.

RLI Corp.’s board of directors approved a special cash dividend of $4.00 per share. This specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 15th straight special dividend.RLI’s diversified product portfolio, strong local branch-office network, focus on specialty insurance lines growth via organic opportunities and acquisitions and financial strength should continue to help boost shareholders’ returns.

The board of directors of Selective Insurance authorized a 4% increase in the quarterly cash dividend to 38 cents per share in October 2024. Such steadfast endeavors buoy confidence among investors, making it an attractive pick for yield-seeking investors. Its dividend yield of 1.4% appears attractive compared with the industry average of 0.2%.

In November 2024, American Financial declared a special cash dividend of $4.00 per share in the third quarter, the aggregate amount of this special dividend will be approximately $335 million. American Financial Group’s 2.3% dividend yield is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. AFG’s robust operating profitability at the property and casualty segment and effective capital management support shareholder returns.

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RLI Corp.’s RLI board of directors approved a special cash dividend of $4.00 per share. This specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 15th straight special dividend.

RLI expects to pay $183 million as a special dividend. Concurrently, the board of directors announced a regular quarterly cash dividend of 29 cents per share. The special and the quarterly dividends will be paid out on Dec. 20 to shareholders of record as of Nov. 29, 2024.

The board also announced a two-for-one stock split. The two-for-one stock split will be distributed out on Jan. 15, 2025, to shareholders of record as of Dec. 31, 2024. Trading of the shares will begin post-split on Jan. 16, 2025. Both the regular and special dividends will be paid on the pre-split shares.

RLI’s Impressive Dividend History

RLI has been paying dividends for 187 consecutive quarters and increased regular dividends in the last 49 straight years. Its dividends witnessed a five-year (2019-2024) CAGR of 8.8%. Based on the stock’s Nov. 7 closing price of $166.34, the new dividend will yield 0.7%, which is better than the industry average of 0.2%.

Financial Strength and Capital Management

This insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering 28 consecutive years of underwriting profitability. This insurer stays focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, strong local branch-office network, focus on specialty insurance lines growth via organic opportunities and acquisitions and financial strength should continue to help boost shareholders’ returns.

The underwriter maintains a solid balance sheet with sufficient liquidity and strong cash flow, helping it meet the interests of its policyholders, enhance operations in the insurance sector and aid growth in its book value for the long term. RLI maintains a conservative underwriting and reserving policy and continues to achieve favorable reserve releases from the prior years. Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 19.03% in the trailing 12 months, which compared favorably with the industry average of 7.9%.

Zacks Rank and Price Performance

Shares of this Zacks Rank #3 (Hold) property and casualty insurer have gained 25% in the year-to-date period compared with the industry’s return of 30.8%. Superior underwriting discipline and sound capital structure should help shares trend higher. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Insurers on the Same Path

Given a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like Selective Insurance Group, Inc. SIGI, American Financial Group, Inc. AFG and The Hartford Financial Services Group, Inc. HIG have resorted to effective capital deployment to enhance shareholders’ value.

The board of directors of Selective Insurance authorized a 9% increase in the quarterly cash dividend to 38 cents per share in October 2024. Such steadfast endeavors buoy confidence among investors, making it an attractive pick for yield-seeking investors. Its dividend yield of 1.4% appears attractive compared with the industry average of 0.2%.

In November 2024, American Financial declared a special cash dividend of $4.00 per share in the third quarter, the aggregate amount of this special dividend will be approximately $335 million. American Financial Group’s 2.3% dividend yield is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. AFG’s robust operating profitability at the property and casualty segment and effective capital management support shareholder returns.

The Hartford Financial Services increased the quarterly common dividend per share by 11% in October 2024. Its capital appreciations, repayment of government funds and measures to de-risk its balance sheet have increased its financial strength. It also has an intelligent capital management strategy, featuring share buybacks and dividend hikes.

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