NU Online News Service, Dec. 1, 3:21 p.m. EST
Stock share buy-backs are a well accepted practice for improving shareholder value, but investors and insurers may not benefit in the property and casualty insurance industry, according to an analyst's note.
In a commentary on the p&c industry titled "[Excess Capital Conundrum] A Brief Homily Against Share Repurchases," Deutsche Bank Securities Inc.'s Joshua Shanker wrote this week that the industry was spared the credit disruptions other financial services companies experienced during the 2008-2009 credit crisis.
As a result, Mr. Shanker said there is now a "perceived excess equity" that is being used to return "a significant amount of capital."
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