IAG TO BUY BACK 5% OF ITS STOCK TO OFFLOAD EXCESS CAPITAL

Insurance Australia Group’s shares rose by nearly 3% today on the news that it plans to buy back A$350m-worth of ordinary shares, equal to about 5% of issued stock. The Sydney-based operation said that the offer would run for four weeks from May 24. CFO George Venardos said that a buyback was the “most appropriate way” for IAG to return excess capital. A tender process will be used, allowing eligible shareholders to offer to sell their shares within a range of A$4 to A$5, or as a final price tender. IAG closed at A$4.71 on Thursday, prior to the announcement.