Fireman’s Plans Stock Repurchase
NOVATO, Calif. (AP) _ Fireman’s Fund Corp. plans to repurchase 6 million shares of its common stock on the open market and through private purchases, a move involving about 9.5 percent of its common stock.
The announcement on Wednesday did not set a time limit to complete the repurchase.
Fireman’s Fund stock was quoted at $38 per share in early New York Stock Exchange trading today, making the total value of the buyback in the neighborhood of $228 million.
The company has just completed a repurchase of 5 percent of its shares, authorized last December.
The company also said Wednesday it realized about $114 million in after-tax capital gains on its investment portfolio during the first 40 days of the third quarter.
The figure compared to $73 million in net capital gains earned during all of 1986 and followed $124 million in net capital gains recognized in the first half of 1987.
The company’s realized capital gains so far this year already top last year’s total net income of $228 million.
Fireman’s Fund usually releases capital gains figures at the end of each quarter but released these figures early because ″to make that much money in that short a time is material,″ said company spokeswoman Carole Kelleher.