USF&G is doubling stock buyback

Maryland Watch

September 26, 1996

USF&G Corp. directors voted yesterday to more than double the amount of common stock the company can repurchase to 11 million shares from 5 million.

The Baltimore-based insurer has bought 3.6 million shares since it began purchasing its stock in April.

The move reflects USF&G's belief that the once troubled insurer's franchise will increase in value over the next several years, the company said.

"We believe that USF&G's stock represents a highly attractive investment opportunity for us," said Norman P. Blake Jr., chairman and chief executive of the $14.4 billion-asset property, casualty and life insurance company. "We are significantly improving the profit mix of our businesses."

Since a two-day meeting with analysts that began Sept. 5, USF&G stock has gained 13.7 percent, closing up 25 cents yesterday at $18.625 -- a high for the year to date.

"They came and they liked what they saw," said Kerrie Burch-DeLuca, a USF&G spokeswoman.

USF&G's board also authorized repurchasing shares of its Series B cumulative convertible preferred stock.

Pub Date: 9/26/96

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