Promina to pay out $260m to investors

SYDNEY - Promina, Australia's second-biggest general insurer, is to return about A$244 million ($260 million) to shareholders and flagged the possibility of another capital return in the second half.

Two months ago, Promina said it would give back to shareholders up to A$250 million in cash in the first half to June 30, after bumper investment returns in a buoyant sharemarket helped its 2004 net profit rise 54 per cent to A$458 million.

"There is still further work to do to achieve our optimal capital structure," chief executive Mike Wilkins said.

But given the right circumstances, he said, "there may be scope" for a further return later in the year.

- REUTERS