Universal Insurance Holdings Buys Back Stock From Ex-CEO

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Universal Insurance Holdings has announced a share-repurchase program with a twist. The company has closed the purchase of 2 million shares held by its former CEO, Bradley Meier, and agreed to buy back an additional 2 million from him in the near future.

Universal bought the stake for $4.02 per share, for a total of $8.04 million. It will pay the same price for the second tranche, in a purchase that will be effected before June 1 of this year.

The insurance conglomerate bought those shares at a notable discount; the company's most recent closing price was $4.88.


According to the company, the two repurchase actions will reduce the number of outstanding shares by nearly 10%.

The article Universal Insurance Holdings Buys Back Stock From Ex-CEO originally appeared on Fool.com.

Fool contributor Eric Volkman and The Motley Fool have no position in Universal Insurance Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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