property catastrophe reinsurer, LaSalle Re, pushed its stock price up.

The new strategy, expected to benefit shareholders with a substantial increase in dividends, had the stock trading $1.875 higher by early afternoon.

The company intends to distribute 50-60 percent of the net operating earnings from the prior fiscal year in four quarterly dividends, each subject to board approval.

The reinsurer said that dividends should improve from the current quarterly dividend of 25 cents per share, a current dividend yield of five percent.

The firm is taking action to better manage capital, and also is to consider repurchasing stock periodically.

Chairman, president and CEO, Victor Blake stated: "LaSalle Re employs a conservative underwriting philosophy, stressing pricing discipline over premium volume, and writing business that provides appropriate risk/return profiles.

"The enhanced capital management strategy reflects an ongoing effort to balance capital levels in line with rating agency expectations, while providing excellent security for our clients, and superior returns to our shareholders.'' The new dividend policy would be subject to review by the board, and possible modification, in the event of a major catastrophe or other changing circumstances.

LaSalle Re's chief financial officer, Andrew Cook, said , "We've always said we would consider paying extraordinary dividends, but the market didn't factor in the potential for extraordinary dividends in our share price.

"Our new policy will provide more certainty for the marketplace.''