Max Capital Group has inicreased its authorised share repurchase programme by $50 million, which takes its current outstanding authorisation to $75.3 million.

The Bermuda-based company said it may use up to $50 million of its authorisation to enter into an accelerated share repurchase programme during this month.

At the same time Max had also given an outlook to how its fourth quarter has been shaping up, including hinting that there may be a "small reserve release" once it has completed a review of its reserves.

Max stated that:

• It has completed two life and annuity reinsurance transactions during the fourth quarter with associated premium volume of approximately $170 million.

l Its fixed income portfolio had positive returns for the two months ended November 30. The portfolio has benefited from interest rate declines, while experiencing limited credit spread widening.

•The company's alternative asset portfolio (with a current market value of approximately $1.2 billion) performed above expectations for the two months ended November 30. Reported returns (net of fees) for the alternative asset portfolio were approximately four percent for the month of October and zero for November; and

l The Company has repurchased 1.2 million shares during the fourth quarter to date, for a total consideration of $34.7 million. Accordingly, the Company has 57.5 million common shares outstanding as of November 30.

W. Marston (Marty) Becker, chairman and chief executive officer of Max Capital Group, said: "Max continues to enjoy excellent underwriting results and we expect our fourth-quarter alternative asset investment returns to once again meet or exceed our two percent quarterly target despite currently volatile market conditions.

"This combined performance is further confirmation of the soundness of Max's business model and at current trading levels we believe share repurchases are a compelling value for Max shareholders."