Bermuda-based insurer and reinsurer Argo has announced a 10 per cent stock dividend and a 22 per cent plus increase in its quarterly cash dividend.

The firm announced a quarterly cash dividend of 20 cents per share, compared to 18 cents per share on the previous quarter, to be paid on March 19.

The stock dividend will be paid on March 16 and shareholders will get cash in lieu of fractional shares.

Including the effect of the stock dividend, the 20 cent per share cash dividend is 22.2 per cent up on the amount declared in previous quarters.

The move means the outstanding shares in the firm will increase by around 2.6 million shares to 28.1 million shares outstanding.