Argo Group International Holdings Ltd shareholders are in line for a 10 per cent stock dividend.

The Bermudian insurer and reinsurer announced the move yesterday, as its board also authorised a $150 million stock buyback programme and announced a quarterly cash dividend of 22 cents.

The company’s shares rose $3.12, or 5.6 per cent, to $59 in New York trading yesterday as investors welcomed the moves.

The stock dividend is payable on June 15, 2016, to shareholders of record at the close of business on June 1, 2016. Shareholders will receive cash in lieu of fractional shares.

Argo said this would increase the number of common shares outstanding by approximately 2.8 million to 30.5 million.

The cash dividend will be paid on June 17, 2016, on a post-stock dividend basis, to shareholders of record at the close of business on June 1, 2016.

The buyback programme, which does not have an expiration date, allows the company to repurchase its shares opportunistically from time to time when it believes that doing so would enhance long-term shareholder value.