Axis Capital Holdings Ltd will repurchase up to $750 million of its own shares by the end of next year.

The Bermuda-based insurer and reinsurer also raised its quarterly dividend by 21 per cent to 35 cents per share — its twelfth consecutive annual dividend increase.

The company received a $315 million windfall earlier this year in the form a merger termination fee after its planned combination with PartnerRe was derailed by Italian investment firm Exor, which ended up buying the Bermuda reinsurer for $6.9 billion.

The buy-back authorisation, approved by the Axis board and announced today, represents more than 13 per cent of the company’s $5.5 billion market capitalisation and will replace the existing authorisation which has $444 million remaining on it.

Albert Benchimol, the chief executive officer of Axis, said: “We have a strong track record of returning excess capital to shareholders through share repurchases and dividends that dates back to our initial public offering in 2003.

“In the period from 2011 through the end of the most recent quarter alone, we have returned to shareholders $2.3 billion in the form of dividends and share repurchases, representing 115 per cent of the sum of our operating earnings in this period and the merger termination fee received this year.”

The common share dividend will be payable on January 15, 2016 to the shareholders of record at the close of business on December 31, 2015.

Mr Benchimol added: “With total capital in excess of $6.8 billion as of September 30, 2015, and our ability to complement our strong balance sheet with capital from third-party providers to service clients and create new business opportunities, we are confident that we can meet our growth targets while maintaining our financial strength and returning excess capital to shareholders.”