Ace is to buy back up to $US1.5 billion ($1.6 billion) of its shares by the end of next year, as it returns capital to shareholders.

Purchases will be made “from time to time”, depending on market conditions and the company’s view of risks and opportunities, it says.

Ace will also recommend a 24% increase in the company’s quarterly dividend to US63 cents (69 cents) per share.

“Following these actions, we retain considerable capital flexibility for risk and growth opportunities, which we will continue to pursue to enhance our strategic position and improve our global operations,” Chairman and CEO Evan Greenberg said.

Ace targets a dividend payout in the 30% range of its expected operating earnings, which it says is “appropriate” for a growth company.