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IPO price range values Swiss Re's ReAssure at up to £3.3 billion

IPO price range values Swiss Re's ReAssure at up to £3.3 billion
FILE PHOTO: The logo of insurance company Swiss Re is seen in front of its headquarters in Zurich, Switzerland February 12, 2019. REUTERS/Arnd WIegmann -
Arnd Wiegmann(Reuters)
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ZURICH (Reuters) – Swiss Re has set a price range of 2.80 to 3.30 pounds for shares in the flotation of its UK life assurance business ReAssure, the world’s second-largest reinsurance company said on Thursday.

The price range implies a market capitalisation of 2.8 billion to 3.3 billion pounds for the ReAssure flotation due to take place next month.

The offer is expected to deliver a free float of 26% of ReAssure’s issued share capital. Shares representing up to 15% of the initial offer will be made available as an over-allotment option, which if exercised will take the free float up to nearly 30%.

Swiss Re said the IPO prospectus is due to be published later on Thursday, pending approval from Britain’s Financial Conduct Authority.

Zurich-based Swiss Re is spinning off ReAssure to put the business under a more favourable regulatory regime and give it easier access to capital to fund its expansion.

ReAssure, Britain’s sixth-largest life insurer, has 68.7 billion pounds of assets under administration and focuses on so-called closed book policies that are shut to new customers.

Under the flotation plans, Swiss Re would cut its stake in ReAssure to below 50% from 75% now. Japan’s MS&AD Insurance Group Holdings intends to keep its holding at 25% after the initial public offering.

(This story corrects amount allocated in over-allotment in paragraph 3)

(Reporting by John Revill; Editing by Michael Shields)

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