Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.
BREAKING NEWS

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 -
Copyright
Arnd Wiegmann(Reuters)
Euronews logo
Text size Aa Aa

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)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.