Heritage targets $92m IPO; Nephila invests $10m

Insurer Heritage expects to raise $92 million from its initial public offering (IPO) on the New York Stock Exchange.

An affiliate of Nephila Capital, Ananke Re, has agreed to purchase $10 million of common stock in a separate private placement.

The insurer expects to sell between 6 and 6.9 million shares at $14 to $16 each.

It intends to use $55 million of the net proceeds from the offering and private placement to increase its statutory capital and surplus, enabling it to write additional policies. $25 million of the net proceeds will be used to fund collateralised reinsurance through Osprey, its reinsurance subsidiary.