Rothesay Life bid for Swiss Re’s ReAssure could scupper IPO

Insurer Rothesay Life is mulling making a £3.5 billion bid for ReAssure, Swiss Re’s UK closed book business, potentially jeopardising plans to list the unit this year, according to reports.

Swiss Re confirmed late last year that it was continuing to explore an initial public offering (IPO) of the business. In preparation for the move, it also appointed Mark Hodges, the CEO of Centrica Consumer division, as CEO of ReAssure from 1 March 2019.

The reinsurer said the new CEO would steer the ReAssure business through an anticipated IPO in 2019 and will lead its next phase of expansion as an independent listed closed book consolidator.

It said the IPO would be necessary given the size of potential opportunities that are expected to arise in the market in the mid-term. It said it would be important for ReAssure to have access to substantial new capital to acquire additional closed books.

Swiss Re Life Capital CEO Thierry Léger said at the time: "We are very pleased to have Mark Hodges as the new CEO for ReAssure. He combines strong leadership skills with deep industry knowledge. I am confident that he is the right person to lead ReAssure through the next stage of its development into an even more successful future."

Both Rothesay Life and Swiss Re have not yet commented on the reports.

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