Swiss Re suspends £3.3bn ReAssure IPO due to weak investor demand in UK market
Zurich-based reinsurer Swiss Re has suspended its previously announced initial public offering (IPO) of UK closed life book business ReAssure citing weak investor demand and market conditions.
"This action is in response to the heightened caution and weaker underlying demand in the UK primary market from large institutional investors," Swiss Re said in a statement.
Earlier in June, the company disclosed its set price range of £2.80 to £3.30 per share, implying a market capitalisation of 2.8 billion to £3.3 billion, for the IPO.
Swiss Re’s group chief financial officer John Dacey said: "While we firmly believe that the long-term interests of ReAssure are best served by a more diversified shareholder base, there has been no pressing need for Swiss Re to divest shares at a price that we consider to be unrepresentative of ReAssure’s value and future prospects.
"We retain our objective to reduce Swiss Re’s ownership in order to de-consolidate ReAssure. In the meantime, Swiss Re and MS&AD remain fully committed and supportive of ReAssure and its management team, and will participate in future acquisitions in line with their respective shareholdings."
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