Swiss Re shelves ReAssure's market listing

Thursday, 11. July 2019 07:34

"Heightened caution and weaker underlying demand" by big institutional investors in Britain were cited by Swiss Re Ltd. on Thursday as it said it would suspend the initial public offering of ReAssure Group Plc. The floatation planned for this month on the London Stock Exchange was supposed to take the stake in the reinsurance unit to less than half. The owner published the intention one month ago to list at least one quarter of the subsidiary controlled together with MS&AD Insurance Group Holdings of Japan.

As part of the preparation, Mark Hodges was hired as chief executive in December and left Centrica Consumer. ReAssure's head of finance John Dacey today said there has been no pressing need for an IPO at an unfavorable price but that diversification of ownership remains in its long-term interest. "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," he stated.

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