Swiss Re may list part of stake in British unit at LSE

Friday, 07. June 2019 12:50

ReAssure Group Plc formally announced the intention on Friday to float on the London Stock Exchange after Swiss Re Ltd. said it plans to go public and reduce its holdings to below 50% with a sale via Swiss Re ReAssure Midco Ltd. The so-called closed life book consolidator based in the United Kingdom said at least 25% would be listed and that it expects to pay dividends of £265 million per year. MS&AD Insurance Group Holdings revealed it would hold its 25% share in the reinsurance firm, estimated by some analysts to be worth £3.5 billion pounds.

The Japanese company agreed to pay £315 million in December to boost its stake from 15%. The owner and its partner said they would proportionately increase the unit's capital by £481 million before the floating. The transaction would relieve the standalone firm of Swiss regulations and enable the switch to the more lenient Solvency 2 standard, according to the update.

"ReAssure has a long history of value-creating M&A deals and the generation of sustainable and resilient cash flows. We believe this will underpin attractive returns to shareholders. We see growth opportunities through further consolidation of closed life and pension books in the UK," said Mark Hodges, chief executive of the reinsurer with 4.3 million policies and £68.7 billion in assets under management.

Related Links: Swiss Re AG
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