Swiss Re Expects to Raise $3.6 Billion

Swiss Re (XFRA: SR9, SREN.SW, SSREY), the world’s second-biggest reinsurance group, said early Thursday that it had set a price range of 2.80 pounds ($3.6) to 3.30 pounds for the initial public offering of its UK life assurance business ReAssure.

This implies that on floatation, the UK subsidiary will have a market capitalization 2.8 billion pounds ($3.6 billion) to 3.3 billion pounds, according to a statement.

The offer to go public is expected to deliver a free float of 26% of ReAssure’s issued share capital. Swiss Re said it was setting aside shares representing up to 15% of the offer for over-allotment.

Swiss Re announced in August 2018 that it was exploring a possible floatation of ReAssure, the business that focuses exclusively on the acquisition and management of closed books of life insurance policies. As part of plans set out previously, Swiss Re would seek to reduce its stake to below 50% from 75% currently following the UK listing.

The Zurich, Switzerland-headquartered group, that operates through a network of about 80 offices globally, said that the prospectus for the offer was expected to be published later on Thursday, pending approval from the UK’s market regulator, the Financial Conduct Authority.

The listing of ordinary shares on the main market of the London Stock Exchange is expected to occur in July 2019, Swiss Re said in a statement earlier this month.

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