Swiss Re announces delay of ReAssure Group's IPO

Weak investor demand motivated Swiss RE AG to suspend it’s initial public offering of ReAssure Group Plc, Bloomberg reported on Thursday.

The initial IPO offering for ReAssure, a life and pensions company which buys and administers closed books of business from other companies, was at 280 pence to 330 pence apiece, suggesting a value of 3.3 billion pounds ($4.1 billion).

Bloomberg stated that the world’s second-largest reinsurer said it took the decision due to heightened caution and weaker underlying demand among large institutional investors in the U.K. primary market.

“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,” said John Dacey, Swiss Re’s CFO, in a statement.

News of ReAssure’s IPO delay may impact another transaction — Prudential Plc is planning to sell M&G Prudential, its European business valued at 13.6 billion pounds ($17 billion). However, plans for the demerger are still in place, said a Prudential spokesman.

Following Bloomberg’s initial report of Swiss Re considering the suspension of the IPO, Swiss Re shares fell 2.5% on Wednesday and another 0.2% as of Thursday morning in Zurich.

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