Swiss Re has hit a snag in its planned initial public offering (IPO) of UK closed book subsidiary ReAssure.
Announcing the suspension of the IPO this morning, Swiss Re noted: “This action is in response to the heightened caution and weaker underlying demand in the UK primary market from large institutional investors.”
Swiss Re group chief financial officer John Dacey, meanwhile, suggested that the London listing isn’t a matter of urgency.
“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,” stated the CFO.
“We retain our objective to reduce Swiss Re’s ownership in order to de-consolidate ReAssure.”
Dacey added that for now Swiss Re and fellow shareholder MS&AD Insurance Group Holdings remain fully committed and supportive of the business and its management team.