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IPO confirmed

Former Widows CEO Kane leads ReAssure to listing

Scottish WidowsA closed book life insurance consolidator, chaired by former Lloyds Bank and Scottish Widows executive Archie Kane, has confirmed plans to float the business on the stock market.

The announcement by ReAssure Group, a subsidiary of Swiss Re, appears to end any lingering possibility of it being acquired by Rothesay Life which was rumoured at the start of the year to be planning a £3.5 billion offer.

ReAssure has 4.3 million policies and £68.7 billion of assets under administration. Swiss Re announced in August 2018 that it was exploring a possible IPO of ReAssure. The reinsurer’s CEO, Christian Mumenthaler, stated previously that he did not consider Swiss Re to be the ideal owner of the business.

Kane, former CEO at Widows (pictured)  was appointed non-executive chairman in January. He said: “Today’s announcement marks a milestone in our corporate development. ReAssure is a scale player with a proven track record.

“We have developed a valuable franchise with the potential for significant future growth in the UK closed book markets.

“Our focused business model and highly-experienced management team put us in a powerful position to deliver attractive returns. I am pleased that we have assembled a diverse board with a depth of experience which will provide strong strategic guidance and governance.”

Chief executive Mark Hodges added: “ReAssure has been highly successful, as part of one of the world’s largest reinsurance companies. Our long-term success has been founded on positive customer outcomes.

“Today I am delighted we are taking the next and natural step for this business, exploring a potential IPO.

“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. Our track record, proprietary operating system and focus on the customer, are capabilities that will support our growth.

“A potential IPO would provide us with additional flexibility to take advantage of the opportunities we see.”

 

 

 

ReAssure, on



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