Swiss Re announced Thursday the suspension of its previously communicated plans for an initial public offering (IPO) of ReAssure.
This action is in response to the heightened caution and weaker underlying demand in the UK primary market from large institutional investors, Swiss Re said in a statement.
Swiss Re’s Group Chief Financial Officer John Dacey said, “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.”
Dacey added that, “We retain our objective to reduce Swiss Re’s ownership in order to de-consolidate ReAssure. In the meantime, Swiss Re and MS&AD remain fully committed and supportive of ReAssure and its management team, and will participate in future acquisitions in line with their respective shareholdings.”
Further public statements will be made if and when appropriate, the company said.