Up to 35% of Lloyd’s insurer to be sold in IPO

Lloyd’s insurer Brit is planning to float on the London Stock Exchange in April this year.

Brit had been rumoured to be planning a float, and Brit chief executive Mark Cloutier hinted to Insurance Times last month that the company may be looking at an IPO.

The initial public offering (IPO) will mark a return to the stock exchange for Brit, which was delisted when it was acquired by private equity firms Apollo and CVC in 2011.

Under the IPO plan, Apollo and CVC will remain the largest shareholders of Brit and a minimum of 25% of the company will be listed on the stock exchange.

There will also be a 10% over-allotment option which, if exercised, would mean 35% of Brit would be floated.

Brit said the IPO plans had been triggered by Apollo and CVC’s desire to monetise part of their holdings in the company.

It added that while the insurer itself would not see any of the IPO’s proceeds, the float would benefit the company by giving it a wider range of capital-raising options and a way of incentivising staff.

Cloutier said: “We are very pleased to be bringing Brit to the market following a period of successful change for the business.

“In recent years we have transformed Brit into a global specialty insurer and re-insurer operating through our Lloyd’s of London platform.

“Our simpler, more focused business is now able to take maximum advantage of the global distribution and capital efficiency provided by Lloyd’s to generate further profitable growth.”

Brit chairman Richard Ward added: “Brit has reshaped itself into a world leader in global specialty insurance and reinsurance. Mark Cloutier has assembled an impressive team who are delivering strong returns founded on disciplined underwriting and a robust risk management framework.

“Through its expanded international reach the business has further opportunities to grow profitably. I am confident that Brit is well positioned for the next phase of its development as a publicly listed company.”