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Brit Insurance sounds out investors for April IPO

Last updated: 00:00 05 Mar 2014 AEDT, First published: 01:00 05 Mar 2014 AEDT

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Brit Insurance will rejoin the stock market in April if all goes to plan as the insurance group’s private equity owners eye a lucrative payday. 

The company, which was taken private by Apollo and CVC in October 2010, did not name its price to investors as it is yet to pitch the offer to institutions.

Reports however suggest a £1bn market valuation could be on the cards.

Brit confirmed its private equity backers are planning to “realise part of their investment in the group by way of the offer” by making at least 25% of the company available to the public.

The listing will coincide with an end to its sponsorship of England’s cricket team following a dismal run of performances from Alastair Cook and co. 

The cash saved on the four-year sponsorship deal worth £18mln will come in handy when it forks out for the flotation next month.

Brit is now focused on specialist corporate insurance and reinsurance after selling the remaining parts of its UK general insurance arm a couple of years ago.

Pre-tax profits rose from £100mln to £113mln last year, which has laid the foundations for a maiden annual dividend of £75mln.

Chief executive Mark 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.”

 

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