Reinsurer Conduit issues $ 1.1 billion in shares

(Reuters) – Conduit Holdings, a newly established reinsurance business, said on Thursday that it plans to issue $ 1.1 billion worth of new shares as it grows for a London Stock Exchange listing.

The proposal comes at a time when the pain of steep claims due to the coronavirus crisis combined with years of high insured losses has led to major corrections in pricing and reinsurance insurance terms.

Conduit, which will be led by founders Neil Eckert and Trevor Carvey, expects to use money raised to write real estate reinsurance / accident and specialty classes.

"We believe these are exceptional times in every way and a truly opportunistic time to start a new reinsurance business," said Eckert, the appointed CEO. [1

9659002] Swiss Re, one of the world's largest reinsurance groups, last year suspended plans for a $ 4.1 billion IPO in London for its ReAssure business, citing weak demand from institutional investors, and eventually sold it to the UK insurance company. Phoenix.

However, many companies such as Warren Buffett-backed data warehousing company Snowflake Inc. and UK-based online retailer The Hut Group have gone public this year despite the market volatility caused by the pandemic.

Conduit said it has engaged Jefferies and Panmure Gordon as joint global coordinators and joint book buyers, while Kinmont and GC Securities will be joint financial advisors for the listing.

More insurance and risk management news about the coronavirus crisis here.

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