The Bermuda-based Catlin Group Limited (CGL) has confirmed its intention to offer shares to the public. (See IJ Website Mar.4) and to seek a listing on the London Stock Exchange.
CGL, which does business both in Bermuda and at Lloyd’s, aims to raise around £109 million ($200 million). Current market conditions, which have seen significant increases in the value of insurance stocks as companies report good results, are certainly favorable. The IPO is tentatively scheduled for later this month.
A successful IPO would raise the company’s capitalization to over £700 million ($1.28 billion), giving CGL significantly increased capacity and making it the largest participant in the Lloyd’s market.
The company raised £482 million ($884 million) in 2002 through a private sale to investors. Since then it has performed well in the post Sept. 11 insurance market. CGL has been actively expanding, recently opening a London branch office – outside of Lloyd’s – and the new capital will support continued expansion.