A prominent British insurance duo will brave choppy equity markets to launch a £150m fundraising for a new vehicle that will target a merger with a leading industry name.
Sky News has learnt that Andy Rear, a former Munich Re executive, and Will Allen, who has worked for the investment bank KBW, plan to unveil FINSAC, a special purpose acquisition company (SPAC), on the London Stock Exchange in the coming days.
The new shell company has lined up senior insurance industry figures including David Morant, a veteran fund manager, and Paul Jardine, the chairman of Lloyd’s of London managing agent Asta, as non-executive directors.
AdvertisementDominic Christian, Aon’s global chairman for reinsurance solutions, is also involved in the new venture, according to industry sources.
More from BusinessLast October, Sky News revealed that FINSAC’s founding team had secured cornerstone commitments from fund managers including Toscafund, while Empyrean Capital, a US-based firm, is also now said to have signed up to invest in the initial public offering (IPO).
One insider said the calibre of the cornerstone investors would breed confidence among other institutions when the listing is formally announced, which could be as soon as next week.
FINSAC will form part of an anticipated wave of SPACs listing on the London Stock Exchange, with recent rule changes aimed at making it easier for such vehicles to float in the UK.
The SPAC, which has hired Barclays, HSBC, Numis and The Growth Stage to work on the float, is said to have picked London’s standard segment as its listing venue because of the depth and history of innovation in the UK insurance sector.
It is likely to consider merging with a fast-growing company in an area such as insurtech, which has spawned a wave of British ‘unicorns’ like Marshmallow.
FINSAC declined to comment.