Speciality insurer Brit Group is set to return to the London stockmarket next month after an almost four-year absence.

The corporate insurance and reinsurance provider could be valued at £1 billion at April’s flotation, according to reports.

Brit returned to private hands in 2010 after private equity firms Apollo and CVC spent £888 million buying the business. A quarter of the business will now be offered for sale. The proceeds will be shared by the owners with no fresh capital available for the company.

Chaired by former Lloyds of London boss Richard Ward, Brit is a different business from the one that last traded on the stockmarket due to the owners selling its UK general insurance operations to focus on international property, casualty and energy.

Brit intends to share a £25 million interim dividend this year and says special dividends will be considered in the future if spare cash cannot be adequately employed within the business.

The Netherlands-domiciled company is in good shape. It had £263 million cash at the end of 2013 on a 20.1% increase in its pre-tax profit to £101.7 million. This gives the business a 141% capital ratio, while its combined ratio – its premiums compared to its claims – improved to 85.2% from 93.2% a year earlier.

Issue Date: 04 Mar 2014