Former Munich Re executive Andy Rear and Will Allen, previously of investment bank KBW, have confirmed their intention to float a new special purpose acquisition company (SPAC) on the London Stock Exchange.
The company, called Financials Acquisition Corp, is sponsored by FINSAC LLP, which is a limited liability partnership founded by Allen and Rear.
Reports last week suggested the market veterans would launch a £150 million initial public offering (IPO) for the vehicle, which will then target a merger with a leading name in the insurance industry.
And now, in the pair have confirmed their intention to list on the London Stock Exchange, as well as the £150 million IPO.
Rear and Allen also explained that the company would go on to target a business combination “with a technology-enabled company or business which is likely to operate in (or adjacent to) the insurance or broader financial services industry.”
“We are delighted to launch the first UK SPAC that will be focused on the rapidly growing Insurtech industry. Technology has transformed every facet of daily life and ambitious tech-enabled insurers are driving this growth as they disrupt traditional markets,” said Allen, who will act as Chief Executive Officer of Financials Acquisition Corp.
“Much of this transformation currently stems from private investments and we believe now is the right time to bring these next generation companies to the public market in London – the natural home of insurance.”
Rear, who will serve as Executive Chairman, also commented: “Through the industry expertise and skill set of the management, board and sponsor team, the Company believes it can identify and help bring to the public market high quality Insurtech companies with the ambition to grow and significantly enhance the long-term value of their businesses as a listed company.”
“Our combined global network and track record in insurance give us confidence that we will attract ideal targets in the space and we look forward to bringing a partnership to market soon.”
As part of the IPO, Financials Acquisition Corp will place 15,000,000 Class A ordinary shares at a placing price of £10.00 per share.
The Sponsor Entity, FINSAC, is supported by investors including Toscafund Asset Management, Empyrean Capital Overseas Master Fund Ltd. and Ventura Capital GP, in addition to industry experts including Dominic Christian and Aditya Dutt.
