Former Munich Re executive, Andy Rear and Will Allen, previously of investment bank KBW, are soon to launch a new special purpose acquisition company (SPAC) on the London Stock Exchange called FINSAC, according to a Sky News report.
The report from Sky News confirms market rumours that had been circulating, and claims that the experienced insurance pair will 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.
According to the article, the new entity has secured veteran fund manager David Morant, and Paul Jardine, Chairman of Lloyd’s managing agent Asta, as non-executive directors.
Additionally, industry sources have told Sky News that Dominic Christian, Global Chairman of broker Aon’s Reinsurance Solutions arm, is also involved in the new shell company.
Reportedly, the SPAC has selected London’s standard segment as its listing home because of the depth and history of innovation in the UK insurance sector, with Lloyd’s being the oldest insurance market in the world.
Sky News reported late last year that FINSAC’s founding members had secured cornerstone investments from fund managers such as Toscafund, with U.S. domiciled Empyrean Capital said to have signed up to invest in the IPO.
FINSAC declined to comment, but Sky News says that the new company is likely to explore a combination with a fast-growing insurtech.
