According to news reports ACE Limited’s initial public offering of its credit unit, Assured Guaranty, is set to raise approximately $1 billion.
ACE is spinning off the Bermuda-based operation, which specializes in financial guarantees, including credit derivatives, which improve the credit of underlying debt obligations by financial institutions.
Plans call for an initial sale of 49 million shares at an estimated price of $18-$20 per share. The parent company will initially retain around a 35 percent stake in Assured Guaranty, but this could be reduced to 25 percent if the underwriters exercise their over-allotment options.
Was this article valuable?
Here are more articles you may enjoy.
Why US Home Insurance Rates Are Rising Fast – Climate Change Plays a Big Role 
Mutual Insurers Chase Rate Adequacy, Financial Strength Remains Strong: AM Best 
Florida’s Big Bend Braces for Third Hurricane in a Year as Helene Gains Strength 
Industry Critiques Trump’s Auto Insurance Rate Data, Promise to Cut Premiums 
