UPDATE 1-Insurer Brit Group plans London share sale

Tue Mar 4, 2014 11:20am EST

By Freya Berry

LONDON, March 4 (Reuters) - Netherlands-based insurer Brit Group is planning to float on the London Stock Exchange in April, the company said on Tuesday, in a sale that could value it at up to 1.3 billion pounds.

Brit Group could be valued at between 1.1 billion pounds and 1.3 billion pounds ($1.8-2.2 billion), a source familiar with the matter said.

Brit Group, which underwrites policies for Lloyd's of London insurers, said private equity funds Apollo and CVC would remain the firm's largest shareholders following the sale.

Apollo and CVC, which acquired Brit Group in 2010, are subject to a 180-day lock-up following the offer. Management and employees are also subject to a 365-day sale restriction.

The flotation is being run by JP Morgan and UBS .

The group said that it expected to pay a 75 million pound ($125.38 million) annual dividend following the float, with an interim dividend of at least 25 million pounds in the third quarter of 2014.

Brit Group is targeting a minimum free float of 25 percent. The firm saw returns of 24.5 percent on net tangible assets last year, and is looking to expand in the United States, Asia and Bermuda.

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