By Chris Vellacott
LONDON Oct 17 British insurer Just Retirement,
a provider of pensions to unhealthy retirees including heavy
smokers, is seeking a London listing as its private equity
owners look to reduce their holdings.
Speaking to Reuters on Thursday after the company announced
plans for an initial public offering, Chief Executive Rodney
Cook said "at least 40 percent" of the company will be offered
The sale will comprise an offer of new shares to raise
around 300 million pounds ($480 million) for the company, while
private equity owner Permira and members of its management team
will also be selling some of their stakes.
Cook said Permira will still remain "a very major
shareholder" after the IPO.
The company did not say what valuation it was seeking, or
specify what share of market capitalisation would be accounted
for by the new shares.
However, Cook said Just Retirement aimed to become a member
of Britain's mid-cap FTSE 250 index, and that an estimated
market capitalisation of approximately 1.5 billion pounds
"wouldn't be completely wrong".
Just Retirement's core business is to offer annuities to
retirees with serious health conditions such as heart disease or
heavy smokers. Because they are unlikely to live as long as
their healthier counterparts, these so-called lifestyle and
medically enhanced annuities pay out a higher income than more
The company is also a provider of 'lifetime mortgage'
products, used by pensioners to supplement retirement income by
unlocking some of the value of their homes.
Just Retirement's IPO follows a flotation by its
private-equity-backed rival Partnership Assurance in
A banking source close to the deal said the company will be
seeking most of its new investors for the IPO in London, though
management will be visiting institutions elsewhere in Europe and
the United States.