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(Alliance News) - Beazley PLC on Tuesday said it is planning an equity raise of roughly GBP385 million to expand its cyber and speciality insurance businesses.
The London-based insurer said it will issue 61.0 million new shares of five pence each, which will represent around 10% of its existing issued share capital.
Shares closed down 1.5% at 622.50 pence each on Tuesday afternoon in London.
The issue price will be determined at the close of the bookbuilding process.
The company plans to use the proceeds to support organic growth and provide growth capital to fund attractive underwriting opportunities, as well as expand its cyber and speciality businesses.
"This is an attractive proposition as cyber rates remain high, and demand continues to outweigh supply with significant barriers to entry for new carriers. Currently, the company writes more cyber exposure than it is able to retain in order to maintain a healthy balance of class exposure. The company expects the opportunity to write more new business in cyber to continue into 2023 and beyond and growth in property classes will enable the company to accelerate growth holistically," the company said.
The fundraise will consist of a non-pre-emptive placing and a subscription for new ordinary shares.
Beazley, separately, reported a retail offer through PrimaryBid. The issue price for the retail offer will be equal to the placing price. There is a minimum subscription of GBP500 per investor, it said.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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