The Stock Exchange is set to gain a huge new listing after British insurance giant Royal & SunAlliance last night announced plans to sell its operations in New Zealand, Australia and some Asian countries.
The initial public offering of the Asia-Pacific business is expected to take place next year, with shares
made available to both the public and institutions.
NZ chief executive Alan Bradley could not say where the shares would have their primary listing, although the company would be a "very significant listing in a local sense".
Rumours have persisted that Royal & SunAlliance, which must raise £3.6 billion ($11.3 billion) to meet its capital needs, was considering a trade sale of its Asia-Pacific businesses, but Bradley said last night that a trade sale had never been on the cards.
"This is seen by the group as the best option to release capital and give value to shareholders which is not recognised in the UK share price."
He described the NZ business as "extremely profitable and successful".
Royal & Sun is the largest composite insurance group in NZ, and the second-largest general insurer, behind the merged IAG/NZI.
The floated company will continue to operate its existing brands, though the umbrella name will change. Bradley said a new name had yet to be discussed.
The group's Asia-Pacific combined revenue base is A$4 billion ($4.5 billion) and it has 7500 staff in the region.
