What's going on?

Reinsurer Swiss Re had planned to bring its UK life insurance business to the stock market on Thursday � but it had a last-minute change of heart. Such previously rare occurrences have become increasingly common�

What does this mean?

Swiss Re�s ReAssure subsidiary buys life insurance policies created by other insurers but which they no longer want. ReAssure was set to �go public� at a valuation of roughly $4 billion � but between US stock markets hitting all-time highs (perhaps suggesting there�s not much additional profit to be had from stock investments) and British investors feeling uncertain about the future, there wasn�t enough demand for ReAssure shares at the price being asked. Rather than accept a lower valuation, Swiss Re decided to call a rain check.


Almost 50 European initial public offerings were canceled or postponed last year, double the number in 2017. That was partly thanks to a dramatic stock market fall at the end of 2018 that wiped out the year�s gains � and investors� confidence. IPO worries, however, have continued throughout 2019.

Why should I care?

The bigger picture: Sometimes IPO, others IP-No.

When a privately held company�s up for sale, it often �dual-tracks� � coquettishly comparing bids from private suitors to the price it�d get from selling shares publicly. Some canceled offerings are therefore par for the course (isn�t that right, SAP?). But sometimes surly stock market investors force a company�s hand. Private equity firm CVC this week agreed to sell a stake in appliance warranty provider Domestic & General to a sovereign wealth fund, rather than face investor scrutiny by taking it public.

For markets: The meek shall inherit the profit.

Investors whose appetite for new stocks has waned probably avoided recent disappointing debutants like Aston Martin and Farfetch � and may have been vindicated again last week. Recently listed UK peer-to-peer lender Funding Circle said on Tuesday that weaker demand for its loans and tighter controls meant that its revenue growth this year would be half what investors expected.