LONDON - The Partnership Assurance Group, a British life insurance company, announced plans on Monday for an initial public offering that could value the company at $1.5 billion.
Partnership Assurance, which is majority owned by the European private equity firm Cinven, is expected to list its stock in London by the end of June, according to a person briefed on the matter who spoke on the condition of anonymity because he was not authorized to speak publicly.
The offering could raise about £250 million ($380 million) for a 25 percent stake in the life insurer, the person added.
The prospective I.P.O. comes as European companies scramble to take advantage of a strong rebound in the Continent’s financial markets this year.
Last month, the German media conglomerate Bertelsmann raised 1.4 billion euros ($1.8 billion) by selling shares in the European broadcaster RTL, while the German chemical company Evonik also entered the public markets in April through an offering that valued the company at 15 billion euros.
Royal Bank of Scotland and the Lloyds Banking Group in Britain have also announced plans to list parts of their branch networks through public offerings.
In total, companies listing in Europe have raised $6.8 billion through new offerings as of May 2, a 70 percent increase compared with figures in the period a year earlier, according to Thomson Reuters.
In the latest I.P.O., Partnership Assurance, which provides pension annuities and insurance products for customers with medical ailments, said it would use the proceeds to reduce its debt.
The private equity firm Cinven acquired an 80 percent stake in the company for 200 million euros in 2008 and will sell some of its holding in the company as part of the announced share sale. Partnership Assurance said it would also issue about £120 million of new shares as part of the offering.
Despite the recovery in Europe’s financial markets, investors are still wary that fresh problems could be just around the corner.
Continued sluggishness in the European economy, high unemployment in countries like Spain and Greece, and structural challenges to how banks operate across the Continent remain big concerns.
Almost 60 percent of a group of investors polled by Fitch Ratings, for example, thought that the resurgent European financial markets did not reflect the underlying problems still facing many local economies.
“There is a stark dichotomy between the continuing recession with rising unemployment across Europe and the rally in financial markets,†Fitch said in a statement on Monday. “If the latter is not validated by economic stabilization and progress towards banking union, the danger is that market volatility will return with a vengeance over the summer.â€
Bank of America Merrill Lynch and Morgan Stanley are coordinating Partnership Assurance’s offering, and Evercore is advising the company.
