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London-listed SPAC moves closer to launch of Lloyd’s insurance vehicle
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LONDON (Reuters) – A London-listed special purpose acquisition company has moved closer to launching a vehicle designed to give investors access to the Lloyd’s of London insurance market, according to a statement on Friday.
LONDON (Reuters) – A London-listed special purpose acquisition company has moved closer to launching a vehicle designed to give investors access to the Lloyd’s of London insurance market, according to a statement on Friday.
Financial Acquisitions Corp said it had established London Innovation Underwriters Limited (LIU), as part of a plan to deploy funds in the historic insurance market and build a reinsurance book with up to 1 billion pounds ($1.25 billion) of capacity.
The SPAC intends to combine with LIU and raise a “significant sum” of equity capital on the London Stock Exchange, the statement said, adding a further statement would be made once the combination was entered into.
($1 = 0.8010 pounds)
(Reporting by Iain Withers; Editing by Sharon Singleton)
A Special Purpose Acquisition Company (SPAC) is a type of investment vehicle that raises capital through an initial public offering (IPO) to acquire an existing company, allowing investors to participate in the acquisition process.
Lloyd's of London is a renowned insurance market where members join together to pool and spread risk. It operates as a marketplace for insurance and reinsurance, known for its unique structure and historical significance.
Reinsurance is insurance purchased by insurance companies to mitigate risk. It allows insurers to protect themselves from significant losses by sharing risk with other insurers, thus stabilizing their financial standing.
Equity capital refers to funds raised by a company in exchange for ownership shares. It represents the ownership interest in a company and is a key source of financing for businesses.
The London Stock Exchange (LSE) is one of the largest and oldest stock exchanges in the world, facilitating the buying and selling of shares and securities, and providing a platform for companies to raise capital.
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