Partnership shares hit as insurer mulls possible debt transaction

 
Caitlin Morrison
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SHARES in insurance firm Partnership Assurance Group went down by 2.21 per cent yesterday, after the firm announced it was exploring the possibility of arranging a debt transaction.

The group has hired Bank of America Merrill Lynch and Royal Bank of Scotland to arrange a series of fixed income investor meetings, beginning today, to assess a sterling-denominated subordinated debt transaction.

According to Partnership, “it is in shareholders’ interests to explore opportunities to provide the financial flexibility to invest in new initiatives and to diversify the group’s sources of funding”.

Steve Groves, Partnership chief executive, said: “Partnership currently has no debt and it is therefore logical to explore the opportunities to diversify, optimise and strengthen our robust capital position with a prudent amount of leverage.

“We will update the market in due course.”

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