UPDATE: Insurer Groupama Hasn't Taken Decision On IPO

French mutual insurer Groupama SA hasn't yet taken a decision on a potential stock market listing to raise funds for large-scale acquisitions, a person close to the matter told Dow Jones Newswires on Thursday.

The unlisted insurance group is still considering when a potential initial public offering of shares could take place, the person said, adding that no bank has been mandated for an IPO.

Changes in the nature of financial markets during the crisis have led Groupama to reconsider the possible sequence of events should it decide to make a large acquisition.

The group had previously envisaged carrying out an acquisition, which it would then refinance through an IPO. But it could now consider a stock market listing to generate capital in advance for any future deals, the person said.

Any IPO would be conducted to raise funds to finance acquisitions and wouldn't used for general financing purposes, the person added.

Groupama is one of France's largest insurers by revenue alongside global giant AXA SA (AXA) and CNP Assurances (CNP.FR). It has operations in over a dozen countries, mainly in Europe and Asia.

For 2008, Groupama posted revenue of EUR13.44 billion. It is due to report 2009 earnings Feb. 17.

The company has long considered an IPO as a potential means of financing a large-scale acquisition as it pursues its goal of becoming one of the top ten insurers in Europe by 2012.

But an IPO is not necessarily more likely in 2010 than in 2011, the source said.

French financial news Web site Wan Square earlier Thursday reported that Groupama could be listed on the stock market during 2010, citing unspecified sources.

- By Jethro Mullen, Dow Jones Newswires; +331 40171740; jethro.mullen@dowjones.com;

Axa (NYSE:AXA)
Historical Stock Chart
From May 2024 to Jun 2024