A matter of improving Insurance company balance sheets
Thanks for the SA reference, but I think you may have your facts backward. The insurance companies were sellers of VRSK stock; they did not retain any significant amounts, I believe. I don't know whether they much liked the idea of selling--I think it was more of a forced sale. One of the reasons I own the stock is that only Warren Buffett kept his shares.
Forced sale? LOL! Unload sale maybe. You seemed to have missed not all shares were sold yet. There are plenty of restricted shares and class B shares and stock options not to mention the number of shares were increased with a split just prior to the IPO. "In conjunction with the IPO, the Company plans to effect an approximately fifty-to-one stock split of both classes of common stock"
“We have happy selling shareholders and it’s good to see our new shareholders getting some good news right out of the shoot,” Verisk Chief Executive Officer Frank Coyne said today in an interview."
IMO this thing was "engineered" to improve the look of the balance sheets of the insurance companies - same as stated by the CEO himself. I wonder why that might be! Better than another bailout - or is it just prolonging the potential of another bailout?
“We were gratified that we were able to communicate what our company does,’’ Coyne said. “I think it’s a quality story.’’
Unlike many companies that go public, Verisk will not receive the proceeds of the public offering. The IPO was engineered to allow some of its largest co-owners, a collection of casualty and property insurers, to cash in their shares.
Coyne said taking the company public enabled shareholders to show a value on their balance sheets for their investment in Verisk.
“While we were a public company,’’ he said, “they were not able to show a value.’’
Susan Todd may be reached at firstname.lastname@example.org or (973)-392-4125"