Everest Re seeks $1.5bn of new capital

Everest Re is looking to raise almost $1.5 billion of new equity capital to fuel expansion as it says it wants to take advantage of growth opportunities during the hard market.

Everest Re unveiled plans for a new equity raise yesterday (May 16). It will target issuance of 3,000,000 new common shares, alongside an underwriters option to purchase up to an aggregate of 450,000 additional shares. The shares would be offered at 360.00 per share.

Demand seems to have been strong, however. It quickly revised its plans to instead offer 3,600,000 common shares, as well as an underwriters option to purchase up to 540,000 more. This would equate to a total capital raise of some $1.5 billion.

Everest Re said that the capital raised will be used for general corporate purposes, which might include expanding its existing business lines and operations. Critically, however, the raising will be complete in time for the mid-year June/July renewal.