Insurer Talanx Shares Advance on First Day of Trading

Talanx AG (TLX), Germany’s third-biggest insurer, rose 2.2 percent on its first day of trading after an initial public offering that saw the company narrow the share price range when investors balked at the initial level.

The shares advanced to 18.70 euros as of 10:43 a.m. in Frankfurt from the initial public offering price of 18.30 euros. The Bloomberg Europe 500 Insurance Index fell 0.1 percent, while Germany’s HDAX Index, which measures the total rate of return of the 110 most highly capitalized stocks on the Frankfurt exchange, was little changed.

Talanx, which is majority-owned by German mutual insurer HDI Haftpflichtverband der Deutschen Industrie VaG, said it will raise at least 467 million euros ($602 million) from the share sale and will use the proceeds to finance growth and repay loans. HDI, which is owned by its insurance customers, will keep a majority stake should Talanx sell stock to the public.

The shares were priced at 18.30 euros apiece, the company said in a regulatory statement yesterday, compared with the original range of 17.30 euros to 20.30 euros. Earlier, the range was adjusted to 17.80 euros to 18.80 euros each, according to a term sheet obtained by Bloomberg.

Hanover-based Talanx revived the share sale on Sept. 20, a week after calling it off for the second time in three months as investors showed little enthusiasm for the price. The day after Talanx canceled the IPO, the U.S. Federal Reserve announced a third round of quantitative easing, sending benchmark stock indexes to the highest levels since 2007.

Talanx, which has been considering the share sale for more than a decade, owns a 50.2 percent stake in Hannover Re (HNR1), the world’s fourth-biggest reinsurer.

To contact the reporters on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net; Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Andrew Rummer at arummer@bloomberg.net

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