Brazil's Caixa Delays Insurance Unit IPO on Market Conditions

Caixa Economica Federal, Brazil’s second-biggest state-owned bank, postponed an initial public offering for its insurance unit.

“Current market conditions” were cited by the Brasilia-based company Thursday in an e-mailed statement.

Caixa Seguridade Participacoes SA filed plans for an IPO in August as Brazil was trying to raise cash to bolster the nation’s coffers. Standard & Poor’s cut Brazil’s rating to junk last month, blaming a political crisis and the economic downturn.

President Dilma Rousseff is facing congressional opposition to higher taxes she says are needed to avoid further downgrades. The real has tumbled 34 percent this year against the dollar, the worst performance among the world’s biggest currencies. Brazil’s benchmark Ibovespa index declined 33 percent in dollar terms, the third-worst performance this year.

IRB-Brasil Resseguros SA, the reinsurer partly owned by the government, also filed for an IPO in August.

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