By Kenneth Araullo
Pollen Street Capital, the private equity owner of specialist lender Shawbrook, is reportedly preparing for an initial public offering (IPO) of its UK insurance business, Markerstudy.
Discussions are said to be ongoing with investment bankers regarding a potential listing that could value Markerstudy at more than £4 billion.
Markerstudy, founded in 2001, serves around six million customers and employs over 6,589 staff. In 2024, the insurer reported revenue of £694 million but recorded a loss of £141.7 million. The company expanded its distribution division last year through the acquisition of Atlanta Insurance, which broadened its offerings in motor, home, small business, and pet insurance in partnership with several British brands.
Shawbrook, another Pollen Street Capital portfolio company, recently launched its own float on the London Stock Exchange. The lender targeted a valuation just under £2 billion, with shares priced at 370p.
The IPO sought to raise £50 million, in addition to the sale of £348 million in existing shares by Marlin Bidco Ltd, a joint venture between Pollen Street Capital and BC Partners LLP. Marlin acquired Shawbrook in 2017 for £825 million.
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The Shawbrook IPO was made available to qualified institutional buyers internationally and to UK retail investors through a network with Retailbook. Earlier this month, Shawbrook reported that its loan book had reached £18.3 billion at the end of September, up from £17 billion at the close of the previous quarter. This increase was attributed to approximately £1.5 billion in organic originations and the acquisition of the Thincats group.
Shawbrook has said its medium-term objective is to grow its loan book in the low double digits annually, with a goal to nearly double its total loan book to £30 billion by 2030.
The potential Markerstudy IPO comes at a time when the UK insurance sector is experiencing a shift in dealmaking. More than two-thirds of insurance M&A transactions in 2025 have involved targets valued below £5 million, highlighting a trend toward smaller-scale consolidation.
This is partly due to prominent buyers such as Ardonagh and Brown & Brown reducing their acquisition activity, while newer consolidators and private equity-backed firms pursue opportunities among smaller and mid-sized companies.
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The IPO environment for insurance companies is also being shaped by broader market expectations. In the directors’ and officers’ (D&O) insurance sector, there is anticipation that, should market conditions stabilise, 2025 could see a notable increase in IPO activity, especially among private equity portfolio companies that have reached the end of their holding periods.
Against this backdrop, UK authorities are considering regulatory changes to shorten IPO timelines in an effort to boost listings and enhance the appeal of the London Stock Exchange for prospective issuers. These proposed measures are part of a broader initiative to ensure London remains competitive as a global financial centre.