Esure: Should you buy into this new stock flotation?

General insurer Esure is expected to make the FTSE 250 when it's listed on the London Stock Exchange this year. So should you buy? Tim Bennett investigates.

The latest hot firm to list on the London Stock Exchange is British insurer Esure. It's being brought to market by founder Peter Wood, who has set up seven insurers including Direct Line, which successfully listed last October in three different countries during his career.

Esure is expected to enter the FTSE 250 with a valuation of between about £1bn and £1.3bn, making it the biggest London initial public offering (IPO) so far this year. That would value the firm at around four times what Wood and private-equity group Tosca Penta paid when they took it from Lloyds Banking Group four years ago a very nice profit indeed. But should you buy in as they unload?

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.