Partnership Assurance is to float on the London Stock Exchange.
The enhanced annuity provider said it would proceed with an initial public offering (IPO) as the market for non-standard annuities continues to grow rapidly.
For the year ended 31 December 2012, the group generated operating profit of £112m, a 56% per annum increase since 2010.
Partnership expects to get about £105m from the IPO.
The company said it would not receive the proceeds from the sale of existing ordinary shares by the selling shareholders as part of the IPO.
The principal uses of the net proceeds of the IPO received by Partnership are for the repayment in full of:
◦ the £70m loan facility entered into with Lloyds TSB Bank plc (the "Lloyds Facility") on the next interest payment date following Admission;
◦ the £5m vendor loan note issued in 2008 in connection with the acquisition of Partnership by private equity outfit Cinven, together with accrued interest of £2.7m; and
◦ for general corporate purposes.
BofA Merrill Lynch and Morgan Stanley have been appointed as joint sponsors and joint global co-ordinators of the global offer, with Keefe, Bruyette & Woods and Panmure Gordon & Co acting as co-lead managers.
Evercore is financial adviser to the company.
Partnership chairman Chris Gibson-Smith said: "Partnership is meeting an important need in society to provide an increasing number of people who suffer from serious health and lifestyle conditions higher annuity rates.
"The IPO is a natural step for Partnership, and the profile generated in the public markets will support its continued growth as the population ages and the potential demand for secure retirement income grows substantially."
Partnership chief executive Steve Groves added: "We set up Partnership in 2005 to use its unrivalled proprietary underwriting capabilities to meet the demands of an exciting growth market.
"Since then, we've grown sales and profits by around 40-50% each year and the IPO represents an important next step for the business."
