A falling Australian share market and some overly optimistic profit predictions have been blamed for the failure of insurer Greenstone's failed stock market listing.
The pet, life and income insurance group on Wednesday announced that it had suspended plans for a $900 million stock market listing - one of 2015's biggest.
Fund managers cooled on the $2.00 to $2.50 a share asking price, which at 15.5 to 19 times forecast profit was well above the ASX financial sector average.
"An acceptable valuation for both Greenstone's owners and potential investors was not able to be achieved," the company said in a statement.
"As a result, Greenstone will continue under its current ownership structure."
Greenstone's owners South Africa's Hollard insurance group and co-founder Gavin Donnelly would not entertain any bids below the bottom of the IPO price range.
Greenstone distributes insurance products through Prime Pet Insurance, Guardian Insurance, Real Insurance, Woolworths and the RSPCA and owns the Choosi comparison website.
A structural downturn in the life insurance industry, serious competition and a substantial ramp-up in policy lapses meant fund managers doubted Greenstone's view of its value, said IG market strategist Evan Lucas.
Along with people dumping their life insurance, there were plenty also cutting theirs by half to save costs, he said.
"I think the fundies saw a risk and thought: `hang on, we're not sure that you've been conservative enough about your revenue line or where your costs could possibly be," Mr Lucas said.
"You're trying to tell us your revenue is X, you expect to expand but we're just not seeing that from your peers - Suncorp, IAG, QBE - in which life insurance has been their worst business component."
The company had forecast 34 per cent profit growth this financial year and 50 per cent next.
The share market's fall to a near 10 per cent technical correction - in which it will have given up all of this year's gains - is also not conducive to an IPO.
