Inc. in its initial public stock sale, according to a government filing.

Bermuda-based Exel, an insurer and a reinsurer, said it will purchase 3.5 million of the 12 million shares offered at $20 each for about $70 million, according to an amended registration statement filed by Risk Capital with the Securities and Exchange Commission.

The Risk Capital offering, postponed three times and reduced by 14 percent in August, is expected to be priced today and start trading Friday.

"I don't think it changes anything,'' said David Menlow of IPO Financial Networks. "The reinsurance business is incestuous, by definition. I think its a valiant effort, though it won't be rewarded with a premium at the opening of trading.'' Risk Capital was the one of two reinsurance IPOs to run into trouble last month. Normandy America Inc., another reinsurer, took the unusual step of withdrawing its $180 million IPO a day after its shares began trading as the price plunged.

Both Exel and Risk are reinsurers, which provide insurance to insurance companies as a way of spreading risk. Exel also provides property and casualty insurance.

Exel said it was buying the Risk Capital stake because it is an opportunity to expand its presence in the reinsurance industry.

Risk Capital plans to use the money raised in the stock offering to invest in shares of other companies. The company said it will invest primarily in shares of insurance companies to which it provided reinsurance. -- Bloomberg