Reso-Garantia, one of Russia's largest insurance companies, is set to become the country's first insurer to float as analysts say the move marks the continuing development of the emerging market nation.

The Moscow-based firm, led by Deutsche Bank, Dresdner Kleinwort and Morgan Stanley, will sell up to 20% of its equity in an initial public offering to Russian and international investors. The float could raise well over $300m (€224.5m) but a price range will be announced next month, according to sources working on the deal.