Cinven, the private equity house, could be mulling over the sale of one of its insurance divisions, Partnership Assurance, after receiving several offers for the firm.
Partnership provides a range of insurance products, including life cover, long-term care plans and pensions and was purchased three years ago by Cinven for £174.79 million. Cinven has now reportedly received some offers for the firm and a deal could go ahead in 2013, according to reports.
The private equity firm is thought to be looking at a number of banks, including Lexicon Partners, Deutsche Bank and Morgan Stanley for appointment as adviser on the possible sale of the insurer, which reported a £35.39 million pre-tax profit lat year. This was up 27 per cent from the year before. The firm attributes its recent success to its increased retirement sales and equity release business.
As the population continues to age, more people are looking into ways to pay for their care in later life, and Partnership therefore claims the equity release market will expand.
Cinven has bought several other insurers in recent times, including Netherlands-based Aegon’s UK arm, Guardian Life, for £275 million.
