Apollo International Administration (Apollo) is contemplating a £5bn ($6.32bn) takeover of UK-based specialist insurer PIC, reported Sky Information.
The US non-public fairness firm is planning to submit a proposal for PIC quickly.
As per the report, different firms too are vying for PIC, which supplies insurance coverage and manages company pension plans.
Apollo and PIC refused to touch upon the information, Sky Information mentioned.
Earlier this month, Bloomberg, citing sources, reported that PIC has employed advisers to discover choices for its enterprise.
The insurer may promote a minority stake or merge with a rival firm, the sources mentioned on the time.
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Reinet Investments, an entity backed by billionaire Richemont chairman Johann Rupert, holds 49.5% of PIC.
The remaining 46% stake is owned by HPS Funding Companions, CVC Capital Companions and a division of the Abu Dhabi Funding Authority.
With UK bond yields at an all-time excessive, PIC and its rivals have profited.
The next volatility out there prompted extra company pension managers to ponder promoting their programmes to entities equivalent to PIC.
Moreover, increased bond yields make it simpler for insurers to cowl pension programme tasks sooner or later.
This 12 months, PIC has struck offers this firms equivalent to Chemring Qantas and UK-based common insurer RSA.
Apollo’s potential bid for PIC comes after Andrew Stack joined the corporate in September as a managing director specialising in investments for insurance coverage firms, reported BNN Bloomberg.
Stack was previously in command of BlackRock‘s monetary establishments group’s life and annuity follow.
Apollo is targetting $1trn in belongings underneath administration by 2026, and two of its foremost growth areas are wealth administration and insurance coverage.
In October this 12 months, studies emerged that Canadian funding firm Brookfield, by means of Brookfield Reinsurance, is contemplating coming into the UK pension insurance coverage trade.
