Monument Re is present process a sale course of that would end in a non-public fairness group gaining majority management of the enterprise, reported Reuters, citing sources.
Shareholders together with US insurer Enstar Group and Monument Re Chairman Jonathan Yates, together with Caspar Berendsen, a former government at Cinven, are anticipated to divest their shares to a brand new investor, the sources mentioned.
The brand new majority investor can also be anticipated to supply further capital to the Bermuda-based firm, they added.
Hannover Re, one other shareholder, has indicated that it doesn’t intend to promote its shares right now.
Each Enstar and Yates didn’t reply to requests for remark.
Berendsen and Hannover Re additionally declined to touch upon the matter.
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Monument Re specialises in buying legacy life insurance coverage portfolios from firms comparable to AXA and Allianz and operates throughout numerous European nations.
Final yr in August, the information company reported that Monument Re’s homeowners engaged Citi and Fenchurch Advisory to think about strategic choices.
The sale course of started following a decline within the firm’s solvency ratio.
In 2022, Monument Re’s solvency ratio stood at 167%, which was above the regulatory minimal however considerably lower than 299% in 2021.
The potential sale additionally comes at a time when regulatory our bodies together with the Worldwide Financial Fund are growing their oversight of the life insurance coverage business, expressing considerations in regards to the rising affect of personal capital.
Notably, final yr the Italian Authorities needed to facilitate the rescue of Eurovita, a life insurance coverage firm that confronted difficulties underneath the possession of personal fairness investor Cinven.
In January 2024, Monument Re’s homeowners started distributing advertising and marketing supplies to potential consumers, formally initiating the sale course of.
Amongst these invited to bid have been various asset managers with established insurance coverage platforms, comparable to Brookfield, Carlyle, KKR and Sixth Road, the sources mentioned.
