Insurance M&A

Citi is understood to have approached reinsurers to take the temperature on a sale.

The rival’s interest last week prompted Lovell Minnick to lift its previously agreed bid by 9.5 percent to £285mn.

Business was quietly placed up for sale with Credit Suisse advising in H1.

About $190mn of reserves are associated with the transaction.

The legacy specialist had acquired AG Insurance’s UK branch business in 2017.

The company was seized by the state last year as its chairman was prosecuted for “economic crime”.

The European carrier has "no intention" of handing any investor new stock following a report that the Chinese group could buy $2bn or more of its equity.

The move follows an attempt to merge California Insurance Company with a New Mexico entity.

Closure of the deal follows at least four abortive attempts to sell the insurance holding.

SFMI will “actively explore business collaboration opportunities in specialty insurance and reinsurance”, Canopius said.

Citi started to contact potential acquirers at the end of last month.