Blackstone is in exclusive talks about taking control of British specialist insurer Ascot.
The US private equity giant has been looking to invest via one of its Tactical Opportunities fund. A deal would probably value Ascot at over £2billion.
Founded in 2001, it provides property and casualty insurance products through its Lloyd’s of London and Bermuda market platforms. In the US its brands are Ascot US and Ethos.
Takeover target: US private equity giant Blackstone has been looking to take control of British specialist insurer Ascot. via one of its Tactical Opportunities fund
Owner CPPIB, Canada’s largest pension fund, paid £1.1billion for it in 2016.
But a deal could fall through as Blackstone has concerns about Ascot’s growth prospects, which could be hurt by market volatility from interest rates and hurricanes later this year.
Private equity firm Cinven and activist Elliott Advisors made offers in the summer but dropped out soon after, sources said.
Insurers have been hit hard this year. Lloyd’s of London last week said it has suffered £1.1billion losses related to claims from the war in Ukraine, while Direct Line shares fell in July amid rising costs of car insurance claims.
Blackstone and CPPIB declined to comment.
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