Renewed speculation that NIG will be hived-off by private equity; esure and Hastings in IPO spotlight
The private equity bidding war for Direct Line Group has renewed speculation that NIG could be spun off.
At present, two rival consortium containing some of the biggest names in private equity are set to go head-to-head to buy Direct Line.
As first revelead by Insurance Times, a consortium of Kohlberg Kravis Roberts, Apax and BC Partners is one of the bidders.
And it emerged this week that American giants Blackstone and Bain Capital will also attempt to persuade RBS bank bosses to sell the firm directly, rather than pursue a potentially risky public flotation in markets which are currently shot to pieces by the eurozone crisis and ecoonomic downturn.
Analysts said today that if private equity buys Direct Line Group, they are likely to sell-off NIG early. The commercial lines insurer would be easy to hive-off from the personal lines group.
A Direct Line Group spokesman told Insurance Times: “Our commitment to NIG is reflected in our decision to include it within our single, consolidated legal underwriting entity UKI, and our £20m investment in its e-trading capability. We want it to play its part in our aim to deliver a sustainable, profitable business.”
An RBS spokesman stressed the group’s current intention is to pursue a public flotation.
Meanwhile, both esure and Hastings are also in the spotlight this week over their planned flotations.
No comments yet