Collingwood, a UK-based learner-driver car insurance firm, is reportedly looking to divest certain equity stake to private equity (PE) firms.
It is believed that the British motor insurance company has appointed accountants at Newcastle-based firm Tait Walker to find potential buyers, reported The Telegraph.
The company offers insurance to learner drivers who plan to temporarily take over cars from their parents, friends, or other relations without causing a risk to their policy.
The company also offers insurance cover for seven days to 24 weeks as well as annual.
Sources familiar with the development were quoted by the news agency as saying that a group of mid-market private equity firms had already shown interest for the business.
According to the information provided on the Collingwood, its learner driver policy offers a choice of cover from fully comprehensive, third party fire and theft or third party only as well as the substantial benefits.
Figures from the Association of British Insurers were cited by the publication as saying that more than 475,000 whiplash claims were made in 2013. The whiplash claims millions of pounds to costs UK motor insurance industry.
Image: Collingwood may divest equity stake to PE firms.Photo: courtesy of scottchan/ FreDdigitalPhotos.net.