London-based financial group HHG has confirmed receipt of an approach from investment firm Resolution Life Group which it said could lead to a takeover approach for its life insurance businesses, or even for the entire group.
HHG had been expected to sell its closed life businesses to Sun Capital, the private equity group run by entrepreneur Hugh Osmond. Mr Osmond, a venture capitalist, reached an agreement in December to pay around GBP1.025 billion for the four UK life assurance brands; Pearl, NPI, National Provident Life and London Life.
The market is now waiting for official comment from Resolution Life, a company that was established last year with the express purpose of acquiring closed life insurance businesses. The company bought Royal & Sun Alliance’s UK life insurance unit last July, for GBP850 million.
HHG shares have climbed over 10% upon increasing speculation surrounding a possible bid from Resolution Life.