Apollo Global Management (Apollo) is considering a £5bn ($6.32bn) takeover of UK-based specialist insurer PIC, reported Sky News.
The US private equity company is planning to submit a proposal for PIC soon.
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As per the report, other companies too are vying for PIC, which provides insurance and manages corporate pension plans.
Apollo and PIC refused to comment on the news, Sky News said.
Earlier this month, Bloomberg, citing sources, reported that PIC has hired advisers to explore options for its business.
The insurer could sell a minority stake or merge with a rival company, the sources said at the time.
Reinet Investments, an entity backed by billionaire Richemont chairman Johann Rupert, holds 49.5% of PIC.
The remaining 46% stake is owned by HPS Investment Partners, CVC Capital Partners and a division of the Abu Dhabi Investment Authority.
With UK bond yields at an all-time high, PIC and its competitors have profited.
The subsequent volatility in the market prompted more corporate pension managers to contemplate selling their programmes to entities such as PIC.
Additionally, higher bond yields make it easier for insurers to cover pension programme responsibilities in the future.
This year, PIC has struck deals this companies such as Chemring Qantas and UK-based general insurer RSA.
Apollo’s potential bid for PIC comes after Andrew Stack joined the company in September as a managing director specialising in investments for insurance companies, reported BNN Bloomberg.
Stack was formerly in charge of BlackRock’s financial institutions group’s life and annuity practice.
Apollo is targetting $1trn in assets under management by 2026, and two of its main development areas are wealth management and insurance.
In October this year, reports emerged that Canadian investment company Brookfield, through Brookfield Reinsurance, is considering entering the UK pension insurance industry.
