US-based Bayview Asset Management (Bayview) is considering options for its insurance business, Oceanview Holdings, including sale, reported Reuters.
In a statement to the publication, Bayview representative said: “Recently, several parties have made unsolicited indications of interest to purchase Oceanview at a significant premium to book value.
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“Bayview has engaged an adviser to evaluate what potential transactions, if any, should be considered.”
The representative did not provide the details about the adviser and refused to comment on the potential value of the deal.
According to the sources, Oceanview’s book value is approximately $1bn.
Oceanview’s potential divesture comes at a time when private equity players and other asset managers have shown interest in the fee income generated from managing life insurance assets.
As high interest rates make it easier for insurers to generate sufficient profits without divesting, opportunities to acquire such assets are scarce these days, the report said.
Therefore, buyers are more and more willing to acquire insurance companies directly.
Located in Coral Gables, Florida, Oceanview was founded by the asset manager in 2018.
Initially, the insurance company was funded with $1bn in equity capital.
Currently, Oceanview includes a reinsurance company and a US annuities provider with nearly $8bn in assets.
In the past few months, the US insurance industry has been active in terms of dealmaking.
Brookfield Reinsurance signed a $4.3bn deal this July to acquire American Equity Investment Life Holding Company.
In October, Prosperity Life Group subsidiary S.USA Life Insurance Company agreed to acquire National Western Life Group in a deal valued at nearly $1.9bn.
