Monument Re is undergoing a sale process that could result in a private equity group gaining majority control of the business, reported Reuters, citing sources.
Shareholders including US insurer Enstar Group and Monument Re Chairman Jonathan Yates, along with Caspar Berendsen, a former executive at Cinven, are expected to divest their shares to a new investor, the sources said.
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The new majority investor is also expected to provide additional capital to the Bermuda-based company, they added.
Hannover Re, another shareholder, has indicated that it does not intend to sell its shares at this time.
Both Enstar and Yates did not respond to requests for comment.
Berendsen and Hannover Re also declined to comment on the matter.
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By GlobalDataMonument Re specialises in acquiring legacy life insurance portfolios from companies such as AXA and Allianz and operates across various European nations.
Last year in August, the news agency reported that Monument Re’s owners engaged Citi and Fenchurch Advisory to consider strategic options.
The sale process began following a decline in the company’s solvency ratio.
In 2022, Monument Re’s solvency ratio stood at 167%, which was above the regulatory minimum but significantly less than 299% in 2021.
The potential sale also comes at a time when regulatory bodies including the International Monetary Fund are increasing their oversight of the life insurance industry, expressing concerns about the rising influence of private capital.
Notably, last year the Italian Government had to facilitate the rescue of Eurovita, a life insurance company that faced difficulties under the ownership of private equity investor Cinven.
In January 2024, Monument Re’s owners began distributing marketing materials to potential buyers, officially initiating the sale process.
Among those invited to bid were alternative asset managers with established insurance platforms, such as Brookfield, Carlyle, KKR and Sixth Street, the sources said.
