Kohlberg Kravis Roberts, the US private equity firm, is planning to launch an offer for the UK life insurance businesses soon to be spun out of Australian insurer AMP.
KKR is reported to have held talks with fellow private equity firms Apax Partners and Warburg Pincus about a joint offer for the business, which could be valued at up to £1bn.
AMP, Australia's biggest life insurer, owns Pearl Assurance, NPI, London Life, Henderson Global Investors and Towry Law in the UK. At the beginning of the month, AMP said it planned to spin off those businesses as a separate company, to be known as Henderson, and focus on money-management operations in Australia and New Zealand. The new group would have two million policy holders in the UK.
According to the Daily Telegraph, the three private equity firms have set up a vehicle, Resolution Partners. The newspaper adds that Resolution Partners would have a ten per cent interest in the with-profits funds, which it would also administer.
Speaking yesterday, AMP chief executive Andrew Mohl confirmed that “AMP has a number of businesses which it is currently selling”. “We're in discussions with a number of parties, principally in the UK.” UBS Warburg is advising AMP on the sale.
KKR was unavailable for comment.