US private equity giant Blackstone in talks to buy UK insurer Ascot
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US private equity giant Blackstone in talks to British specialist insurer Ascot . to buy
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Blackstone is in exclusive talks about the acquisition of British specialist insurer Ascot.
The American private equity giant wanted to invest through one of its Tactical Opportunities funds. A deal would likely value Ascot at more than £2 billion.
Founded in 2001, it offers property and casualty insurance through the Lloyd’s of London and Bermuda market platforms. In the US, the brands are Ascot US and Ethos.
Acquisition target: US private equity giant Blackstone wants to take control of British specialist insurer Ascot. through one of its Tactical Opportunities funds
Owner CPPIB, Canada’s largest pension fund, paid £1.1 billion for it in 2016.
But a deal could fail as Blackstone worries about Ascot’s growth prospects, which could be hurt by market volatility from interest rates and hurricanes later this year.
Private equity firm Cinven and activist Elliott Advisors made offers over the summer but dropped out shortly after, sources said.
Insurers have been hit hard this year. Lloyd’s of London said last week it suffered £1.1 billion in losses related to claims from the war in Ukraine, while Direct Line shares fell in July amid rising costs of car insurance claims.
Blackstone and CPPIB declined to comment.