Legal & General, LV and Anacap linked with Co-op insurance bids

INSURERS Legal & General and mutual LV and private equity firm Anacap are among the bidders for the Co-operative Group’s general insurance arm, according to reports.

Sky News said L&G had hired investment banking giant Goldman Sachs to aid its bid, and suggest it will offer of as little as £60m for part of the Co-op unit.

The broadcaster said L&G had joined forces with Catalina Holdings, a specialist investor, with a view to splitting the Co-op insurance business between its back book and ongoing policies.

A preferred bidder is unlikely to be identified for several more weeks, although L&G and Catalina are expected to be well-positioned to agree a deal.

The Co-op is trying to raise hundreds of millions of pounds as part of its contribution to filling a £1.5bn black hole in the balance sheet of its banking arm.

LV – the mutual previously known as Liverpool Victoria – and Anacap, a private equity firm, are also examining bids for the Co-op’s insurance arm, which has a high-quality household book, but less valuable motor insurance assets.

Deutsche Bank is handling the sale on behalf of the Co-op, whose life insurance operation has already been sold to Royal London for nearly £220m.