Bain Capital has entered into exclusive discussions with the board of Liverpool Victoria Financial Services (LV=) regarding “a potential transaction”.
In a statement, LV= reiterated that its board is focused on “maximising long-term value for its members and ensuring the business continues to be operated in their best interests, following the disposal of the general insurance business”.
“Discussions between LV= and Bain Capital are ongoing and there can be no certainty that any transaction will be agreed, nor any certainty as to the terms on which any such transaction might proceed.
“Any transaction would also be subject to regulatory approval.”
It added that the two firms “will make further announcement if and when appropriate”.
The prospective acquirer was founded in Massachusetts in 1984 and describes itself as “one of the world’s leading multi-asset alternative investment firms”.
According to its website, Bain Capital has approximately $105bn (£81.4bn, €89.4bn) in assets under management.
It offers private equity, public equity, fixed income and credit, venture capital and real estate investments across multiple sectors, industries and geographies.
The talks follow rumours at the start of the week that UK mutual insurer Royal London was in late-stage discussions to take over Manchester-based LV=.
That deal was rumoured to be in excess of £500m, but substantially less than £1bn ($1.3bn, €1.09bn), according to Sky News.
Noting the press coverage, LV= confirmed it was in discussions with “a number of parties”.