Delphi out of the race for IL&P
Published 07/10/2011 | 05:00
Delphi Financial Group dropped out of the race to acquire Irish Life & Permanent Plc's life assurance unit as bidders prepare second-round offers within the next two weeks.
The Wilmington, Delaware-based insurer, which specialises in employee benefits for companies, was among five parties shortlisted by the Irish Life and its advisers Deutsche Bank for the business, three people with knowledge of the situation said on August 19.
The others were a joint bid by US-leveraged buyout firms JC Flowers and Apollo Global Management.
There were also offers from CVC Capital Partners Ltd, the London-based private equity firm, US insurer Unum Group and Great-West Lifeco Inc's Canada Life Ireland, they said.
The Government is forcing the break-up of Irish Life to recoup some of the cost of bailing out the Dublin-based lender's unprofitable banking unit.
The life unit had an embedded value -- an estimate of a life insurer's worth based on future profits of existing policyholders -- of €1.59bn at the end of June, according to the company. (© Bloomberg)