Independent Insurance today released a statement to the London Stock Exchange declaring that it has been in talks with several potential buyers.
The company said it decided to issue the statement in response to press speculation including reports that Independent is planning a £75m rights issue.
The statement said that Independent's directors have been reviewing various options including “the possibility of raising capital and seeking an offer for the company”.
The statement adds: “In respect of the latter [an offer for the company], very preliminary discussions have been held with a number of parties.”
Independent does not reveal the identity of the parties to the talks. But analysts have linked Independent to several insurers including Chubb, Allianz, Axa and Royal and Sunalliance.
Independent said one of the aims of the review has been to agree necessary action to address the performance of the company's overseas operations and its reinsurance arrangements.
“As a result, the directors are actively pursuing a capital raising to address the above issues and potentially to provide alternative funding to replace certain of the reinsurance arrangements,” the company said.
However, the statement said no final decision have been made on the terms of any capital raising scheme.
