British life insurer Resolution Ltd. was reportedly in talks to divest its Luxembourg-based Lombard division. Lombard markets tax-efficient products to high-net worth individuals.
According to the Insurance Business Review (IBR), Resolution is negotiating the sale of Lombard International Assurance and Insurance Development Holdings.
However, the London-listed insurance company clarified that the discussions are still in a preliminary stage and may not materialize, IBR said.
Life assurance company Friends Life acquired Lombard for EUR265 million (USD356) million in 2004. Lombard was ultimately purchased by Resolution, Family Life's parent, in 2009, the report said.
Prior to the Resolution deal, British private equity firm CVC Capital Partners had been negotiating to acquire Lombard.
Based on Resolution's half-year earnings report in August, Lombard has a total of GBP20 billion (USD32.3 billion) assets under management. It has paid a GBP4 million dividend to its parent company in 2012, IBR said.
IBR, citing a report by the British Sky News, said that Barclays Plc is advising Resolution on the sale.
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