UK insurer Esure (ESUR) is up 6.4% to 279.40p after The Sunday Times reported the company’s founder and largest shareholder Peter Wood was looking to sell his controlling 30.7% stake.
Esure said it did not comment on ‘rumour or speculation’.
The article claimed Wood had held informal discussions with potential buyers to sell his stake, suggesting such a move could trigger a bid for the whole business.
Heads of rival insurance companies claim to have been contacted by Wood in recent months to gauge interest in a deal, added The Sunday Times.
The newspaper also claimed Wood had long been preparing for a sale of Esure, as evident by spinning off the insurer’s price comparison website Gocompare (GOCO) in November last year.
It is thought that a merger with a US insurer would be the most likely type of deal going forward. The newspaper said that Travelers, Allstate, Berkshire Hathaway and Progressive had all been looking at a move into the UK for some time.
One possible reason for a sale of Esure is the weakening profits in the UK’s motor insurance industry as the group also owns the Sheilas’ Wheels brand.
Motor insurers have been impacted by changes to the Ogden discount rate for personal injury claims.
