Partnership to be sold with price tag around £750m-reports

Retirement and long term care specialist Partnership Assurance will be the subject of a bidding war with a price tag in the region of £750m, according to reports.

Its private equity firm parent Cinven is set to start the process to sell Partnership Assurance after receiving a number of takeover approaches, the Sunday Telegraph reports.

The paper understands Cinven has spoken to four banks with a view to picking a single adviser to take the process forward.

Cinven bought Partnership Assurance from Phoenix Equity Partners in June 2008 in a deal valuing the business close to £174m. The business was formed in October 2005 following the management buy-out of the Pension Annuity Friendly Society.

Results for the year to December 2010 show profit before tax from continuing operations of £35.4m, a figure which is expected to double in the current year.

As a result, it is believed any sales process is unlikely to begin in earnest until audited accounts for 2011 are available, and a sale may not take place until 2013, according to the Sunday Telegraph.

A Cinven spokesman declined to comment.