Brit Insurance Rejects Apollo Takeover Offer

(Reuters) – London-listed Brit Insurance (BRE.L) has rejected a takeover approach from U.S buyout group Apollo that valued the insurer at more than 570 million pounds, the Financial Times reported on its website on Friday.

Citing people close to the situation, the FT said Apollo had made an indicative offer of 10 pounds a share to Brit’s board on Monday and was considering whether to raise its offer.

Property and casualty insurer Brit said on Thursday it had received an unsolicited indicative approach from a private equity group that significantly undervalued the company.

Brit shares closed 1.3 percent lower at 729.5 pence ahead of the announcement, valuing the company at about 571 million pounds.

Brit which operates in the Lloyd’s of London [LOL.UL] insurance market and also acts as an insurer to small and medium-sized businesses, in February reported a 30 percent increase in full-year profit, helped by stronger investment returns.

The company revealed last month it faced a hit of $71 million from the earthquake that struck Chile in February.

No one at Apollo could immediately be reached for comment. Brit did not immediately respond for a request for comment.

(Reporting by Caroline Copley; Editing by Bernard Orr)