(Reuters) — Hamilton Insurance Group is considering strategic options amid growing momentum for deals involving insurance and reinsurance companies, people familiar with the matter told Reuters.
The Bermuda-based group has discussed options with potential advisers, including an initial public offering and a private sale, said the people, who spoke on condition of anonymity.
A transaction could value Hamilton at more than $2 billion, one of the people said. The group reported a book value of nearly $1.7 billion at the end of December. Listed competitors are traded at a premium relative to their book value.
The discussions are preliminary and a transaction may not materialize, the people said, with one person suggesting a deal is more likely to happen after the hurricane season ends in November given the company̵7;s natural disaster insurance exposure.
A spokesperson for Hamilton declined to comment.
The timing of the strategic discussions is favored by a number of industry tailwinds.
Investors have shown appetite for the sector, with shares in Skyward Specialty soaring since their New York debut in January. Reinsurer Everest Re last month raised about $1.5 billion to fund growth. Bermuda-based Fidelis Insurance said in April it plans to seek a U.S. IPO.
Private sales have also returned, most notably when American International Group Inc. sold its reinsurance unit Validus Re for nearly $3 billion to RenaissanceRe last month.