France’s CNP Assurances Weighs Takeover Offer for Coface

French life insurer CNP Assurances SA is exploring a potential takeover of Coface SA, people with knowledge of the matter said.

CNP, which is owned by state-backed La Banque Postale, is working on an offer for the credit insurer, said the people, who asked not to be identified because the information is confidential.

For a deal to be successful, CNP would need to convince Arch Capital Group Ltd., which is Coface’s biggest shareholder with a 29.9% stake. Coface shares climbed 8.9% in Paris, giving the company a market capitalization of €2.6 billion.

Deliberations are still at an early stage and CNP could decide against making an offer, according to the people. Other bidders could still emerge, they added. Representatives for CNP Assurances, Coface and Arch Capital declined to comment.

Coface provides insurance to protect firms against the risk of non-payment by their suppliers. The company offers trade credit insurance, business information, debt collection, single risk insurance, surety bonds and factoring.

CNP, or Caisse Nationale de Prevoyance, is one of the largest life insurers in France. While it already provides creditor loan insurance, a Coface acquisition would expand its activities in the trade credit space.

Arch Capital Group bought a stake in Coface from the French banking group Natixis SA in a deal that completed in 2021. Coface has been listed in Paris since its IPO in June 2014.