UK private equity firm Terra Firma, controlled by its founder Guy Hands, confirmed it was considering making an offer for Lloyd's insurer Chaucer Holdings, in a move that underscores the increasing potential for acquisitions in the UK's non-life sector.

The statement from Terra Firma comes a day after Chaucer said it has recently received "a number of approaches regarding a possible offer for the company". The Financial Times reported that Goldman Sachs Private Equity and TPG had expressed interest in Chaucer last year but have since lost their interest in the insurer. An unnamed US insurance group is also reportedly interested.