Delphi Financial Group has dropped out of the race to acquire Irish Life as bidders prepare second-round offers within the next two weeks.

The Wilmington, Delaware-based insurer, which specialises in employee benefits for companies, was among five parties short-listed by Irish Life Permanent and its advisers Deutsche Bank for the business, sources said.

The others were a joint bid by US leveraged-buyout firms JC Flowers and Co and Apollo Global Management LLC as well as offers from CVC Capital Partners Ltd, the London-based private-equity firm, US insurer Unum Group and Great-West Lifeco Canada Life Ireland.

The Government is forcing the break-up of Irish Life to recoup some of the cost of bailing out the Dublin-based lender’s unprofitable banking unit.

– (Bloomberg)