THE insurance entrepreneur Clive Cowdery is considering a possible bid for Clerical Medical, the life assurer that forms part of HBOS’s £6 billion insurance empire.

Cowdery, who sold his Resolution Life insurance company earlier this year, will this week reveal that he is pressing ahead with plans to float a new acquisition vehicle on the London Stock Exchange before the end of the year.

In spite of the turbulent market conditions, Cowdery is believed to have attracted support from a number of his previous backers, including Prudential, Standard Life and Royal London.

While he is unlikely to reach his target of £1 billion, it is understood that the new vehicle, also called Resolution, will raise at least £500m. The listing looks set to be one of the biggest fundraisings by a UK company this year.

Clerical Medical is one of a number of possible targets, along with Friends Provident, according to industry sources. Lloyds TSB is believed to be open to the idea of disposing of the franchise following its planned takeover of HBOS. Lloyds already owns Scottish Widows, which is bigger and has a higher-profile brand.

Lloyds has said publicly it plans to merge Clerical Medical and Insight Investments, the HBOS fund-management arm, with Scottish Widows.

However, a sale could help it meet its target of repaying the government’s preference shares in the bank - allowing it to restart dividend payments.

Although Cowdery made an attempted bid for Bradford & Bingley before it collapsed into government ownership, it is understood that he is now focusing his ambitions on opportunities in fund management and insurance.

Citigroup, HSBC and Merrill Lynch are advising on the flotation, with Lazard acting as Cowdery’s principal adviser.

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