(Bloomberg) -- OneBeacon InsuranceGroup Ltd., the specialty insurer controlled by White MountainsInsurance Group Ltd., is exploring a sale, people familiar withthe matter said.

The Bermuda-based company recently began working with CreditSuisse Group AG to solicit offers from rival insurers, said thepeople, who asked not to be identified because the process isprivate. Representatives for OneBeacon and Credit Suisse declinedto comment. A representative for White Mountains didn’t immediatelyrespond to a request for comment.

More potential U.S.-based buyers possible

With the possibility of lower tax rates under President-electDonald Trump, the pool of potential buyers in insurance-industrydeals could expand to include more U.S.-based companies, GaryRansom, an analyst at Dowling &Partners, said at a conference Tuesday in New York. In prioryears, the buyers in large insurance deals were often fromlower-tax jurisdictions, like Switzerland or Bermuda.

“The U.S. can be back in the game,” Ransom said at an event heldby the Insurance InformationInstitute, citing the deal last month by Boston-based Liberty Mutual Holding Co. to acquire Bermuda’sIronshore Inc. “Suddenly, U.S. companies, if you assume a lowertax rate, they can buy Bermuda companies.”

Shares of OneBeacon rose as much as 13 percent, the most since2009, in New York trading, giving the company a market value ofabout $1.6 billion. White Mountains, which owns about 76 percent ofOneBeacon, gained 2.2 percent.

Pricing competition

Pricing competition from hedge funds, as well as low interest ratesand other headwinds, are squeezing margins at some property andcasualty insurers. That’s putting pressure on the industry toconsolidate: Specialty insurer Allied World Assurance Co. agreed in December to besold to Canada’s Fairfax Financial Holdings Ltd. for $4.9billion.

OneBeacon earned $28.6 million in the third quarter of 2016,after booking a loss of $13.2 million a year earlier, it reportedin November.

The company previously explored a sale in early 2015, drawinginterest from parties including China’s Fosun International Ltd.,people familiar with the matter said at the time.

White Mountains, an investment firm that focuses on insurers, isregularly churning its portfolio. Last year, it sold marketingcompany Tranzact to buyout firm Clayton Dubilier & Rice for anundisclosed price, and Sirius International Insurance Group Ltd. toan affiliate of China Minsheng Investment Corp. for $2.6billion.

Related: Strategies for a successful post M&Aintegration

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.