LONDON (Bloomberg) — Brit Insurance Holdings NV, the Lloyd's of London insurer that sponsors the England cricket team, rose the most in at least 15 years in London trading after it rejected a £785 million ($1.1 billion) takeover bid from Apollo Global Management LLC.

Leon Black's private equity firm offered £10 a share in cash, Brit said in a statement on Friday. The stock jumped 20.7 percent, the most since at least 1995, to 880 pence in London, valuing the insurer at about £691 million.

Brit declined 7.5 percent this year after it was hit by higher-than-expected claims from the Chilean earthquake in February. Private equity firms such as Apollo are resuming their takeovers as the credit crisis thaws, allowing banks to finance leveraged buyouts. The firms have led $49 billion of takeovers this year, 65 percent more than in the same period a year ago, according to data compiled by Bloomberg.

"Brit has been trading on a low valuation for some time, reflecting market concerns about how the business takes itself forward strategically," said Mark Lovett, who helps manage about $80 billion at Allianz Global Investors' RCM unit in London, including Brit stock. He declined to comment on whether he supports the offer.

The insurer said yesterday it rejected the offer because it "significantly" undervalues the company. Charles Zehren, a spokesman for Apollo in New York, declined to comment.

"The board advised Apollo that it was not prepared to engage in further discussions unless a higher indicative offer, which was capable of recommendation, was forthcoming," said Brit.

Fellow Lloyd's insurers Chaucer Holdings Plc, Catlin Group Ltd. and Beazley Plc climbed more than 4.7 percent in London trading as investors speculated other firms may be takeover targets.

"This may well be the catalyst for more interest in the sector, which is significantly undervalued," said Christian Stobbs, a London-based analyst at KBC Peel Hunt Ltd. with a "buy" rating on Brit.