US media reports say global loss adjuster Cunningham Lindsey could be sold for more than $US1 billion ($960 million).

Reports from New York, where the sale is being handled, say first-round bids are expected shortly. They base the $US1 billion sale figure on 10 times Cunningham Lindsey’s earnings before interest, tax, depreciation and amortisation of $US120 million ($116 million).

Cunningham Lindsey is owned by private equity firm Stone Point Capital and financial holding company Fairfax Financial, which have decided to realise their investment. Some senior managers also have a small shareholding.

Insurance observers are seeing the sale as a sign that merger and acquisition activity has resumed in the insurance sector after a subdued year in 2011.