The Beechwood reinsurance companies are in talks with large insurance and private equity firms to sell most or all of their operations, Reuters reported Dec. 9, citing "a person familiar with the situation."

The move comes after the company came under fire from investors over its links to Platinum Partners LP, the hedge fund manager embroiled in multiple federal investigations.

Davidson Goldin, an external spokesman for Beechwood, told Reuters that while the firm's successful business model is deemed attractive by investors, its relationship with Platinum Partners is causing "substantial reputational issues."

Beechwood, which made hundreds of millions of dollars of investments in Platinum-related hedge funds and businesses on behalf of its clients, has been working to sever its ties with Platinum Partners after the hedge fund was forced to liquidate its main hedge funds in July amid pressure from federal probes, Reuters noted.

In September, CNO Financial Group Inc., one of Beechwood's major clients, terminated its units' reinsurance agreements with the firm and initiated legal action against current and former individual principals of the firm for damages caused by their actions.

Beechwood Re Ltd. is the Beechwood group's reinsurer licensed by the Cayman Islands Monetary Authority, while Beechwood Bermuda International Ltd. is licensed by the Bermuda Monetary Authority.