Brazil-based Caixa Seguridade Participações SA said it received approval from parent Caixa Econômica Federal to hire an underwriter syndicate that will evaluate the insurer's potential initial public offering.

Assessment studies on Caixa Seguridade's divestment potential are also underway, the company said in a Jan. 8 statement.

Caixa reportedly looks to launch its insurance arm's IPO in April. The operation is expected raise more than 11.5 billion reais and value Caixa Seguridade between 50 billion and 60 billion reais.

As of Jan. 7, US$1 was equivalent to 4.08 Brazilian reais.