Jan 28 (Reuters) - Brighthouse Financial ( BHF ) is

exploring options including a potential sale of the U.S. life

insurance and annuity provider, according to a source familiar

with the matter on Tuesday.

Charlotte, North Carolina-based Brighthouse, which was spun

off from MetLife ( MET ) in 2017, is working with investment

bankers at Goldman Sachs ( GS ) and Wells Fargo ( WFC ) on the

plan, said the source, who spoke on condition of anonymity to

discuss confidential deliberations.

Shares of Brighthouse were up 15% in early afternoon trade,

giving the company a market value of around $3.5 billion, after

shares hit their highest level since February 2018 earlier in

the day. The Financial Times first reported the news of a

possible sale.

Brighthouse and Goldman Sachs ( GS ) declined comment. Wells Fargo ( WFC )

did not immediately respond to a comment request.

U.S. life insurance and annuity providers in recent years

have been attracting takeover interest from private equity firms

and other asset managers, which can take the underlying assets

and deploy them into their various strategies. As well as

earning higher returns on the insurance assets, the method helps

turbo-charge firms' other products.

In the last two years, National Western Life Group sold

itself to Prosperity Life for $1.9 billion, while Brookfield

Reinsurance bought annuities provider American Equity Life for

$4.3 billion.