Global insurer Zurich is reportedly in advanced talks over the sale of a €20 billion (USD 21bn) portfolio of German life insurance policies to Viridium Group, part of Cinven.
According to Bloomberg, people familiar with the matter said that Zurich could announce the planned sale as soon as this week.
However, an agreement is yet to be reached and the people said that discussions could end without one.
It was reported last year that Zurich was considering the sale of its German life back book, which analysts said would be positive for the firm as it would lower capital allocated to capital intensive traditional life business.
At this time, potential buyers of the business were touted as life run-off firms Athora, Frankfurter Leben, and Viridium.
The people have told Bloomberg that the portfolio includes around €20 billion of liabilities. Back books are often acquired by private-equity backed consolidators, which can lower costs and move some of the funds into higher-yielding assets.