Legal & General (L&G) is in advanced talks to sell its Dutch arm to Chesnara, with an announcement of the sale expected later this week.
According to Sky News, Chesnara, the London-listed owner of Countrywide Assured, is in talks to buy the overseas unit of L&G and is expected to pay around £130m for the Dutch operations.
The division has apparently been deemed non-core by the board at L&G, making up just a small part of the FTSE 100 firm’s business. The sale will form part of the exit strategy from non-core businesses, as it bolsters its presence in larger pension transfers.
The insurance and savings giant sold L&G France at the end of 2015, to Apicil Prévoyance, after shipping off assets in Ireland and Egypt.
L&G’s chief executive Nigel Wilson has been focusing on long-term infrastructure opportunities and insuring corporate pension liabilities such as a £1.1bn scheme managed by Rolls-Royce Holdings.
The company announced earlier this month that retirement sales in the year to date were £6.7bn, made up of £6.3bn in annuities and £400m in lifetime mortgages. L&G recently picked up Aegon's book of annuities, worth £3bn.
Chesnara, which has a market value of just over £400m, is expected to seek new capital from investors to back the acquisition, according to analysts.
L&G declined to comment.
The deal would mark the latest in a flurry of deals involving European insurance firms of late. Earlier this year, Rothesay Life sealed a deal to take on £6bn of pension liabilities from Dutch insurer Aegon, beating rivals, including L&G to the punch.
Aegon said it would allow the firm to focus on its UK savings platform, which caters for workplace pension schemes.