British insurer LV= is close to sealing a deal with Allianz for a minority stake in its general insurance operations, according to reports.
One of the largest financial services mutuals in the UK could sell a stake in its insurance unit as soon as this week to bolster its balance sheet, Mark Kleinman at Sky News reported.
The deal is said to value the division at around £1bn and could be announced as early as Friday.
Read more: LV= is mulling a merger or disposals
German insurance giant Allianz's deal with LV= will only involve the sale of 49 per cent or less of the general insurance business.
Analysts told Sky the deal would transform Allianz's position in the UK market.
Allianz's large asset management division includes Pimco, the bond fund manager.
LV=, which has nearly 6m UK customers across insurance, pensions and income protection products, was previously known as Liverpool Victoria.
The group's profit was hit by a combination of tougher capital requirements and low interest rates prompting it to mull a number of operations in order to boost its capital surplus.
Its profitable insurance division has been the subject of a number of acquisition enquiries from other insurers.
A spokesperson said LV= does not comment on market speculation. Allianz did not immediately respond to a request for comment.
Read more: LV in sale talks with Allianz