Aegon is understood to be in talks with Royal&SunAlliance about buying its life business.
Industry sources say Aegon representatives are currently talking to investment bankers brought in by R&SA to price its life book as a separate business to general insurance. R&SA have said that its primary focus is its general business but sources believe it is also likely to hang on to its fund management arm because of assets held form the general side.
The price for R&SA could be affected by its heavy annuity liabilities from the Sun Alliance and London book, estimated at £700m.
Share holder pressure to achieve the maximum price is likely to scupper any exclusive talks with Aegon, with GE Capital expected to take an interest.