Co-operative Financial Services could look to sell off its life insurance arm as part of its integration with Britannia Building Society.
Its life and health insurance arm has assets worth around £18bn, with a focus on pension and protection business.
In July, Money Marketing revealed the Co-op was looking to offload its IFA arm, Co-operative Independent Financial Advisers. It remains in exclusive talks with a potential buyer.
A Co-operative spokesman says: “We have a massive integration program taking place over the next two to three years with CFS and Britannia and that is progressing. We are going to have to look at things and that would include, for instance, the provision of life and savings and how we best distribute that but no decision has been taken so far.”
Syndaxi Chartered Financial Planning managing director Rob Reid says there may be a few potential buyers in the market.
He says: “I understand the Co-op has an investment bond tie-up with Aviva, so that is one company to keep in mind. Also let us not forget Resolution, which may be looking to buy up more businesses.”