Family Assurance Friendly Society is in talks to buy an employee benefits firm and a fund manager in deals worth £20m.
Family is aiming to move into the employee benefits and private medical insurance markets through the deals.
The friendly society is courting a firm that specialises in managing group personal pensions and an employee benefits firm. It has a war chest of £10m for each firm is aiming to secure a deal within six months.
The acquisitions will boost its share of the pensions market and give it a foothold in new markets. Friendly plans to move into the employee benefits market by next summer. This will be followed by a launch into the PMI market.