Legal & General is rumoured to be planning the launch of an offshore life office offering an investment bond.
L&G has had no offshore presence other than its structured products which are Dublin-based unit trusts.
It is believed to be looking at an open-ended life wrapper although no details of where such a product would be domiciled are available.
The company has not ruled out the launch of a new product later in the year although it says that a summer launch is unlikely.
Industry sources say such a launch could be part of a strategy to diversify into new areas of business because of narrow margins in the pension market.
L&G spokesman Steve Leach says: “As a major institution, we are always looking at all options across the market but there is nothing imminent. But this does not mean that we will not be launching something later in the year.”
Knightsbridge Financial Services principal John McClelland says: “It is already a rather crowded marketplace but with L&G's brand I am sure there is enough business for such a move to be worth its while.”