LV= has reportedly signalled an interest in buying MGM Advantage as part of MGM’s bid to raise £200m.
MGM chief executive Chris Evans (pictured) has been in advanced talks with private equity house TDR over the deal.
If MGM raises the £200m it needs, it would then close its traditional pensions and savings business to new customers.
The Sunday Times says a private equity sale could prove more complicated.
MGM has over £1.9bn of funds under management, 17,000 members and 250 staff. Members of the mutual insurer would not receive a windfall following the sale either to TDR or LV=. Any sale would be subject to regulatory approval.