Resolution and Phoenix Group are circling the insurance arm of Co-operative Financial Services, Money Marketing understands.
In August, Money Marketing revealed that the Co-operative was looking to sell its life insurance arm, which has assets worth around £18bn and focuses on pension and protection business.
Pearl Group rebranded as Phoenix Group in March and floated on the London Stock Exchange in September. In February, Pearl revealed it had generated about £500m in cash over 2009 and said it would be ready to make acquisitions as soon as it floated.
In June, reports suggested Phoenix was looking to use its £10bn annuity book to help raise money to fund acquisitions of more closed life funds.
Pearl completed a takeover of closed life group Resolution in 2008. Resolution founder Clive Cowdery retained rights to the brand after the takeover, which he used to acquire open life companies such as Friends Provident and Axa’s UK life and pension assets.
A Co-op spokesman says: “Following the merger with Britannia, CFS is committed to a strategic review of its life and savings business. At this stage, no decision has been reached.”
Resolution and Phoenix refused to comment.