London-based underwriter Aviva is considering purchasing the Co-operative Group general insurance business in a deal valued at approximately £650m ($989.82m).
Co-operative Group, which operates as one of the UK's largest consumer co-operative society, is offloading its insurance business to collect the required capital for its proposed acquisition of 632 Lloyds bank offices, as reported by The Sunday Times.
The acquisition would further strengthen the British insurer's core business in the country, which is also a part of the new chief executive Mark Wilson's strategy, who took charge of the company in January this year.
Aviva is one of the potential suitors in the auction along with other prospective buyers, including Aegeas, the Belgian financial services group, and the dealmaker Edmund Truell.
In a bid to remain competitive and increase market share in the country, Aviva is working to slash operational cost and acquire profitable insurance operations.
Most recently, the company announced to eliminate approximately 2,000 jobs across the UK, European and Asian operations, over the next six months, which represents 6% of its total employee's strength globally.
Last year, the company scrapped 2,500 jobs across its global operations and saved £275m on an annualized basis.
Serving 43 million customers, Aviva delivers life insurance, general insurance and asset management businesses, savings and investment products.
