Aviva, the UK's largest insurer, has confirmed it is in talks to sell its Australian insurance business to Insurance Australia Group (IAG), in a deal worth £635m.
In a statement, IAG requested that its trading halt be continued, with the company reviewing "appropriate funding arrangements".
IAG said the proposal is a logical step in its strategy to diversify, adding that it will inform the market when a transaction is concluded.
An IAG spokesman said: "Owing to the state of negotiations, the precise timing of any announcement is uncertain, but IAG will keep the market informed as discussions progress."
Aviva is one of several UK-based insurers and fund managers that have been withdrawing from the Australian market.
