A £650m deal is reported to be in the early stages


Aviva is considering a £650m takeover of the Co-op Group’s insurance arm, according to the Sunday Times.

Deutsche Bank has been appointed to sell the insurance business and so far has interest from several potential buyers. In addition to Aviva, Ageas and entrepreneur Edmund Truell have both shown an interest in the business.

Aviva’s interest comes following the announcement last week that it is cutting 2,000 jobs as part of an ongoing cost-cutting exercise.

The Co-op is selling its insurance business in order to fund the acquisition of 632 branches from Lloyds Banking Group. The bank was ordered to sell the branches by the European Commission.