Churchill has confirmed that it has been approached by several potential buyers, including Direct Line.
Churchill chairman and chief executive Martin Long told the Times on Monday that Churchill has received several approaches, as its owner, Credit Suisse, revealed that it is planning to offload the insurer for £1.5bn.
Direct Line, the insurer owned by the Royal Bank of Scotland, is thought to be the most likely buyer. It is understood that Direct Line and Churchill have been in talks since October last year over a possible takeover or merger.
Long said two weeks ago that potential buyers had attempted to court Churchill in recent years, but he had insisted the insurer was not for sale.
Churchill is one of Credit Suisse's most valuable assets, posting a 48% rise in pre-tax profit to £83m for 2002. However the Swiss bank's performance has been weighed down by poor results at Winterthur, its life insurer.
