Saga Group is seen as a potential acquisition target for top UK insurers after reports suggested it could be on the verge of a £2bn flotation or sale.

The travel and financial services giant, which was acquired by Charterhouse Capital Partners for £1.35bn in October 2004, has been the focus of a number of unsolicited offers, according to national newspaper reports.

With one of the largest books of personal lines policies in the UK, as well as underwriting its own motor book from Gibraltar, insurance companies, such as AXA, Aviva, and Zurich, have been touted as potential suitors.

Speculation among analysts has suggested that Saga's lack of focus on financial services could deter many institutional investors.

But, according to one senior market figure, AXA and Saga could make a good strategic fit. Groupama is unlikely to figure in the potential bidding after ending its agreement to underwrite motor insurance on behalf of the group in 2004.

Saga Group played down the rumours saying they were "purely speculation".