Germany-based reinsurance company Hannover Re said it had been talking with Heidelberger Leben for a possible minority stake acquisition. Lloyds Banking Group owns Heideberger Leben, a life insurance company in Germany. The British bank would be letting go of its German unit as part of its exit strategy for its overseas investments.

Hannover Re revealed that it would invest less than EUR 100 million for the reinsurer. A source told Reuters that another private equity investor would also purchase the majority stake. Lloyds, however, did not comment regarding the details of the deal. Hannover Re did not also give additional details in the matter. "In view of the fact that negotiations are still ongoing, the company is currently unable to provide any further details in this regard," Hannover Re had said in a statement.

For the past two years, Lloyds has been trying to exit the German life insurer but had a difficult time finding takers. Heidelberger Leben was reported to have an insurance-specific valuation measure worth EUR 1 billion when it was offered in 2011.