Allianz is in “advanced discussions” to buy Westpac’s general insurance business in a deal estimated at $500 million, a media report claims today.

As insuranceNEWS.com.au has previously reported, Westpac announced a strategic review of its non-banking operations in May.

“We have several businesses where we don’t have sufficient scale or where the returns are insufficient for the risk,” Westpac CEO Peter King said at the time. “These include … general and life insurance.”

Mr King said the review would consider whether these businesses would “ultimately be more successful under different ownership”.

Reports suggested Allianz, QBE and IAG were all interested in the general insurance business, but the Australian Financial Review’s Street Talk section today says Allianz is running due diligence and “seeking to firm up an indication of interest”.

Westpac general insurance writes home and contents and motor, recording nearly $600 million in premium revenue in the past year, the newspaper reports.

An Allianz Australia spokesman told insuranceNEWS.com.au that the insurer could not confirm or deny market speculation.