Allianz is expected to sell its Hunter Premium Funding business by the end of the year, according to a report in the Australian Financial Review. 

The newspaper’s Street Talk Column, citing sources, says Australian private equity investor Pemba Capital Partners has “secured exclusivity” to acquire the Allianz-owned company. 

Pemba is already a significant player in the premium funding business through its investment in Arteva Funding, which describes itself as the “largest independent” insurance premium funding company in Australia. 

Street Talk says Pemba is expected to close the deal for Hunter around Christmas if its financial arrangement to fund the acquisition goes through. 

Pemba has been working through a $1.5 billion warehouse and mezzanine financing facility for Hunter and Arteva together, which has secured support from six lenders including Commonwealth Bank and RBC Capital Markets, according to the newspaper. 

It says Pemba intends to place Hunter in its $625 million Fund III portfolio of investments, separate from Arteva which is housed in the Fund II portfolio.

Allianz declined to comment on the report.

Street Talk reported earlier this year that Allianz was looking to selling the business and had commissioned Deutsche Bank to run a sale process.