AIA Group is in line to buy the Malaysia and Thailand insurance businesses of Dutch bank ING, according to reports.

ING has put all its Asian insurance operations up for sale as it struggles to reduce debt.

The Dutch bank planned to sell the €6.6 billion ($8.1 billion) regional business – which also operates in Hong Kong, Japan and South Korea – as a whole, it but failed to find a buyer.

It is now offering parts separately, attracting a number of local and international insurers.

Neither AIA nor ING will comment on the deal, with negotiations understood to be at an advanced stage.

In ING’s second-quarter results the business is valued at €1.5 billion ($1.84 billion).

Last month ING Chairman Jan Hommen said the sale of the Asian insurance operations was “on track”.

It is understood Canadian insurer Manulife and a consortium of Hong Kong businessmen led by Richard Li are in talks to buy the Hong Kong and Japanese operations, valued at €2.1 billion ($2.5 billion).

Mr Li previously owned Hong Kong life insurer Pacific Century Life, which he sold to Fortis in 2007.

Bidding for ING’s South Korean business, which has a book value of €2.5 billion ($3 billion), is expected from local insurers.

The bank must sell the Asian operations by the end of next year to satisfy conditions imposed by the European Union on a Dutch Government bailout.