Westpac is considering selling its life insurance business, according to media reports.

They say the bank is in the preliminary stages of assessing its strategic options for the life business, which could be sold for $1.5 billion-$2 billion.

In-force premiums in the first quarter of this year totalled $1.26 billion, down from $1.28 billion in the previous corresponding period. Most of the drop came from its retail life business. Westpac holds 9% of the life market.

Its wealth business BT has already been absorbed within the bank’s consumer and business divisions, and its advice arm sold off. BT’s life insurance quote and application software has recorded a 30% increase in adviser-generated quotes since it was launched in April this year. Westpac’s lapse rates for its life insurance policies are lower than the market average.

BT is one of two Australian life insurers still locally owned. The sale of AMP Life to Resolution Life is being renegotiated after the deal was scuppered last month by the Reserve Bank of New Zealand.