Phoenix Group has approached Swiss Re about the potential of combining with one of its subsidiaries, according to the Financial Times.

Both life insurance companies would create a group worth around £3 billion and create a business worth more than £100 billion under management. Since raising £250 million of fresh equity in January, Phoenix Group has been looking for possible acquisitions, of which Swiss Re is just one. Scottish Widows has also been cited as another possibility.

‘There is no certainty that these discussions will lead to any transaction. Further statements will be made if and when appropriate,’ Swiss Re said in a statement.

Both companies make money by taking over life assurance policies that were written years ago but are closed to new customers, and managing them more efficiently.

Read more on this story on the Financial Times website, or find out more about and apply for jobs at Phoenix Group.