Dutch insurer Aegon is reportedly looking to offload its Eastern European business in a bid to cope with the financial hardships brought by the Covid-19 pandemic.

The insurer is also hoping to strengthen its earnings in the core markets through the sale, two sources familiar with the deal told the Reuters.

According to the report, Aegon is currently in discussions with JPMorgan on the sale process.

The company also had initial talks with major players in insurance space to sell its business, which is estimated to be valued at €650m ($767.85m).

Aegon is considering the sale of the business, which is majorly focused on Hungary with presence in Poland, Romania and Turkey, as part of an auction process.

Dutch insurer NN Group and Belgium-based KBC are said to evaluating the possible deals for the assets while interest has also been expressed by Aegon’s German competitor Allianz, said the sources.

The report noted that Aegon, Allianz, KBC and NN Group did not comment on the news.

Aegon specialises in life insurance, pensions and asset management markets. The company offers both life and general insurance in Hungary.

The insurer made its entry to the country in 1992 by acquiring state-owned insurer Állami Biztosító.

This acquisition said to have fuelled the insurer’s further expansion in the Central and Eastern European region.

Earlier this month, Aegon agreed to sell Stonebridge to London-headquartered Global Premium Holdings group in a transaction valued at £60m.

Stonebridge, which offers accidental death and hospitalisation products, maintains operations across the UK, France, Spain, Germany, Italy, Ireland, and the Nordics.

In July, Aegon completed the expansion of its partnership with Banco Santander in Spain.