German insurance major Allianz is weighing options to divest its Saudi Arabian unit, Bloomberg reported citing unnamed sources. 

The sale is aimed at streamlining the insurer’s portfolio and raising funds. 

The sources told the publication that Allianz is working with an adviser on the potential divestiture of its majority stake in Allianz Saudi Fransi Cooperative Insurance

Notably, since the start of the year, shares of the Riyadh-based insurance company have slumped nearly 44%, giving it a market valuation of approximately $231m.

Allianz Saudi Fransi’s peers also expressed interest in buying the insurer, the sources said.

These talks are at an early stage and no deal is certain as the German insurer could still decide to retain its stake, they added.

Allianz representatives declined to comment on the development and an Allianz Saudi Fransi spokesperson could not be reached for comments. 

The unit up for potential sale is a joint venture between Allianz and Banque Saudi Fransi and was established in 2007.

Allianz controls a 51% stake in the JV, which caters to both individual and corporate customers with services marine, travel, motor and health insurance. 

Earlier this year, Allianz and Sanlam Group agreed to merge their businesses to create a pan-African insurance entity with operations in 29 countries across the continent.

Through the merger, the firms hope to increase penetration of life and general insurance in high-growth African markets and develop new products to further financial inclusion.