Germany-based Ergo International and Canada-based Manulife Financial are reportedly engaged in negotiations with UK-based Legal & General Group to acquire its 26% stake in IndiaFirst Life Insurance.

According to local media reports, both insurance companies are separately talking to buy the stake in the Indian life insurer.

The development comes at a time when Legal & General Group expressed its willingness to divest its stake in IndiaFirst.

The British financial group has already selected investment bank Ambit Corporate Finance to find a suitable buyer.

Headquartered in Mumbai, IndiaFirst Life Insurance is joint venture of Bank of Baroda and Andhra Bank who own 44% and 30% stake respectively, while the remaining stake is owned by Legal & General.

The discussions are still in their early stage and it is said that the proprietors of the venture are not keen on divesting their stakes.