Chinese real-estate developer Evergrande Group is looking to sell its insurance businesses to a government-backed company, reported Bloomberg, citing sources.

A Shenzhen-based state-owned organisation is in talks to acquire Evergrande Life Assurance Company and rename it Hai Gang Life Insurer, according to the sources.

They added that the details of the transaction such as the exact ownership structure and pricing have not yet been finalised.

Evergrande currently owns 50% of Evergrande Life Assurance Company.

Requests for comments from Evergrande and the life insurance business were not fulfilled. 

The real estate developer, which has amassed a debt of hundreds of billions in Chinese Yuan, acquired a stake in the life insurer in 2015.

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It was earlier reported that Evergrande purchased the shares in Evergrande Life Assurance Company from the Chongqing City Construction Investment and the Chongqing Land Group.

The life insurer was formerly known as the Great Eastern Life Assurance Company (GELC).

Evergrande, which is at the epicentre of a debt crisis that has affected China’s real estate market and slowed economic growth in the country, has sold a range of assets to pay off debts.

The company sold its stake in Shengjing Bank Company last September in a deal brokered by the local authorities.

Evergrande is attempting to get creditors to approve a significant offshore debt restructuring plan.

Following its default in late 2021, the company is also facing lawsuits worth billions of dollars.