The discussion, which is being headed by Legal & General annuity business managing director Kerrigan Procter, will allows the London-based company to compensate a collapse in sales of individual annuities in its domestic market, as reported by The Financial Times.
If the talks materialise, it will be the company’s first "bulk" annuity deal outside the UK within about a year.
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For the first half year ended on 30 June 2014, Legal & General reported a 49% decrease in sales of UK individual annuities, which was £383m compared to £754m during the first half of 2013.
However, the British insurer defied the collapse of individual annuities in the first half with the better performance of its bulk-annuities, which helped the insurance giant to net profits of £507m in the first half of 2014, up 9% from the same period in 2013.
As a result of the reforms brought by the UK government, pensioners will no longer be forced to purchase an annuity, which had been among the UK life industry’s most attractive products, according to the publication.
L&G forecast another 50% decline in annuity sales next year.
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By GlobalDataLegal & General group chief executive, Nigel Wilson, was quoted by The Financial Times as saying that: "L&G was eyeing further "bolt-on" acquisitions in areas including housing, bulk annuities and possibly general insurance."
