Private equity firm Texas Pacific Group is considering a bid for Royal Bank of Scotland's 8 billion pound ($15.9 billion) insurance arm, the Daily Telegraph said on Friday.
"TPG is doing its homework on the business now," the newspaper quoted a source as saying. "It is very premature and no decision has yet been made to bid for it, but TPG is interested."
The Telegraph said TPG was particularly keen on RBS's Churchill and Direct Line insurance brands, but was considering a bid for the entire business.
TPG and RBS could not immediately be reached for comment.