The Jakarta-listed lender, which has a market value of $74 billion as of Monday, is working with an adviser on a strategic review of PT Asuransi Jiwa BCA, also known as BCA Life, the sources said.

Other options under consideration include establishing a joint venture with a foreign partner or a bancassurance partnership where an insurer can sell its products and services in a lender's branches for a period of time, the sources added, declining to be named as the process is private.

A spokesperson for the bank declined to confirm or deny the developments.

Reuters could not immediately ascertain the potential size of any stake to be sold or how much the unit would be valued at in such a deal. BCA Life had total assets worth 2.34 trillion rupiah ($156.08 million) as of December 2022.

The sources said deliberations are at an early stage and no final decision has been made.

"In principle, BCA and its subsidiaries are always open to collaborate with strategic partners to expand our services, while supporting business growth," BCA spokesperson Hera Haryn said.

She added many industry players were interested in taking advantage of Indonesia's potentially large life insurance market.

A potential deal could see BCA joining a list of lenders and insurers in Asia seeking tie-ups for their insurance subsidiaries. These include India's Kotak Mahindra Bank that is in talks to sell a stake in its general insurance unit to Zurich Insurance Group and Japanese insurer Tokio Marine Holdings tapping investment banks to work on a sale of its Southeast Asia life insurance business, Reuters has reported.

BCA Life started operations in 2014 and is the only unit under BCA that offers life insurance services, according to its website. BCA Life, which has up to 200 employees, offers insurance products including savings and health, its website shows.

($1 = 14,992.0000 rupiah)

(Reporting by Yantoultra Ngui in Singapore and Stefanno Sulaiman in Jakarta; Editing by Kane Wu and Raju Gopalakrishnan)

By Yantoultra Ngui and Stefanno Sulaiman