The accord to distribute non-life products through the branches of Italy's third-largest bank is worth around 300 million euros ($296 million), the sources said.
The price tag was higher before Banco BPM in August decided to hold onto its life insurance business, after acquiring full control of the venture by buying out its previous partner Covea.
The race pits French insurer AXA, which already partners with Monte dei Paschi di Siena in Italy, against Credit Agricole, the single biggest investor in Banco BPM.
Credit Agricole has bought 9.2% of Banco BPM this year with a view to expanding their strategic partnerships beyond consumer finance. Insurance and asset management, which Banco BPM has put at the core of its profit strategy, are seen as the obvious candidates.
The sources said also Assicurazioni Generali is in the running, adding however the Italian insurer's offer had fewer chances of success.
Banco BPM, AXA, Credit Agricole and Generali all declined to comment.
The sources said Banco BPM would likely take a few weeks to decide once it receives the offers.
Banco BPM CEO Giuseppe Castagna recently said the bank was in no rush to select an insurance partner. In August Banco BPM had indicated it would take a decision by the end of the year.
After ending the accord with Covea, by mid-2023 Banco BPM also has the option of an early exit from an insurance partnership with Cattolica, a unit of Generali.
If Banco BPM were to exercise the call option on the Generali venture it could fold the non-life business into the deal it is in the process of striking, it has said.
(Reporting by Andrea Mandala; Editing by Valentina Za)
By Andrea Mandala
