QBE Insurance Group Limited (ASX:QBE) is understood to be in talks with Zurich Insurance Group AG (SWX:ZURN) about an acquisition of its general insurance unit. Working on the divestment for Zurich are Goldman Sachs and PwC, and the understanding is that the sale process for bidders is now into the second round. On offer is Zurich's Australian general insurance division, excluding its travel insurance arm.

Some believe the general insurance business on offer is worth about $500 million. However, one possibility is that Zurich just opts to sell the renewal rights for contracts, which would lead to a sale happening at a nominal sum. Also thought to have been taking a look at the business is QBE's rival, IAG.

The speculation about QBE's interest in Zurich's operations comes as recently appointed Chief Executive Andrew Horton has expressed his desire to grow the business in the area of personal insurance lines such as home and motor cover.