Japan's Dai-ichi Life Insurance, Zurich Insurance Group and Allianz in Germany are gearing up to bid for the insurance arm of Turkish bank Yapi ve Kredi Bankasi, Yapi Kredi Sigorta, to expand their footprint in Turkey.

Yapi Kredi Sigorta is a joint venture between Italy-based UniCredit bank and Koc Holding in Turkey.

A source was quoted by Reuters as saying, "Binding bids will be submitted on Feb 15," and is most likely that the transaction will be completed by the end of June this year.

The business, for which the three underwriters are poised to bid, has a market value of $1.2bn, according to Reuter’s data.

All concerned parties including Yapi Kredi, Allianz, Dai-ichi, Zurich and Sompo Japan Insurance, which was also competing but backed out, declined to comment.

Citigroup is offering advice to Allianz, Bank of America Merrill Lynch advising Dai-ichi, and UBS extended advice to Zurich insurance. Deutsche Bank and UniCredit are advising Yapi ve Kredi Bankasi.