Netherlands-based insurer Delta Lloyd is reportedly planning to acquire the insurance operations of financial services company, SNS Reaal.

The company has appointed external advisors to prepare a bid for the deal, which could be valued between €700m and €1bn, reports newspaper de Telegraaf.

Delta Lloyd has hired former SNS Reaal chief financial officer Ference Lamp, who is currently working for Merrill Lynch, noted the newspaper.

SNS Reaal insurance arm has been renamed as Vivant, after the company was nationalized in 2013. The sale of its insurance arm is based on a condition of its $5bn bailout that requires it to split off its insurance operations and sell them.

Both the parties declined to comment on the reports regarding the deal.

The Dutch insurance sector is set for a consolidation wave due to impact of the financial crisis in 2008 and the subsequent bailouts.