German insurance giant Allianz is said to be negotiating with South Korean banking firm Hana Financial Group to sell its 50% stake in its 50:50 joint venture with the South Korean firm, Hana Life Insurance, to Hana Financial Group.

The joint venture company was launched in 2003 by Allianz and Hana Bank, an arm of Hana Financial Group, targeting the bancassurance market in South Korea, AFX reported.

Citing an anonymous source, Reuters reported that Allianz had been contemplating divesting its stakeholding in Hana Life Insurance for a while. It then appears that Hana Financial Group decided to acquire the stake itself instead of finding a new partner.

However, citing another anonymous source, Reuters reported that conflict between the two companies had caused the sale of the stake.

Financial details of the proposed transaction have not yet been revealed.