Aviva has turned down an estimated £5bn bid from rival RSA for its general insurance operations in the UK and other markets.
Sky News reports the Aviva board immediately rejected the offer, which was made in the "last few weeks", on the grounds it believes the company's model of offering both general and life insurance products is the correct strategy.
According to Sky, RSA believes it could deliver significant value by integrating Aviva's general insurance operations with its own.
As well as Aviva's UK business, RSA is understood to be interested in its general insurance arms in Canada, Ireland and elsewhere.
It remains unclear whether RSA will return with a larger bid, and Sky makes clear there are currently no ongoing discussions between the companies.
