DORSET insurer LV= is in exclusive talks with an investment firm about a possible sale of the business.

The County Gates-based employer had confirmed earlier this week that it was talking to a “number of parties”.

In a statement on Friday morning, LV= said: “The board of Liverpool Victoria Financial Services Limited (LV=) today announces that it is in exclusive discussions regarding a potential transaction involving Bain Capital.

“As previously stated, LV=’s board’s focus is on maximising long-term value for its members and ensuring the business continues to be operated in their best interests, following the disposal of the general insurance business.

“Discussions between LV= and Bain Capital are on-going and there can be no certainty that any transaction will be agreed, nor any certainty as to the terms on which any such transaction might proceed. Any transaction would also be subject to regulatory approval. The two organisations will make further announcements if and when appropriate.”

Pensions giant Royal London had previously been thought of as a possible buyer for LV=.

The general insurance arm of LV=, which insures homes, cars and pets, was sold to Allianz last year so would not be affected by any sale.