Exit of foreign insurers from Taiwan continues.

Dutch insurer Aegon is set to sell its Taiwan unit to a group led by a local property developer and local Aegon managers, according to reports.

"The deal should be announced soon," said an unnamed source. "It makes sense for a property company to expand into the insurance business," he said.

The buying group includes Peng Cheng-hao, chairman of unlisted Meifu Property Development Co, and the local management team of Aegon. The purchase price could be T$1.5bn ($44m) according to a report in the Chinese-language United Daily. This price would be below what Aegon was originally seeking. Previous reports in February mentioned a price of T$4bn.

But in February the Prudential sold its Taiwan insurance business for a token T$1.

Aegon's move comes as a number of major international insurers have either left or are looking to leave Taiwan's competitive insurance market to focus on their larger operations at home, which have suffered during the financial crisis.

In October, ING Groep sold its Taiwan insurance unit to Fubon Financial for $600m.

AIG is trying to sell its Taiwan business, Nan Shan Life.

On Tuesday, Allianz said it had no plans to exit the Taiwan market.