Andy Haste, who stepped down as the boss of RSA Insurance in 2011, is heading a bid offer to acquire the general insurance arm of the struggling Co-operative Group.

The private equity backed acquisition bid is being headed by Haste and the talks are in initial stages and may not result in a deal, according to the people closer to the matter. The bid is being assembled by Advent International, which has been investing is a host of firms in the financial services sector.

Mr Haste is now working as deputy chairman of the Lloyd's of London reinsurance market and is also working with Advent on its interest in Hastings that is aiming to sell a stake to raise funds for expansions. His involvement of Mr Haste is known in the week when mutual is expected to begin a controversial financial restructuring.

The Co-Op's new chief executive, Euan Sutherland has indicated that he is not planning to sell mutual's other assets to other firms. Experts say that if he is able to secure a good value deal for the general insurance unit, he might be able to hold other units in thee company.