Several people familiar with the matter said that Deutsche Bank is considering the possibility of selling its insurance unit Abbey Life, according to a report from Bloomberg.
The possible sale is part of the company's plan to restructure itself and restore the company back to profitability.
Bloomberg adds that sources say the decision to sell the insurance unit is dependent on the outcome of the Deutsche Bank's discussions with regulators regarding the unit's capital base.
A source said that the sale of Abbey Life could fetch as much as $3 billion pounds, or $4.6 billion.
One of the sources told Bloomberg that Deutsche Bank is waiting for the European Central Bank to issue how much capital it will require lenders to hold against the risk from their insurance units.
Regulators usually require banks and insurers to have large reserves to weather losses and avoid a repeat of the 2008 financial crisis.
Christian Hamann, an analyst at Hamburger Sparkasse, told Bloomberg that it makes sense for Deutsche Bank to consider a sale.
"It looks like it is going to be pretty capital-intensive to hold a stake like this, so it makes sense," he said. "Theoretically, quite a few people would be interested in this."
The Wall Street Journal adds that selling Abbey Life, which helps pension funds offset the risk of members living longer than expected, is a logical step to take.
The strategy of John Cryan, the Co-CEO of Deutsche Bank, has been to focus on the core business of the bank.
The Wall Street Journal adds that, though the insurance industry is a lucrative business, it also has its risks.
Deutsche Bank's 2014 earnings were affected by unfavorable market movements within the insurance portfolio.
The Wall Street Journal adds that the proceeds from the sale of Abbey Life will help Deutsche Bank.
The bank has been short of money, even after it eliminated its dividend.
