Direct Line said to be considering £400m bid for L&G division

(Sharecast News) - FTSE 100 insurer Direct Line Insurance Group is said to be mulling a £400m move on Legal & General's general insurance arm. Direct Line, which specialises in car and home insurance and also owns the Green Flag brand, is said to have signalled an interest in the buying the arm, according to reports.Neither insurer has commented on the claims. However, Sky News said that Direct Line's interest was at an early stage and that a number of other insurance and investment firms were considering a possible bid.Life insurer Legal & General has not officially put the home and contents cover division up for sale but it is understood that chief executive Nigel Wilson views it as non-core, according to Sky.Last month, Direct Line reported a drop in premium income and policies in the third quarter, which it blamed on a competitive market.In August, Legal & General posted above-forecast operating profits of £1.06bn for its insurance and asset management arm, but blamed volatile global financial markets for a weakened investment performance.