NKBM would not disclose who the bidders are, quoting non-disclosure agreements, but media reports suggest there are at least three: reinsurer Sava Re, asset management firm KD Group and Austrian insurer Grawe.

Sava Re confirmed it had submitted a bid while both KD Group and Grawe refused to comment.

NKBM expects to wrap up the sale by the end of the year. It will use the proceeds to improve its capital adequacy ratio.

Its Core Tier 1 capital ratio was 7.45% at the end of June, but the offloading of Zavarovalnica Maribor is expected to raise it above the required 9%.

NKBM posted a group pre-tax loss of EUR 34m in the first half of the year, with the profit before provisions and impairment losses standing at EUR 35.8m.

Zavarovalnica Maribor, Slovenia's no. 2 insurer, posted a net profit of EUR 10.5m for last year.