Fosun International Ltd, the investment arm of China's biggest closely held conglomerate, is in talks to acquire the US life insurance arm of Swiss Re Ltd, people with knowledge of the matter said.

Fosun is seeking to buy Aurora National Life Assurance Co for $400 million to $500 million, said the people, who asked not to be identified because the matter is private. A deal has not been reached and the talks could still fall through, said the sources.

Zurich-based Swiss Re began working with Barclays Plc last year to sell Aurora, a life insurance and annuity provider based in Hartford, Connecticut, the sources said. Wilton Re Holdings Ltd, the Bermuda-based reinsurer backed by Canada Pension Plan Investment Board, had also expressed interest in Aurora, one person said.