The Italian insurance firm Fondiaria-SAI is in exclusive talks to sell its Swiss private bank, Banca Gesfid, to Switzerland's PKB Privatbank to raise capital, WealthBriefing can confirm.

Luca Soncini, PKB Privatbank’s co-director general, told the Italian publication Il Sole 24 Ore that exclusive talks are taking place between the two firms, and that such deals are valued at approximately 1 per cent of assets plus net cash, a spokesperson for the firm confirmed.

Gesfid is reported to manage around SFr1.7 billion (around $1.7 billion) of assets.

PKB has operations in Switzerland and Antigua, and wants to expand in Europe, including Italy.

Fondiaria-SAI, meanwhile, is divesting non-core assets to replenish its weak solvency ratio, Reuters reports.