Allianz, the largest insurer in Europe, has just announced that it will be selling its South Korean life insurance business. Sources with a direct knowledge on the matter have shared that this decision comes as part of the company's global overhaul in a difficult low-interest rate environment.

Sources of the Wall Street Journal have reported that the South Korean asset is drawing in the interest of Chinese big names, much like those of Fosun International and Anbang Insurance Group. The sources share that these two companies are considering bidding for the insurance business. The asset, according to the source, is worth around $500 million. Reuters has also reported that a US-based insurer, Prudential Financial, and other domestic financial institutions in South Korea have also considering making a bid.

Since everything right now are still under confidential talks, the sources of these information declined to be named on the publication. A spokesman for Allianz declined to comment when asked whether or not the Korean operations were being offered for sale. In the same manner, Fosun, Anbang, and Prudential Financial declined to give a comment on the issue.

The planned sale of the insurance company comes after a number of other European financial players have cut back on their Asian markets. According to CEO Oliver Baete, this is one of the many steps they are taking to prepare when a "perfect storm" happens due to the low interest rates, weak economic growth, tighter regulation, and geopolitical risks.

Just last week, the German insurer missed the forecasts of analysts with a $7.3 billion net profit for last year. Baete partly blamed this on a $189 million goodwill writedown that they took as its Asian life operations in the fourth quarter.

In South Korea, Allianz has a large operation. The business has reported statutory premiums of $1.77 billion and operating loss of only $56 million in 2014.