MILAN (Reuters) - Italian insurance group Unipol (>> Unipol Gruppo Finanziario SpA) said on Tuesday it had agreed to proceed with exclusive talks with Germany's Allianz to sell assets carrying premiums worth around 1.2 billion euros 989.49 million pounds.

In a statement, Unipol and its main operating unit UnipolSai (>> UnipolSai Assicurazioni SpA), said the agreement would be formally completed by March 15.

The assets belong to Unipol's Milano Assicurazioni unit.

Unipol agreed to buy its troubled rival Fondiaria-SAI in 2012 in a complex rescue deal that created Italy's second-biggest insurer.

To clear the deal, which was finalised in December, the Italian antitrust authority has imposed the sale of a portfolio of assets with premiums worth around 1.7 billion euros.

(Reporting by Stephen Jewkes, editing by Isla Binnie)