The 174-year old firm said on Thursday that discussions with Allianz were ongoing but there was no certainty that a deal would be agreed.
The statement came in response to a Sky News report that the two companies were close to an agreement valuing LV='s general insurance division at approximately 1 billion pounds ($1.32 billion) with an announcement expected on Aug. 4.
A source close to the matter told Reuters that negotiations were about to be finalised and the deal was expected by the end of this week.
Bournemouth-based LV= has nearly six million British customers and offers a range of products from car, home, travel and life insurance to investment and retirement solutions.
LV= also ranks as one of one of Britain's biggest financial services mutuals, with about 5,700 employees.
(Reporting By Pamela Barbaglia; Editing by Rachel Armstrong)