Aetna Considering Selling Troubled Unit

Aetna Life & Casualty Co. is considering selling a portion of its troubled property and casualty unit in its latest move to cut costs, informed sources said.

The largest publicly traded U.S. life insurer is talking with New York buyout firm Kohlberg Kravis Roberts & Co. about selling a stake of as much as 20 percent for $400 million, the people said, and could spin off the remainder to shareholders.

The preliminary talks come as Aetna puts more emphasis on its health division and jettisons less profitable businesses such as property and casualty and some financial services.

Aetna and Kohlberg Kravis declined to comment.