Patrick Snowball, former head of Aviva’s UK arm, is eyeing Direct Line amid continued doubts about Royal Bank of Scotland’s ability to offload its insurance businesses.

Mr Snowball has been talking to private equity groups, including BC Partners, which has a possible interest in Royal Bank of Scotland Insurance, which includes Direct Line and Churchill.

The situation is complicated by the fact RBS is in advanced talks with the private equity group CVC, which is working with the reinsurer Swiss Re about CVC buying a 51 per cent stake in the business – a deal that could value RBSI at about £6bn.

A person familiar with the situation said: “It would be premature to talk of an imminent bid for RBSI by BC Partners and Snowball.”

Although CVC is in pole position, recent reports have suggested that it could be looking for a price below the implied £6bn originally suggested. Allstate, the US insurer, also remains in the race, with its hand strengthened by the sharp fall in the pound against the dollar.

Allstate had been the only serious bidder, in part because RBS initially shut out private equity groups from the auction over concerns that they would not be able to raise the necessary finance amid the collapse of global credit markets.

However, the bank was forced to let buyout firms into the auction after a lack of competition in the process created by strategic bidders – including Warren Buffett’s Berkshire Hathaway Group, Zurich Financial Services and Generali of Italy – walking away over the summer.

Mr Snowball was at the helm of Aviva’s non-life insurance operation, which trades under the Norwich Union brand.

He quit Aviva after he lost out on the group chief executive’s job. He joined Towergate, the privately owned insurance broker, where he was seen as being a conduit to private equity involvement. However, he stepped down from Towergate’s board earlier this year after a stock market flotation was postponed.

He remains chairman of Towergate Financial Services, which is consolidating the regional independent financial adviser market.

BC Partners and Mr Snowball declined to comment.