Atlas Merchant Capital LLC, the investment firm led by former Barclays Plc Chief Executive Officer Bob Diamond, is in advanced talks to acquire a Hartford Financial Services Group Inc annuity run-off business for between $3 billion and $3.5 billion, people familiar with the matter said on Thursday.

Divesting the unit, dubbed Talcott Resolution, would help Hartford recycle capital, allowing it to shed a business that no longer writes new contracts and focus on more profitable, non-life insurance parts of its operations.

Atlas has prevailed in an auction for Talcott Resolution, two sources said. While there is no certainty that the negotiations will be successful, a deal could come as early as next month, the sources added, asking not to be identified because the discussions are confidential.