NEW YORK (Bloomberg) ? Global Preferred Holdings Inc., the holding company of Global Preferred Re, said it?s in talks to sell the Bermuda-based life reinsurance business to a subsidiary of Aegon NV.

Following a sale of Global Preferred Re, the Duluth, Georgia- based company would liquidate its remaining assets and distribute the proceeds of the transaction minus liabilities to stockholders, it said in a statement distributed by Business Wire last week.

Global Preferred hopes to have an agreement with Aegon?s Western Reserve Life Assurance Co. of Ohio by the end of the third quarter, it said in the statement.

Closely held Global Preferred in April said it had hired Raymond James & Associates to look for a possible buyer.

In May of 2002, the company called off an initial public offering, citing market conditions at the time.

We are excited about the opportunities that a transaction with WRL could provide for our stockholders,? said Ed McKernan, president and CEO of Global Preferred.

?We are pleased to be having these discussions with WRL, given the strong relationships that have existed for years between our company, our stockholders and WRL. We look forward to pursuing these discussions in hopes of reaching a final transaction.?

?We see a transaction with Global Preferred as the natural progression of the strong, long-term relationships we have shared with Global Preferred and its stockholders,? said Jerry Vahl, President of Western Reserve Life.

?These discussions have been very productive and we are hopeful that they will lead us to a transaction that will be viewed favorably by all parties.?

As of March 31, 2004, Global Preferred Re reinsured over 275,000 life insurance policies, riders and annuity contracts, which accounted for life insurance policies with an aggregate face value of over $7.5 billion and aggregate annuity contract benefits of over $250 million.