Italy’s top insurer Generali (GASI.MI), opens new tab aims to reach a preliminary accord with Natixis Investment Managers to combine their asset management operations in order to submit the deal to its board on Jan. 20, two people close to the matter said.

Generali and Natixis have been in discussions over a tie-up that would create a major European fund manager, at a time when the industry is under pressure to scale up to protect profit margins and sustain rising technology investments.