in talks to sell its property-casualty insurance business to Bermuda insurer ACE Ltd. in a deal that could be worth as much as $3 billion, according to people familiar with the situation.

CIGNA and ACE both declined comment yesterday. But sources said CIGNA was holding exclusive talks to sell its domestic and international property-casualty insurance business to ACE under an agreement that runs through the end of the year.

One source said a deal could be announced as early as this week, but other sources said they believe it could be another week or two before a deal is announced and said those talks still could break down.

However, sources said, other parties also have expressed interest in the CIGNA business. Other potential buyers could include another Bermuda insurer, Exel Ltd., as well as French insurer AXA, German insurer Allianz AG and US insurer American International Group Inc., the sources said.

Exel, AXA, Allianz and AIG were not immediately available for comment. CIGNA's long-expected move to exit the property-casualty insurance business comes as the entire industry braces for another year of slow growth and poor returns, analysts said. Philadelphia-based CIGNA restructured its domestic property-casualty insurance business several years ago in a controversial move to separate its strong ongoing commercial business from its discontinued asbestos and environmental business.

The company moved the discontinued business into a separate unit while strengthening reserves for future claims. Those reserves, analysts said, may make an attractive asset for one of the insurers based in tax-friendly Bermuda.

Sanford C. Bernstein analyst Weston Hicks valued CIGNA's domestic business at about $1.5 billion and the international business at about $1 billion. But another industry source put book value for CIGNA's domestic business at about $1 billion and said he doubted the business would command much of a premium to book.

For acquisition-minded ACE, the CIGNA business also would further expand its foothold in the United States and internationally. ACE earlier this year acquired Westchester Specialty, a specialty commercial property and umbrella liability insurer from Xerox Corp. for about $338 million. ACE also this year acquired property-catastrophe insurer CAT Ltd. for $711 million and Tarquin, a holding company for a Lloyd's managing agency and corporate capital for about $503 million.

Meanwhile, CIGNA has turned its attention in the last few years to the health insurance and retirement savings businesses. From CIGNA's perspective, "it's a question of focus,'' said Larry Mayewski, senior vice president for rating agency A.M. Best. "It would not be a surprise if they refocused or focused solely in those areas,'' he said, referring to health and retirement savings.