The talks are being led by Blackstone's $3 billion "tactical opportunities" fund, the newspaper said, citing people familiar with the matter. (r.reuters.com/kez42v)
Reuters reported earlier this month that Goldman Sachs plans to sell a majority stake in its European insurance business over the next year.
Bankers estimate the Rothesay unit's value at between 750 million and 950 million pounds ($1.17 billion-$1.48 billion), the daily reported, adding that the sale process does not involve a formal auction.
Representatives of Blackstone and Goldman Sachs were not immediately available for comment.
($1 = 0.6405 British pounds)
Reporting By Lehar Maan in Bangalore; Editing by Ken Wills