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The German insurer is understood to have been in discussions about an offer for several months

One of Britain's biggest breakdown providers could be sold in a blockbuster £5billion deal as takeover interest mounts.

The AA has attracted the attention of German insurance giant Allianz, which is considering a potential swoop for the motoring group.

Allianz is one of a small number of buyers that have been holding talks with advisers to the AA about a possible deal, Sky News reports.

The German insurer, which has a market value of more than £144billion, is understood to have been in discussions about an offer for several months.

However, talks remain uncertain and there is no guarantee that a deal will go ahead.

At least one other potential buyer has also been circling the AA in recent weeks, while private equity firm EQT explored a possible deal earlier this year.

The AA, which serves more than 16 million customers across Britain, is currently owned by private equity firms TowerBrook Capital Partners, Warburg Pincus and Stonepeak.

Last year, the three owners appointed JP Morgan and Rothschild to explore the company's strategic options.

The AA's owners have been exploring both a sale and a potential return to the London Stock Exchange throughout 2026.

If a buyer cannot be found, a stock market flotation remains an option, with banks and advisers already lined up to support a potential listing in 2027.

Stonepeak invested £450million in the AA in July 2024 through a combination of common and preferred equity. The deal valued the business at around £4billion at the time.

The AA's financial performance has since strengthened. Revenue rose from £1.45billion in 2025 to £1.505billion last year, while adjusted earnings increased from £450million to £481million. Its debt has also been steadily falling.

Allianz already has a significant presence in Britain, having owned LV='s general insurance business for seven years. It also controls pet insurance provider Petplan.

The German insurer became the title sponsor of Twickenham, the home of English rugby union, in 2024 and last month agreed a £1.5billion deal to buy HSBC's insurance operations in Singapore.

Buying the AA would further expand Allianz's presence in Britain by adding a major roadside recovery operation and insurance business to its portfolio.

The AA is not the only major motoring organisation considering its future. Rival RAC is also exploring its options, although it is understood to be primarily focused on a stock market listing rather than a sale.

The AA has changed hands several times over the past three decades. British Gas owner Centrica bought the company for £1.1billion in 1999 before private equity firms CVC Capital Partners and Permira acquired it for £1.75billion five years later.

It returned to the London Stock Exchange in 2014, but was taken private again nearly seven years later after its shares struggled.

Under owners TowerBrook and Warburg Pincus, the AA appointed Rick Haythornthwaite as chairman and Jakob Pfaudler as chief executive to oversee a long-term turnaround.

Founded in 1905 by four motoring enthusiasts, the AA now has 2,700 patrols across the country and attended 3.5 million breakdowns last year.

It also operates Britain's largest driving school business through the AA and BSM brands.