SAO PAULO, Jan 30 (Reuters) - Brazilian insurance group

Porto Seguro is in talks with private equity funds to

possibly sell a minority stake in its health business, with

discussions focusing on the strategic advantages of potential

partners and valuation, two people familiar with the talks said.

Porto Seguro, which has not made a final decision about a

potential deal, is considering selling a part of the health

insurance division that would come with a seat on the board,

which would mean at least a 5% stake, one of the sources said.

In response to a report by Brazilian newspaper Valor

Economico about the talks, Porto said in a statement on

Wednesday that it is always open to discussing the interest of

potential investors, but no bids have been signed.

U.S.-based private equity firm Summit Partners is one of

several prominent investors in discussions with Porto Seguro,

due to its expertise in technology and artificial intelligence,

according to the sources.

Summit Partners did not immediately respond to a request for

comment.

In a note to clients, investment bank UBS BB said that a new

minority partner in Porto's health vertical, while not

essential, could accelerate expansion efforts.

Based on press reports, net income estimates and valuations

of other players in Brazil, UBS BB estimated the value of

Porto's health unit at up to 6.5 billion reais ($1.1 billion)