ANZ "is understood to prefer a complete divestment of its wealth and life insurance operations" the Financial Review reports today in its Street Talk column.A review, led by Alexis George, ANZ's head of wealth, may be concluded by August, the newspaper reports.ANZ's managing director, Shayne Elliott, speaking at the bank's results briefing in early May, said the division produced a return above its cost of capital but faced a number of challenges.In March the bank announced it would disband its global wealth division and align the distribution of wealth products with its retail and commercial banking businesses.The Australian private bank became the responsibility of the group executive Australia, Fred Ohlsson. ANZ-branded wealth distribution, including financial planning, moved into retail distribution.In New Zealand, wealth became part of an expanded retail, business banking and wealth division. In Asia, wealth was folded into the Asian retail business.The remaining insurance, superannuation and investment activities in Australia became a business called Australia Wealth. This encouraged speculation that the business would be put on the market.The wealth division made a cash profit of A$216 million for the six months to March 2016 - down one per cent on the previous corresponding period. In-force premiums fell four per cent and funds under management fell three per cent.The banks said in May that its funds management business was challenged by margin compression, lower net inflows and increased market volatility.It said there was a shift in investor preference towards low margin index funds and exchange traded funds.