Insurer Aviva said on Sunday it was continuing with talks on the sale of its stake in a Taiwan life insurance joint venture, and was making progress.

Sources with direct knowledge of the matter had told Reuters on Friday that the company had put aside for the time being a plan to sell down its stake due to opposition from Taiwan's regulators. The sources said the plan had not been abandoned.

Aviva denied that the plan had been put aside and that there was a lack of progress.

Aviva is in on-going discussions with all relevant parties about exiting the Taiwan market and is making progress in doing so, said Simon Machell, chief executive of Aviva Asia, in an emailed statement.

Aviva was initially denied permission in 2010 by Taiwan's financial regulator, the Financial Supervisory Commission (FSC), to sell its entire 49 percent stake in the joint venture with local bank First Financial <2892.TW>.

It then submitted a new plan last year to sell 40 percent of the stake in two stages and keep 9 percent.

(Reporting by Jonathan Standing; Editing by Ron Popeski)