Allianz and Sun Life Financial are considering making offers for HSBC’s Singapore-based insurance business, Bloomberg has reported.

The potential sale comes after HSBC announced it was assessing the future of this unit as part of a strategic review.

According to people familiar with the process, Japan’s Dai-ichi Life Holdings and Nippon Life Insurance are also potential bidders for HSBC Life Singapore.

The sources said initial offers could be submitted in the coming weeks, following the start of a formal sale process earlier this month.

However, deliberations are under way and the outcome remains uncertain, they added.

Other interested parties may also enter the process at a later stage.

Allianz, Dai-ichi Life and Nippon Life declined to comment on the matter.

Sun Life responded that it constantly evaluates options that align with its business goals but did not provide specifics.

An HSBC spokesperson stated that no decision has been made regarding its Singapore insurance unit, which remains under review.

HSBC launched a review of its insurance arm in Singapore in January, linked to wider global restructuring.

At that time, the bank described Singapore as a priority market and said it was open to different options for the business’ future.

Sources have estimated that the value of HSBC Life Singapore could exceed $1bn.

Reuters previously reported that HSBC had begun reaching out to possible buyers including Dai-ichi Life and Nippon Life.

HSBC acquired AXA Singapore for $529m (£398.75m) four years ago during Noel Quinn’s tenure as CEO. His successor, Georges Elhedery, has since overseen further reductions in management and certain business lines.

Last month, Chesnara finalised the purchase of HSBC Life (UK) for £260m.