Germany-based insurance giant Allianz, Japanese insurers Nippon Life along with MS&AD Insurance are competing with other rivals to acquire Aviva’s Singapore and Vietnam businesses.

Canada-based Sun Life Financial as well as Manulife Financial are also in the fray. These firms are vying with nearly half a dozen bidders competing for the businesses; Reuters reported quoting sources familiar with the development.

Due to faster economic growth and low insurance penetration, Asia is attracting a number of insurers. According to a Swiss Re Institute report, the regional Asian market is valued at $1.7 trillion in premiums. By 2029, the region will contribute for 42% of premiums across the globe.

The combined value for the Singaporean and Vietnamese businesses is expected to be between $2bn and $2.5bn, the sources told the publication. However, they added that the negotiation is at an early stage and terms might change.

The first round of formal bidding, which Aviva accepted last week, is expected to be finalised by the end of this year.

Last month, Reuters reported that Aviva is planning to divest its insurance operations in Asia to focus on profitable markets, pending on the outcome of a review of the Asian business.

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In the same month, Bloomberg reported that HSBC is mulling to bid for the Asian insurance business of Aviva, which according to media reports is up for sale.

The sale of Asian insurance business is part of Aviva’s turnaround plan.

In Asia, Aviva has insurance operations in India, Indonesia, China, Hong Kong, Singapore and Vietnam.

After appointing Maurice Tulloch as CEO in March, the British insurer is likely to carry out an overhaul of the organisation.

In June, the insurer said that it will cut around 1,800 jobs over the next three years as part of restructuring of UK operations, aiming to save $362.82m in operational expenses per annum.

In May, Aviva was reportedly planning a demerger to split its insurance business in the UK to make it more agile, competitive and customer-focused.