Property and casualty insurance giant Chubb is in advanced talks to form a bancassurance partnership with Hang Seng Bank, Bloomberg reported citing unnamed sources.
The firms are working out details of the deal that could materialise over the coming weeks, the sources said.
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Hang Seng Bank is a Hong Kong-based bank whose majority owner is HSBC.
According to sources, Chubb has managed to outbid others in the race to become Hang Seng Bank’s insurance partner.
The deal is aimed at helping Chubb bolster its operations in the financial hub of Asia, the sources said, adding that the talks are still ongoing and the deal may fall apart.
According to Bloomberg, the Hong Kong-based bank has been working with financial advisers as it searches for new bancassurance opportunities after its agreement with Australia-based QBE Insurance Group expired.
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By GlobalDataFounded in 1933, Hang Seng Bank provides banking, wealth management and investment services to individuals and businesses, according to its website.
Other than Hong Kong, where it serves over 3.5 million customers, the lender has operations in 20 major cities in mainland China, has branches in Macau and Singapore, and a representative office in Taipei.
The news comes after Chubb completed the acquisition of Cigna’s life and non-life insurance businesses in six Asia-Pacific locations in a deal valued at $5.36bn.
The deal covers Cigna’s accident and health (A&H) and life business in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia.
