FWD Group, a Hong Kong-based diversified conglomerate, is reportedly is in advanced negotiations to acquire the MetLife insurance business in Hong Kong.

Sources familiar with the development told Bloomberg the companies could reach an agreement in the next few weeks.

The proposed transaction, if materialised, is expected to value MetLife Hong Kong at less than $400m. The deal will strengthen FWD’s footprint in the region, the sources told the publication.

At this value, MetLife would offload the asset for less than its $400m embedded value, a measure of the value of its insurance contracts.

Talks are currently under progress; however, there is no certainty that the deal could be announced. It could still fall apart, the people told the publication.

FWD has been gradually expanding its presence in Asia Pacific region. In October last year, the company agreed to acquire control of Commonwealth Bank of Australia’s life insurance arm in Indonesia.

In 2017, FWD snapped up American International Group’s life insurance operations in Japan. Earlier, it also acquired insurance companies in Singapore and Vietnam.

MetLife’s business in Asia witnessed adjusted earnings increase of 9% during the first quarter backed by growth in South Korean and Chinese markets.

MetLife also has presence in India, Malaysia, Nepal, Australia, Bangladesh and Vietnam.