Japanese insurance company Tokio Marine has hired investment banks to sell its South-East Asia life insurance business, reported Reuters, citing sources.
The insurer has selected Goldman Sachs and Jefferies to work on the sale of businesses worth $1bn.
According to one of the sources, the company could commence the sale process within the next two months.
As part of the divesture, Tokio Marine could sell life insurance operations in Indonesia, Malaysia, Singapore and Thailand, another source said.
The company is still discussing the sale plan and it is yet to be finalised.
Goldman Sachs, Jefferies, and Tokio Marine all declined to comment on the development.
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The proposed sale comes as Tokyo-headquartered Tokio Marine assesses its operations to increase profitability.
Tokio Marine has been involved in merger and acquisition activities, and one of its recent transactions involved the sale of Tokio Marine Highland’s US construction subsidiary to Intact Insurance Group.
Additionally, the business is considering organic growth.
The insurer expanded its Canadian operations by opening a new property and casualty insurance division in 2022.
Earlier this month, Tokio Marine Kiln, a speciality unit of Tokio Marine, set up a cyber & enterprise risk branch in a bid to expand in the cyber insurance space.
The unit will be engaged in offering speciality services in cyber, technology and intellectual property.
Announcing the launch of the new cyber unit, Tokio Marine Kiln head of cyber & enterprise risk Laila Khudairi said: “We have bold plans for Cyber and IP, and this change supports that. Within the fast-moving world of cyber, ransomware attacks and data breaches are once again rising in frequency, effectiveness, and complexity.
“We have been writing Cyber for almost two decades, and we continuously look to innovate and offer our clients cutting-edge tools and services to help pre-empt, and address, the threats that they face.”