Chubb Ltd. is in advanced talks to form an insurance partnership with Hang Seng Bank Ltd., a Hong Kong-based lender majority-owned by HSBC Holdings Plc, according to people familiar with the matter.
The parties are working out details of a deal that could close over the next few weeks, the sources said, asking not to be identified as the matter is private. Zurich-based Chubb is set to become Hang Seng Bank’s insurance partner after outbidding other insurers that had expressed interest in the tie-up, the sources said.
A deal would help the world’s largest publicly traded P&C insurance company boost its presence in the Asian financial hub, the sources said. The talks are ongoing and could still fail, the people said.
A representative for Hang Seng Bank declined to comment, while a representative for Chubb did not immediately respond to requests for comment.
Hang Seng Bank has been working with a financial adviser as it explores a so-called bancassurance partnership following the expiration of its existing deal with QBE Insurance Group Ltd. in Australia, Bloomberg News reported. Under such an arrangement, an insurer typically pays an upfront fee to sell its products at bank branches.
Chubb has completed its $5.36 billion purchase of Cigna Corp’s life, accident and supplemental businesses. at six locations in July. The acquisition by the US-based company was aimed at expanding its operations in Asia-Pacific.
Hang Seng Bank, founded in 1933, provides banking, investment and wealth management services to individuals and businesses, according to its website. It has over 3.5 million customers. Beyond Hong Kong, the bank also has a presence in nearly 20 major cities in mainland China, as well as Macau, Singapore and Taipei. HSBC owns about 62% of Hang Seng Bank, according to data compiled by Bloomberg.
Photo: Signage of Hang Seng Bank Ltd. is displayed outside the bank’s headquarters in Hong Kong, China, Monday, February 22, 2016. Photo credit: Xaume Olleros/Bloomberg
Copyright 2023 Bloomberg.
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