Chubb is in advanced talks to form an insurance partnership with Hang Seng Bank, a Hong Kong-based subsidiary of HSBC Holdings, reported Bloomberg citing people familiar with the matter.
The two parties are hammering out the details of a deal that could be agreed over the coming weeks, the people said, asking not to be identified because the matter is private.
Chubb, based in Zurich, is poised to become Hang Seng Bank’s insurance partner after outbidding other insurers that had shown interest in the tie-up, the people said.
A deal would help the world’s largest publicly-traded property and casualty insurance company boost its presence in the Asian financial hub, the people said.
A representative for Hang Seng Bank declined to comment, while a representative for Chubb didn’t immediately respond to requests for comment.
Hang Seng Bank has been working with a financial adviser as it explores a so-called bancassurance partnership after its existing agreement with Australia’s QBE Insurance Group Ltd. expired, Bloomberg has reported.
Chubb completed its $5.36bn purchase of Cigna Corp’s life, accident and supplemental businesses in six markets in July. The acquisition by the US-founded firm was aimed at expanding its operations in the Asia Pacific.
Hang Seng Bank, founded in 1933, provides banking, investment and wealth management services for individuals and businesses, according to its website. It counts more than 3.5m customers. Beyond Hong Kong, the bank also has a presence in almost 20 major cities in mainland China, as well as in Macau, Singapore and Taipei. HSBC owns about 62% of Hang Seng Bank, according to data compiled by Bloomberg.