Chubb in advanced bancassurance talks with Hang Seng Bank in Hong Kong: Sources

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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 on the details of a transaction that could be agreed in the coming weeks, the people said, asking not to be identified as the matter is private. Zurich-based Chubb is on the brink of becoming Hang Seng Bank’s insurance partner after outbidding other insurers that had expressed an interest in the partnership, the people said.

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A deal would help the world’s largest publicly traded real estate and casualty insurance company increase its presence in the Asian financial center, the people said. Talks are ongoing and could still fail, people said.

A representative from Hang Seng Bank declined to comment, while a representative from Chubb did not immediately respond to requests for comment.

Hang Seng Bank has teamed up with a financial advisor to investigate a so-called bancassurance partnership after the existing agreement with QBE Insurance Group Ltd. in Australia has ended, Bloomberg News reports. Under such an arrangement, an insurer typically pays an amount in advance to sell its products in the bank’s branches.

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Chubb completed the purchase of Cigna Corp’s life insurance, casualty and ancillary businesses in six locations in July. completed for $5.36 billion. The acquisition by the US-based company was intended to expand its operations in Asia-Pacific.

Founded in 1933, Hang Seng Bank provides banking, investment and wealth management services for individuals and businesses, according to its website. It has more than 3.5 million customers. Outside of 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 collected by Bloomberg.

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Photo: Signage for Hang Seng Bank Ltd. will be displayed outside the bank’s headquarters in Hong Kong, China, on Monday, February 22, 2016. Photo credit: Xaume Olleros/Bloomberg

Copyright 2022 Bloomberg.

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