British financial giant HSBC is mulling to bid for the Asian insurance business of Aviva, which according to media reports is up for sale.
Undisclosed sources familiar with the development told Bloomberg that HSBC is in the early stages of weighing an offer for at least part of Aviva’s Asian business.
Apart from HSBC, other interested companies will also bid for the Aviva assets, the sources told the publication.
The sources further cautioned that HSBC has not been taken any final decisions and there is no certainty the proposed deal will materialise.
The proposed deal will help the London-based bank to diversify its revenues channels in the region.
It will also strengthen HSBC’s insurance operations in Singapore along with other parts of Southeast Asia.
The sale of Asian insurance business is part of Aviva’s turnaround plan.
In Asia, Aviva has operations in India, Indonesia, China, Hong Kong, Singapore and Vietnam.
After appointing Maurice Tulloch as CEO in March, the British insurer is likely to carry out an overhaul of the organisation.
In June, the insurer said that it will cut around 1,800 jobs over the next three years as part of restructuring of UK operations, aiming to save $362.82m in operational expenses per annum.
In May, Aviva was reportedly planning a demerger to split its insurance business in the UK to make it more agile, competitive and customer-focused.