HSBC Considers Selling Regional Units Of General Insurance -Source
October 04 2011 - 10:54AM
Dow Jones News
HSBC Holdings PLC (HBC) is open to selling the regional units of
its general insurance business separately as an alternative to the
global business as a whole, a person familiar with the situation
told Dow Jones Newswires Tuesday.
The auction, which is being run out of Hong Kong, is part of the
bank's strategy to slash costs, unload businesses and retreat from
retail banking in markets where it doesn't have scale. The new plan
was set out by HSBC Chief Executive Stuart Gulliver in May as the
finance giant aims to convince investors the bank can make strong
returns in tough regulatory and economic conditions that have
dragged on its profit.
The bank has approached several potential buyers of the business
including France's AXA SA (CS.FR), Germany's Allianz SE (ALV.XE),
Switzerland's Zurich Financial Services AG (ZURN.VX), Australia's
QBE Insurance Group Ltd. (QBE.AU) and Japanese insurers MSIG and
MS&AD Insurance Group Holdings (8725.TO), according to
international press reports.
HSBC has 100%-owned general insurance manufacturing operations
in France, Hong Kong, Singapore, Argentina, Mexico, and Panama.
Many of these are part of companies that also manufacture life
insurance or have other interests.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241;
marietta.cauchi@dowjones.com