HSBC plc, the largest bank of Europe has said that it has decided to sell its 26% stake in a life insurance joint venture, which it runs in association with two Indian state-run banks, as it sheds noncore businesses globally.
If sources are to be believed, Canada's Manulife Financial Corp and the Indian unit of Standard Life are among the suitors to place first-round bids for HSBC's stake Indian life insurance business, which is estimated to be valued at around $200 million. Whoever buys HSBC's stake will get immediate access to about 5,500 branches of the two state-run banks. Bancassurance - an arrangement in which a bank and an insurance firm tie up so that the insurer can sell its products to the bank's customers — is emerging as a key tool to sell insurance products across Asia as the life insurance industry matures in the region.
HDFC Life, a joint venture between India's HDFC Ltd and British insurer Standard Life, Birla Sun Life, a venture between Indian conglomerate Aditya Birla Group and Canada's Sun Life and ICICI Prudential Life, a joint venture between India's ICICI Bank and UK's Prudential are among the firms bidding for the stake in the first round.
According to the sources close to the development, HSBC's partners in India, Canara Bank Ltd and Oriental Bank of Commerce might also sell their stake in the insurance joint venture. Recently, New York Life exited its joint venture with Max Life; and ING left the Indian market by selling its full stake of 26% to Exide.
If sources are to be believed, Canada's Manulife Financial Corp and the Indian unit of Standard Life are among the suitors to place first-round bids for HSBC's stake Indian life insurance business, which is estimated to be valued at around $200 million. Whoever buys HSBC's stake will get immediate access to about 5,500 branches of the two state-run banks. Bancassurance - an arrangement in which a bank and an insurance firm tie up so that the insurer can sell its products to the bank's customers — is emerging as a key tool to sell insurance products across Asia as the life insurance industry matures in the region.
HDFC Life, a joint venture between India's HDFC Ltd and British insurer Standard Life, Birla Sun Life, a venture between Indian conglomerate Aditya Birla Group and Canada's Sun Life and ICICI Prudential Life, a joint venture between India's ICICI Bank and UK's Prudential are among the firms bidding for the stake in the first round.
According to the sources close to the development, HSBC's partners in India, Canara Bank Ltd and Oriental Bank of Commerce might also sell their stake in the insurance joint venture. Recently, New York Life exited its joint venture with Max Life; and ING left the Indian market by selling its full stake of 26% to Exide.
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