HSBC in launch of non-life arm sale

HSBC, Europe’s biggest bank with a large presence across Asia, had sent out an information memorandum to potential buyers, with first round bids due by mid-October, a source said.

HSBC operates non-life insurance businesses in Britain, France, Hong Kong and Singa- pore.

The Hong Kong and Singapore operations alone bring about $400m in annual premiums, the source said.

HSBC’s non-life insurance businesses earned profit before tax of about $1bn in 2010, according to a presentation made by HSBC in June.

“We do not comment on market rumours or speculation,” a Hong Kong-based HSBC spokeswoman said.

The sources declined to be identified as the sale process was not public.

HSBC’s 16 per cent stake in Ping An Insurance and 18 per cent stake in Bao Vietnam, a domestic financial institution, were not part of the sale, the source said.

HSBC’s investment banking arm was running the sale process, the source added.

In May, HSBC announced plans to sell non-core businesses, which included shrinking its network of 475 US branches to focus on the international business of US clients and the sale of several European retail banking businesses including those in Poland and Russia.