People familiar with the situation told Bloomberg that Chubb is in advanced talks to develop an insurance arrangement with Hang Seng Bank, a Hong Kong-based affiliate of HSBC Holdings.
The parties are negotiating the terms of a settlement that might be reached in the next weeks, according to people who requested anonymity because the topic is confidential.
Chubb, headquartered in Zurich, is expected to become Hang Seng Bank's insurance partner after outbidding other insurers interested in the partnership, according to the sources.
People say that a transaction would allow the world's largest publicly traded property and liability insurer expand its foothold in the Asian financial hub.
A Hang Seng Bank spokesperson declined to comment, while a Chubb representative did not immediately reply to requests for comment.
Bloomberg stated that Hang Seng Bank has been working with a financial consultant to pursue a so-called bancassurance relationship following the expiration of its deal with Australia's QBE Insurance Group Ltd.
In July, Chubb acquired the life, accident, and supplemental operations in six countries for $5.36 billion. The acquisition aims to grow the US-based company's activities in the Asia-Pacific region.
According to its website, Hang Seng Bank, founded in 1933, provides banking, investment, and wealth management services to individuals and corporations. It has more than 3.5 million customers. In addition to Hong Kong, the bank has a presence in nearly 20 major cities in mainland China, Macau, Singapore, and Taiwan. Bloomberg's data indicates that HSBC controls around 62% of Hang Seng Bank.
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