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Solar Life Monetary Inc. is near sealing an insurance coverage partnership with Hong Kong banking group Dah Sing Monetary Holdings Ltd., in response to folks aware of the matter.
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The Canadian insurer has emerged because the likeliest associate for Dah Sing after beating out rival bidders, the folks mentioned, asking to not be recognized as a result of the matter is non-public. The so-called bancassurance settlement might be valued at about US$200 million, the folks mentioned.
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Solar Life and Dah Sing are hammering out the small print of a transaction that might be introduced as early as this week, the folks mentioned. Representatives for Dah Sing and Solar Life declined to remark.
Dah Sing has been working with an adviser to pursue a bancassurance partnership after it terminated an settlement with Tahoe Life Insurance coverage Co., Bloomberg Information reported in August. Solar Life, Manulife Monetary Corp. and carefully held FTLife Insurance coverage Co. have been amongst companies contemplating bids, folks aware of the matter have mentioned.
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A bancassurance partnership is “an association between a financial institution and an insurance coverage firm permitting the insurance coverage firm to promote its merchandise to the financial institution’s consumer base,”
in response to Investopedia.com.
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A deal would beef up Solar Life’s presence in Hong Kong, the place the federal government has lifted a lot of the COVID restrictions and reopened its borders with China. In November, Solar Life chief govt Kevin Pressure mentioned insurance coverage gross sales in Hong Kong might take longer to rebound than in different elements of Asia attributable to a sluggish return of tourists.
Dah Sing gives banking, insurance coverage and different monetary companies in Hong Kong, Macau and mainland China, in response to its web site. In July, Japan’s Norinchukin Financial institution purchased a stake of about 10 per cent in Dah Sing from Mitsubishi UFJ Monetary Group as a part of a enterprise tie-up. Shares of Dah Sing Monetary have risen roughly 14 per cent this yr, valuing the agency at US$839 million.
“A bancassurance partnership with Dah Sing is compelling due to its progress potential in Macau,” Bloomberg Intelligence analyst Steven Lam wrote in a September report.
Bloomberg.com
