Bidders Emerge for AXA’s Singapore Unit

Three bidders have reportedly emerged as frontrunners for AXA’s business in Singapore after the French insurer first signaled a potential sale in August last year.

HSBC, Malayan Banking’s insurance joint venture Etiqa and an at least one Chinese firm are reportedly in the running, according to a «Bloomberg» report citing unnamed sources.

Etiqa was established in 2005 and provides general and life insurance solutions. It was founded as a merger between a Maybank-Ageas joint venture and Malaysia’s National Insurance.

HSBC also has an existing insurance business in Singapore and its chairman Mark Tucker recently called for accelerated expansion across Asia.

According to the report, expectations are for the sale to raise about $700 million amid AXA CEO Thomas Buberi’s attempt to shift focus to property and casualty insurance, evidenced by its $15.3 billion purchase of XL Group in 2008.

The three frontrunners will have a few weeks before submitting binding bids for AXA Singapore.

AXA’s Singapore unit offers life, property, and casualty insurance and it generated 615 million euros ($745 million) of revenue for 2019, according to its annual report.