U.S. insurance giant MetLife is looking to divest its Hong Kong unit, a move that may generate as much as $600 million for the firm.
The New York-based insurer is about to send out information on its Hong Kong business to interested parties in coming weeks weeks, according to a «Bloomberg» report. The sale of the Metlife unit may prompt interest from Chinese rivals who have been snapping up life insurers and wealth managers in Hong Kong even as the regulators in China continue to crack down on purchases of investment-type products.
Last year saw a number of insurance deals in the city. Alibaba-backed Yunfeng Financial Group for instance acquired Mass Mutual's business in Asia from its U.S.-based parent.
Sign of the Times
A wave of mergers and acquisitions swept across Asia Pacific in the insurance industry over the past couple of years a theme likely to continue as rising costs and ubiquitous financial technology offerings carve out more market share.
The Commonwealth Bank of Australia sold its Australian and New Zealand life insurance businesses to AIA Group for $3.8 billion in September. That deal was followed by another billion-dollar-transaction that saw Zurich Insurance Group nab ANZ’s Australian life insurance business for A$2.85 billion.
