AXA Singapore - Up For Sale

HSBC Holdings Plc and Malayan Banking Bhd’s insurance venture, Etiqa, are among shortlisted bidders for Axa SA’s business in Singapore, which could raise about US$700 million in a sale, according to people familiar with the matter.

The British bank and Etiqa, majority owned by a Maybank joint venture, have proceeded into the next round with a few weeks to go before a deadline for submitting binding bids. At least one Chinese firm also among those invited to lodge offers.

Axa has been considering a sale of its Singapore business as it seeks to raise funds divesting peripheral operations. Chief Executive Officer Thomas Buberl is trying to shift Axa’s focus on property and casualty insurance following its $15.3 billion purchase of XL Group Ltd. in 2018. Since then, the CEO has been reviewing options for smaller businesses across the world, including in the Middle East, to help pay for the XL deal.

The Singapore unit, which offers life and property and casualty insurance, generated 615 million euros (US$745 million) of revenue in 2019, according to Axa’s annual report. It also provides services in savings and investments.