Zurich is reportedly exploring plans to sell its Hong Kong and Singapore operations amid falling revenue in Asia.
The Swiss insurer has discussed the supposed plans with some investment banks but no deal has been made, according to a report by
Reuters, which cited unnamed sources familiar with the matter.
The report said a spokesman for Zurich, which is facing declining revenue in general insurance and slow growth in Europe, refused to comment on the plans.
Zurich started reviewing its Asian businesses in September 2015, a month after the massive explosions at the Chinese port of Tianjin caused the company around US$275 million in losses. It also stopped accepting new life policy applications in Singapore last year.
The insurer’s partial exit from Asia will need the blessing of its incoming boss, former
Generali CEO Mario Greco.
"It's up to Greco to take the final decision on Asia," one of the
Reuters sources said.
The sources also claimed that Zurich will focus on China, Indonesia, Japan, Malaysia, Australia, New Zealand and Taiwan if the insurer does sell its Hong Kong and Singapore businesses.
The planned sale comes after Zurich’s restructured operations in Australia,
which could lead to ‘potential’ job losses as the
insurer exited one key market.
Europe’s fifth largest insurer also said on 19 February that it was assessing plans to sell its business in South Africa.
