In a deal that could be worth up to $350 million, Singapore's largest lender, DBS Group, is said to be readying plans to invite bids from insurers to sell general insurance products across Southeast Asia.
As the numbers of Southeast Asia's middle class continue to expand the region has become a competitive hinterland for insurance companies battling their own stagnant domestic markets.
With its coverage across Asia boosted after last years acquisition of the ANZ retail and wealth units, a tie-in with the DBS branch network is a tantalizing prize.
Bidding to Open Soon
«Reuters reports» that the bank will seek bids from insurers as soon as next month, three sources told the news agency. They declined to be identified as the news is not public.
Asia in general and the ASEAN countries in particular are attractive markets for insurers who see huge potential for all of their insurance products.
The Singaporean bank recently signed a 15-year regional distribution agreement with Manulife Financial Asia to sell life insurance in four mutually significant markets, namely Singapore, Hong Kong, China and Indonesia.
