HSBC Considers Selling Regional Units Of General Insurance -Source

HSBC Holdings PLC (HBC) is open to selling the regional units of its general insurance business separately as an alternative to the global business as a whole, a person familiar with the situation told Dow Jones Newswires Tuesday.

The auction, which is being run out of Hong Kong, is part of the bank's strategy to slash costs, unload businesses and retreat from retail banking in markets where it doesn't have scale. The new plan was set out by HSBC Chief Executive Stuart Gulliver in May as the finance giant aims to convince investors the bank can make strong returns in tough regulatory and economic conditions that have dragged on its profit.

The bank has approached several potential buyers of the business including France's AXA SA (CS.FR), Germany's Allianz SE (ALV.XE), Switzerland's Zurich Financial Services AG (ZURN.VX), Australia's QBE Insurance Group Ltd. (QBE.AU) and Japanese insurers MSIG and MS&AD Insurance Group Holdings (8725.TO), according to international press reports.

HSBC has 100%-owned general insurance manufacturing operations in France, Hong Kong, Singapore, Argentina, Mexico, and Panama. Many of these are part of companies that also manufacture life insurance or have other interests.

-By Marietta Cauchi, Dow Jones Newswires; [phone]; [e-mail]