(Bloomberg) -- Dah Sing Financial Holdings Ltd. is seeking a new insurance partner after it terminated an agreement with Tahoe Life Insurance Co., according to people familiar with the matter.
The Hong Kong banking group is working with an adviser to pursue a so-called bancassurance partnership, the people said, asking not to be identified because the matter is private. A deal, which could be worth a few hundred million dollars, could draw interest from other insurers seeking to expand in the territory, they said.
In a bancassurance agreement, an insurer typically pays an upfront amount to sell its products in the bank’s branches. Dah Sing’s 2017 insurance distribution agreement with Tahoe Life in Hong Kong was set to run for 15 years. In July, Dah Sing said it was ending the Tahoe Life pact, alleging breaches of the agreement. Tahoe does not agree Dah Sing is entitled to terminate the deal and said it is maintaining operations as usual, according to its own statement.
Considerations are preliminary and no final decisions have been made, the people said. A representative for Dah Sing declined to comment, while a Tahoe Life representative didn’t immediately respond to a request for comment.
Dah Sing provides banking, insurance and other financial services in Hong Kong, Macau and mainland China, according to its website. Last month, Japan’s Norinchukin Bank bought about 10% of Dah Sing from Mitsubishi UFJ Financial Group as part of a business tie up.
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