The bank and a financial adviser are working on a review of HSBC Life (Singapore) Pte Ltd, which could be valued at more than US$1 billion in a transaction, the people said, asking not to be identified because the information is private.

“Other insurers and investment firms have shown early interest,” they said.

“Considerations are preliminary and no final decision has been made,” the people said.

A representative for HSBC declined to comment on market speculation.

He added that the bank is committed to Singapore as an international wealth and wholesale hub, and Singapore is crucial to its strategy and a key focus for investment and growth for the group.

HSBC’s Singapore insurance business includes life and critical illness, savings, personal accident and health.

The bank has expanded its insurance presence in Singapore organically and via acquisitions, including the purchase of AXA Insurance Pte Ltd for US$529 million in 2022.

A sale would follow other HSBC disposals in Europe and North America.

Last year, the bank agreed to sell its UK life insurance business to Chesnara Plc and its custody business and private banking operations in Germany.

It also sold its French life insurance unit.

Elhedery has undertaken the biggest overhaul of HSBC in at least a decade, reorganising it into four divisions and exiting some businesses.

Last week, minority shareholders of Hang Seng Bank Ltd voted in favour of HSBC’s US$14 billion buyout.