HSBC eyeballs AIG Asian business

HSBC (LON:HSBA) could be set to purchase the Asian businesses of American International Group Inc (AIG) the troubled US insurer. The deal could be worth around $8.7 billion according to analyst James Hutson at Keefe, Bruyette & Woods.

HSBC posted pre-tax profits showing that 16 percent was contributed by the banks insurance business in the first half of 2008. While HSBC have said they have no plans to rush and buy up assets, Hutson believes that buying the Asia life business of AIG is a feasible measure to achieve its target insurance contribution of 20 percent.

Hutson believes that HSBC has virtually no want to enter the Japanese market and considers other non-Asian businesses will also be of little interest to the bank, leaving the other Asian businesses which is believed to be at least 50 percent Hong Kong based. HSBC own 18 percent market share in Hong Kong Life, if they did decide to purchase AIG the deal would most probably double its market share.

Source: Guardian The Gunman the movie