After nearly four years of a failed attempt to sell the business, owners of Hong Kong Life Insurance (HKLI) are once again considering selling the insurance firm, this time for US$600 million.

Sources privy to the matter told Reuters that five Hong Kong financial institutions, which own the unlisted insurance firm, are seeking advice from Nomura Holdings regarding the possible sale.

Like Us on Facebook

It was yet unclear when a decision would be reached though. Among the firms that have expressed interest to bid, the sources added, is Great Eastern Holdings, but its spokesman declined to comment on the report.

HKLI, one of the last remaining independent life insurance businesses in the city, was founded in 2001 by OCBC Wing Hang Bank, Asia Insurance, Shanghai Commercial Bank, Chong Hing Bank and Wing Lung Bank, all of which either declined to comment on the development or was not available.

In 2012, HKLI was put up for sale but did not materialize when shareholders couldn't agree on a price.

At present, there is a strong interest in insurance asset businesses in Hong Kong, especially from Chinese investors, because of the steady cash flow provided by its stable foreign currency.

Reinsurance firm Swiss Re said the city is a developed life insurance market, with a life and health insurance premium-to- GDP ratio of 13.4 per cent last year, the second highest in Asia.

HKLI has an extensive network of around 180 distribution points comprising Chong Hing Bank, OCBC Wing Hang, Shanghai Commercial Bank and Wing Lung Bank.

The insurer provides a comprehensive range of insurance services, including saving insurance, universal life insurance, term life insurance, retirement plan, juvenile plan, medical and dreaded disease coverage, accidental and disability coverage, and group insurance.

Reuters reported that HKLI becomes the latest insurance asset in Hong Kong to be put on the block as interests from Chinese investors grow stronger.

TagsHong Kong Life Insurance, Hong Kong Insurance, Hong Kong, Insurance