* Global insurers keen on distribution deals
* Eye access to extensive branch network
* Incumbent Allianz expected to bid to renew deal-sources
* CIMB keen for one combined bid for markets - sources
(Adds bankers' comments, details on previous deals)
By Anshuman Daga and Yantoultra Ngui
SINGAPORE/KUALA LUMPUR, Sept 4 (Reuters) - Malaysian lender
CIMB Group Holdings CIMB.KL has invited bids from insurers for
an agreement to distribute their general insurance products in
four Southeast Asian markets, a deal that could fetch it about
$400 million, people with direct knowledge of the matter said.
Malaysia's No. 2 bank has hired JPMorgan (NYSE:JPM) JPM.N to advise
it on the deal, which is expected to draw interest from
companies including Australia's QBE Insurance Group QBE.AX ,
Tokyo Marine Holdings Inc 8766.T , France's AXA AXAF.PA and
Italy's Generali GASI.MI among others, the people said.
German insurer Allianz's ALVG.DE 10-year bancassurance
agreement to distribute general insurance products through
CIMB's branches in Malaysia ends in 2017. Allianz is looking to
renew the partnership, people familiar with the process said.
The so-called bancassurance model - as opposed to the
traditional agency model - is lucrative for banks because global
insurers are willing to pay hefty fees for access to lenders'
branch networks and exposure to the growing middle class in
emerging markets to sell life, property, motor and fire
insurance.
CIMB has about 1,000 branches servicing about 13 million
customers in Malaysia, Indonesia, Thailand and Singapore, with
its home market and Indonesia making up the majority.
CIMB was not immediately available to comment. JPMorgan,
Allianz, Generali, AXA, Tokio Marine and QBE declined to
comment.
Asia has seen three large bank distribution deals for life
insurance in the past two years, and all three saw aggressive
bidding by insurers who are betting on strong growth in
insurance premiums.
"CIMB's preference is to have a combined bid but you don't
have many regional players, so we could end up seeing bids for
individual markets," said one Singapore-based banker. CIMB has
separate non-life insurance partners for its different markets.
First-round bids are due in a few weeks, the people said.
"We haven't seen too many deals in non-life insurance.
Insurers are quite keen to lock in distribution agreements,"
said another Singapore-based banker, adding that it was hard to
ascertain a deal value as there was no benchmark for non-life
deals in Asia.
The $400 million deal value could change on the various
sales assumptions bidders could make on these fast-growing
insurance markets, bankers said.