The Swiss insurance group is reportedly exploring an exit from Hong Kong and Singapore.

Zurich Insurance is considering selling its Hong Kong and Singapore operations as it reviews non-core businesses outside Europe, Reuters reported, citing unnamed sources.

The firm, which offers services including savings and investments, has examined the idea of a sale with several investment banks but has not hired advisors on a move yet, the report said, adding that a deal is not certain. 

The report said the Swiss insurer declined to comment. However, Zurich later emailed WealthBriefingAsia and sister publications with the following statement, saying suggestions that it might quit Asia are unfounded. “Further to an article that first appeared in Reuters on Tuesday 24 February 2016 and subsequent market rumours stating that Zurich is exploring an exit from the Hong Kong and Singapore markets, we would like to clarify that Zurich has no intention of exiting the Hong Kong or Singapore markets."

"We remain committed to our General Insurance and Global Life businesses in Hong Kong, and our General Insurance business in Singapore. Zurich retains its position as top two general insurer in Hong Kong, and one of the top five general insurers in Singapore. We look forward to continuing to service and protect our customers from risk in these key strategic markets for Zurich in Asia Pacific," it added.

Zurich Insurance launched an in-depth review of its business in September last year after explosions at the Chinese port of Tianjin caused losses of around $275 million. The business also abandoned a bid to buy the UK’s RSA Insurance after a "deterioration" in its general insurance business.

In January it issued a profit warning for its general insurance business and subsequently hired Generali's former chief, Mario Greco, to revive its fortunes.

The report noted that Zurich began to reduce the size of its Asian franchise last year when it stopped accepting new life policy applications in Singapore, where it has been since 2006.

Among recent developments, Zurich Life Insurance (Singapore), part of the same group, agreed to transfer its entire Singapore advisor network of around 160 representatives to Nexus Financial Services. Zurich said the move came amid regulatory changes in the Singaporean life insurance market, and a proactive approach towards more transparency, wider product choice and higher advice standards was needed.