SHC Capital Asia has been in discussions with a third party over the possible sale of its insurance business.

The company said the potential buyer is interested in acquiring its entire shareholding in wholly-owned subsidiary, SHC Insurance.

If successful, the buyer will be a new entrant into the direct general insurance market in Singapore.

Aside from the commercial aspects, the deal also hinges on getting approvals from the relevant authorities, including the Monetary Authority of Singapore as well as satisfying any applicable conditions.