AIA Group is seriously looking at bidding for ING’s Asian insurance business in a deal that could be worth about $US6 billion ($5.5 billion).

ING had looked at floating the Asian insurance and investment management business, but has now decided on a sale.

In a briefing for investors, Group CEO Jan Hommen says the uncertain economic outlook and turbulent financial markets means ING is “exploring other options for its Asian insurance and investment business”.

“ING will continue preparations for a standalone future of the European insurance/investment management businesses, including an initial public offering,” he said

“We also continue to prepare for the base case of an initial public offering for the US insurance/investment management business.”

The Dutch bank is being forced to sell its global insurance business to repay loans it was given by the state as part of a global financial crisis rescue package.

ING has already sold its Latin American insurance business for €2.65 billion ($3.2 billion).

The Asian sale is expected to draw bidders from around the world, although some European firms will be hampered due to the poor economic conditions in their home markets.

Some companies may also make joint bids enabling them to divide the operation up later.

The ING Asian insurance business is biased towards the South Korean and Japanese markets.

It’s understood ING has appointed Goldman Sachs and JP Morgan to advise on the sale, but AIA is keeping quiet about any adviser appointments to help prepare a bid.

Currently AIA has about $US3 billion ($2.8 billion) of excess capital and analysts don’t expect the insurer will have any difficulty raising extra funds for a bid.

No timetable has been set by ING for the sale of the Asian business.