Who will buy HSBC Holdings' non-life insurance operations?

It's either Europe's Axa or Zurich's Ace - we'll probably know by late February.

Industry sources said the winner will be either Axa SA, Europe’s second-biggest insurer, or Ace Ltd, an insurer, reinsurer based in Zurich.

Hong Kong's and Europe's largest bank, HSBC had $1 billion of net written insurance premiums for its non-life business in 2011, down from $1.1 billion in 2009. Net premiums in Asia accounted for about a third of the total, while Latin America made up 42%, said the company's annual report.

Bidders are negotiating with HSBC on how profits will be distributed from policies that are sold through the HSBC’s branch network.

HSBC is among European banks selling assets as lenders try to adjust to stricter global capital rules as the economic recovery is stifled by the Eurozone's debt crisis. It is the world's second-largest banking and financial services group and second-largest public company.