HSBC Insurance (Asia-Pacific) Holdings, an indirect wholly-owned subsidiary of HSBC Holdings has entered into an agreement to acquire 100 per cent of the issued share capital of AXA Singapore for $575 million. The proposed acquisition is subject to regulatory approval. The insurance giant aims to expand its insurance as well as the wealth franchise in Singapore, a major hub for ASEAN wealth business.
AXA Singapore, currently the eighth largest life insurer in Singapore by annualised new premiums and fifth largest property and casualty insurer had net assets of $474 million, annualised new premiums of $85m, gross written premiums of $739m and profit before tax of $23m for the year ended December 31.
HSBC said that both the businesses have complementary products across the spectrum of insurance solutions and distribution channels. This combined business will materially scale up HSBC’s presence in the regional insurance market and also provide an excellent platform for future growth, it said. The combined business would be the seventh largest life insurer (based on annualised new premiums) and fourth largest retail health insurer (based on gross premiums) with over 600,000 policies in-force covering life, health and P&C.
HSBC Group Chief Executive Noel Quinn said, “This is an important acquisition that demonstrates our ambition to grow our Wealth business across Asia. Wealth is one of our highest growth and highest return opportunities, and plays to our strengths as an Asia-centred bank with global reach.”
Nuno Matos, Chief Executive, Wealth and Personal Banking said that the proposed acquisition will immediately put them in a leading position in health and employee benefits and accelerate their build out of a distinctive and holistic wealth and health planning business, operating beyond their branch network.
Following the completion of the deal, the company aims to merge the operations of HSBC Life Singapore and AXA Singapore.
HSBC Holdings plc, the parent company of HSBC, is headquartered in London and has offices in 64 countries and territories. It had assets of $2,976bn as of June 30.
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