HSBC Insurance has completed the acquisition of 100% of the issued share capital of AXA Insurance in Singapore, for $529m.
HBCS said AXA Singapore’s operations complement its existing local insurance business. AXA Singapore’s large retail and corporate customer base, multiple distribution channels, and complementary insurance products will allow the company to materially scale up and diversify its insurance and wealth business in Singapore.
AXA Singapore and HSBC’s existing HSBC Life Singapore business will be integrated, expected in the second half of 2022, subject to local regulatory and court approvals.
There will be no impact to the terms of any of the policies in-force underwritten by AXA Singapore. Combining the two businesses would make the integrated entity the seventh largest life insurer (based on annualised new premiums) and fourth largest retail GI health insurer (based on gross premiums) in Singapore.
Surendra Rosha, co-CEO, Asia-Pacific at HSBC, said, “Asia’s growing middle class, high savings rate and resilient economic growth are creating huge opportunities in the region’s wealth management industry.
“Our acquisition of AXA Singapore significantly boosts our ability, as an Asia-centric bank, to serve the wealth and protection needs of people in this dynamic region, and to further execute on our strategy of being Asia’s leading wealth manager.”
Kee Joo Wong, CEO of HSBC Singapore, added, “This acquisition is not just about expanding our insurance capabilities in Singapore, but about building a more holistic banking and wealth management platform for both retail and corporate clients.”
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