AXA introduced it has accomplished the sale of its Singapore operations to HSBC for US$529 million.
HSBC Insurance coverage (Asia Pacific) Holdings Ltd., an oblique wholly-owned subsidiary of HSBC Holdings plc, accomplished the acquisition of 100% of the issued share capital of AXA Singapore, in a deal that was first introduced in August 2021.
AXA Singapore is the eighth largest life insurer in Singapore by annualized new premiums, fifth largest property/casualty (P/C) insurer by gross written premiums and a number one well being participant, mentioned HSBC in a press release.
AXA Singapore had web property of US$474 million, annualized new premiums of US$85 million, gross written premiums of US$739 million and revenue earlier than tax of US$23 million for the 12 months ended Dec. 31, 2020, added HSBC.
AXA mentioned its operations in Singapore associated to AXA XL, AXA France, AXA Companions, MAXIS and AXA World Healthcare will not be included on this transaction.
AXA Singapore’s operations complement HSBC’s present native insurance coverage enterprise, HSBC Insurance coverage (Singapore) Pte Ltd. (HSBC Life Singapore). AXA Singapore’s massive retail and company buyer base, a number of distribution channels, and complementary insurance coverage merchandise will permit HSBC to materially scale up and diversify its insurance coverage and wealth enterprise in Singapore, in line with HSBC.
“Asia’s rising center class, excessive financial savings price and resilient financial progress are creating enormous alternatives within the area’s wealth administration business. Our acquisition of AXA Singapore considerably boosts our means, as an Asia-centric financial institution, to serve the wealth and safety wants of individuals on this dynamic area, and to additional execute on our technique of being Asia’s main wealth supervisor,” commented Surendra Rosha, co-CEO, Asia-Pacific at HSBC.
AXA Singapore and HSBC’s present HSBC Life Singapore enterprise will probably be built-in, anticipated within the second half of 2022, topic to native regulatory and courtroom approvals. There will probably be no impression to the phrases of any of the insurance policies in-force underwritten by AXA Singapore.
In February 2020, HSBC mixed its retail banking and wealth administration, asset administration, insurance coverage and personal banking companies to create Wealth and Private Banking (WPB) which serves over 39 million clients globally. HSBC’s ambition is to be Asia’s main wealth supervisor by 2025.
Asia generates round half of HSBC’s US$1.6 trillion international wealth balances and almost 65% of the group’s wealth revenues. HSBC’s insurance coverage enterprise globally contributed to round a 3rd of total WPB income and 12% of group income within the first half of 2021.
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