Further to the announcement on 16 August 2021, HSBC Insurance (Asia Pacific) Holdings Limited, an indirect wholly-owned subsidiary of HSBC Holdings plc (HSBC), announced it has completed the acquisition of 100% of the issued share capital of AXA Insurance Pte Limited (AXA Singapore) for a consideration of US$529m, subject to closing adjustments.
Surendra Rosha, Co-CEO, Asia-Pacific at HSBC, commented: “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, Chief Executive Officer 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. As we integrate the two insurance operations, customers can look forward to a best-in-class offering across life insurance, healthcare, wealth and banking to meet their needs.”
AXA Singapore’s operations complement HSBC’s existing local insurance business, HSBC Insurance (Singapore) Pte Ltd (HSBC Life Singapore). AXA Singapore’s large retail and corporate customer base, multiple distribution channels, and complementary insurance products will allow HSBC to materially scale up and diversify its insurance and wealth business in Singapore, the statement said.
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 7th largest life insurer (based on annualized new premiums) and 4th largest retail GI health insurer (based on gross premiums) in Singapore, according to the statement.
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