HSBC to buy rival AXA’s Singapore insurance business for US$575 million in Asia wealth push
- HSBC seeks to become a leading wealth manager in Asia by 2025
- AXA Singapore had US$739 million in gross written premiums in 2020
The UK financial group is adding the Southeast Asian city state’s eighth largest life insurer and fifth biggest property and casualty insurer, that is also a major player in group health insurance. The unit had net assets of US$474 million, gross written premiums of US$739 million and pre-tax profit of US$23 million in 2020.
“This strategic investment is a key milestone for HSBC Life to materially scale up, grow and diversify our insurance and wealth business in Singapore,” Nuno Matos, the chief executive of HSBC’s Wealth and Personal Banking business, said in a statement on Monday. The purchase will put the group in a leading position in health and employee benefits and quicken its expansion in wealth and health planning, he added.
Combining AXA’s Singapore operations with its existing business there will give it more than 600,000 policies in force covering life, health and property and casualty in Singapore, the company said.
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The transaction is subject to regulatory approval and expected to close by the fourth quarter.