Indirect wholly-owned subsidiary of HSBC Holdings, HSBC Insurance (Asia) Limited announced the company entered an agreement to acquire remaining 50% equity interest in HSBC Life Insurance Company Limited, its life insurance joint venture in China, from the National Trust Limited.
The agreement follows the removal of foreign ownership restrictions on foreign-funded life insurance companies in China on 1 January 2020.
The transaction will be composed as a transfer of equity interest. It waiting on regulatory approvals, including from the China Banking and Insurance Regulatory Commission.
Noel Quinn, HSBC’s Group Chief Executive, commented:
Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy. This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses. It also allows us to further extend our capabilities in wealth, another area of strategic focus for the Group.
Peter Wong, HSBC’s Asia Pacific Chief Executive, said:
As the leading international bank in China, HSBC is privileged to participate in the opening up of the insurance sector, a positive development which underlines China’s commitment to financial reform. This transaction allows us to increase our investment and deepen our presence in China, an important country within our well-regarded Asian franchise and a strategic market supporting our customers’ activity across our global footprint.
Bryce Johns, Global Chief Executive of HSBC Life, added:
The increase of our stake in the joint venture demonstrates our strong commitment to continued investment in mainland China, on track to be the largest insurance market in the world. Full ownership of HSBC Life China, combined with the HSBC Group’s international strengths and robust digital and wealth management capabilities, will enable us to significantly extend our reach and amplify the scope of our life insurance offerings to meet the burgeoning protection, health and wealth needs of our customers in the Mainland.
HSBC Life China was founded in 2009 and is a 50:50 joint venture between the National Trust and HSBC. Based in Shanghai, the life insurance company had registered capital of RMB1.025 billion as of December last year. HSBC Life China covers nine key Mainland cities covering Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai and Shenzhen and offers range of insurance solutions covering annuity, whole life, critical illness and unit-linked insurance products.
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