HSBC on Monday says that its subsidiary is buying French-multinational insurance firm Axa, the eighth-largest life insurer by annualised premiums in Singapore for $575m as part of HSBC’s plans to expand its wealth management business in Asia.
The bank says it is a key milestone supporting its ambition to be Asia’s leading insurance and wealth provider and it also strengths Singapore as a global wealth hub for HSBC.
Noel Quinn, Group Chief Executive, HSBC Holdings plc, says, “This is an important acquisition that demonstrates our ambition to grow our Wealth business across Asia.
“Wealth is one of our highest growth and highest return opportunities, and plays to our strengths as an Asia-centred bank with global reach.
“We are acquiring a good business that fits well with our existing operations, and which strengthens our status as one of Asia’s leading wealth and insurance providers.”
HSBC says it will fund the acquisition through existing resources and expects the acquisition to be “immediately accretive” to its group-level earnings.
AXA Singapore is a good fit with HSBC’s existing HSBC Insurance (Singapore) Pte Ltd’s (HSBC Life Singapore) business.
According to the statement by HSBC HSBC Insurance (Asia-Pacific) Holdings Ltd, an indirect wholly-owned subsidiary of HSBC Holdings plc, has entered into an agreement to acquire 100% of the issued share capital of AXA Insurance Pte Limited.
“The proposed acquisition, which is subject to regulatory approval, is a key step in achieving HSBC’s stated ambition of becoming a leading wealth manager in Asia, by expanding its insurance and wealth franchise in Singapore, a strategically important scale market for HSBC, and a major hub for its ASEAN wealth business,” says the media release.
AXA Singapore had net assets of US$474m, annualized new premiums of US$85m, gross written premiums of US$739m and profit before tax of US$23m for the year ended 31 December 2020.
