HSBC gets AXA’s S’pore insurance business

Yesterday, the banking heavyweight said that HSBC agreed to obtain AXA’s Singapore insurance business for US$576 million that is equal to $780 million.

An indirect wholly-owned subsidiary of HSBC, HSBC Insurance, proposed to take 100 percent of the share capital of AXA Insurance in Singapore, and it is waiting for regulatory approval.

By annualized new premiums, AXA Singapore is considered the eighth-largest life insurance company. It is also considered the fifth-largest property and casualty insurer with a share of the health insurance market.

Based on annualized new premiums, this combined business might be the seventh-largest life insurer. Based on gross premiums, it could be the fourth-largest retail health insurer.

HSBC said in a statement that this combination comes to about 550,000 policies in force, covering health, life, and P&C.

If the deal goes smoothly, the company intends to consolidate the operations of  AXA Singapore and HSBC Life Singapore.

The merged entity will target millionaires and their families in Singapore and the region and smaller companies’ employees.

Overview of the business

Global chief executive and group general manager of HSBC Life and Insurance Partnerships, Mr. Bryce Johns, said they see a significant opportunity to offer employees health and digital protection benefits.

Chief executive of HSBC Singapore, Mr. Wong Kee Joo, said the acquisition would improve HSBC’s proposition to businesses and consumers while providing an avenue for the company itself to add to their wealth business in Singapore.

Mr. Johns also stated that the move would also allow HSBC to balance its business in Singapore and stimulate its plan to become one of the top insurance providers by 2025.

In Singapore, after the completion of the acquisition, the company will rebrand AXA’s policies to HSBC policies. An agent for AXA Singapore told The Straits Times that the terms and conditions would remain the same.