The acquisition will give London-based HSBC the eighth-largest life insurer in Singapore, with net assets of $474 million as of December 31, 2020, according to the statement. AXA Singapore is also the fifth-largest property and casualty insurer in the city-state.
“This is an important acquisition that demonstrates our ambition to grow our wealth business across Asia,” Noel Quinn, group chief executive of HSBC, said in a statement. “Wealth is one of our highest growth and highest return opportunities and plays to our strengths as an Asia-centered bank with global reach.”
Upon completion of the acquisition, which is subject to regulatory approvals, HSBC will combine AXA Singapore with HSBC Insurance (Asia-Pacific) Holdings.
The combined businesses will scale up HSBC’s presence in the regional insurance market and provide an excellent platform for future growth, according to the statement.
Southeast Asia’s growing affluence has boosted the number of high-net-worth people in Singapore and its neighbors. This will drive demand for wealth, health and insurance solutions across the region, said Nuno Matos, chief executive of wealth and personal banking at HSBC.
The combined entity would be the country’s seventh-largest life insurer based on annualized new premiums and fourth-largest retail health insurer by gross premiums, with over 600,000 policies in-force covering life, health as well as property and casualty insurance, HSBC added.