HSBC to Acquire AXA Singapore for $575 Million
HSBC’s Asian arm has entered into a definitive agreement which will see them acquire 100% of the issued share capital of AXA Singapore. HSBC is buying the life insurer for a reported $575 million.
HSBC in its press release has said that the acquisition of AXA Singapore is a “key step” in becoming the leading wealth manager in Asia. Post the completion of the transaction HBSC Life Singapore and AXA Singapore will combine their operations.
“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-centered bank
with a 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,” said Noel Quinn, Group
Chief Executive, HSBC Holdings plc.
There is a growing population of affluent and high net worth population in Singapore and across Southeast Asia that is driving the demand for health and insurance solutions for individuals, their families and SMEs. HSBC’s expansion in Singapore will help it reach this demography in Singapore and the region.
The acquisition will create a combined business that will make HSBC the 7th largest life insurer and 4th largest retail health insurer with over 600,000 policies in-force covering life, health and P&C1.
