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 7^th largest life insurer and 4^th largest retail health insurer with over 600,000 policies in-force covering life, health and P&C1.

 

LIC launches new benefit-based health insurance plan, Arogya Rakshak

The Life Insurance Corporation (LIC) of India recently has launched a new health insurance plan—Arogya Rakshak, a non-linked, non-participating, regular premium, individual health insurance plan. This plan primarily aims at providing timely support to the insurance holders in case of medical emergencies and helping their families to remain financially independent in challenging times.

This plan is different from the conventional health insurance plan in terms of the method of payment. While the latter reimburses the actual cost that has been incurred on treatment, Arogya Rakshak provides fixed benefit health insurance cover. This plan pays a lump sum benefit irrespective of actual medical expenses. Besides, this plan is not comprehensive as it works only against certain specified health risks.

One can purchase the plan for them as well as for their family members. It is available for Principal Insured/spouse/parents aged 18 to 65 years and children of age 91 days to 20 years. The cover period for principal insured, spouse, and parents will be available up to 80 years, while in the case of children, it is available only till the age of 25 years. This policy increases the overall health cover with time automatically through the Auto Step-up benefit.