HSBC Insurance (Asia-Pacific) Holdings has entered into an agreement to acquire 100% of the issued share capital of AXA Insurance Pte Ltd (AXA Singapore) for US$575 million.
The proposed acquisition is subject to regulatory approval. HSBC says the combined business will materially scale up HSBC’s presence in the regional insurance market, and it will also provide a platform for future growth. AXA Singapore is currently the 8th largest life insurer in Singapore by annualised new premiums, 5th largest property and casualty (P&C) insurer and a leading group health player. AXA Singapore had net assets of US$474 million, annualised new premiums of US$85 million, gross written premiums of US$739 million and profit before tax of US$23 million for the year ended December 31, 2020. The combined business would be the 7th largest life insurer (based on annualised new premiums) and 4th largest retail health insurer based on Monetary Authority of Singapore filings and Life Insurance Association of Singapore data, according to HSBC.
See also: French insurer Axa SA considers sale of its Singapore business to raise funds
Following deal completion, which is subject to regulatory approval, the intention is to merge the operations of HSBC Life Singapore and AXA Singapore, subject to further approval by the Singapore regulator and courts.
