AIA buys Hong Kong insurer Blue Cross for $278m from BEA

A bancassurance partnership is also in the mix.

AIA Group Limited has acquired 100% of the shares in Blue Cross (Asia-Pacific) Insurance Limited as well as 80% of shares in Blue Care JV (BVI) Holdings Limited from the Bank of East Asia, Limited for a total consideration of $278m.

AIA and BEA have also agreed to extend the scope of their existing exclusive bancassurance partnership. After the sale, Blue Cross will also become the exclusive provider of non-life insurance products for BEA’s personal banking customers for a period of 15 years.

Reports last year said that BEA was in talks with Goldman Sachs about disposing non-core assets, seeking to raise cash.

According to BEA, taking into account the prevailing business conditions upon completion of the transaction, the Board of Directors will decide on the use of proceeds from the disposals, which may include a return to shareholders.

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