HSBC Insurance buys AXA Singapore for US$575m

The company plans to merge its Singapore operations with AXA Singapore.

The insurance arm of HSBC, HSBC Insurance (Asia-Pacific) Holdings Ltd, has entered into an agreement to purchase AXA Insurance Pte Limited (AXA Singapore) for US$575m ($780.06m).

AXA Singapore is currently the eighth largest life insurer in Singapore by annualized new premiums, fifth largest property and casualty insurer and a leading group health player. AXA Singapore had net assets of US$474m ($643.04m), annualized new premiums of US$85m ($115.31m), gross written premiums of US$739m ($1b), and profit before tax of US$23m ($31.20m) for the year ended 31 December 2020.

Once the deal is completed, HSBC plans to merge the operations of HSBC Life Singapore and AXA Singapore, subject to further approval by the Singapore regulator and courts.

According to HSBC, the acquisition, which is subject to regulatory approval, is a key step in achieving HSBC’s stated ambition of becoming a leading wealth manager in Asia, by expanding its insurance and wealth franchise in Singapore, a strategically important scale market for HSBC, and a major hub for its ASEAN wealth business.

Nuno Matos, chief executive of Wealth and Personal Banking, the investment is a key milestone for HSBC Life to scale up, grow, and diversify its insurance business in Singapore.

“The proposed acquisition will immediately put us in a leading position in health and employee benefits, and accelerate our build-out of a distinctive and holistic wealth and health planning business, operating beyond our branch network. Burgeoning affluent and high net worth populations in Singapore and across Southeast Asia will drive strong demand for an array of wealth, health, and insurance solutions for individuals, their families, and SMEs,” Matos added.