AXA Completes Sale of Singapore Business to HSBC

AXA announced it has completed the sale of its Singapore operations to HSBC for US$529 million.

HSBC Insurance (Asia Pacific) Holdings Ltd., an indirect wholly-owned subsidiary of HSBC Holdings plc, completed the acquisition of 100% of the issued share capital of AXA Singapore, in a deal that was first announced in August 2021.

AXA Singapore is the eighth largest life insurer in Singapore by annualized new premiums, fifth largest property/casualty (P/C) insurer by gross written premiums and a leading health player, said HSBC in a statement.

AXA Singapore had net assets of US$474 million, annualized 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 Dec. 31, 2020, added HSBC.

AXA said its operations in Singapore related to AXA XL, AXA France, AXA Partners, MAXIS and AXA Global Healthcare are not included in this transaction.

AXA Singapore’s operations complement HSBC’s existing local insurance business, HSBC Insurance (Singapore) Pte Ltd. (HSBC Life Singapore). AXA Singapore’s large retail and corporate customer base, multiple distribution channels, and complementary insurance products will allow HSBC to materially scale up and diversify its insurance and wealth business in Singapore, according to HSBC.

“Asia’s growing middle class, high savings rate and resilient economic growth are creating huge opportunities in the region’s wealth management industry. Our acquisition of AXA Singapore significantly boosts our ability, as an Asia-centric bank, to serve the wealth and protection needs of people in this dynamic region, and to further execute on our strategy of being Asia’s leading wealth manager,” commented Surendra Rosha, co-CEO, Asia-Pacific at HSBC.

AXA Singapore and HSBC’s existing HSBC Life Singapore business will be integrated, expected in the second half of 2022, subject to local regulatory and court approvals. There will be no impact to the terms of any of the policies in-force underwritten by AXA Singapore.

In February 2020, HSBC combined its retail banking and wealth management, asset management, insurance and private banking businesses to create Wealth and Personal Banking (WPB) which serves over 39 million customers globally. HSBC’s ambition is to be Asia’s leading wealth manager by 2025.

Asia generates around half of HSBC’s US$1.6 trillion global wealth balances and nearly 65% of the group’s wealth revenues. HSBC’s insurance business globally contributed to around a third of overall WPB profits and 12% of group profits in the first half of 2021.

Topics USA AXA XL