HSBC Insurance is set to acquire the Singaporean arm of global insurer AXA in a deal worth $575m.
According to Reinsurance News, AXA Singapore is a composite insurance carrier to around 1 million clients. The company is ranked as eighth in the life insurance and holds a 2% market share and is fifth in the property and casualty insurance market with a 4% market share.
The sale of AXA Singapore to HSBC is expected to result in a negative net income impact of around $160m to AXA Group’s full-year 2021 financial results.
The acquisition currently remains subject to closing conditions and is estimated to conclude by the fourth quarter of this year.
AXA CEO for Asia and Africa Gordon Watson said, “This transaction is another step in AXA’s simplification journey.“In line with the Group’s strategy, we are focusing on our core markets where we have the size, presence in the right business segments and a strong potential to grow.
“We have in Asia a unique set of assets across established and high potential markets where we are deploying our vision, notably in health and protection, bringing high value products and services to our customers. I would like to thank the management team and all the employees of AXA Singapore for their strong contribution and commitment over the years and wish them every success for the future.”
AXA recently introduced STeP, a new digital claims solution to help customers simplify their motor insurance process.
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