Pan-Asian insurance giant AIA has agreed to acquire 100% of the shares in Blue Cross (Asia Pacific) Insurance and 80% of the shares in Blue Care JV Holdings from The Bank of East Asia (BEA).
AIA will pay a total consideration of $278m (£212m, €256m) for the transaction.
Blue Cross is a Hong Kong-based insurer focused on providing health products.
As part of the deal, AIA and BEA have also agreed to extend the scope of their existing exclusive bancassurance partnership.
Through the acquisition of Blue Cross, the firms’ partnership will include a 15-year agreement covering personal lines general insurance products. This will provide a suite of AIA’s insurance solutions, including health insurance, to BEA’s personal banking customers in Hong Kong.
‘Heart of our strategy’
Jacky Chan, AIA’s regional chief executive, said: “This investment builds on our long history in Hong Kong and underscores our confidence in its future.
“Our unrivalled multi-channel distribution platform is at the heart of our strategy and this new agreement deepens our exclusive relationship with one of the leading domestic banks in Hong Kong.
“This transaction also strengthens our position as a leading health insurer. Powered by AIA’s digital transformation and a full suite of health insurance propositions, we will unlock further growth potential and help many more people live healthier, longer, better lives.”