HSBC Insurance (Asia) has agreed to acquire the remaining 50% equity interest in its life insurance joint venture from The National Trust (NT).
HSBC Life China was formed in 2009 as a 50:50 joint venture between HSBC and NT; and, as of December 2019, had registered capital of CNY1.025bn (£116m, $145m, €134m).
The deal is in line with the removal of foreign ownership restrictions on foreign-funded life insurance companies in China, which became effective on 1 January 2020.
It will be structured as a transfer of equity interest and is subject to regulatory approvals, including from the China Banking and Insurance Regulatory Commission.
Bryce Johns, global chief executive of HSBC Life, said: “Full ownership of HSBC Life China, combined with the HSBC Group’s international strengths and robust digital and wealth management capabilities, will enable us to significantly extend our reach and amplify the scope of our life insurance offerings to meet the burgeoning protection, health and wealth needs of our customers in the mainland.”
Headquartered in Shanghai, HSBC Life China is present in nine mainland cities covering Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai and Shenzhen.
It offers a range of insurance solutions covering annuity, whole life, critical illness and unit-linked insurance products.