The Standard Life (Asia) deal is expected to take a year and a half to complete, subject to local regulatory and other approvals in Mainland China and Hong Kong. The announcement comes 18 years after setting up in the territory.
The final consideration will be calculated as at the date of completion and will be payable in cash.
HASL’s insurance business, which is focused on China, was established in 2003 as a joint venture between Standard Life and Tianjin TEDA International Holding (Group).
Standard Life will continue to own 50% of HASL, which distributes a range of individual savings, investment and protection products, as well as group protection products, through tied agents, banks, employed sales force and broker companies.
Sandy Begbie, executive lead (Insurance) for China, Standard Life plc, said: “The proposed transaction is a major milestone in the development of our insurance business in Greater China, further strengthening our relationship with TEDA.
“It makes strategic sense to bring Standard Life Asia and Heng An Standard Life together. It will form a stronger, single base allowing us to continue to innovate and meet the evolving needs of our Chinese and Hong Kong customers, while also enhancing our growth potential.”
Alan Armitage, chief executive, Standard Life Asia, said: “By leveraging the existing expertise and talents, the Hong Kong operation will become an important gateway for Heng An Standard Life to the Hong Kong insurance market. The proposed transaction is an important strategic development which will allow us to further develop our proposition for customers and grow our presence in the region.”
Zhenyu Liu, general manager, Heng An Standard Life said the deal would allow access to more markets: “It will also result in HASL becoming a Sino-foreign joint venture insurance company with insurance licences for serving both Mainland China and Hong Kong customers.”
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