Fujian Thai Hot Investment has agreed to acquire Dah Sing Financial Holdings’ (DSFH) life insurance businesses in Hong Kong and Macau for HK$10.6bn ($1.4bn).
Under the deal, Fujian Thai will acquire Dah Sing Life Assurance Company, Dah Sing Insurance Services and Macau Life Insurance, for around HK$8bn ($1.02bn).
Once the deal concludes, Dah Sing Life and Macau Life will pay HK$2.6bn ($334m) in aggregate to Dah Sing Banking Group (DSBG) in exchange for 15-year exclusive bancassurance partnerships with Dah Sing Bank and Banco Comercial de Macau (BCM).
Dah Sing Life provides a range of life insurance products in Hong Kong, including whole life, investment linked, accident and health, annuity and endowment products.
It distributes products through bank and a network of tied agents.
Macau Life provides individual life insurance product via branch network of Banco Comercial de Macau.
As of December last year, the total embedded value of the Dah Sing life insurance business, including Dah Sing Life and Macau Life, is around HK$3.7bn.
DSFH and DSBG chairman David Shou-Yeh Wong said: "We are pleased to have entered into an agreement that creates shareholder value for both DSFH and DSBG while preserving the strong bancassurance distribution partnership between Dah Sing Life and Macau Life and our banking group."
DSBG chief executive and managing director Harold Wong said: "Dah Sing Banking Group is committed to delivering high quality products and services to all our customers."
Image: Fujian Thai Hot Investment to acquire Dah Sing’s life insurance businesses in Hong Kong and Macau. Photo: courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net.