HSBC Life China was created in 2009 as a 50:50 life insurance joint venture in China by HSBC Insurance (Asia) and National Trust
HSBC Insurance (Asia) is set to take full ownership of HSBC Life Insurance (HSBC Life China) by acquiring the remaining 50% stake from its joint venture partner The National Trust (NT).
Financial terms of the deal were not disclosed.
HSBC Life China was created in 2009 as a 50:50 life insurance joint venture in China by the indirect wholly-owned subsidiary of HSBC and National Trust.
According to HSBC, the deal is in line with the scrapping of foreign ownership restrictions on foreign-funded life insurance firms in China, which came into force from this year onwards.
The banking group said that the deal will be structured as a transfer of equity interest and will be subject to receipt of regulatory approvals from the China Banking and Insurance Regulatory Commission and other bodies.
HSBC group chief executive Noel Quinn said: “Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy.
“This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses. It also allows us to further extend our capabilities in wealth, another area of strategic focus for the Group.”
HSBC Life China is present in nine major Chinese cities
Headquartered in Shanghai, the life insurance company has footprint across nine key mainland cities that include Shanghai, Beijing, Tianjin, and others. As of December 2019, it had a registered capital of RMB1.025bn ($145.13m).
The company provides a range of insurance solutions covering annuity, whole life, critical illness, and also unit-linked insurance products.
HSBC Life global chief executive Bryce Johns said: “The increase of our stake in the joint venture demonstrates our strong commitment to continued investment in mainland China, on track to be the largest insurance market in the world.
“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.”