HSBC Insurance (Asia-Pacific) Holdings has entered into an agreement with Hana Financial Group, a South Korea-based financial services group, to acquire 50% less one share of its wholly owned subsidiary, Hana Life Insurance Company, for a consideration of $58.4 million.

Under the terms of the agreement, HSBC Insurance and Hana Financial Group will have equal representation on Hana Life’s board of directors.

Clive Bannister, group managing director for insurance at HSBC Holdings, said: Today’s announcement represents an exciting opportunity for HSBC Insurance to contribute to Asia’s third largest economy and the world’s seventh biggest insurance market with premium volumes of over $65 billion. It ties in completely with our stated goals of expanding in Asia and aim of becoming a top 10 global insurance player, with a focus on life and pensions and increasing insurance-related earnings over time to 20% of total group profits.