HSBC Insurance to form a 50:50 insurance joint venture with National Trust
HSBC Insurance (Asia) has obtained final approval from the China Insurance Regulatory Commission (CIRC), to form a 50:50 insurance joint venture with National Trust Limited (National Trust).
The new entity, HSBC Life Insurance Company, will commence business in the third quarter of this year, with a registered capital of RMB500 million. The JV will provide life, pensions and medical insurance services by employing sales agents and bancassurance partnerships as distribution channels.
David Fried, Chairman and CEO, HSBC Insurance for Asia-Pacific, said: This investment will allow us to further broaden our insurance offering in China where the GDP growth is estimated to be 7.8 per cent this year and the growing personal wealth base will drive the use of insurance products.
Dennis Chan, Chairman of National Trust, said: The new insurance company will enable both National Trust and HSBC to participate in the considerable growth potential of the insurance market in China. We are delighted to bring our franchise, our trusted platform and our local market knowledge to this partnership.