International banking group HSBC is to further penetrate the Asian market with the acquisition of the non-life insurance portfolio of Hong Kong-based Jerneh Insurance via its HSBC Insurance unit. In addition to this, the group has entered the Vietnamese insurance market with the establishment of a new office in Hanoi.
According to Forbes, Jerneh holds a non-life insurance portfolio worth HK$35 million of gross assets and comprising of 10,000 policies, including medical, motor and employee compensation. The acquisition is anticipated to be completed during the first quarter in 2007.
Meanwhile, according to MarketWatch, the establishment of a representative office in Vietnam will position HSBC to begin selling insurance in Vietnam. This office is intended to research into the market, in an attempt to confirm the needs of customers to help draw suitable strategies through which HSBC can enter the Vietnamese insurance market.
HSBC has not yet received approval to sell insurance in Vietnam.