Chinese asset management firm JD Capital has agreed to acquire Hong Kong’s life insurance business of Belgium-based Ageas for around €1.23bn.
Ageas purchased Pacific Century Insurance in 2007 and rebranded it to Ageas, which includes around 2,500 professional financial advisors.
Ageas CEO Bart De Smet said: "The decision to sell our business in Hong Kong follows a strategic review of our Asian activities in which we concluded that it is in the group’s best interest to realign our strategy towards the fast growing emerging markets of Asia.
Ageas life insurance business reported gross inflows of around €1.23bn in 2014 and €269m in the first half of this year, while Hong Kong operations generated €967m by the end of June this year.
In Asia, Ageas intends to focus six growth markets such as Malaysia, China, Thailand, India, Philippines and Vietnam.
Ageas Asia CEO Gary Crist said: "We continue to look for organic and inorganic growth opportunities, leveraging on our strengths in building joint venture partnerships with strong financial institutions."
Subject to regulatory approvals, customary closing conditions and JD Capital’s shareholder approval, the deal is expected to complete by the first half of 2016.
Claimed to be one of top 20 insurance firms in Europe, Ageas has divided its business into four segments, including the UK, Belgium, Continental Europe and Asia.
The firm has partnerships in Belgium, the UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India, Thailand, the Philippines and Vietnam, while subsidiaries in France, Portugal, Hong Kong and the UK.
Ageas offers individual life and employee benefits services in Belgium, in addition to non-life insurance through AG Insurance. In the UK, it provides car insurance services.
Image: JD Capital to purchase life insurance business of Ageas in Hong Kong. Photo: courtesy of cooldesign/ FreeDigitalPhotos.net.