Axa sells its Singapore activities to HSBC for 487 million euros – archyde

PARIS (Reuters) – Axa on Monday announced the sale of its insurance activities in Singapore for 487 million euros to HSBC as part of its strategy to refocus on its main markets.

The transaction should generate a negative impact on the group’s net income of around 160 million euros in 2021 accounts, the insurer said in a press release.

The finalization of the transaction, subject to obtaining regulatory authorizations, should take place in the fourth quarter of 2021.

The sale is part of the steps taken by Axa to rationalize its activities as part of a restructuring initiated by its managing director Thomas Buberl, a process that includes the sale of assets in certain countries and in certain markets in order to increase its returns. .

HSBC, which with the acquisition aims to become the seventh largest bank in life insurance and fourth in health insurance, said in February that it would invest $ 3.5 billion in its wealth management activities and banking services for individuals in Asia. It also intends to transfer the assets of certain less profitable commercial lines in Europe and North America.

The UK bank is also striving to generate more revenue through the commissions it receives from selling products to customers as it struggles to provide loans in a low interest rate environment.

“Wealth management is one of our highest growth and return opportunities, and builds on our strengths as an Asia-centric bank with a global reach,” said HSBC CEO Noel Quinn , in a press release.

Noel Quinn announced last month that HSBC is considering three or four “flash” acquisitions in Asia, outside of China, in areas such as insurance and asset management, while focusing on organic growth at Hong Kong and mainland China.

(Report Blandine Hénault in Paris, Anshuman Daga in Singapore and Alun John in Hong Kong; French version Kate Entringer)