Global insurer AXA has entered into an agreement with HSBC Insurance (Asia-Pacific) Holdings Ltd over the sale of AXA Insurance Pte Ltd (AXA Singapore) for a total cash consideration of USD 575 million (€487mn).
It was reported back in January that British bank HSBC Holdings was among the shortlisted bidders for AXA’s Singapore operations.
AXA Singapore is a composite insurance carrier, offering L&S, Health, and P&C solutions to ca. 1 million clients. In Singapore, the firm is ranked as 8th in the life insurance sector with a 2% market share, and 5th in the P&C space, with a 4% market share.
The sale of AXA Singapore to HSBC is estimated to result in a negative net income impact of ca. €160 million in AXA Group’s FY 2021 consolidated financial results.
Gordon Watson, Chief Executive Officer (CEO) of AXA in Asia and in Africa, commented: “This transaction is another step in AXA’s simplification journey.
“In line with the Group’s strategy, we are focusing on our core markets where we have the size,
presence in the right business segments and a strong potential to grow. We have in Asia a unique set of assets across established and high potential markets where we are deploying our vision, notably in health and protection, bringing high value products and services to our customers.
“I would like to thank the management team and all the employees of AXA Singapore for their strong contribution and commitment over the years and wish them every success for the future.”
The deal remains subject to closing conditions and is expected to close by the fourth quarter of 2021.