HSBC has agreed to acquire 100% of the issued share capital of Axa Singapore for $575m (£415m, €488m).
The proposed acquisition, which is subject to regulatory approval, is a “key step” in achieving HSBC’s ambitions of growing its wealth management operation in Asia.
The combined business will be the seventh largest life insurer and fourth largest retail health insurer in the country.
Noel Quinn, group chief executive of HSBC, said: “This is an important acquisition that demonstrates our ambition to grow our wealth business across Asia.
“Wealth is one of our highest growth and highest return opportunities and plays to our strengths as an Asia-centred bank with global reach. We are acquiring a good business that fits well with our existing operations, and which strengthens our status as one of Asia’s leading wealth and insurance providers.”
Gordon Watson, chief executive of Asia and Africa at Axa, added: “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.”
This deal comes several weeks after Axa Group entered into an agreement with Generali to sell its insurance operations in Malaysia.
