In a statement today, Axa said that with the takeover behind it, a cooperative P&C bancassurance arrangement with HSBC in both markets would now be launched.
Axa said its acquisition of HSBC’s P&C operations in Mexico would be completed “in due course”, as would the launch of P&C bancassurance cooperation arrangements with HSBC in Mexico, China, India and Indonesia.
‘Long-term partnership’
In March, Axa and HSBC unveiled what they said would be a "long-term partnership" in property and casualty insurance in Asia and Latin America.
Under the deal, Axa, they said, would acquire HSBC’s P&C businesses in Hong Kong, Singapore and Mexico, and benefit from a 10-year exclusive P&C banassurance agreement with HSBC in these countries as well as in India, Indonesia and China.
Axa said it would finance the $494m cost of the deal internally.
In announcing the partnership, Axa noted that it would position the insurer as "the No. 1 P&C player in Hong Kong", while also strengthening its "leading positions" in Mexico and Singapore.
The Hong Kong and Singapore businesses being acquired "benefit from multi-channel distribution, including through HSBC Bank branches, as well as strong agent and broker networks", Axa and HSBC said in announcing the partnership agreement.
