HSBC Insurance to sell general insurance business in Macau

The deal is expected to complete in the first half of 2013

April 11, 2013 3:43 IST | India Infoline News Service
HSBC Insurance (Asia) Ltd, a subsidiary of HSBC Holdings Plc, said that it has signed an agreement to sell its general insurance business to QBE Insurance (International) Ltd in Macau. However, no financial details of the deal have been provided.

The deal is expected to complete in the first half of 2013.

The Hongkong and Shanghai Banking Corporation Ltd, an indirect subsidiary of HSBC Holdings plc, has also signed a non-exclusive agreement with QBE to distribute their general insurance products to the Bank's customers in Macau. QBE will pay commissions to the Bank on product sales.

Earlier, there were reports in media that Major foreign and domestic insurers are eyeing HSBC Insurance’s 26% holding in Canara HSBC Oriental Bank of Commerce Life Insurance.

Canara HSBC OBC Life was launched in June 2008 and is a joint venture between Canara Bank (holding 51%), HSBC Insurance (Asia Pacific) Ltd (holding 26%), the Asian insurance arm of HSBC and Oriental Bank of Commerce (holding 23%).

The joint venture operates a bancassurance model and has a network of over 6,000 bank branches of its corporate agents. Bancassurance is an arrangement between banks and insurers to sell insurance products through banks.

Canada-based life insurer Manulife and HDFC Life are said to mull for HSBC insurance stake. The company which buys HSBC's stake can sign a new bancassurance agreement with the two banks, in addition to the existing bancassurance arrangement, the report had said.

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