HSBC Insurance (Asia Pacific) Holdings, an indirect wholly-owned subsidiary of HSBC Holdings, has closed the acquisition of 100% of the issued share capital of AXA Insurance Pte Limited (AXA Singapore) for $529m.

The amount of the deal, which was announced in August 2021, was subject to closing adjustments.

HSBC co-CEO for Asia-Pacific Surendra Rosha said: “Asia’s growing middle class, high savings rate and resilient economic growth are creating huge opportunities in the region’s wealth management industry.

“Our acquisition of AXA Singapore significantly boosts our ability, as an Asia-centric bank, to serve the wealth and protection needs of people in this dynamic region, and to further execute on our strategy of being Asia’s leading wealth manager.”

HSBC Singapore CEO Kee Joo Wong said: “This acquisition is not just about expanding our insurance capabilities in Singapore, but about building a more holistic banking and wealth management platform for both retail and corporate clients.

“As we integrate the two insurance operations, customers can look forward to a best-in-class offering across life insurance, healthcare, wealth and banking to meet their needs.”

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AXA Singapore’s operations align with HSBC’s current local insurance business, HSBC Insurance (Singapore).

The retail and corporate customer base, several distribution channels, and complementary insurance products of AXA Singapore will enable HSBC to bolster and diversify its insurance and wealth business in Singapore.

For the year ended 31 December 2020, AXA Singapore reported net assets of $474m, annualised new premiums of $85m, gross written premiums of $739m and profit before tax of $23m.

Subject to local regulatory and court approvals, it is anticipated that AXA Singapore and HSBC Life Singapore business will be integrated in the second half of this year.

The terms of any of the policies underwritten by AXA Singapore will not be impacted by the move.

The acquisition was funded from existing resources and had a minimal impact on HSBC’s common equity tier 1 ratio.  The deal is immediately accretive to the earnings of the group.