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December 3, 2021

Bank of East Asia mulls sale of general insurance arm

Hong Kong-based Bank of East Asia (BEA) is reportedly looking to divest its general insurance unit, which if materialised could rake in $300m-$400m.

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Several global insurers are vying for Blue Cross (Asia-Pacific) Insurance, with a formal procedure expected to start in 2022, reported Bloomberg citing people with knowledge of the issue.

BEA is said to be working with Goldman Sachs Group on the move, though no official confirmation has been provided by the companies.

However, the consideration is at a primary stage and the possibility of a deal is still uncertain, stated the report.

The bank is currently looking to sell its non-core assets and instead prioritise growth areas including its China operations.

“For Blue Cross (Asia Pacific) Insurance Limited, BEA’s wholly-owned general insurance arm (“Blue Cross”), underwriting profit normalised following an exceptional result last year, when medical claims ratios dropped as customers avoided treatment during COVID-19,” the bank revealed in its interim results for the six months ended 30 June 2021.

In March this year, AIA Group agreed to buy BEA’s life insurance unit, BEA Life, for nearly $650m.

BEA also agreed to distribute AIA’s life as well as long-term savings products to its retail banking customers.

The sale was driven by pressure from activist investor Elliott Management for reforms and followed a strategic review.

Investment firm China Strategic too was eyeing the life insurance business.

 

Free Report
img

Gain valuable insight on the Motor Insurance industry outlook for Asia Pacific

Asia-Pacific was the fastest-growing region globally during the review period (2016-2020), recording growth at a CAGR of 2.7%. China was the market leader, accounting for 52.9% of the region’s motor insurance premiums in 2020. To help you make the most of this significant growth, GlobalData’s has put together a comprehensive overview of the Asia Pacific motor insurance industry, including market sizing and forecasts. Read ‘Motor Insurance Industry Outlook in Asia Pacific’ for:
  • Analysis of leading insurers in the region
  • Details on regulatory requirements, including licensing rules, capital requirements, taxation regimes, and ownership quotas
  • Analysis of the impact of COVID-19 on the industry
  • Insight into key trends, technology developments, and potential disruptors in the motor insurance industry
  • Recent M&A activity in the motor insurance industry
Improve your business strategy with our extensive report. Download it for free, now.
by GlobalData
Enter your details here to receive your free Report.

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