accelerate its advance in Asia
UK bank HSBC’s expansion strategy in Asian life insurance markets
was advanced further in November with the conclusion of an
agreement with Hana Financial Group (HFG), one of Korea’s largest
financial services groups.
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The agreement was to acquire 50 percent less one share of its
wholly owned subsidiary, Hana Life Insurance, for a cash
consideration of KRW53 billion ($58.4 million).
One of the smallest of Korea’s 22 life insurance companies, Hana
Life reported premium income of KRW207 billion in its financial
year to 31 March 2007. This represented a market share of about 0.4
percent.
Commenting on the Hana Life deal, Clive Bannister, HSBC’s group MD,
insurance, explained that it tied in completely with HSBC’s aim to
expand in Asia and become a top ten global insurance player with a
focus on life and pensions.
The Hana Life deal was HSBC’s fourth insurance-related announcement
in Asia in the past three months. In September, the bank confirmed
a 10 percent stake in Vietnam’s leading insurance provider, Vietnam
Insurance, formalised an agreement to establish a life insurance
joint venture in India that will have access to 40 million
customers nationwide, received approval to form a joint venture
insurance company in China and opened a life insurance office in
Taiwan. In October, HSBC also launched a new insurance brokerage
service in the Middle East.
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By GlobalDataHana Life provides an ideal platform in Korea’s growing
bancassurance sector for HSBC. Among its numerous subsidiaries, HFG
owns Korea’s third-largest commercial bank, Hana Bank, which
operates more than 700 branches and has approximately 7 million
customers.
HSBC’s own banking operation in Korea operates 11 branches and five
commercial banking centres and has a staff of approximately
1,350.
Hanna Life was established in 2003 as a joint venture between
Allianz and Hana Bank. Allianz sold its 50 percent stake in Hanna
Life in May, but continues to have a strong presence in the country
via its wholly owned unit, Allianz Life Korea, Korea’s
fourth-largest life insurance company.
