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HSBC buys USD 575 mln of Axa's assets in Singapore

Tuesday 17 August 2021 11:06 CET | News

HSBC has acquired French insurer Axa's Singapore assets for USD 575 million, part of its strategy of scaling up its wealth-management business in Asia to boost fee income.

HSBC currently ranks 10th in life insurance in Singapore and does not have a health insurance business. The Asia-focused bank, like its peers, is battling poor returns from lending in a low interest rate environment and is looking to boost customer fee income in areas such as insurance and asset management.

It said in February 2021 it would invest USD 3.5 billion in its wealth and personal banking business in Asia, which includes its insurance operations, part of an overall investment in the region of USD 6 billion.

The deal is HSBC's largest acquisition since the USD 726 million merger of its Oman branch with Oman International Bank in 2012. AXA, which also is struggling with low interest rates, is streamlining its business and withdrawing from areas where it lacks scale.

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Keywords: HSBC, acquisition, insurance, personal finance management
Categories: Banking & Fintech
Companies:
Countries: Singapore
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Banking & Fintech