HSBC Holdings PLC (HSBA) - HSBC and Allianz in Asia
RNS Number : 6261P
HSBC Holdings PLC
26 October 2012
HSBC ENTERS LIFE INSURANCE DISTRIBUTION AGREEMENT WITH ALLIANZ IN ASIA
*** Allianz agrees to purchase Taiwan branch of HSBC Life (International) Ltd
The Hongkong and Shanghai Banking Corporation Limited ('HBAP'), a wholly-owned
subsidiary of HSBC Holdings plc, has entered into a 10-year bancassurance
agreement ('the agreement') with Allianz SE (Singapore) Branch through which
HSBC Group companies will distribute Allianz life insurance products in the
following markets across Asia ('the distribution countries'): Taiwan,
Indonesia, Malaysia and mainland China ('the key territories'), Australia, Sri
Lanka, Brunei and the Philippines. The arrangements for distribution of
products will be on an exclusive basis, subject to the exceptions noted
The agreement is conditional upon country-specific distribution agreements
being entered into in respect of the key territories between the HSBC Group
companies and Allianz Group companies listed below^2.
Consideration of US$100.5m in cash will be paid under the agreement by Allianz
(Singapore) Branch, specifically for the opportunity for Allianz Group
companies to be the exclusive providers of life insurance products distributed
by HSBC Group companies to customers in Taiwan, Indonesia and Malaysia.
HSBC Life (International) Limited ('HSBC Life'), a wholly-owned life insurance
subsidiary of HBAP, has also entered into a sale and purchase agreement to
sell the assets and liabilities, other than the statutory deposits of
approximately US$10m, of the Taiwan branch of HSBC Life to Allianz Taiwan Life
Insurance Company Limited. Consideration of US$18m in cash will be paid under
this agreement by Allianz Taiwan Life Insurance Co Ltd.
The agreement and the sale and purchase agreement, which is subject to
regulatory approvals, and four country-specific distribution agreements being
entered into in the key territories are expected to be completed no later than
the first half of 2013.
The total value attributed to the Taiwan branch of HSBC Life and the
opportunity for Allianz Group companies to be providers of life insurance
products distributed by HSBC Group companies to customers in Taiwan, Indonesia
and Malaysia is US$128.5m.
These distribution arrangements and the sale of the Taiwan life insurance unit
represent further progress in the execution of the HSBC Group strategy.
Media enquiries to:
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Notes to editors:
^1 In mainland China, Malaysia and Indonesia the arrangements are as follows:
· In mainland China, HSBC Group companies may continue to distribute life
insurance products of Ping An Insurance^a and HSBC Life Insurance Company
Limited^b, in addition to Allianz products.
· In Malaysia, HSBC Group companies may continue to distribute Islamic
insurance products of HSBC Amanah Takaful (Malaysia) Sdn Bhd^c under existing
distribution arrangements, in addition to Allianz products.
· In Indonesia, PT Bank Ekonomi Raharja Tbk, an HSBC Group company, is not
subject to the distribution arrangement agreed with Allianz.
a. HSBC holds a 15.6% stake in Ping An Insurance.
b. A joint venture in which HBAP and National Trust each holds 50%.
c. A joint venture in which HBAP holds a 49% interest, Jerneh Asia Bhd
(31%) and Employees Provident Fund Board (20%).
In the distribution countries other than the key territories, the granting of
full exclusivity will depend on local market regulations.
^2 The agreements will be between:
· In mainland China: HSBC Bank (China) Company Limited and Allianz China
Life Insurance Company Limited.
· In Indonesia: The Hongkong and Shanghai Banking Corporation Limited and
PT Asuransi Allianz Life Indonesia.
· In Malaysia: HSBC Bank Malaysia Berhad and Allianz Life Insurance
· In Taiwan: HSBC Bank (Taiwan) Ltd. & HSBC Insurance Brokers (Taiwan)
Limited and Allianz Taiwan Life Insurance Company, Limited.
Following the agreement becoming unconditional, there will also be agreements
· In Australia: HSBC Bank Australia Ltd. and Allianz Australia Life
· In Sri Lanka: The Hongkong and Shanghai Banking Corporation Limited and
Allianz Insurance Lanka Ltd.
In Brunei and the Philippines, Allianz Group companies may work with
non-Allianz Group companies to provide products to HSBC Group companies for
distribution in these markets.
The HSBC Group
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in
London. The Group serves customers worldwide from around 6,900 offices in over
80 countries and territories in Europe, the Asia-Pacific region, North and
Latin America, and the Middle East and North Africa. With assets of US$2,652bn
at 30 June 2012, the HSBC Group is one of the world's largest banking and
financial services organisations.
This information is provided by RNS
The company news service from the London Stock Exchange
MSCUNRWRUBARURA -0- Oct/26/2012 08:45 GMT
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