BestWeek Asia-Pacific: Analysts: Little Harm to Ping An as HSBC Struggles With Sale

  BestWeek Asia-Pacific: Analysts: Little Harm to Ping An as HSBC Struggles
  With Sale

Business Wire

HONG KONG -- January 15, 2013

While a deal that would see HSBC Holdings plc sell its 15.57% stake in China’s
Ping An Insurance Co. to a Thailand conglomerate appears to be in trouble,
industry analysts say Ping An would be little affected by such a setback,
according to a story in the new BestWeek Asia-Pacific.

HSBC is looking to sell its stake in Ping An to Thailand’s Charoen Pokphand
Group for HK$72.4 billion (US$9.4 billion), but state-owned China Development
Bank is seen as likely to reject financing for the deal as the bank is
reported to be doubtful about the sources of some of the funding. Doubts about
the funding are raising concerns about the China Insurance Regulatory
Commission’s approval of the deal, which is due Feb. 1. A.M. Best Asia-Pacific
senior financial analyst Michael Wong said “there should not be any major
effect on the operations of Ping An in the short term, except the negative
impact to the share price observed in the past week.” Wong also discusses
other aspects of the deal and what it means.

Also featured in BestWeek Asia-Pacific, a surprising lesson emerged from the
rubble of the Canterbury earthquakes for New Zealand’s life insurance industry
— insurers discovered that only 60% of Canterbury earthquake victims had life
insurance, according to Financial Services Council, a life and financial
services trade body. The finding suggests a significant coverage gap in the
country’s life market.

The Jan. 15 edition is available at www.bestweek.com/asia and
www.bestweek.com.

BestWeek is published by A.M. Best Co. for insurance professionals. To
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       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contact:

A.M. Best Company, Inc.
Iris Lai, +(852) 2827 3400
iris.lai@ambest.com
 
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