HSBC Life Assurance Malta has entered into a portfolio transfer agreement with HSBC Life (Europe) (HLE) for the acquisition of HLE's insurance policy book for nil consideration.
Pending receipt of concerned regulatory approvals, the transaction is likely to complete during the fourth quarter of 2013. Further terms of the transaction have not been disclosed.
Incorporated in 1994 and having started business in 1996, HLE operates as an Irish domiciled company regulated by the Central Bank of Ireland as a life insurance company.
The conglomerate is licensed to write unit linked and protection business and trades as a wholly owned subsidiary of HSBC Holdings plc.
The portfolio comprises mostly unit linked investment policies, which are marketed throughout the EU under the Freedom of Services provisions, and a closed book of life protection business with a total fund under management of approximately €1.1bn.
The proposed transfer of the insurance portfolio produced gross annual management charges (AMCs) of circa €2.75m during 2012.
Following completion of the transaction, HLE clients will continue to receive the high levels of service from another entity HSBC Life Assurance (Malta).
