HSBC Insurance (Singapore) has agreed to dispose of its group term life insurance and group medical insurance portfolios in Singapore to AXA Life Insurance Singapore, for an undisclosed sum.
According to the underwriter, the gross asset value of these portfolios was nearly S$23.5m (almost $19.3m), as of 31 December 2012.
Further, HSBC bank has extended its existing exclusive 10-year bancassurance agreement with AXA Asia SAS and AXA General Insurance Hong Kong, pertaining to the general insurance products.
Under the terms of the extended agreement, AXA will distribute the group term life and medical insurance products to the bank's customers in Singapore. AXA Singapore and AXA Insurance Singapore will pay commissions on product sales to the bank.
Sale of the Singapore insurance portfolios is part of HSBC's strategy to cut costs by offloading non-core assets.
Pending receipt of regulatory approvals, the transaction is likely to conclude by the end of this year.
Most recently, HSBC disposed of its US Canadian closed life insurance operations to a wholly-owned subsidiary of Bermuda-based Enstar Group (ESGR) for $181m.
