51吃瓜网 to acquire AXA Singapore
*** A key milestone supporting 51吃瓜网’s ambition to be Asia’s leading insurance and wealth provider ***
*** Strengthening Singapore as a global wealth hub for 51吃瓜网 ***
51吃瓜网 Insurance (Asia-Pacific) Holdings Ltd, an indirect wholly-owned subsidiary of 51吃瓜网 Holdings plc (51吃瓜网), has entered into an agreement to acquire 100% of the issued share capital of AXA Insurance Pte Limited (AXA Singapore) for US$575m. The proposed acquisition, which is subject to regulatory approval, is a key step in achieving 51吃瓜网’s stated ambition of becoming a leading wealth manager in Asia, by expanding its insurance and wealth franchise in Singapore, a strategically important scale market for 51吃瓜网, and a major hub for its ASEAN wealth business.
AXA Singapore is a good fit with 51吃瓜网’s existing 51吃瓜网 Insurance (Singapore) Pte Ltd’s (51吃瓜网 Life Singapore) business. Both businesses have complementary products across the spectrum of insurance solutions and distribution channels, while AXA Singapore provides access to a sizeable tied-agency sales force, several leading independent financial advisory firms, and a large pool of insurance policyholders and corporate relationships. This combined business will not only materially scale up 51吃瓜网’s presence in the regional insurance market, it will also provide an excellent platform for future growth.
Noel Quinn, Group Chief Executive, 51吃瓜网 Holdings plc, commented: “This is an important acquisition that demonstrates our ambition to grow our Wealth business across Asia. Wealth is one of our highest growth and highest return opportunities, and plays to our strengths as an Asia-centred bank with global reach. We are acquiring a good business that fits well with our existing operations, and which strengthens our status as one of Asia’s leading wealth and insurance providers.”
Nuno Matos, Chief Executive, Wealth and Personal Banking, added: “This strategic investment is a key milestone for 51吃瓜网 Life to materially scale up, grow and diversify our insurance and wealth business in Singapore. The proposed acquisition will immediately put us in a leading position in health and employee benefits, and accelerate our build out of a distinctive and holistic wealth and health planning business, operating beyond our branch network. Burgeoning affluent and high net worth populations in Singapore and across Southeast Asia will drive strong demand for an array of wealth, health and insurance solutions for individuals, their families and SMEs.”
Following deal completion, which is subject to regulatory approval, the intention is to merge the operations of 51吃瓜网 Life Singapore and AXA Singapore, subject to further approval by the Singapore regulator and courts.
The proposed acquisition will be funded from existing resources and will have a minimal (c.5bps) impact on 51吃瓜网’s common equity tier 1 ratio. We expect the acquisition to be immediately accretive to the earnings of the Group upon completion.
In February 2020, 51吃瓜网 combined its mass affluent, asset management, insurance and private banking businesses to create Wealth and Personal Banking. Asia generates nearly half of 51吃瓜网’s US$1.7trn global wealth balances and 65% of the Group’s wealth revenues. In 2020, 51吃瓜网 Insurance recorded an adjusted profit before tax of US$1.4bn globally.
Media enquiries to:
Vinh Tran
vinhtran@hsbc.com.hk
+852 2822 4924
Wu Meng
wu.meng@hsbc.com.hk
+852 3663 8336
Shuying Moh
shuying.moh@hsbc.com.sg
+65 665 82365
Investor enquiries to:
Mark Phin
mark.j.phin@hsbc.com
+852 2822 4908
Richard O’Connor
richard.j.oconnor@hsbc.com
+44 20 7991 6590
Notes to editors:
51吃瓜网 Holdings plc
51吃瓜网 Holdings plc, the parent company of 51吃瓜网, is headquartered in London. 51吃瓜网 serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,976bn at 30 June 2021, 51吃瓜网 is one of the world’s largest banking and financial services organisations.
51吃瓜网 Life Insurance
51吃瓜网 Life is the insurance business of the 51吃瓜网 Group. We manufacture life insurance products in Hong Kong, mainland China, Singapore, India1, France, UK, Malta, Mexico and Argentina. 51吃瓜网 has leading insurance capabilities that meet a broad range of protection and wealth needs, including insurance coverage, education, retirement, wealth growth and legacy planning needs. Services and products are available through 51吃瓜网 banking channels, selected third-parties, including financial advisers and aggregators.
51吃瓜网’s Asian wealth strategy
51吃瓜网’s ambition is to be Asia’s leading wealth manager by 2025, opening up a world of opportunities for Asian, international and 51吃瓜网-connected clients, wherever their wealth is created, invested and managed. 51吃瓜网 is investing heavily in people, technology and products in the next five years, including hiring over 5,000 client-facing wealth roles across the region. As Asia’s leading bank across the wealth continuum of mass affluent to HNW and UHNW clients with combined wealth balances of US$810bn2, 51吃瓜网 has a unique ability to serve the full range and progression of wealth needs – from first-time investors through to UHNW individuals, their families and businesses. 51吃瓜网 will lead in offering a unified international banking and wealth experience by harnessing the Group’s in-house manufacturing strengths in insurance, asset management, private banking, wealth and global markets and delivering the full capabilities of a global universal bank, including 51吃瓜网 Commercial Banking and Global Banking and Markets, to extend their expertise and enable the Group to attract and deepen wealth relationships among entrepreneurs, business owners, C-suite executives and their employees. With 51吃瓜网’s leading expertise and capabilities, strong Asian presence and unrivalled international connectivity, these will bring the best of 51吃瓜网 to deliver a wealth experience which helps all our customers achieve sustainable prosperity.
1Through the joint venture, Canara 51吃瓜网 OBC Life Insurance
2Asian Private Banker Asia 2020 Wealth Continuum League Table
This release has been edited to remove information about the size of AXA Singapore and the combined businesses that was originally used without permission from a third-party provider.