SINGAPORE - AXA Singapore and HSBC have today entered into a conditional sale and purchase agreement where AXA will acquire the bank's Employee Benefits business in Singapore.
As part of the agreement, HSBC will also distribute AXA's Employee Benefits solutions under a 10-year bancassurance arrangement.
This acquisition furthers ties the business between AXA and HSBC after they commenced a long-term partnership in Property & Casualty business across Asia in the second half of 2012. With this acquisition, AXA Singapore will be providing group life and health products to both HSBC and AXA customers.
AXA's Employee Benefits client base will grow by some 28 per cent with the integration of this newly acquired business in the Employee Benefits sector.
CEO of AXA Life Singapore, Mr Glenn Williams said, "For AXA Singapore, this partnership translates into a doubling of our Employee Benefits business in terms of Gross Written Premiums and a portfolio expansion of 28 per cent by clients. Our customers are among a number of government-linked companies, MNCs and oil & gas companies. This combined portfolio makes us the 4th largest Employee Benefits solutions provider in Singapore."
CEO of AXA Insurance Singapore, Doina Palici-Chehab said, "Through this acquisition AXA will enhance its market position and will be able to respond even better to the needs of our existing and future clients.
The Employee Benefits protection will be sold through the intermediary networks of both the Life and General Insurance entities and we will put together our strengths to become a trusted advisor and protector to our intermediaries and clients".
All of HSBC's Employee Benefits staff will be offered positions at AXA.
The completion of the transaction is subject to regulatory approvals and is expected in the second half of 2013.