HSBC to sell insurance units for $914 mn

HSBC announced on Thursday that it will sell general insurance businesses in Hong Kong, Singapore, Argentina and Mexico, as part of its restructuring exercise.

The assets would be sold to AXA Group and QBE Insurance in a $914 million deal.

HSBC Insurance (Asia) Limited, HSBC Insurance (Singapore) Pte. Limited and HSBC Seguros, S.A de C.V., Grupo Financiero HSBC, all wholly-owned subsidiaries of HSBC Holdings plc, have entered into agreements to sell their general insurance portfolios in Hong Kong, Singapore and Mexico, respectively, to AXA Group, HSBC said in a statement.

HSBC Argentina Holdings S.A., and HSBC Participaciones (Argentina) S.A., each wholly-owned subsidiaries of HSBC Holdings plc, have entered into an agreement to sell HSBC Argentina Holdings S.A.'s general insurance manufacturing subsidiary, HSBC La Buenos Aires Seguros S.A., to QBE Insurance Group Limited.

Stuart Gulliver, HSBC Group Chief Executive, said: "This is a further step in the execution of our strategy. It will enable us to focus our capital and resources on the growth of our core businesses, including the building of our broader wealth management capabilities."

The transactions, which are subject to regulatory approvals, are expected to complete during the second half of 2012, although the transaction in Argentina may complete earlier.