HSBC sells insurance portfolios in Singapore

HSBC Holdings has agreed to sell its group term life insurance and group medical insurance portfolios in Singapore to AXA Life Insurance Singapore Private.

The portfolios, under the bank's subsidiary HSBC Insurance (Singapore), were put at a gross asset value of 23.5m Singapore dollars at December 31st 2012.

"The sale of the Singapore group term life and group medical insurance portfolios represents further progress in the execution of the group's strategy," the company said in a statement.

The transaction is subject to regulatory approval and is expected to be completed this year.

It comes as HSBC works to streamline its business through the disposal of portfolios. Last month the company unveiled plans for its indirect wholly-owned subsidiary HSBC Finance Corp to sell its personal unsecured loan and personal homeowner loan portfolios.

The portfolios will be sold to SpringCastle Acquisition, a Delaware-based company owned by Springleaf Finance and Newcastle Investment Corp. in the second quarter of 2013.

HSBC also announced that its subsidiary, Hongkong and Shanghai Banking Corporation, has extended its existing exclusive 10-year bancassurance agreement with AXA Asia SAS and AXA General Insurance Hong Kong.

The agreement relates to general insurance products, to include the distribution of group term life and group medical insurance products to the Bank's customers in Singapore.

Shares fell 0.84% to 705.20p at 11:13 Wednesday.

RD