HSBC to offload US insurance manufacturing unit

Global banking group HSBC is to sell off the insurance manufacturing business of a US subsidiary to Enstar Group.

The company said on Thursday afternoon that its indirectly owned division, Household Insurance Group Holding Company, has entered into an agreement to sell the unit to Enstar for a total consideration of $181m in cash, though this price will be adjusted by the transaction closing date.

"The sale is expected to close by the end of the first quarter of 2013 and represents further progress in the execution of the HSBC Group strategy," the company said.

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"HSBC Group companies in North America will continue to support client needs and offer creditor and life insurance products to their customers through third party providers."

The sale is subject to regulatory approval, customary closing conditions and the capital of the business being at or below an agreed level as at the closing data, HSBC said.

BC