HSBC receives final approval for jointly held insurance company in China

09 June 2009

HSBC Insurance (Asia) Limited has received final approval from the China Insurance Regulatory Commission (CIRC) to launch a jointly held insurance company with Beijing-based National Trust Limited (National Trust).

HSBC plans to take the new company new company, HSBC Life Insurance Company Limited, operational between October and December 2009.

HSBC Insurance (Asia-Pacific) Holdings Limited already has four underwriting companies - HSBC Insurance (Asia), HSBC Life (International), HSBC Insurance (Singapore) and HSBC Amanah Takaful (Malaysia) where it holds a 49-per cent stake.

Its shareholdings also include one share less 50 per cent of Hana HSBC Life Insurance in Korea, 26 per cent of Canara HSBC Oriental Bank of Commerce Life Insurance in India and 10 per cent of Bao Viet Holdings in Vietnam. In Asia, the HSBC Group also holds a 16.78-per cent stake in Ping An Insurance of mainland China and has representative offices in Beijing, Shanghai and Guangzhou.

HSBC Insurance and National Trust will be equal shareholders with a 50-per cent stake each in its registered capital of RMB500 million, funded equally by both shareholders.

David Fried, chairman and CEO, HSBC Insurance for Asia-Pacific, said, "This investment will allow us to further broaden our insurance offering in China where the GDP growth is estimated to be 7.8 per cent this year and the growing personal wealth base will drive the use of insurance products."