Bank of East Asia (BEA) said it has agreed to sell its non-life insurance and healthcare services businesses to a unit of AIA Group for an aggregate HK$2.168 billion ($278 million).
BEA agreed to sell its medical, travel and general insurance services unit Blue Cross (Asia-Pacific) Insurance and all of its 80% interest in healthcare services unit Blue Care JV (BVI) Holdings to AIA.
“This transaction will expand the scope of BEA’s existing life bancassurance partnership with AIA, bringing benefits to customers, providing further sales opportunities and ultimately delivering additional value to shareholders,” BEA said in a statement.
The Hong Kong-based bank expected to book an aggregate profit of HK$1.534 billion upon completion of the deals, it said in a filing to the Hong Kong bourse.
Asia-focused AIA’s largest market is mainland China, which along with Hong Kong accounts for about half of its business.
BEA shares have risen 11.8% so far this year as of last close, while AIA shares have gained 1%.
“Our unrivalled multichannel distribution platform is at the heart of our strategy,” said Jacky Chan, AIA chief executive.
This week, BEA announced that all branches will be closed on Saturdays from this weekend due to rising Covid-19 cases in the city.
Previously, BEA temporarily closed 15 of its branches, and changed the branch opening hours for Mondays to Fridays to 9:00 a.m. until 4:00 p.m.
- George Russell