A unit of HSBC, the British-based, Asia-focused lending giant, has gained approval from a Chinese regulator to acquire the remaining 50% equity interest in HSBC Life Insurance Company.
Established in 2009, HSBC Life, as it is known, offers annuity, whole life, critical illness and unit-linked insurance products from offices in Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai, Shenzhen and Zhongshan.
“Growing our insurance business is key to delivering on our strategic priority of being a leading wealth manager in Asia,” David Liao, HSBC’s Asia-Pacific Co-CEO, said.
“Full ownership of HSBC Life China brings us closer to this goal, and shows our commitment to expanding our broader wealth offering.”
HSBC to Continue Investing in Mainland China Insurance Business
HSBC said it would continue to invest in its insurance business in mainland China, including in its Pinnacle personal financial planning unit.
The bank said it had hired 700 “wealth planners” in Beijing, Guangzhou, Shanghai, Hangzhou and Shenzhen. The bank said it would recruit up to 3,000 wealth planners by 2025.
“In tandem with HSBC Pinnacle … we will be able to significantly expand our capabilities to serve the growing wealth and insurance needs of our customers in China, particularly in the Greater Bay Area,” Greg Hingston, CEO designate at HSBC Global Insurance and Partnerships said.
In 2020, HSBC combined its retail banking and wealth management, asset management, insurance and private banking businesses to create Wealth and Personal Banking (WPB) which serves over 39 million customers globally.
The Shanghai office of the China Banking and Insurance Regulatory Commission gave the green light to the acquisition.
HSBC’s ambition is to be Asia’s leading wealth manager by 2025.
- George Russell
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