HSBC sells insurance businesses to AXA and QBE

AP News
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Posted: Mar 07, 2012 6:43 AM
HSBC sells insurance businesses to AXA and QBE

HSBC and its subsidiary Hang Seng Bank are selling insurance businesses in Hong Kong, Singapore, Argentina and Mexico to a pair of buyers for $914 million.

HSBC said Wednesday that AXA Group will pay $494 million for general insurance businesses in Hong Kong, Singapore and Mexico.

QBE Insurance Group is paying $420 million for Hang Seng General Insurance (Hong Kong) and HSBC La Buenos Aires Seguros in Argentina.

Hang Seng Insurance is owned by Hang Seng Bank, in which HSBC has a controlling stake of 62 percent.

HSBC chief executive Stuart Gulliver said the sales would release capital to invest in core businesses, including building up the bank's wealth management services.

HSBC Holdings shares were up half a percent at 551.1 pence in London.