HSBC Insurance (Asia) Ltd announced Thursday that it has received regulatory approval in China to fully acquire the life insurance joint venture in China.
HSBC Life China will become the third wholly foreign-owned life insurer in the country as China continues its financial reform and opening up process.
Since January 2020, China has started lifting foreign ownership restrictions on foreign-funded life insurance companies.
AIA received approval from industry regulators to convert its Shanghai division into a wholly-owned subsidiary of AIA Co in June 2020. In November of this year, Allianz China Life Insurance was able to transfer the 49 percent stake in CITIC Trust Co to Allianz (China) insurance holding.
HSBC Life China, headquartered in Shanghai, was founded in 2009 as a 50:50 joint venture between HSBC and the National Trust.
It now operates in 10 mainland China cities, namely Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai, Zhongshan and Shenzhen.
The life insurer offers a comprehensive range of insurance solutions that cover annuity, life insurance, critical illness and unit-linked insurance products.
Hu Min, general manager of HSBC Life China, said the company was particularly optimistic about the pension and health insurance segments.
China’s annuity industry’s market size is expected to reach 13 trillion yuan ($ 2.03 billion) by 2030, and the insurance sector will play an important role, she added.
According to the 2021 interim report, the insurance business accounts for about a third of the profits of HSBC’s global wealth management and private banking business, or 12 percent of net profit.