An entirely owned subsidiary of HSBC, HSBC Insurance, Asia Pacific recently put forth a proposition to acquire 100% of the issued share capital of AXA Insurance in Singapore worth USD 575 MN. If the proposed acquisition is successful, the merger will combine business operations of HSBC and AXA Insurance, subject to regulatory and Court approval.

Speaking on the recent proposition, Bryce Johns, group general manager and global chief executive of HSBC Life and Insurance Partnerships mentioned that the acquisition agreement will bring better digital and health insurance prospects for employees.

AXA Insurance, Singapore is the fifth-largest property and casualty (P&C) insurer, eighth largest life insurer and has a significant share in the health insurance market as well. With the growth and achievements of AXA Insurance, the merger would become seven largest life insurers based on annualized new premiums and fourth-largest retail health insurer as far as gross premiums are concerned.

HSBC, on successful completion of the acquisition deal, will commence on  the path to be among the top five insurance companies in Singapore by 2025.

The merger further plans on renaming its policies as HSBC policies and launching a range of investment products.

On the proposed acquisition, Wong Kee Joo, chief executive of HSBC Singapore revealed HSBC's objective to grow and scale up its customer experience and business operations. This will further aid HSBC to enhance wealth business operations in the region.

AXA Singapore was valued at USD 474 MN, annualized new premiums of USD 85 MN and gross written premiums of USD 739 MN. The insurance company recently made a profit before tax of USD 23 MN for last year.