Germany's Allianz SE (ALV.XE) and HSBC Holdings PLC (HSBA.LN)
Friday said they signed a 10-year exclusive bancassurance
distribution agreement for life insurance in Asia.
MAIN FACTS:
-Allianz life insurance products will be distributed by HSBC in
China, Indonesia, Malaysia, Australia, Sri Lanka and Taiwan. Life
insurance products will be provided by strategic partners of
Allianz in Brunei and the Philippines.
-The up-front cash consideration by Allianz amounts to $100.5
million (EUR77 million).
-The agreement will allow Allianz to enlarge its bancassurance
distribution reach to an additional segment of retail banking
customers in its major growth markets in Asia Pacific.
In 2011, around 40% of gross written premiums in life insurance
in Asia derived from bancassurance.
-"We expect a rising demand for life insurance products in Asia
and more customers will benefit from our long years of experience
in this field," said Manuel Bauer, Allianz management board member
for insurance growth markets.
-As part of the overall strategic partnership, the assets and
liabilities of HSBC Life (International), Taiwan Branch, will be
transferred to Allianz Taiwan Life Insurance for a consideration of
$18 million (EUR14 million). This doesn't include he statutory
deposits of approximately $10 million (EUR8 million).
-Write to the Frankfurt Bureau at
djnews.frankfurt@dowjones.com
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