Leading international law firm Clifford Chance has advised The Hongkong and Shanghai Banking Corporation Limited (HSBC) on a 10-year bancassurance agreement with Allianz SE (Singapore) branch to distribute Allianz life insurance products across Asia. The agreement covers distribution in the key territories of Taiwan, Indonesia, Malaysia and Mainland China, in addition to Australia, Sri Lanka, Brunei and the Philippines and will be on an exclusive basis subject to certain exceptions.
Separately, the firm also advised HSBC Life (International) Limited on the sale of the assets and liabilities of the Taiwan branch of HSBC Life to Allianz Taiwan Life Insurance Company Limited.
The total value attributed to the Taiwan branch of HSBC Life and the opportunity for Allianz Group companies to be providers of life insurance products distributed by HSBC Group companies to customers in Taiwan, Indonesia and Malaysia is US$128.5 million. This transaction is subject to regulatory approvals and is expected to be completed within the first half of 2013.
Earlier this year, the firm acted for HSBC Group and Hang Seng Bank on the sale of their general insurance businesses in Hong Kong, Singapore, Argentina and Mexico and related regional distribution agreements in Asia.
“We are delighted to be working with HSBC on another key insurance transaction,” said Roger Denny, Head of M&A for Asia. “More widely, there continues to be excellent M&A opportunities in the insurance and other financial services sectors as financial institutions look to divest their non-core businesses as part of their shift in strategic focus.”
Alex Erasmus, London lead partner, who advised on the bancassurance arrangements, commented, “Banks are a powerful distribution outlet for insurance firms, especially in a market like Asia where many countries in the region have relatively low take-up of life insurance products.”
Partner Amy Ho led the team on the sale and purchase agreement for the Taiwan branch of HSBC Life. Senior Associate support was provided by Riya Sen Gupta, Derek Hung and Satbir Walia.
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