The U.K.'s Standard Life has announced that terms have been agreed to sell its Hong Kong insurance business, Standard Life (Asia).
Standard Life has agreed to sell its Hong Kong arm, Standard Life Asia, to its Chinese joint venture, Heng An Standard Life Insurance Company (HASL).
The transaction is subject to obtaining local regulatory and other approvals in Mainland China and Hong Kong and it is anticipated that this could take up to 18 months. The final consideration will be calculated as at the date of completion and will be payable in cash.
Standard Life Asia was established in 1999 and is an indirect, wholly-owned subsidiary of Standard Life. It is registered as an authorised insurer in Hong Kong to provide long-term savings and investment solutions for customers and distributes products through strategic partnerships with independent financial advisers.
HASL conducts insurance business in China and was established in 2003. It is a joint venture between Standard Life and Tianjin TEDA International Holding (Group) (TEDA).
It distributes a range of individual savings, investment and protection products, as well as group protection products, through tied agents, banks, employed sales force and broker companies. Standard Life continues to own 50 percent of HASL.
«The proposed transaction is a major milestone in the development of our insurance business in Greater China, further strengthening our relationship with TEDA,» said Sandy Begbie, (pictured above) Executive Lead (Insurance) for China, Standard Life.
