Deal creates gateway into market
Standard Life moves to bolster Hong Kong presence
The move is designed to consolidate and grow its operations in the region.
The transaction is subject to obtaining local regulatory and other approvals in mainland China and Hong Kong and 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.
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% of HASL.
Commenting on the transaction, Sandy Begbie, executive lead (Insurance) for China, Standard Life, said: “The proposed transaction is a major milestone in the development of our insurance business in Greater China, further strengthening our relationship with TEDA.
“It makes strategic sense to bring Standard Life Asia and Heng An Standard Life together. It will form a stronger, single base allowing us to continue to innovate and meet the evolving needs of our Chinese and Hong Kong customers, while also enhancing our growth potential.
“Today’s announcement emphasises Standard Life’s ambitions in Asia.”
Alan Armitage, chief executive, Standard Life Asia, said: “By leveraging the existing expertise and talents, the Hong Kong operation will become an important gateway for Heng An Standard Life to the Hong Kong insurance market.
“The proposed transaction is an important strategic development which will allow us to further develop our proposition for customers and grow our presence in the region.”
Zhenyu Liu, general manager, Heng An Standard Life: “Heng An Standard Life continues to go from strength to strength and, once the transaction is complete, it will be another important step for the business, allowing access to more markets.
“It will also result in HASL becoming a Sino-foreign joint venture insurance company with insurance licences for serving both Mainland China and Hong Kong customers.”