Hong Kong Life Insurance, which was jointly owned by five financial institutions, has been acquired by financial and technology investment fund First Origin International for HKD7.1 billion (US$914 million).
Aside from Asia Insurance, the other four selling firms were: Chong Hing Insurance, OCBC Wing Hang Bank, Shanghai Commercial Bank, and Wing Lung Agency. However, the banks are likely to enter into a product distribution deal with First Origin and continue selling Hong Kong Life’s insurance products through their branch networks.
Hong Kong Life Insurance was founded as a joint venture between the five companies in 2001. As of the third quarter of 2016, it was ranked 10th in terms of new business annual premium equivalent among the life insurers in the special administrative region.
According to data from Swiss Re
, Hong Kong has the second-highest life and health insurance premium-to-GDP ratio in Asia at 13.4% as of 2015. Growth prospects for the market are still strong, with 2016 premiums growth expected at around 9.2%.
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