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HSBC quits the insurance game

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HSBC quits the insurance game

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HSBC is selling its insurance businesses to France’s AXA and Australia’s QBE.

The price is the equivalent of 696 million euros in cash.

It is the latest move by Europe’s biggest bank to get rid of non-core assets.

This helps AXA, Europe’s second largest insurer, to grow in emerging markets – specifically Asia.

QBE gets the business in Argentina and access to customers in Hong Kong and mainland China.

Under the agreements HSBC will earn commissions and profit-related payments on top of the cash value of the deal.

In May HSBC announced plans to sell non-core parts of the company. It will shrink its network of 475 US branches to focus on the international business of US clients and sell several European retail banking businesses including those in Poland and Russia.

HSBC has cut 11,000 jobs and sold 19 businesses as part of plans to cut annual costs by 2.66 billion euros.