Lombard Int’l acquires HSBC Life Assurance portfolio
Lombard International Assurance, the Luxembourg- and Philadelphia-based provider of life insurance-based wealth products for high-net-worth investors, said it has agreed to acquire a portfolio of life insurance policies from HSBC Life Assurance (Malta), a wholly-owned subsidiary of HSBC Bank Malta.
The insurance portfolio from HSBC Life Assurance forms part of a larger portfolio which was acquired by the bank in 2014 for nil consideration, and is being sold for €1, Lombard International said in a statement today.
The acquisition is subject to regulatory approval, and is expected to complete in 2018, the company said.
At the end of September, the insurance portfolio being transferred had total funds under management of €500m, according to Lombard International. In 2016 it generated gross annual management charges of approximately €780,000, the company noted in its statement.
In addition to the €500m in funds under management, the HSBC Malta deal will see Lombard International acquire a list of Italian clients from the Malta bank.
Axel Hörger, chief executive of Europe for Lombard International, noted that the acquisition of the HSBC Malta portfolio followed the recent acquisition of Zurich Eurolife last year, and the announcement of a new joint venture in Mexico.
These developments, coupled with its growing Asia presence and its tie-up with a Philadelphia-based insurance entity, Philadelphia Financial, as a result of its acquisition in October 2014 by the US-based Blackstone private equity firm, he added, meant that the company is “increasingly able to serve our clients successfully on a global scale”.
Lombard has been growing rapidly by acquisition since it was acquired by Blackstone. As of the end of last year, it had global assets under administration of more than €77.5bn, overseen by a global staff number of more than 600 people who specialise in more than 20 jurisdictions.
Blackstone acquired Lombard International from Friends Life, which in turn had bought it from its founders almost exactly 10 years earlier (2004). These founders included John Stone, who left the company to join Blevins Franks, the expatriate-focused advisory firm now based in London, but which for many years was based in Malta.