Paris, France-based insurance giant AXA is to sell its Swiss Privilege franchise in Hong Kong, known as AXA Wealth Management (HK) Ltd, to a Hong Kong-based investment holding company, Jeneration Holdings Ltd in a deal worth around HK$2.2bn (€237 m, US$281.3m).
In a statement, AXA said it was selling the operation as part of its group strategy of “portfolio simplification”, and that it was expected it would enable its AXA Hong Kong operation to better focus on its “core life agency and broker channels”.
It said the deal was subject to the usual conditions, including regulatory approvals, and was expected to be finalized by the end of this year “or early 2019”.
“AXA remains committed to grow [its]life, health and property and casualty businesses in Hong Kong, across all customer segments, including high net-worth individuals,” the company said in a statement announcing the deal, posted at the end of December.
and its affiliates invest in the financial services, technology, consumer and healthcare sectors in Asia.
AXA Wealth Management (HK) is currently a licensed life insurer in Hong Kong, managing individual policies through a network of salaried consultants under the Swiss Privilege brand.
In 2016, the operation represented approximately 2% of AXA Hong Kong’s life and savings new business annual premium equivalent.
Other recent AXA portfolio simplifications
Over the last two years AXA has sold off a number of other “non-core” operations, including its UK non-platform investment and pensions business, AXA Wealth, and its Sunlife direct protection business, to Phoenix Group Holdings, a FTSE 250-listed insurance fund consolidator; its Isle of Man-based offshore life business to the Life Company Consolidation Group; and its Elevate platform operation to Standard Life.