Belgian insurance group Ageas has reached an agreement to sell its life insurance business in Hong Kong to Chinese asset manager JD Capital, headquartered in Beijing and listed on the Chinese National Equities Exchange and Quotations.
JD Capital will acquire Ageas’ subsidiary for some HKD10.68bn (€1.23bn).
The transaction is expected to be completed within the first half of 2016 and is subject to regulatory approvals, customary closing conditions and JD Capital’s shareholder approval.
Ageas said it will further strengthen its business in Asia by focusing on the 6 growth markets where it has launched joint ventures in Malaysia, China, Thailand and India, as well as partnerships recently established in the Philippines and Vietnam.
Ageas’ regional office for Asia will continue to be based in Hong Kong.
Bart De Smet, CEO of Ageas commented: “The decision to sell our business in Hong Kong follows a strategic review of our Asian activities in which we concluded that it is in the group’s best interest to realign our strategy towards the fast growing emerging markets of Asia.
“Over the past 8 years the business has created substantial value for our shareholders in a dynamic market. As part of JD Capital we believe the company will be in good hands to further develop on the Hong Kong market.”
Gary Crist, CEO Ageas Asia, added : “We remain firmly committed to the Asia region as demonstrated by our recent transactions in the Philippines and Vietnam.
“We continue to look for organic and inorganic growth opportunities, leveraging on our strengths in building joint venture partnerships with strong financial institutions.”