Global banking giant HSBC is selling a part of its insurance business in Singapore to AXA Singapore, it said in a statement on April 3.
AXA will buy HSBC's employee benefits business, which was valued at around $23.5 million as at Dec 31. It consists of group term life insurance and group medical insurance.
After the acquisition, AXA Singapore will provide group life and health insurance products to both HSBC and AXA customers. HSBC will also distribute AXA's employee benefits insurance policies under a 10-year bancassurance arrangement.
AXA said that the purchase, expected to be completed in the second half of this year, will increase its employee benefits client base by about 28 per cent.
All the employees in HSBC's employee benefits unit will be offered jobs at AXA, the insurer added.