Latest news with #HSBCLife
Yahoo
04-07-2025
- Business
- Yahoo
Chesnara to acquire HSBC Life UK in £260m deal
Life and pensions consolidator Chesnara has agreed to acquire HSBC Life (UK) for £260m ($354.9m) from HSBC Group. HSBC Life (UK) is a specialist provider of life protection and investment bonds in the UK, with Eligible Own Funds of £314m as of 31 December 2024. The transaction encompasses all in-force life insurance policies and investment products written by HSBC Life (UK). HSBC Life, a subsidiary of HSBC Bank since 1988, offers insurance products through HSBC banking channels and selected third parties, including financial advisers. Following the completion of the deal, approximately 230 roles supporting HSBC Life (UK) are anticipated to transfer to Chesnara. The deal is expected to boost Chesnara's scale in the UK, adding approximately £4bn in assets under administration and around 454,000 policies. Chesnara CEO Steve Murray said: "The proposed acquisition of HSBC Life (UK) represents a material step up in scale for Chesnara Group. HSBC Life (UK) is a high-quality business operating in products that we know well and is capable, under our ownership, of generating substantial cash flows for many years. 'This highly accretive transaction will allow us to build on our strong, 20-year track record of uninterrupted dividend growth.' In a statement, Chesnara said the acquisition is projected to generate incremental lifetime cash of over £800m, with more than £140m expected in the first five years post-acquisition. Chesnara expects the deal to support a 6% increase in its final FY25 and interim FY26 dividends. The deal, which is part of HSBC Group's simplification strategy announced in October 2024, is expected to complete in early 2026. In December 2024, HSBC Continental Europe agreed to divest its French life insurance business, HSBC Assurances Vie (France), to Matmut Société d'Assurance Mutuelle in a cash transaction of €925m ($1.1bn). "Chesnara to acquire HSBC Life UK in £260m deal " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
03-07-2025
- Business
- Reuters
Chesnara to buy HSBC Life UK in $355 million deal
LONDON, July 3 (Reuters) - Life and pensions company Chesnara (CSN.L), opens new tab has agreed to buy HSBC's (HSBA.L), opens new tab UK life insurance business for 260 million pounds ($355 million) in cash, Chesnara said on Thursday. The sale of HSBC Life (UK) is the latest by the banking giant as it looks to simplify its business and improve returns under CEO Georges Elhedery. Chesnara said it expected to generate over 800 million pounds in additional lifetime cash flow from HSBC Life (UK), with annual cash generation exceeding 140 million pounds in the first five years. It said the deal would be funded from a combination of existing cash resources, the firm's revolving credit facility and a sale of new shares to existing shareholders. Chesnara said it intended to raise gross proceeds of about 140 million pounds through a rights issue of 79.5 million shares at 176 pence per share, with shareholders getting 10 new ordinary shares for every 19 shares they currently hold. Chesnara shares closed at 293.5 pence on Wednesday and were little changed in early London trading. The acquisition is expected to close in early 2026, subject to regulatory approvals. Chesnara, which was formed in 2004 and has operations in the UK and Europe, reported assets under administration of 14 billion pounds ($18.7 billion) as of December 31, 2024. ($1 = 0.7327 pounds)
Daily Mail
03-07-2025
- Business
- Daily Mail
HSBC sells British life insurance arm as bank's boss ramps up cost-cutting
HSBC has sold its UK life insurance arm, HSBC Life, to insurance firm Chesnara for £260million Policyholders with HSBC Life will be transferred over to Preston-based Chesnara. Chesnara expects the deal to add more than 450,000 new policies and £4million in assets under administration. The banking giant's new boss, Georges Elhedery, is on a mission to simply and streamline the business, offloading any operations which no longer fit its core focus. HSBC is undergoing a radical revamp under Elhedery since he took the helm in September. The bank has cut jobs, combined units and shuttered divisions. HSBC Life is a specialist life protection and investment bond provider, which had eligible own funds of £314million as at 31 December. Chesnara said it expected to generate over £800million in additional lifetime cash flow from HSBC Life, with annual cash generation exceeding £140million in the first five years. The firm said on Thursday it expects eligibility for FTSE 250 inclusion after boosting liquidity. The deal will be funded from a combination of existing cash resources, the firm's revolving credit facility and a sale of new shares to existing shareholders. Chesnara said it intended to raise gross proceeds of around £140million via a rights issue of 79.5million shares at 176p per share, with shareholders getting 10 new ordinary shares for every 19 shares they currently hold. Chesnara shares closed at 293.5p on Wednesday and were little changed in early London trading. The acquisition is expected to close early next year, subject to regulatory approvals. Chesnara, which was formed in 2004 and has operations in the UK and Europe, reported assets under administration of £14billion as of 31 December. Steve Murray, chief executive of Chesnara, said: 'The proposed acquisition of HSBC Life (UK) represents a material step up in scale for Chesnara Group. 'This highly accretive transaction will allow us to build on our strong, 20-year track record of uninterrupted dividend growth.' In recent years, HSBC has sought to simplify its structure and concentrate on core banking activities, notably in Asia, where it continues to deploy significant capital. In December, Canada Life announced it was transferring its bond business to Chesnara. Chesnara shares were up 0.21 per cent or 0.62p to 294.12p on Thursday, having risen 18 per cent in the last year. HSBC shares fell 0.3 per cent or 2.7p to 882.60p, having risen over 28 per cent in the last year.
South China Morning Post
16-04-2025
- Business
- South China Morning Post
HSBC to offer anti-ageing treatments, medical check-ups at Hong Kong wealth centre
HSBC, the largest lender in Hong Kong, will open a wealth centre in the second half of this year as planned, undeterred by the ongoing market turmoil triggered by the US-China trade war. Advertisement The wealth centre, which will also serve as a paramedical centre, will provide anti-ageing treatments, medical check-ups, as well as insurance, wealth management and vaccination services, as part of its strategy to tap the growing 'silver economy'. 'We take a long-term view of our investments [and] are not worried about short-term market volatility,' Daisy Tsang, CEO for Hong Kong and Macau at HSBC Life, said in an exclusive interview with the Post on Monday. 'We strongly believe in Hong Kong's potential as a hub for wealthy customers from mainland China and beyond to manage their wealth, insurance, retirement and legacy planning.' The new centre, the insurer's third, will be located in the heart of the city to make it convenient for visitors from the mainland and local residents living in the Greater Bay Area, she added. An HSBC ad is displayed at a tram station in Central. Photo: Elson Li HSBC Life opened its first wealth management centre in Hong Kong at K11 Musea in October 2021 followed by Hysan Place in February 2022. The demand for services at these two centres has been strong, Tsang said, pointing out that the number of clients using these centres more than doubled year on year in 2024. Advertisement Tsang said the new centre will offer hyperbaric oxygen therapy, which can heal damaged tissue by helping the body grow new skin, blood vessels and connective tissue.
