AXA S’pore acquisition to double HSBC’S life insurance market share

SINGAPORE: HSBC’S recent acquisition of AXA Singapore will double its share of the local life insurance market and comes as the bank aims to sharply lift invested assets here by 2025, says a top executive.

Nuno Matos, HSBC’S chief executive of wealth and personal banking, told The Straits Times that the acquisition allows the bank to reach more clients through an agency model, compared with just bancassurance previously.

“We are now conquering the open market and we will also immediately become a very relevant player in the employee health and benefits space.”

HSBC completed the acquisition for Us$529mil (Rm2.3bil) in February.

The combined business will create the seventh-largest life insurer based on annualised new premiums, said HSBC, which aims to be among the top five insurance providers here by 2025.

It is also investing around Us$3.5bil (Rm15.4bil) in Asia over the next few years to grow its wealth and personal banking business, which includes insurance, private banking and asset management.

Matos noted that wealth is increasingly a “360 world”.

“It is not just about investments; it’s also about protecting and legacy planning. It is a comprehensive set of capabilities and services for customers.”

The veteran banker, who joined HSBC in 2015, was visiting Singapore for the first time since taking on his current role in February last year.

He was among executives who relocated from London to Hong Kong last year as HSBC increased its Asia focus.

Asia accounted for over half, or Us$36bil (Rm159bil), of HSBC’S net new invested assets last year – up 138% from 2020.

Singapore is one of HSBC’S key regional markets alongside Hong Kong, mainland China and India. The bank has grown its invested assets here by double-digit annualised growth rates over the past three years.

Nearly half of assets under management in Singapore, including deposits, are held by offshore clients, said Matos, noting: “We continue to see our international client base in Singapore grow, largely contributed by overseas Indians and Chinese clients.”

He added that research found that Singapore will have around 1.7 million affluent customers – individuals with investable assets of at least US$50,000 (RM220,250) – by 2026.

“It’s simultaneously a local, regional and global wealth hub,” said Matos, who added that HSBC’S model for wealth means customers can bank and invest online but also get in-person advice.

“In today’s world, the number of physical branches is not as relevant. What is relevant is that you have the availability of the right people when clients want.”