ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Companies

AIA to buy Bank of East Asia's insurance business

Acquisition expected to be completed by end of year

Bank of East Asia announced plans to sell its life insurance unit after pressure from activist investor Elliott Management for reforms to boost shareholder returns.   © Reuters

HONG KONG (Reuters) -- Hong Kong-based insurer AIA Group has entered into an agreement to buy the wholly-owned life insurance unit of Bank of East Asia (BEA) and has signed a 15-year distribution partnership with the lender for a total of about $650 million.

The acquisition of BEA Life is expected to complete by the end of this year, subject to regulatory approvals, AIA said in a statement on Wednesday.

BEA, whose main markets are Hong Kong and mainland China, announced plans in September to sell BEA Life after pressure from activist investor Elliott Management for reforms to boost shareholder returns.

BEA said it was expected to book a profit of about HK$1 billion ($129 million) from the divestment of the insurance business, and a part of that would be paid to the bank's shareholders.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more