HSBC Bank Malta p.l.c announced that HSBC Life Assurance (Malta) Limited, a wholly-owned subsidiary of the Company, has agreed to enter into a Portfolio Transfer Agreement with HSBC Life (Europe) Limited (HLE) for the acquisition of HLE’s insurance policy book for nil consideration. The transaction is expected to complete in the fourth quarter of 2013 subject to regulatory approvals.
HLE is an Irish domiciled limited company, incorporated in 1994, which commenced business in 1996. It is regulated by the Central Bank of Ireland as a life insurance company authorised to write unit linked and protection business (Class I and Class III business) and is a wholly owned subsidiary of HSBC Holdings plc.
The portfolio consists mainly of unit linked investment policies sold across the EU under the Freedom of Services provisions. These policies have a total funds under management of circa €1.1 billion. The portfolio also includes a closed book of life protection business. The insurance portfolio being transferred produced gross Annual Management Charges ("AMCs") of approximately €2.75 million in 2012.
This transaction provides HSBC Life Assurance (Malta) with additional benefits of scale while ensuring that existing HLE clients continue receiving the highest levels of service from another HSBC entity. The transfer project will be carefully managed by senior management on each side to ensure an orderly handover with minimal impact on the affected clients.