HSBC To Buy Controlling Shares In Two French Insurance Ventures

HSBC will buy controlling shares in two French insurance ventures from Swiss Life Holdings for $305 million. The British bank's acquisition of a 50.1 per cent share in life insurance company Erisa and Erisa IARD, which specializes in property insurance,

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HSBC will buy controlling shares in two French insurance ventures from Swiss Life Holdings for $305 million.

The British bank’s acquisition of a 50.1 per cent share in life insurance company Erisa and Erisa IARD, which specializes in property insurance, is part of the bank’s chairman Richard Lindsay’s stated aim that 20 per cent of its profits will be derived from insurance products by 2012.

“This signals HSBC’s ambitions in building up its insurance presence,” says Kent Yau of Core Pacific-Yamaichi. “International Insurance is a field that will really let HSBC ride on its commercial banking strengths, such as its networks and client relationships.”

The deal is expected to be closed by July 2nd, pending approval from French regulatory bodies.

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