ACE Bids For HSBC Operations
Based in Bermuda and Switzerland, Ace Ltd. [ACE] is among the bidders for HSBC Holdings Plc’s non-life insurance operations, three people with knowledge of the matter told the Bloomberg financial news service yesterday [Jan.19].
Bupa Insurance Ltd., a UK health care group, is bidding for HSBC’s medical insurance business in Asia, said one of the people, who declined to be identified as talks are private.
Ace and Axa SA, Europe’s second-biggest insurer, are in discussions to buy the entire non-life unit, two people said. The business may be valued at about $1 billion in a sale, according to one of the Bloomberg sources.
HSBC and ING Groep NV are among European banks selling assets as lenders try to adjust to stricter global capital rules and an economic recovery fizzles. That’s providing an opening for insurers like Ace and Axa to speed up expansion in Asia, where economic growth is outpacing Europe and the US.
Ace last year bought Malaysia-based Jerneh Insurance Bhd. and New York Life Insurance Co.’s Hong Kong and South Korean life units.
The company is “open to seeking additional acquisitions,” Bermuda-based CEO Evan Greenberg said during an October conference call. He indicated that Ace may try to buy insurance operations that financial companies are seeking to sell.
ACE’s Bermuda operation is the original insurance company in the ACE Group of Companies and provides insurance protection for risks worldwide.
ACE Bermuda was established in 1985 by a consortium of 34 Fortune 500 companies to provide excess liability and directors and officers insurance when capacity was scarce.
Today, ACE Bermuda is a leading provider of high-level excess liability, directors and officers, professional liability and property insurance.
Through its subsidiaries, ACE Bermuda also offers political risk coverages and captive programmes.
