Standard Life plc (“Standard Life”) announces that terms have been agreed to sell its Hong Kong insurance business, Standard Life (Asia) Limited (“Standard Life Asia”)*, to Standard Life’s Chinese joint venture insurance business, Heng An Standard Life Insurance Company Limited (“HASL”).
The transaction is subject to obtaining local regulatory and other approvals in Mainland China and Hong Kong and it is anticipated that this could take up to 18 months. The final consideration will be calculated as at the date of completion and will be payable in cash.
Standard Life Asia was established in 1999 and is an indirect, wholly-owned subsidiary of Standard Life. It is registered as an authorised insurer in Hong Kong to provide long-term savings and investment solutions for customers and distributes products through strategic partnerships with independent financial advisers.
HASL conducts insurance business in China and was established in 2003. It is a joint venture between Standard Life and Tianjin TEDA International Holding (Group) Co., Limited (“TEDA”). It distributes a range of individual savings, investment and protection products, as well as group protection products, through tied agents, banks, employed sales force and broker companies. Standard Life continues to own 50% of HASL.
Commenting on the transaction, Sandy Begbie, Executive Lead (Insurance) for China**, Standard Life plc, said: “The proposed transaction is a major milestone in the development of our insurance business in Greater China, further strengthening our relationship with TEDA.
“It makes strategic sense to bring Standard Life Asia and Heng An Standard Life together. It will form a stronger, single base allowing us to continue to innovate and meet the evolving needs of our Chinese and Hong Kong customers, while also enhancing our growth potential.
“Today’s announcement emphasises Standard Life’s ambitions in Asia.”
Alan Armitage, Chief Executive, Standard Life Asia:
“By leveraging the existing expertise and talents, the Hong Kong operation will become an important gateway for Heng An Standard Life to the Hong Kong insurance market. The proposed transaction is an important strategic development which will allow us to further develop our proposition for customers and grow our presence in the region.”
Zhenyu Liu, General Manager, Heng An Standard Life:
“Heng An Standard Life continues to go from strength to strength and, once the transaction is complete, it will be another important step for the business, allowing access to more markets. It will also result in HASL becoming a Sino-foreign joint venture insurance company with insurance licences for serving both Mainland China and Hong Kong customers.”
Notes to editors:
* Standard Life Asia is a wholly owned subsidiary of Standard Life Oversea Holdings Limited which is, in turn, a wholly owned subsidiary of Standard Life plc. Standard Life Asia does not include Standard Life Investments’ operations in the region.
** Sandy Begbie is Chief People Officer at Standard Life and is also a Director of Standard Life Oversea Holdings Limited.
About Standard Life plc
• Standard Life was established in Edinburgh in 1825. Today it is a leading investment company helping people to invest and manage their money through the provision of active asset management and long-term savings and investment propositions.
• The company employs 6,300 people internationally – through businesses in the UK, Europe, North America, Asia and Australia.
• Around 4.5 million customers and clients across 45 countries trust them with their financial future – and they are responsible for the administration of £357 billion of their assets. Standard Life Investments actively manages £278 billion worldwide.
• Standard Life also supports over 25 million customers through its Indian and Chinese associate and joint venture businesses.
• Standard Life is listed on the London Stock Exchange and has around 1.2 million individual shareholders across the world.
• Wherever Standard Life operates in the world, they are motivated by a sense of responsibility. It’s what helps them to be a sustainable business. They’re proud to be listed as a leader for corporate sustainability in their industry in the Dow Jones Sustainability Indices (DJSI World and DJSI Europe).
About Standard Life (Asia) Limited
• Standard Life (Asia) Limited was established in 1999 and registered as an authorised insurer in Hong Kong. It is a wholly-owned subsidiary of Standard Life and committed to the Hong Kong market.
• Partnering with independent financial advisers, Standard Life Asia provides long-term savings and investment solutions to approximately 48,000 customers.
• It currently collaborates with 26 reputable fund houses to offer over 280 investment choices on its investment-linked insurance scheme platform to help customers achieve their wealth and retirement goals.
About Heng An Standard Life
• Standard Life entered the Chinese market in 2003 and formed a joint venture business with Tianjin TEDA Investment Holding Co. Ltd - Heng An Standard Life.
• At the end of December 2016, HASL has over 1,200 employees and 6,700 financial consultants. It operates 82 sales offices across 64 cities and 8 provinces, serving over 5 million customers in Mainland China.
• HASL is a highly regarded company in the market gaining various awards such as “Most Trustable JV” (Hexun.com), “Best Insurance Brand” (Sohu.com), “Best Social Benefit Supporter” (sina.com).
All figures as at 31 December 2016.