Bank of East Asia sells life insurance unit to AIA for $644m

BEA will distribute life savings products to retail clients in Hong Kong and the mainland.

The Bank of East Asia has sold its life insurance unit to AIA for $644m (HK$5b) and also agreed to enter into a distribution partnership with the insurer, according to a bourse filing.

The lender will distribute AIA's life and long-term savings products exclusively to its retail banking customers in Hong Kong and Mainland China for 15 years.

BEA Life and Blue Cross have also agreed to a portfolio transfer.

This move is part of BEA’s efforts to boost its profitability and shares. It expects to gain a profit of $129m (HK$1b) from the sale, according to a separate filing.

Read more: Bank of East Asia commences sale of life insurance arm