BEA completes sale of insurance arm to AIA
The sale was for approximately $655.56m in cash, including notional interest.
The Bank of East Asia (BEA) has announced that it has completed the sale of its insurance arm, BEA Life Limited, to AIA Group Limited.
On 24 March, the bank entered into a Share Sale and Framework Agreement with AIA in relation to the sale of BEA Life, as well as a Regional Distribution Agreement through which BEA forms a 15-year bancassurance partnership with AIA.
Closing of the Disposal took place on 1 September. The consideration paid by AIA to BEA under the Share Sale and Framework Agreement for the Disposal and the bank’s entry into and compliance with the distribution arrangements contemplated in the Regional Distribution Agreement was approximately HK$5.09b ($655.56m) in cash, including notional interest for the period from 30 September to closing.
The sale will let AIA have exclusive rights to provide life and long-term savings insurance solutions to the bank’s sizable retail customer base in Hong Kong and Mainland China. Meanwhile, BEA will leverage AIA’s extensive product expertise and resources to build out its regional omnichannel insurance distribution platform, generating sustainable fee income growth.