HSBC Life sustains strong growth with stable outlook

S&P also expects it to continue to operate as a core subsidiary of HSBC’s APAC banking arm.

HSBC Life is expected to maintain strong growth and a central role in HSBC’s wealth strategy over the next two years, supported by steady profitability, high dividend payouts, and a solid capital position. 

S&P Global Ratings said the insurer’s outlook remains stable, with expectations that it will continue to operate as a core subsidiary of HSBC’s Asia-Pacific banking arm.

The insurer is forecast to keep dividend payouts at about 100% to 110% of net income through 2026, backed by a healthy solvency position. 

In 2024, HSBC Life reported net income of HK$5.9 billion and paid HK$9.0 billion in dividends to its parent.

S&P expects HSBC Life to maintain capital above its risk-based requirements at the 99.5% confidence level over the next 24 months. 

The insurer’s large participating business (around 90% of its in-force book) provides flexibility to adjust non-guaranteed dividends, helping absorb investment volatility. 

This is supported by Hong Kong’s tightened rules for participating policies introduced in 2024, which require stronger governance and clearer segregation of participating assets.

HSBC Life is also expected to hold its strong competitive position in the Hong Kong market. 

As of June 2025, it was the city’s largest life insurer by weighted new business, with a market share of about 20%. 

Weighted new business premium grew 39% year-on-year in the first half of 2025, driven by its brand strength and distribution network across HSBC’s branches and digital channels.