HSBC sells insurance, seeks additional Vietnam insurer
17-MAY-2008 Intellasia | Thanhniennews
May 17, 2008 - 7:00:00 AM
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HSBC Holdings Plc, Europe's biggest bank by market value, plans to start selling life insurance next month through a joint venture in India.
The venture, owned with Canara Bank and Oriental Bank of Commerce, is licensed to sell eight life-insurance and savings products and is "going very well," Clive Bannister, HSBC's London-based head of insurance, said.
The bank, which bought a 10% stake in Vietnam's Bao Viet Insurance & Finance Group in September for US$255 million, will use its option to buy an additional 8% in the biggest state-owned insurer by June 2009, he said.
HSBC has a target of gaining 20% of earnings from insurance "over time," said Bannister.
The division contributed pretax profit of US$3.1 billion or 13% of earnings last year, compared with 10%.
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