HSBC Holdings has entered into an agreement to acquire AXA Insurance Pte Limited for US$575 million to expand Singapore's insurance and wealth management business.

HSBC Holdings signed the acquisition agreement through its wholly-owned subsidiary HSBC Insurance（Asia-Pacific）Holdings Limited.

According to HSBC Holdings, the acquisition is essential to its ambition to become a leading wealth management player in Asia. Singapore is a strategically important market for the group, being an important hub for the group's wealth management business in ASEAN.

AXA Singapore is currently the eighth-largest life insurer in Singapore in terms of annual new premiums. It is also the fifth-largest player in property and casualty insurance. It has net assets of US$474 million, US$85 million in annual new premiums, and US$739 million in total premiums written. Earnings before tax last year were US$23 million.

HSBC Holdings noted that AXA Singapore is a good match for its HSBC Insurance (Singapore) Pte Ltd. The two businesses have complementary products, and AXA Singapore gives the group access to a sizeable sales force of insurance agents and relationships with many policyholders and companies. The combined business will be the seventh-largest life insurer and the fourth largest retail health insurer in Singapore, with over 600,000 life, health and property and casualty policies. (Lianhe Zaobao)