10th Mar 2016 09:12
(Correcting that the Hong Kong division of DirectAsia has 29,000 customers.)
LONDON (Alliance News) - Hiscox Ltd, which provides insurance to retail and business customers, on Thursday said it will look to grow DirectAsia's operations in Singapore and Thailand, after agreeing to sell the unit's Hong Kong division to Well Link Group Holdings Ltd.
DirectAsia, primarily a motor insurer, was established in 2010 in Singapore before expanding into Hong Kong in 2012 and Thailand in 2013. Including the Hong Kong operations, the company has over 75,000 customers and employs around 200 people.
The Hong Kong division generated USD8.0 million of gross written premium in 2015, has 29,000 customers, and employs 40 people.
Hiscox said that Well Link Group Holdings is backed by an investor group with interests in insurance broking, corporate and customer finance, securities and futures brokerage, and asset management. It provided no financial details about the disposal agreement.
"The Hong Kong division of DirectAsia is a business with a great team and a distinctive business model, which has grown its premium income strongly since launch. However the focus for DirectAsia is on our core Singapore and Thailand markets where we see significant growth opportunities, and this transaction allows us to focus our energy and investment on those markets," Bob Thaker, managing director, DirectAsia Group, said.
The deal is subject to regulatory approval from the Office of the Commissioner of Insurance in Hong Kong.
Shares in Hiscox were down 1.4% at 930.00 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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