10th May 2007 09:15
HSBC Holdings PLC10 May 2007 HSBC CHOOSES AVIVA FOR NEW GENERAL INSURANCE VENTURE HSBC Bank plc and Aviva plc today announced plans for the creation of a jointventure, under the 'HSBC Insurance' brand, that aims to be a top-10 player inthe UK general insurance industry^. Under the terms of the planned joint venture, HSBC Bank plc and Norwich UnionInsurance, the UK general insurance arm of Aviva plc, will underwrite anddistribute general insurance products to HSBC's 10.2 million customers in the UK. Approximately one-fifth of all UK consumer spend on financial services goes toinsurance products and the general insurance industry generated £36 billion inpremiums in 2005. Dyfrig John, Chief Executive Officer of HSBC Bank plc, said: "The proposed jointventure will bring together, in HSBC and Norwich Union, two of Britain's mosttrusted brands. We believe that combining HSBC's distribution network andNorwich Union's underwriting and customer management capabilities will createone of the best general insurance services the market has to offer. "It would be fair to say that HSBC has historically punched below its weight ininsurance but we have shown before that our customers want to stay with us if weoffer well serviced, good value products. The relationship with Norwich Unionwill offer customers a broad product range, great service and another compellingreason to make HSBC their preferred supplier for the full range of financialservices." Norwich Union and HSBC have had an underwriting relationship for 23 years. Atpresent, HSBC distributes protection, home, travel and car insurance productscreated by Norwich Union. The planned joint venture will strengthen and deepenthis relationship. Simon Machell, Chief Executive of Norwich Union Insurance, said: "I am excitedthat we are continuing to grow our relationship with HSBC. A closer associationwith HSBC will be excellent news for Norwich Union and its staff, and furtherstrengthens our position as the insurance partner of choice for today's leadingbrands. "This joint venture presents an excellent opportunity for us to combine ourgeneral insurance expertise with HSBC's strong brand, to help them maximise thevalue of their general insurance portfolio. Customers are increasingly turningto trusted brands for their insurance needs and by leveraging the HSBC brand wewill create a significant new force in the UK insurance market." As well as creating a joint venture, HSBC intends to sell Hamilton InsuranceCompany Ltd and Hamilton Life Assurance Company Ltd to companies within theAviva group. The Hamilton companies are currently owned by HFC Bank Limited, asubsidiary of US-based HSBC Finance Corporation. Hamilton Insurance Company Ltd and Hamilton Life Assurance Company Ltd provideprimarily a range of protection insurance products and had gross assets of £180million and £176 million as at 31 December 2006 respectively. Clive Bannister, HSBC's Group Managing Director, Insurance, said: "HSBC has seta target to double the contribution to global profits made by our insuranceoperations. Creating preferred strategic partnerships with leading generalinsurers is a key element of that plan. In the UK, an estimated £1 in every £5of financial services expenditure is spent on insurance. That is why we havechosen Norwich Union Insurance, the leading UK insurer with whom we already havea strong working relationship, to help HSBC satisfy its customers' insuranceneeds." All of the proposals remain subject to finalisation of definitive documentationas well as regulatory and other consents. The level of capital to be contributedby each party to the joint venture will be agreed and confirmed at a later date. Note to editors: ^ Target of top 10 UK general insurer ranking based on projected gross written premium HSBC Bank plcHSBC Bank is a wholly owned subsidiary of HSBC Holdings plc which isheadquartered in the UK. The HSBC Group serves over 125 million customersworldwide through some 10,000 offices in 82 countries and territories in Europe,the Asia-Pacific region, the Americas, the Middle East and Africa. With assetsof US$1,861 billion at 31 December 2006, HSBC is one of the world's largestbanking and financial services organisations. HSBC is marketed worldwide as 'theworld's local bank'. HSBC Insurance provides policies in over 40 countries and territories worldwideto its personal, commercial, corporate, institutional and private bankingcustomers. HSBC Insurance recognises the diverse needs of its customersworldwide and offers products and services to suit them including lifeassurance, general insurance, commercial risk and retirement provision. HSBC'sUK insurance business comprises life and non-life underwriting and distribution,broking and reinsurance (Irish Republic). The HSBC Group media centre at http://www.hsbc.com includes images, company andproduct information and a news release archive. Aviva plcAviva plc is the world's fifth-largest insurance group and the UK's largestinsurance services provider (based on gross worldwide premiums at 31 December2005), and is one of the leading providers of life and pension products toEurope, with substantial positions in other markets around the world.Aviva's principal business activities are long-term savings, fund management andgeneral insurance, with worldwide total sales of £41.5 billion and assets undermanagement of £364 billion at 31 December 2006 The Aviva media centre atwww.aviva.com/media includes images, company and product information and a newsrelease archive. Norwich Union InsuranceNorwich Union, part of the Aviva Group, is the largest insurer in the UK. It isthe largest general insurer with an overall market share of 15 per cent. Norwich Union insures one in five households, one in seven motor vehicles and more than800,000 businesses in the UK. It is also the leading long-term savings providerwith a life market share of about 12 per cent and more than 6 million customers. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSBC HoldingsAviva