OCBC Bank (Hong Kong) announced it will sell its entire 33.33% stake in Hong Kong Life Insurance for approximately HK$589.3 mn ($75 mn) to Yue Xiu Enterprises (Holdings) or a wholly owned subsidiary, pending regulatory approval. The deal values Hong Kong Life at a net asset value of HK$1.02 bn.
The transaction terms were determined through “arm’s length” negotiations between willing buyer and seller, factoring in net asset value and embedded value.
The sale remains subject to customary closing conditions, including regulatory clearance.
Following the sale, Hong Kong Life will no longer be an associated company of OCBC Hong Kong or its parent, OCBC Bank. The bank stated that the transaction will not materially impact its net tangible assets or earnings per share for the 2024 financial year ending Dec. 31.
OCBC previously attempted to sell the same stake in Hong Kong Life. In 2017, its subsidiary OCBC Wing Hang Bank (OWHB) agreed to sell its 33.33% holding to First Origin International.
However, the sale was canceled in October 2018 due to unmet closing conditions. The deal’s termination led to the forfeiture of an HK$710 mn deposit paid by First Origin to the sellers, including OWHB. Existing shareholders retained their ownership in the life insurer.
Established in 2001, Hong Kong Life Insurance is a joint venture among five local financial institutions: Asia Insurance Company Limited, Chong Hing Bank, CMB Wing Lung Bank Limited, OCBC Bank, and Shanghai Commercial Bank. Each of these institutions has served the Hong Kong community for over 50 years.
The company offers a comprehensive range of insurance products, including traditional savings insurance, universal life insurance, term life insurance, retirement plans, juvenile plans, medical and critical illness coverage, accidental and disability coverage, and group insurance.
Through an extensive network of around 130 distribution points comprising Chong Hing Bank, CMB Wing Lung Bank, OCBC Bank, and Shanghai Commercial Bank, Hong Kong Life provides integrated one-stop insurance and financial planning services to customers.
In recent years, Hong Kong Life has embraced digital initiatives to enhance customer experience. Notably, it became the first Hong Kong insurer to adopt “iAM Smart” for both customer identity verification and account login, streamlining online services.
The company has also been recognized for its innovative products and services. For instance, its Family Guardian Refundable Hospital Income Protection Plan, which includes a market-first Family Daily Hospital Income Benefit, received industry accolades.
