Life Insurance Quotes

HSBC to reduce non-life insurance holdings

10/10/11

According to Bloomberg, HSBC is considering selling between a reported $1 and $1.5 billion worth of non-life insurance assets. The assets, which are likely general insurance products offered in Asia and Latin America, have not produced the gains HSBC originally predicted.

The announcement by HSBC follows the sale of holdings in the United States last year that reportedly gained the company some $2.4 billion in tax benefits. HSBC's most recent annual report noted that non-life insurance premium gains were down about $100 million. Approximately 75 percent of HSBC's non-life insurance holdings are in Asia and Latin America, the source noted.

HSBC is cutting jobs and selling holdings in an effort to conform to new European banking capital regulations. The source notes that European lenders will have to raise approximately $611 billion by 2019 in order to meet the new parameters.

According to the Insurance Information Institute, just one in three Americans held an individual life insurance policy in 2010. The industry, seeing some of the lowest levels of participation in decades, has been forced to adapt, creating new hybrid products and trimming its participation in some markets, as in the case of HSBC.

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