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HSBC BANK BERMUDA AGREES TO SELL INSURANCE MANAGEMENT BUSINESS TO KANE GROUP
Hamilton, Bermuda – 11 March, 2011 - HSBC Holdings Limited (the “Company”; Ticker: HSBC.BH) formally announced the sale of the Insurance Management business lines to the Kane Group.
HSBC Bank Bermuda Limited, HSBC Bank (Cayman) Limited, and HSBC Insurance Agency (USA) Inc. have signed agreements with Kane Group(‘Kane’) in relation to the sale and purchase of HSBC Insurance Holdings (Bermuda) Limited, HSBC Insurance SPC Limited and the insurance management business and assets of HSBC Bank (Cayman) Limited and HSBC Insurance Agency (USA) Inc. (together the ‘Business’). Under this agreement, Kane will acquire the Business for a total amount of US$27.5m payable in cash.
As part of the transaction, Kane will retain all HSBC staff employed by the Business. HSBC and Kane will work together to ensure a smooth transition and have entered into a transitional services agreement under which services will be provided by HSBC to Kane to allow uninterrupted client service. HSBC and Kane are also co-operating on the transfer of certain client agreements to Kane.
Completion of the purchase, which is subject to regulatory and other approvals, is expected in the second quarter of 2011.
Phil Butterfield, CEO of HSBC in Bermuda said “We are delighted with the new arrangements for our insurance management business. We look forward to hearing about its continued success under its new ownership.”
Media enquiries to:
HSBC Bank Bermuda:
Susan Jackson + 144299-6339 or at susan.e.jackson@hsbc.bm
HSBC Group:
Brendan McNamara +44 (0) 20 7991 0655 or brendan.mcnamara@hsbc.com