HSBC Insurance News Release 27 August 2009 HSBC LIFE INSURANCE COMPANY LIMITED COMMENCES OPERATIONS IN SHANGHAI HSBC Life Insurance Company Limited (HSBC Life), a 50:50 joint venture between HSBC Insurance (Asia) Limited (HSBC Insurance) and Beijing-based The National Trust Ltd. (National Trust), commenced operations today. The new company provides a platform to distribute insurance products under the HSBC brand in one of world’s fastest growing life insurance markets and supports the HSBC Group’s wealth management strategies in mainland China. Headquartered in Shanghai, HSBC Life will principally act as a bancassurer operating through bancassurance partnerships as channels for distribution. However, the company will also employ an agency force. While the new company has a national operating remit, it will seek operating licences for other Mainland cities in phases. HSBC Life has a registered capital of RMB500 million. Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation Limited, remarked at the press conference: “Today marks another milestone in our long-term commitment to mainland China, a market of enormous growth potential and at the centre of HSBC’s emerging markets strategy. It would be very difficult for us to continue to claim to be one of the world’s top insurers and China’s largest foreign bank if we did not have an insurance business on the Mainland. This market is simply too big and too important to the global economy.” Dennis Chan, Chairman of National Trust, added: “We share the same business vision, management philosophy and corporate governance standards as HSBC. The establishment of this joint venture will create a great opportunity for us to capitalise on the considerable growth potential of the insurance market in China. We are delighted to bring our understanding of the local market to the new company.” David Fried, Chairman of HSBC Life, and also Chairman and Chief Executive Officer of HSBC Insurance for Asia-Pacific, said: “Life insurance premiums in China rose by 48.3 per cent to RMB733.8 billion1 in 2008, making the Mainland one of the world’s fastest growing insurance markets and the second largest in Asia after Japan. However, insurance purchases are concentrated in the urban coastal regions and more HSBC Life Insurance Company Limited commences operations in Shanghai /2 insurance penetration is still at a low of 3.3 per cent. With China’s demographics, large population and under-penetrated insurance market, it is without a doubt that the Mainland will play a significant role – not only for our Asian insurance platform but for the Group’s global insurance ambitions.” HSBC Life will offer products on retirement, educational, medical, protection and wealth accumulation insurance services. It will target the burgeoning affluent and high-net worth segments. To mark the launch of the new life insurance company, HSBC Life, together with Fudan University, will launch a 5-year education-to-the poor programme in Guizhou Province. HSBC Life will donate RMB1 million between 2009 and 2014 to fund the programme. ends/more Media enquiries: Gareth Hewett +852 2822 4929 email@example.com Vinh Tran +852 2822 4924 firstname.lastname@example.org Notes to editors: Footnote: 1. Figures from China Insurance Regulatory Commission statistics for 2008. The Hongkong and Shanghai Banking Corporation Limited The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which, with around 8,500 offices in 86 countries and territories and assets of US$2,422 billion at 30 June 2009, is one of the world’s largest banking and financial services organisations. HSBC Insurance (Asia-Pacific) Holdings Limited HSBC Insurance (Asia-Pacific) Holdings Limited is the parent company of four underwriting companies: HSBC Insurance (Asia), HSBC Life (International), HSBC Insurance (Singapore) and HSBC Amanah Takaful (Malaysia) (49 per cent held). Its shareholdings also include 50 per cent less one share of Hana HSBC Life Insurance in Korea, 26 per cent of Canara HSBC Oriental Bank of Commerce Life Insurance in India, 10 per cent of Bao Viet Holdings in Vietnam and 50 per cent of HSBC Life Insurance Company Limited, a jointly-held insurance company in mainland China with The National Trust Ltd. In Asia, the HSBC Group also holds a 16.78 per cent stake in Ping An Insurance of mainland China and has representative offices in Beijing, Shanghai and Guangzhou. HSBC Life Insurance Company Limited Headquartered in Shanghai, HSBC Life Insurance Company Limited is a 50-50 joint venture between HSBC Insurance (Asia) Limited and The National Trust Ltd. With a registered capital of RMB500 million, the company offers comprehensive insurance and retirement services to both individual and corporate customers. HSBC Life employs both bancassurance partnerships and an agency sales force as channels for distribution. ends/all
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