Best Commentary: HSBC Acquisition of AXA Singapore Highlights Growth Prospects for Singapore Life Insurance

SINGAPORE–(COMMERCIAL THREAD)–The The recent agreement to acquire AXA Insurance Pte Ltd (AXA Singapore) by HSBC Insurance (Asia-Pacific) Holdings Ltd (HSBC Insurance) demonstrates the potential for continued growth in the life insurance segment in Singapore, according to a new AM Best remark.

In his new Best commentary, “HSBC Acquisition of AXA Singapore Highlights Growth Prospects for Life Insurance in Singapore,” AM Best Says Demand for Long-Term Financial Planning and Health Protection Continue to Support Outlook Singapore’s life insurance market. The HSBC Insurance-AXA Singapore transaction comes at a time when the Singaporean life market experienced a strong rebound in weighted new business premiums recorded in the first half of 2021. In addition, recent and future growth in life insurance is expected to be sustained by the attractiveness of the city-state as a home for wealthy and wealthy people.

Overall, AM Best believes that life insurance companies with international investment and wealth management expertise have notable advantages in designing sophisticated products with conditions and characteristics. more attractive investment. a significant value proposition in today’s low interest rate environment. Nonetheless, life insurers whose product offerings include significant investment risks / guarantees must strike a balance between the attractiveness of these products and the capital requirements that arise for the insurer.

The Healthcare and Employee Benefits business lines also remain important growth drivers for life insurers in Singapore. Nonetheless, AM Best notes that companies engaged in these lines of business continue to face underwriting performance challenges, particularly for individual medical products and critical illnesses. In Singapore, apart from the group health activity which generated adequate profitability in 2020, health insurance is considered a difficult business due to the poor results of long-term individual contracts.

To access a copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=312005.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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