Regulated information - Ageas agrees to sell its Life insurance business in Hong Kong to JD Capital

Ageas has agreed to sell its Life insurance business in Hong Kong⁽¹⁾ to JD Capital (Beijing Tongchuangjiuding Investment Management Co.) for a cash consideration of HKD 10,688 million (EUR 1,230 million⁽²⁾). The transaction is expected to be completed within the first half of 2016 and is subject to regulatory approvals, customary closing conditions and JD Capital's shareholder approval⁽³⁾.

In 2007, Ageas acquired Pacific Century Insurance and rebranded the company to Ageas. The company has since then developed into a strong agency business with more than 2,500 professional financial advisors as well as key strategic partnerships. It has maintained a solid market position with gross inflows of EUR 481 million in 2014, and EUR 269 million in the first half of 2015. The book value of the Hong Kong operations amounted to EUR 967 million as per the end of June 2015. Based on these first half-year 2015 figures and still subject to closing adjustments, the transaction is expected to have an impact on the net result of around EUR 0.45 billion⁽⁴⁾ at the time of closing.

Ageas remains firmly committed to Asia and will further strengthen its business in the region by focusing on the 6 growth markets it is now present in through its successful joint ventures in Malaysia, China, Thailand and India, as well as the partnerships recently established in the Philippines and Vietnam. Furthermore, Ageas continues to explore opportunities in high growth markets in the region. Ageas's Regional office for Asia will continue to be based in HK.

Bart De Smet, CEO of Ageas commented: "The decision to sell our business in Hong Kong follows a strategic review of our Asian activities in which we concluded that it is in the group's best interest to realign our strategy towards the fast growing emerging markets of Asia. Over the past 8 years the business has created substantial value for our shareholders in a dynamic market. As part of JD Capital we believe the company will be in good hands to further develop on the Hong Kong market. I would like to take this opportunity to thank the management team, its staff, the agency force and our partnerships in Hong Kong for their hard work and valuable contribution to Ageas over the past 8 years. We are extremely proud of our accomplishments in Hong Kong and we wish everyone great success in taking the company's journey forward."