HSBC Continental Europe Enters Into a Memorandum of Understanding Regarding Potential Sale of HSBC Assurances Vie (France) to Matmut Société d’Assurance Mutuelle

Regulatory News:

HSBC Continental Europe has signed a Memorandum of Understanding (‘MOU‘) regarding the potential sale of its French life insurance business, HSBC Assurances Vie (France), to Matmut Société d’Assurance Mutuelle (‘Matmut’) (the “Potential Transaction”).

HSBC Assurances Vie (France) provides a wide range of life insurance solutions and services, with over 20 billion euros of outstanding assets, net income¹ of 77 million euros and a Solvency II ratio of 287% in 2023. As part of the Potential Transaction, HSBC Continental Europe and Matmut would enter into a long-term arrangement for HSBC Global Asset Management (France) to continue to partner with HSBC Assurances Vie (France). HSBC Assurances Vie (France) will continue its existing distribution arrangements.

The Potential Transaction would provide customers and employees of HSBC Insurance Life (France) with the opportunity to join one of the leading French mutual insurance groups, which is in full development, and forms part of the simplification of the Group announced by Group Chief Executive, Georges Elhedery, on 22 October 2024. HSBC is focusing on developing its position in areas where it has the best growth opportunities.

Under the financial terms of the Potential Transaction, Matmut would acquire HSBC Assurances Vie (France) for cash consideration of 925 million euros. This is estimated to generate a pre-tax loss of approximately 0.1 billion euros for HSBC Continental Europe.

The MOU includes details of the parties’ information and consultation processes with their respective employees’ works councils, which will commence shortly. If, following the finalisation of these processes, the parties decide to proceed with the sale, they would enter into a binding sale and purchase agreement. Completion of the Potential Transaction would be subject to relevant regulatory and competition approvals and is expected to occur in the second half of 2025.

About HSBC Continental Europe

Headquartered in Paris, HSBC Continental Europe is an indirect subsidiary of HSBC Holdings plc. HSBC Continental Europe principally comprises, in addition to its banking, insurance and asset management activities based in France, the business activities of 10 European branches outside France (in Belgium, Czech Republic, Germany, Ireland, Italy, Luxembourg, Netherlands, Poland, Spain and Sweden) and the business activities of banking subsidiaries in Luxembourg and Malta. HSBC Continental Europe’s mission is to serve both customers based in Continental Europe for their needs worldwide and customers based in other locations for their needs in Continental Europe.