AIA acquires Blue Cross for $1.53b

This is set to expand the scope of the Bank of East Asia’s existing partnership with AIA. 

Blue Cross (Asia-Pacific) Insurance Limited, a wholly-owned subsidiary of the Bank of East Asia, will enter into a disposal transaction with AIA Group Limited worth $1.35b.

Under the transaction, Blue Cross will serve as the exclusive provider of non-life insurance products for BEA’s customers in Hong Kong for 15 years. Also purchased in the transaction was BEA’s 80% stake in healthcare service provider Blue Care JV Holdings Limited. 

“With our shared vision and excellent working relationship, the bancassurance partnership between BEA and AIA, which officially commenced in July last year, has enjoyed a promising start. We are delighted to announce yet another milestone in this partnership by extending our cooperation into the general insurance arena. The Transactions once again demonstrate our continued commitment to enhancing the value of our business and positioning the Bank for growth and success over the long term,” commented Adrian Li and Brain Li, Co-Chief Executives, BEA. 

An overall consideration of $2.17b was reached, with BEA expected to record a disposal gain of around $1.53b in the current financial year. The Board of Directors has yet to decide on the use of the proceeds, which may include a return to shareholders.