Singapore – OCBC Bank, a major lender listed in Singapore, has announced the sale of its entire 33.3% stake in the loss-making insurer Hong Kong Life for HK$589.3 million (approximately S$103 million).
In a regulatory filing dated December 27, OCBC confirmed that the sale of its stake would be to Yue Xiu Enterprises (Holdings), a company based in Guangzhou. The deal, however, remains subject to regulatory approvals.
Hong Kong Life was established in 2001 by five key financial institutions, including OCBC Bank’s Hong Kong subsidiary. The other founding members—Asia Insurance Company, Chong Hing Bank, CMB Wing Lung Bank, and Shanghai Commercial Bank—each hold a 16.67% stake in the insurer. All of these parties are also selling their respective stakes to Yue Xiu.
In 2023, Hong Kong Life reported a pre-tax loss of HK$484.1 million, a slight improvement over the HK$504.9 million loss recorded in 2022. Despite the ongoing financial struggles, OCBC indicated that the transaction would have no material impact on the bank’s net tangible assets or earnings per share for the fiscal year ending December 31, 2024.
Following the announcement, OCBC’s shares closed 1.1% higher on December 30, at S$16.70.
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