BEA Selling Life Insurance Arm in $653 Million Deal With AIA
- AIA, Bank of East Asia also ink bancassurance partnership
- The sale is part of lender’s efforts to boost profitability
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AIA Group Ltd. has agreed to buy the life insurance unit of Bank of East Asia Ltd. and ink a distribution partnership with the Hong Kong-based lender in a HK$5.07 billion ($653 million) deal.
As part of the agreement, Bank of East Asia will distribute AIA’s life and long-term savings products exclusively to its retail banking customers in Hong Kong and mainland China for 15 years, according to an exchange filing on Wednesday. The announcement confirmed an earlier Bloomberg News report. AIA will also acquire a closed portfolio of life insurance policies underwritten by Blue Cross (Asia-Pacific) Insurance Ltd.