AIA Group has acquired Hong Kong insurer Blue Cross from Bank of East Asia (BEA) and has expanded the existing exclusive bancassurance partnership with the bank.
The US$278 million deal includes 100% of shares in Blue Cross (Asia-Pacific) Insurance and 80% of Blue Care JV (BVI) Holdings. The Blue Cross brand provides medical, travel and other general insurance products, while Blue Care operates two medical centres and a Hong Kong-wide medical network with over 300 affiliated service providers.
Through the acquisition of Blue Cross, AIA and BEA partnership will include a 15-year agreement to distribute personal lines general insurance products. This will deliver AIA’s various insurance products to BEA’s personal banking customers in Hong Kong.
According to AIA, the transaction significantly accelerates its health and wellness strategy in Hong Kong, deepens the distribution partnership with BEA and brings new product expertise to support the insurer’s distribution channels.
“I am delighted to expand our successful partnership with BEA and welcome Blue Cross to AIA,” said Jacky Chan, AIA regional chief executive. “This investment builds on our long history in Hong Kong and underscores our confidence in its future. Our unrivalled multi-channel distribution platform is at the heart of our strategy, and this new agreement deepens our exclusive relationship with one of the leading domestic banks in Hong Kong. This transaction also strengthens our position as a leading health insurer. Powered by AIA’s digital transformation and a full suite of health insurance propositions, we will unlock further growth potential and help many more people live healthier, longer, better lives.”
“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,” said Adrian Li and Brian Li, co-chief executives of BEA. “We are delighted to announce yet another milestone in this partnership by extending our cooperation into the general insurance arena.”
