HSBC Insurance Services Holdings Limited has signed an agreement for the sale and purchase of HSBC Insurance (UK) Limited (“HIUK”) with Syndicate Holding Corp. Under this agreement, Syndicate Holding Corp will acquire HIUK for a total amount of GBP68.5 million payable in cash.
HIUK is a UK based motor insurance company which was put into run-off in 2009. This sale is in line with the five filters strategic criteria for capital deployment set out at HSBC’s Investor Day on 11 May 2011 and it completes HSBC’s exit from underwriting motor insurance in the UK.
Completion of the purchase is expected to take place in the third quarter of 2011, subject to regulatory approvals.
Nigel Rogers, CEO of Syndicate Holding Corp, said “RITC Syndicate Management Limited, our Lloyd’s run-off subsidiary has been very successful since its formation in 2007 in becoming the leading provider of RITC contracts, writing in excess of $800 million of run-off business at Lloyd’s.” He explained that it was always his group’s intention to provide run-off solutions to the wider company market and is delighted that the acquisition of HIUK will provide the platform for the group’s future growth in the UK and international companies run-off and legacy markets.
Bruce Howe, CEO of HSBC Insurance in Europe and the Middle East said “HIUK has been in run-off for over a year and we are very grateful for the dedication of our staff which has enabled a successful exit from this business. Although this move completes our exit from underwriting motor insurance in the UK, we continue to offer motor insurance through the HSBC, first direct and M&S Money brands using chosen third party insurers.”