As M&A deals for Hong Kong insurers triples in 2017, all eyes are now on MetLife
Deals involving Hong Kong insurers topped US$2.84 billion in 2017, up from US$1 billion in the previous year
MetLife is rumoured to be selling its Hong Kong arm, the latest in a spate of mergers and acquisitions among the city’s insurance companies that led to a near tripling in deal value last year.
M&A involving Hong Kong insurers reached US$2.84 billion in 2017, up from US$1 billion recorded in 2016, according to data from Thomson Reuters.
“The insurance products that are available in the mainland and those in Hong Kong are different,” said Keith Pogson, a senior partner at accounting firm EY. “This makes the ability to own a Hong Kong operation very appealing to mainland investors.”
He said the mainland companies who own a Hong Kong insurer could sell products to mainland Chinese individuals in the city while at the same time learning more about their products and technology, as these companies are usually owned by international players with a strong history and knowledge of the sector.
“The insurance market continues to be both appealing and a growth sector especially with regards to mainland related business. The trend for Hong Kong insurers to be takeover targets will continue,” Pogson said.