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AXA on the lookout for more targets

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Enoch Yiu

After a deal that made it the city's largest general insurer overnight, AXA says it will look for similar buying opportunities to maintain its edge.

AXA, Europe's largest insurer and one of the largest life insurers in Hong Kong, last week bought HSBC's general insurance business in Hong Kong, Singapore and Mexico for US$494 million, in the largest such deal in the city.

'We'll continue to eye buying opportunities if it fits our business strategy,' Stuart Harrison, the Hong Kong chief executive of the French insurer, said after announcing the deal.

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AXA is a big player in the life insurance and pension businesses. The acquisition gives it an opportunity to dominate in general insurance, too.

As HSBC was the largest player in the general insurance market last year, the deal gave that position to AXA, which also raised its market share to 12 per cent from 5.7 per cent.

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Harrison said the deal was part of AXA's target to become the largest general insurer in Asia and among the top three life insurers by 2015.

It has boosted the company's general insurance business capacity substantially as it has not only obtained HSBC's customers and policies but also its 240 staff.

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