HSBC Holdings Plc (HSBA), Europe’s largest bank by market value, agreed to sell products from insurers American International Group Inc. (AIG:US) and Allianz SE (ALV) in countries on the continent.
AIG will pay $55 million in cash for a 10-year agreement covering non-life-insurance products to be sold in Turkey, France and other nations, London-based HSBC said yesterday in a statement. Allianz agreed to pay 23 million euros ($30 million) in a decade-long agreement for sales of life-insurance and pension products in Turkey and elsewhere, the Munich-based firm said in a statement.
Peter Hancock, chief of AIG’s property-casualty unit, said in May that he has been focusing more on writing profitable business than on building premium revenue. He boosted the New York-based insurer’s focus on emerging markets and reduced business in segments that require more capital.
“We are pleased that this long-term collaboration will allow us to expand our existing distribution arrangement and operations platforms,” Dan Doherty, president of consumer insurance for AIG’s Europe, Middle East and Africa regions, said in a statement.
AIG said it agreed to acquire HSBC Assurances IARD, a French subsidiary, for as much as $14.5 million.
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