HSBC sells its insurance business here to firm based in Bermuda
HSBC is to sell its Irish insurance business to a Bermuda-based firm.
In an announcement to the London Stock Exchange, the bank said it was selling HSBC Insurance (Ireland) and another business, HSBC Reinsurance, to Catalina Holdings, a company domiciled on the island.
HSBC Insurance (Ireland) employs some 13 people in Dublin, the majority of whom will move to Catalina with the sale. Terms of the sale were not revealed, but the combined business had gross assets of $273m (€221m) at the end of March.
A deal of this nature had been expected. HSBC closed the Irish business to new customers in June 2009, and has been running a small business, mostly in creditor, property, travel and motor insurance since then.
It has a much bigger business here in security services and corporate banking. Yesterday's deal does not effect the Irish business overall.
HSBC has been shrinking its balance sheet for some time, and reducing its exposure to the insurance sector. In March it sold its general insurance businesses to French insurance company Axa and the Australian firm QBE Insurance Group for $914m.
The transaction, which is subject to regulatory approval from the Central Bank, is expected to go through before the end of September.