HSBC Continental Europe has signed a memorandum of understanding for the potential sale of its French life insurance business, HSBC Assurances Vie (France), to Matmut Société d’Assurance Mutuelle (“Matmut”).
HSBC Assurances Vie (France) manages over €20 billion in assets and posted a net profit of €77 million in 2023, with a Solvency II ratio of 287%. If the transaction proceeds, HSBC and Matmut would enter into a long-term agreement for HSBC Global Asset Management (France) to continue its partnership with HSBC Assurances Vie (France), which would also maintain its existing distribution agreements.
The deal presents an opportunity for HSBC Assurances Vie (France) clients and employees to join Matmut, one of France’s leading mutual insurance groups, and aligns with HSBC’s strategy to simplify its operations and focus on areas with the greatest growth potential.
Financially, Matmut would acquire HSBC Assurances Vie (France) for €925 million, with the transaction expected to result in a pre-tax loss of approximately €0.1 billion for HSBC Continental Europe.
The MoU outlines the information and consultation processes with the relevant social and economic committees, which will begin soon. If both parties proceed after these consultations, they will enter into a binding share sale agreement. Completion of the sale is subject to regulatory and competition approvals and is expected in the second half of 2025.
About HSBC Continental Europe
HSBC Continental Europe, headquartered in Paris, is a subsidiary of HSBC Holdings plc. It includes banking, insurance, and asset management activities in France, as well as commercial operations in 10 European countries, and banking subsidiaries in Luxembourg and Malta.
About HSBC Assurances Vie (France)
HSBC Assurances Vie (France), wholly owned by HSBC Continental Europe, offers a range of life insurance, retirement, borrower insurance, and pension planning solutions for individuals, professionals, and companies.
About HSBC Holdings plc
HSBC Holdings plc, headquartered in London, is one of the world’s largest banking and financial services groups, serving customers in 60 countries and territories, with assets of US$3.099 trillion as of 30 September 2024.
