On 9 November 2017, HSBC Bank Malta plc announced that its wholly-owned life assurance subsidiary – HSBC Life Assurance (Malta) Limited (“HLA”) – entered into a Portfolio Transfer Agreement with Lombard International Assurance S.A. (“LIA”) for the sale of HLA’s policies of insurance governed by the Wealth Insurance Italy portfolio. This insurance portfolio forms part of a larger portfolio which was acquired in 2014 for nil consideration and is now being sold for a nominal consideration of €1. The transaction is expected to be completed in the last quarter of 2018, subject to regulatory approvals and any other approvals which are necessary in terms of local insurance rules/legislation.
HSBC explained that the insurance portfolio that will be transferred to LIA does not form part of HLA’s core business. As such, the transfer of the insurance portfolio will enable increased focus on the domestic insurance market which is HLA’s strategic priority. As at 30 September 2017, the insurance portfolio being transferred had total funds under management of circa €500 million and produced gross annual management charges of approximately €780,000 in 2016.