HSBC enters bancassurance agreements

These are with AIG Europe and Allianz SE.

HSBC Bank plc, a wholly-owned subsidiary of HSBC Holdings plc, has entered into a 10-year bancassurance agreement with AIG Europe Limited.

Under the deal, HSBC Group companies will distribute AIG non-life insurance products to customers in Turkey, France, and other countries in Continental Europe as may be agreed. HSBC said the arrangements for distribution of products in Turkey and France will be on an exclusive basis.

Total consideration of approximately US$55m in cash will be paid under the AIG Agreement by AIG Group companies to HSBC Group companies for the opportunity to be the exclusive providers of non-life insurance products distributed by HSBC Group companies to customers in Turkey and France.

HSBC Bank has also entered into a 10-year bancassurance agreement with Allianz SE through which HSBC Group companies will distribute Allianz life insurance and pension products to customers in Turkey and other countries in Continental Europe as may be agreed.

HSBC Bank A.Ş. Turkey will enter into a country-specific agreement in Turkey under which consideration of US$30m in cash will be paid by Allianz Group companies to HSBC Bank A.Ş. Turkey for the opportunity to be the exclusive providers of life insurance and pensions products distributed by HSBC Group companies to customers in Turkey.

Under the bancassurance arrangements, AIG Group companies and Allianz Group companies will pay commissions on product sales and make other payments to HSBC Group companies.