Bank of East Asia reportedly planning to sell insurance arm Blue Cross

The Bank of East Asia (BEA) is reportedly planning to sell its general insurance arm Blue Cross (Asia Pacific) Insurance, according to a report from Bloomberg.  The report said BEA seeks to continue raising cash through selling non-core assets. The bank is also working with Goldman Sachs Group for the potential transaction which could be worth up to US$400 million. It is expected that the plan will kick off early next year. 

However, according to a report from Hong Kong Economic Times, BEA does not have the final decision over the transaction and keeping Blue Cross (Asia Pacific) Insurance in its portfolio for the long-term development of the company, could be an option as well. The bank also said it has been assessing its portfolio, including the aspects that match its strategy. 

In March, BEA Life, formerly a wholly owned subsidiary of BEA providing a comprehensive range of life insurance products to both individual and corporate customers in Hong Kong, and Blue Cross entered into an agreement under which the portfolio will be transferred from Blue Cross to BEA Life. Moreover, in July, BEA commenced the bancassurance partnership, allowing the insurance company to sell its products to the bank's client base, granting AIA exclusive rights to provide life and long-term savings insurance solutions to the bank’s retail customer base in Hong Kong and Mainland China. 

The transaction saw BEA leverage AIA’s product expertise and resources to build out its regional omni-channel insurance distribution platform, generating sustainable fee income growth.

However, BEA also collaborated with Blue Cross (Asia Pacific) Insurance to appoint fencers Edgar Cheung Ka-long and Cheung Siu-lun as brand ambassadors. The group said it has been investing resources into cultivating local athletes and supporting sports development. Since 2015, the company has supported the development of fencing in Hong Kong through Blue Cross, including title sponsorship of the Hong Kong Open Fencing Championships organised by the Hong Kong Fencing Association for six consecutive years, as well as the Asian Fencing Championships in 2017. The BEA Group also supports various youth fencing training programmes that nurture potential fencing talent.

Looking ahead, BEA and Blue Cross said they will continue promoting fencing, with an aim to bring a positive vibe to the community through continuous collaborations with the two athletes and a series of brand endorsement activities, adding that they also recognise the importance of youth development, and provide support in many aspects for all-round development of younger members of society, which will improve their personal resilience, build self-confidence and allow them to discover their potential.

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