HSBC share price: Lender sells UK pensions business to Swiss Re Group
iNVEZZ.com, Wednesday, June 11: HSBC Holdings Plc (LON:HSBA) has agreed to sell its UK pensions business to a unit of Swiss Re Group for an undisclosed sum.
In a statement to the London Stock Exchange, Europe’s largest bank said that its indirect wholly-owned subsidiary HSBC Life (UK) Limited had agreed to sell the business to ReAssure Ltd, which is part of the Swiss group.
In today’s trading HSBC shares fell 0.6 percent to 621.00p as of 14:59 BST. The company’s stock has fallen 6.2 percent since the start of the year.
Under the terms of the agreement, HSBC will sell its corporate and individual pensions policies, and an associated annuities book. At the end of last year, the value of the underlying assets under management forming part of the deal was roughly £4.2 billion, HSBC said, adding that approximately £4 billion were managed by HSBC Global Asset Management. HSBC Global Asset Management will remain the investment manager of the underlying assets.
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The transaction, which is subject to regulatory approvals, is expected to complete in the second half of 2015, HSBC said.
The deal follows a change announced by Chancellor George Osborne, according to which retirees are no longer required to buy an annuity with their pension savings.
Since chief executive officer Stuart Gulliver took over the running of the bank in 2011, HSBC has embarked on an effort to streamline it business and cut costs. As part of this drive, the company has sold or closed more than 60 businesses and axed more than 40,000 jobs.
**Analysts on HSBC**
As of Jun 06, 2014, the consensus forecast amongst 51 polled investment analysts covering HSBC for The Financial Times advises that the company will outperform the market. The same sentiment has been maintained since the sentiment of investment analysts improved on May 12, 2014, the FT notes.
**As of 15:31 BST buy HSBC shares at 619.70 pence**
**As of 15:31 BST sell HSBC shares at 619.50 pence**