Bank of East Asia to sell non-life insurance businesses to AIA for HK$2.17b

[HONG KONG] Bank of East Asia (BEA) said late on Friday (Mar 4) it has agreed to sell its non-life insurance and healthcare services businesses to a unit of AIA Group Ltd for an aggregate HK$2.17 billion (S$377.4 million).

BEA agreed to sell its medical, travel and general insurance services unit Blue Cross (Asia-Pacific) Insurance and all of its 80 per cent interest in healthcare services unit Blue Care JV (BVI) Holdings to AIA to generate value for shareholders.

The Hong Kong-based bank expected to book an aggregate profit of HK$1.53 billion upon completion of the deals, it said in a filing to the Hong Kong bourse.

Asia-focused AIA's largest market is mainland China, which along with Hong Kong accounts for about half of its business.

BEA shares have risen 11.8 per cent so far this year as of last close, while AIA shares have gained 1 per cent. REUTERS