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OCBC could stand to gain in contest for Hong Kong Life Insurance

Jude Chan Published on Mon, Mar 06, 2017 / 4:42 PM GMT+8

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SINGAPORE (March 6): A battle is brewing between Yue Xiu Group and a consortium including China UCF Group to acquire Hong Kong Life Insurance, one of the last remaining independent insurance companies left in the former British colony.

And Oversea-Chinese Banking Corporation (OCBC), which owns a 33% stake in Hong Kong Life Insurance through its wholly-owned subsidiary, OCBC Wing Hang, could reap the spoils.

“Hong Kong Life Insurance is valued at US$700 million ($986 million),” says UOB KayHian analyst Jonathan Koh in a note on Monday. “OCBC could utilise proceeds of $326 million from the divestment of 33% stake in Hong Kong Life Insurance to reinvest in its core commercial banking business.”