Hiscox to sell Hong Kong division of DirectAsia
Hiscox Group agrees to sell Hong Kong division of DirectAsia to Well Link
Hiscox Group to focus future growth strategy of DirectAsia on Singapore and Thailand
Hamilton, Bermuda (Thursday 10th March 2016) - Hiscox, the global specialist insurance group, has today announced that it has reached an agreement to sell the Hong Kong division of its DirectAsia business to Well Link Group Holdings Limited, a member of a Hong Kong based financial conglomerate. The transaction, which allows Hiscox to focus the future growth of DirectAsia on its operations in Singapore and Thailand, is subject to regulatory approval from the Office of the Commissioner of Insurance (OCI) in Hong Kong.
The Hong Kong division of DirectAsia was established in 2012. It generated US$8 million of GWP in 2015, serves 29,000 customers and employs 40 people. Its primary business is motor, with ancillary lines in travel. As a direct-to-consumer insurance provider supported by call centres, it is a differentiated model in a market where agent-based channels predominate.
Its new owner, Well Link Group Holdings Limited, is backed by an investor group with interests in insurance broking, corporate and customer finance, securities and futures brokerage, and asset management. Its acquisition of the Hong Kong division of DirectAsia will complement its existing businesses and provide it with broader product opportunities.
Bob Thaker, Managing Director, DirectAsia Group, commented: "The Hong Kong division of DirectAsia is a business with a great team and a distinctive business model, which has grown its premium income strongly since launch. However the focus for DirectAsia is on our core Singapore and Thailand markets where we see significant growth opportunities, and this transaction allows us to focus our energy and investment on those markets. Well Link is a great fit in terms of values and culture for the people and customers of the Hong Kong business unit, and this transaction gives them an attractive platform for growth in the region."
A representative from Well Link, added: "We welcomed the opportunity working with the current DirectAsia team to make it another successful business of our group. It is an important step towards our group's long-term ambition to build a successful finance business in this region."
Customers in Hong Kong will continue to be served as normal by the business, and need take no action as a result of this announcement. Following completion of the transaction, Well Link will have the right to use the DirectAsia brand in Hong Kong for a maximum period of 12 months.
Ends
For further information please contact:
Lucy Hensher +44 (0) 20 7448 6619 Lucy.hensher@HISCOX.com
Notes to editors
About Hiscox
Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting divisions in the Group - Hiscox Retail (which includes Hiscox UK and Europe, Hiscox Guernsey, Hiscox USA and subsidiary brand, DirectAsia), Hiscox London Market and Hiscox Re. Through its retail businesses in the UK, Europe and the US Hiscox offers a range of specialist insurance for professionals and business customers, as well as homeowners. Hiscox underwrites internationally traded, bigger ticket business and reinsurance through Hiscox London Market and Hiscox Re.
For further information, visit www.hiscoxgroup.com.
About DirectAsia
DirectAsia is a direct to consumer insurance company with a presence in Singapore and Thailand. It was established in 2010 in Singapore before expanding into Hong Kong in 2012 (exiting in 2016 with news of this disposal to Well Link) and Thailand in 2013. Its primary business is motor insurance, one of the few non-discretionary insurance purchases in Asia, with ancillary lines in travel and healthcare. Including Hong Kong pre-disposal, it has over 75,000 customers and employs around 200 people across its three operations.
For further information, visit www.directasia.com.
About Well Link Group Holdings Limited
Well Link Group Holdings Limited is a member of a Hong Kong based financial conglomerate with interests in securities and futures brokerage, asset management, corporate and customer finance and insurance broking.
This information is provided by RNS
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