HSBC Life Assurance (Malta) Limited has agreed to enter into a portfolio transfer agreement with HSBC Life (Europe) Limited for the acquisition of the latter’s insurance policy book for nil consideration, HSBC Malta said this morning.

It said in a statement published by the Malta Stock Exchange that the transaction is expected to complete in the fourth quarter this year, subject to regulatory approvals.

HLE is an Irish domiciled limited company, incorporated in 1994. It commenced business in 1996. It is regulated by the Central Bank of Ireland as a life insurance company authorised to write unit linked and protection business and is a wholly owned subsidiary of HSBC Holdings plc.

The portfolio consists mainly of unit linked investment policies sold across the EU under the Freedom of Services provisions.

These policies have around €1.1 billion funds under management. The portfolio also includes a closed book of life protection business. The insurance portfolio being transferred produced gross annual management charges of around €2.75 million in 2012.

This transaction provides HLA with additional benefits of scale while ensuring that existing HLE clients continue receiving the highest levels of service from another HSBC entity.

The transfer project will be managed by senior management on each side to ensure an orderly handover with minimal impact on the affected clients.

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